THEORIES OF RETAILING AND

FRANCHISING

Introduction
Name : Starbuck (Inspired from Moby-Dick Novel)
Founders: Jerry Baldwin , Zev Siegl , Gordan
Bowker
Founded:1971, Pike place market in Settle
,Washington
Industry :Restaurant, Retail , Entertainment
Key person: Howard Schultz (Chairman,
President , CEO)
Employed :1.6 Lac partners
Achievement:
2005:Second Best Company to work with (fortune
survey)
2010: World Most Ethical Company

Tata Starbucks
Ltd.
Company
Tata
Starbucks
Ltdis a
50:50 joint venture company,
Profile
owned
byStarbucks
CorporationandTata
Beverages.

Global

As of july 2015 they have

opened up around 76 stores
across many cities in India.

TATA
Starbucks
Ltd.
Revenue.
2014- 95 crores from 43
outlets
2015- 171.2 crores from 76
outlets (80% jump from the

Mission
"To inspire and nurture the human
spirit - One person, One cup, and
One Neighbourhood at a time."

Vision
To establish Starbucks as the
most recognized and respected
brand in the world

Starbuck Logo

1) Image of Twin Tail Serene is

chosen because of
psychological relation between
lure of fresh roasted coffee,
tea, spices and mythological
enchanting character
2) IL Giornale logo and Starbuck
logo was merged to designed
new stylish Starbuck logo
3) Current logo is cropped and
Zoomed version of the serene

HR Policy
Motto To have right people hiring the right people
Starbuck Second best company to work with
It strongly believes that motivated and committed
workforce are key to retail business
Employee friendly policies and supportive work
culture
Starbucks hired people for qualities like
adaptability, dependability and the ability to work
in a team.
Frontline staff at store are not allowed to use
perfumes as it may mask the fragrance of fresh
coffee

HR Policy
The Starbucks Total Pay package is called Your Special Blend
because its just for you which includes:
Competitive pay
Insurance: medical, prescription drug, dental, vision, life,
disability
Bonuses
Paid time off
Retirement savings plan
Stock options and discounted stock purchase plan
Adoption assistance
Domestic partner benefits
Emergency financial aid
Referral and support resources for child and eldercare
A free pound of coffee each week

Training
For retails Job -24 hr training program in
the first 2-4 weeks
Training includes classes on
- Coffee History
- Drink Preparation
- Coffee knowledge (4 hr)
- Customer Service (4 hr)
- Retails Skills
-Brewing the Perfect Cup (4hr )

Starbucks Retail Mix

Location
Merchandise assortment
Pricing
Advertising and promotion
Store design and visual merchandising
Customer service
Personal selling.

Starbucks retail strategy

Starbucks retail strategy is designed primarily to
maintain loyalty and repeat business among its target
market (upscale coffee drinkers) encompasses hiring and
training knowledgeable counter servers, called baristas
(Italian for bartenders), to educate customers about
Starbucks specialty coffee drinks and associated
products, and to provide customers with an opportunity
to take a break from their busy lives in a relaxing
atmosphere.
The company has also entered some creative
partnerships to put its cafes in Nordstrom and Barnes &
Noble stores and serve its coffee on United Airlines.
Licensing the brand name for other food products such
as ice cream and soft drinks also increases its brand
awareness.

SWOT Analysis of Starbucks

Strengths

Weaknesses

1.
2.
3.
4.

1. Non-pioneer in global
market
2. Narrow Product line
3. Complicated Products

5.
6.
7.
8.
9.

Brand name recognition

Quality Products
Potential Internal Strengths
Good Marketing Skills
Well Developed Corporate
strategy
Location
Visionary leader
Distribution
Manufacturing competencies
Exclusive marketing rights

Opportunities

Threats

1. Expand into Foreign Markets

2. Widen Product Range
3. Diversify into new Growth
Businesses
4. Apply brand name capital in

1. Change in consumer tastes

2. City regulations
3. Increase in domestic
competition
4. Changes in economic

Corporate Social Responsibility(CSR)

Green Stores:
Building greener
stores
Purchased
renewable energy
Greener Cups:
The quest for the
100% recyclable
cup

Competitors of Starbucks
US: Pea's Coffee & Tea, Seattle's Best Coffee
etc.
France has sidewalk cafes,
Vienna has grand coffee houses,
Italy's high-octane espresso bars
British have long been heavy tea drinkers
The Pacific Rim, including Singapore and Japan
In India they face stiff competition from Caf
Coffe Day, Barista, Lavazza, Costa Caf etc.

Starbucks plans for India

India is one of the five countries that Starbucks is
focusing on for international expansion.
In 2006, Starbucks planned to enter into Indian market
with the help of a franchisee Indonesias V.P. Sharma, an
NRI.
It was a 51:49 JV between Starbuckss franchisee V.P.
Sharma and Future group CEO Kishore Biyani called
New Horizons.
FIPB didnt approve this JV. They said Starbucks can have
51% direct investment with an local Indian partner.
Starbucks joined hands with PVR theater to sell
Starbucks merchandise.

Starbucks plans for India

In January 2011, Starbucks Corporation andTata
Coffee, Asia's largest coffeeplantationcompany,
announced plans for a strategic alliance to
bringStarbucksto India and also to source and roast
coffee beans at Tata Coffee'sKodagufacility.Despite
a false start in 2007,in January 2012 Starbucks
finally announced a 50:50 joint venture withTata
Global Beverages, called Tata Starbucks Ltd.
On 19 October 2012, Starbucks opened its first store
in India, measuring 4500 sq ft in Elphinstone
Building,Horniman Circle,Mumbai.
In India Starbucks will face strong competition from
CCD, Barista, Costa Caf, Lavazza.

Grand Strategy Options

Market Development
Grow international sales volume by offering Starbucks
products in grocery stores, business and other wholesale
accounts
Offering bottled Frappuccino coffee drinks, Starbucks
DoubleShot coffee drink and line of super premium ice
creams in the international markets
Starbucks brand awareness to grow and develop new
distribution channels with their international partners.
Starbucks currently has a joint agreement with Alaska
Air to serve Starbucks coffee on every flight
Increased brand awareness will increase sales and their
local retail sector will benefit, development of new
distribution channels.

Grand Strategy Options

"Product Development
Starbucks needs to work with its international
partners to identify local cuisine that would be sold in
the Starbucks stores to bring in the local crowds
Starbucks Hong Kong sells curry puffs, sausage rolls
and seasonal products such as Starbucks' moon cakes
Starbucks needs to expand the music CD's that they
sell to include local music and cultural tastes
(Starbucks will help to promote that local community
appeal of their stores)
The Starbucks store becomes a local community
gathering place not just another American corporation
taking money from the economy and not giving
anything back

Grand Strategy Options

"Conglomerate Diversification
Starbucks partner with local phone companies
and internet providers to setup internet access
at their international stores
Internet cafe's are very popular. The internet
cafe's are much more popular overseas than
they are in the US. This is because many
people in international countries do not have
home computers, so they have to go to the
local internet cafe in order to send and receive
email

Grand Strategy Options

The chief global strategist of Starbucks, Howard
Schultz's primary goal is to make the company's
green-and-white mermaid join the ranks of the
most recognized global brands such, as Coke and
McDonalds
In order to accomplish this, Schultz must manage
the global expansion on a daily basis by finding
the right mix of company owned stores,
partnerships and licenses
Starbucks must be willing to act quickly to any
changes in the international business climate

Promotional Strategies
Membership Cards
1. Corporate Cards
2. Regular Cards
Internet / Wi-Fi facility
Social Networking sites
1. Facebook
2. Twitter

Membership Cards (Regular)

Membership
Cards(Corporate)

Conclusion
At Starbucks its not just
an exchange of coffee
over the counter from one
hand to another, its
making a connection,
creating a relation and
giving an experience.

Thank
You