Learning Team A Marketing Plan Jennifer Bodine, Shannon James, Tyler Thomas. Sherrell Cook and Teron Brooks Mission StatementTo inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. * Starbucks has developed a reputation of brewing exceptionally delicious coffee. Since Starbucks opened in 1971 (Starbucks, 2013) they have created a coffeehouse atmosphere where people come to drink coffee, talk with friends, perform work meetings, and relax for a few minutes. Starbucks has expanded their operations to 18,000 stores in 62 different countries (Starbucks, 2013). Starbucks created a name for selling world-famous coffee; however, Starbucks has been able to expand their products. In addition to providing several products, Starbucks also offers many services. Starbucks Sensation Sugar - free Will provide mental and physical stimulation Will be sold in bulk * This sugar free energy drink from Starbucks will be marketed as providing mental and physical stimulation as the traditional coffees and lattes Starbucks has to offer without the high intake of sugar. Starbucks Sensation can be purchased in both non-carbonated form for juice lovers, and carbonated form for those who enjoy the feeling of drinking a soda. Located in the soft drink isle of a grocery store, Starbucks Sensation comes in different fruity flavors. It also comes in coffee flavors such as vanilla or caramel for the coffee drinkers who want a double shot of energy. Starbucks Sensation is suited for all who wants to gain extra endurance when one is putting in long hours of work or for those working out hard in the gym. SWOTT AnalysisStrengths Weaknesses Opportunities Threats Trends One method that is commonly used and effective for strategizing is the S.W.O.T.T. analysis. First lists one of the business’ focal points as “recharge your afternoon with a lightly caffeinated pick-me-up” (Starbucks, 2013). Second, Starbucks has set up their business as a publicly held company, which means they have the financial resources that other large corporations have. Another advantage is they are not limited in distribution areas. Third, Starbucks has a culture and reputation built around responsible, ethical business practices and building communities in areas where customers do business. From top down, Starbucks is committed to enhancing ethical performance through strategic relationships with global, regional and domestic suppliers (Starbucks 2013). Marketing ResearchConsumer analysisDemographicsPsychographicsBehaviors Geographical considerations A marketing strategy should result in customer satisfaction. The company will use the mission statement as the impetus for the messaging and approach to be used. The customer will be the audience and require two types of messages, both that support the energy drink being safe and healthy. A loyalty program could help accomplish both of these tasks. In particular, Business Dateline states tha ...

1. Learning Team A
Marketing Plan
Jennifer Bodine, Shannon James, Tyler Thomas. Sherrell Cook
and Teron Brooks
Mission StatementTo inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time.
*
Starbucks has developed a reputation of brewing exceptionally
delicious coffee. Since Starbucks opened in 1971 (Starbucks,
2013) they have created a coffeehouse atmosphere where people
come to drink coffee, talk with friends, perform work meetings,
and relax for a few minutes. Starbucks has expanded their
operations to 18,000 stores in 62 different countries (Starbucks,
2013). Starbucks created a name for selling world-famous
coffee; however, Starbucks has been able to expand their
products. In addition to providing several products, Starbucks
also offers many services.
Starbucks Sensation Sugar - free Will provide mental and
physical stimulation Will be sold in bulk
*

2. This sugar free energy drink from Starbucks will be marketed as
providing mental and physical stimulation as the traditional
coffees and lattes Starbucks has to offer without the high intake
of sugar. Starbucks Sensation can be purchased in both non-
carbonated form for juice lovers, and carbonated form for those
who enjoy the feeling of drinking a soda. Located in the soft
drink isle of a grocery store, Starbucks Sensation comes in
different fruity flavors. It also comes in coffee flavors such as
vanilla or caramel for the coffee drinkers who want a double
shot of energy. Starbucks Sensation is suited for all who wants
to gain extra endurance when one is putting in long hours of
work or for those working out hard in the gym.
SWOTT AnalysisStrengths
Weaknesses
Opportunities
Threats
Trends
One method that is commonly used and effective for
strategizing is the S.W.O.T.T. analysis. First lists one of the
business’ focal points as “recharge your afternoon with a lightly
caffeinated pick-me-up” (Starbucks, 2013). Second, Starbucks
has set up their business as a publicly held company, which
means they have the financial resources that other large
corporations have. Another advantage is they are not limited in
distribution areas. Third, Starbucks has a culture and reputation
built around responsible, ethical business practices and building
communities in areas where customers do business. From top
down, Starbucks is committed to enhancing ethical performance
through strategic relationships with global, regional and
domestic suppliers (Starbucks 2013).

3. Marketing ResearchConsumer
analysisDemographicsPsychographicsBehaviors Geographical
considerations
A marketing strategy should result in customer satisfaction. The
company will use the mission statement as the impetus for the
messaging and approach to be used. The customer will be the
audience and require two types of messages, both that support
the energy drink being safe and healthy. A loyalty program
could help accomplish both of these tasks. In particular,
Business Dateline states that, “a new online solution by
businesses worldwide to create loyalty clubs quickly and
affordably, using any standard Internet browser” (Business
Dateline, 2009).
SegmentationIdentify your target market the buyers and
consumers Marketing strategy factors that affect your
marketing strategyCurrent competition
Market segmentation is common marketing processes that entail
separating a large audience into distinctive segments with
consumers who have similar needs or wants. This process
identifies targeted marketing segments, so companies can use
discretely the marketing mix approach for the most profitable
markets. These processes build marketing investments and allow
the investments to be more efficient. Detailed criterion is
helpful in targeting the finest market segments. According to
Reid and Bojanic “there are three segmentation strategies: mass
market strategy, differentiated strategy, and concentrated
strategy” (2009, p. 143-144).” “Starbucks holds around 33

4. percent of the market share for coffee in the United States.
Starbucks sells almost as much coffee as do fast food and
convenience stores combined, even though it the bulk of its
consumers are in cities or upscale suburban areas. Starbucks has
been able to gain such a large share of the market by catering
specifically to a well-defined target audience” (O’Farrell, n.d.).
According to Perreault, Cannon, & McCarthy (2011), the
definition of marketing as people or organizations with needs or
wants and the ability and willingness to buy, are market
segments, which is a subgroup of people or organizations
sharing one or more characteristics that cause them to have
similar product needs. Starbucks uses demographic
segmentation (markets by age, gender, income, ethnic
background, and family life cycle) as well as geographic
segmentation (markets by region of a country or the world,
market size, market density, or climate) and psychographic
segmentation, which can link with demographics (Cachola,
2012).
Since energy drinks are used for different of reasons (i.e. to
boost energy, reduce thirst) they have managed to maintain their
popularity during the economic recession. This is helpful with
the rapid urbanization that is a result of a fast-paced lifestyle
and hectic schedules. This has given new life and an increased
need for energy drinks to give instant energy. Also, they help to
increase concentration, endurance, alertness and reactions. This
is helpful to students or anyone who wants to stimulate and
energize mind and body.
Describe the organizational buyers and consumers of your
product or service and the factors that influence
their purchasing decisions. Discuss how these factors will affect
your marketing strategy.
“Starbucks’ primary target market is men and women aged 25 to
40 and they account for almost half (49 percent) of its total
business (O’Farrell, n.d.). “Starbucks’ appeal to this consumer

5. age group through hip, contemporary design that is consistent in
its advertising and decor, and working to keep its products
current as status symbols” (O’Farrell, n.d.). Young adults aged
18 to 24 make up the next biggest consumer group for
Starbucks’, and they total 40 percent of Starbucks’ sales.
Starbucks targets this age group because this is the college
student group and they can hang out at the local Starbucks’ to
study, meet people, and write papers. Starbucks appeals to this
collage age group through introducing technology as soon as it
is available, focusing on social networking, offering free WiFi,
and having a trendy image. Children and teens are also a large
part of Starbucks’ target audience. Together, customers age 13
to 17 accounts for just 2 percent of Starbucks’ sales, but most
items for children are purchased by the parents. Whether the
focus is on the steamed milk that Starbucks’ baristas refer to as
“babyccinos” or the sugary, caffeinated, whipped cream topped
coffee drinks that are so popular with teenagers, kids and teens
form a large part of Starbucks business” (O’Farrell, n.d.).
There are several factors that will influence the purchasing
decision of Starbucks customers. The availability of the product
is one of those deciding factors. Starbucks fears that new
products may not be able to meet consumer demands throughout
the terms of the contract. The fair pricing on products, which
are popular to the Starbucks consumers, is important. Starbucks
buyers are relying on the seller to provide fair pricing because
they do not want to charge consumers more for the same
product. Product quality and the ability to buy on a regular
basis without compromising quality influence the purchasing
decision, while minimizing the delivery times.
Starbucks’ Primary Target Market:Men and women aged 25 to
40 Young adults aged 18 to 24 College students

6. *
“Starbucks’ primary target market is men and women aged 25 to
40 and they account for almost half (49 percent) of its total
business (O’Farrell, n.d.). “Starbucks’ appeal to this consumer
age group through hip, contemporary design that is consistent in
its advertising and decor, and working to keep its products
current as status symbols” (O’Farrell, n.d.). Young adults aged
18 to 24 make up the next biggest consumer group for
Starbucks’, and they total 40 percent of Starbucks’ sales.
Starbucks targets this age group because this is the college
student group and they can hang out at the local Starbucks’ to
study, meet people, and write papers. Starbucks appeals to this
collage age group through introducing technology as soon as it
is available, focusing on social networking, offering free WiFi,
and having a trendy image.
CompetitionRed Bull RockstarMonster
*
The biggest competitors for the new Starbucks Sensation energy
drink are Red Bull, Rockstar and Monster. These three energy
drinks hold the majority of the shares in the energy drink
market (WordPress.com, 2010). Rockstar energy drink has the
most caffeine per serving size of 200mg (CheckMeDaily.com,
2010). Rockstar energy drinks also have the fewest calories of
10. Red Bull energy drinks have the fewest carbohydrates of
28g. Starbucks Sensation already has a quality that the
competitors do not have, and that is zero calories in one serving
size
Differentiation and positioning How the new energy drink will

7. differentiate from its competitors Product positioning A
positioning strategy
Starbucks Sensation can be positioned as the energy drink made
exactly the way the customer wants it. Starbucks has done well
with positioning their products to stand out from the
competition and must do so with the energy drink since there is
so much competition in the energy drink market. Starbucks
needs to position its energy drink against the competition by
offering unique flavors and extra additives that the competition
does not, just like they do with their coffee flavors. After the
positioning strategy has been determined, Starbucks can then
decide on a positioning statement to make the biggest impact on
their customers.
Product life cycle
Starbucks Sensation is still in its introduction stage. Starbucks’
market share and sales growth are very small, but the goal is to
establish Starbucks place in the energy market. Starbucks’ sales
increase by 31% versus the industry average of 15%.
Potentially, the energy drink can become the leader of the
energy drink industry. Starbucks is the premier roaster and
retailer of specialty coffee in the world. Starbucks is creating a
niche market that will bring in brand loyalty, and with
differentiating from their competitors.
Places to PromoteSocial networking
sitesFacebookTwitterInstagramIn-store
locationsSamplingCoupon on receipt to come backGrocery store

8. displaysCardboard displays that draw attentionCoupons
Starbucks will use a promotional strategy that informs their
customers of the new energy drink, Sensation. Millions of
people use these social networking sites, so Starbucks would
reach these people with just a few posts. Grocery store displays
help to increase sales and profit .
Promotional StrategiesPush StrategiesIn-store samplingOffer
samples of Sensation to customersGive samples at
eventsMarathons – give samples to participantsPull StrategiesE-
mailsSend product launch information & coupons to registered
customersAdvertisements Use social networking to entice
people to come inLet customers upload photos of them drinking
& giving testimonials.
Starbucks would benefit from using both push and pull
strategies to entice customers to try the new energy drink,
Sensation. Social networking sites are the best pull strategies to
bring customers into a location and in-store sampling would be
the best push strategy to entice customers to buy the drink that
day. Starbucks has always had success with their marketing and
should easily be able to promote the new energy drink,
Sensation.
Initial Sales Promotion Schedule January 2014 - Starbucks will
hold its first meeting to introduce the product to the employees
and the goals of advertising the new product.February 2014-
The advertising plan and budget will be put into place with the
production and advertising team, CEO and the President of the

9. company. March 2014- The goal during this month is to begin
promoting the product on different sites, such as Facebook,
Twitter, and Instragram.April 1, 2014 to June 1, 2014- During
the next two months have samples to distribute to Starbucks
stores and local grocery stores. July 1, 2014 to September 30,
2014- Product will be launched into select stores. October 1,
2014- November 30, 2014- Full production of the Starbucks
Sensation will be in effect. December 1, 2014- An event will be
held for the launch of the new product to investors, companies
and employee’s of the company.
In December we will have to wait and watch what the sales are.
Advertising Plan
Full Page Ads in popular magazine adsCelebrities and average
JoesWebsite that includes a printable discount coupon with
access codeText MessageGymCollege Campus’Athletic Venue
Advertising PlanWe will place full page ads in popular
magazines that caters towards college students and athletes to
bring awareness to our product.Starbucks ads will feature well
known celebrities as well as the average Joe.The ad will include
a web address where a discount coupon for Starbucks Sensation
can be printed out. Text MessageWhen a person pulls into a
certain feet of a gym, athletic venue or college, they will
instantly receive a coupon for a dollar of Starbuck Sensation
energy drink.
*
Public Relations

10. Process of Building Positive Relationships with the Public
Newspaper articleExplanation of Starbucks Sensation product
and featuresIssue in local and national news outletsSponsor
Extreme Sport eventsEnergy drinks are the main sponsorsOpen
and Honest with the publicCommunicate effectively on any
issues, complaints or government inquiries
Newspaper articleThe article will explain the benefits and
features of Starbucks Sensation. It will provide some of the
nutritional values and why customers should pick Starbucks
Sensation over other energy drinks. It will also mention the
zero calories that no other energy drink has.Starbucks will push
to have the article released in local and national news outlets.
Sponsor Extreme Sport eventsEnergy drinks are the main
sponsors of extreme sport events and so Starbucks will have a
representative at these events to introduce the new product to
this market. Free samples will be given at all events for the
first year to help promote the productOpen and Honest with the
publicStarbucks will make sure to be honest and forthcoming on
any customer issues or complaints and resolve in a timely
manner to meet customer’s satisfaction and expectation.
Starbucks will also work with the government honestly for any
inquiries they might have.
*
Channel ManagementOrganizing marketing techniques to
distribute Starbucks Sensation to the most customers at the
correct locations and at the correct time
Starbucks Sensation sold through direct and indirect distribution
channels
Different flavors sold at different geographical locations

11. *Channel management will help Starbucks organize the various
marketing techniques it will use to get Starbucks Sensation to
the customers.Channel management helped Starbucks identify
that it will sell Starbucks Sensation through both direct and
indirect distribution channelsDirect channels – Starbucks
locations and Starbucks’ websiteIndirect channels – grocery and
convenience storesChannel management helped Starbucks
decide which flavors would be sold in which geographical
areaStudies will be conducted on which flavors are sold the
most at different locations, and then stock these locations with
more of these flavors and remove the flavors that don’t sell well
DistributionStarbucks will coordinate distribution through the
Supply Chain DepartmentMonitor inventory levels and
coordinate shipping schedulesTrucks will be used to ship
inventory to distribution centers and selling locationsMost cost
efficient method for geographical areaJust-in-time (JIT)
delivery systemCut down on storage costsQuicker arrival of
inventory
Supply ChainThe Supply Chain department in Starbucks will be
important in the successful distribution of Starbucks
SensationThey will monitor the inventory levels to avoid stock
outsCoordinate the shipping of trucks to only spend money on
shipping when neededTrucksStarbucks will only be sold in the
Western United States for the launch so trucks are the most cost
efficient at this time. This will be reviewed if the product
expands into other areas and markets.Just-in-time
(JIT)Starbucks will use JIT delivery systemThis will allow
Starbucks to not spend much on storing costsIt will allow each
selling locations to have a stable amount of inventory and not
have excess amounts of inventory that don’t get soldInventory
will arrive when each selling location needs it
*

12. Financial PlanOutline a high-level financial plan that defines
your financial model and pricing assumptions. This plan should
include expected annual sales and profits for the next three
years.Use several slides to cover this material appropriately.
Elements for Monitoring, Evaluate and Control
Access codes
Use of coupons
*When potential buyers visit the website that is located on the
advertisement page, we will be able to monitor how effective
the advertisement is by tracking the access codes used to print
the discount coupon.We will also be able to monitor and track
how many coupons were used to purchase Starbucks Sensation
energy drink.
Conclusion Starbucks products will continue to grow because
the company has taken the necessary steps to launch their
products successfully by creating and marketing the products
correctly.
ReferencesBusiness Dateline (2009). Restaurants, Coffee Shops
and Other Food Retailers Can now create professional loyalty

13. clubs affordable online: New service allows small businesses to
benefit from marketing practices once reserved only for the
largest players. Business Dateline. Retrieved August 20
,2013Vass, K. (2005, April) A Solid Marketing Plan Begins
with SWOT. Textile World. Pg. 18.Retrieved August 23 ,2913
from Pro Quest database.O'Farrell, R. (n.d.). Who is Starbucks'
Target Audience? Retrieved from
http://smallbusiness.chron.com/starbucks-target-audience-
10553.htmlPerreault, W. D., Cannon, J. P., & McCarthy, E. J.,
Jr. (2011). Basic marketing: A marketing strategy planning
approach (18th ed.). New York, NY: McGraw-Hill.Reid, R.D.
and Bojanic, D.C. 2009. Hospitality Marketing Management.
5th ed. s. l.: John WileyStarbucks Pricing Strategy | Chron.com.
(n.d.). Retrieved September 6, 2013, from
http://smallbusiness.chron.com/starbucks-pricing-strategy-
10544.html
Starbucks to jolt consumers with Refreshers energy drink USA
TODAY.com. (n.d.). Retrieved September 6,2013 from
http://usatoday30.usatoday.com/money/industries/food/story/20
12-03-21/starbucks-energy-drink-refreshers-red-
bull/53693616/1