Business Strategy Case Study: Relaunch of Fiat 500

On 4th July 2007, Fiat Auto the Flagship division of Fabbrica Italiana Automobili Torino (FIAT) re-launched its heritage brand the Fiat 500. It was exactly 50yrs after the launch of Fiat 500 on 4th July 1957, which not only helped Fiat in post World War-II recovery but also provided mass motorization to Italians. Luca De Meo, CEO, Fiat Auto, on the re-launch occasion stated that “This is the car that gave ordinary Italians four wheels for the first time; that transformed a country and a company.” In its 18yrs of career between 1957 and 1975, 3,893,294 Fiat 500s were built & sold, which provided millions of Italians and Europeans individual mobility. Post 1970 with beginning of free trade in Europe, Fiat’s market share eroded continuously. Foreign companies such as Volkswagen, Renault, Ford, Peugeot, Honda and Toyota became prominent players in the Italian car market threatening survival of Fiat. The prime Continue reading

History and Background of Mother Dairy

“MotherDairy” is one among the single largest brands of milk in India as well as in Asia, marketing about 2.2 million litres of milk per day. Mother Dairy commands 40% market share in the organized sector in and around Delhi, primarily because of consistent quality and service – whatever be the crisis – floods, transport-strike, curfew etc. Mother Dairy, Patparganj, Delhi, is presently manufacturing & selling around 8.5 lakh litres of tonned milk through bulk vending shops. Mother Dairy, Delhi is an IS/ISO – 9001:2000 and Hazard Analysis Critical Control Points (HACCP) and IS-14001:1996 Envoirnment Management System (EMS) Certified organisation. Mother Dairy was the first Dairy in the country to implement ISO-14031 (Envoirnment Performance Evaluation) project. The comany’s Quality Assurance Laboratory is ISO/IEC- 17025:1999 certified by NABL (National Accreditation Board for Testing and Calibration Laboratory), Department of Science & Technology, India. This provides assurance to the consumer in respect of Quality Continue reading

PESTLE Analysis of Starbucks

Starbucks started off as a small coffee shop in 1971. The founders consisted of Gerald Baldwin, Gordon Bowker and Ziev Siegl who exchanged their ideas and launched their first outlet at the Pike Place Market in Seattle. In the early 1980s Howard Schultz joined Starbucks and has later felt the need that Starbucks needed to market themselves. He wanted to create a brand image that would attract customers and help them to differentiate their coffee outlet from other competitors. Schultz visited Italy and was ‘impressed with their popularity and culture.’ He thought it would be a good idea to bring the espresso bars, lattes and mochas to Seattle. Throughout the years Schultz has managed to differentiate Starbucks, creating a very strong brand image in the most unique way in American’s minds, gaining its competitive advantage through the comforting physical environment that they adapt encouraging the lounging experience. Schultz successfully embedded Continue reading

Case Study on Marketing Strategy: Starbucks Entry to China

Starbucks is one of the largest coffee chains in the World. The company has a unique style and atmosphere in their coffee houses. We chose China because it is the world’s most populous country with over 1.3 billion people live there and second-largest country by land area. After 1978, the country’s economy were underwent dramatic changes which involved such relief as permission for entrepreneurs to start up their own business and opening the country for foreign investment. It is obviously that Starbucks managers decided to take advantage of such opportunity to expand their business into new region. To evaluate Chinese market the company used several steps of analyses. Who might be interested in buying coffee in China? To introduce the Starbucks brand the company begun to distribute coffee for free to guests in several Beijing’s hotels in 1994. This initiative indicated that there was a strong demand for their products, Continue reading

Business Model Analysis of Starbucks

Starbucks Coffee company is headquartered in Seattle, Washington. It began in 1971 with just one retail store at Seattle’s historic Pike Place Market. Now it has become the leading brand and retailer in the world. Starbucks went public on June 26, 1992. The main aim of Starbucks is to become the leading brand and retailer of finest coffee in each of its target markets nationally and internationally by selling the best quality coffee and related products, and by providing high class customer service. Starbucks purchases and roasts a high quality whole bean coffees to sell them with fresh, rich-brewed espresso beverages, different varieties of pastries and coffee related accessories and equipment’s. Moreover Starbucks also sells coffee and tea products strategically through other channels such as supermarkets and non traditional retail channels such as United Airlines, Marriott International, Barnes & Noble bookstores and Department stores. More than quality coffee, Starbucks features Continue reading

Case Study: Success of Starbucks Mobile Payment Application

Starbucks redefined highly competitive coffee shop business and successfully created an uncontested market by turning the simple coffee drinking experience into a way of life experience by drastically redefining the coffee shop environment by adding music, Wi-Fi, relaxed seating and luxurious interiors. Till Starbucks disrupted the traditional coffee shop market most of the focus was on the price, location and quality of coffee shops. Starbucks innovative value proposition includes wide variety of mostly coffee based menu along with other types of drinks that catered to wide range of audience who are willing to pay top buck for the luxurious and relaxed interiors that are perfect environment for socializing with friends and relax. Another important aspect that Starbucks focused was on the quality of customer service with an exclusive aim of maximum customer delight and they meticulously recruited and trained the best talent in the industry that has added huge value Continue reading