STARBUCKS PRODUCT LAUNCH
Created by:
Shwan Rashid
Sean Pezzini
Jessica Rodriguez
Julianna Acosta
*OBJECTIVES
*Analyze the product, price, place,
and promotion in order to develop a
launch plan schedule.
* Form a planning schedule to introduce
Starbucks in Caracas, Venezuela.
*Open by September 1, 2014.
*PRODUCT
* Combination of product adaptation and product invention.
* The product must be analyzed in three levels:
1. Core customer value- to determine consumer wants.
2. Actual product
Variety
Quality
Design
Features
Brand name
Packaging
 Services
3. Augmented product-Complex bundle of benefits that satisfies
consumer needs.
*PRODUCT
* Variety- besides coffee,
we will carry an
assortment of popular local foods and beverages.
Examples include chicha and arepa
* Quality- we will use the return on quality approach
http://www.youtube.com/watch?v=e7hW_AzA0o8
* Support Services- we will provide costumer service
through our knowledgeable employees who can
answers costumer questions and provide
appropriate support services.
*
PRICE
$1 U.S. = 6.29 Bolivar
* High price based on high quality.
* Cost-based pricing
Fixed Cost
1 Cup of coffee cost 40 Bolivar in Caracas Venezuela-
equivalent to$ 6.35 U.S.
 Store manager salary $5000 ( 2000,000. Bolivar)
Two local assistant store manager salary $5000 ( 2000,000.
Bolivar)
Rent $5000 ( 2000,000. Bolivar)
Utilities $2000 (800,000. Bolivar)
Logistics $3000 (120,000. Bolivar)
Variable Costs
 $1 per cup of coffee
*PRICE
* Break-even analysis
Break –even volume= fixed cost/price-variable cost=
$20000 / 6.66 – 1 = 3149 units
* Unit cost
unit cost=variable Cost + fixed cost/unit sales or expected
unit sale
1+$20000/5000= $5
* Mark up price
Based on profit margin from financial statement for Starbucks
company which is .11 cents our price can be 5.55 but we are
using 0.25 mark up based on the local price for the cup of
coffee the mark up price will be
Unit cost/1-desired return on sales =$5 / 1 - 0.25 = $6.66
*Promotion
* Advertising
* Promotion of ideas, goods, or services by an
identified sponsor
* Sales Promotion
* http://www.starbucks.com/card/rewards
* Personal Selling
* Personal presentation by the firm’s sales force
* Public Relations
* Building good relations with the company’s various
publics
* Direct Marketing
* Targeted individual consumers
*Promotion Strategy
* Pull Strategy
* The producer directs
its marketing
activities towards final
consumers to induce
them to buy the
product
*Promotion Budget
* Affordable Method
* Percentage-of-Sales
Methods
* Objective-and-Task Method
* Competitive Parity
Method
*Place
* GDP Per Capita in Venezuela is $12,700
compared to India which is $3,700 and China
which is $8,500. This shows that there is an
economic opportunity for growth.
* The total population in Caracas, Venezuela is
1,943,901
* Member of the World Trade Organization
*Place
* Channels between
nations
Water Carrier
There are four ports in
Venezuela
* La Guaira
* Maracaibo
* Puerto Cabello
* Punta Cardon
*Channels within
nations
* Trucks
*Place
*Location:
Shopping Center
* Centro Sambil
*Discussion Questions
1. Should Starbucks continue to expand into
foreign markets?
2. Should Starbucks use a straight product
extension strategy or a product
adaptation strategy? Why or why not?
3. Do you think Starbucks should charge
more than the local coffee shops or less?
*
*References
* Starbucks Corporation: NASDAQ:SBUX quotes & news - Google
Finance. (n.d.). Starbucks Corporation: NASDAQ:SBUX quotes &
news - Google Finance. Retrieved November 19, 2013, from
https://www.google.com/finance?q=NASDAQ%3ASBUX&fstype=ii
&ei=EUB9UqCHCMWXiQLRMQ
* Caracas. (2013, November 19). Wikipedia. Retrieved November
19, 2013, from http://en.wikipedia.org/wiki/Caracas
* Caracas | Coupa Café. (n.d.). Coupa Caf. Retrieved November
19, 2013, from http://www.coupacafe.com/locations/caracas/
* HD Wallpapers, Images and Photos. (n.d.). High Definition (HD)
Wallpapers, Images and Photos 1080p. Retrieved November 19,
2013, from http://wallike.com/starbucks-logo-2.html.
* Country Comparison > Population. (n.d.). Population. Retrieved
November 19, 2013, from
http://www.indexmundi.com/g/r.aspx?c=ve&v=67
* Starbucks® Coffee Perfection. (2013, March 28). YouTube.
Retrieved November 19, 2013, from
http://www.youtube.com/watch?v=e7hW_AzA0o8
* Kotler, P. (2013). Principles of marketing: student value edition..
S.l.: Prentice Hall.