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SRIJU NAIrROLL NUMBER – B20

BATCH 2013-15Enjoy the authentic Starbucks experience with the promise of high quality coffee & handcrafted

beverages in your city.

We share our 40 years of coffee passion with you

TATA STARBUCKS first kiosks in PUNE

Coffee kiosk market

Company operated stores

Licensed stores

Other channel development

Starbucks focus on growing its retail specialty coffee business internally through Kiosks, and mail order loyalty programs

Coffee Kiosks: (beverage retailers without seating) 2,700 locations averaging $300,000 in annual sales = $ .81 billion

Revenues will grow by about 20% annually and Net earnings by 20-25% annually for the next three to five years

Starbucks market

India the 5th largest producer of coffee in market with coffee consumption of 75000 tonnes.

Comparative Analysis

STARBUCKS CCD BARISTA

DEMOGRAPHIC age group 25- 40(49%) , 18-24 (40% )

Age group 15-29 yr Age group 25-40yr

GEOGRAPHIC Upscale locations, corporate offices

Tier I and II cities , highways , corporate offices , campus

Tier I and II cities

• Starbucks focuses on two different market segments, The commuters and Captive Consumers. For the commuters, Starbucks has the Drive-thru coffee houses. For the captive consumer, Starbucks has the mobile café.

• Commuters are defined as any one in a motorized vehicle traveling from point “A” to point “B”. Starbucks greatest concentration is on commuters heading to or from work, or those out on their lunch breaks.

• Captive Consumers would include those who are stuck in a campus environment or in a restricted entry environment that does not allow free movement to and from. Examples are: high school, college campuses, corporate campuses and special events.

TARGET MARKET SEGMENT

Comparative Analysis

strength

threats

•Customers are satisfied with the quality and taste of Coffee.• High brand equity.•Operating in 61 countries worldwide•Low pricing strategy in India

Strength

•Market penetration in Internationalcountries•Co-branding with other food manufactures• India -coffee consumption grow by 6 % •website to the store by ordering online and picking it up at the store.

opportunities

•Pricing are higher as compared to the competitors.• High operating cost•The business profits are highly dependent on coffee product•Less coverage

•Numbers of competitors are increasing, like Barista, Café coffee Day, Gloria jeans coffee.•People started to become more health conscious•Starbucks facing huge resistance in international countries over cultural and political issues

weakness Threats

“To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time”

Business overview strategies

•As of November 16, 2012, Starbucks is present in 61 countries & territories.•Starbucks holds 73% of the market share for coffee in the U.S and 35 % globally.• Strong working relations with the Tata Group could also be the key to achieving lower costs and probably Starbucks might even be able to match the prices offered by its local competitors likeCafé Coffee day , Barista •International competitors –

Died rich Coffee Inc.Caribou Coffee Inc.

Dunkin’ Brands IncMcDonald's

•Contribution positively to community and environment•Outlets according to the culture•Free Wi-Fi for all customers•Apply highest standards of coffee•Provide a relaxing, attractive social atmosphere•Starbucks use Retail stores, Online mail order•Maximize market penetration•Use more licensing and franchizing• High Promotion using social media advertising with discount rates and gift vouchers.

•Accessibility•Personalized approach•Brand familiarity•Coffee variety ,quality

and perfect price range

Tough competition to its competitors by satisfying customers with great café

experience

Starbucks 1st Kiosk -Pune

CONCLUSION

Get the heart of youngster and the one who is young at heart by satisfying them

Target people of location of upgrade market and busy areas of premium

people , foreigners and working professional and provide “Value for

Money”

Location- Mall , IT industries , BPO , Colleges , Airport and transport stations