Introduction to Marketing

Running Head: INTRODUCTION TO MARKETING
INTRODUCTION TO MARKETING
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1INTRODUCTION TO MARKETING
Executive summary
Starbucks is one of the successful coffee retail chain across the world and have enough market
capitalisation in New Zealand as well. Recently, the Starbucks management decides to introduce
Bubble tea as beverage in the menu list. Therefore, it requires in-depth analysis on the existing
trends and the market opportunity for Starbucks in introducing the bubble tea in New Zealand.
As a matter of fact, the report also tries to put emphasis on the role of the market segmentation
and three different objectives of the company that intrigues Starbucks to introduce the product
diversification strategy effectively. Finally, the marketing strategies and its controlling and
monitoring process are discussed in order to bring success to the Starbucks’ initiative
profoundly.

2INTRODUCTION TO MARKETING
Table of Contents
1.0 Introduction................................................................................................................................5
2.0 Situational Analysis...................................................................................................................5
2.1 Market size.............................................................................................................................5
2.2 Market trends.........................................................................................................................6
2.3 Competitors analysis..............................................................................................................6
2.4 Internal environmental factors...............................................................................................7
2.4.1 Competitive rivalry.........................................................................................................8
2.4.2 Buyer’s power.................................................................................................................8
2.4.3 Supplier’s power.............................................................................................................8
2.4.4 Threat of substitute.........................................................................................................9
2.4.5 Threat of new entry.........................................................................................................9
2.5 external environmental factors..............................................................................................9
3.0 Market Segmentation, Profile of the Target Market and Positioning of Product....................11
3.1 Segmentation of the target customers..................................................................................11
3.1.1 Demographic.................................................................................................................11
3.1.2 Geographic....................................................................................................................12
3.1.3 Psychographic...............................................................................................................13
3.2 Profile of the target market..................................................................................................13
3.3 Product positioning..............................................................................................................15
4.0Measurable Marketing Objectives............................................................................................16
5.0 Marketing Strategies................................................................................................................18
5.1 Product Decisions................................................................................................................18
5.1.1 Product specification...............................................................................................18
5.1.2 Recommendations.........................................................................................................18
5.2 Pricing Decisions............................................................................................................19
5.2.1 Evaluation.....................................................................................................................19
5.2.2 Recommendations.........................................................................................................19
5.3 Place (Distribution) Decisions........................................................................................20
5.3.1 Evaluation.....................................................................................................................20
5.3.2 Recommendation..........................................................................................................20
5.4 Promotional Decisions....................................................................................................21
5.4.1 Evaluation.....................................................................................................................21
5.4.2 Recommendation..........................................................................................................21

3INTRODUCTION TO MARKETING
5.5 Integration and Link........................................................................................................21
6.0Coordination and Control.........................................................................................................22
6.1 Recommended methods.......................................................................................................22
6.2 Justification of the recommendation....................................................................................22
7.0 Conclusion...............................................................................................................................23
8.0 Reference.................................................................................................................................24

4INTRODUCTION TO MARKETING
1.0 Introduction
Starbucks is considered to be one of the leading coffeehouse chains across the world.
This American coffee company was established in Seattle, Washington in 1971 and now
have more than 30,000 locations around the world (starbucks.co.nz, 2019). This points
out the success for Starbucks with its exquisite coffee products in terms of quality and
customer demands. The company is currently going to introduce the bubble tea for the
New Zealand customers. One of the speciality of this product is that it has a tea base
blended with the fruits and milk or ice. The pearl milk tea contains small balls made of
tapioca starch. The bubble tea is originated from Taichung and one of the largest
distributed beverage across the globe. Recently, Starbucks is planned to introduce the
bubble tea in its New Zealand market.
In this regard, this report tries to find out the existing market condition that can
facilitate a better practice for Starbucks to get strategic advantage in introducing the
bubble tea. Therefore, the report intends to develop a situational analysis and set the
target market that are associated with the new products. Moreover, the marketing
strategies and the controlling are also incorporated into the discussion to render benefit
for Starbucks in the New Zealand market.
2.0 Situational Analysis
2.1 Market size
The New Zealand coffee market is still growing and creating a lot of exposure for the
multinational and global coffee chains to invest in New Zealand. The optimistic condition of the

5INTRODUCTION TO MARKETING
New Zealand coffee market and the demand with the supportive customer patronage fosters
positive scope for the business organisations to develop effective business practices. As far as the
report of investor.starbucks.com. (2019) it can be stated that the average annual growth in the
New Zealand market can be identified as 4.6%. It symbolises a promising opportunity with
annual revenue of $6 billion and employment more than 75,000 employees. As a result of that
the existing business practice in the restaurant sector is highly lucrative in the country.
2.2 Market trends
As far as the existing market trend in New Zealand cafes and restaurant sector is
concerned, it can be stated that there is a strong consumer demand in the market due to their
gradual increase in income and lifestyle. According to Ibisworld.com.au (2019) the New
Zealanders are willing to spend times at cafes and restaurants and more intrigued by the healthy
foods and beverages. The report of Pitrchart, Jayamaha and Anderson (2018) confirmed that the
health awareness among the customers is considered to be one of the major trend that the
customers are willingly perceive. In addition to this, high preference for the brand and good
environment inside the restaurants and cafeteria is also a new trend among the New Zealanders.
2.3 Competitors analysis
Elements Starbucks Mojo Coffee Fuel Coffee
Product Coffee beverages,
smoothies, tea, baked
goods, sandwiches
Coffee roasters Espresso, latte,
cappuccino, long black,
short black
Target customer Both men and women at
an age between 25 and
50.
Mostly people of an age
of 30-40
Both men and women of
30-40 age.