1、Brand Extention- StarbucksMTT and TYZRecommendationsMarket PenetrationMarket DevelopmentProduct DevelopmentDiversificationIntroductionThe 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 s
2、hops 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
3、 modest $0.5 million business to a whopping $6.4 billion of turnover.Market PenetrationBrand Extention- Starbucks011. Market PenetrationIn market penetration strategy, the organization tries to grow using its existing offerings (products and services) in existing markets. In other words, it tries to
4、 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 refinements1. Market Penetration(1) Increase in distribution supportStarbucks
5、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
6、(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 t
7、o 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 Encourages consumers to participate in the digital business(e.g.mob
8、ile payment systems) Third space a mobile Internet platform as the Fourth space. 1. Market Penetration(3) Digital Marketing Starbucks brings together all Starbucks digital items create brands and sustain Starbucks customer relationship. (e.g.Web, Mobile, Social Media, Digital Marketing, Starbucks Ca
9、rd and E-Commerce, Wi-Fi, Starbucks Digital Networking, Emerging In-Store Consumer Technology) 1. Market Penetration1. Market Penetration(3) Digital MarketingStarbucks use the online to create an online community for its overall brand image services to meet and promote the offline store sales. This
10、O2O marketing approach enables Starbucks to be effective in branding. (e.g. Starbucks Digital Network Service through the free Wifi for free reading The Wall Street Journal, New York Times, USA Today, The Economist and other paid content.)1. Market Penetration(3) Digital MarketingStarbucks offers fr
11、ee online service attract and retain a large number of customers for offline stores. (e.g. myStarbucks allows users to more quickly query to nearby stores and menu drinks information, greatly increasing customer loyalty)1. Market Penetration(4) Star cardThe promotion of Star card has brought more sa
12、les revenue to Starbucks. Each customers Star card consumption will be recorded. With the accumulation of consumer spending, customers will be able to get more feedback experience.(e.g.free coffee drinks, exclusive coffee classrooms, new product experience)The customers consumption habits and prefer
13、ences will be feedback to Starbucks timely through the Star card. Starbucks can more fully listen to the practical needs of customers, and then make the appropriate market penetration strategy.1. Market PenetrationSnowman Star cardClassic Cup Star CardThanksgiving Star CardMarket DevelopmentBrand Ex
14、tention- Starbucks022. Market DevelopmentIn market development strategy, a firm tries to expand into new markets (geographies, countries etc.) using its existing offerings. This can be accomplished by: (1) Different customer segments;(2) Industrial buyers for a good that was previously sold only to
15、the households; (3) New areas or regions about of the country (4) Foreign markets. 2. Market DevelopmentStarbucks has developed specialty coffee market in US by educating consumers and creating trends.It has created brand awareness and demand for coffee stores amongst American population. Starbucks
16、essentially transformed a commodity into specialty item that consumer were able to pay top money for it. 2. Market DevelopmentStarbucks has made concerted efforts to expand globally through the years, and its progress has been astounding. Now Starbucks is the chief retailer for brand specialty coffe
17、e in the whole world. It has more than 7,500 shops allocated in Canada, the USA, Europe, Asia and the Middle East. Starbucks revenue is growing yearly. It is opening about three shops daily. 2. Market DevelopmentOne key to its global success has been Starbucks willingness to adapt its menu to differ
18、ent cultural preferences and regional tastes.e.g. Starbucks Moon cakes; Starbucks Dragon Dumplings. 2. Market DevelopmentStarbucks will also conducts promotions on different festivals.e.g. 2016 Christmas Day - Starbucks selected eight red cup design listed in China.Product DevelopmentBrand Extention
19、- Starbucks033. Product developmentTo be a premium product in the coffee trade, they aim at high standards, introduction of innovative products and providing excellent service combined with unforgettable experience. Its product-mix expanded from 12 main categories of drinks types and 7 food categori
20、es (Starbucks web) to keep up with the momentum and to satisfy more customer needs. 3. Product developmentThey have been constantly introducing new products, such as four new VIA flavored coffees , and trying to attract tea drinkers by introducing Tazo Tea. VIA flavored CoffeesTazo Tea3. Product dev
21、elopmentIn addition to Tazo Tea. , Starbucks has also introduced other series of tea leaves3. Product developmentThey have seasonal offerings such as strawberry, cream Frappuccino in the summer and gingerbread latte in Christmas . Going little beyond, they also offers Starbucks coffee and cappuccino
22、 makers for customer who wish to purchase them (Starbucks store). Strawberry, Cream FrappuccinoGingerbread Latte3. Product developmentMuch work was done on brand extensions into new product categories to enhance the Starbucks Coffee customer experience. With sales coming from beverages, pre-packaged
23、 coffee in their stores and on grocery shelves, and an explosion of other retail products they developed, the emphasis on the highest-quality coffee beans seemed to be an afterthought. To refocus on its core competency and main brand differential, Starbucks created a limited edition series of the fi
24、nest whole-bean varietal coffees.3. Product development3. Product developmentThe company also created packaged goods to enjoy at home, including the Fontana brand of flavor syrups, Infusia tea, plus a line of baked-good mixes, jams and biscotti confections. 3. Product developmentDiversificationBrand
25、 Extention- Starbucks04（1）Concentric Diversification: to generate more revenue and high sales, Starbucks increased its product ranges mere quickly and without diverting from its main products. Starbucks new product ranges were related with each other and thus giving consumers a presentation of stron
26、gest of brand of specialty in its products.4. Diversification4. Diversification After the great success of the Frappuccino blended beverages in-store, Starbucks partnered with PepsiCo to introduce a bottled version in the grocery store. We developed packaging that carried the Starbucks quality messa
27、ge and brand mystique into this new channel. Pepsico and Starbucks committed to more bottling facilities and sales continued to climb dramatically.Another successful partnership paired Starbucks coffee with Dreyers Ice Cream to create what instantly became Americas favorite coffee ice cream. Heckler
28、 Associates created a completely new and unique graphic system for the coffee ice cream flavors that placed the Starbucks logo front and center on the package. Starbucks ice cream won the American Marketing Associations Best Product introduction of 1996 in the ice-cream category. Encouraged by the p
29、roducts great success, the company also introduced low-fat versions and ice cream bars. We created a packaging system that could easily accommodate all of these product additions.4. Diversification Coffee and beer are another natural pairing. Starbucks worked with our client RedHook Beer to create D
30、ouble Black Stout, a delicious dark beer. We named this new product and created the co-branded packaging, balancing the voice of both companies identities on the label.4. Diversification（2）Concentric Diversification: to generate more revenue and high sales, Starbucks increased its product ranges mer
31、e quickly and without diverting from its main products. Starbucks new product ranges were related with each other and thus giving consumers a presentation of strongest of brand of specialty in its products.4. DiversificationStarbucks saw an opportunity when they realized that customers were regularl
32、y requesting the playlist for the music mixes they heard in the stores. They worked with Blue Note Records to produce a jazz CD of store favorites. The CD would be sold in the coffee shops along with Blue Note Blend coffee beans. Heckler Associates designed the cover of this first CD, the Blue Note
33、Blend packaging, a T-shirt and the in-store promotional materials to support the introduction. Sales were outstanding. This was the first step for Starbucks now-famous role in the entertainment business.4. DiversificationRecommendationsBrand Extention- Starbucks055. RecommendationsFood: can extend t
34、o the field of chocolate Cultural products: Open bookstore on coffee cultureClothing and accessories categories: cooperate with some light luxury clothing brands, to develop a Starbucks clothing brand that features light luxury .In addition, starbucks can enter the field of jewelry, developing some
35、jewelry accessories or pendant.Food: can extend to the field of chocolate 5. RecommendationsCultural products: A bookstore on coffee culture where consumers can purchase any book on coffee culture.5. RecommendationsClothing and accessories categories: cooperate with some light luxury clothing brands, to develop a Starbucks clothing brand that features light luxury .In addition, starbucks can enter the field of jewelry, developing some jewelry accessories or pendant.5. Recommendations谢谢谢谢观看观看2016.11.11
