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Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang...
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Transcript of Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang...
Chih-jen ShiauJeroen Verleum
Robert Jan van LeijdenPei-chia Hsu
Seon Hoo KimYoung Eun Kang
STARBUCKSNatural Tea Blend Frappuccino
Table of Contents
Situation StrategyObjectives Action Plan
SITUATIONAL ANALYSIS
MARKETING OBJECTIVES
MARKETING STRATEGY
MONITORING AND CONTROL
CONTINGENCY PLAN
Introduction to STARBUCKS
• World’s leading retailer for purchasing, roasting and selling whole bean coffees and specialty coffee.
• Starbucks Coffee Company was founded in 1971. It opened its first store in Seattle’s Pike Place Market
• 8500 retail locations across 32 countries worldwide. (statistics as of May 2005)
• The company is headquartered in Seattle, Washington and employs about 74,000 people.
• The company recorded revenues of $5294.2 million during the fiscal year ended
Situation StrategyObjectives Action Plan
CEO Howard Schultz
The man who made Starbucks the number one specialty coffee brand.
Situation StrategyObjectives Action Plan
Starbucks Mission Statement
Provide a great work environment and treat each other with respect and dignity. Embrace diversity as an essential component in the way we do business. Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. Develop enthusiastically satisfied customers all of the time. Contribute positively to our communities and our environment. Recognize that profitability is essential to our future success.
Intro C. Identity2C. Identity1 Culture
Situation StrategyObjectives Action Plan
Customers
Product and Company
• A Starbucks Coffee house has approximately 33 million customers each week
• They see Starbucks as a second home• They enjoy the “Starbucks Experience”• Age of 15 - 45
• offering the finest coffee worldwide and maintaining their principles while they grow. They see Starbucks as a second home
• Mainly sell specialty coffee (Arabica coffee)
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Coffee Beverage
Whole Bean coffees
Food items
coffee related items
STARBUCKS’ Products
STARBUCKS’ Products
Frappuccino
Non fat milk, soy based products, Confectionary, ice cream
1984 Italian Style
Espresso Caffè Latte
Cappuccino
Barista
Drop coffee
Intro C. Identity2C. Identity1 Culture
Powerful Symbol for Positive Planetary Change
Color of STARBUCKS
Intro C. Identity2C. Identity1 Culture
Situation StrategyObjectives Action Plan
Competitors
Channel
The Coffee Bean,Krispy Kreme + Dunkin’ Donuts. Small local coffeehouses, supermarkets, Jamba Juice, Orange Julius Fast food chains such as McDonald’s and Burger King
Starbucks Coffee stores – retail Supermarkets – for canned products
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Sales, revenue and profit goals:
Sales goal: 256.76 million units total
Revenue goal: 950 million dollars
Profit goal: 149.1 million dollars
Increase share of Frappuccino in total Starbucks sales and revenues
Driven by opening more stores in US, marketing and adding a new customer group
Larger profits due to increased sales
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“Develop enthusiastically satisfied customers all of the time.”
Expand the market to tea consumers
Give tea the image that it is healthy
Increase the consumer acceptance of tea products at Starbucks
Customer goals:
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Overall Strategy:
• Two additional beverages on the Natural Tea Blend• Synergy effect from the star product: Green Tea Frappuccino• For non coffee drinkers • Seeking more healthy alternatives to coffee
6 months, 5 million dollars
STP
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Psychographic: lifestyle: health conscious people who seek non-coffee beverages
TargetPrestige, high quality“Starbucks experience” (surroundings)Location convenience
PositioningHealth appeal but at the same time deliciousWith highest quality possible. Premium specialty tea
Product
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Natural tea blend green tea, chamomile tea, jasmine tea“Starbucks experience”
Product
Tall: $3.20 grande: $3.70 venti: $4.20 At the average of $3.70
Place
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You can always find a Starbucks on the corner: numerous retail stores provides convenience
Promotion
main advertisement: websites (ex. yahoo and google)in store sample testing.
others: magazines
Promotion : Advertisement
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Jasmine Chamomile
Health Starbucks Frappuccino Tea Blend
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• We allocate the marketing investment budget, which is 5 million dollar, as follows:
• Advertising costs are 3.5 million:– Website: 1.75 million (50%)– Testing: 1.05 million (30%)– Magazine: 0.7 million (20%)
• R&D costs are 0.5 million.• Marketing research costs are 1 million.
Allocation of marketing investment
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Marketing Budget
Break even point (BEP) for the Frappuccino line
Sales: 191.74 million units. Revenue: 709.43 million dollars
Return on marketing investment (ROMI)
ROMI = 2.594 times (259.4%)
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Methods of monitoring
Sales check (by monthly)
Customer Survey (post-purchase)
TasksMONTH
Nov Dec Jan Feb Mar April May June JulyFinalization of plan
and corporate communication
Product Development
Product testing
Focus groups
Segment test (monitor)
Contact advertising agency
Plan promotion plans
Design distribution strategy
Employee training
Finalization period
Launch product
Monitor and check