• Strategy:
Strategy for Starbucks in Indonesia for the next 1 year that we proposed is to make a campaign called Starbucks for health. This campaign will focus on the health benefits that peoples will get from drinking a cup of Starbucks. We will change people perception about coffee into positive one and cooperate with other companies in Indonesia to show our support in people health.
The fact is that coffee actually one of the healthiest beverages billions of people consume regularly.
The average of 300mg coffee with exercise increase energy by 20% and decrease fatigue level while burning fat increased 107% greater than without caffeine. This can be happened because coffee contains hydroxycitric acid and chromium that can increase up to 30% in metabolic rate. It might guard against gout, diabetes and Alzheimer's disease.
Studies has shown positive results that compare consumption with diabetes rates, including reports that suggest people who drink two cups a day were 50 percent less likely to develop diabetes and also has been proven by doctors. The trouble comes when people start adding sugar and cream to their coffee, or even worse, buying thick, blended drinks with whipped cream on top.
Coffee when consumed in excess can be very addictive, stimulate, and a mood charger.
A large amount of coffee or caffeine consumed all at once can have a negative effect on blood. Too much coffee over time can stain people’s health.
We believe that this negative perception of coffee could be a threat to Starbucks. But we also see this as an opportunity when we can actually change people behavior in Indonesia to consume healthy coffee and make it as part of their life.
• Tactics:
1. Product: We will create a new flavor of Dark Coffee with Fruits topping. This coffee can also be added with skim milk. Dark coffee is the best coffee for health considered it has not been mixed with full cream milk, whipped cream, etc. Fruits topping in this product is a real fruit, not blended with the coffee but just a complementary to add more vitamin while drinking the coffee. For people who want to add milk in it, we will just add skim milk because it contains low fat rather than full cream milk which contains fat for body.
This product will provide a free one fruit topping. But if people want to add more than one topping, they could by add Rp 5.000, - for each coffee. The size of the product is the usual size of Starbucks cup where a white cup for hot drinks and a transparent cup for cold drinks. This tactic will be launch and develop for one year and continue to be one of Starbucks flavor for years after.
2. Price: The price for this product is Rp 29.500, - for tall size, Rp 34.500, - for grande size and Rp 39.500, - for venti size.
3. Place: To support Starbucks for Health Campaign, more places will be a 24 hours Starbucks retails where Starbucks will also open 10 retails per year. This will be a convenience to customers where they can decide what time they would like to drink a hot or cold Starbucks coffee. Places that will be open for 24 hours are Starbucks Kemang Village, Citywalk, Rest area in Karawaci Freeway and Summarecon Serpong. This will support some of Starbucks 24 hours store in EX and Sarinah. This tactic will start immediately and finish in 2 months.
4. Promotion: To communicate the message of healthy coffee we will use:
i. Advertising
Advertising for Starbucks will be done by advertising in magazines and newspapers. This will be conduct by one advertising per month.
Another kind of advertising is by creating roll banner in retails. The message of the advertising is to communicate the benefits of drinking a cup of coffee in daily life. The banner will be displayed for the first 3 months and there will be a change in design and displayed for another 3 months and continuously for one year.
ii. Sales Promotion
Sales promotion that will be conduct is a buy one get one Starbucks Dark Coffee with toppings by using BCA Credit Card. This will be implemented for one year.
Other tactic is cooperating with GNC, companies that produce vitamins for health. When customers buy Starbucks for Rp 500.000, - by combining recipients in one month start from the first recipient, they will get 10% discount when buying GNC product in any amount. This will be conduct for the first 6 months.
For the next 6 months, Starbucks will cooperate with Fitness First. If Starbucks customers buy a total of Rp 100.000, - in one transaction, they will get a free trial voucher in any Fitness First. This tactic will be implemented in 6 month after cooperating with GNC tactic.