Barkha_starbucks case study for seminars

Barkha_starbucks case study for seminars

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  1 SHEET NO SIGN ASSIGNMENT TOPIC: CASE STUDY OF A SUCCESSFUL COMPANY/BRAND IN MARKET STARBUCKS FOUNDATION COURSE AR. BARKHA KASHILANI 3 rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR
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  2 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN INTRODUCTION HISTORY: FOUNDATION COURSE • Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington • The first Starbucks opened in 1971 in Seattle’s Pike Place Market. • The name, inspired by Moby Dick, evoked the romance of the high seas and the seafaring tradition of the early coffee traders. • In 1981, Howard Schultz, CEO of Starbucks had first walked into a Starbucks store. • Howard was drawn into Starbucks and joined a year later. • Currently the world' largest coffeehouse chain. • As of November 2022, the company had 35,711 stores in 80 countries, 15,873 of which were located in the United States. Of Starbucks' U.S.- based stores, over 8,900 are company-operated, while the remainder are licensed. Fig 1 – First Starbucks coffee house https://www.theguardian.com/cities/2015/may/14 /the-first-starbucks-coffee-shop-seattle-a-history- of-cities-in-50-buildings-day-36 STARBUCKS - INTRODUCTION
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  3 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE “ To inspire and nurture the human spirit — one person, one cup, and one neighborhood at a time.” MISSION AND VALUES MISSION STATEMENT: “To establish Starbucks as the premier purveyour of the finest coffee in the world, while maintaining our uncompromising principles while we grow” VISION STATEMENT: STARBUCKS VALUES: • Creating a culture of warmth and belonging, where everyone is welcome; • Acting with courage, challenging the status quo, and finding new ways to grow our company and each other; • Being present, connecting with transparency, dignity, and respect; • Delivering our very best in all we do, holding ourselves accountable for results. HOW TO CATER TO ITS TARGET AUDIENCE: Its all in the experience. How one place makes you feel. STARBUCKS – MISSION AND VALUES
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  • Regular and decaffeinatedcoffee drinks • Espresso brews • Icy mixed drinks DRINKS (60% ) • Baked meals • Oatmeals and salads • Breakfast and lunch sandwiches FOOD (18%) • Ready brew solvable coffees • Starbucks coffee and tazo • Starbucks refreshers TM drinks CONSUMER PACKAGED GOODS (8%) • Travel mugs • Hot cup thermos • Reusable cold mugs • Water bottles • Coffee machines • Teapots and kettles MERCHANDISE (14%) 4 AR. BARKHA KASHILANI 3 rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE VALUES PRODUCTS OFFERED: • Innovation: Starbucks constantly designs innovative products for its customers; • Quality: It uses only high-quality beans and trained roasters to work on them; • Convenience: Customers can order products through Starbucks’ app, avoiding lines at the stores; • Variety: It offers 30 blends of coffee and a wide range of sandwiches, pastries, tea, smoothies, salads, etc.; • Brand: Starbucks has a powerful and awarded brand, seen as a synonym of quality. STARBUCKS’ VALUE PROPOSITIONS STARBUCKS – PRODUCTS AND VALUES
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  5 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE MARKETING STRATEGY AND BRANDING 1. CONSISTENCY IN BRANDING: • Over the course of 47 years, the Starbucks logo alone has gone through four different redesigns to create the iconic symbol that graces your coffee cup today. • By operating in 55 different countries, they needed a brand design that would appeal to a broad audience base. • That clean, modern design philosophy extends to everything they create. • Key to bringing them back to your organization and creating brand advocates out of your customers. • The experience one have with Starbucks always feels constant 2. TECHNOLOGY: • After identifying the smartphone revolution early on, the company launched its first mobile app in 2009. • Then, in 2011, rolled out its beloved in-app payment feature. But by 2014, the game changed: Starbucks created mobile order ahead, prepay, and pickup • No queue, no wait time. • People adored the effortless convenience. KEY TAKEAWAYS: STARBUCKS – MARKETING AND BRANDING
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  6 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE MARKETING STRATEGY AND BRANDING 3. REBRANDING DUE TO LOW SALES: • While transactions increased, the “third place,” the very notion behind Starbucks’ existence, began to slip • In 2019 alone, to-go orders represented 80% of transactions, mobile orders contributed 31 % of total orders. • Leading into 2020, company executives hinted at plans to “reinvent” or “reimagine” the “third place” concept. • Starbucks was in an identity crisis. • Starbucks hoped to use digital technology to augment the feeling of connection. • The app began collecting data about individual customer preferences and purchasing behaviors to craft unique discount offers later. Additionally, when a customer picks up a mobile order, the app highlights the music playing in the store. THE KEY TO ANY EFFECTIVE CUSTOMER EXPERIENCE? • These seemingly small personalized touches make for a holistic brand interaction that bridges the online and physical experience KEY TAKEAWAYS: THE THIRD PLACE CONCEPT • Creating this unique & relaxing “experience” & “atmosphere” for people to go between home & work. Very important for the company. • Connects with the customers very strongly. STARBUCKS – MARKETING AND BRANDING
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  7 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE SOCIAL MEDIA IMPACT • The photo is bright, modern, clean, and reflective of the Starbucks brand. The language in the post describes their new espresso shot in the same way that they would if they were chatting with a customer in the store, short, sweet, and to the point. INSTAGRAM WEB PAGE • Here one can fine why Starbucks has brought particular product and their detais. • They also help cater to their audience and show different recipes that their customers can order to try the new shot. • Once again, imagery, colors, and even language match the same style and tone as the Instagram post that we started with. • When you enter the store, you’ll also see it branded to promote their new coffee: YOUTUBE STORE BRANDING • Consistent messaging, imagery, and branding is key to delivering a lasting message to your customers. • From first touch to final purchase, the experience is consistent. STARBUCKS – SOCIAL MEDIA
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  8 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE THE FOUR ‘P’ OF MARKETING • High quality product to get their target audience to justify buying it. • Paying for premium coffee which means it needs to taste better than the same iced macchiato that you could get at a McDonald’s drive- through for less. • barista promise, that if you don’t like your drink, they’ll fix it. • Starbucks sells their coffee at a premium price, or at least 25% higher than value brands. • In 1990, only three percent of the coffee sold in the United States was sold at premium prices. By 2000, that number rose to 40% in what the Harvard Business Review calls, “The Starbucks Effect.” • Read anything about Starbucks, and they’ll probably mention the idea of “the third place.” • Their efforts to create a space where people want to come and hang out and relax. They do this by creating a similar environment in every Starbucks location. • Starbucks uses a large variety of channels to market their product from social media to TV spots and ads. • It’s their mix of marketing media that makes their brand recognizable, and it’s the consistent message that comes across every time that makes them stand out. 1. PRODUCT 2. PRICE 3. PROMOTION 4. PLACE STARBUCKS – MARKETING STRATEGY
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  • Unique logo •Drink size names • Brewing equipment • Music CDs • Merchandising PRODUCT BRANDING • High service quality • Environment/attitude • Brochure • Education SERVICE QUALITY • Committed to catering the communities it serves. • Mindful of the environment. • Investment in farmers. CORPORATE SOCIAL RESPONSIBILITIES 9 AR. BARKHA KASHILANI 3 rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE WHAT STARBUCKS IS DOING DIFFERENT • Gift cards • Reward cards • Birthday rewards • Iphone and android apps STAYING MODERN • Helping people connect • Free WIFI • In-store music • Sociable atmosphere • Large tables to accommodate groups STAYING ON TOP • Pay with app. • Barista education • 87000 drink combinations • 30 minutes delivery • 220 customers/hour STANDING OUT STARBUCKS – MARKETING STRATEGY
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  10 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE STARBUCKS SWOT ANALYSIS UNIQUE STRATEGY ADOPTED BY STARBUCKS To capture key locations and open stores in close proximity to each other is unique strategy for Starbucks  Ensure that licensed store that don’t meet set achievements are closed down.  Clustering its stores in one area helped Starbucks quickly achieve market dominance. With over 20 million regular customer per week.  Spends less than 1% of its annual revenues on advertising. Starbucks strategy relied on word of mouth advertising.  Engaging in smart joint ventures with the right companies such as - Pepsi – Cola Co and introducting new food and beverages products with them. At the end of the day, Starbucks isn’t just a coffee shop—it’s an empire. Sure, it has its challenges and weaknesses, and there’s always room for improvement. But Starbucks has brewed its way to the top and effectively left many competitors in its wake over the years. It’s a masterclass in market domination. STARBUCKS – SWOT ANALYSIS
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  11 AR. BARKHA KASHILANI 3rd SEM, M.ARCH(LANDSCAPE) SESSION – 2023-2024 P.I.A.D.S, NAGPUR SHEET NO SIGN FOUNDATION COURSE STARBUCKS MARKET SHARE MARKET SHARE IN INDIA BY 2023 60 100 150 155 200 248 321 350 572 0 100 200 300 400 500 600 700 Blue Tokai Costa Coffee Third Wave Coffee Hatti Kappi Slay McCafe Starbucks Barista Café Coffee Day No.of stores STARBUCKS – MARKET SHARE