starbucks coffee icecream competitors

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Competition

The primary competition for Starbucks in this new endeavor consists of existing Ice Cream Scoop Shops. The main competitors in this arena are Cold Stone Creamery, Baskin-Robbins, and Ben & Jerry’s.

Cold Stone Creamery

Founded in 188, Cold Stone Creamery offers premium ice cream, yogurt and Italian sorbet with numerous mix-in combinations at over 00 stores in 46 states.




Baskin-Robbins

Founded in 145, Baskin-Robbins offers ice cream cones, sundaes, shakes, and other treats at over 4,500 locations around the globe. Baskin-Robbins serves more than 150 million ice cream cones per year in the United States.

Ben & Jerry’s

Founded in 178, Ben & Jerry’s offers ice cream cones, sundaes, smoothies, and more at 5 locations in the United States.

Other smaller competitors in the Ice Cream Scoop Shop market include independent ice cream and gelato shops.

By entering the ice cream scoop offering market, Starbucks has more competitors than before. Previously, Starbucks competed with Peet’s Coffee and other independent coffee shops in the gourmet coffee market.

Competitive Position

Starbucks is the first company to enter the hybrid market of offering gourmet coffee and ice cream scoops simultaneously. The fact that they will continue to specialize in offering gourmet coffee while adding the service of offering ice cream gives Starbucks a first mover advantage in this new hybrid market.

Ben & Jerry’s offers some coffee flavored frozen drinks and some hot coffee drinks, but their product offering does not compare with the vast coffee drink offering at Starbucks. Also, while traditional scoop shops offer a wide variety of ice cream flavors, Starbucks will focus on offering only Starbucks coffee ice cream flavors. Another factor that differentiates Starbucks from their Scoop Shop competitors is that Starbucks is known for their coffee first and foremost. Offering coffee drinks is Starbucks’ main business. The addition of ice cream scoops will not take away from their existing coffee drink business.

Market Share

Starbucks’ market share in the gourmet coffee drink market is quite substantial. Starbucks’ market share in the ice cream scoop market is rather small. However, Starbucks’ market share in the new hybrid market of gourmet coffee and ice cream scoops is near 100 percent. Of the coffee shops that offer gourmet coffee, Starbucks is the only one that offers ice cream scoops. Of the scoop shops that offer cups of coffee, very few offer gourmet coffee. Those that do offer gourmet coffee have a very limited selection of drinks.

Barriers to Entry

There are logistic barriers to enter the hybrid market of simultaneously offering gourmet coffee and ice cream scoops. The setup costs associated with installing the refrigerated display cases are one barrier. Whereas some coffee shops may not have the necessary capital to invest in refrigerated display cases, Starbucks is financially strong enough to deem these costs negligible. For coffee shops to begin offering ice cream, they must form distribution channels to transport the ice cream to their locations. To transport the ice cream to Starbucks locations, Starbucks may use pre-existing distribution channels that deliver their ice cream to supermarkets.

Other barriers to enter this new hybrid market include the issue of product promotion. The promotion costs associated with a new product may be cumbersome to some smaller coffee shops. Starbucks’ financial strength, brand recognition, and customer community allow for smooth promotion of new product and service offerings.

Future Competitors

Future competitors in this hybrid market may be other coffee shops, such as Peet’s Coffee, starting to offer ice cream scoops at their locations. At the same token, future competitors may include scoop shops starting to offer gourmet coffee.

Starbucks’ brand equity and first mover advantage into this hybrid market provide them with a strong position in this new market.



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