Having read Starbucks Plans Health Stores, by Adelle Tepper, I am still analyzing whether it’s a good idea for Starbucks to acquire Evolution Fresh – a juice company. We all know Starbucks is more recognized for its coffee, so will it have a successful transition on being recognized for juice? Will their strategies be effective?
Starbucks is currently trying to expand through a new brand: with the acquisition of Evolution Fresh. There’s no doubt that health and wellness could be great for a business. However, Starbucks already has their target market. Starbucks has already positioned their brand. Integrating juices with their already established products will affect these factors.
The implementation of the new products may undercut the integrity of the Starbucks brand for coffee purists, as John Quelch stated in his article. Additionally, Starbucks enters a market where there’s already competition, such as Jamba Juice. Starbucks has to see whether consumers will still line up with the same eagerness for juice as they do for coffee.
Bibliography:
http://blogs.hbr.org/quelch/2008/07/how_starbucks_growth_destroyed.html
http://www.cbsnews.com/8301-505123_162-57323200/starbucks-buys-evolution-to-juice-profits/