Case Study of Starbucks

Topics: Starbucks, Coffee, Coffeehouse Pages: 21 (6850 words) Published: May 23, 2013



Serial No| Particulars| Page Number|
1| Introduction| 3|
2| Product Strategy| 5|
3| Pricing Strategy| 10|
4| Place Strategy| 13|
5| Promotion Strategy| 20|
6| India Strategy| 26|
7| References| 34|


Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. It was started by three partners’ English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. Starbucks is named after the first mate in Herman Melville’s Moby Dick. Logo is also inspired by the sea – featuring a twin-tailed siren from Greek mythology

The starbucks story
The story began in 1971 were it was a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market. Today, they have millions of customers coming every day, in more than 16,000 locations in over 50 countries Starbuck’s mission- Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.

Starbucks Coffee
Starbucks believe in serving the best coffee possible. Starbucks coffee is grown under the highest standards of quality, using ethical trading and responsible growing practices. Coffee buyers personally travel to coffee farms in Latin America, Africa and Asia to select the highest quality arabica beans. Once these quality beans arrive at our roasting plants, Starbucks experts bring out the balance and rich flavor of the beans through the signature Starbucks Roast™. Starbucks outlets “Our stores are a welcoming third place for meeting friends and family, enjoying a quiet moment alone with a book or simply finding a familiar place in a new city” * Total stores 16,706 (as of Dec.2009)

* 8,850 Company-operated stores.
* 7,856 Licensed stores.
Starbucks Revenue model

Company operated retail stores
Through its "company-operated retail" coffee houses, Starbucks sells high-quality whole bean coffee, freshly brewed coffee, premium teas, a variety of cold blended beverages, various food/pastry items, and coffee/beverage related equipment and accessories, as well as a line of CDs. Specialty operations

Starbucks’ specialty operations segment tries to develop the company's brand through third parties outside the traditional coffeehouse. Licensed Stores: Located in places like airports and supermarkets, licensed stores generate licensing fees and royalties as well as revenue from Starbucks’ coffee, tea, and CDs resold in the licensed locations. In 2010, Starbucks had 4,424 licensed stores in North America and 3,601 abroad. Packaged Tea and Coffee: Starbucks sells its packaged coffee and tea as a retail product at various food stores. Branded Products: Starbucks has partnerships with Pepsi and Dreyer's to develop and distribute ready-to-drink beverages and ice creams. Foodservices Operations: Starbucks sells its coffee to foodservice operators like restaurants, offices, hotels, and cafes (including the Barnes and Noble Cafes) that operate under different licensing contracts. Other: Starbucks also has entertainment business relationships with Hear Music, Satellite XM Radio (24-hour Starbucks Hear Music digital music channel), and provides wireless broadband Internet service in company-operated retail stores in U.S and Canada. Starbucks also has a credit card agreement with Chase. PRODUCT STRATEGY

Coffee: More than 30 blends and single‐origin premium arabica coffees. Handcrafted Beverages: Fresh‐brewed coffee, hot and iced espresso beverages, coffee and non‐coffee blended beverages, Vivanno™ smoothies and Tazo® teas. Merchandise: Coffee‐ and tea‐brewing equipment, mugs and accessories, packaged...
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