Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang STARBUCKS Natural Tea Blend Frappuccino

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 &

SITUATION ANALYSIS

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


CEO Howard Schultz

The man who made Starbucks the number one specialty coffee brand.


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


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)

Intro CultureC. Identity Future

STARBUCKS’ Products


Coffee Beverage

Whole Bean coffees

Food items

coffee related items



Frappuccino

Non fat milk, soy based products, Confectionary, ice cream

1984 Italian Style

Espresso Caffè Latte

Cappuccino

Barista

Drop coffee


Powerful Symbol for Positive Planetary Change

Color of STARBUCKS



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


MARKETING OBJECTIVES


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


“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:


MARKETING STRATEGY


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


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


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


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


On websites:

Promotion : Advertisement


Jasmine Chamomile

Health Starbucks Frappuccino Tea Blend


EXECUTING & MONITORING


• 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


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%)


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

THANK YOU

Documents

Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang STARBUCKS Natural Tea Blend Frappuccino