Mini Project

On

in partial fulfillment of the requirement for the award of the degree of

Master of Business Administration

Project Submitted By
TANYA PATHAK

Under the Guidance of

Dr. Shubhendu Shekher Shukla
Asst. Professor

SRM BUSINESS SCHOOL, LUCKNOW (666)

(Approved By AICTE, Ministry of HRD, Govt. of India and Affiliated to Dr. A.P.J.
Abdul Kalam Technical University) LUCKNOW
NH-24 SITAPUR ROAD BAKSHI KA TALAB LUCKNOW
(SESSION 2021-2022)

1
Sr. No
INDEX Topic PAGE NO.

1 ACKNOWLEDGEMENT 4

2 DECLARATION 5

3 CERTIFICATE 6

4 PREFACE 7

5 INTRODUCTION 8-9

6 STARBUCKS CEO 10-11

7 COMPANY PROFILE 12

8 STARBUCKS COFFEE COMPANY 13-14

LOGO CHANGES
9 PRODUCTS OF STARBUCKS 15

10 ASKING IF 2016 WILL TOP 16-17

2015 IS A GOOD QUESTION?

11 STARBUCKS HEADQUATERS 18
INFORMATION

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12 STARBUCKS HEADQUATERS 19
EXCEUTIVE TEAM
13 STARBUCKS POSITION 20

14 STARBUCKS STRATEGY 21-23

15 COMPANY TIMELINE 24-25

16 STARBUCKS IN INDIA 26-29

17 OBJECTIVE OF COMPANY 30

18 31-32
STARBUCKS SUSTAINABLE
DEVELOPMENT COMMITMENT

19 OUR NEIGBOURHOOD 33

20 5 CORE PRINCIPLES OF SUCCESS 34

21 STARBUCKS FOUNDATION 35-36

22 STARBUCKS 5 Ps ANALYSIS 37-42

23 SWOT ANALYSIS 43-45

24 RECOMMENDATIONS FOR 46
STARBUCKS COOPERATION
25 CONCLUSION 47
26 BIBLIOGRAPHY 48

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 ACKNOWLEDGEMENT

To make any project, essential requirement is able guidance and references

without which project is incomplete. I am very much thankful to my teacher
DR. Shubhendu S.Shukla who gave me the golden opportunity to do this
wonderful project on the topic “STARBUCKS CORPORATION” which also
helped me in doing a lot of research and I came to know about so many
things and this will help me a lot in my career.

At last but not the least, I am thankful to all my colleagues, friends and
other persons who have directly and indirectly helped me a lot in finishing
this project within the limited time.

I am making this project not only for marks but to also increase my
knowledge.

Thank You
TANYA PATHAK

MBA-1ST YEAR

4
 DECLARATION
I hereby declare that the project report titled “STARBUCKS
CORPORATION” own work and under the supervision of Dr.
Shubhendu S.Shukla .
I assert the statements made and conclusions
drawn are an in the report is original and best of my
knowledge This work has not been submitted to any other
university for any examination. outcome of my research work.
I further certify that the work contained.

TANYAPATHAK

MBA -1ST YEAR

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6
 PREFACE
As a part of the MBA Curriculum and in order to gain
knowledge in the field of management, I had made a project
on the basic objective behind doing this project is to get
knowledge about how the company perform their services.
In this project I have included history, introduction, SWOT
analysis objective/purpose,.
Doing this project report helped me to enhance my knowledge
regarding the performance of how the “STARBUCKS
COPORATION” function properly. I undergo many experiences
related with the topic.

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 INTRODUCTION
Starbucks was established in 1971 by three local businessmen to sell high quality
whole beans coffee. In 1981 when Howard Schultz visited the store he Plan to
build a strong company and expand high quality coffee business with the name of
Starbucks. Starbucks air is to provide high quality of coffee to its consumer and
aim to achieve product innovation, retail expansion and provide service quality for
long term.
Starbucks open its first coffee store in Seattle, Washington. In 1990 Starbucks
expand its headquarters in Seattle and also build a new roasting plant. In 1990s
Starbucks opens 60 retails shops in United Kingdom. At the end of 2000s
Starbucks total branches was 3500. Coffee is one of the rapidly growing industry
in this world due to its business strategy. According to national coffee association,
USA 49% of American age 18 and more drink coffee beverage every day. Coffee
industry was in peak of its success at the end of 1990s.
Target market means to select one or more market segment and product position.
Starbucks also focus on consumer habits and share its specialty of coffee with the
buyers. In the end of 20th century there are many changes in market that helped
Starbucks getting successful. The most important change of the last twenty, thirty
years is the changes of economic policies over the world. Starbucks target market
was 18 years to 24 years young professional because they are not yet Been loyal
with coffee industry. Starbucks strategy comprises to locate its stores at picky
places such as the first floor of blocks of offices, underground main entrance and
urban areas. Starbucks sales totally depends on company operate retail stores and
certified retail operations, Starbucks sells coffee and tea products through many
others channels like distribution targeting restaurants, hotels, colleges and
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universities and other work places. According to Fleisher & Bensoussan (2002)
Starbucks target market was wealthy, upper class and educated who are agree to
pay high prices of Starbucks due to its high quality and customer service.

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 Starbucks CEO
Howard Schultz

Howard D. Schultz (born July 19, 1952) is an American businessman and author, who is
currently the chief executive officer (CEO) of the Starbucks Coffee Company. He served
as both chairman and CEO of Starbucks from 1986 to 2000, and then again from 2008 to
2017. Schultz also owned the Seattle SuperSonics basketball team from 2001 to 2006.
Schultz began working at the coffeehouse Starbucks in 1982. He later left and opened Il
Giornale, a specialty coffeeshop, that merged with Starbucks during the late-1980s. Under
Schultz, the company established a large network of stores which has influenced coffee culture
in Seattle, the U.S., and internationally. Following large-scale distribution deals Starbucks
became the largest coffee-house chain in the world. Schultz took the company public in
1992 and used a $271 million valuation to double their store count in a series of highly
publicized coffee wars. He stepped down as CEO in 2000, succeeded by Orin Smith.
During the 2008 financial crisis, Schultz returned as chief executive. Succeeding Jim
Donald, Schultz led a mass-firing of executives and employees, and shuttered hundreds of
stores. He orchestrated multiple acquisitions of American and Chinese beverage companies,
introduced a national loyalty program, and enforced fair trade standards. His aggressive
expansion in Chinese markets has been credited with reconciling the country's tea-
culture with coffee consumption in China. Schultz was succeeded by Kevin Johnson as
CEO in April 2017 and Myron Ullman as chairman in June 2018.

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Schultz has written four books on business. He is an outspoken neoliberal. Schultz publicly
considered a candidacy in the 2012, 2016, and 2020 U.S. presidential elections as an
independent candidate. He declined to join all three contests. His positions on domestic
politics are socially liberal and fiscally moderate. In foreign policy, he is seen as a "liberal
hawk", favoring American-led international affairs and neoliberalism. Schultz was named
the 209th-richest person in the U.S. by Forbes with a net worth of $4.3 billion (October
2020).[2] Schultz started the Schultz Family Foundation to help military veterans and fight
youth unemployment.
On March 16, 2022 Starbucks announced that the current CEO Kevin Johnson is retiring and
that Howard Schultz would take over until further notice.

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 Starbucks
Company Profile
The Starbucks Story
Our story began in 1971. Back then we were a roaster and retailer of whole bean and ground
coffee, tea and spices with a single store in Seattle’s Pike Place Market.
Today, we are privileged to connect with millions of customers every day with exceptional
products and more than 24,000 retail stores in 70 countries.
Our Stores
Our stores are a neighborhood gathering place for meeting friends and family. Our customers
enjoy quality service, an inviting atmosphere and an exceptional beverage.
Total stores: 22,519* (as of June 28, 2015) Argentina, Aruba, Australia, Austria, Bahamas,
Bahrain, Belgium, Bolivia, Brazil, Brunei, Bulgaria, Canada, Chile, China, Colombia, Costa
Rica, Curacao, Cyprus, Czech Republic, Denmark, Egypt, El Salvador, Finland, France,
Germany, Greece, Guatemala, Hong Kong, Hungary, India, Indonesia, Ireland, Japan, Jordan,
Korea, Kuwait, Lebanon, Macau, Malaysia, Mexico, Monaco, Morocco, Netherlands, New
Zealand, Norway, Oman, Panama, Peru, Philippines, Poland, Portugal, Puerto Rico, Qatar,
Romania, Russia, Saudi Arabia, Singapore, Spain, Sweden, Switzerland, Taiwan, Thailand,
Turkey, United Arab Emirates, United Kingdom, United States and Vietnam.
Our Partners
We offer some of the finest coffees in the world, grown, prepared and served by the finest
people. Our employees, who we call partners, are at the heart of the Starbucks Experience.
We believe in treating our partners with respect and dignity. We are proud to offer two landmark
programs for our partners: comprehensive health coverage for eligible full- and part-time
partners and equity in the company through Bean Stock.

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 Starbucks coffee company
logo changes
The Original Starbucks logo was used from 1971 until 1987. The
Siren is the central part of the logo
1971 – 1987

In 1987 the company changed its name to the Starbucks

Corporation after being purchased by Il Giornale. The logo was
changed to represent both companies and the Tea and Spices was
dropped. This was the beginnings of the modern logo.
1986 – 1987

1987 – 1992 1992 – 2011

In 1992 the logo was made more modern. This happened around the
same time that the company began being publicly traded on the
stock market.
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This year, 2011, the logo was changed once again. This time the
name of Starbucks Coffee was removed from the logo. This
changed upset many people and caused a lot of reactions.

The old logo is still being used in some areas though.

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Products of
Starbuck

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 Asking if 2016 will top 2015 is a
good question?
Getting a handle on what might happen to each of your portfolio holdings during the
coming calendar year is a legitimate and necessary exercise. And for those lucky
investors who have held "SBUX" shares over the past few years, it's tempting to ask
whether this can be Starbucks' best year yet. Yet it may be wise to toss the question of
Starbucks' 2016 potential out the window, for two primary reasons.
First, the company has maintained momentum in global comparable sales with its
celebrated streak of 5%-plus increases over 23 quarters. That's nearly six years of
beating its own benchmark of mid-single-digits "comps" growth without fail. Even a
slight miss on this front in calendar 2016 would rattle investors significantly. And at
the moment, the company's stock is priced to reflect Starbucks' quality of execution
and competitive advantages.
We can see this when we line up the company's one year forward price-to-earnings
(P/E) ratio beside two competitors it's often compared to: Dunkin' Brands
(NASDAQ:DNKN) and McDonald's Corporation (NYSE:MCD):

SBUX P/E RATIO (FORWARD 1Y) DATA BY YCHART

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Just for some grounding, the current one-year forward P/E multiple for consumer-staples stocks in the
S&P 500, according to Yardeni Research, is 20.0. So whether placed beside stumbling competitors, or
among a broader spectrum of consumer-based companies, Starbucks is commanding a premium in the
marketplace.
Investors who get caught up recalling the magic of 2015, in which Starbucks' stock soared and it
seemed to distance itself from its peers, may find disenchantment if and when the company hits any
natural retracement, through business performance or stock price. Some shareholders will cash in their
profits at that point and seek another sandlot to play in.
But deserters beware! My second point is humbly offered. Of all the stocks I follow, Starbucks is
perhaps the least relevant in trying to determine whether the next year will bring the utmost of fortune.
That's because, if you sift through all the high quality companies which say they're playing a long
game -- and this management team is no exception; they say so, literally -- the global coffee
juggernaut stands out. Its executives both truly believe that the organization's investments will have an
extended payback period for shareholders, and they've built a track record of delivering the same.
Perhaps it's because Starbucks' customer base swarms with repeat visitors, either through an
experiential love or caffeine addiction, and building on this base isn't rocket science, once you focus
resources on employees, technology, and business execution. Whatever the case, as I wrote recently,
Starbucks exhibits a kind of aggression about the future. Excepting unanticipated external factors, it's
better for shareholders to worry about other stocks in their portfolios for 2016. For Starbucks, look
further ahead.

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 Starbucks Headquarters
Information
Starbucks started in 1971 with a roaster and the desire to sell the best roasted coffee beans and
spices on the market. The first store was in Pike Place Market in Seattle. From there, the
company spread to more than 60 countries. You would be hard pressed to find a single large
town or city that didn’t have a Starbucks store, but none of the stores are franchises as Starbucks
headquarters owns and operates all stores.
Starbucks Headquarters Info
The Starbucks headquarters is located in Seattle, Washington. The corporate contact information
is not listed openly on the official website, but we were able to find contact information like the
address for Starbucks headquarters and a contact phone and email on various websites.
▪ Address: If you want to write Starbucks headquarters, address your letter to:

Starbucks Headquarters 2401 Utah S. Seattle, WA 98134

▪ Phone Number: The phone number for Starbucks headquarters is 1-206-447-1575. We
verified the phone number, which was answered by an automated system thanking us for calling
the Starbucks Coffee Company.

▪ Email: Most companies do not offer corporate email addresses, but we find corporate contact
forms from time to time. Starbucks headquarters offers neither, but there is a contact form [+] for
customers who want to request information from the company. This could be just the contact
needed to start a conversation with the corporate office.

▪ Website: The official website for Starbucks is listed as the website for Starbucks
headquarters. The website is tailored to the consumer, but if you click the Investor Relations [+]
link at the bottom of the page you will visit the corporate side of the website. There you can find
information on the Board of Directors, Senior Officers, business finances and more.

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 Starbucks Headquarters
Executive Team
The two parts of the executive team for Starbucks consists of the Leadership Team
and the Board of Directors.

LEADERSHIP TEAM
Howard Schultz – CEO, President and Chairman of the
starbucks

Board Troy Alstead – COO

Cliff Burrows – US Group President

Michael Conway – Executive Vice President

Sharon Rothstein – CMO Global
Craig Russell – Executive Vice President
Hansberry – China and Asia Pacific President

Lucy Lee Helm – Executive Vice President

BOARD OF DIRECTORS
Howard Schultz

William Bradley

Robert Gates

Kevin Johnson
Olden Lee
Clara Shih
Myron Ullman III

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 STARBUCKS POSITON
Currently Starbucks position is as the leading coffee organization depends highly

around the globe expansion policy. Expansion of Starbucks around the globe is still

in the early stages and Starbucks has the great opportunity for future growth.

Starbucks main objective was to launch itself as the most renowned and respected

brand in the world. The company main objective was to the expansion of its

branches all over the world, to broad its retail business, develop new techniques,

product and introduce new distribution channels in order to achieve its goals.

The company another aims was Establish its brand as a leading brand in coffee

market by selling high quality products, providing better services and build

relationship between customers and the Starbucks. According to Clark (2007) page

137 brief the position of Starbucks that is "This conviction that Starbucks can

achieve the unachievable helps explain Schultz's dismissal of any concerns about

resistance to his company's ubiquity"

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 STARBUCKS STRATEGY
Starbucks adopt different type of strategy to build its branding in the market. Starbucks has numbers

of capabilities likes market leadership and its outlets as customers means its locations which means

it is the place where customers can relax from work or home and its supply chain management.

According to Porter (1998) there are three types of basic strategies a company can use to establish

itself like cost leadership, differentiation itself from the others and focus on the market. Cost

leadership has the strategy of develop a low cost product but it has a high quality and also reduces

operational cost. Differentiation means a strategy which is unique and self created strategy.

Starbucks' first outside American store was starting its business in Tokyo in 1996 joint venture
with a local company sazaby Inc. After establishing the business Starbucks increased the pace of
international expansion significantly. In 1998, Starbucks broad its business in the United Kingdom
with more than 60 busy town hall locations and in the same year it opened stores in Taiwan, New
Zealand, Malaysia and Taiwan.
In 1999, Starbucks opened first store in China (Beijing), South Korea, Lebanon and Kuwait and
in next year seven markets of Hong Kong, Shanghai, Qatar, Saudi Arabia, Dubai, Australia and
Bahrain. Starbucks use the strategy which is real estate management strategy due to its location
of its coffee shops. To try to keep the coffee taste in the stores clean, Starbucks banned smoking
and asked employees to refresh from draining perfumes. Prepared foods were kept covered so
consumer would smell coffee only instead of other food. Starbucks is culture oriented company
who introduce new techniques like commuter mugs and T shirts in different regions of USA that
was in keeping with each city's culture (like peach shape coffee mugs for Atlanta State, Paul
Revere picture for Boston State and the Statue of Liberty for New York city).
Starbucks' internal operations can be divided into two parts: Retail and Specialty. The Retail
division is governed directly by Starbucks Corporation. The Specialty division includes
foodservice, licensing agreements to overseas outlets and revenue from foreign joint ventures.

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 EXTERNAL STRATEGY
Starbucks not only focus on internal strategy but also focus on external strategy. For this purpose
Starbucks focus on marketing mix which is a tool of external marketing strategy which can
increase the demand of a product. The four major marketing mixes are like Product, Service,
promotion and Location are the set of controllable marketing equipment that any company can
adapt to achieve its basic objective in the market. Moreover, physical evidence, people and
promotion are the extensive tools which are used in the marketing mix to make further analysis.

 Product
Starbucks has a big menu like beverages, bakery food, fruit & snack plates, breakfast and
Nutrition but the major product is brewed coffee.

 Customer Service
In Starbucks shops customer are enjoying the unique experience of feeling which they call a
third place where they can relax between their journeys from home to the work. Starbucks aim to
provide customer satisfaction to provide uniqueness of enjoying Starbucks coffee experience. In
Starbucks shops the environment is really comfortable, relax, access the wi fi, listen your
favourite music and no smoking.

 Promotion
According to the Corporate Social Responsibility Starbucks is strongly committed towards a
positive picture in the community. Starbucks has transparent relations with the consumer and the
media through cultural and environmental events.

 Location
Starbucks is committed to make sure of its best stores location. Starbucks every stores is situated
at quite place where no traffic round it.
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  Distribution Channel
Starbucks has mutual understanding around the globe with different coffee farmers and has right
reserve to those crops, and most of the coffee beans was packaged and shipped to Starbucks
retails stores around the world. Due to these distribution channel Starbucks maintained its
differentiation from other competitors.

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 Starbucks Coffee
Company Timeline
From their first location in 1971 in Seattle to their status as the world’s most recognized coffee
shop, Starbucks Coffee Company has come a long way in the past few decades.

 1971 Starbucks opens first store in Seattle’s Pike Place Market.

 1982 Howard Schultz joins Starbucks as director of retail operations and marketing.
Starbucks begins providing coffee to fine restaurants and espresso bars.

 1988 Offers full health benefits to eligible full- and part-time employees, including
coverage for domestic partnerships.

 1993 Opens roasting plant in Kent, Wash. Announces first two-for-one stock
split.

 1997 Establishes the Starbucks Foundation. Opens stores in: the Philippines.

 2001 Introduces ethical coffee-sourcing guidelines developed in partnership with

Conservation International. Introduces the Starbucks Card. Announces fourth two-
for-one stock split. Opens stores in: Austria, Scotland, Switzerland and Wales.

 2004 Opens first Farmer Support Center in San Jose, Costa Rica. Introduces
Starbucks Coffee Master Program. Opens stores in: France and Northern Ireland.
Total stores: 8,569 2006 Launches the industry’s first paper beverage cup
containing post-consumer recycled fiber. Opens stores in: Brazil and Egypt.

 2011 Launches first annual Global Month of Service to celebrate company’s 40th
anniversary. Opens first Community Stores in Harlem and Crenshaw
neighbourhoods. Launches Starbucks® K-Cup® packs. Acquires Evolution Fresh.
Opens Farmer Support Center in Mbeya, Tanzania. Launches Create Jobs for USA

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 to encourage small-business growth. Opens stores in: Guatemala, Curacao and
Morocco.

 2014 Enhances iPhone app with shake to pay and digital tipping. Launches
Starbucks College Achievement Plan with Arizona State University to offer
qualifying Starbucks U.S. partners the opportunity to complete a college degree
through ASU’s online degree program. Announces commitment to hiring 10,000
veterans and military spouses by 2018. Opens first Starbucks Reserve® Roastery
and Tasting Room in Seattle. Launches Starbucks Mobile Order & Pay. Hosts first
in a series of Partner Open Forums to discuss race relations in America. Opens
stores in: Brunei and Colombia.

 2015 Launches Cold Brew iced coffee and Evolution Fresh™ handcrafted
smoothies. Announces sixth two-for-one stock split. Commits to hiring 10,000
opportunity youth by 2018. Expands Starbucks College Achievement Plan to offer
full tuition coverage for all four years of an undergraduate degree for qualifying U.S.
Starbucks partners. Commits to 25,000 partners graduating by 2025. Reaches 99%
ethically sourced coffee milestone. Opens stores in: Panama (as of June 28, 2015).

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 Starbucks in India
Tata Starbucks Ltd is a 50:50 joint venture company, owned by Starbucks Corporation and
Tata Global Beverages, that owns and operates Starbucksoutlets in India. The outlets are
branded Starbucks "A Tata Alliance".Starbucks, through an agreement with Tata Coffee,
serves coffee that is100% locally sourced and roasted.

History

India's first Starbucks outlet in Elphinstone Building, Horniman Circle, Mumbai.

In January 2011, Starbucks Corporation and Tata Coffee, Asia's largest coffee plantation
company, announced plans for a strategic alliance to bring Starbucks to India and also to
source and roast coffee beans at Tata Coffee's Kodagu facility. Despite a false start in
2007, in January 2012 Starbucks finally announced a 50:50 joint venture with Tata Global
Beverages, called Tata Starbucks Ltd., which would own and operate outlets branded
Starbucks "A Tata Alliance" . Starbucks had previously attempted
to enter the Indian market, in 2007, with a joint venture involving its Indonesian franchise
and Kishore Biyani of the Future Group. However, the joint venture withdrew its foreign
26
 investment proposal with the Indian government. Starbucks did not cite any reason for the
withdrawal .

On 19 October 2012, Starbucks opened its first store in India, measuring4500 sq ft in

Elphinstone Building, Horniman Circle, Mumbai. Starbucks expanded its presence to Delhi
on 24 January 2013 by opening 2 outlets at Terminal III of the Indira Gandhi International
Airport, and later one in Connaught Place. In early 2013, Tata Global Beverages announced
that the JV would meet its target of opening 50 outlets of the world's largest coffee chain in
India by this year, one year later than originally scheduled, with an investment of Rs4
billion(US$68 million) Initially, Starbucks opened a combination of standalone outlets
located at malls, airports and metro stations, and commercial complexes. The company
plans to expand its retail footprint in India by opening outlets in hospitals, near gyms or
health stores, educational institutions and corporate campuses. similar to the strategy
employed by competitor Cafe Coffee Day. The company also plans to avoid hypermarkets,
as it would
impact the positioning of the brand. The decision to open outlets inside Tata-owned retail
stores and properties would depend on the brand's premium positioning
.
The third city of India to get a Starbucks outlet was Pune, where the company opened an
outlet off North Main Road at Koregaon Park, on 8 September 2013. Starbucks opened a
3,000-square-foot flagship store opposite Raheja Arcade, 7th Block, Koramangala,
Bangalore on 22 November
2013, making it the fourth city to have an outlet

Products
Apart from the usual products offered internationally, Starbucks in India has some Indian
style product offerings such as Tandoori Paneer Roll, Elaichi Mawa Croissant, Murg Tikka
Panini and Chai Tea Latte to suit Indian customers and Free Wi-Fi is available at all
Starbucks stores.
OVERALL OUTLETS STARBUCKS IN INDIA
As of January 2022, Starbucks operates 252 outlets in 28 cities of India ,as shown in given table

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State/Region City No. of Outlets First outlet

Assam Guwahati 4 5 January 2022

Odisha Bhubaneswar 2 5 January 2022

New Delhi 26 24 January 2013

Delhi Gurgaon 7 10 July 2013

Noida 7 15 February 2016

Mumbai 46 19 October 2012

Pune 12 8 September 2013

Maharashtra
Nashik 2 28 December 2021

Nagpur 1 9 April 2022

Karnataka Bangalore 27 22 November 2013

Tamil Nadu Chennai 12 8 July 2014

Telangana Hyderabad 10 1 October 2014

Kolkata 7 21 March 2018

West Bengal
Siliguri 1 24 December 2021

Chandigarh Chandigarh 4 19 October 2018

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 Zirakpur 1 13 July 2020

Amritsar 2 22 October 2020

Punjab
Ludhiana 1 21 November 2020

Jalandhar 1 27 May 2022

Ahmedabad 6 8 August 2019

Surat 4 8 August 2019

Gujarat Vadodara 2 15 December 2019

Statue of Unity 1

Vapi 1 15 August 2021

Lucknow 5 2 August 2020

Uttar Pradesh
Kanpur 1 25 March 2021

Kochi 2 28 October 2020

Kerala
Thiruvananthapuram 1 16 December 2021

Bhopal 2 25 January 2021

Madhya Pradesh
Indore 2 3 February 2021

Rajasthan Jaipur 3 5 August 2021

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 Objective of company
“to maintain Starbucks standing as one of the most recognized and respected brands in the
world.”
“to be the leading retailer and brand of coffee in each of our target markets by selling the
finest quality coffee and related products, and by providing each customer a unique Starbucks
Experience. “

Mission Statement
Our mission: to inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time.
Here are the principles of how we live that every day:
Our Coffee
It has always been, and will always be, about quality. We’re passionate about ethically sourcing
the finest coffee beans, roasting them with great care and improving the lives of people who
grow them. We care deeply about all of this; our work is never done.

Our Partners
We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace
diversity to create a place where each of us can be ourselves. We always treat each other with
respect and dignity. And we hold each other to that standard.
Our Customers
When we are fully engaged, we connect with, laugh with and uplift the lives of our customers –
even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but
our work goes far beyond that. It’s really about human connection.

Our Stores
When our customers feel this sense of belonging, our stores become a haven, a break from the
worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of
life – sometimes slow and savored, sometimes faster.

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 SStarbucks Sustainable
development commitment
Sustainable design and build methodologies are part of our DNA. WEbelieve a
coffeehouse should be a place to find connection. We believe it should fit seamlessly
within its neighbourhood. And we believe its environmental impact should be as
minimal as possible.
Our store designs are rooted in our coffee heritage, and in our Starbuck Shared Planet
community involvement and environmental stewardship goals.
So our designs reflect the character of a store’s surrounding neighbourhood and help
reduce environmental impacts. As our stores are built and renovated, we will source
materials and employ craftsmen on a local basis and incorporate reused and recycled
elements where possible. To guide our efforts, we’re using the US Green Building
Council’s LEED certification programme as a benchmark for success. (LEED® is short
for Leadership in Energy and Environmental Design.)
 We aim to achieve LEED® certification globally for all new, company-
owned stores beginning in late 2010.
Each new and renovated store uses one of four design concepts. We invite
you to explore them:
 Heritage coffeehouses reflect the mercantile roots of our first
store in Seattle’s historic Pike Place Market with worn wood,
stained concrete or tiled floors, metal stools and factory-inspired
lighting. Large community tables, club chairs and wooden blinds
evoke a turn-of-the-last-century feeling.
 Artisan stores echo the industrial past of urban markets, taking
inspiration from the Modernism of the 1930s. This motif celebrates
simple materials like exposed steel beams, masonry walls, factory
casement glass and hand-polished woodwork in a creative gathering
place for culture and the arts.
 Regional Modern embodies a trend-setting style that is comfortable
and welcoming. We use bright, loft-like, light-filled spaces punctuated with regionally
inspired furniture and culturally relevant fabrics to create a calm and contemporary respite
from the clamour of the fast-paced world.

 Concept stores are unique environments created by our designers to

31
explore innovations within the coffeehouse. We call them our “design sandboxes”. That
sense of exploration is extended to everyone who visits, through daily coffee and tea
cuppings, artistic events and community gatherings .

 Starbucks will work to meet its 2030 target of carbon neutral green coffee,
reducing greenhouse gas (GHG) emissions in coffee at Origin then compensating
for any remaining emissions.

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 Our Neighborhood
Every store is part of a community, and we take our responsibility to be good neighbors
seriously. We want to be invited in wherever we do business. We can be a force for positive
action – bringing together our partners, customers and the community to contribute every day.
Now we see that our responsibility – and our potential for good – is even larger. The world is
looking to Starbucks to set the new standard, yet again. We will lead.

 Our Shareholders
We know that as we deliver in each of these areas, we enjoy the kind of success that rewards our
shareholders. We are fully accountable to get each of these elements right so that Starbucks –
and everyone it touches – can endure and thrive.

 Environmental Mission Statement

Starbucks is committed to a role of environmental leadership in all facets of our business.
We fulfill this mission by a commitment to:
 Understanding of environmental issues and sharing information with our partners.

 Developing innovative and flexible solutions to bring about change.

 Recognising that financial responsibility is essential to our environmental future.

 Instilling environmental responsibility as a corporate value.

 Measuring and monitoring our progress for each project

 Encouraging all partners to share in our mission

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Starbucks' 5 core principles for success
In summary, the five core success principles used by Starbucks described in the book are:
1. Make it your own Starbucks "partners" (employees) think about customer service in a way
that allows each of them to connect with their customers on a very personal level. According to
Starbucks chairman, Howard Schultz, "We are not in the coffee business serving people; we are
in the people business serving coffee."
2. Everything matters Paying attention to absolutely every detail gives Starbucks a competitive
advantage because it builds loyalty among patrons. "Managers have to constantly put themselves
in the shoes of their customers, seeing everything from the other side of the counter," explained
Michelle.
3. Surprise and delight Starbucks insists that it is critical to deliver consistent product and
service to delight customers. But on top of consistent quality, Starbucks' partners look for ways
to surprise and engage consumers in a process of discovery. In an example of the importance of
surprise, Starbucks gave out free cups of Calm tea April 15 in anticipation that their customers
would be frazzled by their federal income tax deadline.
4. Embrace resistance Starbucks encounters many forms of resistance from communities,
international organizations, and at times, customers. Both at the leadership and front-line levels,
Starbucks has benefited from criticism and used it to become stronger and better able to meet the
needs of those who share their input.
5. Leave your mark People want to do business with and work for companies that are socially
conscientious. In addition to its corporate philanthropy and grant-giving program, Starbucks
encourages employees to be more involved in their community by matching cash contributions
in support of their local efforts. Furthermore, Starbucks leadership makes business decisions in
accord with their own social values.

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 Starbucks Foundation

The aim of establishing the Starbucks Foundation was to promote our social commitment.
We started in 1997 with the funding of literacy programs in the USA and Canada. Today we
support on a variety of ways communities around the world:
▪ Promoting young leadership talent
Young people with their fresh ideas and their zest can make valuable contributions in their
communities. With the financial support of Starbucks Shared Planet Youth Action Grants youths
are helped in their efforts to move into the world something.
▪ Assistance to municipalities in our coffee, tea and cocoa growing regions
Starbucks supports social development projects in the communities where our coffee, tea and
cocoa is grown. Such projects have z. B. to the objective of improving the education and
agricultural training to provide microfinance and micro credit to promote the protection of
species or to improve the health and nutrition and water and sanitation.
▪ Access to clean water
Ethos (R) Water began as a social venture start up with the aim of people in developing countries
access to clean water to give. From each bottle sold in the US Ethos (R) Water ™ go 5 cents to
the Ethos (R) Water Fund to help finance sustainable water programs throughout the world.
Thanks to our esteemed clientele we have so far been forward about 6 million dollars.

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 ▪ Promote education in China
2005 called the Starbucks Coffee Company in collaboration with Give2Asia and as part of its
ongoing commitment to social concerns and in recognition of the role played by education in
China has always been, the Starbucks China Education Project launched with 5 million dollars
(40 million RMB) was equipped to support education programs in China.
▪ Reconstruction of the coast of the Gulf of Mexico
Starbucks and the Starbucks Foundation directed the COAST Fund to help in the restoration and
revitalization of the US towns on the Gulf of Mexico, which were badly damaged by the
hurricanes Rita and Katrina

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 Starbucks Coffee’s
Marketing Mix (5Ps)
Analysis

Starbucks Coffee Company’s marketing mix (5Ps) supports the company’s industry position
as the leading coffeehouse chain in the world. The marketing mix identifies the main
components of the firm’s marketing plan. Starbucks uses its marketing mix as a way of
developing its brand image and popularity. With the strongest brand in the industry, the company
shows how an effective marketing mix supports brand development and business growth.
Starbucks also changes its marketing mix over time, thereby emphasizing the need for the
business to evolve its various aspects to maintain competitiveness.
Starbucks Coffee’s marketing mix (5Ps) indicates the importance of this marketing tool as a way
of ensuring that the firm promotes the right products at the right prices and places.

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 Starbucks Coffee’s Products

Starbucks continues to innovate its product mix to capture more of the market. This component
of the marketing mix focuses on what the business offers to customers. At present, the following
are the main categories of Starbucks products:
▪ Coffee

▪ Tea

▪ Pastries

▪ Frappuccino beverages

▪ Smoothies

▪ Merchandise (mugs, instant coffee, etc.)

This product mix is a result of years of business innovation. For instance, Starbucks added the
Frappuccino line after it acquired The Coffee Connection in 1994. The company also has an
ongoing product innovation process that aims to offer new products to attract and keep more
customers. Thus, this part of Starbucks’ marketing mix involves beverages, food, and
merchandise.

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 Place in Starbucks Coffee’s
Marketing Mix
The company offers most of its products through Starbucks cafés. This component of
the marketing mix determines the venues at which customers can access the products.
In Starbucks Coffee’s case, the following are the main places used for the distribution of
products:
1. Cafés

2. Online Store

3. Starbucks App

4. Retailers

Originally, the firm sold its products through Starbucks cafés. Through the Internet, the
company now offers some of its products through the online Starbucks Store. Also, the
firm now sells some merchandise through retailers. In addition, the company uses the
Starbucks App to allow customers to place their orders. This part of Starbucks’
marketing mix shows how the firm adapts to changing times, technologies, and market
conditions.

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 Starbucks Coffee’s Promotions
Starbucks promotes its products mainly through advertising. This component of the
marketing mix refers to the communication strategies used to disseminate information
about the firm and its products. Starbucks’ promotional mix is as follows:
 Advertising

 Public relations

 Sales promotions

The company advertises its products through television, print media and the Internet. The
company infrequently uses public relations, which has not always been successful for the
business. For example, Starbucks’ Race Together public relations campaign was widely
criticized. In addition, the firm uses sales promotions, such as the Starbucks Card that
customers can use to get freebies. This part of Starbucks’ marketing shows the core
significance of advertising, and the supporting roles of public relations and sales promotions
for the company.

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 Starbucks Coffee’s Prices and Pricing Strategy
Starbucks uses a premium pricing strategy. This pricing strategy takes advantage of the
behavioural tendency of people to purchase more expensive products on the basis of
the perceived correlation between high price and high value. The company’s coffee
products are more expensive than most competing products, such as McDonald’s
Premium Roast. Through this pricing strategy, the company maintains its high-end
specialty image. This part of Starbucks Coffee’s marketing mix directly relates with the
firm’s generic strategy, thereby helping the business maintain its premium brand image.

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 Starbucks Coffee’s PEOPLE Strategy

Towards Customer
 Meet your customers where they want to be met
 Think mobile, mobile, mobile!
 Focus on personalization

Towards Employee
 Free Tuition
 Free Starbucks Stock
 Free coffee

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 Starbucks
SWOT analysis

Strengths
• Starbucks Corporation is a very profitable organization, earning in excess of $600 million in
2004.The company generated revenue of more than $5000 million in the same year.

• It is a global coffee brand built upon a reputation for fine products and services. It has almost
9000 cafes in almost 40 countries.

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• Starbucks was one of the Fortune Top 100 Companies to Work For in 2005. The company is a
respected employer that values its workforce.

• The organization has strong ethical values and an ethical mission statement as follows,
'Starbucks is committed to a role of environmental leadership in all facets of our business.'

Weaknesses
• Starbucks has a reputation for new product development and creativity. However, they remain
vulnerable to the possibility that their innovation may falter over time.

• The organization has a strong presence in the United States of America with more than three
quarters of their cafes located in the home market. It is often argued that they need to look for a
portfolio of countries, in order to spread business risk.

• The organization is dependent on a main competitive advantage, the retail of coffee. This could
make them slow to diversify into other sectors should the need arise.

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 Opportunities
• Starbucks are very good at taking advantage of opportunities.

• In 2004 the company created a CD-burning service in their Santa Monica (California USA)
cafe with Hewlett Packard, where customers create their own music CD.

• The company has the opportunity to expand its global operations. New markets for coffee such
as India and the Pacific Rim nations are beginning to emerge.

• Co-branding with other manufacturers of food and drink, and brand franchising to
manufacturers of other goods and services both have potential.

Threats
• Who knows if the market for coffee will grow and stay in favour with customers, or whether
another type of beverage or leisure activity will replace coffee in the future?

• Starbucks are exposed to rises in the cost of coffee and dairy products.

• Since its conception in Pike Place Market, Seattle in 1971, Starbucks' success has lead to the
market entry of many competitors and copycat brands that pose potential threats.

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 RECOMMENDATIONS
For STARBUCKS CORPORATION
The industry environment of Starbucks involves diverse challenges, especially
because of the company’s moderate diversification. The coffeehouse chain business
faces issues such as competition, imitation, and social trends that oppose
international players in local markets. Based on the current condition of the business,
some of the most notable strategic management concerns enumerated in this SWOT
analysis of Starbucks Coffee Company are the imitability of products and the
corresponding threat of imitation, the threat of competition involving low-cost sellers,
and independent coffeehouse movements.

A recommendation to protect Starbucks’s business against imitation is to aggressively

innovate, especially in the area of product development. Innovation can make the
company’s products more difficult to imitate. It is also recommended that Starbucks
Corporation consider pricing strategies that attract more customers. For instance,
bundle pricing can help address the threat of competition involving low-cost sellers.
Furthermore, a suitable recommendation in this case is to implement creative
marketing and branding strategies that build Starbucks’s corporate image as a
contributor to community development. Such an image can help reduce sociocultural
opposition against the company’s expansion. These recommendations focus on
minimizing the negative impacts of the internal and external factors enumerated in
this SWOT analysis.

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 CONCLUSION
Starbucks is a leading company around the globe. Starbucks used а very simple strategy,

"connecting links between treating employees with dignity and respect and producing а good

product and services." That was the major factors that differentiate Starbucks from others and

bring the successful to Starbucks. Starbucks broad its business with the help of established

strategies of it positioned itself in the market. But every product has a life cycle, when it reaches

its maturity it will tend to decline, position of Starbucks is also not different. It's time to relocate

their market and coordinate their strategies.

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 BIBLIOGRAPHY

a. https://en.wikipedia.org/wiki/Starbuck

b. https://en.wikipedia.org/wiki/Starbuck

c. www.starbucks.com

d. starbucksmelody.com/2014/10/26/mini-starbucks-library/

e. WWW.google.com

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