New Strategy Plan for Starbucks

In: Business and Management

Submitted By elissacjq
Words 3438
Pages 14
Organisation name: Starbucks Corporation

Starbucks Corporation
Report on the new strategy for Starbucks Corporation
Terms of reference
To investigate on the new strategy and to make appropriate recommendations as requested by the management consultant on the 23 September 2015
Procedure
1) Research has been done on the internet to justify the new strategy from 1 October 2015 to 22 October 2015.
Findings
3.1 Alternative strategies relating to market entry/ substantive growth/ limited growth/ retrenchment for your customer.
A limited growth strategy is a safer and smarter way to do business as aggressive growth strategy requires a large amount of risk such as entering new geographical markets. Limited growth is a lower risk mode of growth as it needs less start-up funds which include advertising and promotion. (Sherman, 2015)
The strategy proposed was the implementation of Starbucks happy hour to give customers a promotion of half price on all drinks when they buy any tumbler or mug with the exception of the $1 reusable cup available in the US and Canada (Kosh, 2013). The promotion in this case will focus on the Starbucks goal to get 5 percent of beverages made in stores to be made in personal tumblers. Previously, Starbucks created a goal to achieve 25 percent of customers using their tumblers for beverages made in their store and will not be able to achieve this goal based on previous records (Starbucks Coffee Company, 2015). This promotion will then only qualify for the customers who buy their own tumblers. The customers that buy tumblers during that period will also have a free Starbucks card with a preload of 10 dollars in the card.

In 2009, only 1.5% of Starbucks drinkers used their tumbler and only 1.8 percent in 2010 and 1.9% in 2011 and back to 1.5% in 2012 and 1.8 % in 2013. Based on these records, Starbucks has never reached 2% before…...

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