Starbucks is the largest coffeehouse company in the world with over 17,000 stores globally. It began in 1971 in Seattle as a coffee bean roaster and has since expanded internationally. Starbucks focuses on high quality coffee beverages and a customer experience emphasizing friendly service in a comfortable atmosphere. While it faces competition from other coffee chains and retailers, Starbucks has maintained its leadership position through continuous product innovation and a commitment to customer satisfaction.

1. ST ARBUC
KS

2. CONT E NT
• Company Background
• Evolution And Growth
• Product Line
• Customer Satisfaction
• Marketing Strategies
• Competition
• SWOT Analysis
• Product Supply
• Starbucks Revenue
• Conclusion

3. • We ’r e n o t i n t he c of f e e
bu s i ne s s s e r v i ng pe opl e …
• We ’r e i n t h e pe opl e
bu s i ne s s s e r v i ng c of f e e .
• -H o w a r d B e h a r ,
• Di r e c t o r of Re t a i l Op e r a t i o n s

4. C O MP A N Y
B A CK GROUND
• Is the largest coffee house company in the world.
• Opened in Seattle, Washington, in1971.
• Founders Jerry Baldwin, Zev Siegl, Gordon Bowker.
• Started as a coffee bean roaster and retailer.
• Entrepreneur Howard Schultz joined in 1982.
• Left Starbucks in 1985.
• Started ilGiornale(ill jor-nahl-ee) coffee bar chain in April 1986.
• Three store by April 1987 and sales equaled $1.5 million annually.
• Il Giornale acquired Starbucks on august 1987.

5. E V OL UT I ON &
G R O WT H
• Over 17000 store in over 55 countries including 11000 in the US.
• Opened a new store every workday between the 1990s till 2000s(on an
average).
• Entered international market in 1996 from Tokyo. 1971-87
• Expansion strategy
• Improvised store ambience and decorum.
• Expanded in supermarkets and building lobbies also. 1987-2010
• Customer satisfaction and customer tastes.
• Anonymous surveys.
• Customized product Line.
2011

6. P RODUCT L I NE
• Wide range of product choices
• Introduces new beverage ideas every year
• Notable Additions for 2011
– Cocoa Cappuccino, Starbucks Tribute Blend coffee
– Cake Pops, Red Velvet Whoopie Pies and Mini Cupcakes
• The company's retail sales mix is
– 61 % coffee beverages
– 15% whole-bean coffees
– 16% food items
– 8% coffee-related products and equipment.
• Drink sizes: Tall, Grandee, Venti

7. C U S T O ME R
S A T I S F A CT I ON
• Starbucks experience is about the 3 P’s
– People and Product
• Customer connection and a fresh, hand-made beverage
• Serves with a personalized touch
– Place
• The aroma
• Store design
• Employee Satisfaction

9. C O MP E T I T I O N
• In 1997, 8000 different coffee outlets in US
• Second Cup was closest competitor in US
• Competition from nationwide coffee manufacturers such as Kraft General
Foods, Proctor and Gamble and Nestle
• It also faced competition from numerous restaurants

10. S WO T A N A L Y S I S
Strengths
• Starbucks is the market leader in the coffee Market.
• Well-known brand identity and image.
• Majority market share.
• Recognized for Quality and Service.
• Employee Satisfaction due to competitive compensation and benefit
packages.
• Top 50 of Fortune’s ‘World’s Most Admired Companies List’.
• Strong financial foundation

11. S WO T A N A L Y S I S
(C o n t .)
Weaknesses
• Pricing are higher as compared to the competitors.
• High operating cost.
• The business profits are highly dependent on coffee product.
• It has closed down many of its outlets due to numb sales in many regions
during year 2008-2009.

12. S WO T A N A L Y S I S
(C o n t .)
Opportunities :
• New Market Opportunities Internationally.
• More bottled drinks such as bottled Frappuccinos sold in supermarkets.
• Market extension for Starbucks merchandise, such as aprons, hats, mugs
etc.
• Selling Whole bean sales in supermarkets at market price.
• Co-branding with other renowned giants of food or beverage industries.
• Created a CD-burning service in their Santa Monica (California USA) cafe
with Hewlett Packard, where customers create their own music CD.

13. S WO T A N A L Y S I S
(C o n t .)
Threats :
• Many entrants and copy-cat brands are a serious threat to the brand.
• Being established widely in the U.S., it has a serious threat to face if the
U.S. market faces saturation.
• Volatility of pricing in the different countries.
• Trends that are creating barriers to the consumption of coffee due to the
level of caffeine it contains.
• Global financial crisis which make peoples tend not to spend too much
money.

14. ST ARBUCKS
REVENUE
Starbucks
• $15 billion chain coffee business
• Total net revenues increased 10% to 2.8 billion Starbucks around the Globe
• EPS increased 21% to $0.34 in Q2 FY11 compared to $0.28 in Q210‘s
16,706 Starbucks stores in the world located in more than 50 countries
Number of Starbucks’ stores world wide

16. P RODUCT S UP P L Y
• Company were getting coffee beans through 3 ways.
• Importing coffee beans from various coffee producing countries.
• 2-Most coffee was purchased in the commodity market.
• 3-Starbucks entered into fixed-price purchase agreement.

17. CONCL US I ON
• Wide range product choices
• Introduces new beverages every year
• Mouth to mouth publicity
• Importing coffee from various sources.
• Good financial condition.

18. T HANK
Y OU