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Starbucks Coffee Creamer Marketing Plan
Lauren Frischman Abbie Thiebaut Breanna Amico
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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
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Channels of Distribution
Target Stores Starbucks Cafe
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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
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Target Markets
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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
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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
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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
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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
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First Quarter Sales Forecast
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Promotion TV ads Print Ads- Target magazines Facebook Ads
Interactive social media
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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
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Citations "Industry Market Research: Coffee Production." Major Companies n.pag. IBISWorld Where Knowledge is Power. Web Nov < stry/majorcompanies.aspx?entid=272 "Industry Market Research: Coffee & Snack Shops." Major Companies n.pag. IBISWorld Where Knowledge is Power. Web. 16 Nov < orcompanies.aspx?entid=1973>. Newman, Andrew, Adam. "Media & Advertising." Coffee Creamer Brand Focuses on Simplicity and Identity. The New York Times, 01 Aug Web. 16 Nov < /coffee- creamer-brand-focuses-on-simplicity-and- identity.html?_r=2&>.
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