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Morning starts with a coffee.

But

It’s not just coffee. It’s Starbucks.

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Starbucks

Coffee

Raith Bairuty, Chandler Boyd, Alim Marediya,

Jennifer Mijares, Fabian Obregon

Introduction Slide-

*What is Starbucks? Starbucks is a well known multinational corporation that specializes in coffee. Starbucks serves a variety of coffee products including hot and cold drinks, whole-bean coffee, juices, teas and snacks, with many stores selling pre-packaged food items, hot and cold sandwiches, and drinkware. Starbucks is an American coffee company and coffeehouse chain that was founded in 1971, in Seattle, Washington by Gordon Bowker, Jerry Baldwin, and Zev Siegl. Their current CEO is Kevin Johnson and is headquartered in Seattle, Washington, operating over 30,000 locations worldwide, with approximately 291,000 employees. Starbucks holds itself as a different company, one that honors the rich tradition of coffee but also that brings together a feeling of connection. In fact, Starbucks has a heritage saying where they strive to go to work to do two things, “share great coffee with our friends and help make the world a little better”. Starbucks understands that people come into their place of business to chat, meet up, and do work. Starbucks are known neighborhood gathering points and are also part of the daily routine for many. Many of us have probably worked on group projects during our time at UTD at a Starbucks and enjoy their coffee on a daily basis. I know I do.

Fabian Obregon

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Agenda

Describe specific overseas markets Starbucks operates in
Analysis of Starbucks resources and capabilities
Institutional environmental analysis on overseas market
Analysis of Starbucks international strategies
Views, opinions, and suggestions on international strategies
Conclusion

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Indian Market Overview

Starbucks first store in India- 19 Oct, 2012.
Starbucks has 50-50 percent partnership with TATA global beverage.
Expanded throughout country with as of Nov, 2019 Starbucks as 163 stores in 10 cities.
According to current trend Starbucks plan to make India its fifth largest Market in the world.
In Q4 FY 2019. Starbucks had growth of 30%.

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Indian Market Strategies

Marketed as something Premium but not as daily coffee place as majority of people on preferred chai (Indian Tea).
Advertised with Indian celebrities because people of India like to follow celebrities.
Presented starbucks cafe as a place to hang around with your friends, families or have meetings.
Partnered with well known Indian MNC and it helped them from non-native status which usually hurts little to foreign companies.
They have plan to expand each year based on profit.

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Australian Market Overview

Starbucks entered in the year 2000 in Sydney, Australia
Expanded rapidly to 87 locations by 2008
Accumulated $105 million dollars in losses in its first seven years
Closed 61 locations in 2008

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Australian Market

Why it miserably failed

Expanded too fast
Kept the same business plan as in the U.S.
Did not implement Australian coffee culture
Failed to modify menu to favor Australian consumers
Priced coffee higher than local cafés

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South Korea Market Overview

South Korea being a large overseas market and having a population of about 52 million people, presented an opportunity for a successful business venture. The success of starbucks in South Korea began in 1999.

Since 1999 Starbucks has become the market leader in selling coffee in Korea. In addition South Korea is now ranked 5th in countries with the most starbucks location as they have north of 1262 branches opened up. Profitability increases yearly with profits in 2018 increasing by $23 million alone. They have been able to accomplish such number by employing strategies to improve their transition to a foreign environment discussed in the next slide.

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South Korea Market Strategy Analysis

Starbucks Success in South Korea was a direct result of the strategies implemented including:

Avoiding regulations restricting amount of locations and proximity of branches
Introducing collaborations with popular K-Pop band BTS including merch and food
Making their products more accessible through phone app Siren and drive through
Having each branch directly operated by Starbucks rather than franchising
Ensuring quality control measures setting themselves apart from competitors and local cafes

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Canada Market Overview

Introduces in Canada on March 1st, 1987.
Since then have expanded to 1,175 locations.
Starbucks Canada has an annual revenue of $233.19 Million.
Have over 2300 employees in Canada alone.

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Canada Market Strategy Analysis

Starbucks is best known in the Canada and US for their consistent branding. Starbucks coffee has always been presented as the finest coffee you can buy. Through all the years they have kept this reputation in North America.
Another reason for success in Canada is the “homey” feel of the cafes. Canadians like to get their coffee and then hang out a bit with people they know.
Quality control is another reason for success in North America. No matter what cafe you go into, they all feel the same and the coffee is always the same.

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Conclusion

Specific Overseas Markets operated by Starbucks
Starbucks resources and capabilities
Institutional environmental analysis
International Strategies implemented by Starbucks
Opinions and suggestions on improvement

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References

25+ Starbucks Slogans Today, & Over the Years, M. Masud. (2018. December 18) Retrieved April 21, 2020, from https://advergize.com/marketing/25-starbucks-slogans-today-years/

Starbucks company profile. (2020, March 15). Retrieved from https://www.starbucks.com/about-us/company-information/starbucks-company-profile

Starbucks, from Wikipedia. (2020, April 16). Retrieved from

https://en.wikipedia.org/wiki/Starbucks

The Success of Starbucks in India - THE BORGEN PROJECT. (2017, March 15). Retrieved April 15, 2020, from https://www.borgenmagazine.com/the-success-of-starbucks-in-india/

Starbucks expects India to be among its top 5 markets globally. (2017, October 25). Retrieved April 15, 2020, from https://www.businesstoday.in/current/corporate/starbucks-expects-india-to-be-among-its-top-5-markets-globally/story/262597.html

Gautam, S. (2016). Case Study- Entry of Starbucks in Indian Market. Retrieved 2019, from https://www.researchgate.net/publication/316600552_Case_Study-_Entry_of_Starbucks_in_Indian_Market

Rakshit, Avishek. “Starbucks.” Business Standard, Business-Standard, 19 Nov. 2019, www.business-standard.com/article/companies/expansion-plans-new-formats-help-tata-starbucks-grow-26-in-sep-quarter-119111901147_1.html.

“[News Analysis] Breaking down the Success of Starbucks in Korea.” [News Analysis] Breaking down the Success of Starbucks in Korea : Business : News : The Hankyoreh, english.hani.co.kr/arti/english_edition/e_business/902727.html.