Starbucks

Executive Summary

Starbucks is the leading retailer and roaster for brand specialty coffee in the world. It has over 7,500 stores located worldwide. As Starbucks continues to expand, it will encounter all sorts of new product markets, with new and demanding customers for unique and appealing products. Starbucks has begun by introducing an extension of the Frappuccino line targeted to the non-coffee drinker. Enteringthis new market, Starbucks faces many challenges from having to compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Our analysis and research of themarket have resulted in keys findings as follows:

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The new Frappuccino blended beverages, also known as the Summer Drink flavors will helpStarbucks reposition itself in the developing non-coffee iced-beverage market; Starbucks will alsoneed to enhance the product perception to maintain the perceived high quality. Customers of thissegment are sensitive to taste and quality of food product and nutritional data.

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With this new line extension, Starbucks will be facing many new competitors such as Jamba Juice,Orange Julius and other local non-coffee iced-beverage providers. Special care must beimplemented to maintain Brand equity for it’s primary product, and not become to diversified thecurrent customers seek alternatives.

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Based on our research, we found that the married couples age 25-54 with children to be the primary potential target market.

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Additionally, we have concluded generating awareness about the product via a Web Campaignwould be highly advisable. A Secondary approach would be Network TV or Print Media such asmagazines, journals, and newspapers.

Managerial Problem

Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun byintroducing an extension of a product line targeted to this segment. To ensure market growth, Starbuckshas repositioned one of its current products, the Frappuccino line,...