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Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang PowerPoint PPT Presentation


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STARBUCKS Natural Tea Blend Frappuccino. Chih-jen Shiau Jeroen Verleum Robert Jan van Leijden Pei-chia Hsu Seon Hoo Kim Young Eun Kang. Strategy. Action Plan. Situation. Objectives. Table of Contents. SITUATIONAL ANALYSIS MARKETING OBJECTIVES MARKETING STRATEGY - PowerPoint PPT Presentation

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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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STARBUCKS

Natural Tea Blend Frappuccino

Chih-jen Shiau

Jeroen Verleum

Robert Jan van Leijden

Pei-chia Hsu

Seon Hoo Kim

Young Eun Kang


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Strategy

Action Plan

Situation

Objectives

Table of Contents

SITUATIONAL ANALYSIS

MARKETING OBJECTIVES

MARKETING STRATEGY

MONITORING AND CONTROL

CONTINGENCY PLAN


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INTRODUCTION

&

SITUATION ANALYSIS


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Strategy

Action Plan

Situation

Objectives

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


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Strategy

Action Plan

Situation

Objectives

CEO Howard Schultz

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


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Intro

C. Identity1

C. Identity2

Culture

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.


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Strategy

Action Plan

Situation

Objectives

Customers

  • 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

Product and Company

  • 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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Intro

C. Identity

Culture

Future

STARBUCKS’ Products


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Intro

C. Identity1

C. Identity2

Culture

STARBUCKS’ Products


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Intro

C. Identity1

C. Identity2

Culture

STARBUCKS’ Products

Frappuccino

Non fat milk, soy based products,

Confectionary, ice cream

1984

Italian Style

Espresso

Caffè Latte

Cappuccino

Barista

Drop coffee


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Intro

C. Identity1

C. Identity2

Culture

Powerful Symbol for Positive Planetary Change

Color of STARBUCKS


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Strategy

Action Plan

Situation

Objectives

Competitors

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

Channel

Starbucks Coffee stores – retail

Supermarkets – for canned products


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Intro

C. Identity1

C. Identity2

Culture

MARKETING OBJECTIVES


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Intro

C. Identity1

C. Identity2

Culture

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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Intro

C. Identity1

C. Identity2

Culture

Customer goals:

“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


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Intro

C. Identity1

C. Identity2

Culture

MARKETING STRATEGY


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Intro

C. Identity1

C. Identity2

Culture

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


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Intro

C. Identity1

C. Identity2

Culture

STP

Psychographic:

lifestyle: health conscious people who seek non-coffee

beverages

Target

Prestige, high quality

“Starbucks experience” (surroundings)

Location convenience

Positioning

Health appeal but at the same time delicious

With highest quality possible. Premium specialty tea


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Intro

C. Identity1

C. Identity2

Culture

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


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Intro

C. Identity1

C. Identity2

Culture

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


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Intro

C. Identity1

C. Identity2

Culture

On websites:


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Intro

C. Identity1

C. Identity2

Culture

Promotion : Advertisement

Jasmine

Chamomile

Health

Starbucks

Frappuccino Tea Blend


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Intro

C. Identity1

C. Identity2

Culture

EXECUTING & MONITORING


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Intro

C. Identity1

C. Identity2

Culture

Allocation of marketing investment

  • 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.


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Intro

C. Identity1

C. Identity2

Culture

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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Intro

C. Identity1

C. Identity2

Culture

Methods of monitoring

Sales check (by monthly)

Customer Survey (post-purchase)


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THANK YOU