Case Study:
Use an existing coffee company, Starbucks, and run the new product: "Cannabis infused coffee. So focus efforts around the Beverage Industry, Starbucks Company, and they(we) will prepare to launch the new product in specific states that has legalized recreational cannabis use.
Create a written positioning statement that identifies: (300 words)
1. Your organization's product/service
2. Your target market
3. How your product solves the target market's needs
4. What makes your organization different from its competition
Strategy and Positioning Analysis
Intro/Thesis - will be developed once a bit more of the team paper is completed.
Overview of Organization
Starbucks is a $21.3 billion company (Marketwatch.com, 2016) that began as a simple coffee shop in Seattle Washington in 1971. The motto back then was the same as it is today: "share a great cup of coffee with our friends and help make the world a little better" (Starbucks.com, 2016). From humble beginnings, Starbucks has grown to be the standard for the coffeehouse experience. The company offers a wide range of ground coffees in store fronts and online. In a typical Starbucks coffee shop, they offer not only fresh brewed coffee options, but teas, pastries, snack foods, and a variety of items to take on the go or enjoy in a comfortable environment while listening to artsy music. Starbucks was the catalyst of the coffeehouse revolution.
The non-alcoholic beverage industry is current experiencing a 2.2% growth from 2014 to 2015 and ready-to-drink coffee has increased in volume over 10% from 2013 to 2014 (Cspdailynews.com, 2015). In the US coffee market, Starbucks is on top with a whopping 42.2% market share, with the closest competitor coming in at 25.5% (Statista.com, 2016). This gives them the supply chain and capital bandwidth to innovate and market new products in multiple test markets around the nation.
Description of Product
The new product Starbucks will be introducing into the market will be a cannabis infused coffee beverage in a pre-sealed container only. It will be similar in taste to current coffee offerings such a Frappuccino and Doubleshot products. The packaging will clearly be distinguishable between the two product lines by distinct labeling differences and packaging shapes. This will be a limited offering, only in stores in the US where recreational cannabis used is legal according to state laws. Currently the limited product launch will be in California, Colorado, Washington, Oregon, Massachusetts, Maine, and Nevada. As restrictions are continue to be removed around the country, the product will be offered in those locations as well if the initial product launch is successful. From research via the internet, it has been determined that one of the side effect of cannabis use is that it can cause drowsiness (Leafscience.com, 2013). The caffeine content in coffee provides the user a stimulant that will counteract the sleepiness of the cannabis, essentially giving the consumer a "high" without the need to take a nap. The product will only be offered in sealed containers, as the chemicals in cannabis that give the consumer the euphoric sensations must be tightly controlled in a manufacturing environment. Starbucks manufacturing sites will purchase the cannabis products form a highly reputable, third-party supplier that will be required to meet ISO 9001 quality manufacturing standards.
SWOT Analysis
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Strengths (Internal)
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Weaknesses (Internal)
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Opportunities (External)
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Threats (External)
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Competitive Analysis
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Current company's strengths and weaknesses
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Potential Competitor's strengths and weaknesses
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Competitive Rival's strengths and weaknesses
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Target Market
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Product
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Place
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Promotion
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Price
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Competitive Barriers
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Likely responses
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Target Market Segments
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Demographic
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Psychographic
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Geographic
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Behavioral Factors
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