Marketing Plan for Bubble Tea, Starbucks

Running Head: Starbucks
Marketing Plan for Bubble Tea, Starbucks
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Table of Contents
Executive Summary................................................................................................... 1
Situational Analysis.................................................................................................... 2
Market’s Size........................................................................................................... 3
Analysis of Customer needs and Trends..................................................................3
Analysis of Competitor............................................................................................ 4
Internal Environment Factor: SWOT Analysis..........................................................4
External Environment Factor Porter’s Five Forces Analysis.....................................6
Market Segmentation, Target, and Positioning...........................................................8
Segmentation Factors............................................................................................. 8
Possible Target Market Profiles...............................................................................9
Product Positioning................................................................................................ 10
Marketing Objectives:............................................................................................... 12
Marketing Strategies:............................................................................................... 13
Product Decisions:................................................................................................. 13
Pricing Decisions:.................................................................................................. 16
Distribution Decisions:........................................................................................... 16
Promotional Decisions........................................................................................... 17
Integration and Link:................................................................................................ 20
Coordination and Control:......................................................................................... 20
Conclusion................................................................................................................ 21
References............................................................................................................... 22

Executive Summary
Starbucks as a premium marketer of speciality coffee is operating and competing in the beverage
and snacks industry for years Their product includes roasted high-quality coffee, handcrafted
premium tea and a variety of fresh food items other beverages. Starbucks is launching an iced
drink called Bubble Tea, and this report is written for providing a marketing plan for the Bubble
Tea’s introduction in New Zealand Market.

Situational Analysis
Competitive Forces: Costa Coffee is a prominent competitor. They have a high production
capacity and good distribution channel in New Zealand. The product is custom packed under
various private label brands. This has given the beverage International recognition and
distribution across NZ (Taecharungroj, 2017).
Regulatory Forces: According to the reports over 35% of foods advertised to the children do
not meet the food regulation authority’s parameters. Therefore, jurisdiction has been passed that
after December 2015, the food and beverage products who fail to fulfil the food regulation
authority’s parameters will not be advertised to the kids below the age of 12 years
(Taecharungroj, 2017).
Economic Forces: There are over 2 lakhs of people in New Zealand who are looking forward to
working more in the country. The employment rate will also increase in the near future. The rate
of interest has been pegged at 1% for the last four years. This shows that the macroeconomic
position of the country is in a good state and the economy can further flourish which means
higher business for the entrepreneurs. The new product can expect high demands in the near
future (Dewhirst & Davis, 2015).
Socio-Cultural Forces: The concern of parents regarding children’s eating habits has been
increased a lot. This has forced them to carefully check all the parameters and read the package
labels in order to ensure that their kids are consuming healthy food. The new product will be
developed by keeping these factors in mind (Dewhirst & Davis, 2015).

Technological Forces: Over 22% of people in NZ in the age group of 18-34 years prefer to shop
online via mobile phones. Whereas, over 20% of people in the age group of 18-54 prefer online
purchase from a tablet device (Dewhirst & Davis, 2015).
Demographic Forces: A rise of 10.8 % has been recorded in the household income of residents
of NZ since 2005-2015 as compared to earlier decades. This is an important factor which shows
that parents can spend a higher amount of money to purchase quality products for their children
provided they are healthy for them (Taecharungroj, 2017).
Market’s Size
As of 2019, the current population of New Zealand is estimated at over 4.80 million. And
the total surface area within New Zealand comes in at 104, 427.89sqaure miles. The country’s
population density as on 2018 census was approximately 17.56 individuals per sq. kilometre.
Similar to its neighbouring country, Australia, NZ also had a 5.7% gain in population over the
last five years. The country continues to increase in population, though at a slower rate(Chua&
Banerjee, 2018).
Analysis of Customer needs and Trends
NZ has a dedicated coffee culture. The population of NZ is crazy over tea as they prefer
something that is usually strong and gives real kick after a sip. Also, people in metropolitan cities
prefer quality over quantity. A short quality drink is a strong drink. People of NZ truly stay true
to the British roots by dedicated time to tea and social hour. Kiwis take a break from work to
have beverages in a fine coffee house. The younger population likes ice-blended and fruit-
flavoured drink for a regular day(Di Benedetto, 2017).

Analysis of Competitor
The second largest coffeehouse in New Zealand and in the world after Starbucks is Costa
Coffee. Founded in the year 1961, Costa has over 3000 Stores across the world and multiple
stores in highly populated cities of NZ. Mid this year, Costa moved to three prime locations of
Auckland and invested over 30 million pounds to increase their roasting capacity(Geereddy,
2013).
Similar to Bubble Tea, Costa serves iced drinks. Some of the products are Strawberry
Lemonade, Strawberry cold brew Coffee, Summer berries fruit cooler, and ice cold and berry
delicious. With these products, Costa is already a step ahead of Starbucks (Armstrong, Kotler &
Gaudet, 2015).
Internal Environment Factor: SWOT Analysis
SWOT analysis is an optimum scale to analyse a company’s strength, weaknesses,
opportunities, and threats. In this case, it used to find obstacles Starbucks is likely to face and
find the areas where the company can make an improvement(Chua & Banerjee, 2018).
Strengths:
The company, in a unique way, represents an all-together different business model that is
based on the core values designed for achieving a fragile balance between social conscience and
business profitability. One of the strengths of Starbucks’s is its human resource management
capacities. It always has the human capital to strategically use HR and provide outstanding
benefits to employees. Furthermore, Starbucks follows HR philosophy where employees are a
key part of the business. To ensure a good relationship with them, Starbucks has communication
facilities like an open forum, training programs like mentoring, workshops, and health benefits
like insurance and paid leaves (Geereddy, 2013).
Besides this, Starbucks is focused on offering a high-quality product with an extensive
product mix to assure differentiation. The product line has varieties that include coffee,