1. Starbucks Rilasso:
A Brand Extension
David Cromer
Blake Manosh
Whitney Martinez
Cathy Wu

3. Starbucks is committed to a role of environmental leadership
in all facets of our business.

5. Brand Architecture

6. Bringing Enjoyment to your life,
regardless of the pace.

7. What’s next?

8. Starbucks Rilasso

9. Vision
We want the benefits of coffee to extend beyond the obvious.
We want everyone to know what coffee can do for your skin.
Our new line aims to bring the Starbucks experience into a
different part of your day.

10. THE products

11. Target Market
College educated
Family oriented
Active lifestyle
Treat themselves when
they get the chance
Willing to pay more
for organic or natural
products

12. 1600 Stores in 47 states
Investing in body
care products
Already distribute
Starbucks products
Customers with
“design for less”
mindset

13. Market Share Objectives

14. Expected value of Sales
Market Share
Product Segment Sales $ Sales $ Total Sales for Line Probability Value
Gained (%)
Scenario 1 Body Scrub $57,100,000 1% $571,000
Bar Soap $506,000,000 0.50% $2,530,000
Body Wash $733,400,000 0.50% $3,667,000 $6,768,000 25% $1,692,000
Scenario 2 Body Scrub $57,100,000 2% $1,142,000
Bar Soap $506,000,000 1% $5,060,000
Body Wash $733,400,000 1% $7,334,000 $13,536,000 30% $4,060,800
Scenario 3 Body Scrub $57,100,000 4% $2,284,000
Bar Soap $506,000,000 2% $10,120,000
Body Wash $733,400,000 2% $14,668,000 $27,072,000 40% $10,828,800
Scenario 4 Body Scrub $57,100,000 5% $2,855,000
Bar Soap $506,000,000 2.50% $12,650,000
Body Wash $733,400,000 2.50% $18,335,000 $33,840,000 5% $1,692,000
Total: $18,273,600
Expected Sales Value: $18,273,600

15. Expected Costs
Total Cost
Product Sales $ Price # of Products Cost per unit Total Cost
per Product
Scenario 1 Body Scrub $571,000 $14.99 38,092 $1.60 $60,947.30
Bar Soap $2,530,000 $8.99 281,424 $1.49 $419,321.47
Body Wash $3,667,000 $12.99 282,294 $2.15 $606,932.26 $1,087,201.02
Scenario 2 Body Scrub $1,142,000 $14.99 76,184 $1.60 $121,894.60
Bar Soap $5,060,000 $8.99 562,848 $1.49 $838,642.94
Body Wash $7,334,000 $12.99 564,588 $2.15 $1,213,864.51 $2,174,402.04
Scenario 3 Body Scrub $2,284,000 $14.99 152,368 $1.60 $243,789.19
Bar Soap $10,120,000 $8.99 1,125,695 $1.49 $1,677,285.87
Body Wash $14,668,000 $12.99 1,129,176 $2.15 $2,427,729.02 $4,348,804.09
Scenario 4 Body Scrub $2,855,000 $14.99 190,460 $1.60 $304,736.49
Bar Soap $12,650,000 $8.99 1,407,119 $1.49 $2,096,607.34
Body Wash $18,335,000 $12.99 1,411,470 $2.15 $3,034,661.28 $5,436,005.11
Total $13,046,412.26
Expected Sales Value: $18,273,600

16. Sales $18,273,600
Less: COGS $5,436,005
Less: Slotting Allowance $2,625,000
Less: Promotions $2,400,000
Less: Labor & Equipment $3,500,000
Gross Profit $4,312,595
Gain From Investment $18,273,600
Cost of Investment $13,961,005
Return on Investment 30.89%
Return on Investment: 30.89%

17. Rilasso’s future?

18. Strategy for the future

19. Bringing Enjoyment to your life,
regardless of the pace.

20. Extending Rilasso
Lotions
Hair Care
Facial Care
scents

21. The Brand Family in 5 Years
Burts Bees model
All natural products
Extend our line into products
beyond our basic three

22. Questions?