Marketing Plan for Juices for Children:Starbuck Stores - Assignment Example

Marketing Plan Author’s Name Institutional Affiliation Marketing Plan for Juices for Children Every business always attempts to increase the sales volumes of its products through the use of different mechanisms. A marketing plan is usually used as one of the mechanisms (Luther, 2008). A marketing plan is a tool that outlines methods, resources and strategies necessary for achieving a business organization’s goals within a specific target market (Loudon, 2006). It entails establishing the organization’s goals while staying within the confines of the organization’s opportunities and resources (Salahie, 2005). This collection is a marketing report for Starbuck Stores which have since become a main family venue. As a family destination, the store receives customers of different ages including the under aged customers. The current products being offered by the store are seen not fit for consumption by the under-aged customers. This has prompted the Starbuck Store to embark on a marketing campaign to promote its new products for these under-aged customers. This report attempts to propose a framework for the store to carry out the marketing exercise. The report comprises of two parts. The first part outlines the proposed marketing plan for the store while the second part provides a comprehensive reviewing mechanism for the developed marketing plan for the Starback Stores. PART A: Marketing Plan: Juices for Children Starbuck Stores 5/23/2011 Executive Summary Starbuck Stores intends to introduce teddy bears as its new product to help correct the perception that it encourages its young customers to drink non recommended coffee products. The introduction of juices for children is expected to be done using a comprehensive marketing plan that is estimated to cost the company a total of $ 1,000,000. Using the plan, the company expects to influence about 70% of its young customers within the first six months upon the implementation of the plan. A comprehensive review strategy for the marketing plan has also been captured in the plan. 1.0: Introduction 1.1: Organization and Product Starbuck Stores is current one of the leading providers of coffee products and a popular family destination. It provides a variety of coffee products to its customers. As a family destination, the stores continue to witness an increase of an under-age customer base. The development has prompted the Stores to consider serving drinks that are recommended for the under-aged customers, especially those that visit the premises unsupervised. So as not to be seen to encouraging the young customers to drink the coffee products that are currently served by the stores, the management has considered coming up with a product that could best satisfy the needs of the under-aged customers whenever they visit the Starback Stores. In this regard, the management through its marketing team has come up with various brands of juices it considers fit for consumption for the kids who visit the business premises. This is therefore a marketing plan to promote the consumption of the juices to be provided by the Stores. This, the management hope will go along way in ensuring that the young customers get the best products and services for consumption. 2.0: Strategic Plan and Focus In order to realize the desired business’s strategic direction, the stores mission, goals, objectives and competitive advantage have been outlined to provide a vision and platform on which the stores’ success can be based. Moreover, a measure of the influence of the products which the organization hopes to offer and the possible environmental commitments associated with the use of the products are equally important in the design of the Stores’ strategic direction and focus. 2.1: Mission Statement Starback Stores endeavor to become the prime one-stop shop that offers a variety of products and services that satisfy consumes of different age brackets. 2.2: Goals and Objectives Starback Stores aspires to attain the highest level of customer satisfaction in relation to the products and services it avails to its esteemed customers. In order to achieve this goal, the Stores ensure that the highest quality standards are adopted at all levels of production and service delivery, so as to ensure a 100% customer protection when using the Stores’ products and services. This guarantee is extended to other sectors that have both direct and indirect relationship with the stores. The Starback Stores is also committed to ensuring good working environment for its employees as well as maintaining better employment opportunities, building a reputable organization culture that is responsible and responsive to the needs of the staff members and esteemed customers. 2.3: Competitive Advantage The Stores’ competencies lie on the large customer base that it currently enjoys, as well as the qualified employees involved in production and service provision. The new products being introduced by the business have been designed by a team of experts who understand the taste and preferences of our young customers. 3.0: SWOT Analysis This part explores the strengths, weaknesses, opportunities and threats to the stores as it attempts to introduce the new products to the market. 3.1: Strengths Being a company that is good at taking opportunities, Starbuck is a highly profitable company with a solid financial base. The strong financial base is evidenced in increases in revenue to $5294.2 million in 2004, representing a 29.9% increase from 2003, as well as a profit increase of $610 million in 2004, representing a 43.7% increase from 2003. Net earnings increased to 46% in the same year. Due to the fine products and services it offers, and with about 9,000 cafes in about 40 countries, the company has attained a global presence and international recognition. Nonetheless, other strengths of the company lies in its well recognized brands, a strong customer base, observe strong ethical values and mission statement, and a respected employer who values its work force. The company as well knows the Adapt-or-Die theory of marketing and is able to roll out new products in a quick way, which translates into a considerable competitive-advantage. With the continuing growth of the coffee market, the company has been in a position to expand its cluster units, there has been intensive in the company’s areas of good performance making it possible to dominate the region leading to considerable financial reward without suffering from cannibalism. The company also focuses on opening stores that have convenient access for pedestrians and drivers this will help the company to capture an increasing share of the coffee market. 75% and above of the company’s stores are situated in the U.S and therefore needs to look for a number of countries in which to open many shops in so that it can widen the associated risks. 3.2: Weaknesses Like any other company, it has several weaknesses. The company relies on beverage innovation and this might affect its growth. In the event that the U.S. store growth decreases, the stock value will become low. Diminishing-return from beverage innovation might result to the company’s negative growth. About 85% of revenue is from its domestic US market. Even though the company has an international brand-recognition, greater revenue needs to be generated from out of the U.S.A as it would suffer greatly if U.S. stores faced stiff competition. The company also dependents on the retail of coffee, this might result to reduced needs for diversification if it is needed. The company’s employee efficiency is poor and the revenue per employee ($71,544-fiscal 2004) compared to the industry average ($110,841) is lower. It is also characterized by lower income for each employee- $5,294 compared to the industry average ($9,500). The company returns is lower compared to those of peers. The company is also faced with management problems in its brunches in other countries such as Japan and Israel. 3.3: Opportunities In 2004, the company created a CD-burning service which gave the customers an opportunity to make music CD. This is an opportunity for the company to attract more customers. Following the emerging new markets for coffee in India and the Pacific Rim, the company can increase its revenue growth by expanding its global operations. Other opportunities also available to the company include; large urban population, rising economy, increase in coffee consumption, co-branding with other food and drinks companies and brand franchising to similar manufacturers and global-loyalty for Starbucks-brand. The recent agreement the company signed with Jim Beam Brands is also an opportunity to market a Starbucks-branded coffee liqueur drink considering the strong revenue potential that is associated with the Jim Beam Brands. 3.4: Threats As the company tries to introduce the new products in the market, it is faced with the following threats. Coffee-the company’s main product may fail to be the most preferred product by the customers, and may face replacement by other beverages. The other threat is the possible competition from rival companies offering same products such as; competitive coffee shops, copy cat brands, restaurants, street carts. 4.0: Market Product Focus 4.1: Marketing and Product Objectives Starbuck Stores has identified its young customers as its target market. The plan aims at influencing 70% of such customers in the next 6 months. This will help the business to attain a market share of 50% in the six-month period. 5.0: Marketing Strategy 5.2: Product Line Starbuck Stores have adopted a product line that has the capacity of creating a positive perception of the new product in the market. The products are expected to be availed to the intended customers in time and that the packaging to be used to remain unique. All this is meant to win the customer confidence and trust. The products will be placed strategically and within the reach of the targeted customers who visit the business premises. 5.3: Promotion The promotion strategy for the product is designed to help win the confidence of target customers while increasing the business’s sales volumes. The promotion strategy adopted for the new product involves advertisement through various media such as radio, internet, magazines, newspapers and billboards. 5.4: Pricing The company has settled for a competitive pricing strategy for the products and will take into consideration the financial capacities of the target customers while taking into account the cost of production. The company understands that the target customers are under-aged and mostly depend on their parents and guardians for financial support. 5.5: Marketing Opportunity Starbuck Stores marketing opportunity lies in the fact that the business has succeeded in penetrating the market and wound therefore explore available options such as joint and new ventures as well as extending its product network. 6.0: Required Resource and Capabilities 6.1: Expense Distribution 6.1.1: Initial Expenses It is estimated that the start up capital for achieving the business’s goals and objectives in relation to the new product amount to a total of $ 1,000,000 which includes production costs, brand development, design, fees, construction, equipment, advertisement and furniture. A breakdown for each in terms is provided below: a) Production costs: Th cost of producing products is important since it has an impact on good’s quantity and quality. It is estimated to cost a total of $ 180,000 b) Brand development: This is one of the major strategies the business intends to use to penetrate the market. It is estimated to cost $ 50, 000 c) Design: Design of the product is important as it determines how appealing the product will be to the target consumer. It is estimated to cost a total of $ 60,000 d) Fees: At the preparation, production, advertizing and marketing stages, certain fees are expected to be paid for purposes of carrying out the exercise. Such fees are estimated to cost the business a total of $ 160,000 e) Construction: with the introduction of a new product in the market, there is need to expand the premise to accommodate more customers. The expansion entails construction and is estimated to cost $ 150, 000 f) Equipment: New equipment must be purchased to enhance production, marketing and the general provision of the product. Purchasing of such equipment is expected to cost a total of $ 150,000 g) Advertisement: This is the core mechanism that the company shall use in penetrating the market to popularize the product among the target customers. It is expected to cost the business a total of $ 170,000 h) Furniture: There e is need to provide a conducive and comfortable environment for the customers. This will mean that the company purchases pieces of furniture which are estimated to cost a total of $ 80,000 7.0: Implementation Plan 7.1: Gantt chart Gantt chart Format Task Responsibility Duration Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Reviewing the Plan & Approval Management One Month                     Creating Working Prototype Management& Marketing Team 2 Months. Infrastructure development Management, Marketing Team & Contractor 2 Months Brand Development Marketing Team 2 Months Advertising Marketing Team 2 Months. Direct marketing Marketing Team 4 Months. 8.0: Marketing Performance and Review Mechanism Starbuck Stores take pride in its team of qualified and experienced staff to provide the necessary monitoring and evaluation of the marketing exercise as it begins. 8.1: Quality Control Such mechanisms will revolve around quality control in accordance with the provisions of relevant consumes laws and legislations of the country. The products to be availed to the customers shall be those that have been tested and approved by the relevant quality control body. 8.2: Risk Analysis This will include beefing up security within and outside the premise to ensure that the customers and employees are safe at all times. There will also be good keeping records to ensure that purchasing and receipts are done correctly. In will also entail conducting periodic audits. The process of risk control will also capture the content of the items used to advertise the product through the preferred media. 8.3: Evaluation and Review Analysis The evaluation and review processes with be performed wholly within the scope of the objectives and goals of the marketing plan. It will be based on meeting the marketing expectations of the business as well as satisfying the needs of the target customers. The sales analysis will be conducted after ever week and marketing budgets adjusted accordingly. Customers will also be surveyed periodically and their take on the products captured and recorded, collated analyzed. In the event that the plan is noticed not to be moving in the right direction, a review of the plan will be carried out where necessary. PART B STAKEHOLDER FEEDBACK A number of stakeholders may be attracted by the suggested marketing-plan. Among those stakeholders who are expected to sign-off on the plan include: i. Company management ii. Company employees iii. Young customers iv. Parents and Guardians v. Government Authorities vi. Lending Institutions The planning team consulted the opinion of one of the young customers concerning the content of the marketing plan and below is his views; “I appreciate the fact that the company has deemed it necessary to introduce new products in the market that it hope will have appositive influence on its under-aged customers. However, I am disappointed that as one of the young customers who frequent the business premises will not have a chance to enjoy my favorite drink- coffee.” This is indeed an important comment coming from one of our esteemed customers. There is therefore need to factor in this concern into the proposed marketing plan. One way of doing this will be to include a section dealing with a awareness creating among the target customers on the importance of appreciating the company’s move. There is also need to encourage parents and guardians to openly discuss with the young stars on the importance of the company’s move. Otherwise this concern by the customer will be considered at the review stage and is not likely to affect the implementation process of the marketing plan. References Loudon, D. (2006). Market Planning Best Practices: An Assessment of Success Stories. New York: Didactic Systems. Luther, W. (2008). Marketing Planning Guide: Tables and Diagrams. New York, NY: Cengage Learning. Salahie, M. (2005). Market Planning: Center for Development Economics, Developing Countries: New York: Williams College. Read More