Marketing Plan Phase III
Coffee has been a staple in just about every country to this date and normally a coffee shop would provide this beverage. With the different items available from a vending machine why not make one those items coffee. The marketplace is changing from day-to-day and who knows what the next big thing or fad may be. With the demand for coffee at an all-time high why not take advantage of its demand in the marketplace. The best way to provide coffee in a vending machine is fresh, hot, and at a reasonable price. To accomplish this every aspect of this plan is important to ensure that the customer gets his or her money worth out of the product. The correct placement of the machines along with, the right demographic areas are very important to the success of the product.
The product is a vending machine that supplies fresh, hot coffee, and coffee-based products. The machine will bear the logo and color scheme of Starbucks name. It is important that the customers know what they are buying and who they are buying it from. The machine will be able to provide the different flavors or cream used to give coffee the desired taste. The machine will also provide sugar and other low calorie sweeteners. The components of the machine will be constructed of high quality material. Built to with stand the elements on the outside and protect the delicate parts inside. The electrical components will consist of a bill collection system that provides the correct change to the customer once the purchase is complete. The vending machine will include and electrical interface to dispense the cup the sweetener and creamer and last the coffee product. A water connection will also be necessary to make the product hot.
The water line is connected to a heating system that will heat the water and coffee flakes. A safety warning is placed on the machine and on the cup to make the customer aware that the product is hot use caution. This should protect the company from lawsuits concerning burns. The vending machine will have a door that closes when the cup drops and will not release until the process is finished. Depending, on the size purchased by the customer a flow valve will automatically adjust the flow of the product. The flow of the product is consistent with the size of the cup. The system is tested before release to make sure that everything works like it is supposed to. Once test are complete the machines will be deployed to different location determined by Starbucks.
Introducing new products and services not only gives the customers of the business more options but also gives the company new and increased revenue. The marketing mix includes price as one of the main elements because this element can bring in new customers and turn them away. Looking at the other elements in the marketing mix will allow the importance of the product pricing to be reviled. Starbucks is known for the quality of their products so pricing the products from the vending machine to low may have people wondering if it is the same quality. On the other hand the product is coming from a machine so the company will not have to hire as many people to run the vending service so they can afford to price the products a little lower than what is found in the local stores. Finding the right price for the product will allow the company to set the price and focus on other important aspects of the vending business.
Pricing power allows successful companies to raise prices if needed without losing business. Even with that importance many companies do not give this element the attention it deserves. “Fewer than five percent of Fortune 500 companies have a full-time function dedicated to pricing” (Mitchell, 2011). If Starbucks gives pricing the attention it needs then they will be able to stand ahead of their competition. Starbucks will be entering a new market with the vending machines and will also have to...
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