Marketing Template Assignment
The main aim of our marketing group is to design a lunch box menu for Starbucks. Currently, the competitors of Starbucks have not come up with any such concepts. They rather provide special combos that can be served even during the lunch hour. However, our concept aims at serving people during their lunch time. So, this would seem much appropriate for the market. The product attributes for Starbucks are classified into three types namely basic attributes, performance attributes and delight attributes.
The basic attributes would include the regular foods that people generally consume during their lunch. Starbucks would provide the same. In case of performance attributes, these attributes are supposed to improve the brand position in the market. So, it is better to give additional services such as free delivery, add on items, special offers for regular customers. The delight attributes refer special attributes that would bring happiness and surprise to the customers. These are designed mainly to retain the customers. The appropriate delight attributes are new dishes, juices and attractive gifts to the customers.
The strategy is pictorially represented as follows:
The product strategy denotes the specific strategy that is used to promote and reach the customers in the market. The target market is the school children and subsequently, this could be expanded to the secondary target markets as mentioned in the previous sections. The product is available along with add on for the long term customers. The package actually differs depending on the type of customers which might be short term or long term.
The product offers guarantees to the customers. The packaging of the lunch box is done with eco friendly materials so that our products do not affect our potential customers. Subsequently, the product is initially marketed with specific guarantees. The guarantees are given for the following:
a) Product quality
b) Lunch box quantity
c) Health effects
d) Customer benefits
e) Eco friendly products
f) Customer service
The customer service can either be delivery at the restaurant or direct delivery to the customer's place. By this way, it is feasible to obtain satisfaction from the customers. The major assortments of the product are food, beverage and a healthy item such as a salad that would nourish the children and reactivate the energy of the children. The beverage is a healthy as well as refreshing drink. All these are given as a packaged lunch box to the customers.
Starbucks currently has a good position in the market for its service as well as the brand. The pricing strategy for this new innovative product "lunch box" is designed in such a way that the position remains unaffected. The strategy is also based on the demand expected for the product. The expected demand for lunch box is high among the parents who wanted to give the product to their children. In such a case, it is noticed that there might be a long term demand for lunch box. There are several packaged products in the market that might give a tough competition to the lunch box.
As this product is particularly meant for school children unlike the packaged products of competitors that are available for all people, the price would be comparatively lesser. As a result, the price can be further increased depending on the rise in demand. Provided the demand increases and the supply of lunch box increases, increase in the price would no way affects the demand and supply.
The pricing strategy is also based on the economical condition of the target market. Lunch box is not one such product that would experience market penetrations. By this way, it is possible to control the competition in the present market. However, the cost of production should be lesser than the cost of supply to the customers. Initially, the profit percentage can be a minimum of 30 to 40 percent. As the demand increases, this profit percentage can further be increased by setting the price of lunch box to a higher rate. This is the present pricing strategy for the lunch box to be sold by Starbucks.
Distribution is the main way of reaching the customers with lunch box. The choice of distribution channel is both direct as well as indirect. Starbucks has large number of retail stores and restaurants across the targeted area. Hence, the distribution through direct channel is done directly through the restaurant as well as online sales. In case of online sales, it would even lessen the total time consumption to reach the store and book the product for delivery. So, the online sales might increase the rate of supply and hence, the price would accordingly increase.
In addition to online sales, online advertisements for the purpose of promotion and distribution can also be performed. The other choice of direct distribution is by setting stalls at shopping malls where people can directly purchase one. For this case, warehouses are essential to ensure supply at a quicker rate. The warehouse should be adjacent to the restaurant so that the supply is quick and the backorder is less.
In case of indirect distribution, the service is available at specialized stores. Whenever customers come to shop their required products, lunch box can also be purchased together. As the quality is already guaranteed, customers can even store the packaged product "lunch box" at their house and provide their children whenever they go to school. Special offers are also available in bulk orders. The point of sales is mainly based on the accessibility and time consumption. As we aim at ensuring good quality and customer service, the distribution channel can be set based on the accessible areas.