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According to the material, we define the main problem is that if it is possible for the customers
interested in buying the cold drinks in bottles Cocio in Starbucks cafes? If possible, what effort
should Starbucks to do?

    

    
     


Many people are unaware of the benefits of milk let alone chocolate milk. Studies have been done
separately on each milk and chocolate, but never in combination. It wasn¶t until recently that
scientists began to delve into the benefits of chocolate milk versus water or Gatorade after a
workout. Athletes such as Michael Phelps drew attention to this at the 2004 Olympics when he was
seen to be drinking Carnation chocolate drinks after swims. Studies now show that chocolate milk
can aid the body in recovery, most importantly the muscles. Though not everything is known about
chocolate milk a majority of the research found is conducted and extracted through the study of
what chocolate milk contains.
It is extremely important to refuel after a workout, particularly within the first fifteen minutes after
completing any form of physical exercise. Aerobic exercises and running deplete muscle energy as
they are considered strenuous activities. Studies have shown that chocolate milk is a great recovery
drink as it is less expensive than other recovery beverages or powders.
Chocolate milk has substantial qualities that help improve your overall health. Studies show that
when the two items, milk and chocolate, are combined, the nutritional benefits of each doubles their
effects on your body. 1
Based on the studies about chocolate milk, it shows that it is very good for human health. As the

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people are more and more health concern for the daily food and drink, the market for chocolate milk
will be greater and greater. Therefore it can be a good choice for Starbucks to sell bottled Cocio in
its cafes.

      

Cocio is all natural, made of the best raw materials, made with only milk, sugar and cocoa - no
additives or preservatives of any kind. Additionally, Cocio has an unrefregerated shelf life of 2
years.
Furthermore, the product is independent of cool-storage or other special storage facilities. This is
due to the fact that Cocio has been sterilized in an autoclave after tapping. It is precisely this special
cooking process which adds a rich and full flavor of chocolate to the product - while limiting the fat
content to only two percent.
89 percent of the Danes know Cocio - and that says everything. Cocio is just as well known as
Carlsberg or Lego.
Cocio's qualities: Tastes satisfying a quick and easy snack the feeling of spoiling yourself a
perfect sports drinkbe enjoyed ice cold or warmed as hot cocoa.2
Cocio has the successful experience in selling cold drinks already. And it has strong advantage of
low fat content. So the products have been proved can be accepted by customers and become more
and more popular.

    
 



It is a global brand with high reputation for fine products and services. By organic growth and
acquisitions the chain today has more than 16,700 outlets in more than 50 countries. Starbucks
opened first store in the Europe, Middle East and Africa (EMEA) Region in the United Kingdom
(UK) in 1998, and now offers the unique Starbucks Experience to customers in 29 countries
throughout much of continental Europe, the UK, Ireland and the Middle East. These countries
include Austria, Bahrain, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Egypt, France,
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Germany, Greece, Ireland, Jordan, Kuwait, Lebanon, the Netherlands, Oman, Poland, Portugal,
Qatar, Republic of Ireland, Romania, Russia, Saudi Arabia, Spain, Switzerland, Turkey, the United
Arab Emirates, and the United Kingdom. More than 1,550 stores were open in these markets as of
the end of second quarter, fiscal 2009. 3
Based on the strong brand image and wide outlets, there is a bigger chance to sell to more
customers. Cocio has succeed in Denmark, and also in many other countries, so if Starbucks can
utilize the advantages of wide distribution channel and outlets in different countries, the two
companies cooperation will be streamed into a synergy to have a bigger market share.

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The fact that Starbucks is mainly associated with coffee, some consumers who don't drink coffee
will be less attracted by the store. Many consumers who don't drink coffee usually drink something
similar like tea, so Starbucks has acquired a tea company to make them be able to meet the
customers need better. In conclusion, Starbucks is a company who is willing to expand their product
categories in order to attract more consumers. Therefore it is also a good example for the
cooperation between Starbucks and Cocio. These two companies are going to cooperate to be ready
4
for the European market.
Bottled chocolate milk is fast and convenient for customer to drink. For the customers who want to
drink coffee, they do not have to wait for cook coffee and take chocolate milk in bottle instead. In
our opinion, Cocio might be a good substitute product for coffee in the café, because it is a healthy
drink, and it can be sold with sandwiches, pastries, etc. Facing up with the fierce competition in
food and drink industry, it is important for Starbucks to make its product diversification in order to
meet different customers¶ needs. There are not only people who want to spend a lot of time staying
in the cozy environment and enjoy a cup of coffee, but also there are people who want to save time
and enjoy something energetic to drink. If Starbucks introduce the bottled drink Cocio to its product

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category, it will help them to provide customers another choice in cafes.

  
    

In light of the joint venture history of Starbucks and its success during the process, it could be a
wise decision to introduce bottled chocolate milk drinks in Starbucks cafes. Based on the desk
research we made above, we can see there is a demand from customers. Our suggestions are
Starbucks can make a special menu for foods together with Cocio, or some take-away menu for
foods with Cocio. On the other hand, Starbucks can make some promotion such as advertise, short
term discount and so on to introduce the new product to customer.

      
 



  
   

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 20-30; 31-40 2

   Managers and senior official; Professional occupation; Administrative occupation 3

 Leisure, healthy; Sport, active 2

The variables we choose for segmentation are age, occupation and life style. Based on the above
criteria for each variable, we have altogether 12 segments. Then we decide to choose two segments,
one is age between 20-30 with administrative occupation and sport, active lifestyle, the other is
31-40 with managers and senior official occupation and leisure, healthy lifestyle. The first segment
we chose is for the concern of young people who are active and easier to adapt to new things.
Young people are more willing to have new trial, instead of keeping conventional customs or habits.
At the same time, Cocio chocolate milk is suitable for young people crazy about sports, because it is
helpful for their body, and it can be a supplement to body energy after sport activity. The second
segment we chose is because we also want to attract somehow middle age people with high social
status, but at the same time they are also interested in having fun and enjoy leisure time, meanwhile
they have more consciousness on healthy lifestyle.

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Starbucks wants to sell Cocio products in their cafes. Cocio is a unique chocolate milk drink which
will be a substitute product for coffee or other products. Cocio is a healthy and fashion drink for
young people and grown up people. Starbucks can focus on USP as positioning platform. It should
pay attention on usage of the product, i.e. Starbucks can offer Cocio product to a specific situation,
such as breakfast or lunch along with sandwiches and pastries. It is a healthy and dynamic drink for
the target groups who share the same attitude towards life and health.