marketing hw1

marketing hw1 - Jason Frankel Principles of Marketing...

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Jason Frankel Principles of Marketing Homework 1 1. Starbucks currently has the most opportunity in product development. Market penetration is not what Starbucks needs right now. The economy is in shambles, same store sales are decreasing, and emerging competition signals that Starbucks cannot simply stick with what they have. Diversification could be a good opportunity now, but it is not their best option. They have started to lose some of their loyal customers, and people suspect this stems from Starbucks’ lack of focus on what they know best: coffee. Instead of trying their hand at XM Radio or other new products, they should be focusing on the so-called “Starbucks experience.” Also, those loyal customers that they are trying to bring back do not change what they order from visit to visit. Going for a whole new market with a new product before solidifying what they used to have would not be dangerous and risky. Market development has been Starbucks’ opportunity for growth over the past 10 years or so. They have tapped nearly every market nationally at this
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This note was uploaded on 02/02/2010 for the course MGRL 194 taught by Professor Kirkpatrick during the Spring '08 term at Vanderbilt.

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marketing hw1 - Jason Frankel Principles of Marketing...

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