In addition to international expansion, Starbucks executives push the importance of the consumer experience. Essentially, the firm is dynamically changing its impressions by always offering something new. SBUX achieves this goal in a number of ways, including seasonally available beverages, drive-thru accessibility, and channel development.
Historical developments began with seasonal beverages, such as the best-selling pumpkin spice latte. Consumers were once greeted with what they know and were encouraged to taste selections of flavored beverages over time. Employees recognize the positive impact a wide variety of choices has on a consumer, and are constantly dreaming up new flavor offerings. Likewise, iced beverages are offered year round but are affected by seasonality. However, Starbucks’ upper management focuses on growth in the company’s channel development.
Starbucks management is positioning the company as the last restaurant the modern consumer will need. It’s doing this via the channel development segment. Channel development is this firm’s method of expanding the scope of its reach in consumers’ lives. Products that contribute revenue to channel development include packaged coffee beans and grounds that consumers may purchase and make in their homes. Tazo is Starbucks’ tea offering, which often is packaged in individual portions (similar to Starbucks’ brand K-Cups, made for Keurig coffee machines). Plus, partnerships with Coca-Cola have allowed Starbucks to sell prepackaged beverages, including flavored ice coffee, the double shot (a canned espresso beverage), Starbucks Refreshers, Ethos bottled water, and a variety of other household items. Growth in single-serve products has yielded 10% growth in this segment.