Starbucks Corporation: Group Members

STARBUCKS
CORPORATION
Group members
Abhimanyu Daga 02
Anusha Thakur 09
Bhumi Shah 16
Keshav Modi 23
Movit Ramwani 29
Niharika Sharma 35
Company background
•The largest coffeehouse company in the world
•16,635 stores in 49 countries, including 11,068 in the
United States, nearly 1,000 in Canada and more than
800 in Japan.
•Sells various products from coffee to icecream
•Markets products from mugs and tumblers to music
and films
•Expansion spree in the 1900’s and the first half of
2000’s
•Overseas stores constitute almost one third of
Starbucks' stores
SALE AND EXPANSION
•Starbucks has ambitious growth goals
•Planning their entry in nascent markets of Asia
•China and India are best suited
•The plan is to operate 15,000 stores at home and another
15,000 abroad, increasing revenue 20 per cent and profit at
a 20-25 per cent clip annually over the next three to five
years.
MARKET OVERVIEW
•The retail food market in India is expected to grow by 9%
•Nearly a million daily coffee drinkers
•Coffee is becoming more and more popular especially among the
youth
•India is one of the fastest growing coffee markets in the world
•Cafés are increasingly becoming more than places to sip coffee
•Coffee consumption is expected to double in the next 5-10 years.
•Tecknopak advisors, a global retail consultancy firm, pegs the
organised coffee retail business in India at over Rs 8 billion with the
potential space for nearly 3,000 coffee retail outlets in India.
TARGET MARKET
1. PRIMARY MARKET
•The Primary target market for Starbucks Coffee Co.in

India is the youth both male and female from the ages
of 16-38.
•This market is well educated and comes from middle
class to upper middle class population.
TARGET MARKET
2. SECONDARY MARKET
•The secondary target markets are the tourists in the areas

•most tourists in India come from the countries of U.S., England,
Germany, and Japan
•This market will also fall in the middle to upper middle class
population and will find the Starbucks India prices relatively
cheap
•Starbucks will target the market region wise as most of the
South Indian Population prefers coffee over tea.
PRODUCT OFFERING
•Adaptation of the global coffee culture
•Offering the products in a wide range of variants
including hot coffee, cold coffee, coffee add ons, powder
coffee, etc
•State-of-the-art store formats offering wi-fi access to
customers
•Incorporating formats like-
music cafés, book cafés, highway cafés, lounge cafés,
garden cafés and cyber cafés targeting a diversified
customer profile
PRIME CUSTOMERS
• Age group of 15-29

• Teen-agers form 25 per cent of the customer profile
• 38 per cent of them are between 20 and 24 years
• Another 23 per cent belong to the age group of 25-29
years.
• Opening small-sized coffee parlours to provide a
neighbourhood coffee experience and lure more people.
COMPETITION
•CCD
•Barista
•Costa Coffee
•Coffee World
•CBTL
•Retail players like Reliance Retail and Shoppers Stop are
also retailing coffee with their multi-products offering
outlets like Reliance TimeOut and Desi Café respectively
PESTLE ANALYSIS
1. Political
• Joint partnership with TATA Coffee
2. Economic
• Booming economy
• Increase in employment
• Increased standard of living
• Increased disposable income
3. Social
• Indians shifting from tea to coffee
• Existence of other coffee joints in the country
PESTLE ANALYSIS
4. Technological
• Knowledge of IT
• Research and development
• Free Wifi services
5. Legal
• Complete legal support from TATA

6. Environmental
• Cutlery (for take away) is made of recycled paper
• Promote the use of paper bags

MARKETING MIX
MARKETI
NG MIX
PRODUCT
• 30 varieties of whole bean coffees
• Eco-friendly cappuccino, coffee makers, and
other Starbuck paraphernalia
• Pastries and coffee to oatmeal, smoothies, and
wraps
• The company has also been constantly
introducing new products, such as "Instant via
Ready" and "Full Leaf Tazo Tea Lattes" and "Tazo
Tea Infusions"
PRICE
•Starbucks products are priced higher due to

perceived upscale image attached to its brand
•implementing "value strategies"
•Price sensitive indian consumers
•The product needs to be of good quality and
affordable.
PROMOTION
• Appealing to a diverse customer base
• Using philanthropy as a means for

promotion
PLACE
•Starbucks’ locations are extremely conducive for
individuals that are on the go and for those who
enjoy reading or listening to music.
•First outlets in the 2 major metropolitan cities,
Mumbai and Delhi
•If the new stores are highly profitable, Starbucks
can expand to more than 200 stores in India
MARKETING STRATEGIES
•Employing trained chefs and food scientists to

develop new products.
•Establish brand loyalty
•Differentiation approach.
•Internet inside Starbucks
•Leader in a new industry
•Fixed price without market fluctuation
•Web-site
•www.myStarbucksidea.force.com for feedback
STRATEGIC PLANNING AND
POSITIONING
•Corporate Strategy
•Constantly innovate
•Emphasize on Pursuit of Quality
•To reach customers in locations close to where
they work, travel, shop and dine.
•“Starbucks’ experience”
•Environmentally friendly

MARKET ENTRY MODES AND
EXPANSION INITIATIVES
•Starbucks uses 3 entry mode strategies:

1) Joint venture
2) Licensing
3) Company-operated modes.
•Extensive research
•Superior technology and product development
Knowledge
•Partnerships and tie ups with giants like pepsico
and unilever
INVESTMENT DECISIONS
•Focus on the socio-cultural aspects of the Indian
business
Environment.
•Excellent marketing strategies
•Emerging Indian market
•Globally acclaimed brand name
•Alliance with TATA coffee
SUGGESTIONS
•Adopting a multi-tier strategy

•Initially focus only on the metropolitan cities
•Customize their menu
•Customize their menu
•Reduce prices
•Avoid unnecessary expenditures
•Expand into countries such as Norway and
Sweden
•Starbucks applications on the Apple Iphone
THANK YOU

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STARBUCKS

•The Primary target market for Starbucks Coffee Co.in

•The secondary target markets are the tourists in the areas

• Age group of 15-29

•Starbucks products are priced higher due to

• Using philanthropy as a means for

•Employing trained chefs and food scientists to

•Starbucks uses 3 entry mode strategies:

•Adopting a multi-tier strategy

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