week 5. learning team b. essay

Running head: MARKETING PLAN: STARBUCKS NITES 1

Marketing Plan: Starbucks Nites

Marianne Gikas, Ashley Walters, and Janell Houston

MKT/421

January 17, 2013

Alison Curtis

MARKETING PLAN: STARBUCKS NITES 2


Starbucks is arguably the number one coffee shop in the United States and rapidly

growing throughout the world. The success of Starbucks did not come easily and it did not come

overnight. Trials and errors of new promotions, coffee lines, specialty drinks have given

Starbucks a unique view of the customers wants, needs, and expectations of the company.

Because of Starbucks leading growth and international success it seems only fit that the company

continue to expand the product line and offer new items that the target market purchases.

Looking solely at the main source of Starbucks revenue almost half of the profit comes from a

target market consisting of adult males and females ages 25-40 coming from different regions,

ethnic backgrounds, social status and different psyche graphics. This is a wide range of different

demographics to target one specific new product so looking into the age range and customer

demographics of the company an expansion to the menu seems logical. Starbucks Nites is a

strategic expansion in the menu to include alcoholic beverages after four o’clock in

demographically acceptable locations that will lead to an increase in profits.

Marketing Plan: Phase 1

Overview of Existing Organization

It was back on March 30, 1971 that the very first Starbucks opened its doors in the

waterfront town of Seattle, Washington. As peoples’ love for coffee continued to grow over the

years, so did the popularity of the Starbucks coffee shops, which as of July 2012 results in the

company becoming the largest coffeehouse in the world, and has more than 17,500 stories in 61

countries. Starbucks sells numerous other items than just hot and cold beverages; items such as

sandwiches, pastries, snacks, coffee mugs, tumblers, and even shot glasses, and they also have

ice cream and coffee products in local grocery stores.


Description of New Product and Service

Starbucks has a desire to tap into a new market without the need to change much about

their current coffeehouse locations, so they have decided to attract new customers or at least

bring back their daily morning customers more than once a day. So, to bring in this additional

revenue Starbucks; will is known as “Starbucks Nites” during the hours of four p.m. to closing

time daily. During Starbucks Nites hours customers will be able to enjoy wine and beer with a

special menu of appetizers and evening selection of foods; however, the regular menu items will

also be available during this time. At this current time, this new service is being tested at about

20 locations across the United States, and demanding on the public’s response to Starbucks Nites

will depend rapidly how , and what areas that this new service will open in. Starbucks Nites is

the perfect setting for those people who want to relax and have a glass of wine or a beer with a

friend after work or on a day off without having to go into a restaurant and order a full meal or

go into a bar; this is definitely that happy medium-in-between place.

This paper will show the importance of marketing, how SWOTT analysis is a benefit and

can benefit a company, as well as a marketing research approach.

Importance of Marketing

Marketing in a business is important because customers need to have knowledge and

understanding of products and services to buy. Marketing to potential buyers is vital for the

success of a business as it introduces new products and services to customers. The customer will

buy a product well publicized and has information that is convenient to attain. With marketing,

Starbucks products or services are exposed to customers. When Starbucks markets a product to a

target audience, the customer believes that he or she is in need to own that Starbucks product.

Starbucks has a variety of merchandise to offer people and an in store retail service to ensure the


customer is well cared for. If a target customer is satisfied with a product or service, a repeat

business may result.

Starbucks depends on marketing to sell products and services to generate a profit.

Without proper marketing, a business may not produce a profit and lose customer base.

Marketing by advertising through multi-media is necessary to promote products and services.

Increasing ways for customers to find information on Starbucks products and services is a

marketing strategy.

SWOTT Analysis

Starbucks is likely the most popular coffee house in the United States and may have

come to a cap on retail merchandise. What if your favorite coffee shop was also your favorite

wine and beer destination to unwind and relax without the pressures of the bar scene, but a more

relaxed ambient environment to sit next to a fire and enjoy the peace and tranquility that

Starbucks Nites illuminates.

Many people think of coffee as a morning or afternoon beverage so it seems only fit to

expand the beverages available to customers based on the long hours that Starbucks is open,

many as late as ten p.m. Starbucks Nites includes an evening menu available after four p.m.

which includes various wine selections, ranging from $7- $9 per glass, and bottled beer for $5.

The selections of wine and beer will be determined based on customer population in that region.

Starbucks Nites will be available at suitable closed-off locations and will be regulated via state

and local liquor laws and licensing requirements to serve alcohol. By expanding their menu,

Starbucks is creating an opportunity to expand its services to a new market as well as strengthen

the relationship between loyal customers who also enjoy consuming alcohol.


Starbucks Nites will create many hurdles for the company to overcome to make this

expansion a success, careful and strategic marketing management will be a must. Starbucks will

have many strengths going into this expansion, for example Starbucks largest target market is

adult males and females ages 25-40 years old makes up 49% of Starbucks revenue. This is a

target age for wine and beer drinkers, especially since most young adults may be trying new

wines for the first time creating a bond of memory that will ensure customer loyalty. Starbucks

target market of young adults are also the ideal market for word of mouth business, and for a

location that encourages customers to stay and relax in store this will be an ideal location for

customers to invite their close friends and family to join them. Starbucks could be at the breaking

point for a new trend in social marketing for an alternative location to enjoy an adult beverage in

a more relaxed and comfortable area than a local bar or restaurant. The idea that customers are

welcome to come and go as they please is an advertising advantage over restaurants that can

make the customers deem rushed or bar scenes that tend to be loud and crowded. This expansion

can also impose a threat to the company for simple reasons, such as loss of revenue and customer

loyalty.

Marketing Research Approach

Many marketing research approaches may be considered when an organization is

introducing a marketing strategy. Depending on the type of business, the customer base is the

focus of the market research. Marketing research is an attempt to determine what is interesting

to the target audience. As an organization chooses the right approach to marketing research,

various techniques may be used to find the target audience such as observations, surveys, web

analysis, focus groups, interviews, and field experiments. Starbucks marketing research

approach is to collect data from customers and fulfill the expectations of the customers.


Starbucks may find that using a variety of marketing research activities is helpful to find

the target audience. Starbucks strategy is focused on giving customers an experience that will

bring repeat business (Vote For Us, 2012). The first tactic is to serve customers a quality cup of

coffee at a competitive price. The next tactic or strategy is to provide customers a convenient

and comfortable place to stop on the way to work or on the way home. Another tactic is to

provide customer satisfaction by ensuring the customer is enjoying each visit. The next strategy

is to create partnerships with venders to provide variety merchandise and quality brands. The

last tactic is to provide innovation yet quality products and services that evolve and compete with

other coffee businesses in the industry (Vote For Us, 2012). Starbucks created an atmosphere of

product and services focused on the target audience’s demand.


Expanding the products available through a company is a big risk for the chance of an

extreme failure or perhaps an extremely profitable opportunity. Once a company has decided to

follow through with the creative idea or new product a marketing strategy needs to be thoroughly

researched and a specific plan put in place. The first step is to properly research marketing

techniques from competitors, analyze the market trends and identify the target market for the

product. Expanding the menu to include alcoholic beverages at Starbucks creates an entirely new

product as well as the opportunity to market the atmosphere Starbucks Nites offers its guests.

Segmentation Criteria

When it comes to satisfying the needs of potential clients, it is important for a company

to properly identify the generic markets; especially when it comes to market segmentation. Bars

and restaurants are easy places to meet, grab a drink, and catch up with a friend, but they are

usually noisy and overcrowded. Starbucks Nites, on the other hand, offers that quick spot to pop


into that is a quieter environment to have a class of wine or a beer and catch up with that friend

in a relaxed atmosphere. The problem with the locations of current bars and restaurants is that

they can be loud and girls get hit on and picked up on, while they are having a hard time

grabbing a quiet table and spending time catching up with friends. When the company

researched product markets, it was realized that existing bars and restaurants do not pose direct

competition for Starbucks Nites; however pricing and staying close to those prices in local areas

will play a significant role.

Target Market

The target group for Starbucks Nites, are men and women over the age of 21; or the

minimum drinking age depending on the state it is located in. However, the premium catered

target market for Starbucks Nites is married women who are between the ages of 25 and 40 years

old, who are needing and seeking a quiet place to gather, relax, and enjoy catching up with their

friends. These women are looking for a place outside of the home and workplace where they can

have a little unwind time without all the noise, headaches, and overcrowding that the bar scene

has to offer. Starbucks Nites believes that these woman between the ages of 25 and 40 years old,

will bring them the most frequent business and be their most regular and loyal customers.

Organizational Buyers and Consumers

The new concept of changing Starbucks from a general coffee shop to an alcoholic

beverage and coffee shop is an attempt to increase the business’s revenue. The name will change

to Starbucks Nites as the store will serve alcohol in the evening hours after 4:00pm, attracting

different types of organizational buyers and consumers. With the evolutionary change,

Starbucks may start an exclusive brand of wine or beer. Starbucks Nites could potentially find


organization buyers within wineries or liquor stores that support the products and services.

Starbucks Nites could expand by owning a winery to sell products out of liquor stores and from

Internet websites. Starbucks Nites organization has the potential to become a global

marketplace, selling products and services worldwide.

The organizational buyers and consumer may consist of vendors, sponsors, manufacturers

and businesses that are interested in the market. Vendors may include stores such as Target

Corporation that carry Starbucks Nites products on shelves and may allow a place for Starbucks

Nites to rent a space that is sanctioned off from rest of the Target store. Starbucks Nites has an

opportunity to produce company product lines and promotional products. Starbucks Nites

products may consist of items such as glasses with logos, clothing, wine openers, insulated drink

holders, and unique brands of alcohol.

The organizational consumers focus on the customers’ needs and wants. “They buy

goods and services that will help them meet the demand for the goods and services that they in

turn supply to their markets (Perreault, Cannon, & McCarthy (2011).” The majority of

Starbucks Nites customers are men and woman of a variety of ages, with the expected outcome

catered to females between the ages 25-40 years old. The reason of focus on adult females is

because the legal age to drink alcohol in most states is 21 years of age. Many females in the

focused age range want and need a place that is quiet to talk with people. Starbucks Nites offers

an atmosphere that is not loud and overcrowded. Starbucks Nites offers a place to drink alcohol

that has low lighting and relaxed environment that allows people to feel comfortable without the

pressures of a bar atmosphere. People tend to get tired of the bar atmosphere and want a place to

meet with friends or family.

Effects on the Marketing Strategy


A marketing strategy is influenced by the organizational buyers and consumers. Many

businesses focus marketing strategies by researching who the target buyers and consumers are.

Starbucks Nites rely on the buyers that are interested in economic growth and consumers who

are interested in alcoholic beverage consumption. Starbuck Nites uses marketing strategies and

ideas that creating an innovative result for organizational buyers. An organization buyer and

consumer are interested in new ideas that bring attention to the market, thus building on the

potential growth of the industry. Starbucks Nites market strategy is to draw in loyal customers

and give them a positive socializing experience. Starbucks Nites marketing strategy is

influenced by the customers who congregate and want alcohol in a comfortable atmosphere.

Competitive Landscape

Starbucks is the United States largest coffee retailer, the brand name and logos are

nationally recognized giving the company a huge advantage over local shops just to start. The

competition for baristas that also serve alcohol is an upcoming trend that does not already have

marketing platform to follow. Starbucks has the opportunity to use their brand name to create a

platform for this service and squash the few competitors out there. Defining the market strategy

needs to solely focus on the target market Starbucks is trying to reach: married middle class

working women who are between the ages of 25 and 40 in urban areas. This stems from the

Starbucks target market but narrows the focus to those who would truly enjoy the new product.

By offering alcohol during the evening hours Starbucks is not primarily selling just a beer or

glass of wine but the ambiance of the serene and calming atmosphere that Starbucks offers. The

relaxation of enjoying a book while sitting in an oversized leather chair, or chatting with some

friends by the fireplace, these are all scenes that Starbucks is truly selling to its guests. It is the

memories and enjoyment the guests will feel as they enjoy their glass of wine or beer that will be


stuck in their mind which creates loyalty and brings the guests back for the same experience,

Starbucks Nites.

Because of the lack of coffee bar competition, Starbucks Nites has a strength to become a

trend setter and create a tone for future coffee shops to follow. Of course just because there is not

a lot of coffee shop competition does not mean there will not be a lot of competition from other

sources such as bars or restaurants. Starbucks has to focus on the primary target market they are

trying to reach and sell the benefits of the coffee shop scene of the loud, dark, and crowded bar

scene or the restaurants that push large meals and sometimes rush customers out of booths or

tables to serve the next guest. At Starbucks Nites, guests are not rushed to a chosen table for

them but given the choice of a table and chairs or perhaps a couch or loveseat with a significant

other or surrounding the fire in oversize chairs talking with friends. It is the cleanliness, quiet and

peaceful environment that will make customers comeback and implant memories that the target

market will continue to return for. Starbucks will likely need to expand the food options

available but not to the extreme of full course meals.

Identifying the target market is the first and most important part of the marketing aspect.

With the right target market Starbucks will be able to establish itself as a chosen location to

enjoy an alcoholic beverage over the bar or restaurant scene. The competitive landscape of

knowing the strengths and weaknesses this expansion will create for Starbucks is the tools to use

to become successful, profitable and an everlasting choice for its guests.


Launching new products in a marketing campaign require extreme attention to detail and

a persistent effort for success. This starts in the books with research and brainstorming, but once

a product is chosen the decisions become much more literal. Starbucks Nites is an extension of


the Starbucks brand and existent company that will bring about a new twist the already relaxing

and comforting feel of a coffee house. Starbucks Nites is an extended menu that includes wines

and bottled beers available after four o’clock, the focus of the marketing campaign will be to first

promote the wine selection available.

Attributes of Product

The attributes of what Starbucks Nites will offer surpasses just the wine and beer. The

product essentially is the atmosphere from the moment the customer enters the door. The wood

detail to the walls, oversized sofas and chairs, fireplaces, calming music, clean environment and

aromatic aroma of the coffee sets the tone for the customer from the moment they walk through

the door. The selection will not be overwhelming, but inclusive of a flavorful selection of wine

from sweet to dry, and a light to dark. The bottled beer selection will be minimal and include a

local brewed option to tie the company to the community and local trends. The glassware will be

stem less wine glasses and pint glassware solely for bottled beer. Starbucks can extend the

product line to eventually include a Starbucks wine selection and glassware for purchase.

Starbucks has a competitive advantage in retail due to the popular sales of their coffee products

and accessories, including wine and beer glasses at the same reasonably inexpensive price will

likely be an easy transition. The affordability and comforting environment is what keeps

customers loyal and willing to try new products because of the faith in the product. The

promotion will not overtake the feel of the coffee shop environment but create an extension and

reason to enjoy time spent there at all hours of the day.

The Product Life Cycle

The product life cycle refers to the phases and lifespan of a product while on the market.

A product follows a series of stages after development that includes the introduction, growth,


maturity, and decline. The length of a product life cycle varies for each product, first starting as

an idea and finally ending when the product is removed from the market. Once an idea is

developed the product may start the first stage to the product life cycle. The pace that the

product will move through the product life cycle depend the factors within the industry and how

the product develops in the stages.

Starbucks Nites will introduce new wine products and start advertising. The first stage of

the product life cycle is the introduction phase. The introduction phase is where the wine

product is presented and offered on the market. The introduction phase requires a high

advertising rate but low profit and growth rates in the beginning.

After the initial introduction of wine products, the next stage of the product life cycle is

the growth phase. During the growth phase, sales and profits start to increase at a rapid pace.

The growth phase gives the company the opportunity to advertise and promote the product

before competitors implement a strategy to benefit from any success. The growth phase is where

Starbucks makes profits because competitors are not aware of the success of wine product yet.

Once the wine products are circulating the market industry, the third stage of the product

life cycle begins which is called the maturity phase. At this point, other companies may create

similar wine products and market the products competitively. The maturity phase is the growth

rate is at the peak and the sales continue at a steady pace. At the maturity phase, the company

may decide to change or upgrade the product to maintain with a competitive edge.

The final stage of the product life cycle is the decline phase. The wine product starts to

decrease in sales rates because consumers have bought the products and competitors are

promoting the same or similar products. The decline phase is the time a product is taken off

shelves and discontinued sales. According to J. Riley (2012), “A branded good can enjoy


continuous growth, such as Microsoft, because the product is being constantly improved and

advertised, and maintains a strong brand loyalty.”

How the Product Life Cycle Affects Marketing

The product life cycle affects the marketing strategies of Starbucks Nites because the

design will determine the path of the future. The phases of the product life cycle will give

Starbucks the opportunity to change or alter the process. The product sales, revenue, and product

are predicted from the mapping out the product life cycle. The marketing of the product is

affected by the forecast of introduction, growth, maturity, and decline of the product life cycle.

Positioning and Differentiation Strategies

In an ever changing, growing, and competitive environment; it is imperative that

companies evaluate and refresh their products in a way that serves their customers the best. Over

time as companies evaluate and refresh their products in a competitive business world, it is also

necessary that they keep in mind that the needs, priorities, and perspectives of their customers

are constantly changing at rapid speeds.

Product differentiation is used to encourage customers to see a product or service as

different and desirable through attributes such as price or quality. After a company chooses how

to differentiate their product or service, the next step of the process is product positioning.

Product positioning is how a company makes brand identification for the product or service that

they are offering to the public.

Pricing Strategy

An important strategic issue is pricing, which is important because of the relationship that

is has with product positioning, There is no single right way when it comes down to determining

the price a company will choose to sell their product or service to customers at. There are three


main aspects to creating a price strategy; first you must know your customer, second make sure

that you know your competitors, and third it is greatly important that you know your numbers.

Other factors that will affect your price can be looked at once the company knows their numbers,

the pricing of their competitors, and a price for their product or service that will be accepted,

expected, and tolerated by their customers.

Profit maximization will be the pricing objective of Starbucks Nites for the first few years

that it is opened. Seeking to maximize current profit, Starbucks Nites will set their price equal to

that of the local bars and restaurants located within 15 miles of their locations; this way the

pricing will be based on the local locations, for the main reason being the pricing and taxes

between states such as California and Minnesota being hugely different. Over the long term, the

company will be seeking to increase market share. When it comes to future price, that would be

determined at that time based upon an analysis of the current market conditions. It is important

for Starbucks Nites to be cautious, and make sure that their price is not too low; as this could

lead to customers associating low price with low and poor quality goods and services.

The price strategy is something that Starbucks Nites will constantly need to reevaluate.

Reevaluation of the pricing strategy will ensure that pricing for the goods or services is equal to

those of the competitors who are offering similar alternative goods and services within 15 miles

of each location. The selection of local brewed beers and a smaller selection of wine will make

selections easy for the customer at a competitive but affordable price.

Starbucks Nites is a complex marketing strategy that focuses on all aspects of the

product. The attributes of the product are what will make the customers interested in looking; the

product life cycle for marketing Starbucks Nites will be everlasting because of the established

market. The strategic pricing method keeps Starbucks competitive will competition and


affordable for the target market. The promotion for Starbucks Nites will be essential in the

success factor for each location. Starbucks Nites cannot take over the warming and relaxed

environment and turn loyal customers away but become a reason for those loyal customers to

return consecutively more than previously.

Channel Management

Channel Management is used as a center point for companies to market goods and

services. Channel management focuses on reaching the customer by means of communication

within call centers, retail stores, direct sales, and websites. Starbucks Nites may use channel

management as a strategizing tool to improve customer relations, increase revenue, and reduce

costs (Capgemini, 2013). Starbucks Nites has the opportunity to use channel management to

transfer goods and services through a series of activities with the goal of a marketing profit. A

popular marketing channel for many companies including Starbucks Nites is conversation via the

digital and social media, such as email. The wide spread communication through the Internet is

driven by advanced technologies and easy access by a vastly diverse society. The Internet allows

knowledge and communication to travel quickly.

A channel marketing manager is responsible for discovering the outlets used within

channel marketing to sell products and services to consumers. Channel marketing is an effective

tool used by management to generate distribution channels and build marketing strategies.

Without channel marketing, a manager may not have the resources to compete with other

companies in the industry. The channel marketing manager focuses on organizing pathways

used to sell and gain loyalty from the consumers.


Product


Starbucks Nites will include a select number of options for bottled beers and a basic

selection of wines. Marketing research has provided marketers with the target market

demographics of the largest percentage of Starbucks customers: 49% of profits come from males

and females between the ages of 25-40. There are many different locations, ethnic backgrounds,

education levels, social characteristics that each customer possesses and not all will be enticed to

travel to Starbucks for alcohol. Determining a specific target market is essential to develop a

strategic marketing plan that will be successful for this expansion. Starbucks has a wide variety

of product mix that appeals to all markets which is a strength for the company going into this.

Starbucks already knows that many of the customers enjoy trying new things and are willing to

put their trust in the product line Starbucks offers. The age range for Starbuck’s target market

will be also be a strength for Starbucks Nites, most drinkers are between the ages of 25 and 40.

This age range is ideal for young adults who are developing a mature pallet and trying new wines

and beers and also gives Starbucks the opportunity to develop loyal customers who as they age

out of the target market may continue to be customers based on bonding memories. Young adults

are also leading trend setters to expand the business by word of mouth and through social media

outlets. Starbucks Nites will offer a unique environment that is relaxing for patrons; this is the

reason for guests to choose Starbucks Nites as their drinking location. The relaxed ambient

environment will provide a tranquil space for customers to get away from the pressures and

demands of daily life and get lost in a book next to a fire, or lounge in an oversized leather chair

while catching up on the daily crossword puzzle or newspaper. Or perhaps catching up with old

friends on the events of their chaotic lives, or making new friends through church group

meetings.

Place


The reasons that guests continue to go to Starbucks varies, but guests can be assured that

when they walk through the doors the environment will always be the same. It is because of this

that Starbucks will have to ensure guest that the environment will not be compromised by

incorporating alcohol into the menu. Bar scenes can be loud, dark and overcrowded similar to

restaurants which will be the direct competition for Starbucks. Ensuring that the Starbucks

atmosphere will not be tainted is an important step to a marketing strategy. Creating a strategic

marketing strategy starts with research into the demographics of the target market. Starbucks

Nites has determined that the target market is married women, ages 25-40, who live in an urban

community, educated and mid to upper class income levels. These are the target women who are

in need of an escape from reality, whether it be a break from the kids running and screaming at

home or break from the demands of corporate America. These women may be in college or still

attending classes for further education, either way Starbucks is an ideal location to relax after

work or meet classmates to discuss homework. The idea of Starbucks Nites is an easy transition

from the pressures of the day into enjoying a peaceful glass of wine or bottled beer to unwind to

finish of the day. The marketing plan for incorporating the new menu items needs to be subtle

and not overwhelming; the company cannot appear to be turning into a night club or loud bar

scene that those who do not drink alcohol would not like to go to.

The marketing plan for this expansion starts with the research into product and

development. What distributer will Starbucks order the alcohol from? What kind of wines and

bottled beers will be served? What are the strengths the company has going into this? What are

the weaknesses Starbucks will face compared to competitors and what kind of risk will this

expansion lead to for strictly coffee customers? The wine addition could possibly have an effect

on returning customers not wanting to come back which is why it is so important that this


expansion does not overpower the already existing product line Starbucks has. Marketing

research shows what the consumers are drinking and differs depending on the demographics of

the location. Psychographics play a large role in the demographics of the locations as they

include the behaviors and choices based on social pressures and personal morals. Starbucks will

be more successful in an expansion in a community that often attends social events and is

socially acceptable to see and be seen in coffee shops with wine.

Price

The marketing mix will include the different products Starbucks will serve, what the

prices will range from, the promotional advertising and placement of Starbucks Nites locations.

The price will be equally competitive with surrounding bars and restaurants, glasses of wine will

vary between $7 - $9 dollars and bottled beer will be an even $5 dollars. Wine selections will

vary and include the basic selections; a merlot, cabernet, chardonnay, and a white zinfandel. This

covers the majority of the flavors starting with a full bodied red wine to a light, crisp blush wine.

There will be room to add more descriptive wines but starting out smaller will help Starbucks not

overwhelm coffee customers by offering more wines than coffee options. Bottled beer will also

be a limited selection; beers available will include a lager, a light beer, wheat ale, and a locally

brewed selection. The choice to have a locally brewed selection will create a bond and tie the

community to Starbucks; this is also a way for Starbucks to invest in the community by ordering

from a local distributer.

Promotion

Creating a direct channel market will allow Starbucks to keep prices low and competitive,

this means purchasing the alcohol in bulk order directly from the producer and then selling it to

the customers. Ordering in bulk will help keep prices low, however the risk for items going over


the shelf life or profits on bottles not purchased will occur. Before making large orders or

restocking supply Starbucks needs to make sure that the customers are happy with the items

purchased and will come back to buy it again.

Starbucks is already the largest coffee shop in the United States to beginning a marketing

campaign will start in the stores with the established clientele that are frequent in-store

customers. Placing cardboard stands up next to purchasable products will draw customers

attention, promoting on the napkins with the simple phrase Spirits at Starbucks Nites will

intrigue drive-thru customers to know more. Hanging signs in the store will create a buzz to lead

up to the launch that customers will be talking about with the friends and family. Following the

in-store marketing launch Starbucks will turn to the media: radio, social-media sites, and

magazines will reach the target market of married women, living and interacting in urban

communities. These women will hear ads on the radio on the way to work, or while they drive

the kids to school, they will see social media advertisements when checking Facebook, or email.

The target market is socially connected to the local community and will not miss these ads.

Distribution Channels

A distribution channel is a path used to move products and services through a seller. A

distribution channel may use a variety of routes including venders, retailers, wholesalers, and

distributers (Perreault, Cannon, JR, & McCarthy, 2011). Many companies such as Starbucks

Nites may use a distribution channel as a profitable connection within the market. A middleman

may be used to perform or provide specific duties to sell goods and services. A middleman may

have an advantage to provide exchanges of products and services at a lower cost. Starbucks

Nites may acquire the needed knowledge from a middleman and benefit with increased sales

revenue of products and services. Channel distribution is important to sales because Starbucks


Nites will need an advantage to marketing products and services as competition develops within

the industry over the course of time.

Starbucks Nites is focused on implementing alcohol products to the menu and generating

a clientele that enjoys the environment. Starbucks Nites distribution channels may include wine

and beer venders that are unique to a brand. The price to establish a vendor is negotiated to

provide a profit to the vender as well as Starbucks Nites. The placement of the product is

packaged onto a truck and circulated to local warehouses that are owned by Starbucks Nites.

From each warehouse, company owned trucks distribute the products to local stores. Starbucks

will need to continue to conduct research to ensure efficient and productive actions are taken to

benefit the company.

Budget

When it comes to the marketing budget; Starbucks, who is the world’s largest coffee

company has such a great advantage over other companies in their market industry. Overall, as a

company the profit rose ten percent to 382.1 million, for the quarter that ended on the first of

January in 2013. Starbucks in general can be termed as a first mover company, which means

that they adapt to meet the needs for the trends and interests that they see in their target market.

Evaluation

The evaluation process not only involves the consumer, but it also involves the company

as well. Starbucks and Starbucks Nites have worked extremely hard at developing the link of the

brand directly to the experience of the customer. Once the product is purchased, does not mean

that the consumers’ decision process comes to an end. The customer coming into Starbucks

Nites again ultimately depends on how satisfied or dissatisfied they are with the product the

purchased and the service they received. “Customer feedback is provided directly through a


consumer insights group that talks to customers and directs their feedback to the business. A

sophisticated feedback mechanism from the stores also ensures that all customer feedback is

collected and acted upon. Baristas feed customer comments back through their store

management to Starbucks Support Center, where the appropriate department undertakes to

respond to the customer within a certain time frame” (Starbucks, 2013). The experience that the

product and service of Starbucks Nites has on the consumer is critical, the feelings and attitudes

they have towards the product and service is something that the management must understand

quickly, and make any necessary corrections at once.

Monitor

The monitoring process involves management and their assessment of repeat purchases

by consumers, as well as increased or decreased purchased, switching of brands, or a brand being

discontinued in use by the consumer. The monitoring process along with the evaluations by

consumers will allow the management of Starbucks Nites to watch the behavior of their

customers after their initial purchases. The monitoring process is a stage that allows the

management of the company to make modifications on any necessary products, while watching

for and identifying possible new opportunities for their product line, they also have the

opportunity to come out with new marketing as they review what is not working in the current

marketing campaign. This is also the time when pricing, packaging and promotion of the

products can be revisited and it can then be determined what needs to drop in price, remain the

same, or possibly go up in price.

Control

No matter what the company is, and Starbucks Nites is no exception, one of the most

difficult tasks is price setting and changing. This is where profit margin comes into play, as it is


an important factor to constantly be measuring as it will indicate if Starbucks Nites is setting a

price that is appropriate on their goods and services. If goods and services are overpriced

consumers will go elsewhere to get the same thing at a lower price, and if the goods and services

are underpriced then Starbucks Nites will not be seeing the kind of profits that they are

expecting; so this ultimately means that an error in either direction can and will result in a loss of

revenue for the company.

Starbucks Nites will closely watch and monitor their market share. Market share is

something that gives a general idea of the size of a company to its market and to that of their

competitors. When Starbucks Nites monitors their market share, factors beyond the control of

their company such as natural disasters, shifts in the economy, and tax law changes will be taken

out of the equation. Market share is something to also be looked at, as it is a constantly changing

factor as other companies launch new products and services out on the market that would be in

direct competition of those with Starbucks Nites.

Market penetration is a quantifiable element that is important because it measures the

amount of sales that a good or service has, compared to that of the total theoretical market for

that good or service. In general, the older a good or service is the great the market penetration

will be for the good or service. Starbucks Nites is intending to use the percentage of households

per major counties per state that has purchased wine or beer at a local bar or restaurant within the

past thirty to forty-five days as a way to measure their market penetration.

Conclusion

Starbucks Nites will add to revenue of Starbucks and possibly tap into a new crowd of

customers. Starbucks will have the ability to build upon its existing market without having to

much out of pocket cost. The marketing campaign for Starbucks Nites will play a huge role in


how people respond to the new service that is offered, and how often they come out and take

time to enjoy this service. SWOTT analysis is a great tool to use when it comes to figuring out

the pluses and minuses and tweaking them to make them the best benefit for Starbucks Nites.

Starbucks Nites has the potential to take on a great market and take restaurants and bars.


Reference

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http://www.designcouncil.org.uk/Case-studies/Starbucks/The-Starbucks-design-process/

My source said they used starbucks.com

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strategy planning approach (18th ed.). New York, NY: McGraw-Hill Irwin.

Riley, J. (Wednesday 24 October, 2012). Tutor2u. 2012. Product – The Product Life Cycle.

Retrieved from http://www.tutor2u.net/business/gcse/marketing_product_life

Starbucks Newsroom: Starbucks to Extend Evening Day-Part Concept. (n.d.). Starbucks

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article_id=610

Starbucks Newsroom: Fact Sheet: Starbucks Evenings. (n.d.). Starbucks Newsroom: Home.

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The Starbucks design process | Starbucks | Design case studies | Design Council. (n.d.). Home |

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http://news.starbucks.com/article_display.cfm?article_id=674



http://www.designcouncil.org.uk/Case-studies/Starbucks/The-Starbucks-design-process/

http://www.in.capgemini.com/services__amp__solutions/consulting_services/marketing%20sales%20and_service/solutions/channel_management/

http://www.in.capgemini.com/services__amp__solutions/consulting_services/marketing%20sales%20and_service/solutions/channel_management/

week 5. learning team b. essay

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