Starbucks

Decisions: * Penetrate into the grocery market * Don’t pursue joint venture with Dreyers’ for Ice Cream * Pursue bottled Frappuccino product with PepsiCo * Pursue the Whole Bean project * Expand into flavoured coffee * Do not accept McDonald’s * Add 1000 stores over next 4 years | Trade Offs:Loss in profits and customer base by not pursuing Dreyers’ and McDonalds projects |

Support: * National Brand Image * High Quality Service * Complete Coffee Experience: People looking at modern ways to socialize * Growing market for flavoured coffeeReisistances: * Expanding into international markets * Competition from local retails | Impact: * Overal 30-40% increase in sales * Extension in product offerings * Increase in brand image and customer base |

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Quadrant-1: Decisions

* Penetrate into the grocery market: Initiate national rollout plan in the segment

* Test marketing in the Portland area showed promising results

* Helps pull lower priced customers into Starbucks category as well.

* No alternative way to overcome the convenience factor of the supermarket

* Don’t pursue joint venture with Dreyers’ for Ice Cream:

* This project could dilute the Starbucks brand by exploring into an area very different from the core of the company-coffee. To prevent brand dilution, the joint venture should not be continued. Further, the market and returns from this segment are less compared to Frappuccino and Whole Bean

* Pursue bottled Frappuccino product with PepsiCo

* Highest contribution amongst the three alternatives($4.4m in 1998 and $7.9 million in 1999)

* Target Segment: Ready-to-drink- This segment has grown by 166% during 1990-94 and is expected to double during 1994-98E.

* Continue Pacific Rim Development project: Projected Pacific Rim Development statistics...