How Will the Initiative Affect StarBucks Sales - Assignment Example

The initiative was arrived at after a trial run at the Mississippi River Pulp Mill, which confirmed the recyclability of coffee cups despite having a plastic lining when they recycled 6,000 pounds of coffee cups successfully. This initiative not only won Starbucks points from environmentalists but is also set to affect sales positively (Tice, 2012). First, the reusable cups will cost customers $1. When they lose, crush or forget to carry them back the next time they buy coffee that will cost them another $1.

Statistics indicate that, in the US alone, 233 million persons are old enough to consume coffee (Tice, 2012). Assuming each buys a reusable cup only once, that will translate to about $65 million worth of cups alone. Then, that would serve as free advertising, since consumers will keep the reusable cups with them, in their kitchens, offices, and cars. That has more potential of being closer to consumers than billboard advertisements.