- Term Papers, Book Reports, Research Papers and College Essays

Marketing Plan for Starbucks

Essay by   •  April 30, 2011  •  Case Study  •  1,677 Words (7 Pages)  •  1,761 Views

Essay Preview: Marketing Plan for Starbucks

Report this essay
Page 1 of 7


The purpose of this paper is to describe the attributes of the Starbucks Chai Tea and energy drinks in detail. The pace at which this product will move through the product life cycle will be described as well as the factors that will impact its movement. Also, details on how the product life cycle will impact the marketing of the Chai Tea and energy drinks will be identified. The positioning and differentiation strategies for this product will be identified. The appropriate price strategy to be used will be described.

Stages of the Product Life Cycles

Product Life Cycle

What is a product life cycle? A product life cycle "describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline. The product life cycle is concerned with new types (or categories) of products in the market, not just what happens to an individual brand." (Perreault, McCarthy, 2004).

Market Introduction

The 4 P's are used in the introduction stage. The product, Chai tea, is introduced. During this time branding and quality is established. There will be low sales do to lack of recognition of Chai tea. The price may fluctuate during this period. Profits are expected to be low during the introduction. High cost towards distributing Chai tea is also expected. The promotion cost will be high in comparison to the sales and profits during this time period.

Growth Stage

During this stage there is an increase in the demand of Chai tea. The demand increases in parallel with the profits and sales. New methods of a quicker distribution may be accomplished during this stage. "The innovator begins to make big profits as more and more customers buy." (Perreault, McCarthy, 2004). The growth of Chai tea is now projected towards a bigger collection of buyers.

Maturity Stage

In this stage the strong growth of sales lessen. A competitor may have come out with a similar tea. A new beverage may have hit the market. This new beverage "may have skipped the early life cycle stages." (Perreault, McCarthy, 2004).

The promotion cost could have risen during this time. The competitors may have cut cost of their products. At this point the primary objective is to defend Chai tea. The focus will be on maximizing the profit of Chai tea products.

Decline Stage

This is the time of new products coming into the market at a rapid pace. Profits become marginal at best. Competitors are flooding the market with similar products. There are a few options. One is to maintain the product and reduce the cost of promotion. This is a cautious time. If the promotion of Chai tea is dropped too much sales will never recover. Keeping a steady, but less aggressive, promotion plan may help in the rise of profits. Another option is to analyze the preceding sales. This would help determine to liquidate the remaining inventory and possibly selling the product to a competitor for their own distribution.


Product Type

Starbucks and Tazo will introduce flavored iced teas and will compete with Lipton and Snapple brands. A second variation of the beverage including vitamin B-12, Ginseng, Taurine, and other amino acids to the beverage will compete with other energy drinks on the market. Brands such as Red Bull, Monster, Sobe, and Rock star are enjoying high volume sales and are very popular among the young generation. Starbucks and Tazo intend to provide two high quality products that can compete at many levels.

Product Features

Starbucks Tazo Flavored Tea

Tazo Chai Tea is an imported, organic, spiced black tea originating in India. Starbucks markets the tea in dry filterbags and as a custom blended beverage at their many retail locations. The tea is brewed, flavored, and bottled fresh daily. The tea will have a three to four month shelf life to assist distributors. Once marketed, Starbucks will limit production to daily demand. Starbucks Tazo Teas are known for their smoothness and herbal healing powers.

Unlike Lipton or Snapple brand teas, Starbucks Tazo Tea will contain herbal vitamins and nutrients necessary to maintain good health. The teas offered in popular flavors, will provide the consumer with a feeling of satisfaction produced by the quality blend. Tazo Chai Tea is an Indian tradition dating back to the mid 1800's. British Royalty and countryman enjoyed Tazo's flavor and aroma during the early colonization of India. "Gentlemen returning from Indian colonies often presented the Queen of England gifts of Tazo Spiced Tea."(, 2005). Starbucks Tazo Flavored Tea offers consumers an opportunity to be part of an age old tradition.

Galactic Star Energy Drink

Galactic Star Energy drink contains high levels of vitamin B6, B12, Ginseng, Taurine, Caffeine, and Tazo Black Spiced Tea. Galactic Star Energy Drink is a product represented by Starbucks Coffee, and Tazo Tea, two companies known for quality. Galactic Star contains Tazo Black Spiced Tea, a tea producing high levels of caffeine. Galactic Star was created with today's fast paced society in mind. Athletes can improve stamina; Galactic Star Energy Drink is a high energy, peak performance supplement, which stimulates your body's metabolic system for a powerful energy boost.

Unlike our competitors, Galactic Star Energy Drink insinuates meditation and improves clear thinking while boosting energy levels beyond normal expectation. Galactic Star Energy Drink is produced using a process that supports the highest levels of modern technology and nutritional science. This process allows consumers to enjoy the benefits of a modern mixture of a traditional tea, technology, and the ability to meet today's demanding responsibilities.


Like the Lipton Brisk Tea, the introduced teas will be packaged in vending machines dispensed twelve ounce cans and twenty-ounce plastic containers. The teas will also be packaged in glass bottles and reside on retailers shelves near Snapple and Lipton products. The teas will be available individually, in six-pack bottles, and twelve pack bottles. Customer survey will determine the introduction of a twenty-ounce can. Packages, cans, and bottles will be themed with sports



Download as:   txt (10.3 Kb)   pdf (126.2 Kb)   docx (13 Kb)  
Continue for 6 more pages »
Only available on
Citation Generator

(2011, 04). Marketing Plan for Starbucks. Retrieved 04, 2011, from

"Marketing Plan for Starbucks" 04 2011. 2011. 04 2011 <>.

"Marketing Plan for Starbucks.", 04 2011. Web. 04 2011. <>.

"Marketing Plan for Starbucks." 04, 2011. Accessed 04, 2011.