This is a paper on the possible brand extension by Starbucks. It gives a brief history of brand extension as have been done by other multinationals and looks at the possibility of Starbucks venturing into various other products within their their business. It also gives the approach that is needed when having a brand extension.
Brand Extension
The World's leading coffee beverage maker, Starbucks, is sending shock waves in the global markets with its new products and extension of existing ones considered as the driver for growth. The company also intends to leverage on evolution of mobile commerce to drive its sales because more and more people use smart phones in their endeavors (Kaushik, 2012). Mobile commerce is especially important for the company's instant brewed coffee that is ready to make having being a success story in the previous years. The company also intends to cash-in on its Verismo coffee maker machine whose performance can be attested to in the previous years since it was introduced. Starbucks intends to sell more of the coffee machines. This it undertakes to actualize by using online portals as the medium of change. That decision is informed by the fact that more and more consumers brew a la Starbucks Espresso in their homes using the coffee machine. The company intends to engage in mobile commerce to grab a slice of the ever growing mobile user segments who have taken to using their mobile phones to transact. The heat from Dunkin Donuts and McDonalds has compelled Starbucks to open new fronts to mobile wallet offerings. Its rivals have tried keeping up with the competition by also trying to go one step ahead in this crowded market segment (Kaushik, 2012).
Starbucks brand extension initiatives has prompted it to unveil a revamped global brand identity. The brand's familiar logo has shifted from being green and black to solely green. The outer circle of the logo that had the words Starbucks encrypted on it has been ditched. This has given the siren figure more prominence (Gemma, 2011). The logo shift is a new blueprint for profitability. The company other than being a coffee company and retailer intends to have other products with Starbucks on it but no coffee in it. The new logo has been rolled out in new destinations where it appears on the chain's exteriors, uniforms, and in-store material. Its ceramic mugs have also been replaced by ones with a slimmer design (Gemma, 2011).
As part of brand extension Starbucks has come up with Starbucks Coffee Liqueurs. Starbucks has become so popular in the market because it has high-class persona, making people who try it feel like they are experiencing something indulgent that is hardly found anywhere else. This has also applied to this (coffee liqueurs) Starbucks' extension (De Mesa, 2005). This brand comes in a simple bottle with short glass lid. The logo on this bottle is centered and is found on more than one spot. This is intended to enable customers know it's a product from Starbucks. This product is made with 100% Starbucks coffee which entices the market which has fallen in love with the Starbucks brand (De Mesa, 2005). This extension has great reviews because of its simple and brand oriented outlay. The product has had great success because Starbucks chose to extend its brand to something its market likes. The marketing research adduced that at least 50% of their clientele also drink coffee liqueur. The coffee liqueur is in beverage form. This helps make their brand identification the same (De Mesa, 2005). Starbucks seems to have gone for a product line that is similar to product they are renowned for and enjoyed by almost a half of their biggest fans. This confirms that they knew their market really well before engaging in brand extension since it is pointless extending your brand to something that doesn't relate to whatever else you are selling. This has a potential of confusing the consumer and eventually ruining the relationship you have built with them (De Mesa, 2005). The reason why Starbucks and other companies that engage in brand extensions are successful is because they understand the market dynamics and know what their consumers like best. They normally choose wisely when putting their label on any brand.
The coffee liqueur is sold in 750 ml bottles. The way it is packaged shows that three elements are in play namely the liquor, coffee, and Starbucks (De Mesa, 2005). The shape of the bottle is a replica of a cocktail shaker with a functional lid that is also used in measuring the shots. The stars in Starbucks logo are echoed in reverse color band around the bottom of the bottle lid (De Mesa, 2005). Dark espresso replaces the traditional silver color of the shaker to evoke the deep, rich coffee for which Starbucks is famous.
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