ABOUT THE COMPANY

• Starbucks Corporation is an American multinational chain of coffeehouses and

roastery reserves headquartered in Seattle, Washington. The company operates
in over 30,000 locations in 70 countries worldwide as of early 2020.

• As the world’s largest coffee-house chain, Starbucks is seen to be the main

representation of the United States’ second wave of coffee culture. Starbucks coffee
houses serve-
-Hot and cold drinks
-Whole-bean coffee
-Micro ground instant coffee known as VIA
-Espresso
-Caffe lattes
-Fill- and loose-leaf teas including Teavana tea products
-Evolution Fresh juices
-Frappuccino beverages
-La Boulanger pastries
-Snacks including items such as chips and crackers
-And also some offerings which are seasonal or specific to the locality of the store.
 STARBUCKS IN INDIA

• In the 2010s, Starbucks was keen on entering the Indian market. The company
wanted to capitalize on the rise of coffee culture by targeting the niche upper-class
segment in India. In 2007, it announced its entry in India but withdrew without any
explanation. It was in 2011 that Starbucks finally made a grand entry into the
market.

• When the world’s biggest bistro chain wanted to enter the Indian market, they
entered into a 50-50 joint venture with Asia’s largest coffee grower, Tata Consumer
Products Limited.

• After successfully launching their brand, the next important step in ensuring they
were here to stay, was to nail their target audience.
 HISTORY AND TIMELINE - STARBUCKS
Founded in 1971 :
By Jerry Bladwin, Zev Siegl and Gordon
Bowker and initially only sold coffee beans and not coffee
based drinks it is famous for now.
Sold to Howard Shultz in 1986 famous who took
the brand and made it into the version of Starbucks we see
now
Starbucks logo over the years :
Starbucks in India
Initial attempt at entry into the market
• In the 2010s, Starbucks was keen on entering the
Indian market. The company wanted to capitalize on
the rise of coffee culture by targeting the niche
upper-class segment in India.
• In 2007, it announced its entry in India but
withdrew without any explanation.
Starbucks finally enters india in 2011
• Starbucks, the world’s biggest bistro chain finally
made a grand entry into the Indian market, by
entering into a 50-50 joint venture with Asia’s
largest coffee grower, Tata Consumer Products
Limited.
Agenda for Starbucks in India
• Starbucks had the next important step in
ensuring they were here to stay, by nailing
their target audience – namely the Urban-ish
High Income Spenders
 MARKET STP

Segmentation

Demographic Geographic Psychographic

• Age 25-44 : 49% of • Different Countries Catering different

total sales • Seasonality/Climate lifestyles-
• Young adults (18-24 ) • Upscale locations • Office workers
– second largest • Near colleges/ offices • Environment
market share. Conscious
• Prosperous Families

• High income, • Healthy Professionals

Target Market • High Spenders • Socially conscious
• Urban-ish on the Go • Reaching beyond the
• Technology early adopters storefront
 MARKET STP

• Technology equipped coffee stores

Positionin • Niche product for upper middle class
g • Strategic partnerships with business houses.

• Tangible attributes of the product-

Defines (high quality, expensive )
• Intangible perceptions –(personalized
in store experience )

• Spend time – benefits

of cozy environment ,
USP Wi-Fi provision.
• On the go beverages

Higher degree of differentiation

Adds a dimension of
Dimension competitive advantage
 STRATEGIC MARKETING

ANSOFF MATRIX
 STRATEGIC MARKETING

BCG MATRIX
 HOW STARBUCKS CATERS TO
ITS TARGET AUDIENCE
• Who are their customers?
• According to a research report done in April 2
017
, the target audience for Starbucks is men and
women in the middle to upper classes who
can afford Starbucks higher priced beverages
regularly
So how do they convince people to fork over that kind of
cash, when they could just have coffee at home?
• They offer their target audience an experience when they
come into their stores
• By focusing on the third place and giving their customers a
place to be and interact, they make the price of the drink
worth it in the eyes of their customers
• There is something comforting about ordering a good cup
of coffee and being encouraged to sit in the shop with your
laptop and work. That’s the experience Starbucks provides
• Changing the coffee experience
• Starbucks deserves credit for changing the coffee
experience in the U.S. and much of the world
• Thirty years ago, espresso drinks like lattes and
cappuccinos and their variations were mostly
confined to Italian restaurants, while Americans
sipped instant coffee or watered-down drip coffee
for a caffeine buzz. On a visit to Italy, Starbucks CEO
Howard Schultz recognized the opportunity of
bringing such a traditional cafe to the U.S. The rest is
history
Starbucks Digital Marketing Presence
• Starbucks knows its audience is technologically
advanced, which makes it imperative for them to
have a strong digital marketing strategy
• Starbucks posts daily on its social media handles and
comes up with challenges and games to engage its
customers and increase its fan base
 HOW STARBUCKS CATERS TO
ITS TARGET AUDIENCE
• Product
• •
Why do you spend twice the amount of money on a Starbucks
coffee rather than go to McDonald’s drive-through? That is
because you are paying for one of the highest quality coffees in
the market
• The audience of Starbucks have come to appreciate the high
quality of the product and the experiential value that it offers.
That premium Starbucks coffee tastes better than most other
franchises also helps as well as their promise to fix your drink if
you don’t like it
Convenience: The Starbucks Mobile App
• Starbucks makes it easy for you to walk into a store and pick up
your order. Because a large part of the Starbucks demographic is
people that are upwardly mobile and on the go, the mobile app is
a great way to purchase products on the go with a mobile phone
and pick them up in the store with little delay
• The Starbucks app lets the company deliver all the benefits of a
loyalty card, a referral program and a customer rewards program
all into the same location
The Starbucks Loyalty plan
Starbucks has an outstanding Rewards program that allows
consumers to purchase their products
• These incentives include new in-store refills, free items, gift
cards, and cashback deals. Discounts and several other deals
often ensure that consumers know they are benefiting from
the Starbucks ecosystem
• Consumer experience
• As a company, you should always ensure that your
brand provides all consumers with a familiar
experience so that they can keep coming back to your
business
• This also makes it easier to make brand ambassadors
proud of your brands everywhere you go.Startbucks
provides great ambience with wide variety of
products and great place for people to hangout and
share ideas
 MARKETING MIX

PRODUCT: PLACE:
• Go-to place for premium coffee • Omnipresence plays an important role in its success
• Our Barista Promise- Customers • More than 28,000 outlets in more than 70 countries
can request for customized drinks • Mobile app combines e-commerce and e-payment
• Branded Merchandise- Selling functions
beautiful lifestyle products is one • Perfect for time-strapped customers and people who
way Starbucks differentiates itself hate waiting in line.
from other coffee chains
PROMOTION:
• Paid advertisements like TV commercials and print
PRICE: ads,
• More expensive products are conceived as better in quality• Active promotion on social media
• Two main focal points: customer experience and quality. • Mix of marketing media that makes their brand
• Every Starbucks interior is built to be cosy, perfect for recognizable on social media
relaxing  • Consistent message that comes across every time
• Committed to maintaining the same level of customer
experience across its 28,000 stores
• Thus managed to boost the perceived value of its brand.
 MARKE TING DURING COVID

Expansion: Social Media Campaigns

Launched drive-thrus to encourage people to engage
with them #ReconnectWithStarbucks campaign
Also launched home delivery to make sure they are connected• Asked customers to share their ways of reconnecting
with their customers during the pandemic amidst the pandemic
• Share their favourite Starbucks memory on their
Launched app – Starbucks India App so that customers personal Instagram handles with the hashtag
can easily navigate and purchase their offerings. #ReconnectWithStarbucks.

#StarbucksAtHome
• Freshly brewed beverages that could be bought via
take-away or ordering through Swiggy and Zomato

#StarbucksDance
• Asked customers to shoot a dance video with the
drink and upload them on their personal stories.
• Promised a year of free Starbucks for the winner