Slide 1

Get a star for your bucks

Hello everyone, my name is Sameer Tiwari andThis presentation is about the very famous chain of coffeehouses Starbucks which is also amongst the most renowned and loved coffee brand worldwide1

Today starbucks is the main representative of second wave coffee

Today, Starbucks is the main representative of the second wave coffee which is characterized by its strong flavour. The company was founded in 1971 in Seattle and today operates in 23,768 locations worldwide2

HOW?

Now if we observe, There are many other coffee brands out there but only starbucks has had such a great journey and one often ponders as to how was it achieved? And I have divided the whole thing into seven reasons.3

#1 Awesome product.

relentless commitment to providing the richest possible sensory experience

Off course, the number one reason has to be the product. The company also boasts about it on many occasions that it does provide the best flavour in coffee worldwide4

And to fulfil that,

The company purchases the highest quality coffee and works closely with farmers to help them

The commitment that it makes with the customers is backed up by the purchase of a very high quality coffee and the hard working farmers behind it. The company encourages its farmers to adopt the best farming practices.5

#2 internal marketing

The company works hard to build the best working environment

The second reason is that the company creates an awesome working atmosphere for its employees by efficient internal marketing. 6

Perks of working at starbucks:

-comprehensive health insurance-financial aid for education-no worries if you are disabled.

THIS IS A DEAF EMPLOYEE

A typical starbucks employee gets comprehensive health insurance and the financial aid for the education that he or she is persuading. It also welcomes people with disabilities and bring them to light as you can see in the picture7

#3 ADVERTISEMENTS.

And definitely one of the biggest reasons for success has to be effective marketing and advertisements in various public platforms done by the company8

THE COMPANY CREATIVELY POSITIONS ITSELF AS THE PREMIUM COFFEE BRAND THROUGH ADVERTISEMENTS.

The company uses various advertising platforms to position itself as the premium coffee providers around the world. The advertisements are often very informative and creative 9

#4 A STRONG CONNECT WITH THE CUSTOMERS

The company over the years has enjoyed the privilege of having a strong customer base and that has become possible only because of its efforts to establish a strong connect with its consumers

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THE COMPANY USES FACEBOOK TO:

-CREATE AWARENESS ABOUT COFFEE

-RUN CAMPAIGNS.

-RESPOND TO CONSUMER PROBLEMS.

The company uses the social media giant facebook to create awareness about coffee, run campaigns and respond to constructive feedback as you can see in the pictures here.11

THE COMPANY USES YOUTUBE TO:

-DO CREATIVE ADVERTIZING

-MARKET THEIR BRAND

-GAIN SUPPORT FOR SOCIAL CAUSES

APART FROM THIS THE COMPANY SERVES CUSTOMERS IN CUPS WITH THEIR NAMES PRINTED ON IT.

The company has over a hundred thousand subscribers to its YouTube channel through which it markets its brand and gains support for various social causes. Also, the ordered coffee cup has the customers name printed in it12

#5 USE OF TECHNOLOGY

As we all are in the era of fast growing technology, starbucks leverages all the resources it has to use the best of technology 13

-AN APP TO REWARD CUSTOMERS

-CHARGING MATS ON TABLES

-FREE WIFI

The company uses the most advanced method to brew coffee. Provides free wifi and charging mats in its restraunts and also uses a mobile app to reward customers for their purchase14

#6 CLEVER EXPANSION.

Another reason is that the company uses clever expansion methods to get ahead of its competitors and employs the best strategy to deal with related controversies15

-AQUIRES THE MARKET LEADER IN THE CATEGORY WHEN ENTERS A NEW LOCATION.

-DELIBERATE CANNIBALIZM TO PROMOTE A FEELING OF CONVENIENCE.

The smartest move of all is that the company acquires the biggest competitor of the region when it has to enter that region, biggest example being that of Seattle coffee company. Also the company practices deliberate cannibalism to promote convenience16

#7 CSR.

But the most special reason for the companys success is its donations to charities and support for various causes all over the world which has helped it earn a million hearts and many awards17

THE COMPANY,

-IS THE LARGEST BUYER OF FAIR TRADE COFFEE

-DONATES TO FIGHT HIV.

-DONATES TO IMPROVE THE QUALITY OF WATER IN POOR COUNTRIES.

The company is in effect the largest buyer of fair trade coffee, donates heavily to fight HIV under the product red initiative and donates to improve the quality of water worldwide through each purchase of ethos drinking water among others18

SUMMARY (HOW STARBUCKS PULLS IT OFF?)

#1 AWESOME PRODUCT

#2 INTERNAL MARKETING

#3 ADVERTISEMENTS

#4 SPECIAL CONNECT WITH CUSTOMERS

#5 USE OF TECHNOLOGY

#6 CLEVER EXPANSION

#7 CSR

So now I think its time to recap what we have learned today about StarbucksThe reasons for its success include....19

And finally thank-you for listening20

DISCLAIMER

CREATED BY SAMEER TIWARI, NIT RAIPUR DURING AN INTERNSHIP UNDER PROFESSOR SAMEER MATHUR, IIM LUCKNOW.