Starbucks' product portfolio consists of seasonal offerings and daily staples designed to meet the needs of its large customer base. Starbucks' product assortment consists of premium- priced, hand-roasted and -crafted coffees and teas, packaged and fresh food items, and a variety of grab-and-go beverages. In addition to selling a variety of coffee and tea accessories, they license their trademarks to retailers, grocery stores, and national foodservice accounts. Starbucks also markets its products under the brand names Teavana, Tazo, Seattle's Best Coffee, Starbucks VIA, Starbucks Refreshers, Evolution Fresh, La Boulange, and Verismo, which are part of its portfolio of companies. In addition to their standalone retail locations, Starbucks also maintains storefronts within popular retail establishments such as Target and Publix. Starbucks uses coffee beans in the production of coffee and in the manufacture of other products to maximize revenue through diversification. Additionally, the company offers packaged food and a variety of packaged coffee grounds. During the mooncake festival in China, Starbucks offers its mooncakes, retaining existing customers and attracting new ones. Starbucks' mugs are designed in accordance with seasonal or classic fashion trends and are crafted from high-quality materials. Starbucks also sells tea, which operates in a sector with a high growth rate but a small market share. Since the company is well-known for its coffee, their tea may be considered inferior compared to rival brands such as Twinings. Consequently, it is evident that the company does not rely solely on one product to dominate the market. Starbucks obtained a substantial market share in the tea sector by acquiring the Atlanta-based retail chain Teavana. Coffee beans are the primary link between product categories, as they are the primary raw material used to manufacture multiple Starbucks products. Starbucks' range of products is united by their superior quality. The company invests in the quality of its products in order to meet and
exceed customer expectations. Consumption is another similarity between the products, as both coffee and tea are typically consumed from a cup. The hospitality industry is an untapped market where the company can make a significant impact. Starbucks operates smaller storefronts or even kiosks in a number of hotel chains, including Double Tree by Hilton. However, they can take it to the next level by placing the company's coffee products in hotel rooms, thereby making coffee the beverage of choice for hotel guests. Offering Starbucks coffee as an alternative to standard hotel room coffee, even for a nominal fee, would generate a new revenue stream for the company, increase market share, and heighten consumer brand recall.
References How is Starbucks a good example of diversification? Food News. (2021, August 27). Retrieved February 8, 2022, from starbucks-a-good-example-of-diversification/ Published by S. Lock, & 24, N. (2021, November 24). Starbucks revenue by product . Statista. Retrieved February 8, 2022, from revenue-by-product-type/ Team, T. (2013, September 6). Starbucks has big plans to diversify beyond coffee . Forbes. Retrieved February 8, 2022, from diversify-beyond-coffee/
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