starbucks frappuccino timsi gupta sec b

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A study of Brand extension Timsi Gupta PGP30401 Starbucks Frappuccino

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Page 1: Starbucks frappuccino Timsi gupta Sec B

A study of Brand extension

Timsi Gupta

PGP30401

Starbucks Frappuccino

Page 2: Starbucks frappuccino Timsi gupta Sec B

Content

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

Page 3: Starbucks frappuccino Timsi gupta Sec B

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

Page 4: Starbucks frappuccino Timsi gupta Sec B

Brief History of Starbucks Corporation

Page 5: Starbucks frappuccino Timsi gupta Sec B

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

Page 6: Starbucks frappuccino Timsi gupta Sec B

Birth of Starbucks Frappuccino

• Introduced in 1996• Value Proposition: Ready to

drink

Page 7: Starbucks frappuccino Timsi gupta Sec B

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

Page 8: Starbucks frappuccino Timsi gupta Sec B

Product mix

Page 9: Starbucks frappuccino Timsi gupta Sec B

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

Page 10: Starbucks frappuccino Timsi gupta Sec B

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

Page 11: Starbucks frappuccino Timsi gupta Sec B

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

Page 12: Starbucks frappuccino Timsi gupta Sec B

Frappucino market share

Starbucks Frappuccino49%

Starbucks23%

Monster15%

Market share of Frappuccino in RTD coffee

Starbucks FrappuccinoStarbucksMonsterInternational DelightRock Star RoastedBolthouse FarmsIllyPrivate labelOthers