Case study

Beneboost product has more taste, extra caffeine and very healthy. It keeps the customers more energetic.

Starbucks Branding Strategy

To make the product to be acceptable by many people in the market, it will be crucial to focus on the strategy of branding. The strategy will mainly focus on the needs of the consumers, the emotions and the competitive environment. The product will be packaged in very attractive cups with a picture (logo) of a person enjoying the coffee (Huartes, 2017). To deal with the competition in the market, the best platform to use will be television advertising, social networking, and coffee special promotions etc. This is because of customers spend most of the time watching television and internet as the main target market as they are the ones who are mostly affected.

Starbucks Brand Name, Slogan and Logo

The name of the brand will called as “Starbucks”. Aside from promoting its products, Starbucks emphasizes the value of togetherness and the way coffee acts a binding force that unites coffee fanatics. Its slogans also emphasize on the excessive-first-class merchandise furnished by the company, referring its espresso as “the exceptional” or with “double the taste”. Starbucks makes use of a different tactic, positioning its company as an fundamental part of the social gathering. Here are a couple of Starbucks slogans that you’re sure to like, “It’s not just Coffee, It’s a Starbucks” “ Morning Starts with Coffee” “Start the day with great taste”, The slogan of promoting the sales of the product will be, The slogan gives one hope that whatever one is consuming is healthy.

Logo

Starbucks Brand Extension

The company Starbucks is serving coffee beverages. There are the regular who gets espresso every day, even as, at the same Starbucks, there are the men and women who go to Starbucks handiest when they want espresso, there are the consumers who like to buy their espresso at Starbucks store, after which there are the customers who every so often get espresso and can go into whichever coffee store is closest. Presently, Starbucks has a line of coffee mugs, tumblers, to-go cups and a sort of alternative espresso and tea related add-ons. With a view to preserve the buyers enticed and carry whatever new to the table, Starbucks desires to come out with a brand new product, because the mugs and other cups of their regional assortment mugs, would target loyal customers, deliver in a brand new consumer, and continue to prolong Starbucks as a successful company The brand extension that the company has utilized is the use of coffee features. The only additional flavor is the name BeneBoost to differentiate it from the other products produced by the company. This extension is crucial for the company in that it opens up more opportunities for the company in terms of sales.

Mission and Goals

Starbucks mission statement for its total corporation is “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Mission, 2020). Starbucks also strives to be open and genuine in its interactions with suppliers, employees and customers. This is reflected in the company’s mission to drive performance without sacrificing individual and corporate humanity. The company practices this value through its community building policies, which spur area development through investment and through the never waning goal for the best service (Reference, 2020).

BeneBoost is developed a healthy protein-based drink with or without caffeine which it intends to distribute as a brand extension that will still value the same mission and goals, while using highly advanced and environmentally friendly techniques. The company will invest in continuous innovation to improve both the product and processes in keeping the same spirit of the corporate mission statement. This product will focus heavily on the nurture part of the mission statement and give a healthy option and another product that will help increase the total company’s market share.

Nutrition is a multi-billion-dollar market and is expected to continue to grow with the ever increase of focus or healthier options and consumption of food and drinks. Starbucks is a thirty-billion-dollar company and its primary product is coffee. With nutritional facts of most of their specialty drinks they offer, most are high in calorie and sugar content. With BeneBoost, this will give the company a way to continue its overall net worth and can eventually take a 25% share of the nutritional drink market.

Its short-term goals would be to roll out BeneBoost in the larger metropolitan markets and test the demand for it. Then slowly rollout to each location around the world. In tracking progress in the short term to the long-term goal of being the number option for your nutritional drink needs, there are several things to take into consideration. Online advertising will need to look at the costs and click through rates to measure effectiveness at positioning and promoting BeneBoost. Will measure views of all launch content including website traffic to BeneBoost’s product page and all related content. Collect feedback from customers about the positioning, channels, and other launch elements. This data will help maintain momentum of BeneBoost post-launch.

In short term tracking of goals, revenue will need to be measured as a separate financial line item as to gauge the success and impact of the launch. Ten percent of the sales will be the beginning benchmark should eventually see a high mark of 25%. To maintain the long-term goals, talking and engaging with the customer base will be important in the post-launch analysis in evolving BeneBoost in maintaining and continually to increase its market share.

Environmental Analysis and SWOT Analysis

Launching a new product requires addressing the four marketing pillars and examine your Strengths, Weaknesses, Opportunities and Threats (SWOT) to help minimize your risks and maximize your resources before the promotional run (Ashe-Edmunds, 2019). Along with SWOT, there are other factors that can influence a new product launch, they are: Political, Economic, Social, Technology, Legal and Environmental (PESTLE). PESTLE analysis can be one of the most worthwhile tools for strategic analysis – but it should be done with an attitude of systems-oriented thinking. Every factor of PESTLE is interconnected to the others (Mitchell & Britt, 2019).

Starbuck’s as a company has many strengths. With adding a brand extension with BeneBoost has a leg up on the competition, because Starbucks has an extraordinarily strong brand awareness. Starbucks is the biggest coffee company in the world and owns the highest number of stores with over 16,000 stores worldwide. With that footprint, the company is overall financially strong and can easily support BeneBoost’s launch into the market, banking on the Starbuck’s name. Another strength in the launch would be that this product would be the first offering of a health and fitness drink in its offerings and pair it with its high environment and community focus, they would putting their communities even more in the forefront in taking an interest in their customer’s health.

Although there are many strengths that can be listed, there are some glaring weaknesses to releasing BeneBoost. First, Starbuck’s is known for its coffee and teas, but mainly its coffee. It is the staple, adding another drink variation can add additional costs, since they focus on high end and environment friendly goods to produce their products. The biggest weaknesses would be the entry into a new market and trying to steal market share from a rather new and promising market in nutritional health.

Opportunities with BeneBoost is the training that will be needed to balance the focus with customers that see the focus has been on products that have less nutrition, higher calorie counts and high sugar intakes. The company can not look focus on what makes them the number one brand and coffee company in the world and alienate what makes them the most money. Another opportunity will be its strain with increasing its supply chain in producing BeneBoost across the globe since it is a worldwide brand.

Threats for bringing BeneBoost to the market for Starbucks is that there is already a decent market and competition in nutritional drinks. Companies such as Smoothie King, Planet Smoothie, Jamba Juice and Pressed Juicery. The biggest threat is from the nutritional stores and gyms that offer premade drinks that offer similar values that BeneBoost with provide. People with not need to go to Starbucks and overpay for a drink that they can buy a six pack of a protein shake. With the recent pandemic, this presents the biggest threat. Economic recession will cause some customers to avoid the extravagant coffee and other product prices and may change their drinking behavior or lead them to a lower cost option with a similar quality.

Regarding PESTLE, BeneBoost will have some advantages and some factors that can cause some hiccups along the way. Starbucks has attempted to maintain the value of their brand by helping the coffee bean farmers in the regions that they purchase beans their beans from. So, they need to ensure they do not violate any laws and regulations in the countries from where they buy all the raw materials for BeneBoost. Some political factors to take in consideration is a lot of the country’s current political situations from where they get their supply from, mainly South American and African countries. Legal issues will involve a lot of the issues that with be affected with the political factors and ensuring that all copyright materials and patents are produced fro BeneBoost to protect the company’s assets.

Sociocultural factors will be how the stores operate during this pandemic will health and safety features and improving their work patterns with the current protests with social issues that are presenting itself in the United States. The company had recent backtracked when they issued a statement that their employees could no longer wear “Black Life Matters,” but then quickly changed course and realized it was the right decision to use their brand and their employees to show their support for the racial injustice that has been terrorizing the county.

Starbucks always uses the best technology and they manufacture and distribute using socially and environmentally friendly techniques and processes. Starbuck’s should continue to invest in continuous innovation of technology to improve their processes in producing and supplying BeneBoost. Economic factors that can affect BeneBoost is the current state of the economy. The effects of the current economic recession with the Coronavirus pandemic are still being felt in many parts of this country, especially in the highly populated areas of New York and California that are home to a larger percentage of the company’s store locations. Consumers also have less disposable income which could limit the purchase of non-essential drinks such as coffee, however BeneBoost provides more health features with necessities for people that are working out. While some people are out of work because of the pandemic, the economy is slowly showing signs of recovery.

References

Chernev, A. (2020). The marketing plan handbook.Cerebellum Press.

Calder, B. J. (2012). Writing a brand positioning statement and translating it into brand design. Kellogg on Marketing, 92-111.

Huertas-García, R., Lengler, J., &Consolación-Segura, C. (2017). Co-branding strategy in cause-related advertising: the fit between brand and cause. Journal of Product & Brand Management.