Starbuck’s Bubble Tea Marketing Plan Essay

Running Head: MARKETING PLAN 1
Starbuck’s Bubble Tea Marketing Plan Essay
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MARKETING PLAN 2
Executive Summary
New Zealand is a country with a small population of slightly over 4.6 million people. The
country is filled with the many individuals who are seeking education, work, and living. Most of
the individuals are from different countries like Asia and the Pacific Islands. Their income levels
are moderate as compared to other populations. Starbucks has asked the manager to prepare a
marketing plan for a new product that is being introduced in the market that is called the bubble
tea. The beverage is made from tea base which is mixed with fruits. Alternatively, it can be made
from fruit flavors and blended ice versions of tea. Most people in the country love hanging out
and having tea or coffee or any beverage. Most young single adults take most of their time in
such places seeking to find partners and making new friends. Also, in such places, people who
are dating can be found relaxing and enjoying the environment and the music that soothes the
soul.
Starbucks has competition, and their operations are noticed by many rivals who also want
a share or already have a share of the market. There is Dunkin Donuts, Coca-Cola, Pepsi and
McDonalds who have given the company a hard time in the region. However, with the new
product, the company can outsmart them and gain a more significant market share than the
existing. Bubble tea is unique in the region and many people who know the product will be
excited on hearing it's being brought into the country. Besides that, the company and the new
product are bound to be hit by internal and external environmental forces like the completion,
legal and labor factors which if remain unchecked they may cost the company a fortune. The
paper will also be addressing the strategic market plans for the product regarding the product,
price, place (distribution) and promotion and also the integration and linking of the market mix.

MARKETING PLAN 3
2. Situation Analysis
Market Size
New Zealand is home to over 4.6 million people most of which are lovers of hot and cold
drinks (Zealand, 2002). Starbucks has made a name all over the world, and its presence in New
Zealand has been noted by lovers of coffee and other beverages the company is best known to
make. Out of these, the potential market size is 700,000 people who like sitting and having cold
and hot drinks in restaurants.
Market Analysis
Coffee shops are known as places where people go to have conversations and relax. In
New Zealand most people who come to these outlets are singles and couples and occasionally
families, they come out to have a good time. The environment is comfortable, and the trend has
been that people tend to believe that many things happen over a drink especially coffee (Squires,
Juric & Bettina Cornwell, 2001). Bubble tea is unique to the market, and most people have heard
its fame, but now that it is in New Zealand most people want to try it, and the coffee shops are
expected to be filled. Also, people now prefer the best quality of ingredients in all the products
they order; people are moving away from the traditional coffee and other hot beverages (Wong,
Parnell, Black & Skidmore, 2012).
Analysis of Competitors
Most cities, malls and shopping centers are filled with coffee bars, shops, restaurants and
other eating places which offer almost similar products that Starbucks is offering. Some of the
rivals the company is facing in New Zealand include Dunkin Donut and other local coffee shops
that are spread across significant cities (Glowik, 2017). McDonald's used to be the most active
competition until they stopped offering similar products that the company now offers. The

MARKETING PLAN 4
competition was intense because of the prices, however, since the Bubble tea is new and the
ingredients are not local the product is likely going to demand high price which will see the
competition come back again. However, because of its uniqueness, international goodwill, and
public demand, Starbucks’ Bubble tea will outwit the competition (Honack & Waikar, 2017).
Internal Environment Analysis
Resources will be among the things that might slow down the marketing of this new
product (Grant, 2016). There is not enough human resource to conduct a nationwide campaign
and marketing for the Bubble tea. The actual labor is fully committed, and the allocated funds
cannot allow hiring enough staff to achieve the company’s goal (Fleisher & Bensoussan, 2015).
Besides that, there is the company’s culture which is most employees don’t like changes, any
shift from the routine could upset the whole system and slow down the process of marketing.
External Environment Analysis
The recent tax policies that have been introduced by the government could cut into moist
of the profits gained from the sale of the product. If they are implemented and made law, the
company will have to part with close to 3% of its profits from the sales. Also, with the low
market entry barriers, more competitors have eyed this vast market and have begun trickling in
which will force the company to share its market share with the competition. Besides that, the
fluctuating exchange rates will also eat into the profits, with the dollar being unstable in the
recent times, the threat is real (Moutinho & Phillips, 2018).
3. Market Segmentation, Profile of the Target Market and Positioning of the Product
Market Segmentation
The segmentation base applicable to the product is demographic, under this, there are three
variable to consider namely, marital status, social status and income level. For the marital status,