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Effective product life cycle management is integral to the success of any business, and Starbucks, a global coffee giant, is no exception. In this essay, we will delve into the strategic considerations Starbucks employs during each phase of the product life cycle, focusing on its candy corn flavored coffee and mug as a case study.
Launching a new product demands meticulous planning and execution, especially during the market introduction phase. Starbucks faces the challenge of promoting its seasonal product, the candy corn flavored coffee and mug.
Promotion takes center stage during this stage, demanding informative strategies to educate customers about the product and its unique features. The company allocates significant resources to product development, ensuring quality, and carefully selecting distribution channels to optimize place. Advertising campaigns, both online and in-store, play a pivotal role in creating awareness, as Starbucks strives to capture the attention of potential customers.
Despite the initial investment, sales are typically low during this stage as the product is unfamiliar to consumers.
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According to Perreault, Cannon, and McCarthy (2011), this phase is characterized by substantial spending on product, place, and promotion. Starbucks strategically positions itself to be the pioneer in offering the candy corn flavored coffee and mug, setting the stage for subsequent phases of the product life cycle.
As the candy corn flavored coffee gains popularity, Starbucks enters the market growth phase, witnessing an upswing in sales and profits. However, success attracts competition, with rivals such as McDonald's and Dunkin' Donuts introducing similar products to capitalize on the growing market.
Starbucks must now adapt to the changing landscape, not only to maintain its market share but also to stay ahead of competitors.
During this phase, Starbucks may face challenges such as price wars and efforts by competitors to enhance their offerings. To counter this, Starbucks employs strategic marketing initiatives, possibly introducing variations of the candy corn flavored coffee and exploring partnerships to maintain its competitive edge. The emphasis shifts to product differentiation, customer loyalty programs, and continued promotion to solidify Starbucks' position in the market.
Entering the market maturity stage, Starbucks encounters a more mature and competitive landscape. Sales growth plateaus, and persuasive promotion becomes crucial to entice customers to choose Starbucks over competitors. At this juncture, Starbucks invests significantly in promotional activities to highlight the unique qualities of its candy corn flavored coffee and differentiate it from rival products.
Strategic alliances, innovative marketing campaigns, and perhaps limited-time offers are employed to revitalize interest in the product. Starbucks aims to position its candy corn flavored coffee as the preferred choice, leveraging its established brand image and customer loyalty. Despite the intensified competition, Starbucks remains committed to maintaining its market share and sustaining the candy corn flavored coffee through targeted promotional efforts.
As the candy corn flavored coffee approaches the sales decline phase, Starbucks must acknowledge the inevitability of product obsolescence. New offerings, such as Christmas-themed drinks, begin to replace the once-popular candy corn flavored coffee. Starbucks, however, holds an advantage over competitors due to its loyal customer base.
While the product's life span is short, Starbucks leverages its customer loyalty to ease the transition. Strategic planning for the discontinuation of the candy corn flavored coffee involves introducing new seasonal products, minimizing the impact of declining sales. Starbucks capitalizes on its reputation for innovation, ensuring that the departure of one seasonal product is seamlessly replaced by another, maintaining customer excitement and engagement.
In conclusion, Starbucks' management of the candy corn flavored coffee and mug exemplifies a strategic approach to product life cycle management. From the meticulous planning and promotion during the market introduction to navigating increased competition in the market growth phase, Starbucks strategically positions itself as a market leader. The challenges of maturity and eventual decline are met with persuasive promotion, innovation, and a focus on sustaining customer loyalty.
Ultimately, Starbucks' success in managing the candy corn flavored coffee demonstrates the company's ability to not only introduce innovative products but also to adapt to the dynamic market conditions at each stage of the product life cycle. As a result, Starbucks continues to set industry standards, showcasing the significance of strategic product life cycle management in the competitive world of coffee retailing.
Starbucks' Candy Corn Coffee: Strategic Lifecycle Management. (2016, Mar 16). Retrieved from https://studymoose.com/starbucks-product-life-cycle-essay
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