New Product:
In introducing a new flavor of iced tea within Starbucks long line of products has the potential to continue to provide Starbuck’s with brand exposure. “In 2012, there were 160 million Americans who drank tea daily in any form, consuming a total of 3.6 billion gallons, or around 80 billion servings of tea in a whole year” (Trefis Team, 2014). Furthermore, within the third quarter of 2014, it was Starbuck’s CEO, Howard Schultz, who was credit with mentioning “that the company believes the tea market is worth $90 billion and this gives them incentive to transform this segment into a core segment in the long run” (Trefis Team, 2014). More so, fast forward to June of 2016, Anheuser-Busch InBev NV and Starbucks have made an agreement …show more content…
The strategy when it comes to introducing a new flavor of iced tea which simply be to focus on the image of the company. The strategy will further depend on the alliances they have built to provide a foundation for long-term success. The primary focus of Starbuck’s marketing strategy is differentiation; to offer high quality products at premium prices. However, our strategy will further reach to break the mold and not entirely rely on word of mouth or our indissoluble reputation but rather more comfortably approaching are audience with more accommodating prices by increasing promotions; thus, we do not fully leave our differentiation strategy behind but we further reach a wider audience to come to our stores, try our products, and be willing to pay a premium price for the product and the …show more content…
Thus we have seen statistic within the growing tea industry along with the upward success of Starbucks as a whole. Thus, after viewing the figure illustrated above we can see other than during the recession; Starbucks has continued to grow revenue. “Starbucks ROE and ROA have been impressive with 29.2% and 17.8% respectively for FY2012. Looking at Starbucks efficiency ratios, Starbucks has gained significant operational efficiency with impressive asset and inventory turnover ratios with a low of 1.51 and 5.4 respectively for FY2013” (Geereddy, 2014). In fact, more recently at the 2015 Starbucks Annual Shareholder’s Meeting, the company reported and revenue of $19.2 billion, which is a 17% growth at the end of 2014 fiscal year (Starbucks, 2015). The following is a standard breakdown of the company’s revenue growth and from 2003 to
In introducing a new flavor of iced tea within Starbucks long line of products has the potential to continue to provide Starbuck’s with brand exposure. “In 2012, there were 160 million Americans who drank tea daily in any form, consuming a total of 3.6 billion gallons, or around 80 billion servings of tea in a whole year” (Trefis Team, 2014). Furthermore, within the third quarter of 2014, it was Starbuck’s CEO, Howard Schultz, who was credit with mentioning “that the company believes the tea market is worth $90 billion and this gives them incentive to transform this segment into a core segment in the long run” (Trefis Team, 2014). More so, fast forward to June of 2016, Anheuser-Busch InBev NV and Starbucks have made an agreement …show more content…
The strategy when it comes to introducing a new flavor of iced tea which simply be to focus on the image of the company. The strategy will further depend on the alliances they have built to provide a foundation for long-term success. The primary focus of Starbuck’s marketing strategy is differentiation; to offer high quality products at premium prices. However, our strategy will further reach to break the mold and not entirely rely on word of mouth or our indissoluble reputation but rather more comfortably approaching are audience with more accommodating prices by increasing promotions; thus, we do not fully leave our differentiation strategy behind but we further reach a wider audience to come to our stores, try our products, and be willing to pay a premium price for the product and the …show more content…
Thus we have seen statistic within the growing tea industry along with the upward success of Starbucks as a whole. Thus, after viewing the figure illustrated above we can see other than during the recession; Starbucks has continued to grow revenue. “Starbucks ROE and ROA have been impressive with 29.2% and 17.8% respectively for FY2012. Looking at Starbucks efficiency ratios, Starbucks has gained significant operational efficiency with impressive asset and inventory turnover ratios with a low of 1.51 and 5.4 respectively for FY2013” (Geereddy, 2014). In fact, more recently at the 2015 Starbucks Annual Shareholder’s Meeting, the company reported and revenue of $19.2 billion, which is a 17% growth at the end of 2014 fiscal year (Starbucks, 2015). The following is a standard breakdown of the company’s revenue growth and from 2003 to