Created by: Shwan Rashid Sean Pezzini Jessica Rodriguez Julianna Acosta

* Analyze the product, price, place, and promotion in order to develop a launch plan schedule. * Form a planning schedule to introduce Starbucks in Caracas, Venezuela. * Open by September 1, 2014.

* Combination of product adaptation and product invention. * The product must be analyzed in three levels: 1. Core customer value- to determine consumer wants. 2. Actual product  Variety  Quality  Design  Features  Brand name  Packaging  Services 3. Augmented product-Complex bundle of benefits that satisfies consumer needs.

* Variety- besides coffee, we will carry an assortment of popular local foods and beverages. Examples include chicha and arepa * Quality- we will use the return on quality approach * Support Services- we will provide costumer service through our knowledgeable employees who can answers costumer questions and provide appropriate support services.

* High price based on high quality. * Cost-based pricing  Fixed Cost  1 Cup of coffee cost 40 Bolivar in Caracas Venezuela- equivalent to$ 6.35 U.S.  Store manager salary $5000 ( 2000,000. Bolivar)  Two local assistant store manager salary $5000 ( 2000,000. Bolivar)  Rent $5000 ( 2000,000. Bolivar)  Utilities $2000 (800,000. Bolivar)  Logistics $3000 (120,000. Bolivar)  Variable Costs  $1 per cup of coffee

* Break-even analysis Break –even volume= fixed cost/price-variable cost= $20000 / 6.66 – 1 = 3149 units * Unit cost unit cost=variable Cost + fixed cost/unit sales or expected unit sale 1+$20000/5000= $5 * Mark up price Based on profit margin from financial statement for Starbucks company which is.11 cents our price can be 5.55 but we are using 0.25 mark up based on the local price for the cup of coffee the mark up price will be Unit cost/1-desired return on sales =$5 / = $6.66

* Advertising * Promotion of ideas, goods, or services by an identified sponsor * Sales Promotion * * Personal Selling * Personal presentation by the firm’s sales force * Public Relations * Building good relations with the company’s various publics * Direct Marketing * Targeted individual consumers

* Pull Strategy * The producer directs its marketing activities towards final consumers to induce them to buy the product

* Affordable Method * Percentage-of-Sales Methods * Objective-and-Task Method * Competitive Parity Method

* GDP Per Capita in Venezuela is $12,700 compared to India which is $3,700 and China which is $8,500. This shows that there is an economic opportunity for growth. * The total population in Caracas, Venezuela is 1,943,901 * Member of the World Trade Organization

* Channels within nations * Trucks * Channels between nations Water Carrier There are four ports in Venezuela * La Guaira * Maracaibo * Puerto Cabello * Punta Cardon

* Location: Shopping Center * Centro Sambil

1. Should Starbucks continue to expand into foreign markets? 2. Should Starbucks use a straight product extension strategy or a product adaptation strategy? Why or why not? 3. Do you think Starbucks should charge more than the local coffee shops or less?

* Starbucks Corporation: NASDAQ:SBUX quotes & news - Google Finance. (n.d.). Starbucks Corporation: NASDAQ:SBUX quotes & news - Google Finance. Retrieved November 19, 2013, from &ei=EUB9UqCHCMWXiQLRMQ * Caracas. (2013, November 19). Wikipedia. Retrieved November 19, 2013, from * Caracas | Coupa Café. (n.d.). Coupa Caf. Retrieved November 19, 2013, from * HD Wallpapers, Images and Photos. (n.d.). High Definition (HD) Wallpapers, Images and Photos 1080p. Retrieved November 19, 2013, from * Country Comparison > Population. (n.d.). Population. Retrieved November 19, 2013, from * Starbucks® Coffee Perfection. (2013, March 28). YouTube. Retrieved November 19, 2013, from * Kotler, P. (2013). Principles of marketing: student value edition.. S.l.: Prentice Hall.