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BBUI402: Principles of MarketingModule Lecturer: Prassanna Pathmanathan |

Tutorial | 2 | Tutorial Name | Starbucks Coffee - Case Study |

STUDENT ID | STUDENT NAME | 2011127 | Dinali Cooray |

1. Coffee has become popular in UK because flavoursome coffee is within their reach rather than the grey unappealing liquid like before.

2. The facts that would influence my choice of coffee bar are based on the : * Affordable prices * Location * Good comments heard about the place
It will be a high involvement decision because of the specific details that are looked into.

3. Starbucks expansion of offerings include : * Introduction of Wi-Fi services for laptops and personal digital assistants * In-store music service which enables the customer to choose from 250,000 tracks. The customers can order the tracks they like and have them burnt into a CD in the shop which in turn can be purchased. * A limited range of indulgent and healthy eating options.

4. Other locations for coffee bars can be outlets within offices and universities.

5.
SWOT analysis

Strengths * Large market share in the industry * Different kind of atmosphere | Weaknesses * Aggressive competition could cause other problems such as financial problems. | Opportunities * Sale of coffee packets in supermarkets. | Threats * High competition with other coffee chains. |

PEST analysis Political Environment | Relationship between US and UK. | Economic Environment | The recent recession has affected starbucks and all the other chains. | Social Environment | Consumer preferences may change from coffee to another beverage. | Technological Environment | Use of technology can improve operational work. |

Porter 5 forces

i. Threat of new entrants – One new coffee bar will capture 30% of the sales of