Starbucks Marketing Plan

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“We aren’t in the coffee business, serving people.
We are in the people business, serving coffee”

Howard Schultz, Starbucks Chairman and Chief Global Strategist Fortune Magazine, Vol. 149 No. 2

|Title: |Starbucks: “The Non-Coffee Treat” | |Submit To: |P.V. Sundar Balakrishnan | |Completed By: |[pic] |

| | | | | | |Matthew Carmean | |Julie Anstett | |Julia Toochette | |Partner | |Partner | |Partner | | | | | | | |Joel Ennis | |Joey Eaton | |Trang P. Huynh | |Partner | |Partner | |Partner |

Table of Contents

Table of Contents2

Executive Summary3

Managerial Problem4

Situation Analysis4

Company4
Customer4
Competitor5
Complementors5

Strategy (STP)5

Segmentation5
Target5

Product Life Cycle6

Introductory Stage6
Growth Stage6
Maturity Stage7
Decline Stage7

Implementation Plan and Recommendation7

Product7
Price7
Place (Distribution)8
Promotion8

Appendix9

Executive Summary

Starbucks is the leading retailer and roaster for brand specialty coffee in the world. It has over 7,500 stores located worldwide. As Starbucks continues to expand, it will encounter all sorts of new product markets, with new and demanding customers for unique and appealing products. Starbucks has begun by introducing an extension of the Frappuccino line targeted to the non-coffee drinker. Entering this new market, Starbucks faces many challenges from having to compete to retain brand recognition of its primary products, yet increase awareness of its new product line. Our analysis and research of the market have resulted in keys findings as follows:

• The new Frappuccino blended beverages, also known as the Summer Drink flavors will help Starbucks reposition itself in the developing non-coffee iced-beverage market; Starbucks will also need to enhance the product perception to maintain the perceived high quality. Customers of this segment are sensitive to taste and quality of food product and nutritional data.

• With this new line extension, Starbucks will be facing many new competitors such as Jamba Juice, Orange Julius and other local non-coffee iced-beverage providers. Special care must be implemented to maintain Brand equity for it’s primary product, and not become to diversified the current customers seek alternatives.

• Based on our research, we found that the married couples age 25-54 with children to be the primary potential target market.

• Additionally, we have concluded generating awareness about the product via a Web Campaign would be highly advisable. A Secondary approach would be Network TV or Print Media such as magazines, journals, and newspapers.

Managerial Problem

Starbucks strategic goal is to increase market share of the non-coffee drinker; they have begun by introducing an extension of a product line targeted to...
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