Starbucks New Market Entrance Starbucks' strategic goal is to increase market share of non-coffee drinkers; they started by introducing a product line extension aimed at this segment. To ensure market growth, Starbucks has repositioned one of its current products, the Frappuccino line, this product has been extended to include 3 new flavors; Double Chocolate Chip Crème, Vanilla Bean Crème and Strawberries & Crème, introduced during the summer months. Faced with the challenge of entering a new competitive market, Starbucks must compete to maintain brand recognition of its primary products while simultaneously increasing awareness of its new product line. Situation Analysis Company Starbucks is the leading retailer of roasted and specialty branded coffee in the world (see Figure 1 ). It has over 7,500 stores, which are located in the United States, Canada, Europe, Asia, and the Middle East. In addition to premium coffee drinks, Starbucks sells bottled coffee drinks, such as the Frappuccino® and Starbucks DoubleShot™. Starbucks revenues grow 20% a year and they open about three stores every day. Starbucks is able to run its successful operations by having consistent market growth. It achieved this by financing itself through cash flow rather than resorting to franchising, selling shares or increasing leverage. His strategy for success is to “cover an area completely.” This approach aims to "reduce delivery and handling costs, shorten customer lines at individual stores, and increase foot traffic for all stores in an area," which gives Starbucks a competitive advantage.3CustomerAt first only yuppies used to go to Starbucks, but it now attracts a much broader demographic of customers, including people of different ethnic backgrounds and ages. Today, Starbucks counts an astonishing 25 million visitors to its stores every week. This success is due to the combination of high quality drinks and friendly environment with good music, comfortable chairs and good services. This creates the “Starbucks experience” that customers can relate to and which leads to brand loyalty. Furthermore, Starbucks must take into account the cultural preferences of customers in all its locations around the world to maintain customer loyalty. (See Figure 2) See also Figure 3 for influences on consumer purchasing decision making. Competitor To ensure further market growth and be competitive, Starbucks is developing new products for non-coffee drinkers. Starbucks provides its current customers and attracts new customers not only with quality products but also with variety of flavors customers desire (see figure 3).