Starbuck’s is in a process of having a major rebuilding of the core values that has been running in the organization. Since its establishment, the company has been categorical of the fact that children below the age of eighteen years are not part of the customer base. Despite this fact though, Starbuck’s has had more than shouting evidence that children and teenagers are becoming a large part of the daily customers as time is going by. As a matter of fact, Starbuck’s is appreciating the fact that the company has outlets are becoming a destination for not only the parents but the whole family. In an effort to restructure the targeted customer base, the company has opted to appreciate the fact that children are growing more and more influential in the daily sales of the organization. Hence Starbuck’s is set to develop a range of products that are intended purposely to suit the young children who frequent the place. The main organizational objective of this marketing strategy is to adopt the unavoidable market that in the under aged yet doing it in an ethical manner without having to offer products that contain too much caffeine to the children.
In short, the goals can be summarized into: Starbuck’s maximizing exposure to the community about the new market segment integrated in its operations, enhance optimal acceptance from the community members that the action is right and appropriately build an accurate expectation of what the new services and products entailed are providing.
Risks of the Objectives
The opportunities that Starbuck’s has at its disposal that are relevant to the incorporation of the marketing strategy to adopt the young market are quite strategic. First of all, the fact that it has already been identified that teenagers and children are already crowding various Starbuck’s outlets in purchase of the company’s products offers a very soft ground for the company to launch the strategy in the market. This means that the target market is already aware of the products that are offered by Starbuck’s hence it will be easy to implement the new products since they will be twisted to accommodate the age of the new customers. On the other hand, the fact that the target market is positive about the products that are offered by Starbuck’s in the market means that the adoption of the new marketing strategy will be an easy thing.
On another angle, the weaknesses that face Starbuck’s in regard to the new marketing strategy to be adopted is the fact that it will be forced to change the mission or philosophy of the company. As had already been mentioned previously, Starbuck’s has been categorical of the fact that their products are not meant to be sold to children. Changing the strongly built philosophy will be a challenge for the company. The other fact is that developing products that are not harmful to children in regard to caffeine content yet at the same time optimizing the satisfaction that the children have been getting from the caffeine products will be a huge challenge for Starbuck’s.
Finally, the strengths and weaknesses that may be facing Starbuck’s in adopting this strategy of marketing will be mainl built on the opportunities and threats that have already been highlighted. The company reputation for offering very satisfactory products to its customers combined with the financial strength, diverse capabilities in manufacturing and leadership in operations are strategic strengths that Starbuck’s boasts of at this particular time.
Brand extension is the most feasible method of marketing that can be used by Starbuck’s is imposing the marketing strategy in question. This is due to the fact that Starbuck’s will be introducing to the under aged a very new product although under the well known brand of Starbuck’s. On the other hand the fact that the brand that is being introduced into the market has leverage with the customers adds more reasons as to why brand extension is the most viable method to be used.
The first one is the product line that has been developed by Starbuck’s. As a matter of fact, offering a product that is suitable to accommodate the under aged children in the market is a very positive step towards ensuring that the company reaches more people in the market. Packaging forms the other main criteria that may be used by Starbuck’s. Since the products are intended to be marketed to children, the packaging used ought to be one that can effectively lure children into buying the products. Therefore colorful and attractive packaging is more likely to be effective in tapping the market.
Resources and Capabilities
The resources needed so as to sustain the marketing strategy that has been identified above, operational expenses will become handy since the initial expenses like brand building have all been taken care of. Marketing, staff and utilities are the main things which need to be fully catered for so as to ensure that the plan succeeds. As a matter of fact, it is estimated that this will cost at $958,000 for the initial year only.
The market mix used for the strategy ought to be used for the case involves pricing, place and promotion. Cost plus pricing is the most effective market mix to be used by Starbuck’s since it will ensure that the company earns the fixed gross profit to keep it running. Apart from that, cost plus pricing strategy will be vey pivotal for the firm in bringing about more effective management of the costs of production during the launch of the products into the market.
In regard to the place mix, Starbuck’s technology will be effective in ensuring that the Starbuck’s retail store has the needed supply of products for the children. Finally promotion for the product will involve online marketing, use of mass media and the use of displays in the shops and billboards to advertise the new product for the company.
Part B – Reviewing the Marketing Plan
Developing a marketing performance review strategy and monitoring mechanisms to determine if strategies are effective once implemented
To keep track of marketing performance, it is important to look at the key performance indicators [KPI], so as to keep track of all Key Actioon Plans. This may be done on monthly basis. This may involve looking at the Lead and Lag Indicators. The Lead performance indicators indicate performance of key work processes, behavior and culture and the protective barriers between harms and hazards that may have control over unwanted outcomes. Lag performance indicators look at the incidences that may underpin unwanted outcomes. Therefore, to ascertain the marketability of its beverage to children, it will be important for Starbucks to consider the cultural aspect of the market and any recent incidences relatable to selling coffee to children.
Justifying that the marketing strategies meet legal and ethical requirements.
Indeed, the marketing strategy for Starbucks meets legal and ethical requirements, given that it is legitimately right to sell coffee to children. That Starbucks aims at introducing a new package with lower concentration of coffee intended for targeting children takes care of ethical concerns. The colorful packaging of these products intended for children remains as legal and ethically right as possible, given that Starbucks will not dabble in the raunchy culture to popularize itself among children.
Identifying Potential Stakeholders Who Will Need to Sign-Off on the Marketing plan
The stakeholders needing to sign off on the marketing plan will be: employees, especially those in the sales and marketing department; the shareholders, managers and board of directors to Starbucks.
Considering the Marketing Plan from the Perspective of a Chosen Stakeholder
I represent the manager of the sales and marketing section of Starbucks. This sales and marketing manager remained emphatic on the need to exploit advertising as part of the marketing plan that is to be used by Starbucks, right before and after the launching of the new product aimed for kids into the market. Advertising will definitely herald increased awareness of the product that is to be introduced into the market. This will help the new Starbucks product make forays into the market and to become established faster and stronger. To this effect, it may be important for Starbucks to consider exploiting both print and electronic media, while airing the contents or ingredients of the new product, and how the contents are to help in nurturing the health of the children.
The seizing of newspaper and magazines is to be complemented with the use of billboards to inculcate familiarization in the market. Similarly, Starbucks is to realize greater sales, positive ratings and a good public image by ensuring that it advertises itself in between prime time news, as far as using electronic media goes. This move by Starbucks will ensure optimal level of awareness in both the potential and prospective markets.
Discussing if the feedback will impact on your ability to implement the plan within the required timeframe.
Given that the stakeholders stress the importance of familiarization, it becomes important for Starbucks to exploit advertising as a way of informing the market about the new product for children. This effort is important since it will not affect the ability to implement Starbuck’s plan within the required timeframe, while increasing awareness in the market, about the arrival of the new product.