Running Head: MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 1

Market Research: Starbucks Brand & Line Extension

Dani Greenwood, Sydney Link, Chloe Kimball,

Kennedy Mac Millan & Kelsee Crenshaw

AMDT 307

Washington State University

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 2

Table of Contents

Introduction………………………………………………………………………………....……..3

SWOT Analysis……………………………………………………………………………….…..4

A. Strengths & Weaknesses…………………………………………………….....5-8

B. Threats & Opportunities………………………………………………..….....8-12

Marcom Strategy…………………………………………………………………………...........12

A. Targeting………………………………………………………………..….…12-14

B. Positioning……………………………………………………………..……..14-15

C. Objective Setting…………………………………………………….…….....15-17

Marcom Implementation…………………………………………………………………..…..…17

A. Brand Name………………………………………………………………....…..17

B. Brand Slogan…………………………………………………………..….…17-18

C. Balance of Marcom Tools………………………………………………..….18-19

D. Marcom Tools Created……………………………………………………....19-20

Conclusion………………………………………………………………………………....…20-21

References…………………………………………………………………………..…...…..22-25

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 3

Market Research: Starbucks Brand & Line Extension

Introduction

Starbucks is a company with a cult like following. There are the regulars who get coffee

everyday, at the same time, at the same Starbucks; there are the people who go to Starbucks only

when they want coffee; there are the customers who like to buy their coffee at Starbucks store;

and then there are the customers who occasionally get coffee and will go into whichever coffee

shop is closest. Currently, Starbucks has a line of coffee mugs, tumblers, to-go cups and a variety

of other coffee and tea related accessories. In order to keep the customers enticed and bring

something new to the table, Starbucks needs to come out with a new products. A brand extension

into t-shirts and tote bags using the same designs as the mugs and other cups in their Local

Collection mugs, would target loyal customers, bring in a new customer, and continue to extend

Starbucks success as a company. In order to implement this line extension, strengths and

weaknesses must be assessed, an objective must be created, and a marketing strategy must be

planned out. Because Starbucks has an extremely loyal customer base, their previous line

extensions have been great successes and have continued to flourish. The brand and line

extension of t-shirts and totes with the designs of the current Local Collection mugs, Living

Local Collection, could bring more business to Starbucks and motivate consumer choices.

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 4

SWOT Analysis

Starbucks started out in 1971 as a small shop located in Seattle’s Pike Place Market.

Today, Starbucks is known worldwide for their handcrafted beverages, premium coffee, tea, food

and mugs (Starbucks Co., 2017). The consumers at Starbucks range from ages 13-40 (O’Farell,

2017). According to an article by Renee O’Farell, adults between the ages of 25-40 make up

almost half of Starbucks business with young adults falling close behind (O’Farell, 2017).

Starbucks continues to bring in more consumers and has seen large success while competing

against other large coffee chains such as Dunkin’ Donuts, Peet’s Coffee, Seattle’s Best, and

McDonald’s McCafe (Great Speculations, 2016). Dunkin’ Donuts is one of Starbucks biggest

competitors and claims the majority of its success on the East coast. Although Dunkin’ Donuts

has been around for 20 years longer than Starbucks, it has seen less growth and has half as many

stores as Starbucks today (Downey, R, 2017). Starbucks has also expanded globally to 70

different countries out earning Dunkin’ Donuts by a large margin (Downey, R, 2017). Although

Starbucks tends to have a higher price point than other coffee companies in the United States

where $2 is the average price for a cup of black coffee, they have a loyal customer base who are

less price sensitive and enjoy the ability to customize any drink on the extensive menu (Dooley,

R, 2013). Starbucks has seen the majority of its success and stays ahead of their competitors

through product innovation, changing with their customers, bringing jobs to low income

communities, and not franchising (Great Speculations, 2016).

Strengths Weaknesses

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 5

● Strong market positioning/brand

recognition

● High quality products

● Store location

● Consumer loyalty

● Diverse product mix

● Expensive products

● Overdependent in the US market

● Dependent on coffee beans

Strengths

Starbucks is one of the most well-known coffee companies in the world. They are a

distinguished company because of their reliability, quality of their products, and excellent

customer service. “Starbuck’s brand equity is built on selling the finest quality coffee and related

products, and by providing each customer a unique “Starbucks Experience”, which is derived

from supreme customer service, clean and well-maintained stores that reflect the culture of the

communities in which they operate, thereby building a high degree of customer loyalty with a

cult following” (Bush, 2016). Starbucks has built themselves into a company that has a cult-like

following with customers that buy and consume their products regularly. This audience trait is

excellent for the new line because those who are customers of Starbucks will be likely to

purchase a bag or shirt to show their support.

This mainstream following occurred because of Starbucks great marketing and their

attention to quality products and service. They are known for their consistency in their coffee and

tea lines, as well as within their food products. “Their products are of excellent quality,

seemingly environmentally friendly, and relatively consistent between locations” (Bush, 2016).

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Individuals count upon the dependability of routine items within their everyday life. Simple

things, like enjoying a morning cup of coffee, are one of the many morning routines people have

that are expected to stay high quality and consistent. It is this quality and consistency that

Starbucks has mastered to provide for its customers. With this, the brand has been able to obtain

and hold onto a large portion of the United States coffee sales. They are known for their

fair-trade coffee which also gives them an edge in a society that values humans over products.

Knowing this, the bags will be made from repurposed coffee bags and the shirts will be made

from either recycled or organic cotton sources which will attract those customers that value the

earth and recycling and sustainable goods.

Another large draw of the Starbucks brand is found with their commitment to customer

service. They are known for their welcoming staff and priority of the customer. On top of their

great customer service, they also hold numerous and very convenient locations. The stores are

easy to find and access for customers. This great accessibility makes it easier for customers to

consume their goods and will also boost customer appreciation towards the store itself. By

having such a high level of customer traffic moving within the stores, it would make it easy for

customers to find out about the new products. By combining this high product visibility with the

proper amount of promotion, the consumers can be expected to jump on board and start

collecting the new items fast.

With their different range of products, consumers can find things that please their needs

and a little more. Starbucks has many collectable items such as their themed tumblers, cups, and

mugs. The addition of matching bags and shirts would give more exciting things to add to

people’s collections. The shirts would also continue advertising the company without them

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 7

having to do any work, other than for selling the shirts that is. There is also a large trend right

now with bags because of the general trend of moving away from plastic bags. This will give

people a fun bag to bring to the grocery store and other activities.

Weaknesses

With the high quality of their products also comes Starbucks higher price points. “The

company prices its products in the premium to middle tiers of the market segment which places

its products outside the budgets of many working consumers who prefer to frequent McDonald’s

and other outlets for their coffee instead of Starbucks” (MSG, n.d.). These high prices make it so

that some people bypass their products and choose a cheaper route instead. If the company could

find a way to lower prices they would be more appealing to a larger proportion of the working

class.

Nonetheless, the higher prices exist because of the company’s dependence on coffee

beans which are constantly fluctuating price points. Therefore, when prices of beans are high, the

company must still be able to make some amount of a profit by pricing its coffee and goods high.

This could be a problem faced with the products used for making the shirts and bags because

they would be a more specialty item. These products will have to be priced at more premium

price points that not everyone will be willing or able to pay.

Another weakness of this company is that it depends highly on the United States and the

revenue made there. With it being a global company most of its stores are placed in the US. This

makes it so that it is very susceptible to downfalls when the economy in the United States

declines. People will not be spending as much on small things like coffee when they are in a

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recession. Starbucks will have to make sure that when they launch the new products that they are

doing so when the economy has a good outlook.

Threats Opportunities

● Imitation

● Increasing Competition

● Changing Consumer Lifestyles

● Coffee Market Prices

● Global Expansion

● Partnerships

● Expanding Retail Operations

● New Products

Threats

As a company, Starbucks is very successful but there are threats that could potentially

damage them, when developing a new product line. Four threats posed for Starbucks is imitation,

increasing competition, changing lifestyles of consumers and the coffee market prices. Imitation

of Starbucks coffee is commonly seen. One way that Starbucks has been imitated in the past is

by the copy of their famous Pumpkin Spice Latte or PSL. The Pumpkin Spice Latte first

originated at Starbucks in 2003, and has been since copied by Dunkin’ Donuts and McCafe

(Employee Experience, 2014). McDonald's and Dunkin’ Donuts both saw the success of the

Pumpkin Spice Latte and wanted to challenge Starbucks, by adding the PSL as well as other

pumpkin flavored pastries and snacks at a cheaper price (Vivian, 2016). The Pumpkin Spice

Latte is not the only drink copied, many small coffee houses put their own twists on other

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Starbucks favorites. Knowing that their products are commonly imitated poses a threat for

Starbucks, especially when adding a new product, like apparel to their mix.

Competition can often be a result of imitation. For Starbucks, their main competition is

McDonald’s and Dunkin’ Donuts (Great Speculations, 2016). Although Starbucks may have

some classic recipes that are difficult to copy, their competition has lower prices. In a study done

by Business Insider’s Sara Silverstein, Sara compares the cost per ounce of a small, medium and

large at Starbucks, Dunkin’ Donuts and McDonald’s. Silverstein explains that customers looking

for the best bang for their buck; McDonald’s large coffee came out on top, at 4.8 cents per

ounce. Starbucks charges 12.3 cents per ounce and Dunkin’ right behind them, at 11 cents per

ounce (Silverstein, 2015). Although neither Dunkin’ Donuts or McDonald’s sell apparel,

competitors tend to imitate and could eventually adopt an apparel line priced cheaper than

Starbucks’.

Another threat that could affect Starbucks is the changing consumer lifestyles. At a

symposium held in Seattle in 2015, a group of practitioners provided insight into the group of

“progressive health and wellness consumers” (The Hartman Group, 2015). The article mentioned

that Generation Z (born between mid 1990’s with no end year yet) are influencing a healthier

lifestyle. These “progressive health and wellness consumers” are beginning to focus on food and

beverages that positively contribute to your body, veering away from high fat and processed

food/beverages (The Hartman Group, 2015). This young generation’s outlook on health could

damage Starbucks if they do not start to change with the consumers. Some steps Starbucks has

began to take towards healthier options is by adding coconut and almond milk, as well as

breakfast choices with egg whites and greens (Starbucks Menu, 2017). It is important for

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 10

Starbucks to continue to adapt with their consumers, especially when beginning to launch a new

product. Generation Z are the consumers of tomorrow, it is important for Starbucks to gain these

customers for a successful launch of apparel products.

A threat that is continuously lingering for Starbucks is the coffee market prices. As the

demand for coffee increases, the prices for coffee beans increases (Wahba, 2016). In an article by

Phil Wahba, published in Fortune, Wahba explains the reasoning for Starbucks raising their

prices in 2016. Select drink prices rose 10-30 cents in one day, customers were not surprised

since this was the third year in a row of a price spike (Wahba, 2016). There is not much

Starbucks can do about the rising cost of coffee beans and its effect on their pricing. This is a

threat that cannot be easily resolved. If prices continue to rise, a brand extension of apparel could

give Starbucks another channel of revenue if consumers start cutting back on beverages, due to

prices.

Opportunities

For a company like Starbucks, opportunities are abundant. A few opportunities that could

currently benefit the company would be global expansion, partnerships with other brands,

expanding their retail operations, and introducing new products. An opportunity that is present

for many companies is global expansion. Starbucks has 24,000 stores in 70 countries (Starbucks

Coffee International, 2017), the coffee company could put more stores into growing countries.

Two countries that have responded well to Starbucks are India and China (Trefis Team, 2016).

As of 2016, India had 75 Starbucks stores (Trefis Team, 2016). Starbucks saw a growth in

India’s middle class and soon India became a growing coffee/tea market (Trefis Team, 2016). In

an article by Trefis Team published in Forbes in 2016, it was predicted that Starbucks would try

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 11

to introduce Teavana to India soon. Introducing Teavana to India will bring in more customers,

because of the amount of tea that India as a nation drinks (Trefis Team, 2016). In China,

Starbucks is working on bringing more technology to the storefront, since China is a very

technology driven country (Trefis Team, 2016). Expanding into these growing coffee markets

and adapting to the culture of the countries will bring more consumers to Starbucks. Another

perk of global expansion is the positive effect it will have on the brand extension. Since the shirts

and bags are based on the Local Collection, which uses designs on mugs based on location,

expanding into new markets will allow for tourists and locals to get their hand on new product.

Partnerships is something that Starbucks prides themselves in, specifically in their

hometown of Seattle, WA. In Seattle, they are partnered with the University of Washington,

Seattle Seahawks, Sounders FC, Seattle Theatre Group, Seafair and many other organizations

(Partnerships, 2017). Recently, Starbucks collaborated with S’well Bottles and Lilly Pulitzer to

design a four bottle, limited time collection (Customer Experience, 2017). These bottles were

such a hit, there were customers camped outside for the release, they sold out quickly in store,

and customers were buying the bottles on ebay for almost double the price (Stern, 2017). For

Starbucks, receiving such a crazed reaction from fans over the collaboration could open the door

for many new opportunities. Partnering with a fashion brand, like Lilly Pulitzer or even a

charitable fashion brand, like Toms, and releasing the brand extension, Living Local Collection

of shirts and bags, Starbucks could see a very similar reaction from consumers.

Starbucks currently sells their packaged coffee, and iced beverages in their storefronts,

120,000 grocery stores as well as products in airports, hotels and smaller stores (Company,

2017). Some of these stores include a functioning Starbucks inside, that sell merchandise and

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specialty menu drinks. Starbucks strives to make it easy for their consumer to get access to their

favorite beverages. In 2015, Starbucks released that they would open 1500 new U.S. and global

restaurant locations through 2019 (Farfan, 2016). This expansion of retail locations will allow

access to more consumers. Expanding their retail operations will bring more opportunities in the

future after launching the brand extension as well. Giving more customers access to their favorite

Starbucks items in a number of locations could bring Starbucks a larger consumer market.

Lastly, adding new products to Starbucks’ mix would be extremely beneficial for the

company. Extending Starbucks’ very well known brand could open a whole new window of

opportunity for the company. An example of a food service brand that has extended their brand

to include apparel is In-N-Out Burger. The West Coast based fast food company sells shirts,

socks, sweatshirts and much more (Shop In-N-Out, n.d). The well known In-N-Out shirts consist

of a design on the back, usually reminiscent of the 1950’s, with the logo on the front, following

the state which the shirt was purchased (Shop In-N-Out, n.d). These shirts are very popular with

tourists and loyal customers of the burger restaurant. Starbucks is a popular company that could

see the same brand extension success as In-N-Out Burger did. With the Starbucks Living Local

Collection designs, shirts and bags could be very popular with tourists and locals alike.

Marcom Strategy

Targeting

Who is Starbucks Target audience? Who does Starbucks coffee aim to please? Starbucks

Coffee target market is primarily men and women ranging from ages 25 to 40. Their target

audience accounts for almost half of the company's business sales over all. Men and women ages

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25 to 40 account for 49% of the sales at Starbucks (Farrell, 2017). Starbucks appeals to that

particular age group through the its contemporary, well known design. The Starbucks logo and

coffee is extremely consistent. “Customers tend to be urbanites with relatively high income,

professional careers and a focus on social welfare” (Farrell, 2017). Starbucks target audience

grows at 3% annually. Although, men and women ages 25 to 40 are the primary target market;

young adults age 18 to 24 make up a total of 40% of Starbucks total sales. Starbucks not only

appeals to an older audience, but a younger one too. They do this by creating an environment

that college students can hangout, study, write papers and meet new people in. Starbucks also

appeals to a younger audience by incorporating free wifi into their regime. The young adult

audience grows 4.6% each year (Farrell, 2017).

Kids and teens are also a part of Starbucks target audience. They are not the primary

target audience but they still make up a bit of Starbucks over all sales. Consumers ages 13-17

make up about 2% of Starbucks sales. Most items are purchased by their parents. The consumers

in this area are more into the steamers (steamed milk) and the extremely sugary drinks with tons

of whipped cream on top. Studies have shown that when a child goes to Starbucks with their

parents, both the child and the parent leave with a Starbucks drink in hand (Farrell, 2017). Teens

(ages 15/16) use starbucks more as a place to hangout and talk with friends. As you can see,

Starbucks has clearly covered all of their bases by making the Starbucks environment

comfortable, and one that everybody loves and can not get enough of. Whether people are there

to study, hangout or write a paper; they always have a drink in hand. By creating an online

channel that allows consumers to order online, and then go pick up their drinks; has increased

Starbucks sales drastically.

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Starbucks has expanded their sales not only to their main target market, but to others as

well. By incorporating specialty drinks and seasonal drinks into their menus, it has increased

their sales altogether. “Starbucks has made its coffees available for direct order online, in

supermarkets and has offered select food service outlets the chance to carry Starbucks family of

coffee including Starbucks brand, Seattle's Best and Starbucks VIA ” (Farrell, 2017). Those

products give the consumer a chance to have the experience of Starbucks from home, in their

own living room. Starbucks is well known around the world, and year after year continues to be

one of the top coffee sellers in the world.

Positioning

Starbucks has a very strict and structured system to make sure that their drinks are the

same, and customers know what they are getting every time, no matter which location the

customer is at. This is one of the ways in which Starbucks has already differentiated themselves

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 15

from other coffee shops, and one of many reasons Starbucks has grown into a successful global

company.

Today small boutique coffee shops have begun to carry knick-knacks, accessories, and

often graphic t-shirts along with their coffee, drinks, and baked goods. This has become a

successful trend in small boutique stores throughout New York where boutiques are combining a

coffee shop and counter with their clothing and retail area creating a home like atmosphere to

shop and browse in (Bull, M. 2016). By adding to their in-store collection of coffee and drink

accessories Starbucks could further differentiate themselves from other big name coffee

companies.

One successful company with its own t-shirt line is In-n-Out Burger. In-N-Out Burger

has expanded from a drive through burger joint with company logo t-shirts, into a company with

an online store selling t-shirts, license plate frames, sweatshirts, hats, and other apparel items

their shirts and tote bags to occupy clear, distinctive, and desirable place relative to competing

products in the minds of Starbucks customers (Schiffman, L.G, et. al, 2015). Their t-shirts and

tote bags will occupy a white space within their brand because they have no clothing line yet.

The company also has tried to become known for being a more sustainable and eco-friendly

company, which this brand extension could help with. By using 100% organic cotton and

recycled materials for the tote bags will help Starbucks gain a better reputation for their

sustainable practices.

Objective Setting

Marketing has the end goal of satisfying customers’ needs, keeping customers, creating

value, and creating products and merchandise their customers will want and will buy (Schiffman,

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 16

L.G, et. al, 2015). The objective of this brand extension for Starbucks is to refresh the brand and

expand the market. Starbucks is a national brand, available in all 50 states, and has expanded

globally as well, reaching a variety of countries and a variety of consumers. By extending

Starbucks brand into apparel, Starbucks will be able to reach more consumers, increase their

margin, and refresh their brand.

Currently Starbucks has a loyal customer base who purchase coffee, coffee accessories,

and their other products. To keep these customers coming back and make sure that their

customers don’t get bored with the typical Starbucks merchandise, a line extension into tote bags

and graphic t-shirts would be a way to keep their customers enticed as well as reach other

consumers. Graphic and slogan t-shirts were seen on the runway during the spring 2017 runway

shows due to people wanting to express themselves and their beliefs through their clothing

(Yotka, S, 2017). Graphic and slogan t-shirts are one of the styles being worn by younger

consumers. With a line of t-shirts, Starbucks has the potential to create buzz and bring in fashion

savvy consumers to their stores.

By using the Starbucks brand, this extension into apparel will enter the new market easily

by using the existing image of Starbucks. This will save initial costs of advertising and money

spent on creating buzz. It will also strengthen the identity of the brand.

Another objective of doing this brand extension for Starbucks is to refresh their brand.

Many critics of Starbucks throughout the years have questioned the actual amount of fair trade

coffee used and have questioned Starbucks’ claims of being environmentally friendly. There are

online forums for “why we hate Starbucks” or “a Starbucks boycott” which are forums for

customers to vent about the problems they see with Starbucks as a company. The root of many of

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 17

the problems is the amount of ethically sourced coffee Starbucks actually uses. Starbucks is

committed to 100% ethically sourced coffee which is high-quality and uses responsible and safe

practices on the farms, however critics say that this is not true (Responsibly Grown, n.d.). Critics

argue that Starbucks can do more for Fair Trade Coffee growers because of their power and

prestige, and that Starbucks has only “tiptoed in the direction of using Fair Trade growers”

(Kessler, B., 2015). By launching a line of clothing made from 100% organic cotton and tote

bags made out of reused burlap coffee sacks, Starbucks could improve the brand image and

enhance their environmental and sustainable practices within the industry.

Marcom Implementation

Brand Name

Starbucks Living Local Collection. Starbucks currently has a Local Collection of mugs

designed for each state and major US city. This clothing line extension we have created is an

extension off of the already-created designs they use for the Local Collection and turns them into

shirts and bags. We felt that this was a fitting name because consumers are able to live in and

wear this part of the Local Collection. The designs are specific to the different cities and states

within the United States, graphically displaying a highlight of the state or city on the

merchandise. Because this new brand extension for Starbucks is a continuation of the state by

state theme, we decided to expand upon the name of the previously established Local Collection

and will call this new graphic t-shirt and tote bag line the Living Local Collection.

Brand Slogan

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We came up with our brand slogan “One cup, One shirt, Your city” by using Starbucks

current mission statement “to inspire and nurture the human spirit – one person, one cup and one

neighborhood at a time" (Starbucks Co. Profile, 2017). Starbucks doesn’t have a slogan, instead

focusing on customer service, quality coffee, and consistency for their consumers. To create buzz

about this line extension we wanted to create a slogan or catchphrase that could be used

throughout our advertising platforms. To incorporate Starbucks current brand and company

image while creating this new extension into apparel, we wanted to utilize their mission

statement, but make it relatable to this brand and line extension into clothing. Our thought

process behind our catch phrase was that slogans work best when they are short and memorable.

We wanted our consumers to feel connected to this slogan and apply it to their lives while also

connecting the slogan with Starbucks. “One cup, One shirt, Your city” shows that Starbucks gets

to know their consumers by representing their home cities and states. Established customers can

relate to the catch phrase because they already know and enjoy drinking Starbucks coffee. It

connects Starbucks’ mission statement, “To inspire and nurture the human spirit – one person,

one cup and one neighborhood at a time.” (Starbucks Co. 2017), with “One cup, One shirt Your

City”, carrying over Starbucks company image into promoting this new line. They will buy the

new merchandise designed to showcase different states and cities in the United States as they

recognize Starbucks targets customers from all over. This extension into apparel will add a more

personal aspect to the collection giving consumers the option to wear their cities and wear

Starbucks, without needing to purchase coffee or a coffee accessory.

Balance of Marcom Tools

Our product will be a line and brand expansion of the Local Collection and will showcase

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 19

T-Shirts and totes with the existing collection’s designs on them. The Price of both the shirts and

bags will be $30 each and they will be sold at current Starbucks locations. They will be displayed

side to side with the existing mug line. To encourage this new expansion, there will be a

promotion of buy one shirt or bag and receive a free Starbucks drink. As more and more people

buy these new products, they will act as walking advertisements and be able to promote

themselves as they are worn in consumer's day to day lives.

Marcom Tools Created

Below is a T-Shirt mockup template and banner ad we will run through our advertising

channels: Online, Instagram, Facebook, emails, and in-store promotion. We will be using the

already implemented Local Collection designs and translating them onto shirts and tote bags.

These will be sold in cities corresponding with the geographical locations on the products. Each

design will be promoted in the location that it depicts, personalizing the ads for the people of the

area. We decided on these forms of advertisement because most people spend time on social

media daily as well as in our stores, so we felt like this would be the best way to reach new and

existing consumers.

Banner Ad Mock Up

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 20

T-Shirt Mock Up Design Existing Mug Design

http://store.starbucks.com/on/demandware.static/-/Sites-starbucks-master-catalog/default/images/api-images/KO/washington_state_dw

_12_oz_us_ko.jpg

https://s3.amazonaws.com/user-media.venngage.com/bb7b3d2d0e5f7b325d1d517aee34470f.jpg

Conclusion

By using the marketing concept to create a production plan to efficiently produce the

new products at a low cost and create a high quality and performing product, Starbucks could

launch a clothing line that has the potential for expansion (Schiffman, L.G, & Wisenblit, J,

2015). Considering the strengths, weaknesses, threats and opportunities that Starbucks has, the

Living Local Collection will diversify them from current competitors, allow them to expand, and

bring in more customers while retaining current customers. Starbucks has done its consumer

research and already understands its market segments, who it is targeting, and who its’

consumers are. To launch this brand extension Starbucks can use the marketing mix: creating a

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 21

product, price point, place, and promoting the product (Schiffman, L.G, et. al., 2015). The

products are the organic cotton t-shirts and tote bags. They will have the same graphics as the

Local collection mugs and coffee accessory collection uses. Their price point will be $30 to

correlate the prices with the products and brand image the company currently has. The place is in

current Starbucks stores. In order to promote this product and create buzz about the brand

extension, a BOGO or buy one get one promotion will be used. Buy a new Living Local

Collection shirt or tote bag and get a free drink. Further promotion could incorporate and

promote Starbucks green image by using Starbucks fair trade coffee as well as the organic cotton

t-shirts and recycled tote bags. An omni-channel marketing approach using emails to current

customers, online ads, Instagram advertisements, and in-store promotions will be used to create

buzz and get the products out to the consumer. Adding the Living Local Collection will bring

more attention to Starbucks and will help them stand out from their competitors with “One cup,

One shirt, Your city”.

MARKET RESEARCH: STARBUCKS BRAND & LINE EXTENSION 22

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http://pestleanalysis.com/swot-analysis-of-starbucks/

Company. (2015, April 21). Beyond The Coffee Shop. Starbucks Newsroom. Retrieved April 12,

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