Starbucks
Market Analysis
Starbucks provides the highest-quality coffee what it believes in the world. It has hundreds of product lines and the sales of beverage take the largest percent. Despite of Starbucks’ overwhelming presence and convenience, customers think there was just a little of image and product differentiation between Starbucks and the smaller coffee chains. However, Starbucks has an uncomplicated distribution strategy, and it tries to make customers get entrance to Starbucks products easier and provide more convenience to customers. Moreover, it has company-operated stores located in high-traffic and high-visibility and non-company retail channels. In addition, Starbucks has four major competitors. Minneapolis-based Caribou Coffee which provides the look and feel of an Alaskan lodge has more than 200 stores in nine states. California-based Peet’s
Coffe&Tea- the freshest coffee is itsstrategy - has about 70 stores in five states. Others are Independent specialty coffee shopswhich offer beer, wine, liquor, satellite television, and internet-connected computers and, Donut and bagel chains like Dunkin Donuts offering flavored coffee and non-coffee alternatives.
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For product innovation, new products werelaunched on a regular basis. For service innovation, Starbucks has launched Stored-Value Card (SVC) and T-Mobile
HotSpot wireless Internet service. In addition, the expanding strategy was to open stores in new markets while geographically clustering stores in existing market. Furthermore, the cost of cannibalization covered by total incremental sales associated with concentration. Evaluate Starbucks’ Plan
It is a good idea to make customers feel like valued customers with faster service with more labor. As you said, it justmakes about 7 penny loss a share. However, it is a minor loss of share, and there are some problems in the $40 million plan. First of all, it is too large amount of money to spend for small
Starbucks provides the highest-quality coffee what it believes in the world. It has hundreds of product lines and the sales of beverage take the largest percent. Despite of Starbucks’ overwhelming presence and convenience, customers think there was just a little of image and product differentiation between Starbucks and the smaller coffee chains. However, Starbucks has an uncomplicated distribution strategy, and it tries to make customers get entrance to Starbucks products easier and provide more convenience to customers. Moreover, it has company-operated stores located in high-traffic and high-visibility and non-company retail channels. In addition, Starbucks has four major competitors. Minneapolis-based Caribou Coffee which provides the look and feel of an Alaskan lodge has more than 200 stores in nine states. California-based Peet’s
Coffe&Tea- the freshest coffee is itsstrategy - has about 70 stores in five states. Others are Independent specialty coffee shopswhich offer beer, wine, liquor, satellite television, and internet-connected computers and, Donut and bagel chains like Dunkin Donuts offering flavored coffee and non-coffee alternatives.
- 2 -
For product innovation, new products werelaunched on a regular basis. For service innovation, Starbucks has launched Stored-Value Card (SVC) and T-Mobile
HotSpot wireless Internet service. In addition, the expanding strategy was to open stores in new markets while geographically clustering stores in existing market. Furthermore, the cost of cannibalization covered by total incremental sales associated with concentration. Evaluate Starbucks’ Plan
It is a good idea to make customers feel like valued customers with faster service with more labor. As you said, it justmakes about 7 penny loss a share. However, it is a minor loss of share, and there are some problems in the $40 million plan. First of all, it is too large amount of money to spend for small