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Starbucks proposal final

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Information about Starbucks proposal final
Business & Mgmt

Published on March 16, 2014

Author: GeorgeARodriguez01

Source: slideshare.net

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Utilizing The Facility's Drive Thru on a 24 hour Basis: Starbucks can generate new revenue by tapping into a underserved segment of the market By: George Rodriguez

TABLE OF CONTENTS The Problem The Opportunity Strategic Solution & Its Advantages Cost & Resources Conclusion Works Cited

THE PROBLEM • Several factors have led to unstable stock prices and investor expectation's over the last several years such as: • Competition from other retailers (i.e. McDonalds) & coffeehouses (Panera) • Changes in the economy during 2006-2009 Source: www.Wall StreetJournal.com

THE OPPORTUNITY • A trend increase in the amount of coffee drinking in the “out- of-home” segment • In today’s global economy individuals are up working at all times of day & night • The current lack of 24- Hour Drive thru service locations Source: www.Starbucks.com

STRATEGIC SOLUTION & ITS ADVANTAGES INCREASE THE NUMBER OF 24/7 DRIVE THRU LOCATIONS •Serves an untapped and or underserved segment of the market •Increases the availability/convenience of the product •Does not require intense and or major investment •Does not require a restructuring in price •In today’s global economy, individuals are up working at all times such as:  Entrepreneurs  Police Officers  EMTs  Employees of major manufactures  CEOs  Professors

COST AND RESOURCES •Distribution & Place: • The firm should only see an increase in direct cost due to labor hours, for a maximum of 5 hours per employee utilized •Promotion: •Advertising: The new concept of 24/7 hour service will be promoted via social media to customers using  Facebook  Twitter  Instagram  Personal emails of current customers

COST AND RESOURCES •Promotion continued: Public relations: the Starbucks communications department will issue a press release with details of the extended hours at select stores. This will result in the following: • Publication of news articles • Starbucks will share the news with local companies/industries that operate 24/7 Personal selling: Baristas in all Starbucks stores will inform their customers directly

CONCLUSION • By utilizing its facility's drive-thru on a 24 hour basis Starbucks can generate new revenue with minimal additional cost by doing the following: • Utilizing a facility which currently has a drive thru • Implementing promotional strategies utilizing engagement media and direct marketing via the firms baristas/front line employees

WORKS CITED • Seaford, Bryan, Robert Culp, and Bradley Brooks. "Starbucks: Maintaining a Clear Position." Journal of the International Academy for Case Studies, 18.4 (2012): 35-38. • "Percolating in the Workplace." OfficeSolutions, 22.3 (2005): 8-7. • "Starbucks Coffee Company." Starbucks Coffee Company. Web.15 Mar. 2014 • The Wall Street Journal. Dow Jones & Company. Web. 15 Mar. 2014

WORKS CITED • Seaford, Bryan, Robert Culp, and Bradley Brooks. "Starbucks: Maintaining a Clear Position." Journal of the International Academy for Case Studies, 18.4 (2012): 35-38. • "Percolating in the Workplace." OfficeSolutions, 22.3 (2005): 8-7. • "Starbucks Coffee Company." Starbucks Coffee Company. Web.15 Mar. 2014 • The Wall Street Journal. Dow Jones & Company. Web. 15 Mar. 2014

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