Principles of Marketing: Starbucks Energy Drink Brand Extension Report

This report provides a detailed analysis of Starbucks' energy drink, focusing on its marketing strategies and brand extension. It begins with an executive summary and introduction, outlining the company's market position and the report's objectives. The methodology section highlights the use of secondary research to gather data on the energy drink market. The findings section examines the existing brand value, target market segmentation (STP), and the new product's features. It includes a PESTEL analysis, Ansoff matrix, and competitive analysis, particularly focusing on Red Bull. The report concludes with a summary of the findings and references. The report examines various aspects of Starbucks' energy drink, including its market positioning, target audience, and competitive landscape, providing insights into its marketing approach and brand extension strategy. The report also includes an analysis of the political, economic, social, technological, environmental, and legal factors influencing the energy drink's success.

Principles Of Marketing

Table of Contents
EXECUTIVES SUMMERY ...........................................................................................................3
INTRODUCTION...........................................................................................................................4
METHODOLOGIES.......................................................................................................................4
FINDINGS.......................................................................................................................................4
Existing brand and Brand value ..................................................................................................4
Discretion of target market..........................................................................................................5
Explanation of new product.........................................................................................................7
Competition..................................................................................................................................7
CONCLUSION ...............................................................................................................................7
REFERENCESS..............................................................................................................................8

EXECUTIVES SUMMERY
As per the report has covered research on Starbucks energy drink and aim of the report
was to identify the qualities and importance of the energy drink sell buy the Starbucks and how it
can help company to take competitive advantages. It has been used secondary research method
and identity the competition, share market about the market thorough various analysis.

INTRODUCTION
Starbucks Corporation is an American multinational Coffee chain who are operating their
business all over the world, and they are the largest Coffee chains in all over the world.
Starbucks maintains a whopping 40% share of the U.S. coffee shop market, with 14,875 stores
and a net increase of 585 stores. In year 2003 to the 2019, Starbucks generate 25.51 billion that
show their sales in the market and their international stores recorded revenue of 6.19 billion US
dollars in 2019.
Aim of this report is to explanation and introduction of the Starbucks energy drink and
what are the benefits of drink.
METHODOLOGIES
There are two type of research methods that can be used to collect information about the
Starbucks new energy drink. Information is available on the internet about their new drink and
secondary research method will be helpful for the research to conduct research ad collect data
(Bezuidenhout., 2017).
Secondary research method value the data that already exist and information is published
by the Researcher. Research take help of internet articles, surveys and many more methods to
collect data.
FINDINGS
Existing brand and Brand value
Brand Identify Prism
Physique
Energy provided by the Starbucks are contain various ingredient's, and they provide
varieties of the flavour to their customers that makes heir drink more attractive. Starbucks reflect
the core value and maintain the quality that are the core value of this brand.
Personality
To covey brand personality by the Starbucks Energy Drink company use specific style of
Packing that look premium to the customers.
Culture
Starbucks follow the coffee culture and similar they are doing with the Energy drinks
launched by them. They provide Coffee taste in their energy drinks that makes unique taste for
the customers and define coffee culture of US.

Relationship
Starbucks try to build relationship with their customers by writing their name of
customers on their Coffee and energy drinks. It helps in brand personalization.
Self image
Starbucks is famous among the people due to their taste and quality in their energy
drinks. Continuous expansion of the brand and innovation in their product help Starbucks to
create their image within the market.
Reflection
Reflection refers to how brand portray their target customers, Starbucks take help of the
advertisement campaign to aware people about their offers and spread brand awareness
(Majchrzak., and et.al., 2019).
Discretion of target market
STP plan
Segmentation
On the basis of demographic Starbucks target both male and female, age group of 18 to
35. their product is premium so their main target are high income society people. On the basis if
Psychophysics their energy drinks are the sportsperson so their targets are athlete.
Targeting
Starbucks target their energy drink product to the customers who are connected with the
sports, and they need energy to play their sport game (Bezuidenhout., 2017). Social media
marketing technique is used by the marketing team of the Starbucks.
Positioning
Starbucks want to take position as one of the best coffee drink provider, including their
energy drink product. Their main aim is to overtake their competitors like Redbud, so they can
create their brand image and take competitive advantages.
Analysis of new market including Trend's
PESTEL Analysis
Political

political factors like Change in tax structure of target can can affect the profitability of
the Starbucks energy drinks while having good relationship with political leaders can provide
benefits top the company.
Economical
Economical factors like increase in princess of raw material for the energy Drink can
have negative impact on the Starbucks and product prise will increase while decrease I princess
of raw material has positive impact and company can provide product in lower prices (Newman,
Peck and Wilhide., 2017).
Social
Trend and behaviour of the customers change with the time sand it makes necessary for
the Starbucks to follow the customers trend to take competitive advantages.
Technological
Implementation of the new technology at the workplace of Starbucks can help them to
improve their efficiency, and they will able to provide better product quality and services.
Environmental
Starbucks follow all the environmental policies, and they make sure they are following
hygiene practices.
Legal
Starbucks has faced some legal lawsuit where their staff found to discriminating their
customers on the basis of their colour.
ANSOFF matrix
Market Penetration
This strategy focus on increasing sales of existing product to the existing market
(Majchrzak and et.al., 2019). Starbucks can enter the focus on the product that already
demanded by the customers to increase their sale.
Market development
In this Strategy Starbucks can enter in South Africa with their existing Coffee product.
Product development
By using this strategy Starbucks can introduce their new Energy drink product in the
existing market because they will not need to make their brand value.

Differentiation
This is strategy that can be used by Starbucks to enter the new market where they will
introduce new energy drink in the new market South Africa.
Explanation of new product
Starbucks is looking to launch their new product Starbucks energy drinks (Walsh.,
2019). It will come with the new flavour and for the packaging company will hire designers team
to give premium look to their energy drink, so they can attract customers to buy their product.
Competition
Starbucks is looking to expand their business I South Africa where Redbud already have
their presence, and they can give competition to Starbucks.
CONCLUSION
As per the report has been Conduct report on Starbucks who are launching their new
product which is an energy drink. This report has been identify that Starbucks has huge
reputation all over the world, and they cover 40 percent of the market share. This report has been
explained their target market South Africa through the pestle and ANSOFF Matrix. In the end of
this porter has been explain new product of Starbucks and competition in the new market.

REFERENCESS
Books and journal
Bezuidenhout, A., 2017. Essential marketing principles for Non-profit organisations: Views of
marketing managers(Doctoral dissertation, Stellenbosch: Stellenbosch University).
Majchrzak, J., and et.al., 2019, August. Quality management in marketing communication: the
concept of contradiction finding and classification. In 5th international conference on
operational research (InteriOR 2019), Medan. Indonesia.
Newman, T., Peck, J. and Wilhide, B., 2017. Social media in sport marketing. Routledge.
Walsh, M., 2019. Principles of Marketing.