Sunday, November 24, 2013

Ch. 11 - Developing and Managing Products



Starbucks La Boulange New menu

If you visit starbucks store, you might see a showcase which has many breads and mufins. It's called 'LaBoulange'. Starbucks' main menu is drinks(coffee), but many people are looking for something to eat with their drinks(coffee). Many customer want to eat a piece of bread, mufin, and cookie. As a result, those are selected as a friend of Starbucks coffee. I think this addition of La boulange menus is 'Additions to Existing Product Lines' starbucks sold bread(Existing Product lines) Starbucks make several kinds of new breads by using existing product lines and creating new product lines.


  - Promotion video: http://www.starbucks.com/promo/laboulange


Why they make new bakery menus instead of new drinks?



 

'09 Starbucks' gross profit decreased about 6% by being laurnched new coffee brands, because Starbucks sold only coffee at that time. For improving, Starbucks' CEO changed their mind. Starbucks started to invest $750 milions for bakery and related industries, and three years later, Starbucks got amazing sales margin. Statbucks' Q3 sales increase about $15 million than last year, also Q3' gross profits increase about 20% than last year. Starbucks overcome crisis of managing by imprving product line.

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