Starbucks case study: strategies for enhancing packaged coffee sales
Datamonitor
October 3, 2007 8 Pages - SKU: DFMN1580553
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Introduction
This report on Starbucks forms part of Datamonitor's case studies series, which explores business practices across a variety of disciplines and business sectors. It discusses how Starbucks has expanded the brand outside of its coffee shops into grocery stores and vending machines, profiting from the brand's positive consumer image.
Scope
Highlights
Reasons to Purchase
Gain insight into the methods used by important industry players to give them a competitive edge Identify specific areas for operational improvements Capitalize on the knowledge of experienced companies when entering a new niche or market
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- DATAMONITOR VIEW
- CATALYST
- SUMMARY
- ANALYSIS
- Roast and ground coffee - developing offerings that exploit the premium trend
- Competing with loose beans for notions of quality
- Promoting freshness with Flavorlock bag technology
- Encouraging sales of packaged coffee with introduction of 'premium' home brewing machines
- Starbucks' premium reputation helps it expand into the supermarket channel
- Starbucks' widened distribution now includes office sales
- Wide ranging ethical coffees are promoted through charitable activities
- Fair Trade coffee makes up a small but significant proportion of coffee sales
- Starbucks deflects critics with charitable activities
- RTD coffee - targeting a range of consumers with RTD cold coffee offerings
- Low caffeine/no coffee RTDs attract teen crowd to drink in a 'cool' environment
- Starbucks targets post-teen RTD drinkers with high caffeine, low fat and liqueur blends
- Vending machines offer a new outlet for Starbucks coffee
- APPENDIX
- Case study series
- Methodology
- Secondary sources
- Further reading
- Ask the analyst
- List of Figures
- Figure 1: Starbucks' Barista Espesso Machine
- Figure 2: Starbucks range of ready-to-drink coffees includes the Vanilla flavored Coffee Frappuccino
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