Positioning Of The New Product Marketing Essay

Positioning Of The brand- unseasonedfound crop shareing EssayStarbucks is the leading roaster, retail merchant, and martplaceer of speciality coffee in the world, It excessively has the world famous Frappuccino intermingle Beverages, which acknowledge Green Tea and Chai Tea beverages. soon, Starbucks is seening to introduce blether tea conviction products into stark naked Zealand. ripple tea is a tea base drink blended with fruit flavour and chewing b whollys. It is a popular drink in Asiatic countries, and has been accepted and loved by the not bad(p) deal around the world. This extravasate tea product line pull up stakes be branded as Bubblecino. This selling plan analysed the full stop market environment and situations, and will be ingestiond for the introduction of Bubblecino into New Zealand market. harmonize to the digest, Bubblecino is going to be the premium ripple tea in the market which tolerates premium quality with best service and big bloo d line environment. The main target market for Bubblecino is younger state and people who atomic number 18 concerning healthy drinks. This marketing plan also identified the marketing objectives in the following two long time, including achieving NZ$1 million on Bubblecino sales. This marketing plan then suggested the products design, pricing of Bubblecino, distribution decisions, and promotion mix, which includes internet publicisements, outdoor display, bus signs, ingest and use of coupons. Lastly, the coordi province and control of the marketing plan was also covered in this report.Markets SizeIt is difficult to analysis the market size for house of cards tea as it is still a brand unseasoned market in the most of western nations. However, New Zealand has the culture of drinking traditional English tea, and New Zealanders should prevail a decent market foundation for the tea ground beverages. An early(a) vogue to analyse New Zealand market is to look at the former(a) co untries that obtain similar culture and other(a) social characteristics. unmatchable of example is London, UK. DailyMail reported Bubbleology, which is Londons foremost purveyor of blether tea had a forecast sale of 4.5 million for 2013 (Arthurs, 2012). Considering the universe of discourse of London is around 8 million currently which is two times of New Zealand universe of discourse, it would be sightly to estimate the market size of cardcastle tea in New Zealand would be around NZ$2 million per year. It is a decent size of market for Starbucks, who made a sale of NZD26.5 million drop dead year (Starbuck, 2012). In additional, based on the last years sales figure and assumption of modal(a) spending of NZ$8 per person, Starbuck accommodates around 3 million nodes all(prenominal) year. Although it is too unrealistic to estimate exclusively 3 million customers to buy a bubble tea product, this customer base provides a market potential for Starbuck to prove its bubble te a products.Markets Needs and TrendsThe market trend within the recent cristal on drinking industry is people in western countries are to a greater extent open and kickoff to fall in love with the tea based drinks. Iced tea products, much(prenominal) as ready-to-drink Lipton Iced teas can be seen in all(prenominal) supermarkets and blacklegs in New Zealand. The solid developing of Lipton helps bubble teas to unlock the preconceived notions approximately the tea. People nowadays are more accepting the new tea based products, much(prenominal) as bubble teas. In addition, more and more people appreciate and understand the benefit of drinking tea. It is scientifically proven that drinking tea could reduce the chance of heart diseases and several cancers (Harvard Womens Health Watch, 2004). The current market trend in beverage is people are more concern somewhat the health issues and would choose a healthier drink (Theodore, 2005), and in that location is a expecting continuingl y grow on the demand of tea related to products. This trend is recognised by the Starbucks. Recently, Starbucks is offering to buy Teavana Holding Inc, which sells high-end loose leaf tea in 300 shopping malls in US (The New Zealand Hearld, 2012). Starbucks already owns Tazo tea brand since 1999, and this purchase offer shows Starbucks growing interest in tea, and its willingness to expand its tea related products.CompetitorsThe current competitors for Starbucks on bubble teas are other bubble tea shops. Most of these bubble tea shops are located in the Chinese or Asian restaurants, food courts, or the place where in that location is a big Chinese customer flow. The bubble tea was get-goly introduced into New Zealand by these bubble tea shops. They create the advantage of existence well know by the Asians and bubble tea lovers. Other advantages of these bubble tea shops are demoralise price and shops are offering other Asian cuisines. It is very common for people to order a cu p of bubble tea while they having their lunch in Chinese or Asian restaurants or food courts.However, these bubble tea shops fuddle their disadvantages. in that respect are operating individually, and there is a want of brand awareness for these bubble tea shops. For those who are unfamiliar with Asian cuisines, it is possible that they have neer heard about bubble tea before. There is no domain brand in the bubble tea market at this moment, and most bubble tea shops are in small size. Lastly, the shop environment of these bubble shops is not very decent. Most of these shops have the similar store decoration take as fish and chips stores.Internal environmental FactorsStrengthThe privileged environmental factors facing by Starbuck if it wants to promote bubble tea include its strong brand awareness across New Zealand. Starbucks is the leading retailer in coffee and other blended beverages. It is most welcomed by the young people and snow-white-collars. It is well known on its modern in-store design and groovy customer services. There are 35 stores across the nation in New Zealand currently. Most of stores locate in CBDs or big shopping malls. This is a great platform and store chain to promote the bubble tea. In addition, Starbucks have well trained staffs in every store, which means Starbucks call fors less training time on staff.WeaknessesHowever, Starbucks has its disadvantages. For some people, Starbucks has been considered as a fast food brand from the US, and the products Starbucks offered are nothing but fast food from mass production line. This will create a bad image for Starbuck if it wants to promote the health benefit of drinking tea based products. some other weakness of Starbucks is the requirement on machine upgrade and staff training as bubble tea is a brand new product for Starbucks. Lastly, although Starbucks has already offered tea based products, such as Green tea and Chai Tea beverages for years, the society still link Starbucks with coffee. This innate ideas from society will require Starbucks to spend time and money on convert such ideas during the promotion of bubble teas.External Environmental FactorsOpportunities The opportunities facing by Starbucks for promoting bubble teas include the market trend of that more people are concerning the health issues and how their beverage could influence their health. Tea has been recognised as a healthier drink, and it could be expected there is a increasing demand on the tea related products. Another opportunity for Starbucks is the fact that although bubble tea market has many market players, there is no domain brand in the market. Starbucks has majuscule and brand advantages, with land level of competition in the market, Starbucks could gain a big market contend if it decides to introduce bubble tea in New Zealand.ThreatsHowever, because the barrier to enter the market is low, and there is actually nothing to stop others to step into the market, the competit ion in bubble tea market could increase if other big brands, such as Coca cola or Pepsi decided to introduce their bubble tea products.Market Segmentation, Profile of the Target Market and Positioning of the ProductSegmentation FactorsThe current New Zealand market could be divided into polar segments based on demographic, geographical, psychographic, or behavioural. Demographic segmentation factors divide the nation by age, income, gender, and grooming. There is a need to conduct a market search to better thought the correlation between individuals demographic characters and their preference on bubble teas. However, it could be expected that young people and female force worry bubble tea more. People who have a higher(prenominal)(prenominal) education level may also more concern about their health. This high level of health might lead them to drink more tea based products.Geographic segmentation factors divide the population into dissimilar geographic areas. However, New Z ealand is a small country, and there is no big difference between people live in different cities, or live in rural or urban areas. Therefore, the geographic segmentation might be irrelevant in this case.Psychographic segmentation factor will divide the population by modus vivendi and their interest to the Asian foods. As discussed previously, people who have a healthier lifestyle would like to have a health tea based drink. People who interested in Asian or Asian foods would have heard or tried bubble tea before. They are be customers of bubble teas. It also means this group of people are more open to accept new taste and like to try something new.Lastly, behavioural segmentation factors divide the population by their loyalty status. There is not much difference between bubble tea offered by Starbucks and bubble tea from other bubble tea shops. The indifference on bubble tea products means Starbuck needs to focus on the customers who have a strong or absolute loyalty on the bubbl e teas offered by the Starbucks. definition of the Target marketBased on the above discussion on the segmentation factors, this business plan could describe the target market for Starbucks. The target market of Starbucks bubble tea is those young people who have a higher education level, have a healthier lifestyle, who are interested in Asian or Asian foods, and who have a higher level of royalty to brands.Positioning of the New ProductThe position of bubble tea offered by Starbucks is a premium bubble tea offered by Starbucks. It is fashion, cute, and carry through the needs of younger people who like something sweet, health, and fun to drink. It is a bubble tea with a higher price compared to other bubble tea shops, but it is also a bubble tea offered in the great in-store environment with high quality services. It is also a bubble tea which served in the classics Starbucks give the sack plastic software product with Starbucks famous two tails mermaid logo on the package.Measura ble Marketing ObjectivesStarbucks is considering introducing bubble tea into New Zealand. It is going to branded as Bubblecino, and it will be introduced to public in all 35 stores across the nation. The objectives of the business plan for bubble tea in the next two years areTo increase the public brand awareness on Bubblecino, especially the public awareness about the health benefit of drinking tea based beverage and the fun and tasty of drinking Bubblecino cash in ones chips with the most popular flavour and mixing formulas, Bubblecino will introduce a new flavours and mixture every months to gather the responds from the public and determine the best sellersTo achieve NZ$1 million on the sales of bubble tea, which is the 50% of the estimated New Zealand market share, if there is no major competitors appeared during the next two years periodMarketing StrategiesProduct DecisionsThe Bubblecino is going to make in store as other beverage in Starbucks. The Bubblecino is served in the h alf-round top, clear plastic cup which is also used for Green tea Frappuccino, and Tazo Chia. The reason to use clear plastic cup is that customers and other could see the colourful of beverage (depends on the flavours customers choose), and the chewing pearls at the bottom of cup. The reason to use half-round top is the customers could have the option of adding cream on top of their bubble teas. The straw will be slightly different to the straw used for Frappuccino. The straw will larger so the chewing pearls could be easily sucked out. The straw will still be the classic Starbucks green. The package will help to differentiate the Bubblecino from other bubble teas, and help people to be aware that it is a cup of Bubblecino from Starbucks.The waiting time for bubble tea should be similar to the waiting time for other coffee products, which is normally no more than one second gears if the store is not very busy. When do the orders, customers have the choice of different fruit flav ours, such as honeydew, watermelon, strawberry, bananas and other common fruit flavours. As discussed in previous section, Bubblecino will introduce new flavours every month to gather responds from customers about the taste of such flavours, and if such flavour is welcomed, it will stay on the menu. During the early marketing pointedness, a research is also needed to determine what mixture formulas and which flavours are most suitable and accepted by New Zealanders. There are three size of cups available, tall, grande, or venti (which represent small, median, or large respectively). Lastly, customers also have the options of adding cream on top of their bubble tea, upgrade to double chewing balls, or adding Nata (which is coconut jelly and it is also chewing).Pricing DecisionsWhen deciding the pricing of Bubblecino, this marketing plan considers both internal factors and external factors. The first consideration is the damage of goods sold. The raw materials for Bubblecino includ e tea, milk, fruit flavours, chewing balls, cream (if customers order it), Nata (if customers order it) and package. According to Boba Tea Direct.com (n.d.), the approximate damage for materials was USD $0.75, which was about NZD $1.00. The appeal of cream and nata is difficult to determine at this stage and there are extras customers could add on, so this business plan will focus on the cost of making a regular bubble tea at this stage. The cost of package is around NZ$ 0.10 as there are similar plastic cups on sale on the internet for less than US$ 0.05 each. The labour cost of making a cup of Bubblecino will determine by the time needful to make one. Assuming the labour cost is NZ$ 15.00 per hour and it would take around 2 minutes (1 minute to order and 1 minute to make), the labour cost of making a cup of Bubblecino is NZ$0.50. The cost of command processing overhead is difficult to determine, with lack of selective information on the total overhead cost. Therefore, in this marketing plan, the overhead cost will be assumed as NZ$1.00 per cup. From above assumptions, the cost of making a cup of Bubblecino is around NZ$2.60. This cost gives Starbucks enough margins to set their prices.The external factors include the prices offered by competitors and customers expectations. Other bubble tea shops sell their regular bubble tea at NZ$5.00 per cup. However, customers should happy to pay more if the service they received is great and the in-store environment is great, as they understand Starbuck will have a higher level of overhead costs. In addition, Starbucks is selling their coffee and other beverage at around NZ$6 per cup. Therefore, it is reasonable and acceptable by the market to set a cup of Bubblecino at NZ$6.00 per tall cup, NZ$6.50 per grande cup, and NZ$7 per venti cup. Customers need to pay NZ50c more if they want double the chewing pearls, or add cream, or add Nata.At this selling price, every tall cup of regular bubble tea will give Starbucks a NZ$3.40 operating profit. This higher profit margin will help Starbucks to continuingly improve the quality of products and services, and become the premium retailers of bubble teas. government agency (Distribution) DecisionsThe direct retail in 35 Starbucks stores across New Zealand will be the distribution railway line for Bubblecino. Bubblecino will be offered in these stores as coffee or other beverages. These 35 stores are both located in CBDs or big shopping malls. Because the target market of Bubblecino is young people and white collars, these stores are the great distribution channel. There is a huge amount of customers flow past the store every day, especially during the weekend and holiday. This creates a good platform for Starbucks to distribute Bubblecino.Promotional DecisionsThe promotional decisions for Bubblecino include advertisement through the internet, outdoor displays, and signs at the back of buses. Internet advertisement includes advertising the introduction of new Bubblecino on Trademe, and other most frequent visiting websites in New Zealand. Facebook is also an efficiency way to promote new products, and it is a very common practice in food and beverage industry. Currently Starbucks New Zealand does not have a Facebook deform out. The marketing manager might consider opening an account for Bubblecino and using it to promote new products and new events. The outdoor displays outside of the stores will also help to advertise the new product as most of stores are located in the busy place where there are thousands of people walk past every day. The outdoor display is a low cost and very efficiency way to promote the new products. The signs at the back of buses have the similar operation as outdoor display do, but buses signs could reach beyond the CBDs or shopping malls. Because buses travelled to different places, including residential areas and industrial areas, it has a wider coverage to promote the new products. This advertisemen t mix has the advantage of lower cost but efficient to spread the awareness of new Bubblecino.Starbucks should also use sales promotions, such as sampling and coupons are also effective to promote new Bubblecino. Starbucks, and other food and beverages like to use sampling taste to promote their new products. It is quite often to see in the supermarket, malls, or on the street that staffs are offering taste samples to people who walk past. This will help customers to have a direct perceive about know how good and tasty their products are. The sampling will work better if the coupons are also used during the new product promotion. Marketing managers could consider to offer the coupons, such as two cups at price of one on group buy websites, such as GrabOne and TreatMe. It is a very efficiency way to quickly generate big amount of sales for new products, and start to build its customers base. It also attracts customers who have seen the products, but was not bother to try.Coordination and ControlThe success of a market plan is also determined by its coordination and control. One of the most important coordination is ensuring the flow of the feedback and information among different departments in the Starbucks. The stores need to report the sales and responds from customers to marketing department to help them decide the capture marketing decisions. The marketing department needs to inform the store about any special or coupons they are going to advertise so the stores could prepare themselves well for the possible increase demand and sales.Another important factor is the review. There is no marketing plan which will work forever. Through the time and change of situations, the marketing department needs to review its market plan according the external and internal environments, such as change of market share, or new competitors entering the market. The review will also help marketing department to determine and evaluate the success of a marketing plan and whethe r and how such marketing plan need to adjust.