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Starbucks

  • Course: Business Management
  • Professor: James Okollo
  • School: Kenyatta University
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Running Head: MANAGING THE CHANNEL AND THE SALES FORCE

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Kraft Foods Incorporation is the second largest food company in the world. Starbucks are global consumer products group that tries to broaden the Starbucks experience to consumers outside retail stores (Vickers, 2005). In 1998 Starbucks signed an agreement with Kraft foods to assist in selling Starbucks products in groceries across the United States of America. The two parties have been in the market for an adequate time. Business has been dynamic with each of them accruing benefits from the partnership. The two parties have a written agreement of business partnership up to 2014. Following the agreement, Kraft has built a business of 500 million dollars per year. This shows that the two parties are beneficiaries of the partnership (Vickers, 2005). The two companies have discovered a strategic channel of alliances that will guide the company in selling Starbucks coffee in the United States of America.

Kraft Company has been able to link Starbucks products with several supermarkets in the United States as well as internationally. However, Starbucks has discovered that it can make it on its own. Therefore, the company has chosen to push for an end of the contract or agreement that exists between the two parties. Kraft was not out to support this move. They oversaw decrease in their turnover. Following their past achievement under Kraft Company Starbucks is almost assured it can make it on its own (Vickers, 2005). Several chains of supermarkets have been linked with selling Starbucks’ product in the United States. Good examples of these channels are Wallmart stores, and the A & P supermarkets

At this point, Starbucks may be viewed as the major beneficiary of this channel or agreement. This is because they are the producers of the consumer products while Kraft acts as the marketer. Although the two parties benefit from...