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Tuesday, September 27, 2005

Starbucks Case Study Analysis

o Pros: Increased brand awareness will increase sales and their local retail sector will benefit, development of new distribution channels. o Cons: costly; time to setup new distribution channels, having to identify and setup new partnerships. The second grand strategy is "Product Development". In this strategy, Starbucks needs to work with its international partners to identify local cuisine that would be sold in the Starbucks stores to bring in the local crowds. For example, Starbucks Hong Kong sells curry puffs, sausage rolls and seasonal products such as Starbucks' moon cakes. These products help promote that local community feel and enhance the "Starbucks experience". Starbucks needs to expand the music CD's that they sell to include local music and cultural tastes. By doing this, Starbucks will help to promote that local community appeal of their stores. The Starbucks store becomes a local community gathering place not just another American corporation taking money from the economy and not giving anything back. o Pros: Increased traffic with the local customers, use of existing products and distribution channels to sell more Starbucks products. Makes the "Starbucks experience" unique for each international community. o Cons: Dilutes the Starbucks brand awareness.

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