Name: Lecturer: Course: Date: Developing Marketing Plan Introduction Starbucks is a renowned dealer in coffee drinks and related products with a reputable brand and image. However, according to norms, the company’s products are only appealing to adults mostly aged twenty-five and above. Therefore, the company feels obligated towards acknowledging the younger generation to include products, services or both with a view of attracting this segment of the market. This paper will look to formulate a suggested marketing plan to address the above issue. Organizational Objectives The main organizational objective the company should look to incorporate should involve including a choice of decaffeinated or regular coffee beverages. This objective will ultimately serve to cater for the interests of the young generation customers, less interested in caffeine products. In addition, parents such as Kamyra L. Harding would then have a reason to take their children to Starbucks’ shops.
The other objective the company should look to address has to revolve around incorporating a wider variety of snacks and foodstuffs that would appeal to the young generation. In this regard, this should include fresh pastries, juices, sodas, food items, and tea. The third organizational objective that Starbucks should address with a view of attracting more underage customers should be on store ambience. In this case, the company should consider each of its stores a billboard that will contribute towards building its image as well as brand for the young generation. Each detail of the company’s store should be scrutinized to enhance the ambience and mood that is attractive to the young generation, but should not disregard the rest of the customers, as well.
The company should make sure the stores reflect the personality of the customers mainly below the age of eighteen. Objective Risks It is prudent to understand that the objectives highlighted above have risks involved. These risks will be analyzed in the form of threats and weaknesses in a comprehensive SWOT analysis. The threats in this case are set by the fact that some of the company’s competitors have already incorporated these strategies into their marketing plans. Companies such as McDonalds are considered the leading fast food dealers on a global scale. In this market, the young generation is mostly attracted by fast food products rather than coffee and tea products. Therefore, even though the company has a brilliant opportunity to diversify its products and attract the younger generation customers, it will face imminent competition from already established companies like McDonalds. The other risk of the highlighted objectives for Starbuck’s marketing plan is in the form of weakness rather than a threat.
The aspect of incorporating a wider variety of products into its menu has a possibility of dampening the company’s image and brand. From a marketing point of view, Starbucks is considered a prominent company that deals in coffee and other related products. Therefore, beginning another line of production will significantly diminish the value of the company’s brand.
However, other than threats and weaknesses, the objectives also bear a sense of strengths and opportunity. Regarding strengths, Starbucks already has a strong and reliable brand and image that are capable of attracting young customers to its new product line. In this case, the public associates the company with a good reputation regarding coffee products. It therefore makes sense to associate the company with other successful product lines. Finally, Starbuck’s organizational objectives can be viewed as an opportunity. In this case, the aspect of adding more foodstuffs and drinks is a way of enlarging its market share.
The production line of the company is seemingly restricted to consumers who are only interested in coffee and associated products. Thus, incorporating larger menu diversity as well as enhancing the ambience and the mood of the company’s stores is a grand opportunity to increase the market share in terms of consumers. Marketing Opportunity Options The emergence of new markets is a continuous process in the business world. Regarding the younger generation in this case, there is need for Starbucks to establish sound decisions on the timing and method of sales. This strategy should be put in a good position in order to take advantage of opportunities that come from changing specifications in the market, selling options or market prices. The major opportunity that exists for this particular strategy can be regarded as product extension. In this regard, product extension can be regarded as using the already established coffee brand name to introduce a new item in the Starbucks menu that would appeal to the younger generation. This can involve introducing a new non-caffeinated beverage since majority of under the age of eighteen consumers do not take caffeine.
Another marketing opportunity option available to the company is the introduction of a new line of products such as pastries and cup cakes to attract the younger generation since they are much more popular with fast foods. However, it would be a good idea if Starbucks incorporates a product line that compliments the non-caffeinated beverages. This would help ensure that consumers more often order two complimentary products at a go, such as cup cakes as and non-caffeinated beverages. This marketing opportunity option can be considered a new venture strategy. Marketing Strategies In order to achieve the organizational objectives highlighted above, there is need to establish suitable marketing strategies to ensure they are met. One strategy on marketing will look to boost the confidence of the consumer. This should involve establishing a marketing campaign that will emphasize on the value and quality of the new product line. Another marketing strategy for this purpose and arguably the mainly involves creating awareness on the company’s new move to recognize young generation consumers.
This strategy will include aspects such as newspapers, magazines, local airwaves such as radio and other advertising mediums. The final marketing strategy that can ensure the successful execution of this exercise is overcoming objections. Primarily, this should include emphasizing endorsements, testimonials, and other reinforcement devices if any. This particular strategy will work towards influencing the buying decisions of already existing customers as well as coaxing the intended class of customers. Resource and Capability Evaluation From the marketing strategies suggested above, the strategy on creating awareness should be considered most fundamental and thus most emphasis should be placed upon it. This is one definite way of sparkling interest for the new product line as well as achieving the organizational objective. Evaluation of this strategy reveals increased awareness raises the probability of this project succeeding by influencing the buying decisions of already existing customers as well as coaxing the intended class of customers. The other marketing strategy mentioned above is the boost on consumer confidence.
This strategy has the capability of promoting the value and quality of the new product line. The final strategy involves overcoming any negative objections consumers may have on the new product line. Evaluating this strategy reveals that it is capable of doing away with any doubt or negative perception the consumers may have on the set objectives. Marketing Mix Primarily, the marketing mix should revolve around product, place (distribution), price, and promotion.
In this case, decisions on the new product line should be made in terms of the value of the company’s brand, attractive styling, quality, packing, and accessories and services. The place (distribution) of the product should be determined by factors such as distribution centers, in this case, the company’s coffee stores. Others include distribution channels and order processing.
The other marketing mix includes decisions made on price. These decisions should be made with regard to retail price that is considerate of the consumer status and production costs. The final marketing mix is promotion. Decisions on this aspect should aim at generating a positive response from the consumers. Promotion strategies will include advertising, sales promotions and a marketing strategy budget.
Action Plan Time LineSchedulingPerson’s ResponsibleTo be performed after the market opportunity has been identified.In the course of formulation of organization objectivesThe parties responsible for this exercise is the Starbucks marketing departmentMarketing strategies to be formulatedAfter the teenage market, opportunity has been identified.Starbucks marketing departmentMarketing mixThis action will be performed once the strategies have been formulated and reviewed.Starbucks marketing departmentImplementation sectionThis action will be performed after the marketing mix has been established and relevant decisions have been made.
It is the final part of the action plan.Starbucks finance, economics and marketing departmentSignature for management approval ……………………………. Marketing Performance Review Strategy This part of the marketing plan is designed to review the performance of the new product line against the set organizational objectives. The review strategy is largely dependent on reassessment of the SWOT analysis, competitive analysis, positioning strategy, marketing mix strategy, and target market analysis. In this regard, the marketing and research department o the company have a responsibility towards following up with the progress of the product.
Should the new product line fail to live up to the expected results, the two departments mentioned above should then identify the main weaknesses of the implemented strategies. On the other hand, if the results are positive, then they should identify the contributing strengths and look to improve them significantly. The review strategy should also include an analysis on position and pricing effect on consumer response. The will be need for the company to review the pricing and positioning strategy with regard to targeted customers because and be able to spot any threats, opportunities and weaknesses whenever they appear and act accordingly. This strategy is appropriate especially for a new product introduced into the market. Legal and Ethical Consideration The marketing strategies mentioned above indeed address both legal and ethical requirements in the field.
In terms of both legal and ethical requirements, requirements maintain that any business endeavor be considerate of set laws within a state. In this case, the new product is expected to be released adhering to set rules and will be considerate of the culture of the target market in order to be ethically sound. Potential Stakeholders The main potential stakeholders who will need to sign off in this marketing plan include members or trustees to the company, employees, customers, government, and the community.
Stakeholder’s Feedback Regarding this part of the marketing plan, the chosen stakeholder is a customer to the company aged eighteen. Regarding the marketing plan highlighted above, I was able to undertake a comprehensive review and establish personal findings in accordance to how it would affect others and me with similar interests. In this regard, I was able to gather the premise that Starbucks Company is yet to incorporate into its menu a product line that considers customers who fall under the youth category. However, I feel that the company has made a good move to revise how it views kids and acknowledging the under eighteen-age group is a relevant part of the consumer base. My response to this move is positive feedback and acknowledges that the company will most definitely get positive results from this strategy. I would however advise the company’s management to do further investigation on what interests the current youth generation. In this case, technology comes to mind.
Other companies such as McDonalds offer free internet from a Wi Fi enabled location within the premises of the company’s shop. In this case, customers to the shop get to enjoy free and unlimited internet while they enjoy their snacks or meals. Orchestrating this kind of service would give Starbucks a bigger competitive advantage against its competitors. Marketing Plan Adjustment From what I gather, the respondent seems quite pleased that the company has moved to acknowledge its untapped market opportunity. In this regard, the feedback has indeed influenced the ability to execute the marketing plan in the prescribed timeframe.
In this case, the respondent suggests that the company dig deeper on the interests of the young generation and include more services such as WI-Fi internet. This will therefore call for more time to investigate and see whether fit to include more services or postpone them for later projects. Conclusion From existing statistics, it is evident that Starbucks had humble beginnings before establishing itself as the most prominent coffee dealer and related products on a global scale. However, the company’s products are only appealing to adults mostly aged twenty-five and above. Therefore, the company feels obligated towards acknowledging the younger generation mainly aged eighteen and below. The main objective of this paper was to establish a marketing plan to address the above issue.
The obtained results seem promising but maintain that there is need to undertake further research and include more services or products to address current demands by the young generation. However, it would be better if the suggested objectives were first implemented in an experiment format and used as a basis for further development.