Project Create and Present an Original New Product Launch Strategy

Part One – Written Proposal for Original New Product Launch Strategy
Author’s Name
Institutional Affiliation
Table of Content
TOC \o "1-3" \h \z \u 1. Introduction PAGEREF _Toc26632473 \h 31.1. Starbucks Corporation Profile PAGEREF _Toc26632474 \h 32. Statement of Need and Buyer Persona Profile PAGEREF _Toc26632475 \h 42.1. R&D (Research and Development) for New Product Need PAGEREF _Toc26632476 \h 42.2. Statement of Need PAGEREF _Toc26632477 \h 62.3. Buyer Persona Profile PAGEREF _Toc26632478 \h 73. Proposed Solution PAGEREF _Toc26632479 \h 83.1. 7P’s Marketing Mix PAGEREF _Toc26632480 \h 83.1.1. Products PAGEREF _Toc26632481 \h 83.1.2. Price PAGEREF _Toc26632482 \h 83.1.3. Place PAGEREF _Toc26632483 \h 83.1.4. Promotion PAGEREF _Toc26632484 \h 83.1.5. People PAGEREF _Toc26632485 \h 103.1.6. Processes PAGEREF _Toc26632486 \h 103.1.7. Physical Evidence PAGEREF _Toc26632487 \h 104. Resources Required PAGEREF _Toc26632488 \h 114.1. Arabica Organic Beans for Gourmet Coffee PAGEREF _Toc26632489 \h 114.2. Welfare Projects for Farmers PAGEREF _Toc26632490 \h 114.3. Budget Allocation to Marketing and Customer Services Department PAGEREF _Toc26632491 \h 114.4. Research and Development Activities PAGEREF _Toc26632492 \h 115. Time Frames for Completion PAGEREF _Toc26632493 \h 126. Conclusion PAGEREF _Toc26632494 \h 12References PAGEREF _Toc26632495 \h 14
Part One - Written Proposal for Original New Product Launch Strategy
1. Introduction
Organizations require innovative strategies to develop policies and procedures to launch new products and services. The competitive advantage is sustained through the introduction of new products that are compatible with the requirements of the market and customers. The market conditions have changed a lot in recent years and the rise in competition has encouraged organizations to invest financial capital for the identification of market opportunities that can be used for the development of new products. As a consultant for Starbucks Corporation, a report is developed to present a new product launch strategy. Starbucks Corporation is successful to achieve a competitive advantage in the industry of food and beverages. The new product launch strategy helps the company to sustain competitive advantage through the achievement of customers from new segments of the market. Consultant role and responsibility is to recommend a new product that is compatible with the current product portfolio of the company and it should help in the fulfillment of objectives associated with corporate social responsibility (CSR). The report further highlights the statement of need for new product and it includes buyer persona profile, a proposed solution, resources required for new project and time completion period.
1.1. Starbucks Corporation Profile
Starbucks is a multinational corporation with more than 30,000 stores in 80 countries around the globe (Starbucks, 2019). Company has a diversified product portfolio. Currently, Starbucks offers more than 30 blends and single premium coffees, handcrafted beverages and fresh food products. The handcrafted beverages include hot and iced espresso beverages, iced coffee, Teavana teas and fresh food products include salads, baked pastries and sandwiches (Starbucks, 2019). The success of Starbucks can be judged from the fact that it generated a revenue of more than $24.7 billion in 2018 as compared to $21.3 billion in 2016 (Forbes, 2019). The stores' segment revenues increased from $16.8 billion in 2016 to $19.7 billion in 2018 and licensed stores segment revenues risen from $2.2 billion in 2016 to $2.7 billion in 2018 (Forbes, 2019). Company has invested a lot of financial capital to introduce CSR initiatives related to ethical sourcing and sustainability, green retail and projects to strengthen local farmer communities (Starbucks, 2019a). Overall, the company is considered a market leader in the coffee industry.
2. Statement of Need and Buyer Persona Profile
Research is conducted to identify the need for a new product for Starbucks Corporation.
2.1. R&D (Research and Development) for New Product Need
The market research conducted helped to identify that Millennial generation is one of the most important customer segment in the coffee industry. In recent years, coffee culture has evolved a lot in the US and it created new opportunities for companies. The research data presented by New York-based National Coffee Association indicates that daily consumption of coffee in customers from 18 to 24 years old increased from 34% in 2016 to 48% in 2017 and from 51% in 2016 to 60% in 2017 among customers within the age group of 25 to 39 years (Nation's Restaurant News, 2017). The report presented by NCDT (National Coffee Drinking trends) shows an increase in the consumption of coffee among customers of all ages (Pbfy, 2019). NCDT report further added new types of coffees to gourmet category and these are known as non-espresso based beverages (Pbfy, 2019). Survey of NCDT revealed that 59% of respondents had consumed a cup of gourmet coffee within the past day (Pbfy, 2019). The new gourmet coffee includes frozen blended and cold brew coffee and surveyed customers in the report have expressed an increase in consumption of non-espresso coffees (Pbfy, 2019). Therefore, the recommended new product for Starbucks is a non-espresso based gourmet coffee and pure organic Arabica coffee beans will be used to produce the coffee product.
Another important fact identified is that the millennial generation gives preference to companies with a large investment in CSR initiatives. According to the results of two survey conducted by PWC and Deloitte in the year 2016, it is identified that 81% of Millennials give more preference to sustainable products and 56% excludes companies which have not invested to operate sustainably (Morningfuture, 2017). A study of Harvard Business Review indicates that organizations with more socially responsible operational activities are successful to maintain a 25% to 50% lower turnover as compared to other companies (Whelan & Fink, 2016). Therefore, investment in CSR initiatives contributes to retaining highly skilled and professional employees. Neilson’s published report of Annual Global Corporate Sustainability in 2015 highlighted the same fact. According to report, 60% of consumers spend more on products which are offered from the sustainable brand and more specifically, 73% surveyed Millennials prioritize the sustainable brands for the purpose of spending (Landrum, 2017). Neilson report also stated that 81% of surveyed Millennials expect the brands to declare their CSR initiatives (Landrum, 2017). Starbucks needs to give more preference to the opinions of millennial, otherwise, it becomes difficult to retain professional and innovative employees, and attract new customers to increase revenues and profits. The results of the Deloitte Global Millennial Survey in 2019 show that Millennials support the companies with policies aligned and compatible with their values (Deloitte, 2019). Deloitte survey shows 64% of senior Millennials give preference to personal values and 49% junior Millennials have considered morals and values as important, and it is evident from survey results mentioned below in figure (Deloitte, 2019).
Figure 1: Deloitte Survey Results About the Influence of Personal Values on Millennial’s Decision Making
Source: (Deloitte, 2019)
Hence, it is important to ensure that CSR initiative is attached to the new product launch of gourmet coffee because it helps to attract customers from millennial generation.
2.2. Statement of Need
“The new product launch of gourmet coffee helps to attract new customers from Millennial generation because it offers new taste and flavor and it is made from 100% organic Arabica beans. The company needs to introduce a CSR initiative at the launch of gourmet coffee. The new initiative states that 10% of the total profits generated from gourmet coffee will be allocated for the welfare of farmers around the globe. The attraction of new customers from the millennial generation helps to sustain the competitive advantage in the coffee industry”.
2.3. Buyer Persona Profile
The buyer persona profile helps to develop a marketing message and make crucial business decisions (Bonini, 2019). Buyer persona profile has helped to understand the buyer in its own environment (Revella, 2019).
Name Assigned to this Persona: Ross Taylor

Industry: Beverages
Segment: B2C (Business to customers)

Job Title: Research assistance at the R&D department of Coca Cola

Reports to: Vice President of Research and Development

Age: 29 years

Years in this Role: 5 years

Education: Undergraduate degree in business management, Graduation in business administration


Section 1: Job Description
Key qualification and responsibilities associated with buyer persona’s job:
1. Effective research to identify new opportunities in the beverages industry.
2. Develop and adjust strategies to meet the R&D department objectives.
3. Engage business partners to develop and present joint venture opportunities.
4. To stay current with industry standards and trends.

Section 2: Priority Initiatives
Objectives designated as the highest priority:
1) Continuous identification of new innovative products in the beverages industry.
2) Research to identify technological advancements in the beverages industry.
3) Improvement in skills and knowledge through analysis of real-world case studies.
4) Give preference to companies that invest more financial capital on CSR initiatives.
5) Prefers to try new organic products offered by other multinational companies.

Section 3: Perceived Barriers
Solutions for objectives of the buyer’s persona
1) New gourmet coffee of Starbucks is an innovative product developed by use of Arabica organic beans.
2) Starbucks current mobile application reflects high technological achievement because it uses an in-house developed algorithm to collect and analyze customer’s data.
3) Utilization of current resources to develop new products to attract more customers from the Millennial generation makes Starbucks a successful case study for stakeholders.
4) Company has decided to allocate 10% of profits generated from new gourmet coffee for the welfare of farmer communities and this CSR initiative helps to attract buyer persona.
5) A new gourmet co...