Starbucks Rilasso:A Brand Extension

David CromerBlake ManoshWhitney MartinezCathy Wu

Starbucks is committed to a role of environmental leadership in all facets of our business.

Brand Architecture

Bringing Enjoyment to your life, regardless of the pace.

What’s next?

Starbucks Rilasso

VisionWe want the benefits of coffee to extend beyond the obvious.  We want everyone to know what coffee can do for your skin.  Our new line aims to bring the Starbucks experience into a different part of your day.

THE products

Target Market

Treat themselves when they get the chance

College educated

Family oriented

Willing to pay more for organic or natural

products

Active lifestyle

Customers with“design for less”

mindset

Investing in body care products

Already distribute Starbucks products

1600 Stores in 47 states

Market Share Objectives

Product Segment Sales $ Market ShareGained (%)

Sales $ Total Sales for Line Probability Value

Scenario 1 Body Scrub $57,100,000 1% $571,000

Bar Soap $506,000,000 0.50% $2,530,000

Body Wash $733,400,000 0.50% $3,667,000 $6,768,000 25% $1,692,000

Scenario 2 Body Scrub $57,100,000 2% $1,142,000

Bar Soap $506,000,000 1% $5,060,000

Body Wash $733,400,000 1% $7,334,000 $13,536,000 30% $4,060,800

Scenario 3 Body Scrub $57,100,000 4% $2,284,000

Bar Soap $506,000,000 2% $10,120,000

Body Wash $733,400,000 2% $14,668,000 $27,072,000 40% $10,828,800

Scenario 4 Body Scrub $57,100,000 5% $2,855,000

Bar Soap $506,000,000 2.50% $12,650,000

Body Wash $733,400,000 2.50% $18,335,000 $33,840,000 5% $1,692,000

Total: $18,273,600

Expected value of Sales

Expected Sales Value: $18,273,600

Product Sales $ Price # of Products Cost per unit Total Costper Product

Total Cost

Scenario 1 Body Scrub $571,000 $14.99 38,092 $1.60 $60,947.30

Bar Soap $2,530,000 $8.99 281,424 $1.49 $419,321.47

Body Wash $3,667,000 $12.99 282,294 $2.15 $606,932.26 $1,087,201.02

Scenario 2 Body Scrub $1,142,000 $14.99 76,184 $1.60 $121,894.60

Bar Soap $5,060,000 $8.99 562,848 $1.49 $838,642.94

Body Wash $7,334,000 $12.99 564,588 $2.15 $1,213,864.51 $2,174,402.04

Scenario 3 Body Scrub $2,284,000 $14.99 152,368 $1.60 $243,789.19

Bar Soap $10,120,000 $8.99 1,125,695 $1.49 $1,677,285.87

Body Wash $14,668,000 $12.99 1,129,176 $2.15 $2,427,729.02 $4,348,804.09

Scenario 4 Body Scrub $2,855,000 $14.99 190,460 $1.60 $304,736.49

Bar Soap $12,650,000 $8.99 1,407,119 $1.49 $2,096,607.34

Body Wash $18,335,000 $12.99 1,411,470 $2.15 $3,034,661.28 $5,436,005.11

Total $13,046,412.26

Expected Costs

Expected Sales Value: $18,273,600

Sales $18,273,600

Less: COGS $5,436,005 Less: Slotting Allowance $2,625,000 Less: Promotions $2,400,000 Less: Labor & Equipment $3,500,000

Gross Profit $4,312,595

Return on Investment: 30.89%

Gain From Investment $18,273,600 Cost of Investment $13,961,005

Return on Investment 30.89%

Rilasso’s future?

Strategy for the future

Bringing Enjoyment to your life, regardless of the pace.

scents

Extending Rilasso

Lotions

Hair Care

Facial Care

The Brand Family in 5 Years

Burts Bees model

All natural products

Extend our line into products beyond our basic three

Questions?