Presentation No.
TEAM: 8
SHANTAM – 24136 GAYATHRI – 24056
SAURABH – 24134 SASWAT – 24132
AMLAN – 24017 PRATIK – 24105
Overview
STARBUCKS- Personality
STARBUCKS demonstrates a “persona” that extends
well beyond their brand’s functional benefits.
Starbucks is outgoing, youthful, personable, and
friendly…a refreshing escape, freshness, warmth, and
comfort.
It is demonstrated through their service interactions,
their packaging, their décor, their product offerings,
and their corporate culture.
Personality Dimensions
Sophistication
Excitement
Sincerity
Brand Personality
Starbucks’ signature music cues a
multicultural personality … one that
doesn’t just fade into the background.
You hear it you’re aware of it.
Additionally, their merchandise drives
both their brand identity and the unique
flair.
‘Interesting Inviting Personable’
Brand Personality-
Role of COLOURS in
Logo
GREEN
Secure, Natural, easygoing, relaxing
WHITE
Goodness, Purity,
Refined,
Sophistication
Starbucks Brand
Positioning
Brand positioning is about
how we want target
customers to think about a
brand with respect to
competitors
Components of Brand
Positioning
Competitive frames of Reference
– Nature of Competition
– Target Market
Develop unique brand points-of-difference
(POD’s)
Establish shared brand points-of-parity(POP’s)
Brand mantras
– Short 3-to-5 word phrases that capture key POD’s & the
irrefutable essence or spirit of the brand.
Both ways Learning:
1. Knows their customer’s name and who they are
2. Knows their customer’s previous orders
3. Always is creating fresh and new ideas based on customer
feedback.
Technology
Starbucks opened Starbucks Reserve Roastery in Shanghai wherein it
offer consumers an immersive in-store augmented reality experience.
Tied up with Alibaba and involves a special smartphone app that
allows customers to walk around the 30,000-square-foot store and
roastery using AR features to view information, such as how a copper
roasting cask works.
The China Story
Sustainable Model of:
“Low Sales Volume;
High Profitability”
“Lifestyle Coffee
Drinking“
Need to maintain the
image of
“An Aspirational Brand”
Costa Coffee India Head: “Does not believe they need to offer Indian food,
rather Western food tailored for Indian pallets”
Failed in Australia-
Why?
People preferred Flat White and Australian Macchiato
No adaptive – Basic menu, Local taste and local pricing( Charged more than the
local café stores)
How did the Starbucks comeback?
Roastery
Change in target segment- Tourists , 9million tourist spent 30 billion
dollars (2017-18)
Seeds of the crisis in Starbucks
Transformation steps at Starbucks
STARBUCKS MAJOR
COMPETITION IN
INDIA
Starbucks
• Founded in 1971
• Howard Schultz- Chairman and CEO
• Tata Coffee – Tata Starbucks
• 84 outlets (May 2016)
• C.A.F.E Practices-ensuring quality
• Long purchase cycle
• Brand Positioning
The Coffee Shop Market in India
• Hot beverages – a part of Indian tradition
• Coffee took the first seat in south India
• To spread the drink – coffee shops emerged
• Indian ( RTD ) Domestic coffee market – INR 1100
crore
• Growth – 2250 crores by 2017
Market Share
“Know your enemy, know thyself, and you can fight a
hundred battles with no danger of defeat.
When you are ignorant of the enemy but know
yourself, your chance of winning and losing are
equal.
If you don’t know yourself ,you are bound to perish
in all battle...”
Sun Tse
“Those who win every battle are not really
skillful….
Those who render other’s armies helpless
without fighting are the best of all”
Sun Tse
LOVEMARKS
• Mystery • Intimacy
- logo - Passion
• Sensuality - Commitment
- physical environment
by Kevin Roberts
Segmentation, Targeting and Positioning
Parameters Starbucks CCD Dunkin Donuts
Segmentation People looking for Youngsters looking People looking to
coffee with to hangout with have western style
experience friends
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0gn/T/com.apple.Preview/com.apple.Preview. coffee
Targeting PasteboardItems/coffeewars-150904095456-
Upper middle class Youngsters – college Middle and Upper
lva1-app6892 (dragged).pd\ students and Middle class,
working families
professionals
Positioning Great Coffee. Great A place between A place offering
Service. office and home good quality and
fresh donuts along
with coffee
SupplyChainat CCD&Starbucks
Café Coffee Day Starbucks
• Assembling food at outlets • C.A.F.E Practices-ensuring quality
• 1497 outlets across 142 cities • 75 outlets
• Long purchase cycle.
• Vertically Integrated
• Tata Coffee – Tata Starbucks
• Short purchase cycle
• Zero Channel Distribution
Starbucks vs CoffeeDay
Competitive Advantage of
Starbucks
• Global, aspirational brand
• High Service Quality
• Receive Higher Price
• Landlords want Starbucks
• Tata-a strong partner
• Deep Pockets
Points of Difference
Quality: Exacting standards of quality
and flavor
Variety: Varied and exotic coffee
drinks
Customization: Over hundred
different coffee drinks
Experience: Rich and Sensory Aroma
and Ambience
Image: Friendly Service
Freshness: Top-notch coffee beans
(Back-end Collaboration)
Rules: “Aroma First Rule”
Starbucks-Challenges
• High price
• Can they raise customers WTP
• Higher costs
• Not so Real Estate savvy
• Will they succeed in b and c locations
• Do they have enough talent
• TATA questionable marketing skills
Challenges
Starbucks:
• Amount of store closures
• Competitors
• Limited outlets
• Not an affordable price
CCD:
• Customer Service
• Rural Employees
• Cost of Land
• Managing outlets
So what really brought the turnaround after 2007-
2008 crisis ?
Shultz’s letter
“Over the past ten years ,in order to achieve
growth , development and the scale necessary
to go from less than 1000 to 13000 stores and
beyond., we made a series of decisions, that in
retrospect, have led to the watering down of
the Starbucks experience and what I might call
the commoditization of our brand.
Starbucks today does not have the soul of the
past. Something intrinsic is missing. I no
longer see the aura. We are under under attack
from within”
Thank You!
