Starbucks Ice Cream (Devepoling and Managing Products)

Starbucks sells its ice cream from 1996, under a partnership of Dreyers Grand Ice Cream Inc. In 2009 Starbucks announced an licencing agreement with Unilever , for the manufacturing, marketing and distribution of the Starbucks ice cream in U.S and Canada. Unilever's capabilities as the leading global manufacturer of ice cream will straighted super-premium position of the company in the U.S and Canada.


Starbucks Coffee is made with only high quality arabica coffee, purchased and roasted in accordance with Starbucks standards. "Unilever's industry - leading innovation and commitment to social responsibility with brands like Ben&Jerry's are well aligned with our values and vision for the business" said Gerry Lopez. Ice cream market in U.S and Canada is worth about 17 billion, Unilever estimates.



The new line of Starbucks ice cream has the fallowing flavors:
caramel macchiato, java chip frappuccino, mocha frapuccino and coffee. The ice cream is not sold in Starbucks stores because many of them don't have freezer. Customers can find the new products in groceries and supermarkets.


I personally love Starbucks ice cream because of its richness and flavor; Java Chip Frappuccino is one of my favorite ice cream.
Starbucks will never stop bringing innovation and new experience to its customers.

Vivanno Products(Developing and Managing Products)

On July 15, 2008 Starbucks introduced its new products Vivanno Nourishing Blends. Developed with a strong nutritional goal in mind, the drinks provide at least one serving of fruits, 16 grams of protein and 5 grams of fiber with 270 calories and no artificial colors.

Vivanno line is one way Starbucks takes in consideration customers' ideas for great tasting and healthy products. They are very receptive to the customers' messages. On MyStarbucks Idea everyone can tell his opinion about the company and its products. There are many specialists that answer and are in contact with those willing to share their experience.

Vivanno drinks can be also customize. By adding espresso to the Banana Chocolate Blend, the drink provides the bold, smooth flavor of espresso with no extra calories. Matcha Green Tea Powder added to the Orange Mango Banana Blend gives the beverages the antioxidants of green tea with only 40 additional calories.
The way Starbucks develop and manage products is interesting to follow. They have the sense of bringing inovation and receptiveness to their business.

Starbucks' Food (Develping and Managing Products)

Even though Starbucks' primarily product is coffee, the company is focusing on improving their food products as well. The company introduced its food line from 1991, but it was always secondary to the coffee.

In 2007, the company was finally ready to serve a high-quality food to its customers. Starbucks made huge investments in new high-speed, high-heat ovens. The ovens developed by companies including TurboChef combine microwave and convection technology and can be used for both cooking and reheating.

Pastries were long brought from different bakeries, only in 2007 the company created its own receipts and made the cookies taste the same in the whole country. Starbucks wants to offer high quality food next to its high quality coffee. "We are determined to serve food our coffee can be proud of", said Mr. Barr, director of food research and development.

The company brings new healthy food products like : "Starbucks Perfect Oatmeal", "Chewy Fruit Nut Bar", "Apple Brown Muffin", "berry Stella" and many others. Starbucks food products are addition to the existing products. They want to keep the customers in their stores, giving them the opportunity to eat and drink coffee in the same place.

Starbucks' "Treat Receipt" Sales Promotion

Starbucks' "Treat Receipt" promotion was a version of Happy Hour. Between June 30 and September 29, 2009, customers were able to purchase more coffee for less money. Those who purchased a coffee before 2 p.m. could get any Grande cold drink for $2.00 after 2 p.m. by just showing the receipt.

It was a good deal especially for those customers whose drinks after 2 p.m. were fancy coffee, like frapucciono or any other complex drinks; This way they could save more money. I think "Treat Receipt" was a good promotion because it encouraged people to double purchasing; as well as it made them try complex products. The idea of offering cold drinks in a hot season was a good one , bringing profit to the company.

Personal Selling

As defined in our Marketing book, personal selling represents the direct communication between a sales representative and one or more prospective buyers in an attempt to influence each other in a purchase situation.

Personal selling is very important to those companies which sell complex and pricey products because more time is needed to be spend on giving information and explanation about the details and benefits of the product.

Starbucks sales representatives are the baristas, which are in charge of making and selling the coffee. Even though Starbucks primarily product is coffee, the company focuses on improving and providing a high quality service. Therefore, the baristas are trained a long time before they start working. Anyway, the type of the product is an important factor in determination of the need of personal selling.

Starbucks Via Taste Challenge (Sales Promotion)

Starbucks Via instant coffee is the most recent change brought by Starbucks. The new product was introduced on September 29th, 2009.

This time the company used an interesting sales promotion: "Starbucks Via Taste Challenge". Between October 2nd and October 5th, the customers were invited to taste the new coffee by being challenged to differentiate the new instant coffee from a fresh brewed one.

In addition to the possibility of being challenged and enjoying some Starbucks coffee, all the participants received a coupon for a free Tall brewed coffee for their next visit as well as $1 off a Starbucks Via purchase.

In conclusion, Starbucks used a fancy sampling method. They let customers tell their opinion about the new product. Many participants couldn't tell which one is the instant coffee, this fact proving the high quality of the product. The company's purpose was to show that Starbucks Via is not just an instant coffee, it's Starbucks.

The success of the sales promotion is not known, the company announced that the selling of the new instant coffee exceeded their expectations.

Satrbucks' (Red) Fights AIDS in Africa (Public Relations)

In October 2008 Starbucks announced multi-year partnership with (Red).
Between November 2008 and January 2009, Starbucks donated 5 cents from the sales of Red Exclusive Holiday beverages: Peppermint Mocha Twist, Gingersnap Latte and Espresso Truffle to the Global Fund, established in 2007 to fight AIDS, tuberculosis and malaria worldwide.


The company said that the partnership with (Red) it's a way of showing the company's responsibility for the planet, community and people . In addition, it gives costumers the opportunity to participate in the action of doing good.




After selling the (Red) beverages, Starbucks included the (Red) Card, from January 2009 to December 31st. Each time a costumer uses his card , the company gives 5 cents to the Global Fund. This way both the company and the costumers are getting involved in helping the planet.


In one month of the partnership, Starbucks accumulated funds for 1.4 million doses of medicine to save lives in Africa.
I think, that's a good way a company can show its responsibility and commitment for the planet. Doing business responsibly, that's what Starbucks focuses on many times. They create the link between their company and people from the entire world. In general, company's social action are always supported by its costumers.

Starbucks' Advertising

On May 2009, Starbucks created an advertising campaign that spread lots of messages on a common theme: "It's not just coffee, It's Starbucks". The ads were written on the newspapers and magazines.

Starbucks used a non-traditional style of advertising because they wanted to tell their stories. Therefore, lots of the ads were one page long, bringing information about the way they select the beans, emphasizing on the quality of their products.

For example, the ads "If your coffee isn't perfect, we'll make it over. If it's still not perfect, make sure you 're in a Starbucks" and " Beware of a cheaper cup of coffee. It comes with a price", are emphasizing the quality of their coffee and fight against the competition.

On that period McDonald's was promoting it's line of McCafe coffee drinks saying that they can offer an espresso for less money: "four bucks is dumb. now making espresso."

Starbucks wanted to communicate that they offer more than coffee, they bring value, history and information to their costumers. As a result, consumers are not paying only for coffee, they are getting Starbucks Experience and satisfaction.

Did these ads work?

My opinion is that the ads' messages were not able to convince a price sensitive costumer to go and buy a cup of coffee for over $4. While, for the regular costumers these messages could encourage and prove value. These ideas of bringing more information and being opened to the public show a tentative of closeness to the costumers; the company invite their costumers to be a part of their world.

Starbucks' Pricing Concepts

A regular cup of coffee at Starbucks costs around $2, and a "fancy" cup of coffee costs over $4.

Why paying this price?

Starbucks differs from other coffee companies because it offers value to its costumers. Starbucks sells not just coffee, but also image, status and satisfaction. I think this is the case of a prestige pricing, which means charging a high price to help promote a high quality product.

Starbucks often talks about serving coffee ethically traded, paying farmers high prices for the coffee beans, reducing the environmental footprint and supporting the communities where they do business. They give information to the public related to their ways of doing business. They make costumers realize the company's involvement in society.

In addition, the company focuses on "Starbucks Experience", by offering professional service and friendly atmosphere to its costumers. The company has a variety of 87, 000 types of beverages, and it sells coffee beans from 4 continents.

In conclusion, Starbucks means image, value, variety and premium coffee. That's the reason why their prices are high and the costumers pay them.

Strabucks Adjusting Prices (Pricing Concepts)

At the end of August this year Starbucks announced that the prices will be raised for "complex beverages" like frapuccino, and lowered for the simpler beverages like plain cup of coffee.
The prices changed on average between 10-30 cents. "This is as a part of our comprehensive approach to providing the value while balancing our business responsibilities" said spokeswoman Valerie O'Neil.
Raising prices in the middle of a big downturn it's not such a crazy idea says J. Miguel Villas-Boas, marketing professor. Even though seams paradoxical, it is a strategy premium company often take.
This is the first time Starbucks decreases prices. The price of the most popular beverages -12 - ounce lattes and brewed coffee decreases 5-15 cents.
Starbucks' strategy of reducing prices of the regular drinks, shows how the company is approaching price sensitive costumers. For those who buy frapuccinos and other "fancy" drinks, the raising of few cents might not be an issue. While for the costumers who purchase plain coffee and lattes, the decreasing of prices could be an important stimulus.
Another reason of decreasing prices for the simpler drinks can be the company's intention to encourage the selling of simpler beverages, that requires less time to make. This way the costumers will spend less time in line, and the baristas will be able to provide a faster service.