11/04/2012

Introduction

A new manufacturing plant has opened to employ underprivileged workers in parts of Africa and produce caffeinated chewing gum, a convenience good to be licensed under the Starbucks brand identity. The Starbucks marketing department is seeking a new product to detract recent negative attention aimed at its use of undesirable ingredients in various beverages. Its partnership with the manufacturing plant will excite customers about a new product and restore the Starbucks brand image. 
The chewing gum will be flavored like popular drinks on the Starbucks menu and sold via selective distribution in the Starbucks store, as well as grocery stores, convenience stores and drugstores. 
Starbucks Gum will be priced using administered pricing and price skimming during the introduction phase, and will rest at a price based on the premium pricing strategy. Because of its high perceived value, Starbucks Gum will initially cost consumers $3.75 per pack, and eventually, after introduction, $3.25 per pack. 
The product will appeal to consumers of pre-existing chewing gum brands as well as coffee and other caffeinated beverages. Specifically, the product will be aimed at married couples ages 25 through 54 whose shopping habits and values are consistent with current Starbucks customers. 
The major promotion efforts will involve a fully integrated marketing communications mix, including advertising, electronic media, public relations, personal selling, sales promotions and direct marketing. Other promotions will include one-time samples and premiums to introduce the product to the target market, raise awareness and generate customer feedback concerning preferences and suggestions.