Chihjen Shiau

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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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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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Introduction to STARBUCKS

• Worlds 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 Seattles 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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CEO Howard Schultz

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

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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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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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STARBUCKS Products
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STARBUCKS Products
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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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Powerful Symbol for Positive Planetary Change
Color of STARBUCKS
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Competitors
The Coffee Bean, Krispy Kreme Dunkin Donuts.
Small local coffeehouses, supermarkets, Jamba
Juice, Orange Julius Fast food chains such as
McDonalds and Burger King
Channel
Starbucks Coffee stores retail Supermarkets
for canned products
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MARKETING OBJECTIVES
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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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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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MARKETING STRATEGY
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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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STP
Psychographic lifestyle health conscious
people who seek non-coffee beverages Target Pres
tige, high quality Starbucks experience
(surroundings) Location convenience Positioning H
ealth appeal but at the same time delicious With
highest quality possible. Premium specialty tea
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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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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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On websites
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Promotion Advertisement
Jasmine
Chamomile
Health
Starbucks Frappuccino Tea Blend
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EXECUTING MONITORING
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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)
• RD costs are 0.5 million.
• Marketing research costs are 1 million.

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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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• Methods of monitoring
• Sales check (by monthly)
• Customer Survey (post-purchase)

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THANK YOU