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Starbucks Hot Alcoholic Drinks

Starbucks Hot Alcoholic Drinks. Kirk Kaubish Suzanne Souva Chris Tagliavia Leina Rabanal 5-7-13. Agenda. Products Market Needs/Trends Target Market Market Size/Growth Positioning Competition Marketing Mix Financials Conclusion. Take a Look. Video. New Products.

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Starbucks Hot Alcoholic Drinks

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  1. Starbucks Hot Alcoholic Drinks Kirk Kaubish Suzanne Souva Chris Tagliavia LeinaRabanal 5-7-13

  2. Agenda • Products • Market Needs/Trends • Target Market • Market Size/Growth • Positioning • Competition • Marketing Mix • Financials • Conclusion

  3. Take a Look Video

  4. New Products • The Irish Coffee • Spiked Hot Chocolate

  5. Market Needs • The Starbucks “experience” • Liquor demand • Where our product is offered

  6. Market Trends • Market Trends • What our product does for existing trends • Starbuck’s and it’s differentiation

  7. Target Market

  8. Market Growth • Growth within the coffee industry and its marketplace • Correlation between coffee and alcohol • Evenings Menu • Continuing market growth

  9. Marketing Objectives • Survey results • Goal

  10. Marketing Mix Distribution Pricing Marketing Communication

  11. Distribution • Starbucks builds relationships with its distributors • Using this strategy, Starbucks’ distribution channel is:

  12. Pricing • Spiked Hot Chocolate $6.00 • 70% profit margin • Cost $1.78 (raw materials) • Irish Coffee $6.25 • 60% profit margin • Cost $2.49 (raw materials)

  13. Spiked Hot Chocolate

  14. Irish Coffee

  15. Promotion • Starbucks does not use national advertising campaigns • There will be one party at each location • Each location will create hype • Starbucks will provide sale incentives

  16. Product Position • More for the same • Competitors cannot match

  17. Competitors

  18. Spiked Hot Chocolate

  19. Irish Coffee

  20. Finance • Goal = sell 300 hot alcoholic drinks • There are no fixed costs • Design and produce new mugs • We expect sales to grow quarterly

  21. Sales Forecasts

  22. Thank you Any Questions Comments

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