Starbucks Business

11 Pages 2790 Words

ture partnerships with Pepsi for their very popular Frappuccino® in Bottles to Go and with Dreyer` s for their exclusive ice cream assortment for their supermarket sale. This year, Starbucks has developed an energy espresso drink named double shot. They are also the only coffee suppliers of United Airlines’ flights (Weinstein, Steve “The niche makers”, Progressive Grocer, 1997, Volume 76). This case study will look at some of the aspects that made this explosive growth possible for Starbucks Coffee Corporation and Starbucks Coffee International.

Analysis
Product/Service
From latte to espresso con panna, Sumatra to Tazoberry ®; Starbucks purchases, roasts and sells high quality whole bean coffees. They also produce rich-brewed coffees, Italian-style espresso beverages, cold blended beverages, a variety of pastries, and coffee related equipment along with accessories in their retail stores. Additionally, they produce and sale a bottled Frappuccino® coffee drink and a line of premium ice creams through a joint venture partnership. Starbucks also offers a line of premium teas produced by its wholly owned subsidiary, Tazo Tea Company.
To expand the “Starbucks coffeehouse experience,” Starbucks is also moving into the service business. It is now offering high speed wireless internet access service to all its customers. Starbucks, T-Mobile, and HP announced recently that “2,000 stores will have 802.11b high-speed wireless Internet access available for customer use by year-end 2002” (Bissonnette, Curtis “Coffee and a hotspot”, mpulse magazine 2002). Starbucks has also initiated a 6-month pilot in select London and Berlin locations.
Promotion
Product promotion is focal point for Starbucks, the company has taken a three tier stance on it. The first tier is selling the “Starbucks coffeehouse experience” which is “making connections with the people and things that are important to us over a cup of coff...