The alternatives to the primary decision the company is facing. Introduction: SB started as a local coffee bean retailer and has now grown into the largest coffeehouse company with its outlets spread all over the world in various countries. It has now added other delicacies like pastries, sandwiches to its menu and has been serving the customers with some best hot and cold coffees. One of its brands, Frappuccino suffered due to recession but then contributed between 15-20% in the total turnover of the company. It is a registered trademark of SB. It has been thinking of various strategies to extend this brand and some other plans are also in work. It is exploring the feasibility of offering customized Frappuccino options to its customers but then it would lead to longer queues and frustration among customers since Frappuccino has a longer preparation process. The alternatives available to SB are to offer customized Frappuccino or offer the items which are currently there in the menu. Although, its brand Frappuccino suffered at the beginning of 21 s t century due to recession but this drink reported annual sales of $2 billion. Therefore, the company sees it as a profitable option which would contribute to its profitability if something new is offered with a mix of traditional touch. Also, more and more customers have become health conscious and hence prefer low calorie, transfat free items. Keeping this in mind, it thought of offering the customers “how-you-want-it-Frappuccino” but the option does not seem feasible because this drink has long preparation process and it would take even more time if consumers are given the option of customizing their favorite drink. The company also has an alternative of including new bottled versions, “wacky” ingredients to improve its sales. It can also think about training its staff in such a manner that they can somehow reduce the preparation time of Frappuccino so that the customers are served as per their need within the given time.

10th Edition

ISBN: 9780135199893

Author: Solomon

Publisher: RENT PEARS

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Solution Summary: The author describes SB's alternatives to the primary decision of offering customized Frappuccino.