Starbucks Coffee Creamer Marketing Plan Lauren Frischman Abbie Thiebaut Breanna Amico New Opportunities  According to the New York Times, 67% of coffee drinkers add creamer  Vanilla Bean, Peppermint Mocha, Carmel Macchiato, and Pumpkin Spice  Generate more Starbucks loyalists Channels of Distribution  Target Stores  Starbucks Cafe SWOT Analysis Strengths • Established brand • Sought after product • Popularity of natural ingredients Weaknesses Opportunities Threats • Higher price • Lack of availability for consumers • Limited flavor offerings • Reach a new market segment • Entice new consumers with a new product • Continual brand awareness • Convenience factor • Existing competition • Missing out on market segments based on price • Consumers’ brand loyalty to competitors • Lack of mass retailing Target Markets Target Shoppers 40% 15% 15% 30% Students aged 18-24 Adults aged 35-54 Starbucks Loyalists Market Demographics  Starbucks Loyalists    Adults (35-54)     Make up 42% of coffee consumers Can afford a higher price Coffee is a part of their daily routine Students (18-24)    73% of coffee drinkers make coffee at home Starbucks holds 15% of this industry 10% increase in coffee drinkers in the past 2 years 76% of adults began drinking coffee at this time Target Shoppers   Care about value Want upscale, trendy products *Statistics are from IBISWorld Financial Objectives  First   Year Goals To gain 10% of the coffee creamer industry To raise corporate revenue by 2.5% from the sales of the coffee creamer, or to increase corporate revenue by $30,000,000  Goals  for the next five years To raise corporate revenue by an additional 2.5%, making the total revenue from coffee creamer sales 5% of net revenue Price Break-Down Ingredients 2% Milk Estimated Cost .15 Heavy Cream .35 Flavoring Ingredients .50 Packaging and Production 1.00 Total Cost: $2.00 Retail Price: $3.49 Profit per bottle: $1.49 Break-Even Analysis 1000000 800000 600000 400000 200000 Break Even Analysis 0 -200000 0 200000 400000 600000 800000 1000000 -400000 -600000 Average per-unit revenue $3.49 Average per-unit variable cost Estimated monthly fixed costs $2.00 $500,000.00 Monthly units to break even 335,570 Monthly revenue to break even $1,171,130.93 First Quarter Sales Forecast 900000 800000 700000 600000 500000 400000 300000 200000 100000 0 Peppermint Mocha Vanilla Bean Caramel Macchiato Pumpkin Spice Promotion  TV ads  Print AdsTarget magazines  Facebook Ads  Interactive social media Conclusion  Goal: Increase company revenue by 5% from the sale of coffee creamer  Barriers to success:    The higher price Lack of mass retailing Existing Competition Citations "Industry Market Research: Coffee Production." Major Companies n.pag. IBISWorld Where Knowledge is Power. Web. 16 Nov 2013. <http://clients1.ibisworld.com/reports/us/indu stry/majorcompanies.aspx?entid=272 "Industry Market Research: Coffee & Snack Shops." Major Companies n.pag. IBISWorld Where Knowledge is Power. Web. 16 Nov 2013. <http://clients1.ibisworld.com/reports/us/industry/maj orcompanies.aspx?entid=1973>. Newman, Andrew, Adam. "Media & Advertising." Coffee Creamer Brand Focuses on Simplicity and Identity. The New York Times, 01 Aug 2012. Web. 16 Nov 2013. <http://www.nytimes.com/2012/08/02/business/media /coffee- creamer-brand-focuses-on-simplicity-andidentity.html?_r=2&>.