BrandExtention-StarbucksMTTandTYZContentsRecommendationsMarketPenetrationMarketDevelopmentProductDevelopmentDiversificationIntroductionTheStarbuckscoffeecompanywasfoundedintheyear1971anditsheadquarterissituatedinSeattle,Washington(USA).Starbucksoperatesachainofbrandedcoffeeshopsinaroundmorethan35countriesoftheworld.Theoutletsofferhotandcoldcoffeedrinksandfewfooditemssuchasbeans,coffeeaccessoriesandteas.TheStarbucksowns7100ofoutlets.Themajorprocessofenlargementofstarbucksstartedfrom1982.SincethenStarbuckshasevolvedfromamodest$0.5millionbusinesstoawhopping$6.4billionofturnover.MarketPenetrationBrandExtention-Starbucks011.MarketPenetrationInmarketpenetrationstrategy,theorganizationtriestogrowusingitsexistingofferings(productsandservices)inexistingmarkets.Inotherwords,ittriestoincreaseitsmarketshareincurrentmarketscenario.Thiscanbeaccomplishedby:(1)Pricedecrease;(2)Increaseinpromotionanddistributionsupport;(3)Acquisitionofarivalinthesamemarket;(4)Modestproductrefinements1.MarketPenetration(1)IncreaseindistributionsupportStarbuckssoughtvariousmethodstodeliveritsproductsoutsideitsstorefrontoutlets.ItopenedlicensedretaillocationsinsidegrocerystoresandformedalliancewithSSCO,pepsiC.,U.S.foodservice,andKraftfoodstodistributeproductstogrocerystoreandotherfoodretailers.1.MarketPenetration(2)ModestProductrefinementsStarbucksfocusedheavilyonthedevelopingqualityexperienceofitsproductandservicerange.Starbuckshasdifferentiateditselfinprovidingauniqueexperiencetoitscustomersbygivingspecificthemesinstores.Theproductmixconsistsofdifferentbeveragestosuitpeople'sneeds.StarbuckshavealsotiedupboostupcompanyprofitabilitywithotherbeveragecompaniessuchasPepsicoandKraftfood.1.MarketPenetration(3)DigitalMarketingNewtechnologimprovethecustomerexperienceEncouragesconsumerstoparticipateinthedigitalbusiness(e.g.mobilepaymentsystems)ThirdspaceamobileInternetplatformastheFourthspace.1.MarketPenetration(3)DigitalMarketingStarbucksbringstogetherallStarbucksdigitalitemscreatebrandsandsustainStarbuckscustomerrelationship.(e.g.Web,Mobile,SocialMedia,DigitalMarketing,StarbucksCardandE-Commerce,Wi-Fi,StarbucksDigitalNetworking,EmergingIn-StoreConsumerTechnology)1.MarketPenetration1.MarketPenetration(3)DigitalMarketingStarbucksusetheonlinetocreateanonlinecommunityforitsoverallbrandimageservicestomeetandpromotetheofflinestoresales.ThisO2OmarketingapproachenablesStarbuckstobeeffectiveinbranding.(e.g.StarbucksDigitalNetworkServicethroughthefreeWififorfreereadingTheWallStreetJournal,NewYorkTimes,USAToday,TheEconomistandotherpaidcontent.)1.MarketPenetration(3)DigitalMarketingStarbucksoffersfreeonlineserviceattractandretainalargenumberofcustomersforofflinestores.(e.g.myStarbucksallowsuserstomorequicklyquerytonearbystoresandmenudrinksinformation,greatlyincreasingcustomerloyalty)1.MarketPenetration(4)StarcardThepromotionofStarcardhasbroughtmoresalesrevenuetoStarbucks.Eachcustomer'sStarcardconsumptionwillberecorded.Withtheaccumulationofconsumerspending,customerswillbeabletogetmorefeedbackexperience.(e.g.freecoffeedrinks,exclusivecoffeeclassrooms,newproductexperience)Thecustomer'sconsumptionhabitsandpreferenceswillbefeedbacktoStarbuckstimelythroughtheStarcard.Starbuckscanmorefullylistentothepracticalneedsofcustomers,andthenmaketheappropriatemarketpenetrationstrategy.1.MarketPenetrationSnowmanStarcardClassicCupStarCardThanksgivingStarCardMarketDevelopmentBrandExtention-Starbucks022.MarketDevelopmentInmarketdevelopmentstrategy,afirmtriestoexpandintonewmarkets(geographies,countriesetc.)usingitsexistingofferings.Thiscanbeaccomplishedby:(1)Differentcustomersegments;(2)Industrialbuyersforagoodthatwaspreviouslysoldonlytothehouseholds;(3)Newareasorregionsaboutofthecountry(4)Foreignmarkets.2.MarketDevelopmentStarbuckshasdevelopedspecialtycoffeemarketinUSbyeducatingconsumersandcreatingtrends.IthascreatedbrandawarenessanddemandforcoffeestoresamongstAmericanpopulation.Starbucksessentiallytransformedacommodityintospecialtyitemthatconsumerwereabletopaytopmoneyforit.2.MarketDevelopmentStarbuckshasmadeconcertedeffortstoexpandgloballythroughtheyears,anditsprogresshasbeenastounding.NowStarbucksisthechiefretailerforbrandspecialtycoffeeinthewholeworld.Ithasmorethan7,500shopsallocatedinCanada,theUSA,Europe,AsiaandtheMiddleEast.Starbucksrevenueisgrowingyearly.Itisopeningaboutthreeshopsdaily.2.MarketDevelopmentOnekeytoitsglobalsuccesshasbeenStarbucks'willingnesstoadaptitsmenutodifferentculturalpreferencesandregionaltastes.e.g.Starbucks'Mooncakes;Starbucks'DragonDumplings.2.MarketDevelopmentStarbuckswillalsoconductspromotionsondifferentfestivals.e.g.2016ChristmasDay-StarbucksselectedeightredcupdesignlistedinChina.ProductDevelopmentBrandExtention-Starbucks033.ProductdevelopmentTobeapremiumproductinthecoffeetrade,theyaimathighstandards,introductionofinnovativeproductsandprovidingexcellentservicecombinedwithunforgettableexperience.Itsproduct-mixexpandedfrom12maincategoriesofdrinkstypesand7foodcategories(Starbucksweb)tokeepupwiththemomentumandtosatisfymorecustomerneeds.3.Productd