CX554101 Marketing Plan: Starbucks Bubble Tea Strategy, Tauranga

This report presents a comprehensive marketing plan for Starbucks' introduction of Bubble Tea into the Tauranga, New Zealand market. It begins with a situation analysis, examining consumer needs and the market size, followed by a competitor analysis and an assessment of internal and external environmental factors using PESTLE and SWOT analyses. The plan details market segmentation and profiling, targeting specific demographics such as youth, adults, and older individuals, and positioning the product as high quality with moderate pricing. Measurable marketing objectives are outlined, focusing on building awareness within the target demographics over three years. The report concludes with marketing strategies related to product, pricing, place, and promotion, including recommendations for each element, and emphasizes integration, coordination, and control to ensure successful implementation. This document is available on Desklib, a platform offering study tools and resources for students.

Introduction to marketing

Introduction to marketing 1
Executive Summary
Market Plan is a report that outlines the market strategy of the organisation which will
be adopted in the coming future. The marketing plan includes the overview of business
marketing and advertising goals. It helps to promote new services in the market in order to
aware the consumers towards it. Marketing plan of the company contains the list of actions in
which the company has to follow for the success in the business. Marketing Plan is developed
by the company by analysing the market and the environment. Marketing Plan is effective if
it is developed by analysing the environment. It is essential for the company to develop the
marketing plan by analysing the external and internal environment. It is beneficial for the
expansion of the business. In this report, the discussion is made on the marketing plan for
promoting the product in the market.
Starbucks Limited is planning to introduce the new product which is called Bubble tea
in the market of Tauranga. It becomes a popular and largely distributed beverage around the
world among the various nationalities. In this report, the marketing plan is developed as per
the internal and external analysis of the environment. The company expand the business in
the market of Tauranga, New Zealand.

Introduction to marketing 2
Contents
Introduction...........................................................................................................................................3
Situation Analysis..................................................................................................................................3
Consumer needs................................................................................................................................3
Market Size.......................................................................................................................................3
Analysis of Competitors....................................................................................................................4
Internal Environment Factors External Environment Factors............................................................5
PESTLE Analysis..........................................................................................................................5
SWOT Analysis.............................................................................................................................6
Market segmentation and profile...........................................................................................................7
Targeting...........................................................................................................................................8
Positioning.........................................................................................................................................9
Measurable Marketing Objectives.......................................................................................................10
Marketing strategies............................................................................................................................10
Product strategy...............................................................................................................................11
Recommendations.......................................................................................................................12
Pricing strategy................................................................................................................................12
Recommendations.......................................................................................................................13
Place Decision.................................................................................................................................14
Recommendation.........................................................................................................................14
Promotional Decision......................................................................................................................14

Introduction to marketing 3
Recommendation.........................................................................................................................15
Integration and Link........................................................................................................................15
Coordination and Control................................................................................................................15
Conclusion...........................................................................................................................................16
References...........................................................................................................................................18

Introduction to marketing 4
Introduction
In the beginning of the report, the analysis of the organisation will be done in order to
analyse the internal and external factors that affects the business. After that, the discussion is
also made on the market segmentation profile in which the markets are targeted in order to
promote the bubble tea in the market. At the end, the market strategy has been developed
from which the company can attain the success in the product.
Situation Analysis
Consumer needs
The consumers of the Tauranga are more prefers the beverages. Earlier, the
consumers like to drink the soft drinks in the market such as Cola and the others. After that
there are many beverages enter market such as bottle of water, milk teas and it getting more
popular. Today, the volume sale of carbonated drinks is declined as the demand of consumers
is getting change (Guenther, Saunders, Dalziel, Rutherford, & Driver, 2015). Nowadays, the
consumer more prefers to drink the healthy foods and drink which is beneficial for the health
such as milk juice drinks, sports drinks, energy drinks and the others. It has been seen that the
consumer demand for the healthy products is increase continuously and bubble tea is also
considered as the healthy tea for the company. It is expected that the demand of consumers is
increases towards the bubble tea as it contains the healthy ingredients such as milk shakes
and fruits (Karelakis, Zevgitis, Galanopoulos, & Mattas, 2019).
Market Size
Food and beverage market of New Zealand is contributed $ 30.7 billion in exports in
2014. The New Zealand exports the $ 66.2b. The food and beverage industry accounts for
46% of all goods and services exports. The beverages firm is increases in New Zealand and

Introduction to marketing 5
earned the revenue of $51.5 billion in the year 2014. But now, it is expected that the industry
will grow with the high rate with the continued development of high value categories (Mbie
Govt, 2015).
(Source: (Mbie Govt, 2015)
The bubble tea market was valued at the $1957 million in the year 2016 and it is
projected to reach $3214 million by the year 2020. The high demand of consumers of
beverage firms in New Zealand is expected to arise. Bubble tea is growing with the CAGR of
7.40% due to which it can be said that the company can attain the success while expanding
the business in New Zealand market (Allied market research, 2018).

Introduction to marketing 6
Analysis of Competitors
Starbucks has high brand image in the market due to its high demand of its coffee
services. The coffee services of the organisation are popular in the market due to which the
organisation achieves the success in the business. The company has high competition market
as there are large companies who provide the similar nature of services to consumers in terms
of beverages. The main competitors of Starbucks are McDonald, Dunkin Doughnuts and
many others. The competitor of the company provides the similar services to consumers such
as soft drinks and the many others.
Internal Environment Factors External Environment Factors
PESTLE Analysis
Political
The different country has different regulation
related to expansion of business. There is a
huge risk to expand the business in New
Zealand market as the rules and regulation is
change with the change of government.
The New Zealand has the better environment
to do the business and trading because the
government of New Zealand put the less
restriction in trading the goods and services
(Kelsey, 2015).
Economical
Inflation rate is less in New Zealand due to
which the prices of the products is low. The
organisation can produce the product at the
low prices.
Social
The majority of people of New Zealand
adopt the Christian ‘religion. It is observed
that the Christian’more prefers the drinks.
Technological
New Zealand is highly adopting technology
market.

Introduction to marketing 7
In the NZ, the 99% of people are literate due
to which the company can opportunity to hire
the qualified employees.
The food and beverage firms of the market
use the high machines to produce the product
(Chen, Flint, Perry, Perry, & Lau, 2015).
Legal
The government of New Zealand develops
the law for the protection of consumers such
as Consumer’s rights, consumer’s right to
speak, right to complaints and many others.
Labour laws also affect the business of the
company.
Environmental
The government of New Zealand develops
the policies and laws to protect the
environment.
The company has to follow the laws and
policies for the long terms survival in the
market.
SWOT Analysis
Strength
High Brand image in the market
Strong financial performance due to high
demand of coffee products
Large number of coffeehouse in the world
just because of its sizes and high volumes
(Starbucks, 2018a).
Weaknesses
It is highly dependent on the key inputs
because such as coffee beans. If the cost of
input is rises it has to face the risk of raising
the cost.
High prices as it deliver the premium
services (Starbucks, 2018b).
Opportunity
Expand the business to the large network
Expansion at the online platform
Threat
The high threat of competitors such as Native
Infusions, Teatotal, Bell tea, Twinings, Jed's
Coffee, Burton's (Starbucks, 2018a).
Face the challenges due to global supply

Introduction to marketing 8
chain network.
Market segmentation and profile
The market segmentation is process of dividing the potential customers of the market into
different groups, segments and according to their different characteristics (Baker, 2014). This
segmentation helps the company to the target the customers who will make the purchase of
Bubble tea. The different segments will be considered by company in the New Zealand
market include: -
 Demographic segmentation: - In this segment, the Starbucks will segment the
customers based on their characteristics which include age, family, gender, income
and many other (David, 2011). The bubble tea will be available for the customers with
age group of 15-25 and 25-45 or above. These people majorly include professionals,
bachelors, students, and many others with the income group of middle and high-
income group.
 Behavioural segmentation: - In this type of the market segmentation the market
remain divided based on the behaviour, usage, decision making and many others
(Frynas & Mellahi, 2015). Starbucks will be offered to generally youth who likes to
consume the fruits, milk, and other different flavours.
 Geographic segmentation: - Starbucks Company has considered the people
according to the geography also which include the people of Tauranga City in the
North Island, New Zealand to whom they like to offer the products and services. The
reason due to which geographic segmentation is selected because New Zealand

Introduction to marketing 9
market is wide due to which they have selected on place because it will be difficult for
them to target the entire market.
Targeting
The target market is the market to which the company want to offer the products on
the priority basis with the hope that they will consume the product (Chernev, 2018). The
possible target market of the company include -
Possible target
market
Description
Youth  Demographic: - The youth has been considered as primary target
market for the bubble tea as they like to consume the nutritious
product with different flavours. The age group that is target
include 18-25 years with middle and high-income group.
 Geographic: - The youth people of Tauranga city are targeted
because of their attitude towards the tea that will be preferred by
them.
 Behavioural: - The behaviour of the people shows that the usage
of the tea is increasing by youth as this makes them refresh.
Adults  Demographic: - The adult people are targeted because they like
to consume the tea. The people who visit the place are more as it
include different beaches and water Adventure Park. For these
adults with the age group 25- 45 years the Starbucks company
will offer the bubble tea.
 Geographic: - The youth people of Tauranga city are targeted
because of their attitude towards the tea that will be preferred by

Introduction to marketing 10
them.
 Behavioural: - The drinking habits of the adults are changing and
they prefer the new products that will add value to their drinking
preference (Hollensen, 2015).
Old age  Demographic: - The old age people are considered as their third
target segment because these people are addicted towards the tea
due to which they will consume the tea that is for sure (Bhasin,
2019). The age group of the consumer that are targeted include
more than 45 years.
 Geographic: - The youth people of Tauranga city are targeted
because of their high consumption of tea towards the tea that will
be preferred by them (Kotler, 2015).
 Behavioural: - The drinking habits of the old age people are
becoming more focused towards the drinks that offer them
benefits in terms of nutrition and vitamins that include fruits and
milk.
Positioning
The positioning is the place of the product in the mind of the customers comparing it
with the competitors present in the market (Grant, 2016). Starbucks Company new product
that is bubble tea will have the position in the market with the high quality and moderate
price. The competitors of the company include Teatotal, Bell tea, Native Infusions, Twinings,
Jed's Coffee, Burton's, and many others (Todd, 2013). The bell tea who is the competitors of
the company falls under the quadrant of high income and high quality that is different from
the Starbucks bubble tea that will be available in the market. This position will be set by the

Introduction to marketing 11
company as they ensure that they are able to provide the high quality products and easily
affordable for the people present in the market.
Measurable Marketing Objectives
The objective of the promotion strategy majorly for the bubble tea company of Starbucks is
given below –
 The marketing objective will be starting the strong awareness about the Bubble tea
among the youth as well as the adults in next 3 years. The bubble tea is a new product
for the Starbucks wants to set an image in the market. The objective is to make use of
the different promotional tools for generating the awareness about the taste of buddle
tea and its convenience for the friends and family members.
 Another objective of the company is winning the market share of the company over
the other top tea players that include Bell tea, Twinings and many others (Todd,
2013).
 The third objective of company for the buddle tea will be to increase the sales of
product by 15% in the coming one year.
Marketing strategies
Marketing strategies is set tool that the firm used to pursue its marketing objectives in
the target market. The marketing strategies are implemented by the company in the market in
order to perform effectively in the market where the company is launching its products
(Rothaermel, 2015). The below given are the Starbucks marketing strategies for their new
bubble tea in the market of Tauranga city of the New Zealand-