CX554101 Marketing Plan: Launching Starbucks Bubble Tea in New Zealand

This report outlines a comprehensive marketing plan for Starbucks Corporation to introduce Bubble Tea in New Zealand. It includes a situational analysis covering market size, customer requirements, competitor analysis, and internal/external environmental factors. The plan details market segmentation, target market profiling, and product positioning strategies. Measurable marketing objectives are set, focusing on building awareness and achieving market share. The marketing strategies encompass product decisions (brand personality and product modification), pricing decisions (considering consumer demands and competitor pricing), distribution strategies (utilizing existing Starbucks branches), and promotional decisions (using various media channels). The plan emphasizes the importance of coordination and control for successful implementation. This document is available on Desklib, where students can find a wealth of study resources, including past papers and solved assignments.

Running head: MARKETING PLAN FOR STARBUCK’S CORPORATION 1
Marketing plan for Starbuck’s Corporation
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MARKETING PLAN FOR STARBUCK’S CORPORATION 2
Table of Contents
1.0 Executive Summary...................................................................................................................3
2.0 Situational Analysis...................................................................................................................3
2.1 Short description about the size of the market.......................................................................3
2.2 Analysis of the customer or market requirements and changes or trends in the market.......4
2.3 Analysis related to the competitors........................................................................................4
2.4 Identification and analysis of the internal environmental factors and external
environmental factors which brings impact on the marketing objectives of Starbucks..............5
3.0 Market Segmentation, Profile related to the Target Market and Positioning of the Product....6
4.0 Measurable Marketing Objectives.............................................................................................7
5.0 Marketing Strategies..................................................................................................................7
5.1 Product Decisions..................................................................................................................7
5.2 Pricing Decisions...................................................................................................................8
5.3 Distribution or Place Decisions.............................................................................................8
5.4 Promotional Decisions...........................................................................................................8
5.5 Integration and Link..............................................................................................................9
6.0 Coordination and controlling...................................................................................................10
7.0 References................................................................................................................................11

MARKETING PLAN FOR STARBUCK’S CORPORATION 3
1.0 Executive Summary
According to the research, it has been identified that Bubble Tea is considered to be most
well-known non-alcoholic beverages that was first produced in Hong Kong and Taiwan and
which is mostly known to be coffee in the western countries. It has been found that most of the
places in Hong Kong and Taiwan have set up bubble tea shops in their own localities. Since the
Bubble Tea has gained popularity in various parts of Asia, it can be seen that Starbuck's
Corporation is trying to develop a master plan for introducing Bubble Tea in New Zealand for
gaining the attention of the customers towards the product.
This report is based on the marketing plan which is going to provide help to the
Starbuck’s Corporation for introducing Bubble Tea in New Zealand. It can be seen that this
particular marketing plan consists of the situational analysis based on the strengths, weaknesses,
social analysis, situational analysis, marketing strategies, marketing segmentation, coordination
and control associated to the product. In combination with that, this marketing plan also
concentrated on the four Ps which are being explained in a detailed manner within the report and
it includes pricing strategy, product strategy, place strategy, and promotional strategy.
2.0 Situational Analysis
2.1 Short description about the size of the market
During the research, it has been found that strengths, weaknesses, political trends, and
environmental trends of Starbuck's Corporation play an important role for impacting the
innovative marketing plan for Bubble Tea (Harrington, Ottenbacher & Fauser, 2017). Starbucks
is considered to be a global and massive organization that has various kinds of strengths

MARKETING PLAN FOR STARBUCK’S CORPORATION 4
associated with it. It is known to be a strong global organization and they have taken innovative
initiatives within their organization. They have a range of diversified products which are of high
quality and they have a loyal and strong customer base followed by loyal and passionate
employees working in their organization.
2.2 Analysis of the customer or market requirements and changes or trends in the
market
"Cola" was introduced as a soft drink in the year 1960 till then various kinds of beverages
are being introduced in the market. Presently, it can be seen that the retailing of carbonated soft
drinks have reduced to a great extent due to the fact that customers are becoming more health
conscious and they are opting for much healthier alternatives that include sports drinks,
milkshakes, and energy drinks. Hinterhuber (2015) found that the choice of the customers starts
shifting towards healthier, sophisticated, and trendier products in the upcoming future.
2.3 Analysis related to the competitors
According to the research, it has been analyzed that Starbuck's Corporation is trying to
provide the value proposition that the majority of their competitors like Pepsi and Coke belongs
to the soft drinks industries. It has been found that Coca-Cola is at the top of the list with a share
of 43.7% in the market for soft drinks (Dorn, Messner & Wänke, 2016). The main competitors of
Starbuck’s Corporation are Dunkin’ Doughnuts and McDonald’s provide the similar products
but they are unable to provide a coffee house environment for the customers. The competitors
have managed to develop value for the customers by maintaining a good quality of the product
with the accurate price. After introducing Bubble Tea, Starbuck's Corporation is surely going to
overperform that its main competitors.

MARKETING PLAN FOR STARBUCK’S CORPORATION 5
2.4 Identification and analysis of the internal environmental factors and external
environmental factors which brings impact on the marketing objectives of
Starbucks
According to the environmental trends associated with Starbuck's Corporation, it can be
seen that the demand towards caffeine or coffee is quite inelastic within the industry. With the
reduction in income or with the increase in prices of coffee, the potential consumers of coffee are
going to remain uncertain for demanding alternatives to coffee (Snell et al., 2017). For that
reason, the introduction of Bubble Tea can serve the best purpose to replace coffee. The
regulatory or political environment plays a crucial role in the performance of Starbuck's
Corporation. Due to the terrorist attack of September 11, 2001, it has been found thatStarbuck’s
Corporation has struggled a lot to remain active in the competitive market (Garrette, Phelps &
Sibony, 2018).
Researchers have found that the social environment has also resulted in affecting the
Starbuck's Corporation. We are aware of the fact that drinking coffee is a soothing atmosphere is
considered to be an art and since the 16th century it has been found that there had been
coffeehouses in several parts of Europe which tried to create a social gathering. Thus, it can be
assumed that Bubble Tea is going to be a better alternative to coffee as it can be consumed by
people of different ages. Haskova (2015) found that the technological trends are also playing a
crucial role to bring impacts to Starbuck's Corporation. It can be seen that the technology for
preparing coffee has changed over the time and various kinds of espresso machines and brewing
machines are being introduced in the market. These machines serve a great purpose to produce
the best cup of coffee for all the customers (Martínez-Torres, Rodriguez-Piñero & Toral, 2015).
The most interesting fact is that preparing of Bubble Tea is much easier as compared to the

MARKETING PLAN FOR STARBUCK’S CORPORATION 6
preparing of coffee and for that reason, there is no requirement of implementing innovative
technologies for preparing Bubble Tea (Ottman, 2017). Thus, Bubble Tea can be introduced into
the market easily by altering with coffee.
3.0 Market Segmentation, Profile related to the Target Market and
Positioning of the Product
During the time of market segmentation, two different factors are going to be considered
which includes target positioning and target marketing (Taecharungroj, 2017). Primarily, the
research predicts that the target market for Starbuck’s Corporation is going to be all the people
staying in New Zealand ranging from rich and poor as well as young and old. For that reason,
Starbucks is required to utilize various kinds of targeted promotional mechanisms. Starbuck's
Corporation can utilize media sources for their promotion which includes television, magazines,
public relations, internet, radio, publicity and personal selling.Harrington, Ottenbacher, and
Fauser (2017) noted that television is going to be an expensive mode of advertisement for
introducing Bubble Tea but on the other hand it has the capability to reach about 95% of the
people staying in New Zealand.
The students studying in New Zealand listening to the radio with great interest and for
that reason, Starbuck's Corporation can use this mode for advertizing Bubble Tea which will be
able to increase their customer base. Starbuck's Corporation can plan to advertise this new
product via magazines too as magazines are followed by the people of New Zealand belonging to
different age groups (Mason, Cole & Goza, 2017). Based on the positioning strategy it is
necessary for Starbuck’s Corporation to pack the Bubble Tea with different kinds of flavors,
colorful straws, and eye-catching cups.

MARKETING PLAN FOR STARBUCK’S CORPORATION 7
4.0 Measurable Marketing Objectives
The primary aim of the promotion strategy associated with Bubble Tea is that it is
required to develop a strong awareness regarding Bubble Tea throughout the consumers of
younger generations and also for the elderly people. The second objective of Starbuck's
Corporation is regarding achieving the market share of the competitors of soft drinks such as
Pepsi and Coke. Since it has been found that Bubble Tea is a recent product that is going to be
launched by Starbuck's Corporation, for that reason it is necessary to advertise the product as
much as possible (Akgun et al., 2017). Followed by this activity it is necessary to explain the
benefits and usage of the product to the customers for enjoying the drink in a better manner.
Finally, it has been found that Bubble Tea is considered to be a perfect drink for the customers as
they can even drink before going to bed since this beverage is not going to hamper the sleep of
the customers (Wu, 2017).
5.0 Marketing Strategies
Starbuck's Corporation is going to introduce a brand new product which is known as
Bubble Tea and for that reason, it is quite essential to perform a successful marketing campaign
related to this new product.
5.1 Product Decisions
During the time of developing product decisions related to product mix, it is quite
necessary to consider two different factors which include product modification and brand
personality. Brand personality is regarded as the features of any brand and thus for Bubble Tea,
the brand personality is going to be tasty and cool. Dorn, Messner, and Wänke (2016) stated that

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according to the product modification, Bubble Tea is required to be packaged in an attractive
manner because it is a new product which is going to be introduced in the market.
5.2 Pricing Decisions
Pricing is considered to be a crucial strategic factor which is directly associated with the
product positioning. During the time of the price strategy, it is necessary to consider three
individual factors which include consumer demands, potential substitutes, and product life-cycle.
For selling Bubble Tea in New Zealand, it is required by Starbuck’s Corporation to examine all
the price determinants in a careful manner. Hinterhuber (2015) found that there are about 20
Bubble Tea shops that are present in Auckland that those shops have gained much popularity in
the previous years. Since Bubble Tea is a new product which is going to be introduced by
Starbuck's Corporation so the price of the product is going to be comparatively much higher than
other Bubble Tea shops. It has been noticed that the average cost of a single cup of Bubble Tea is
around $6.00 and thus Starbuck's Corporation is required to fix the price of Bubble Tea around
$5.85 for competing with the other competitors.
5.3 Distribution or Place Decisions
Starbuck's Corporation is going to introduce a brand new product in the market which is
Bubble Tea and for that reason, they are required to distribute that product across all their branch
shops in New Zealand for reaching out the people of the whole country (Wei, 2016).
5.4 Promotional Decisions
The essential aim of the promotional strategy related with Bubble Tea is that it is required
to build up a solid awareness in regards to Bubble Tea all through the purchasers of more
youthful ages and furthermore for the elderly individuals. The second target for Starbuck's

MARKETING PLAN FOR STARBUCK’S CORPORATION 9
Corporation is with respect to accomplishing the piece of the overall industry over the contenders
of soda pops, for example, Pepsi and Coke. Since it has been discovered that Bubble Tea is an
ongoing item that will be propelled by Starbuck's Corporation, thus it is important to advertise
the item however much as could be expected (Hinterhuber, 2015). It is important to clarify the
advantages and use of the item to the clients for getting a charge out of the savor a superior way.
At long last, it has been discovered that Bubble Tea is thought to be an ideal drink for the clients
as they can even drink before going to bed since this refreshment wouldn't hamper the rest of the
clients.
5.5 Integration and Link
Marketing is considered to be a business function that consists of product development
and research, promotion or communication, distribution, merchandising, and pricing. The
marketing mix consists of six different elements that are necessary to be considered by
Starbuck's Corporation for marketing well about Bubble Tea in New Zealand. The list of
marketing mix elements is necessary to be considered by Starbuck's Corporation includes
advertising, personal selling, promotions and discounts, direct marketing, public relations, and
event sponsorship (Kokemuller, 2018).
It is necessary to have a clear linkage among all the elements that are being chosen. The
advertisement has got full control over the promotion of any new product like Bubble Tea in the
market as the message are delivered to the customers in an easy manner. Personal selling is
associated with the direct marketing and is required to be performed well followed by providing
discounts on the new product which is being introduced in the market. Direct marketing includes
personal selling and sales promotion which is also required to done well followed by maintaining
a better public relation (Kiseleva, 2017). Finally, after launching Bubble Tea by Starbuck’s

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Corporation they are required to perform event sponsorship where they are going to pay for the
entertainment or sports events for promoting their new product.
6.0 Coordination and controlling
According to the overall research, it can be seen that the coordination and control are
quite simple for Starbuck's Corporation as they are concentrating to introduce a new product in
the market of beverages. The marketing method can be controlled and coordinated in an easy
manner by Starbuck’s Corporation due to the fact that the management team of the organization
is much familiar with the introduction of new product in the marketplace (Wensley, 2016).

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7.0 References
Akgun, A. E., Keskin, H., Ayar, H., & Etlioglu, T. (2017). WHY COMPANIES GO POSITIVE
MARKETING INNOVATIONS: A NEW THEORETICAL PROTOTYPE FOR 4PS OF
INNOVATION. Journal of Business Economics and Finance, 6(2), 70-77.
Dorn, M., Messner, C., & Wänke, M. (2016). Partitioning the choice task makes Starbucks
coffee taste better. Journal of Marketing Behavior, 1(3-4), 363-384.
Garrette, B., Phelps, C., & Sibony, O. (2018). Structure of the Problem: Analytical Frameworks.
In Cracked it! (pp. 95-116). Palgrave Macmillan, Cham.
Harrington, R. J., Ottenbacher, M. C., & Fauser, S. (2017). QSR brand value: Marketing mix
dimensions among McDonald’s, KFC, Burger King, Subway and
Starbucks. International Journal of Contemporary Hospitality Management, 29(1), 551-
570.
Haskova, K. (2015). Starbucks Marketing Analysis. CRIS-Bulletin of the Centre for Research
and Interdisciplinary Study, 2015(1), 11-29.
Hinterhuber, A. (2015). Violations of rational choice principles in pricing decisions. Industrial
Marketing Management, 47, 65-74.
Kiseleva, A. M. (2017). Marketing strategy of the territory in the investment policy of the
city. Strategic Management, 22(1), 22-29.

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Kokemuller, N., (2018). What Is a Marketing Communication Mix? Retrieved from:
http://smallbusiness.chron.com/marketing-communication-mix-63541.html [Accessed 18
Jul, 2018]
Martínez-Torres, M. D. R., Rodriguez-Piñero, F., & Toral, S. L. (2015). Customer preferences
versus managerial decision-making in open innovation communities: the case of
Starbucks. Technology Analysis & Strategic Management, 27(10), 1226-1238.
Mason, A., Cole, T., & Goza, N. (2017). STARBUCKS: A CASE STUDY OF EFFECTIVE
MANAGEMENT IN THE COFFEE INDUSTRY. Journal of International Management
Studies, 17(1).
Ottman, J. (2017). The new rules of green marketing: Strategies, tools, and inspiration for
sustainable branding. Routledge.
Snell, S. A., Lemley, A., Snell, S. A., & Yemen, G. (2017). Starbucks: Schultz Back in the
Brew. Darden Business Publishing Cases, 1-18.
Taecharungroj, V. (2017). Starbucks’ marketing communications strategy on Twitter. Journal of
Marketing Communications, 23(6), 552-571.
Wei, C. (2016). MARKETING STRATEGY FOR SETTING UP AN OWN COFFEE SHOP IN
CHINA: Using Starbucks as a case study.
Wensley, R. (2016). The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.
Wu, H. C. (2017). What drives experiential loyalty? A case study of Starbucks coffee chain in
Taiwan. British Food Journal, 119(3), 468-496.