Marketing Plan for Starbucks Children Products - Research Paper Example

Marketing plan for Starbucks Children Products Executive summary This report entails situational analysis of Starbucks. Under this both the external and internal environment of the company will be analyzed in relation to marketing children and teenage Starbucks products. The marketing plan is aimed at coming up with new beverage drinks that are friendly to children and teenagers; create experience that will attract children and teenagers to the business, and clearly communicate the values and commitment that the company to their new customers (Payne and Frow 25). Objectives To come up with new drink sizes that better meet the needs of young children and teenagers. To recognize that some of their customers are less than 18 years and hence they must also be catered for. To create a Starbucks experience that makes children and teenagers come for coffee, stay for the ambience and environment and return for the connection. To clearly communicate the values and commitment of Starbucks business to their customers, instead of only growth plans publicized in the media. SWOT analysis Strengths The company is good at taking advantage of opportunities; currently products available to children are limited to milk and hot chocolate in smaller quantities, while teenagers have a choice of consuming adult products which often heavily caffeinated beverages. However, smaller sized Starbucks lattes will attract more teenagers. Starbucks is a highly profitable company and has a strong financial base which automatically necessitates the company to undertake new business ventures. For this matter, Children market is a worth for the firm. The company is internationally recognized and has a global presence. Its reputation is inclined to fine products and services. This image will help the firm’s new products enter and gain market in the marketplace. The company has a strong brand that is widely recognized, in fact it is a preferred brand across various countries within which the company operates. Many of the Starbuck customers are loyal to the brand thereby building a strong customer base. In line with this, children products will considerably have a market share specifically from children of parents who are consistent customers The company is also a disciplined innovator; for instance it understands the adapt-or-die theory of marketing. Consequently, it has a vast ability to roll out new products relatively quickly which translates into a considerable competitive advantage. The company has the potential of venturing into children market. Clusters of company units; this has strategically positioned the business to expand with regard to the ever increasing growth of the coffee market especially in areas where the company is already established. In addition, the focus on opening stores that has convenient access for pedestrians and drivers will ensure the access of children to these shopping malls (Allison, http://www.msnbc.msn.com/id/20608492/ns/business-retail/t/starbucks-rethinks-stance-young-customers/) Weaknesses The company relies on beverage innovation which makes it vulnerable to a possibility that their innovation may diminish over time and coping up with new demands from children and teenagers will be a problem. Also, if the US stores decreases stock is lowered in value. More than 75% of Starbucks stores are located in the US and hence the company may need to look for assortment of countries in which to open more outlets to spread the business risk. Furthermore, if the US stores underperforms in launching children products it will be difficult for the company new products to penetrate other markets. Strong dependence on the retail of coffee can make the company to be slow in diversifying into other divisions when the need arises. Hand in hand with this, the company may not be able to produce caffeinated products suitable to children and teenagers. Opportunities The company has the opportunity to expand its operations globally. New potential markets for coffee such as Asian Pacific nations are emerging. Together with this, children and teenagers fancy coffee products and venturing into this market will automatically increase the overall company growth. Co-branding with other companies like Disney to market to children through Cartoon Network programs will open the market (Young 34). Threats Coffee may not stay in favor with children and teenage customers whereby another type of beverage can easily replace it. High costs of dairy products can considerably affect the company’s margins Competition from other coffee shops, copy cat brands, restaurants and street carts (Kaushik 45) Marketing strategy Starbucks will use the Relationship Marketing strategy to market its new products to children and teenage customers. This strategy is an effective tool in analyzing internal markets; customers and organizational processes and external markets; referrals, influencers and suppliers. This model is comprehensive in evaluating stakeholder relationships in order to develop potential successful strategies. Starbucks’ RM will implement strategies that enhances internal relationships enhanced by a cooperative and goal oriented organizational structure that comprise of effective control systems, retaining competent management, employing potential effective processes and internal expansion strategies. For instance, employees are referred to as partners whereby part and full time workers are treated equally by offering stock options, and medical coverage. In the external environment, Starbucks is focused on building a lasting relationship with its customers through trust and commitment with its stakeholders. Using this strategy, Starbucks will start by uniquely connecting with customers and treating them like family in an inviting and family friendly environment. Consequently, the company will influence its connection by augmenting its brand image with global social responsibility programs. Nevertheless, it will assist coffee been suppliers obtain credit and improve their lives, staff, quality, and reliability (lampitt 53). Resources for strategy delivery The strategic capability is depends on the following available resources: physical, human, Financial and intellectual capital. Starbucks has a comprehensive physical infrastructure capable to delver its marketing strategy. The company owns shops, vehicles for transport and all materials necessary to create coffee cups (pastry). The Company has skilled human personnel that potentially work in various Starbucks’ shops and they play a key role in ensuring customer experience and satisfaction. The company has a strong financial capability and hence venturing into new product line is no a hard task. The capital of the company includes a variety of whole coffee beans, foodstuffs, teas, coffee mugs, coffee grinders, coffee-making equipment, filters, storage containers and other accessories. Intellectual capital includes the intangible immeasurable resources of the company. With regard to Starbuck, these include the information captured in brands, patents, customer database, business systems and relationship with partners. Marketing mix will be used to implement the marketing strategy In order for Starbucks to create maximum awareness and establish themselves as most recognized brand within their target market, the company will use a 4p marketing mix. This will considerably satisfy the needs and wants of its target market (William 24) Product Starbucks products will be integrated to include children friendly coffee products which contain less sugar calories, low caffeine concentration drinks, milk, and chocolate in addition to its primary coffee products. Price The company will use penetrative pricing strategy to penetrate the market; it will initially attach low prices to children products to attract customers. Later the company will use value pricing strategy which will emphasize more on expensive coffee products and less on less expensive products. Place Starbuck has more than 12,000 stores across the globe, and its products are certified in various locations prior to distribution. The company is bound to succeed because these stores are strategically located to allow for easy access to its customers. Some stores are located within big supermarkets thus supermarket customers can also access the latter with ease. Starbucks do not franchise their stores and hence a consistent Starbucks’ quality is maintained across all stores. Promotion Promotional strategies are vital in communicating the differentiating features of the product to the target market. Promotional strategies of Starbucks will be apportioned between advertising and sponsorships. Sponsorship of various activities and events will deliver fast brand awareness while advertisement will convert the awareness into sales. Advertisement will include newspapers, outdoor advertising and television. The firm also offers a card for corporate sales; this acts as an extrinsic reward to show employee appreciation for a job well done. Furthermore, coffee service delivery is another means through which the company will promote its products. Implementation schedule Nov. Dec Jan Feb Mar Apr > Gather information about the viability of marketing to Children Acquire Resources to produce children friendly products Discuss the marketing plan with the marketing manager Build a website and launch the products Advertise the product in different media: TV, Newspapers, magazines & radio Monitor and review the performance Reviewing the Marketing plan Starbucks will have a feedback metrics plan that will ensure the strategy’s sustainability. In this regard, the feedback metrics will primarily report on the success or failure of the strategy. For instance, it will evaluate the following market metrics: customer awareness, interests, intentions to buy, and repeat purchase. Secondly, it will also evaluate intermediary market coverage, interests, support and motivation. Business responsiveness to customer inquiries and problems will also be evaluated. These market metrics will provide Starbucks with early information with regard to the marketing plan. Consequently it will provide signals if at all the marketing plan is working or not (Best 330). Market performance review Starbucks will employ continuous improvement practices to review the strategy’s market performance. Any business must and should be flexible to continuous modification of it strategic plan in relation to changing market conditions and Starbucks is no exemption. The strategic provides the initial roadmap, once in operation its flexibility to adapt is a significant aspect of continuous integration. This specifically involves evaluating the results of the marketing strategies and taking corrective measures to ensure business objectives are achieved. The continuous improvement plan for Starbucks will be as follows Establish Goals Measure performance Evaluate performance Take corrective action What do we want to achieve What is happening? What is happening? What should we do about it (Kotler, 73) Justification of marketing strategies The marketing plan meets the legal and ethical requirements. However, the company is faced with a challenge of trying to lure kids to drink sweet and caffeinated beverages which might in one way or another contribute to weight gain. Potential stakeholders Customers (children and teenagers) Employees Investors Impact of the marketing plan I am a Starbucks’ customer. The company has made strides in capturing new customers; most teenagers can now access the once restricted fast food joints. With low caffeine coffee, tea, and other healthier beverages I can enjoy my breakfast on my way to class. I like the Vanilla Frappucino which is a non-coffee beverage and I feel like am addicted to the store because all my friends together we visit the store thrice in a weak. Once I encountered Starbucks experience I have never opted to visit any other fast food shop. The employees offer personalized services something that is rare to find in other fast food store like McDonalds. However, some of my friends are adventurers and have taken the new Starbucks marketing strategy as a leeway to buy high once caffeinated beverages that are restricted to adults. For instance, last Friday John whitely, 16, and three friends ordered tall Caramel Frappucinos at a New York City Starbucks which are meant for adults. In addition, the relaxation freedom that the Starbucks offer is being misused by some teenagers; students from nearby schools miss classes to go and enjoy the salient atmosphere listening to the surround music in the stores. With regard to the above feedback, it is clear that proposed strategy will contradict its initial mandate of providing suitable and friendly product to children and teenagers. Consequently, it will fail to comply with the national legal and ethical obligations. However, the marketing plan can be integrated to restrict the sale of high caffeinated beverage drinks to teenagers. During the implementation stage for instance, service providers at Starbucks should be trained and provided with regulations that restrict the sale of caffeinated beverages to ages under 18 years. This will force a delay in the overall implementation plan. Works Cited Allison Lisa., Starbucks rethinks stance on young customers: Company acknowledges that teens and children are part of market base 2011. Retrieved on 11/11/2011, from: http://www.msnbc.msn.com/id/20608492/ns/business-retail/t/starbucks-rethinks-stance- young-customers/ Kaushik Mukerjee, Customers Relationship Management: A Strategic Approach To Marketing. John Wiley, 2007. lampitt, Peter.. Leaders as Strategic Communicators: Ivey Business Journal 2nd Edition, (2001). pp. 51-55. Mari Smith, The New Relationship Marketing: How to Build a Large, Loyal, Profitable Network using the social web Wiley & Sons Inc., Hoboken, New Jersey 2011. Mazur, Larry. Are Your Customers Being Served? “The Marketer: Chartered Institute of Marketing” New York: Cengage Learning 2007 p,35. Payne, Anne and Frow, Paul. A strategic Framework for Customer Relationship Management, “Journal of Marketing”, 2005, 69(4), 167-176. William Michael.  Marketing Cengage Learning: London. 2007. Young, Roy et al. Marketing champions: practical strategies for improving marketing's power, Influence and Business Impact. John Wiley & Sons, Inc. 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