Starbucks Coffee Creamer Marketing Plan Lauren Frischman Abbie

Starbucks Coffee Creamer Marketing Plan Lauren Frischman Abbie Thiebaut Breanna Amico

New Opportunities According to the New York Times, 67% of coffee drinkers add creamer Vanilla Bean, Peppermint Mocha, Carmel Macchiato, and Pumpkin Spice Generate more Starbucks loyalists

Channels of Distribution Target Stores Starbucks Cafe

SWOT Analysis Strengths • Established brand • Sought after product • Popularity of natural ingredients Weaknesses Opportunities Threats • Higher price • Lack of availability for consumers • Limited flavor offerings • Reach a new market segment • Entice new consumers with a new product • Continual brand awareness • Convenience factor • Existing competition • Missing out on market segments based on price • Consumers’ brand loyalty to competitors • Lack of mass retailing

Target Markets Target Shoppers 15% 40% 15% 30% Students aged 18 -24 Adults aged 35 -54 Starbucks Loyalists

Market Demographics Starbucks Loyalists Adults (35 -54) Make up 42% of coffee consumers Can afford a higher price Coffee is a part of their daily routine Students (18 -24) 73% of coffee drinkers make coffee at home Starbucks holds 15% of this industry 10% increase in coffee drinkers in the past 2 years 76% of adults began drinking coffee at this time Target Shoppers Care about value Want upscale, trendy products *Statistics are from IBISWorld

Financial Objectives First Year Goals To gain 10% of the coffee creamer industry To raise corporate revenue by 2. 5% from the sales of the coffee creamer, or to increase corporate revenue by $30, 000 Goals To for the next five years raise corporate revenue by an additional 2. 5%, making the total revenue from coffee creamer sales 5% of net revenue

Price Break-Down Ingredients 2% Milk Estimated Cost. 15 Heavy Cream . 35 Flavoring Ingredients . 50 Packaging and Production 1. 00 Total Cost: $2. 00 Retail Price: $3. 49 Profit per bottle: $1. 49

Break-Even Analysis 1000000 800000 600000 400000 200000 Break Even Analysis 0 0 200000 400000 600000 800000 1000000 -200000 -400000 -600000 Average per-unit revenue $3. 49 Average per-unit variable cost Estimated monthly fixed costs $2. 00 $500, 000. 00 Monthly units to break even 335, 570 Monthly revenue to break even $1, 171, 130. 93

First Quarter Sales Forecast 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Peppermint Mocha Vanilla Bean Caramel Macchiato be r D ec em be r em N ov ob er ct O Se pt em be r Pumpkin Spice

Promotion TV ads Print Ads- Target magazines Facebook Ads Interactive social media

Conclusion Goal: Increase company revenue by 5% from the sale of coffee creamer Barriers to success: The higher price Lack of mass retailing Existing Competition

Citations "Industry Market Research: Coffee Production. " Major Companies n. pag. IBISWorld Where Knowledge is Power. Web. 16 Nov 2013. <http: //clients 1. ibisworld. com/reports/us/indu stry/majorcompanies. aspx? entid=272 "Industry Market Research: Coffee & Snack Shops. " Major Companies n. pag. IBISWorld Where Knowledge is Power. Web. 16 Nov 2013. <http: //clients 1. ibisworld. com/reports/us/industry/maj orcompanies. aspx? entid=1973>. Newman, Andrew, Adam. "Media & Advertising. " Coffee Creamer Brand Focuses on Simplicity and Identity. The New York Times, 01 Aug 2012. Web. 16 Nov 2013. <http: //www. nytimes. com/2012/08/02/business/media /coffee- creamer-brand-focuses-on-simplicity-andidentity. html? _r=2&>.