References:

1. Starbucks Wiki Page: https://en.wikipedia.org/wiki/Starbucks

2. Starbucks in India Wiki Page: https://en.wikipedia.org/wiki/Tata_Starbucks

3. Interviews and news articles:

• http://everythingexperiential.businessworld.in/article/We-need-to-look-at-marketing-as-an-
experience-rather-than-a-transaction-Deepa-Krishnan-Starbucks-India/05-03-2020-185596/
(March 2020)
• https://www.indiatoday.in/education-today/featurephilia/story/meet-starbucks-marketing-
brain-growth-india-963235-2017-03-01 (January 2018)
• https://brandequity.economictimes.indiatimes.com/news/marketing/for-starbucks-india-it-
is-all-about-creating-the-third-place-experience/56140266 (December 2016)
4. https://stories.starbucks.com/stories/2012/starbucks-announces-beverage-innovation-
using-green-coffee-extract-with-sta/

5. Starbucks India menu (without prices): https://www.starbucks.in/menu-list

6. Starbucks CP, New Delhi menu: https://magicpin.in/New-Delhi/Connaught-Place-

(Cp)/Restaurant/Starbucks/store/1217/menu/

7. Starbucks Corporation’s Marketing Mix (4Ps) Analysis (2019): http://panmore.com/starbucks-

coffee-marketing-mix-4ps-analysis

8. Starbucks India Marketing Strategy (2016):

https://www.slideshare.net/Rjrockzcool/starbucks-india-marketing-strategy

9. Entry of Starbucks in Indian Market (2016):

https://www.researchgate.net/publication/316600552_Case_Study-
_Entry_of_Starbucks_in_Indian_Market

10. Starbucks Marketing Analysis (2015): https://www.semanticscholar.org/paper/Starbucks-

Marketing-Analysis-Katerina/1d21b5743764f3196cddcb95925059695dad6eeb

11. Strategic Marketing: A Case Study of Starbucks (2015):

https://www.slideshare.net/YeeJieNg/bumkt6923grouppresentation

12. Strategic Analysis of Starbucks Corporation (2014):

https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf

13. Other links:

• http://science.knote.com/2014/10/28/starbucks-productivity-secrets/
• http://panmore.com/starbucks-coffee-operations-management-10-decisions-areas-
productivity

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• https://www.businessinsider.in/retail/5-ways-Starbucks-entices-you-to-spend-more-
money/articleshow/46239542.cms
• https://www.business-standard.com/article/companies/starbucks-steps-up-its-india-game-
116020301281_1.html

Questions on product:
Q1: What is Starbucks’ core product?
A1: Starbucks' core product is coffee beverages.

Q2: What are Starbucks’ actual and augmented products?

A2: Starbucks' actual product includes a variety of coffee beverages, pastries, sandwiches, and
merchandise like mugs and tumblers. Its augmented product involves the overall Starbucks
experience, including ambiance, customer service, and loyalty programs like Starbucks
Rewards.

Q3: What are the various product categories that Starbucks offers?
A3: Starbucks offers a range of product categories, including coffee beverages (hot and cold),
teas, pastries, sandwiches, salads, snacks, and merchandise such as mugs, tumblers, and
coffee brewing equipment.

Q4: How has Starbucks adapted its product offering to suit the Indian market?
A4: Starbucks has adapted its product offering in India by incorporating locally relevant flavors
and ingredients into its menu. For example, it offers beverages like the "Signature Espresso
Fusion" and "Teavana Oprah Chai Tea" to cater to Indian tastes.

Q5: How has Starbucks introduced healthy products in its range?

A5: Starbucks has introduced healthy products in its range by offering options such as reduced-
fat pastries, protein boxes with fruits and nuts, yogurt parfaits, and beverages like Teavana teas
and Refreshers which are lower in calories.

Q6: Mention an innovation by Starbucks with regard to an existing product.

A6: One innovation by Starbucks with regard to an existing product is the introduction of Nitro
Cold Brew, which infuses nitrogen gas into cold brew coffee, resulting in a creamy texture and
frothy head, enhancing the coffee drinking experience.

Q7: What are some partnerships that Starbucks has entered into, from the product perspective?

A7: Starbucks has entered into partnerships with various companies for product offerings. For
instance, it has collaborated with Nestlé to produce Starbucks-branded coffee products for home
consumption, and with PepsiCo for bottled Starbucks beverages. Additionally, it has partnerships
with various food suppliers for its pastries, sandwiches, and other food offerings

Questions on price:

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Q1: What is the most expensive coffee that the Starbucks in Connaught Place, New Delhi (CP) sells?
A1: Hazelnut Dutch Truffle Frappuccino

Q2: What is the least expensive coffee that Starbucks in Connaught Place, New Delhi (CP) sells?
A2: Caffe Americano
Q3: Which of the following pricing strategies does Starbucks follow? Justify your answer.
● Economy pricing strategy
● Penetration pricing strategy
● Skimming pricing strategy
● Premium pricing strategy

A3: tarbucks primarily follows a premium pricing strategy. This strategy involves pricing
products higher than competitors to signify superior quality, exclusivity, and to support a strong
brand image. Starbucks positions itself as a premium coffee experience, offering high-quality
coffee beverages, comfortable ambiance, and excellent customer service. The use of premium
pricing aligns with Starbucks' emphasis on providing a premium coffeehouse experience rather
than competing solely on price.

Questions on place
Q1: How many cities in India have at least one Starbucks store?
A1: 54
Q2: What is the total number of Starbucks stores in India?
A2: 1000
Q3: Which cities in India tend to have a Starbucks store? Why?
A3: Starbucks tends to focus on metropolitan cities and urban centers with high foot traffic and a
significant consumer base.

Q4: Mention an innovation by Starbucks with regard to its store strategy.

A4: Starbucks has experimented with various formats and designs to cater to different consumer
preferences and market dynamics. One notable innovation is the introduction of Starbucks
Reserve stores, which offer a premium coffee experience with small-lot Reserve coffees,

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immersive coffee bars, and elevated design elements. These stores provide customers with an
opportunity to explore rare and exclusive coffee varieties in a unique and upscale environment.

Q5: What are some partnerships that Starbucks has entered, from the place perspective?
A5: From a place perspective, Starbucks has entered partnerships with various locations to
expand its presence. For example, it has established stores within airports, shopping malls,
office complexes, and college campuses through collaborations with relevant stakeholders such
as airport authorities, mall management companies, and educational institutions. These
partnerships enable Starbucks to reach a broader audience and enhance its accessibility to
consumers in diverse settings.

Questions on promotion
Q1: What is Starbucks’ primary means of promotion?

A1: Starbucks' primary means of promotion encompasses a mix of advertising, digital marketing,
and experiential marketing. This includes traditional advertising channels such as television,
print media, and outdoor advertising to reach a broad audience. Additionally, Starbucks
leverages digital platforms and social media channels for targeted marketing, engaging with
customers, sharing promotional offers, and creating interactive content. The company also
organizes experiential marketing events, such as coffee tastings, community gatherings, and
seasonal promotions, to enhance brand visibility and customer engagement. Overall, Starbucks
employs a comprehensive promotional strategy to effectively communicate its brand message
and attract customers to its stores.

Q2: How does Starbucks go about executing its primary means of promotion?
A2: Starbucks executes its primary means of promotion through a combination of advertising,
digital marketing, social media engagement, and experiential marketing. It invests in traditional
advertising channels such as television, print media, and outdoor advertising to reach a broad
audience. Additionally, Starbucks leverages digital platforms and social media channels to
engage with customers, share promotional offers, and create interactive content. The company
also organizes experiential marketing events, such as coffee tastings, community gatherings,
and seasonal promotions, to enhance brand visibility and customer engagement.

Q3: What does “Third Place” mean in the context of Starbucks’ marketing strategy?

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A3: In the context of Starbucks' marketing strategy, the term "Third Place" refers to the concept
of Starbucks stores serving as a social gathering place or community hub outside of home (first
place) and work (second place). Starbucks aims to create welcoming and comfortable
environments where customers can relax, socialize, work, or study while enjoying their favorite
coffee beverages. The Third Place concept emphasizes the role of Starbucks stores as more
than just a coffee shop but as a destination where people can connect, unwind, and experience
a sense of belonging.

Q4: What does “Fourth Place” mean in the context of Starbucks’ marketing strategy?
A4: "Fourth Place" is an extension of Starbucks' marketing strategy that builds upon the concept
of the Third Place. It refers to the idea of Starbucks stores becoming a preferred destination for
customers beyond their typical routine of home, work, and social settings. The Fourth Place
concept highlights Starbucks' ambition to establish a deeper emotional connection with
customers by providing them with a distinctive and enriching experience that transcends
traditional notions of retail or dining establishments. By positioning itself as a Fourth Place,
Starbucks aims to foster a sense of community, inspire creativity, and cultivate lasting
relationships with its customers.

Questions on people:
Q1: What are Starbucks’ primary target customer segments?
A1: Millennials and Generation Z.

Q2: What is the connection between Starbucks’ target customer segments and its choice of price and
place?
A2: Starbucks typically sets premium prices to reflect the quality of its products and the upscale
ambiance of its stores. This aligns with the preferences of its target customers, who are willing
to pay a premium for the Starbucks experience. In terms of place, Starbucks selects prime
locations in urban centers, shopping malls, office complexes, and other high-traffic areas
frequented by its target demographics. By strategically placing its stores in convenient and
accessible locations, Starbucks caters to the lifestyle and preferences of its target customers.

Q3: What are Starbucks employees called?

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A3: partners.
Q4: Mention an innovation by Starbucks with regard to its employee training.
A4: SCAP is a partnership with Arizona State University (ASU) that offers eligible U.S. Starbucks
partners (employees) the opportunity to earn a bachelor's degree with full tuition coverage
through ASU's online degree programs. This initiative not only supports employee development
and career advancement but also reinforces Starbucks' commitment to investing in its workforce
and promoting lifelong learning.

Questions on physical evidence:

Q1: How does the Starbucks store layout contribute to its marketing strategy?
A1: Atmosphere, Customer Experience.
Q2: What is the Starbucks logo?
A2: twin-tailed mermaid or siren, known as the "Siren Logo."
Q3: Has the Starbucks logo evolved over time?
A3: Yes
Q4: Can the Starbucks app be considered a part of physical evidence in the 7Ps framework? Justify
your answer.
A4: Yes, addition to providing digital services such as mobile ordering and payment, the
Starbucks app also serves as a tangible representation of the Starbucks brand experience. By
displaying the Starbucks logo, brand colors, and imagery, the app reinforces brand recognition
and consistency. Furthermore, the app often includes features such as store locators, menu
information, and rewards tracking, which complement the physical Starbucks store experience
and contribute to the overall customer perception of the brand.

Questions on process:
Q1: What is the process improvement philosophy that Starbucks adopted a decade ago to improve
its productivity?
A1: A decade ago, Starbucks adopted the Lean Six Sigma process improvement philosophy to
enhance its productivity. Lean Six Sigma is a methodology focused on eliminating waste,
reducing variation, and improving efficiency in business processes. By implementing Lean Six

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Sigma principles, Starbucks aimed to streamline operations, improve quality, and optimize
resource utilization across its stores.

Q2: What are some of the key metrics that Starbucks uses to measure in-store productivity?
A2: Sales per square foot, Transactions per hour, Customer satisfaction scores, Labor
productivity, Inventory turnover.

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