starbucks frappuccino timsi gupta sec b

A study of Brand extension

Timsi Gupta

PGP30401

Starbucks Frappuccino

Content

• About the company• Product category• Starbucks Frappuccino• Market share of Starbucks

Manufacturer: Starbucks Corporation

• Founded in 1971 in Seattle, WA• Largest coffeehouse company in the world• 21,536 stores in 65 countries and

territories, including 12,218 in the United Sates, 1,716 in China, 1,330 in Canada, 1,079 in Japan and 808 in the United Kingdom

Brief History of Starbucks Corporation

Ready to drink coffee US Market

2009 2010 2011 2012 2013 2014 2015 2016 20170.00

50.00

100.00

150.00

200.00

250.00

300.00

350.00

400.00

450.00

500.00

199.30 205.70238.60

286.50

350.40378.00

399.20417.80

433.60

RTD coffee market in US

Off-Trade volume in mn liters

Source: GMID

Birth of Starbucks Frappuccino

• Introduced in 1996• Value Proposition: Ready to

drink

“We were so confident of our product that we didn’t even test-market it,” -Schultz in his book, Pour Your Heart Into It.

Product mix

Starbucks market share

72%

15%

Market Share of Starbucks Corp in RTD coffee

Starbucks Corp

Monster Beverage Corp

WhiteWave Foods Co

Rockstar Inc

Campbell Soup Co

Illycaffè SpA

Private Label

Others

Starbucks growth

2009 2010 2011 2012 2013 20140.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00 81.80 83.2079.20

70.60 68.7072.30

USA

Frappucino growth story

2009 2010 2011 2012 2013 20140.00

10.00

20.00

30.00

40.00

50.00

60.00

70.0066.60 65.80

59.10

53.40

46.4049.30

RTD Coffee

Frappucino market share

Starbucks Frappuccino49%

Starbucks23%

Monster15%

Market share of Frappuccino in RTD coffee

Starbucks FrappuccinoStarbucksMonsterInternational DelightRock Star RoastedBolthouse FarmsIllyPrivate labelOthers