Starbucks Operation Strategy
STARBUCKS OPERATIONS STRATEGY
STRATEGIES IMPLEMENTED
I. Expand its product offerings and enter new market segments * Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco Corporation and US Food service started handling the distribution whole bean and ground coffees and other Starbucks products to hotels, restaurants, office coffee distributors, educational and health care institutions and other such enterprises
* The North American Coffee Partnership, a joint venture worth PepsiCo, was made to create bottled or canned coffee-related products ready for mass distribution through Pepsi channels. Its first product, the Mazagran, was a failure. Later, they decided to create a bottled version of the Frappuccino that quickly became a big hit. After which, a shelf-table version of the Frappuccino was introduced which made quite an impact. The sales of these ready-to-drink beverages reached $125 million in 1997 and achieved national supermarket penetration of 80 percent. The partnership also introduced a line of chilled Starbucks Doubleshot espresso drinks in the United States in 2007. In Japan, Starbucks partnered with Suntory to sell the double shot dinks while they partnered with Arla Foods to sell the product across the United Kingdom.
* The two companies entered into another joint venture, the International Coffee Partnership, which was created to introduce Starbucks-related beverages in
STRATEGIES IMPLEMENTED
I. Expand its product offerings and enter new market segments * Starbucks expanded to pursue sales of products in a variety of distribution channels and market segments. Products were marketed to restaurants, airlines, hotels, universities, hospitals, business offices, country clubs, and select retailers. In the airline industry, Starbucks coffee was served in flights United Airlines and United Airlines. Packets of Starbucks coffee along with coffee making equipment were made available in each room in Hyatt, Hilton, Sheraton, Radisson and Westin Hotels. Coffee service was also provided in several Wells Fargo banks in California. Foodservice distributors such as Sysco Corporation and US Food service started handling the distribution whole bean and ground coffees and other Starbucks products to hotels, restaurants, office coffee distributors, educational and health care institutions and other such enterprises
* The North American Coffee Partnership, a joint venture worth PepsiCo, was made to create bottled or canned coffee-related products ready for mass distribution through Pepsi channels. Its first product, the Mazagran, was a failure. Later, they decided to create a bottled version of the Frappuccino that quickly became a big hit. After which, a shelf-table version of the Frappuccino was introduced which made quite an impact. The sales of these ready-to-drink beverages reached $125 million in 1997 and achieved national supermarket penetration of 80 percent. The partnership also introduced a line of chilled Starbucks Doubleshot espresso drinks in the United States in 2007. In Japan, Starbucks partnered with Suntory to sell the double shot dinks while they partnered with Arla Foods to sell the product across the United Kingdom.
* The two companies entered into another joint venture, the International Coffee Partnership, which was created to introduce Starbucks-related beverages in