Ch.11 Developing and Managing Products

"New products are important to sustain growth, increase revenues and profits, and replace obsolete items."

Developing new products and to be up to date plays a vital role in today's fast moving business world. Innovation is the key of developing new products. Starbucks is considered as the most developing company in the specialized coffee industry. Starbucks provides its customers with new exciting beverages,food items and a unique store experience throughout the year. Coffee is nothing new to the world, and basically all the items Starbucks offers do exist already. But nevertheless, Starbucks makes it happen to update their own company to a overall new experience by creating new product lines,adding new products to existing product lines, improving or revisions of existing products, re-positioning products and innovating customer experience.

Starbucks just created its new blond coffee roast to enter the established market of "light blend" coffee drinkers. New or existing customers are now able to enjoy all the Starbucks coffee beverages brewed with the lighter coffee blend. Previously, the coffee company introduced breakfast items and petites that did not exist before as well.

The coffee house adds new products to its products lines throughout the year. For example, Starbucks extents its line every season by introducing specific seasonal drinks such as the pumpkin spice latte or peppermint mocha.

The Starbucks ready brew instant coffee is one of Starbucks improvements of already existing products. "Other instant coffees taste flat and lifeless. Starbucks VIA® Ready Brew is different – it’s full-bodied and flavorful, just like the Starbucks® coffee you know and love."  Starbucks guarantees the innovative quality of its instant coffee by promising a packet of the traditional house blend in case of dissatisfaction.

Another way Starbucks develops new product is by re positioning. For example, Starbucks frappuccinos which are actually just ice coffee drinks appeal more to younger people after Starbucks added a couple of flavors such as strawberry,vanilla or chocolate mint. The frappunccinos have become to a more icy milkshake drink that attracts mostly younger children.


Overall, Starbucks has been constantly introducing new products. However, in Starbucks CEO Howard Schultz opinion Starbucks was not always innovating new products ...