MKT501 Marketing Management Assignment 1 Solution Fall 2014

Starbucks Corporation, doing business as Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world with 20,737 stores in 63 countries and territories Starbucks locations serve hot and cold beverages, whole-bean coffee, micro ground instant coffee, full-leaf teas, pastries, sand witches and snacks.
Starbucks has achieved growth in different ways. Around 2000 Starbucks identified a niche in the market of cafes, serving fresh gourmet coffee directly to customers. A loyal customer base was created in Seattle. In the second phase of growth Starbuck applied this successful formula to other cities in America, and finally across globe. In the third phase of growth Starbucks initiated to increase its sales by offering its existing base of customers compilation CDs, a Starbuck visa card that allowed customers to receive points toward Starbucks purchases whenever they use it and offering its customers a high speed wireless internet connection at its outlets known as hot spots through a deal with T mobile. In the fourth stage of expansion Starbucks entered into a totally new market of grocery stores Frappuccino bottled drink; Starbucks brand ice-cream and the purchase of tea retailer TAZO tea.
Question Requirement:
You are required to categorize or classify the four phases of Starbucks growth initiatives into Intensification strategies (as discussed above) by substantiating your answer with valid.


First Phases of Starbucks growth:

According to given Real life scenario First phase of Starbucks growth initiatives into product development strategy of Intensification strategies.

Second Phases of Starbucks growth:

Second phase of Starbucks growth initiatives into Diversification strategy of Intensification strategies

Third Phases of Starbucks growth:

Third phase of Starbucks growth initiatives into Market penetration strategy of Intensification strategies

Fourth Phases of Starbucks growth

Fourth phase of Starbucks growth initiatives into Market development strategy of Intensification strategies