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Ansoff Matrix

Ansoff Matrix

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Published by: Throwsdloh on Mar 12, 2011
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Ansoff’s matrix allows marketers to consider ways to grow the business via existing and/or new products, in existing

and/or new markets. By analyzing whereabouts Starbucks are at the current moment in time, we can suggest areas of improvement/consolidation.
PRODUCT S Existin g Market Penetration New

Product Development

 Espresso
Existin g

 Cappuccino  Mild, smooth and bold coffee’s

 Starbucks VIA Readybrew  Starbucks card

MARKETS Market Development Diversification

 Frappuccino blended coffee

 Mugs  Tumblers  Coffee machines

 Frappuccino light blended coffee  Traditional Coffee’s with ice.

Starbucks have a good range of products targeting both existing/new customers and existing/new markets. However their development of completely new products could be an area of improvement. This is because Starbucks VIA Readybrew (their main product development) is only available in London coffee shops and therefore the amount of revenue the product will generate is restricted. Furthermore, although Starbucks has diversified, the products under this heading are still drinks based. The company could spread its risk and increase its chance of long-term success if it diversified into a completely new market.

37 per year more than its closest rival. Starbucks has opened an average of 67 shops per year since its establishment in the UK.Shops in UK Time in business (UK) 11 years Starbucks 733 Average number of stores opened in a year 67 Costa Coffee 1000 38 years 26 Caffe Nero 360 12 years 30 1000 Number of shops opened 500 0 10 Conclusion 20 30 40 The graph shows that years since establishment in UK a far Number of Starbucks is expanding at faster rate than either of its main competitors. as we can see from the table. . Costa Coffee or Caffe Nero. This is because.

It has opened a large number of shops in London however it has only 4 shops out of 733 located in the 2nd largest 2.7% Birmingham (2 largest city in the UK) a stronger position to take advantage of the large population in Birmingham. However Caffe Nero has by no means established itself in Birmingham.5% 1. . therefore Starbucks has the opportunity of increasing market share if it takes relevant action.5% of its shops nd compared % of shops in for Caffe Nero which means Caffe Nero is in with 1.Shops in UK Shops in % of London shops in London 262 100 36% 27% Shops in Birmingh am 4 6 % of shops in Birmingha m 0. Birmingham.5% 5% city in the UK. This equates to 0.7% Starbu cks Caffe Nero 733 360 50 % of shops in London (Largest city in the UK) 25% Conclusion There is a significant opportunity that Starbucks is failing to exploit.

ukcities.City London Birmingham Population 7.uk/populatio ns/ .2 Million 992000 http://www.co.

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