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 Higher price Lack of availability for consumers Limited flavor offerings Opportunities Reach a new market segment Entice new consumers with a new product Continual brand awareness Convenience factor Threats Existing competition Missing out on market segments based on price Consumers’ brand loyalty to competitors Lack of mass retailing

Target Markets

Market Demographics Starbucks Loyalists Adults (35-54) 73% of coffee drinkers make coffee at home Starbucks holds 15% of this industry 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) 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 Goals for the next five years 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 $30,000,000 Goals for the next five years To raise corporate revenue by an additional 2.5%, making the total revenue from coffee creamer sales 5% of net revenue

Flavoring Ingredients Packaging and Production Price Break-Down Ingredients Estimated Cost 2% Milk .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 Average per-unit revenue $3.49 Average per-unit variable cost $2.00 Estimated monthly fixed costs $500,000.00 Monthly units to break even 335,570 Monthly revenue to break even $1,171,130.93

First Quarter Sales Forecast

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://clients1.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://clients1.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-and- identity.html?_r=2&>.