Marketing Plan for Starbucks
Introduction
The purpose of this paper is to describe the attributes of the Starbucks Chai Tea and energy drinks in detail. The pace at which this product will move through the product life cycle will be described as well as the factors that will impact its movement. Also, details on how the product life cycle will impact the marketing of the Chai Tea and energy drinks will be identified. The positioning and differentiation strategies for this product will be identified. The appropriate price strategy to be used will be described.
Stages of the Product Life Cycles
Product Life Cycle What is a product life cycle? A product life cycle "describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline. The product life cycle is concerned with new types (or categories) of products in the market, not just what happens to an individual brand." (Perreault, McCarthy, 2004).
Market Introduction The 4 P 's are used in the introduction stage. The product, Chai tea, is introduced. During this time branding and quality is established. There will be low sales do to lack of recognition of Chai tea. The price may fluctuate during this period. Profits are expected to be low during the introduction. High cost towards distributing Chai tea is also expected. The promotion cost will be high in comparison to the sales and profits during this time period.
Growth Stage During this stage there is an increase in the demand of Chai tea. The demand increases in parallel with the profits and sales. New methods of a quicker distribution may be accomplished during this stage. "The innovator begins to make big profits as more and more customers buy." (Perreault, McCarthy, 2004). The growth of Chai tea is now projected towards a bigger collection of buyers.
Maturity Stage In this stage the strong growth of sales
The purpose of this paper is to describe the attributes of the Starbucks Chai Tea and energy drinks in detail. The pace at which this product will move through the product life cycle will be described as well as the factors that will impact its movement. Also, details on how the product life cycle will impact the marketing of the Chai Tea and energy drinks will be identified. The positioning and differentiation strategies for this product will be identified. The appropriate price strategy to be used will be described.
Stages of the Product Life Cycles
Product Life Cycle What is a product life cycle? A product life cycle "describes the stages a really new product idea goes through from beginning to end. The product life cycle is divided into four major stages: (1) market introduction, (2) market growth, (3) market maturity, and (4) sales decline. The product life cycle is concerned with new types (or categories) of products in the market, not just what happens to an individual brand." (Perreault, McCarthy, 2004).
Market Introduction The 4 P 's are used in the introduction stage. The product, Chai tea, is introduced. During this time branding and quality is established. There will be low sales do to lack of recognition of Chai tea. The price may fluctuate during this period. Profits are expected to be low during the introduction. High cost towards distributing Chai tea is also expected. The promotion cost will be high in comparison to the sales and profits during this time period.
Growth Stage During this stage there is an increase in the demand of Chai tea. The demand increases in parallel with the profits and sales. New methods of a quicker distribution may be accomplished during this stage. "The innovator begins to make big profits as more and more customers buy." (Perreault, McCarthy, 2004). The growth of Chai tea is now projected towards a bigger collection of buyers.
Maturity Stage In this stage the strong growth of sales
References: http://www.nd.edu yahoo search engine retrieved on November 9, 2005 http://www.wikipedia.com yahoo search engine retrieved on November 9, 2005 http://tazotea.com. Retrieved November 10, 2005. Perreault, William D., McCarthy, Jr E. Jerome. (2004) Basic Marketing: A Global-Managerial Approach. The McGraw-Hill Companies.