TROUBLE BREWS AT STARBUCKS
TROUBLE BREWS AT STARBUCKS
Introduction
This assignment is based on a Starbucks case study. The questions that are answered in this assignment are aimed at providing a clear understanding of the Starbucks, which was a Wall Street darling. The issues highlighted include; the targets that was behind the launching of the Starbucks by Howard Schultz, the positioning of the Starbucks in terms of price, promotion, product and distribution. The assignment will also give an overview of the definition of the target market by Starbucks, its positioning after its decline in 2007 and the course of action that resulted in reinvigoration of Starbucks.
The target of the launching of the Starbucks When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. The Starbucks aimed at gaining dominance of the business in addition to squeezing the small businesses that could not stand the competition. To Starbucks, growth was its mantra. Starbucks was strongly in a race to ensure that national dominance was established in front of the specialty coffee bars that were emerging. In order to ensure that its growth ensured claiming of this category leadership, the strategy focus of Starbucks was based on new products, a connection that was stronger and expansion of the stores locations in not only the United States but also abroad. To support the positioning, there was targeting of the new products for distribution to grocery stores, which included ice-cream novelties and coffee drinks. For the strategy of retail distribution, additional challenges were addressed. New stores were designed by Starbucks for local culture reflection in the effort to react to the fear in which communities cared for their uniqueness. In addition to the importance of the changes in the distribution and products, Starbucks invested on a promotion strategy that was well designed to build an image that was consistent worldwide. An approach that was undifferentiated was
Introduction
This assignment is based on a Starbucks case study. The questions that are answered in this assignment are aimed at providing a clear understanding of the Starbucks, which was a Wall Street darling. The issues highlighted include; the targets that was behind the launching of the Starbucks by Howard Schultz, the positioning of the Starbucks in terms of price, promotion, product and distribution. The assignment will also give an overview of the definition of the target market by Starbucks, its positioning after its decline in 2007 and the course of action that resulted in reinvigoration of Starbucks.
The target of the launching of the Starbucks When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. The Starbucks aimed at gaining dominance of the business in addition to squeezing the small businesses that could not stand the competition. To Starbucks, growth was its mantra. Starbucks was strongly in a race to ensure that national dominance was established in front of the specialty coffee bars that were emerging. In order to ensure that its growth ensured claiming of this category leadership, the strategy focus of Starbucks was based on new products, a connection that was stronger and expansion of the stores locations in not only the United States but also abroad. To support the positioning, there was targeting of the new products for distribution to grocery stores, which included ice-cream novelties and coffee drinks. For the strategy of retail distribution, additional challenges were addressed. New stores were designed by Starbucks for local culture reflection in the effort to react to the fear in which communities cared for their uniqueness. In addition to the importance of the changes in the distribution and products, Starbucks invested on a promotion strategy that was well designed to build an image that was consistent worldwide. An approach that was undifferentiated was