Q2 . How would you evaluate Starbucks s Growth Strategy? Are there things you would do differently?

? How would you evaluate its partnerships ( e . g . with United Airlines ) ? How do you know whether it is a good or bad partnerships?
Growth of Starbucks

Expanding core retail opportunity worldwide Continued to innovate Expanded customer base Increased average unit volumes Leveraged Starbucks brand in other products and channels Didnt use advertising at all

Growth Strategies

A n so ff s M a tri x
Pro d u ct C u rre n t N ew

M a rke t

N ew

C u rre n t

M a rke t Pe Pro d uti /nse rvi D e ve l p m e n t n e tra ct o ce o

M a rke t D e ve l p m e D tve rsi ca ti n o ni fi o

Growth Strategies
M a rke t D e ve l p m e n t o I tro d u cti n o f a u to m a ti e sp re sso m a ch i n o c n

Disadvantages

P h ysi l b a rri r b / w ca e B a ri sta a n d cu sto m e rs C o ffe e ta ste i n o t s tra d i o n a l ti C o ffe e m a ch i e b l cks n o si h tl n e g i

Advantages Convenient for Barista Less time consuming Less human error

Brand Strategies

Diversification
Pro d u ct C u rre n t Li e n E xte n si n o N ew B ra n d E xte n si n o

B ra n d Ne C u rre n t w

M u l B ra n d s ti

N ew B ra n d s

Brand Strategies

N e w b ra n d s

B a ri sta E th o s w a te r Fra p p u cci o n T a zo J e M a g a ze n e o

B ra n d S tra te g i s e

Fra p p u cci o n
R T D co ffe e i ca n a n d b o ttl n e P a rtn e rsh i w i P e p si p th Fi S ta rb u cks p ro d u ct i rst n su p e rm a rke ts

T a zo
3 typ e s o f te a s- b l ck , g re e n & h e rb a l a A ttra cte d n e w cu sto m e rs w h o l o k fo r o a l rn a ti s to co ffe e te ve

B ra n d S tra te g i s e

B a ri sta
V a ri ty o f co ffe e m a ch i e s- e sp re sso e n a n d g ri d e rs n S o l o n l n e a n d i re ta i d i n lsto re s

E th o s W a te r
S o ci lm i o n a ssi C l a n w a te r a d va n ta g e to cu sto m e rs e

B ra n d S tra te g i s e
E xte n si n s o E sp re sso C o ffe e
C o m e i l g h t & n o rm a le sp re sso n i
qB ra n d

I -cre a m ce
C o m e i co n ta i e rs a n d b a rs w i n n th d i re n t fl vo rs ffe a

B ra n d S tra te g i s e

C o ffe e B l n d e
M i d , m e d i m , b o l & e xtra b o l l u d d S o l i S ta rb u cks sto re s & d n su p e rm a rke ts

C o ffe e Li u o r q
C o m b i a ti n o f S ta rb u cks co ffe e & n o p re m i m sp i t u ri S o l a t re sta u ra n ts, b a rs & l q u o r d i sh o p s o n l y

B ra n d S tra te g i s e

C re d i C a rd s t
M a ke i e a si r fo r cu sto m e rs to t e p u rch a se C o m b i e d S ta rb u cks ca rd a n d cre d i n t ca rd

S ta rb u cks E n te rta i m e n t n
I ve stm e n t i fi m i d u stry n n l n C u sto m -m a d e C D s i sto re s n

P a rtn e rsh i s p

United Airlines (to provide best services to the passengers)

3600 flights a day, 855 destinations in 155 countries 14% Starbucks customers had their 1st Starbucks coffee in UA flight

Kraft (for distribution network)

Starbucks coffee beans are distributed by Kraft in North America

Partnerships

Pepsi (to increase brand awareness & innovative product development)

Created ready to drink coffee in cans & bottles Under Frappuccino trademark Airport concessions Hotel lobbies & Malls

Marriot (to increase brand awareness)