Starbucks is planning to expand its line of products. According to some news reports, now tea is going to be offered by Starbucks in its new Tazo tea store, which is expected to open by the end of this year. Other confectionary items would also be served in the new store along with various tea flavors.
The company also has plans to introduce new items and capture greater share in the market. In addition to current servings, new ways to serve the current items are going to be adopted to attract more customers. The coffee chain is well known for its overall environment and the coffee experience, not just the coffee itself.
To diversify into other product lines, Starbucks is acquiring new brands and expanding its operations. These steps appear to have been welcomed by the investors, as the stock price is stable for the company’s shares.
As the competitors in the market would get the signal of increasing competition and the rivalry would become even more intense among them, we will likely see more active advertising by tea and coffee companies. Starbucks is a well-established brand itself and newer items by the chain are expected to gain popularity in relatively lesser time duration.
Businesses need to evolve with time to meet the changing demands of the market. If one item is popular for a food chain, it might not remain at the same level with the passage of time if the taste of the customers changes. So owners of businesses have to keep the changing trends in consideration before making a decision.
Starbucks has made the decision of this diversification after studying the needs of the target market in detail. So a huge investment is being made to expand into the new area. It is a critical point for the company, as the previous image will have to be maintained in the new portfolio as well.
Starbucks' first tea store is going to be opened near the headquarters of the company. A unique experience is being planned for customers at the store.