The document discusses Starbucks introducing a new cannabis-infused coffee beverage. It analyzes the target market, which includes adults aged 25-40, and locations where cannabis is legal. A SWOT analysis notes strengths like brand recognition but also weaknesses like potential addiction. Competitors are discussed, as well as a positioning statement that the product will counteract sleepiness from cannabis use. Market research informed the strategic plan to launch this innovative product.

1. 300 words or more with at least 2 references
Discussion 1
What is the relationship between crime theories and criminal
justice policies, when considered within a social context? What
are the consequences?
Discussion 2
Why is it so difficult to pinpoint the root cause of criminal
behavior, or to accurately predict crime trends?
This is the book we are reading if it helps. Thank You.
Lilly, J.R., Cullen, F.T., & Ball. R. A. (2015). Criminological
Theory: Context and Consequences (6th edition). Thousand
Oaks, CA. Sage Publications
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Strategy and Positioning Analysis
Team “A”
MKT/421 Marketing
12 Dec 2016
Kelly Duman

2. Strategy and Positioning Analysis
Starbucks was established by three local businessmen that
wanted to sell high-quality whole beans coffee. Starbucks has
provided high-quality coffee and achieved product innovation,
while providing excellent service long term. Coffee has been
one of the fasting growing industries in the world due to
business strategy. Starbucks focuses mainly on consumer habits
and their specialty of coffee. Location has been a huge driving
fracture for Starbucks and this strategy has been focused on
first floor of offices, main entrances, and urban areas.
Launching a new product is always a risk and marketing teams
need to do heavy research and provide sound strategies before
spending large sums of money. Identifying the need for a
unique product, locating the target market, conducting a
S.W.O.T. analysis, and determining how to position your new
product can make the difference between success and a new
million dollar brand, or failure and potential bankruptcy.
Overview of Organization
Starbucks is a $21.3 billion company (Marketwatch.com, 2016)
that began as a simple coffee shop in Seattle Washington in
1971. The motto back then was the same as it is today: “share a
great cup of coffee with our friends and help make the world a
little better” (Starbucks.com, 2016). From humble beginnings,
Starbucks has grown to be the standard for the coffeehouse
experience. The company offers a wide range of ground coffees
in store fronts and online. In a typical Starbucks coffee shop,
they offer not only freshly brewed coffee options, but teas,
pastries, snack foods, and a variety of items to take on the go or
enjoy in a comfortable environment while listening to artsy
music. Starbucks was the catalyst of the coffeehouse
revolution.
The non-alcoholic beverage industry is current experiencing a
2.2% growth from 2014 to 2015 and ready-to-drink coffee has

3. increased in volume over 10% from 2013 to 2014
(Cspdailynews.com, 2015). In the US coffee market, Starbucks
is on top with a whopping 42.2% market share, with the closest
competitor coming in at 25.5% (Statista.com, 2016). This gives
them the supply chain and capital bandwidth to innovate and
market new products in multiple test markets around the nation.
Description of Product
The new product Starbucks will be introducing into the market
will be a cannabis-infused coffee beverage in a pre-sealed
container only. It will be similar in taste to current coffee
offerings such a Frappuccino and Doubleshot products. The
packaging will clearly be distinguishable between the two
product lines by distinct labeling differences and packaging
shapes. This will be a limited offering, only in stores in the US
where recreational cannabis used is legal according to state
laws. Currently the limited product launch will be in
California, Colorado, Washington, Oregon, Massachusetts,
Maine, and Nevada. As state and federal cannabis restrictions
continue to be removed around the country, the product will be
offered in those locations as well if the initial product launch is
successful. From research via the internet, it has been
determined that one of the side effects of cannabis use is that it
can cause drowsiness (Leafscience.com, 2013). The caffeine
content in coffee provides the user a stimulant that will
counteract the sleepiness of the cannabis, essentially giving the
consumer a “high” without the need to take a nap. The product
will only be offered in sealed containers, as the chemicals in
cannabis that give the consumer the euphoric sensations must be
tightly controlled in a manufacturing environment. Starbucks
manufacturing sites will purchase the cannabis products form a
highly reputable, third-party supplier that will be required to
meet ISO 9001 quality manufacturing standards.
SWOT Analysis
Strengths (Internal)
Weaknesses (Internal)

4. -Innovative to the current clientele, something new for them to
try
-Natural Cannabinoids even counteract cancer cells, and
preserve normal cells.
- Capital available for new product R&D
- Brand name recognition – “Starbucks” associated with quality
and prestige
-Its content, while its already legal it is still no completely
accepted by the consumer.
-It’s a new product
-Can be addicting, and there are no regulations that limit its
consumption.
- Potential for high taxes by state and federal authorities.
Similar to tobacco products
Opportunities (External)
-Offer a discount on the product, to have current customer try
and overcome our weakness.
-People familiar with the content will be glad of our new
product
- Due to state laws lifting cannabis restriction, the market for
new innovative products is relatively empty. This will fill that
void.
Threats (External)
-Causes drowsiness
- Medical and law enforcement communities could potentially
provide negative feedback to this product because it contains
cannabis as they currently do with other cannabis products
-Acceptance of a coffee with this content

5. - Cannabis market for edibles is growing quickly and many
newcomers are trying to capitalize on this opportunity as well
Competitive Analysis
While coffee bean, seven-elevens (7/11), AM/PM gasoline
stations, and other popular coffee selling markets are
Starbucks’s competition, none of these currently have cannabis-
infused coffee beverages. One of the strongest competitors
where a similar beverage is sold is in Seattle; the beverage is
called “Legal.” They describe and market their product,
“Here’s a quandary designed specifically for Seattleites: where
to find a caffeinated beverage that will keep you alert while
simultaneously making you feel mellow” (Brassaw,
2014).“Legal” has a strength; it’s currently being sold in
marijuana shops, and consumers that frequent these shops are
already familiar with cannabis. Their weakness is they are not a
coffee expert or have a clientele like Starbucks does. Their
weakness, however, is also our weakness in that to selling a new
product with a different content to our current Starbucks
customers will prove a challenge.
Target Market Segments
Starbucks holds about thirty-three percent of the markets share
in coffee in the United States. Starbucks has been able to gain
such a large share of the market by catering specifically to a
well-defined market. Starbucks focuses on demographics,
psychographic, geographic, and behavioral factors.
Demographic
Demographic segmentation is extremely important to Starbucks
as they have a certain age, income, and gender background in
which they are trying to catch their attention. Starbucks
primary target market is men and woman aged 25-40. This
accounts for almost half of their total business. Starbucks
appeals to people in this age range because of their décor they

6. use in each coffee shop. Starbucks focus on adults helps the
product cannabis-infused coffee as there is a legal age limit for
adults 21years of age or older. Young adults, aged 18-24, are
responsible for a little under half of their sales as well.
Starbucks try’s to focus on this age range by setting up their
stores to be a place where you can hang out with some of your
friends and where you can study and get homework done.
Psychographic
When we look at Starbucks we see adults who are in business,
on the go, and usually stressed. Trying to market cannabis-
infused coffee we want to market to these types of people as
this could relax and also help them destress. For people who
are on the go from work the cannabis-infused coffee does not
have a cannabis smell or after taste. This product allows for
anytime, anywhere therapy and people can enjoy this discreetly
and responsibly.
Geographic
Starbucks operates several stores globally. Starbucks
geographic segments normally are the Unites States, China and
including the Asian Pacific, Europe, the Middle East, and
Africa. Starbucks that will carry and provide cannabis-infused
coffee are located only in the following states; California,
Massachusetts, Nevada, Colorado, Maine, Washington, and
Oregon. These seven states have laws that have passed allowing
the recreational use of cannabis. We plan on expanding to other
beverage industries all over these seven states and eventually to
states that legalize the use of recreational cannabis. If the
federal laws restricting recreational use of cannabis are lifted, a
new national strategy for this product will be developed. We
are starting with Starbucks coffee to see how our new product
will do.
Behavioral Factors

7. Starbucks tries to take unique approaches to marketing new
products. First, they try to do word of mouth from customer to
customer. In 2005, Starbucks spend a lot of money trying to
advertise too many different people and spent way more money
than they expected. They spent close to $87.7 million in
advertising. They are trying to defer away from this now, and
stay a word of mouth type of company. The cups that they use
contribute to a large portion of their advertising. When people
see these cups they know where they purchased them at. They
also try to advertise through Facebook and Twitter, but mostly
this is a way for social networking and a way for companies to
receive feedback from their customers.
Understanding the market you are trying to achieve and why
they buy would be a huge help for any companies success.
Starbucks understand that there is a need for a product to help
the everyday person relax and destress. Cannabis infused
coffee sold at Starbucks comes in caffeinated or decaf dosage
needed to meet anyone’s needs such as: being focused and alert,
or relaxed and mellow. Starbucks realizes there are also some
people who drink this product to help with some of their health
issues. Instead of these people taking medication every day,
maybe just a cup of coffee can help curb the pain this person is
in instead of them having to take medication every day.
Positioning Statement
Organization's product
Starbucks refers to the coffee company that provides non-
alcoholic beverages to the society (Burks, 2009). The company
has continued to invest a great deal in creating new products
that enable it to maintain its market competitiveness. The
company focuses on providing the cannabis-infused coffee
beverage that will be contained in the pre-sealed container. Its

8. taste tends to be similar with that of Doubleshot products and
Frappuccino. Also, the beverage will have a different
packaging so as to differentiate it from other products.
Target market
Starbucks aims at introducing and selling the product in the
United States. The distribution of the product will be made only
in the United States stores since recreational cannabis is legal
according to the provisions that have been made by the laws in
the country. The first states where the product will be launched
are California, Nevada, Washington, Oregon, Maine, and
Colorado so as to test whether the product will be successful so
as to distribute to other locations increasing its market.
How the product solves the target market's needs
It has been identified that the use of cannabis has a negative
effect on people which leads to a situation of being sleepy.
However, the cannabis-infused coffee beverage is of great
importance by counteracting the ability to sleep. The caffeine
acts as a stimulant enabling an individual to remain awake for
as long as he desires (Simon, 2009). Therefore, the beverage
can be used by a large number of people when working enabling
them to increase their production level.
What makes the organization different from its competitors?
Starbucks Company has managed to differentiate itself from the
other competitors by coming up with this product that is of
great value and significance to the lives of people. Starbucks is
a well-known and highly respected coffee brand name that is
known for quality and value in a virtual sea of coffee brands.

9. Starbucks also has a well-developed supply chain and extended
partnerships, making distribution of new products less costly
and more efficient. The ability to provide the beverage in
sealed cans prevents the chemical that is associated with
cannabis from contaminating the environment. Also, the
company makes sure that the suppliers of its raw materials
maintain manufacturing standards enabling it to provide quality
products to the market (Morgenstern, 2010).
Conclusion
Marketing is not a precise science, but is far from a guessing
game. Marketing, Sales, Finance, Management, and many other
teams are instrumental in the success of finding and launching
new and innovative products into the market. Research and
analysis into consumer trends, product competition, product
positioning, and many other factors are used to create a complex
strategic plan for each and every new product that is considered
by a company. Brian Halligan a well-respected CEO and co-
founder of HubSpot, an internet marketing company based in
Cambridge, Massachusetts, and also a lecturer at MIT was once
quoted as saying "To be successful and grow your business and
revenues, you must match the way you market your products
with the way your prospects learn about and shop for your
products." - Brian Halligan
The new Starbucks cannabis-infused coffee product is a success
waiting to happen, custom designed for the right target market
and the right time. This will be the next one-million dollar
success for the company!
References
Adams, D. (n.d.). What Are the Characteristics of Market
Segments & Target Markets,
http://small business.chron.com
Brassaw, M. (2014). This Caffeinated Beverage is Infused with

10. Cannabis,
http://www.seattlemag.com/article/caffeinated-beverage-
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Burks, M. (2009). Starbucks. Santa Barbara, Calif: Greenwood
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Cspdailynews.com, (2015). US Beverage market grows 2.2%,
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http://www.cspdailynews.com/category-
news/beverages/articles/us-beverage-market-
grows-22Halligan, B., (2014). 22 Quotes to Inspire Your
Marketing Efforts, Strategies to Grow Your
Business,
https://www.entrepreneur.com/article/238247
Leafscience.com, (2013). 5 ways marijuana affect your sleep,
Leaf Science,
http://www.leafscience.com/2013/11/25/5-ways-marijuana-
affects-sleep/
Marketwatch.com, (2016). Annual financials for Starbucks
Corp., Starbucks Corp.,
http://www.marketwatch.com/investing/stock/sbux/financials
Morgenstern, K. (2010). Marketing Mix of Starbucks. Munich:
GRIN Verlag.
Simon, B. (2009). Everything but the coffee: learning about
America from Starbucks. Berkeley:
University of California Press.
Starbucks.com, (2016). Company Information, Starbucks

11. Corporation,
https://www.starbucks.com/about-us/company-information
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