Industry - Coffee Shop
Founded - March 30, 1971 (Seattle, Washington)
Key People - Howard Schultz (Chairman & CEO)
Kevin Johnson (President & COO)
Inspired to sell high quality beans &
equipment inspired from Alfred Peet’s style
Roasted coffee beans bought from Peet’s
After a year started buying from growers
Later bought Peet’s
Timeline in Brief
1971 - Starbucks Coffee, Tea and Spice store (coffee bean
roasting) opened in Seattle Pike Place Market
1982 - Howard Schultz joined Starbucks
1986 - Howard Schultz established Il Giornale Coffee Company
1987 - Il Gionarle acquired Starbucks and changed name to
1992 - IPO with 140 outlets (12% = $25mill.)
1995 - Starbucks Coffee International opens in Japan
- It implements ESOP
• 1996 - Started selling bottled Frappuchino
• 1999 - Acquired Tazo Tea
• 2000 - Acquired Hear Music, a San Fransisco based company
• 2003 - Acquired Seattle’s Best Coffee
• 2005 - Introduced Starbucks Coffee Liqueur;
Acquired Ethos Wate
Saturated home market
Reaching brand maturity stage in USA
International joint ventures
Maintaining its image throughout
Operating at loss in few areas
Imbibing local culture
With 20% of world’s coffee consumed in North America,
Starbucks had to aggressively sell its offerings in countries that
already have dedicated tea or coffee drinkers.
Starbucks Coffee Japan was established in October
1995, as a JV between Sazaby Inc. and Starbucks
Since opening its first store in Ginza district, Tokyo
has expanded to more than 900 stores.
Company Name:- Starbucks Coffee Japan Ltd.
Critics warned that Japanese would never buy
takeout coffee in paper cups or accept the interior
non smoking policy.
Starbucks proved them wrong with nearly 30% of its
customers drinking takeout coffee in those throw
• Starbucks fuelled its initial expansion into UK with an
acquisition of the then 56 outlet, UK based, Seattle Coffee
• Rebranded all stores to Starbucks
• Used its capital and influence to obtain prime locations
across the country.
• 675 stores : 2nd biggest overseas market.
Started in 1994 but could open only 30 outlets in 10
Huge cultural diversity considering its historic café
culture and French tend to hold to their traditions
Target audience = America & Asian tourists + young rich
kids wanting to mingle with these tourists
Has been incurring losses inspite of tweaking the menu
to local tastes and success in UK
Brand building in areas of high tourist traffic
• Started in 1999
• Starbucks Korea Co. Ltd. As a JV with Shinsegae
Department Store Co. Ltd. and Starbucks Coffee
• Faced opposition from locals; changed lettering of the
store and in-store redecorating
• A Starbucks store in Seoul showcases traditional
Korean culture, with much of its interior constructed
with material reclaimed from old buildings.
• Succeeded where Wal-Mart failed; largest in the
world five story Starbucks
• Entered in 1999, Kuwait.
• Licensing agreement with trading partner and licensee
M.H. Alshaya Co. WLL, a private Kuwait family business.
• The family operates over 280 Starbucks stores in Middle
East Region including Kuwait, KSA, UAE, Egypt,
Lebanon, Jordan, Qatar, Bahrain and Oman.
• Currently 600+ stores.
• Entered in 1999
• China was a tea preferring country and had a rich
culture around it.
• Targeted the new middle classes with the idea of
“meet with friends while drinking our favorite
• Didn’t advertise but focused on getting high visibility
and high traffic localities.
• Introduced beverages using popular local ingredients
such as green tea.
• Attempted to form alliance with Future Group; rejected by
• Was in talks with Jubilant Group for an alliance; didn’t
• Entered in 2012 by forming a JV with Tata Global Beverages.
• Indian consumers sit for hours in the outlets with their coffee
unlike their foreign counterparts which demand plush outlets
rather than kiosks and small outlets serving coffee on the go.
• Opened its 75th store on July, 2015.
• At Starbucks diversity is defined by an equation –
DIVERSITY = INCLUSION + EQUITY + ACCESSIBILITY
• “We remain highly respectful of the culture and
traditions of the countries in which we do business. We
We recognize that our success is not an entitlement,
and we must continue to earn the trust and respect of
of customers everyday.”
Generic Value Chain
• Inbound logistics - Sourcing coffee from diverse
beans producers with whom they have great
and built up efficient supply chain management
• Operations - They have operation in 60 countries
their stores being modeled on company operated
and licensed stores.
• Outbound logistics - Most of its product mix are sold
store and some through large box retailers. Payment
around source through point of sale, prepaid
Cards and mobile payments.
Generic Value Chain
• Marketing and Sales - Traditionally, investment in
marketing activities have not been significant and relied
mainly on the growing reputation of premium quality
product mix and superior customer services to give the
‘Starbucks Experience’ to drive customers to their stores
• Service - Starbucks has a reputation for providing supreme
level of customer services to their consumers.
• Firm Infrastructure- They have well designed, aesthetically
pleasing stores. They have efficient level of finance,
accounting and legal departments to support the firm’s
Generic Value Chain
• Human Resource Management:- Great benefits,
employee empowerment and amazing corporate
culture makes Starbucks drive efficient management
of human capital.
• Technology development:- Investments in innovative
technologies like the well - liked mobile app.
• Procurement:- Starbucks procures its products from a
diverse group of supplier and has fixed contracts with
some of the suppliers.
• Starbucks’ Global Quest in 2006: Is it the best yet to come? by Danny
Nugroho RP and Retnowulan
• Starbucks International Marketing Strategy by Shahzad Khan
• Modes of International Business by Brijesh Dholakia
• Strategic Planning of Starbucks(Past Decissions, Current Situation and
Future Options) by Namrataben Govindbhai Panchasara
PRESENTED BY : DEEPAK VARGHESE M-14-02
DIXON DOMINIC PALETT M-14-04
ISHAN PARASHAR M-14-06
SOHAM DAS M-14-16
Pantaloons Fashion & Retail Limited - Indian premium clothing retail chain.
First store - Gariahat - Kolkata -1997.
Previously controlled by the Future Group, now Aditya Birla Nuvo Limited (ABNL).
104 stores across 49 cities.
Retail space - 2.3 million square feet - amongst the largest in India.
200 brands including 14 exclusive brands.
‘India’s Most Trusted Apparel Retail Brand’ - Brand Equity Survey 2014.
listed in both BSE and NSE.
Increasing reach and penetration across the country by opening new stores.
Rejuvenate the brand ‘Pantaloons’ , and enhancing customers’ shopping
Augment its merchandise width by adding new product categories and new
brands; and depth by refreshed merchandise and design with variety of options;
and thereby enriching the brand portfolio and delivering value to the
Continuous endeavor to enhance the base of loyal customers through loyalty
Focus on leveraging the operating efficiency and human capital - critical in any
consumer facing and service driven industry.
Well-defined process for an on-going management reporting and periodic review
of operations ; ensure effective decision-making.
To ensure employee development and growth, training and development of the
front end store staff, identifying leadership and key talent across the
organization and executing individual development plans.
The Pantaloons Payback Greencard - unique loyalty program - To enhance customer experience.
Over 4 million members - discounts, points and special privileges at all Pantaloons stores.
4 tiers depending on the year's shopping : Card upgrades with increasing privileges and discounts.
Complimentary home drop of altered garments
Relaxed exchange policy
Complimentary shipping across India
Exclusive sale preview
Exclusive billing counters
Assisted shopping among others.
However, growth prospects of the organised Apparel and Fashion retail market
remain bright, driven by the following factors:
growing middle class population (15% in 2008 expected to reach 46% in
large young population with median age at 27 years;
rising disposable income;
growing number of working women and
changing consumer preferences towards branded products and a better
INDIAN RETAIL MARKET
The size of the Indian retail market at USD 0.5 trillion in 2012 is expected to grow at
a CAGR of 12.7% to reach USD 1.3 trillion by 2020. Rising income levels and
preference towards quality products are likely to drive consumption expenditure in
India. One of the biggest beneficiaries of this growth will be the organizing retailing
sector which is projected to grow at a robust CAGR of 30% from USD 27 billion in
2012 to USD 220 billion by 2020 and substantially increase its share from 8% in 2012
to 20% by 2020. At about 60%, food and grocery segment is the highest contributor
to the Indian retail market followed by the clothing and fashion segment which
contributes 8%. While unorganized retailing accounts for the most of the food and
grocery segment, penetration of the organized sector is highest in the clothing and
fashion segment at 33%.
ACCQUISITION BY ADITYA BIRLA GROUP
Pantaloons, previously controlled by the Future Group, has been taken over by Aditya Birla
Nuvo Limited in 2013, a US $4 billion premium diversified conglomerate and India's largest
manufacturer of linen fabric.
Its present stock prices are: Rs 223.30 in BSE and Rs 223.80 in NSE.
Pantaloon stock had risen 45.22% after the govt. allowed FDI in multi-brand retail.
Its stock price picked a 52-week high to Rs 234.05 on November 2011.
ABNL is a US$ 4 billion conglomerate by revenue size. It is part of the Aditya Birla Group,
a US$ 41 billion Indian multinational.
It has a market cap of US $ 3.5 billion as on 30th September 2014.
In fiscal 2013-14, Pantaloons attained revenue of Rs. 1,661 Crore.
EBIDTA at Rs. 39 Crore was affected by low sales growth, as well as increase in people
costs to rebuild the organization.