Starbucks: Stirring Up a Stormy Brew

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STARBUCK S

Mohammad Waqas Aslam Asad Iqbal

Faizan Ahmed Khan Naimat Ullah

Starbucks: Stirring Up a Stormy Brew

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Question #1:-in terms of its service and product line how would you classify starbucks? Answer: Starbucks not only focus on the customer but its primary focus is on its employees they give the opportunities to the employees to buy the shares of the company so as the employee have a sense of ownership as they have sense of ownership they serve at their best which ultimately help to enhance the services of the company beside this the company expand more on employees training as on marketing. Initially starbucks focus on the small product line but with the passage of time and having resources and opportunities they increase there product live like in 1996 they introduce Frappuccino and in 1997 they introduce their flavors. Question # 2:- As a corporate chain what advantages does starbucks enjoy? Answer: They have strong health strategy in regarding their strategy president Clinton call Mr. Howard and ask about their health care strategy so this is the advantage for the company. Their strategies are to much good the benefits of their strategies are these that with out spending to much on marketing company they enjoy a huge sales. Question #3:- What are starbucks target market(s) and how has the company tried to appeal to them? Answer: Starbucks target market by different type of strategies starbucks open cafe starbucks a full service restaurant in Seattle. Three more restaurants were scheduled to open by the end of the year. Café starbucks offer hot meal and a bar with coffee liqueur drinks this venture is both more costly and more complex then serving a short of java. Final starbucks has plans to expend internationally it already has coffee shops in Japan where the lines snake out the doors of those

Starbucks: Stirring Up a Stormy Brew

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establishments in spite of the Asian financial crises starbucks also opened shops in Thailand and it snatched up London through a standardized decor use in multiple sites. Question # 4:- How has starbucks positioned it self? Describe all the actions that starbucks has taken to support its positioning. Answer: For positioning it self starbucks take part in social activities before opening a new store starbucks develops added value programs that give something back to the local community such as the establishment of a hospice food bank or AIDs foundation on a national level in 1997 the company inaugurated the starbucks foundation which will provide financial and other support for children in need and children related causes these gross roots efforts take the place of more conventional forms of marketing at starbucks the company has spend more money on employee training in the last ten years then it has spend on advertising. To attract new user’s starbucks rolled out a new television advertising campaign in the spring of 1997. Starbucks and the add agency wanted something simple and unassuming that evokes images of the neighborhood coffee house where friends meet to relax and unwind. Starbucks also serve as a sponsor of Lilith Fair in 1998. To exploit its sponsorship to raise awareness of the music festival and to raise funds for women’s organization around the country the company showcased Lilith Fair artist such as Tara MacLean from Vancouver in its coffee shops.

Question # 5:- Describe starbucks line extensions and explain how they relate to one an other. How do they support or detract from the over all brand image? Answer:

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Starbucks opted to broaden its product line bye introducing Frappuccino in 1996. broadening its flavor in 1997 and selling it in grocery stores. Frappuccino is a joint venture with Pepsi cola whose clout in the super market business helped get shelf placement in 1998 the shrink wrapped Frappuccino bottle was replaced by a clear glass bottle with minimal decoration power Frappuccino a vitamin enriched version debuted in 1998.following the success of Frappuccino to expend in store sales starbucks introduced a coffee flavored ice-cream in conjunction with Dreyer’s Ice Cream and Tiazzi a made to order juice and tea drink. Starbucks has special line extension due to a uses genuine coffee because for a rich flavor. Question # 6:- Which of starbucks’ new ventures are most likely to succeed? Why? Which ventures are likely to fail? Why? Answer: At first starbucks Frappuccino is a joint venture with Pepsi cola whose clout in the super market business helped get shelf placement in 1998 the shrink wrapped Frappuccino bottle was replaced by a clear glass bottle with minimal decoration. “The overriding rational was gee we let those flavors we seen” said a Pepsi spokesman power Frappuccino a vitamin enriched version debuted in 1998. By mid 1998 Frappuccino led the $101.4 million ready to drink coffee category with more then $65 million in sales. following the success of Frappuccino to expend in store sales starbucks introduced a coffee flavored ice-cream in conjunction with Dreyer’s Ice Cream and Tiazzi a made to order juice and tea drink. To stretch its business further into the day and evening in September 1998 starbucks opened café starbucks a full service restaurant in Seattle. Three more restaurants were scheduled to open by the end of the year. Café starbucks offer hot meal and a bar with coffee liqueur drinks this venture is both more costly and more complex then serving a short of java.

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