Starbucks Verusmo 580

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Objective:
The objective for Starbucks is to launch the new single-serve coffee maker-Verismo 580 successful and gain more market share. To achieve this objective, Starbucks should determine the target market of the product, the positioning strategy, and what marketing mix would be most effective for Verismo 580.

Market Demand:
1) The United States is the world’s largest coffee consumer (Liu, 2012). According to the statistics analyzed by Symphony IRI Group, the U.S. coffee sales increased 19%, reaching $ 4.52 billion in 2011 (Perez, 2012). As there is a great demand of coffee in the United States, the demand of coffee maker is climbing, too. 2) In recent years, people in United States paid more attention to the homemade concept. Homemade food became a word standing for healthy life-style. More and more households preferred homemade items rather than buying them, such as pizza, and coffee. 3) Facing the high efficiency and far space of modern lift style in large cities, the office works usually eat their breakfast hastily. Some of them even don’t have time for buying breakfast. Coffee maker provide a faster way for them to grab a cup of coffee early in the morning.

Situational Analysis:
1) Industry Analysis:
In 2010, the sales of U.S. coffee maker products was around $ 24.6 million, which is significant when comparing to other countries throughout the world. In the U.S. coffee maker market, there are three types of machines: Automatic Drip, Single-Serve and Espresso (Marketing scope report of coffee maker, 2011). Based on table 1&2 in Appendix, we can see that the largest market share goes to Automatic Drip machines, accounting for 75% of the market, whereas Single-Serve accounts for 19%. However, there is a growing trend of Single-Serve and Espresso products, especially for Single-Serve coffee makers, reaching 36% annually from 2006 to 2010. Therefore, Verimos 580 would cater the need of the huge marketing potentials. 2) Competitor...
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