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?
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