For the purposes of this case, please refer to the information contained in the case study. In the context of this case, Starbucks is experiencing some brand image (positioning) challenges. We will use the case analysis method for this case study. You will need to identify the fundamental problem facing Starbucks ' management within the context of the external environment (PESTLE & industry/market changes).

Refer to segmenting, targeting, and positioning for this case. Any changes to the marketing mix (product, pricing, promotion, distribution) will impact the positioning of a brand and its attractiveness to current and/or new segments. It is possible to attract new segments at the expense of current segment(s) and customers (i.e., alienating the original segment/customers by changing the perception/positioning of the brand).

1) What competitive threats and market opportunities (growing segments) should management consider? Assuming they want to maintain their higher quality/specialty image, how should they deal with the growing convenience stores offering coffee for $1? Should their growth plans focus on the at-home segment, eat-in segment, take-out segment, new distribution (e.g., Target), other? Explain and include at least one citation here.