Marketing Plan For Starbucks Essay
The purpose of this paper is to describe the attributes of the Starbucks Chai Tea and energy drinks in detail. The pace at which this product will move through the product life cycle will be described as well as the factors that will impact its movement. Also, details on how the product life cycle will impact the marketing of the Chai Tea and energy drinks will be identified. The positioning and differentiation strategies for this product will be identified. The appropriate price strategy to be used will be described.
Stages of the Product Life Cycles
Product Life Cycle What is a product life cycle? A product life cycle "describes the stages a really new product idea goes through from beginning to end. The product …show more content…
The promotion cost could have risen during this time. The competitors may have cut cost of their products. At this point the primary objective is to defend Chai tea. The focus will be on maximizing the profit of Chai tea products.
Decline Stage This is the time of new products coming into the market at a rapid pace. Profits become marginal at best. Competitors are flooding the market with similar products. There are a few options. One is to maintain the product and reduce the cost of promotion. This is a cautious time. If the promotion of Chai tea is dropped too much sales will never recover. Keeping a steady, but less aggressive, promotion plan may help in the rise of profits. Another option is to analyze the preceding sales. This would help determine to liquidate the remaining inventory and possibly selling the product to a competitor for their own distribution.
Product Type Starbucks and Tazo will introduce flavored iced teas and will compete with Lipton and Snapple brands. A second variation of the beverage including vitamin B-12, Ginseng, Taurine, and other amino acids to the beverage will compete with other energy drinks on