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Brand Extention- Starbucks
MTT and TYZ
Contents
Introduction
The Starbucks coffee company was founded in the year 1971 and its headquarter is situated in Seattle, Washington (USA).
Starbucks operates a chain of branded coffee shops in around more than 35 countries of the world. The outlets offer hot and cold coffee drinks and few food items such as beans, coffee accessories and teas.
The Starbucks owns 7100 of outlets. The major process of enlargement of starbucks started from 1982. Since then Starbucks has evolved from a modest $0.5 million business to a whopping $6.4 billion of turnover.
Market Penetration
Brand Extention- Starbucks
01
1. Market Penetration
In market penetration strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to increase its market share in current market scenario.
This can be accomplished by:
(1) Price decrease;
(2) Increase in promotion and distribution support;
(3) Acquisition of a rival in the same market;
(4) Modest product refinements
1. Market Penetration
(1) Increase in distribution support
Starbucks sought various methods to deliver its products outside its store front outlets. It opened licensed retail locations inside grocery stores and formed alliance with SSCO, pepsi C., U.S. foodservice, and Kraft foods to distribute products to grocery store and other food retailers.
1. Market Penetration
(2) Modest Product refinements
Starbucks focused heavily on the developing quality experience of its product and service range.
Starbucks has differentiated itself in providing a unique experience to its customers by giving specific themes in stores. The product mix consists of different beverages to suit peoples needs.
Starbucks have also tied up boost up company profitability with other beverage companies such as Pepsi co and Kraft food.
1. Market Penetration
(3) Digital Marketing
New technolog improve the customer experience
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