Starbucks’ New Launch

Starbucks has always been famous for its brand-imaged coffee, marketing its products to caffeine fanatics. However, as the distribution of consumer coffee choices diversifies, Starbucks is attempting market penetration, branching out into the food industry. In an attempt raise profits, the company has substituted its pastries for baked goods from LaBoulange in American franchises. Food has long been known as the “achilles heel” (Sara Senatore, An Evolution of Starbucks Food), of Starbucks. Food sales have remained stable for the past three years. According to Sanford Bernstein (analysts), the introduction of Starbucks’ new lunch and dinner products from LaBoulange, hopes to increase food profits in the U.S from 19% to 30% by Fall of 2014. The main objective of this economic expansion is to diversify Starbucks’s brand beyond its coffee reputation. As more and more coffee shops are evolving in the market, Starbucks needs to increase its gap and maintain its number one position in the coffee shop industry.

Starbucks to introduce La Boulange into certain locations

Nonetheless, bringing food into the picture may not benefit the company in ways they are anticipating. Consumers are looking for quick, easy and convenient ways to get coffee. With this in mind, Starbucks must recognize what brought them to the top of their market board. The original concept they built their brand on and continue to strive upon since 1971 is coffee. Sometimes, simplicity is the ultimate sophistication. Should Starbucks should stick to the status quo and focus on what they are competent with and well known for? Or should they fight to attain a new, unknown market that may potentially be unprosperous and unattainable?

 

 

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