Bubble Tea is one of the very most popular non-alcohol refreshments in Taiwan and Hong Kong, and it is what coffee is to the, the burkha to Taiwan and Hong Kong. There are a lot of bubble tea shops in almost every spot in Taiwan and Hong Kong. As Bubble Tea is so popular in Asia, Starbuck's Corporation is trying to figure out a plan to transmit Bubble Tea in New Zealand. Therefore, this marketing plan will help Starbuck's Firm to unveiling Bubble Tea in New Zealand. This marketing plan will involve situational evaluation in conditions of power, weaknesses, environmental examination and social analysis etc. Furthermore, the four Ps are discussed in detail, and they're product strategy, pricing strategy, promotional strategy and place strategy.
2. 0 Situational Analysis
2. 0. 1 Description of the market's:
In this section, strengths, weaknesses, environmental fads, political developments of Starbucks will be talked about at length, as these factors play a critical role in affecting the new marketing plan for Bubble Tea.
Starbucks, as an enormous and global corporation, has a great deal of strengths. For instance, Starbucks is an extremely strong global brand, and it offers quite impressive initiatives (Michelli, 2007). It offers high quality and varied products, and it offers strong, loyal customer bottom part, and passionate and loyal employees.
2. 0. 2 Fads: Through the early 1960s, soft drink is "cola" in consumer's mind. In the 1980s and 1990s, however, other beverages enter into market such as bottle of water, dairy tea, are more popular. Today, the volume deal of carbonated soft drink has declined because the majority of consumers to choice much healthier alternatives in useful market such as energy drinks, milk juice beverages, sports drinks. The company has been actively committed to new product development as a reply to the growing matter about the negative health effects of high fructose beverages, but also escalates the needs of the marketplace, to provide products to mature quickly. Within the efficient market customer's choice move to trendier, healthier and more superior product in the future.
2. 0. 3 competitors:Starbucks offers the value proposition that its major competition, such as Coke and Pepsi, coca-colas top rivals for the carbonated drinks companies. Coca-cola is leading with 43. 7% of the total carbonated drinks market. Starbucks rivals, mainly McDonald's and Dunkin' Doughnuts, although provide the same basic product do have an edge over Starbucks since they do not provide the same caffeine house atmosphere they price their espresso beverages significantly lower. That is important in this economical environment where consumers are more consciously spending. Competition have had the opportunity to produce value to the buyer by basing their prices with quality of their product. With Bubble Tea, which is completely different from drinks like caffeine, Starbucks will overperforme its major competition a great deal.
2. 0. 4 Impact on the company's marketing targets:
In conditions of environmental trends for Starbucks, the demand for coffee or caffeine is known as to be inelastic by the industry. Meaning that even with a growth in prices or reduction in income, coffee individuals are hesitant to replace it with another product. Therefore, Bubble Tea could only be a substitude for espresso. It's the perfect drink for young children, and people who do not want to consume alcohol at a certain time.
Political and regulatory environment is also very important for Starbuck's performance. Following the terrorist episodes on Sept 11, 2001, the Bioterrorism Take action was handed by congress and enforced by the FDA. The brand new law requires "all domestic and international facilities that make, process, pack, or carry food for people or animal usage in america must register with the FDA". This work will help the FDA immediately respond to a danger or strike on the U. S. food resource. Also, in the case of an outbreak, the FDA will have information to find the source and cause and contact the afflicted facilities.
On the other palm, the cultural environment influence Starbucks as well. Coffee is a culture or the skill of enjoying coffee in a soothing atmosphere. Coffee culture and coffeehouses have been with us because the 16th century, around Europe, at first as a location for interpersonal gatherings and the arts. The U. S. is conforming to this Europe custom of slowing and socializing over caffeine at an area coffee shop. Not only is espresso a social drink but for some it is a way of life. Therefore, Bubble Tea could be a perfect replacement for drinks like caffeine, because it is suited to all people at all ages.
In addition, scientific fads will be talked about as well. Although just how espresso is produced hasn't changed much over time, technology in preparing coffee for the customer has made it easier to supply the best cup each and every time. New making systems and espresso machines like the new cutting edge in-store Clover brewing system that provides the best cup of coffee available anywhere. It really is very good news that making Bubble Tea is much easier than making coffee. All the substances are quite normal and simple, and it does not require a lot of techonology for making Bubble Tea.
3. 0 Market Segmentation, Targeting and Positioning
In market segmentation section, two aspects will be talked about, namely, marketplace and setting, respectively. First of all, the target market will be all the folks in New Zealand, young and old, rich and poor. Therefore, Starbucks should use a great variety of targeted promotional tools. For instance, the mass media selection could include tv set, radio, magazines, internet, outdoors, personal selling, public relations, and publicity. Tv set is the priciest media for ad for Bubble Tea, however, it can reach over 90% of the homes in New Zealand. As an enormous company, Starbucks has enough finances to repay such high costs. In addition, as students are a heavy radio listener team in New Zealand, Starbucks should make full use of this, and advertise a lot more through radio, so that more and more people will find out about Bubble Tea and try to develop the taste for this. In conditions of newspapers, as each magazine's readers often represent a unique profile and group, Starbucks should advertise in mags more regularly, because its marketing aim is to focus on all individuals in New Zealand, young and old, rich and poor. Everyone should enjoy a glass of Bubble Tea sometimes when friends and households getting together at any time of the day. In terms of the positioning strategy, Starbucks should package deal Bubble Tea with eye-catching cup, bright colored straws, and a number of flavors.
4. 0 Measurable Marketing Objectives
The goals of promotion technique for Bubble Tea are discussed as follows. First of all, the target would be initiating strong recognition about Bubble Tea throughout more youthful years' consumers as well as their parents, ideally. Secondly, winning market shares over other top functional drinks competitor, such as soda like Coke and Pepsi, would be another major target for Starbucks. As Bubble Tea is a whole new product for Starbucks, it should advertise and explain more to the customers, and present them time to build up a taste for it. Bubble Tea is the perfect drink for people to drink when friends and families getting together, having a good time or before foundation, because it won't affect sleep whatsoever.
5. 0 Marketing Strategies
As Bubble Tea is a complete new product for Starbucks, therefore, it is of vital importance to release a successful marketing campaign for Bubble Tea. This section will talk about the marketing strategies about Bubble Tea in terms of product decisions, costs decisions, place decisions, and promotional decisions. In improvements, these four aspects are usually known as 4 ps.
5. 1 Product Decisions
When making product decisions in product combine, two aspects are very important and have to be considered, namely, brand personality, product changes, respectively. Brand personality is the characteristics of the brand, for example, energy, funky, cool, efficient, original, funny, healthy, etc would be the personality. For Bubble Tea, the correct brand personality would be cool and yummy. In conditions of product changes, as Bubble Tea is a whole new product to the market, it ought to be packed more interesting and attractive.
5. 2 Rates Decisions
Pricing is an essential strategic issue, as it is straight related to product positioning. Influenced by the recent financial meltdown started in late 2007, Starbucks has suffered a lack of customer traffic to its stores all around the globe. Therefore, Starbucks has made a decision to lower its prices on some popular products, such as brewed coffees and lattes. At this time, to release a marketing intend to sell Bubble Tea, Starbucks needs to price it very carefully.
Price strategy should consider the following three aspects, consumer demand, the merchandise life-cycle, and potential substitutes, respectively. Consumer demand is driven by the preferences and disposable income of the consumers, the availability of others similar products. Generally, the root philosophy is that the higher the purchase price, the higher the value of the product. In addition, the merchandise life-cycle is another major determinant of the price. In essence, the newer the merchandise, the higher the price, and the bigger the profit percentage. Additionally, potential substitutes of the product play a crucial role in setting up the price. When rivals are enticed by the high profit margin of the merchandise, they will find a way to enter the market.
For Starbucks to begin selling Bubble Tea in New Zealand, it's important to investigate each price determinant very carefully. To begin with, consumer demand in New Zealand for Bubble Tea is very strong. There are around 20 Bubble Tea retailers in Auckland by itself, and they're quite popular within the last few years. In the beginning, most customers are from Asia. However, these outlets have seduced numerous local New Zealanders now. Bubble Tea is a perfect choice for friends gathering. In addition, as Bubble Tea is quite a new product in the life-cycle for Starbucks, it can price it relatively higher than other Bubble Tea places theoretically. However, this will not work, because almost all of the customers would be more willing to go to Bubble Tea retailers for it especially, instead of choosing Starbucks for Bubble Tea. Finally, as Bubble Tea outlets are relatively cheap to set up, there could be more and more competitors when there is a high profit margin involved. Therefore, the price of the Bubble Tea shouldn't be set too high.
In summation, as the common price of a glass of regular Bubble Tea is around $6. 00, Starbucks should price it at $5. 80 to be able to contend with other Bubble Tea retailers.
5. 3 Place (Circulation) Decisions:
Briefly speaking, Bubble Tea, as a whole new product of Starbucks, can be sent out all over New Zealand through its outlets. Starbucks has a great deal of retailers across New Zealand; it's very easy to attain out to all or any the people in this country.
5. 4 Promotional Decisions
The targets of promotion strategy for Bubble Tea are talked about as follows. First of all, the objective would be initiating strong recognition about Bubble Tea throughout younger generations' consumers as well as their parents, ideally. Secondly, winning market shares over other top useful drinks competitor, such as soda pop like Coke and Pepsi, would be another major aim for Starbucks. As Bubble Tea is a whole new product for Starbucks, it will advertise and explain more to the clients, and present them time to develop a taste for this. Bubble Tea is the perfect drink for folks to drink when friends and family members getting together, having a good time or before bed, because it will not affect sleep in any way.
6. 0 Coordination and Control
The coordination and control is not at all hard enough, as Starbucks is merely trying to release a complete new product. The marketing process can be easily coordinated and controlled by Starbucks, because the management team is all familiar with launching new products, exactly like what they have with it when these were launching strawberry smoothie.
