INSTRUCTION: READ THE ARTICLE\"COFFEE INNOVATION FROM STARBUCKS\", AND ANSWER AL

Question

INSTRUCTION: READ THE ARTICLE"COFFEE INNOVATION FROM STARBUCKS", AND ANSWER ALL THE DISCUSSION QUESTIONS CITED BELOW: Coffee innovation from Starbucks Most innovative thinkers define two separate forms of innovation- incremental and radical. In 2003, Harvard professor Clayton Christensen used the terms sustaining and disruptive to describe innovations. He wrote: "Some sustaining technologies can be discontinuous or radical in characters, while others are incremental in nature. What sustaining technologies have in common is that they improve the performance of established products Most technological advances in a given industry are sustaining in character Disruptive technologies bring to a market a very different value proposition than had been available previously The innovation test of incremental or radical innovation is applied to Starbucks via Ready Brew Coffee that ropresent incremental innovation" a 5-star innovation Star No. I represents packaging innovation. It is innovative to sell high quality "ready brew" coffee in individual serving sizes. And with savvy marketing. Starbucks has achieved individual serving success tar No. 2 represents meeting a high consumer need. Starbucks introduced individual- erve coffees during recessionary times at a price point below an Americano-allowing ustomers to enjoy the same flavor at an affordable price. tar No. 3 represents processing technology. "An innovative product cannot be introduced the general marketplace before the technology is available at an affordable price. arbucks Via Ready Brew Coffee represents behind-the-scenes flavor processing chnology to capture those precious "top note" flavors ar No. 4 represents incremental innovation. Starbucks definitely hit the ball out of the l park with incremental Mavor innovation d Star No. 5 represents the ability of an innovative product to change consumer havior. In this category, Starbucks via Ready Brew Coffee will clearly create a consumer ment that regularly drinks high quality, single serve coffee separated trom the social work of their neighborhood store. ummary, Starbucks Via Ready Brew coffee represents incremental innovation because ther improves something that already exists, making it "new and improved," or it nfigures an existing form or technology to serve other purposes. It can also be said its incremental innovation included four new individual lavors: Cinnamon Spice, lla, Mocha, and Caramel. And, the flavored line extension also met the consumer and for their favorite flavors while working and traveling alone.

Explanation / Answer

4. A. Considering the innovation movement the three innovation activities which were implemented in Starbucks via Ready Brew coffee were

- the packaging innovation- the coffee was ready to serve in hold/cold water and was sold in single serve sizes which was new in the market. Such single serve sized packets with eay to make and have coffee had not been introduced in the market before which attracted the customers who wanted the unique flavour of their coffee available and instantly and any place.

- they introduced this product at a reasonably low price with the taste of a high quality and expensive product . And during the time of recession this became an advantage to the consumers hence attracting them to high level.

- to attain the top note flavors, the brand used technology for processing the flavors. This process technology helped them to capture the flavors variety that they understood to be most likable by the customers.

4. B. The two 5 star innovation statements are- represents packaging innovation and represents meeting a high consumer need. Both these statements show that it is an incremental innovation because this type of innovation refers to the enhancement or upgradation of the product and here the product has been upgraded using the technologies and idead to provide a single serve coffee packet and which provided unique flavour that they are famous for in a reasonable price. Hence innovation were made in terms of packaging and flavour which will be categorised under incremental innovation.

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