Distribution & Retail Management

Introduction

 Company

started in 1971 in Seattle Washington Grew from 55 stores in 1989 to over 2,200 store today Product sold include:

Beverage Pastries Whole coffee bean Coffee related retail item

MISSION

Starbucks Mission Statement For Company

Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow.

Starbuck Mission Statement for Environment

Starbucks is committed to a role of environmental leadership in all facets of our business.

Starbuck Corporate Strategy

 Maximize

market penetration Provide a relaxing, attractive social atmosphere Offer high- quality product Create a great working environment Achieve profitability

Starbucks

STRENGTH
Largest market share in industry The company is internationally

recognized

and has a global presence Strong ethical values and mission statement Respected employer

Weakness
Aggressive expansion could lead to

managerial/ financial problem Reliance on beverage innovation Employee efficiency is poor Problems in some international operations

Opportunities
Opportunities for revenue growth by

expanding its global operations Co-branding with other manufacturers of food and drinks and brand franchising to manufacturers of other goods and services Growth in coffee markets

Threats
Lack of ownership of coffee farms can lead

to price fluctuation Coffee may not stay in favour with customers, and another type of beverage or leisure activity could replace it. Rises in the costs of dairy products could affect the companys margins.

Store Location

 Target

areas with favourable demographic profiles, as well as areas that can be serviced and supported by the companys operations infrastructure. Most stores are located in high-trafficked, high-visibility areas, such as:

Office buildings Downtown and suburban retail centres Airport terminals University campuses Busy neighbourhood shopping areas convenient to pedestrian traffic

Store Layout

 Stores

must be custom-designed. The company does not buy freestanding structures, and therefore each store is a different shape and size. Most stores range in size from 1,000 to 1,500 square feet.

Store Ambience

 Goal:

To make customers want to linger Social Appeal- Offer a sense of community, a place where people can come together Physical layout- Seating areas to encourage lounging

Store Aroma
Smoking

is banned in all stores Prepared foods are kept covered so customers would only smell coffee aromas.

Sound in Store
Play

soft CDs music that are also for sale Often offer live music

Customer Service and Advertisement

The company sees a direct link between customer satisfaction and customer loyalty. The company believes that employee satisfaction leads to customer satisfaction Employees are trained to connect with customers and focus on customer intimacy. Just Say Yes policy, in order to keep the customer happy, which may go beyond store rules The company spends very little on advertising and depends on word-of-mouth promotion.

Involvement in the Community

 Contributing

positively to surrounding communities is one of Starbucks guiding principles in the companys mission statement. Starbucks has been the largest corporate contributor in North America to CARE The company has an Environmental Committee that looks for ways to reduce, reuse, and recycle waste, as well as contribute to local community environmental efforts.

The company donated almost $200,000 to literacy improvement efforts. Starbucks has many community building programs to contribute positively to the communities where our partners (employees) and customers live, work, and play (Corporate). As part of Starbucks ongoing commitment to share the comfort of coffee during times of crisis, the company continues to demonstrate our support of the men and women serving in the U.S. military overseas

Customer Snapshots

 Starbucks

uses Customer Snapshots, similar to mystery shoppers, to evaluate partner performance in the retail stores. The four basic service evaluations include:

Service Did the register partner verbally greet the customer? Did the partners make eye contact with the customer? Say thank you? Cleanliness Was the store clean? The counters? The tables? The restrooms?

Product Quality Was the order filled accurately? Was the temperature of the drink within range? Was the beverage properly presented? Speed of Service How long did the customer have to wait? The companys goal was to serve a customer within three minutes, from back-of-the-line to drink-inhand.

Supply Chain Management

Starbuck in

 Starbuck

in Joint Venture with TATA Global Beverages will enter in INDIA. The Location are:
MUMBAI NEW DELHI

Starbuck Strategically picked this location to ensure their success

Reason for Choosing

Both Mumbai and New Delhi are home to many call centres Many colleges and Universities are also located here. Hot spots for tourists, who recognize a multinational brand such as Starbucks. The new Starbucks menu must cater to the India taste, mixing traditional menu items with those that a customized for the Indian tastes.

Target Market

 The

Primary target market for Starbucks Coffee Co. in India is the young both male and female from the ages of 16-38. Special marketing strategies will be used to gain their brand loyalty to Starbucks The secondary target markets are the tourists in the areas.

Analysis of Potential location

Mumbai
The

Starbucks will be located at Nariman Point near Churchgate and Gateway to India. Nariman Point is the nearby area Colaba are home to the higher-class affluent society.

New Delhi
The

Starbucks in New Delhi will be located in Connaught Place, a large commercial shopping area in New Delhi. New Delhi is the nearest big city to the world famous Taj-Mahal. The Starbucks Zone Office will be located in this Starbucks store.

Starbuck INDIA

 Zone

Office and a small scale Roasting Plant will be set up at the New Delhi Location of Starbucks
STARBUCK INDIA

STORE

ZONE OFFICE
Human resource generalists, managers of- facilities, account, finance, marketing, legal analyses.

ROASTING PLANT

Managers 5 employees

Production Team, Distribution Team

 Further

accounting, finance, information technology, sales and supply chain management will be handled at the Starbucks Support Centre (SSC) in Seattle, USA. (Starbucks) Starbuck store in INDIA will open on April 1 Human resource specialists from the US will be sent out in January to interview and hire prospective employees to run the new locations

Product and Services available in INDIA

 Starbucks

Coffee shops sells a variety of coffee and tea beverages along with different types of pastries, confections, and baked goods, coffee-related accessories and equipment. The coffee shops provide customers with a pleasant place to come and relax, study, work, or have business meetings Both locations will provided wireless Internet access in the stores so that customers can bring their laptop and continue their work if they wish.

Transportation of Goods

 Goods

will be transported by railway system, and supply trucks Equipment and other necessary supplies will be shipped from the United States keeping in mind there is a tariff on all these items

Pricing

 Competitive

pricing is necessary for the success of the venture 55 Rs. Per drink Starbucks prices will be 20% lower than those of the Barista Company Penetration pricing will ease the companys slide into the market place.

Promotion

 Promotion

of Starbuck by newspaper advertising to television ads Billboard advertising on the roads leading to the store locations is a good way to increase awareness of the location. Direct mail advertising with promotional coupons will be used to reach the homes of the target market. Sales brochures offering delivery services will be sent to the local call centres and big companies

Cost for promotion

Billboards:

1500 rupees (USD 27.27) per 10ft by 15 ft billboard ad. Direct Mail: 3000 rupees (USD 55.55) per 2500 prints plus stamps costs to mail directly to the homes. Sales Brochures: 3500 rupees (USD 63.63) per 2500 prints

CSR ACTIVITIES

 Starbucks

India will sponsor scholarship contests for the local students and make an annual large donation of 275, 000 (USD 5000) to the local public school systems.

Video Time

 Starbuck

store Store in office Mobile billing