The success story of

Starbucks
Made by:
Sharvari Gadkari (19010126120)
Rohan Panda (19010126140)
Aditi Saumya (19010126144)
Shania Das (19010126145)
Avantika Singh (19010126161)
Introduction
•Starbucks Corporation is an American global coffee company and coffeehouse chain based in
Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 8,400
coffee shops throughout 30 countries, including 13,279 in the United States, 1,324 in Canada
and 100 stores across 6 cities in India.
•Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant
coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and
cold sandwiches, and items such as mugs and tumblers.
•The president and CEO of Starbucks Howard Schultz.
Company History
•In 1997, the company was founded by Jerry Baldwin, Zev Siegal and Gordon Bowker as a
single store in Seattle’s Pike Place Market.
•The three Starbucks founders had two things in common; they were all coming
from academia, and they all loved coffee and tea. They invested and borrowed some money
to open the first store in Seattle and named it “Starbucks” after the first mate in Herman
Melville’s classic novel Moby Dick.
•Alfred Peet, a coffee-roasting enterpreneur, was a major inspiration to the founders of
Starbucks. Peet’s success encouraged the Starbucks founders to base their business model
on selling high-quality coffee beans and equipment, and Peet’s became the initial supplier of
green coffee beans to Starbucks. The partners then purchased a used roaster from Holland,
and Baldwin and Bowker experimented with Alfred Peet’s roasting techniques to create their
own blends and flavours.
Company History
•In 1981 Howard Schultz, a sales representative for Hammarplast, a Swedish company that
made kitchen equipment and housewares from which Starbucks bought drip-coffee makers,
noticed how large the company’s orders were, which prompted him to pay it a visit. Schultz
was so impressed that he decided to pursue a career at Starbucks, and he was hired as the
head of marketing in 1982.
•The company sent him to Milan to attend an international houseware’s show where he came
up with the idea for future of the Starbucks but the founders rejected his idea. Therefore, he
left Starbucks in 1985 and started his own coffee chain called II Giornale, which was an
immediate success.
•In March 1987, the founders of Starbucks decided to sell the company and Schultz bought it.
He combined all his operations under the Starbucks brand and committed to the café
concept of the business, with additional sales of beans, equipment and other items in the
Starbucks stores.
Company Profile
•Starbucks’ mission:
•To inspire and nurture the human spirit - one person, one cup and one neighborhood at a time.
•Starbucks’ values
•Creating a culture of warmth and belonging, where everyone is welcome.
•Delivering our very best in all we do, holding ourselves accountable for results.
•Acting with courage, challenging the status quo and finding new ways to grow our company and
each other.
•Being present, connecting with transparency, dignity and respect.
Company Profile
•Starbucks’ Products
o Coffee: More than 30 blends, and single origin premium Arabic coffees.
oHandcrafted beverages: Fresh-brewed coffee, hot and ice espresso beverages, coffee and non-
coffee blended beverages, Vivanno smoothies and Tazo teas.
oMerchandise: Coffee and tea brewing equipment, mugs and accessories, packaged goods,
music, books and gift items.
oFresh food: Baked pastries, sandwiches, salad, oatmeal and fruit cups.
Marketing
•Segmentation
oEvery age group
oTech savvy individuals
oMen and women
oHigh disposable income
oBrand focused
oSavvy and avid coffee lovers who enjoy the “Starbucks experience”
Marketing
•Targeting
Starbucks targets commuters and captive consumers. Commuters consists people heading to
or from work or people on their lunch break. Captive consumers consist those who are stuck
in campus environment. Eg: High school, college students, and corporate campuses.
Positioning
Starbucks has chosen to market itself by using an unconventional marketing strategy that is
unique and generally not tried by other companies in the industry.
They positioned themselves as a perfect and little expensive coffee shop that will offer
customers delicious and rich coffee.
Reasons behind success
Starbucks has grown to become one of the most talked about brands in recent times, from
inconspicuous beginnings as a one-store outfit in a marketplace 33 years ago. Under
Starbucks, what really lit a fire was not just its dedication to better beans but its push into
retail – selling coffee by the cup. The shops were lined with bins of coffee beans, pictures of
coffee trees and gleaming paraphernalia coffee shelves. Employees were educated to
educate clients on what they drank and why they tasted good. The experience was so
enjoyable for many that Starbucks became a normal place to gather, and that made the
brand recognizable.
 Reasons behind success
The Company’s formula for success is mainly based on the following:
i) Employee’s approach: The success of Starbucks is determined by people’s interaction
with company’s experience and cultures and values, which was established by investing
and creating unique relationship with the staff and getting them to understand that first
of all is the primary target to meet the expectation of the customers.
ii) Core competence and visions: Starbucks thrives to create a sense of belongingness and
build a sense of trust and confidence in what the company stands for with the
employees and customers.
 Reasons behind success
iii. Experimentation and innovation: Starbucks is a focused innovator and good
management of its innovation timeline is one of the main reasons behind the success of
the company in achieving consistently high rates of the same store sales.
iv. Promotional patience: Starbucks doesn’t believe in traditional marketing strategies. It
heavily relies on strong brand and word-of-mouth to spread a positive reputation.
v. Promoting ethics: The company is much concerned about ethicak business practices and
tries to get involved in charity events and corporate social responsibility.
 Reasons behind success
vi. Command of premium brand: Consumers are willing to pay higher prices for coffee from
Starbucks as they not only buy a drink but also make a social statement at the same time.
vii. Measured expansion: Starbucks has adopted a slightly cautious approach, particularly in
its foreign market. The company has entered into a new market due to emerging
opportunities and their global established name.
viii. Financial resources: Huge financial resources enable the company to take advantage of
market opportunities investments and expansion activities that are not available to
smaller companies with reduced capital.
 Challenges faced in India
i. Blending with the culture: Since Starbucks is an American company, most of its products
are majorly based on American consumers’ taste.
ii. Price sensitivity: Most of the Indian consumers by nature are very price sensitive.
Starbucks products are way more expensive compared to those of CCD and Barrista.
iii. Competitive rivalry: Companies like CCD and Barrista already have a strong footing in the
Indian market with comparatively inexpensive products.
THANK YOU!
PRESENTED BY:
Sharvari Gadkari (19010126120)
Rohan Panda (19010126140)
Aditi Saumya (19010126144)
Shania Das (19010126145)
Avantika Singh (19010126161)