Starbucks Market - Business Plan Example

XXXXXX Number: XXXXXXX XXXXXXX XXXXXX XXXXXX of XXXXXXX XX – XX – 2010 Starbuck’s Market Plan Part A: Developing the Market Plan: Objectives: Starbucks has developed its objectives based on the current position in the markets. The objectives of the company are as follows: a) Increase in the profit levels, with an aim to increase the net profits to 12.5%, as well as increasing the profits to 15% over ten years b) Develop a differentiation and reach out to the younger generation. Here the company aims at developing products to cater to the young customers c) Increase the customer loyalty and improved return customers (Starbucks). SWOT Analysis: Strengths Strong Brand Highly Profitable International Recognition Excellent Employer Strong and Ethical mission and vision Innovativeness Weaknesses Over reliance on the beverage innovation Focused mainly on the US markets Lacking attempts for international outlets Overly dependent on the retail of coffee Poor or lacking employee efficiency Low returns on equity when compared to competition Opportunities Higher chances to improve the revenue growth by increasing the global operations Higher consumption of coffee Joint ventures, and co branding with other companies in different countries. Increasing urban population Threats Chances of change in the taste of customers from coffee to any other beverage Increasing costs of dairy products High levels of competition Reduce in the retail sales due to the economic conditions. Marketing Opportunities: Based on the company’s objectives, there are a few possible opportunities that are available for the marketing. The options include (in order of preference), product extensions, new ventures and joint ventures. The company has a strong product line at present and will be able to benefit a great deal by choosing product extensions (Kotler and Keller, Marketing Management). These will be simpler to market, as the brand name continues on as well as this will help increase the current extensive product menu as well. As seen in the opportunities as well, Starbucks can move into joint ventures which will assist the company expand the business globally more effectively. Recommended Marketing Strategies: Based on the company and the current position, it is clear that Starbucks has a strong product profile and the company is very ethical and has also developed products to meet the needs of the children as well. Keeping in mind the current interest in healthier lifestyles, the following recommendations can be made to the company for their marketing. Also a detailed explanation of the marketing mix has also been provided below. The recommended strategy for the company is to develop product extension. Here the company can effectively introduce new products to the current menu. The main aim and target audiences here are the younger customers. Hence the company can introduce the products to meet the needs of these individuals. The following details in the marketing mix helps provide a better understanding on the inclusions that the company can make to their menus as a product expansion. Marketing Mix: Product: In terms of the products, the company needs to focus on introducing new kid size drinks. These drinks need to be less caffeinated, less sweetened and also need to met the health norms. The products should be available in low calories for young adults below (Hakansson and Waluszewski). Since it is clear that healthier options like fresh fruit juices or other nutritional choices will not help the customers stay away from the high calories (Rudelius). Hence here the company can take an initiative by introducing the same products however with low fat and calories for the children. Place: In terms of place, the company can continue to use the current place for the children as well. Here they can however also include a more appropriate setting and environment for the younger audiences (Jobber). This will help keep up the current environment of the adult audiences and will also provide the younger customers with a more appropriate place (Hakansson and Waluszewski). Price: The pricing should be done in a manner where the healthier options are relatively much cheaper than the normal products (Hakansson and Waluszewski). This will help provide a chance to reduce the consumption the high calories and will tempt the children to move to healthier options. Promotion: In terms of promotions, the company needs to focus on meeting the needs of the parents by providing complete information about the healthier introductions into the menu. These can be done by providing the parents and elders with pamphlets while in the store as well as randomly to elders in the city centre (Hakansson and Waluszewski). This will help promote the products effectively. Also, the regular advertising which the company currently uses can be changed a little to include the new inclusions. Resources and Capabilities: In terms of the resources and capabilities, the company will not be faced with too many changes. Here the company has a well set up team of professionals with good knowledge of their product (Johnson, Scholes and Whittington). Hence, the only change will be the need to develop newer recipes which can be a part of the regular research and development that the company currently undertakes. Also, in terms of their marketing, the company can continue to use the current promotional methods and can either dedicate one of the promotional activities for the new products, like the tasting that they provide at the stores. Timelines: Activity Timeline Person Responsible Development of the new recipes Continuous process. However the first set of recipes needs to be developed within one month considering the launch of the products will be in 2 months. Research and development teams and quality department Marketing Activities The marketing activities and the promotions will continue to be a part of the current activities that the company undertakes. However the promotions will need to be ready within a month and a half to provide the introduction to the products before the launch. Marketing manager and marketing team Training and Development All employees of the company will need to be trained with the new recipes and this will need to be done before the launch of the new products, i.e. within 2 months Team leaders, supervisors and the quality teams Part B: Reviewing the Market Plan: Monitoring the Plan: The plan can clearly be monitored based on the sales. Here the company can keep track of the number of sales made which will help identify the effectiveness of the plan. The effectiveness of the plan can be monitored solely by the sales (Peter and Donnelly). A sheet with the sales of the new products can be recorded and stored separately. This will help identify whether or not the promotional campaigns are effective. Justifications: The marketing attempts of the company are not only focused on the children but more so to the parents. Here the promotional plan is completely ethical and legal as the company is focusing on marketing of healthier options for the younger audiences (P. Kotler, K. L. Keller and A. Koshy). Also, the promotional activities within the store of different product and different place for the younger audiences clearly allows the company to provide a completely legal, ethical and socially responsible promotion (Jobber). This promotion is mainly to help the society face the issue of the childhood obesity. Here the company is contributing to the attempt best from their end by developing products which are low on fat and calories. Hence this is a completely justifiable solution. Stakeholders and Feedback: The main stakeholders that will need to sign off the marketing plan include a) the board of directors, b) potential parents, and c) shareholders of the company (Kotler and Keller, Marketing Management). Here considering the views and feedback of parents. The new plan will assist the parents be free and less concerned about the health of their children. Here the products are healthier options, this allows the parents to be more confident about the type of drink that the children will be having at Starbucks. As a parent it is not possible to keep a tab on everything that the child has however this initiative by Starbucks provides a clear peace of mind and allows us as parents to be more free and comfortable about the safety and health of our children and also shows Starbuck’s responsibility to the society as well. Here as a parent I feel comfortable that the company is not solely looking for making profits but is also focused on the health and safety of the children and is also taking the steps that it can personally take to ensure that the children drink less caffeinated and healthier drinks. One possible improvement here can be the development of a separate menu for children below the age of 18 where the options included are healthier and this will also help limiting the choice for the children thereby leaving them to choose a healthy option. Improvements: Here as a marketer, my market plan will include the development of a new menu card which will be based for the children alone. This will contain solely healthier options of the drinks. Also, since the company is already planning to develop healthier options, the same will also be available to the elders (Johnson, Scholes and Whittington). The main difference here will be that the children’s menu will include smaller portions than that available to the elders. Works Cited Hakansson, H. and A. Waluszewski. "Developing a New Understanding of Markets: Reinterpreting the 4Ps." Journal of Business and Industrial Marketing (2005): p110-117. Jobber, David. Principles and Practice of Marketing. McGraw Hill Higher Education, 2009. Johnson, G, K Scholes and R Whittington. Exploring Corporate Strategy. Essex: Prentice Hall, 2006. Kotler, Philip and Kevin Keller. Marketing Management. Prentice Hall, 2008. Kotler, Philip, et al. Marketing Management. Dorling Kindersley, 2009. Peter, J P and J H Donnelly. A Preface to Marketing Management. McGraw-Hill Professional, 2002. Rudelius, William. Marketing 9th Edition. McGraw-Hill Higher Education -A, 2008. Starbucks. Home. 2011. 1 January 2011 . Read More