CUSTOMER EXPECTATIONS

• EASY ORDERING
• QUICK SERVICES
• AUTHENTIC FRESH FOOD
• QUICK SERVICES
• DRIVE-THRU OPTIONS
• BISTRO BOXES
5 C’s ANALYSIS
1. CUSTOMERS
NEED ANALYSIS
• Starbucks founders saw that there is a considerable number of coffee lovers
who were tired of all the available options and also looking for a naturally
processed, authentic coffee beverage & was willing to grind the beans in their
home.
•  So they opened the first store in Seattle to sell authentic coffee beans to this
tiny niche of gourmet coffee lovers. The brand’s quality spread by word of
mouth.
• Breakfast
Coffee , sandwiches
• Lunch – lunch meetings,
• DECISION MAKING PROCESS ANALYSIS
1. PROBLEM RECOGNITION – TO BE ABLE TO GET LUNCH/DINNER
OFFERINGS AT STARBUCKS
2. INFORMATION SEARCH- THROUGH INTERNET, FOOD SEARCH APPS,
WORD OF MOUTH, INFLUENCERS
3. EVALUATION OF ALTERNATIVES- CONCERN ABOUT THE MOST
IMPORTANT FEATURES
4. PURCHASE DECISION- WHERE TO BUY? WHICH SHOP WILL SERVE
MY NEEDS?
5. POST PURCHASE EVAUATION
5 C’s ANALYSIS- CONTEXT ANALYSIS
• DEMOGRPHIC ENVIRONMENT-
• Income of target market - $56,516
16 to 19 years: $422 weekly/$21,944 annually
20 to 24 years: $525 weekly/$27,300 annually
25 to 34 years: $776 weekly/$40,352 annually
35 to 44 years: $976 weekly/$50,752 annually
• Product Prices
Espresso, Coffee & Tea : $3.45- $4.04
Frappucino, Refreshers: $ 2.87- $ 6.96
Bakery : $2.87- $4.04
All day Breakfast : $4.64-$5,56
Lunch& anytime snacks : $5.79- $7.55
Starbucks do provide some low-cost items for those who still want the quality of their coffee.
• Technological factors
• For instance, they developed the Starbucks card, which is basically a
pre-paid reward card.  This keeps repeat customers and as a person
bumps up rank in the program, they receive greater benefits.
 Everything is stored within the system and when
a Starbucks employee sees a customer with the Starbucks card,
special treatment is delivered.
Company analysis
• Business Model – Company owned business model.
Starbucks has 49% of company-operated stores vs. 51% of licensed stores, revenues for company-operated
stores accounted for 79% of total revenues compared to just 11% of licensed stores in 2017.

• Competitive Advantage analysis

• Opened the first store in Seattle to sell authentic coffee beans to this tiny niche of gourmet coffee lovers.
• Authentic Quality- Premium Arabica beans.
• Particular attention to ‘Aroma’ as it plays a vital role in the Store experience
Collaborators & Complementors
• Regency Centres- leases property to Starbucks
• First Capital Realty- also leases property to Starbucks
• Tingyi Cayman Islands Holding Corp. - Manufactures and markets
Starbucks’ ready-to-drink (RTD) products in the People’s Republic of
China (PRC). 
• Dean Foods- provides Starbucks with milk that is free of the bovine
growth hormone rBGH
• Inventure Foods- markets Seattle’s Best Coffee Frozen Coffee Blends
for parent company Starbucks
Competitors Analysis
STARBUCKS DUNKIN DONUTS Mc DONALD’S

STORES IN US 6031 9419 15,828

Anytime Breakfast $4.64-$5.56 $1.19-$6.09 $1.51-$1.98

(PRICE RANGE)
BAKERY $2.87-$4.04 $0.99-$1.69 $1.51-$3.03

Beverages $2.63-$7.00 $1.59-$22.99 $2.80-$3.97

REVENUE $4,224.0 M $319 M

$5341.3 M
Porter’s 5 Forces
Industry competitors
Potential Entrants
Availability of substitutes
Buyer power
Supplier power
 Costa Coffee, Dunkin Donuts, Café Coffee Day, local coffee houses
McDonalds McCafe, Moderate Threat
Instant beverages from vending machines, ready-to-drink beverages are
available from various outlets, such as fast food and fine-dining
restaurants, supermarkets and grocery stores, and small convenience
stores.
Large no. of substitutes makes it easy for customers to switch brands.
The high variety of suppliers weakens their bargaining power.
SWOT OF THE OCASSIONS STRATEGY
STRENGTHS WEAKNESSES
• Established brand name • Redesigning stores,
• Market expansion • Involved changing people’s habits,
• Duplicity / Recurrence of products in different
menus

OPPORTUNITIES
• Easy entrance in international market,
• Customized menu according to the region,
• Increasing relevance for the other dayparts beyond
mornings.
• Giving customers new reasons to visit Starbucks,
• Evolution into a “food and beverage destination”.
THREATHS
• Confusion in the minds of customers,
• Complex menu,
• Less satisfying customer decisions,
• Problems in employee training