Milkshake product to market as morning commute beverage

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Reference no: EM132287248

Suppose that Starbucks came up with a plan to develop a new milkshake product (coffee-flavored, of course, but also available with other flavors) to market as a “morning commute beverage.” The product would be packaged in a container that is convenient to drink from and to put in a car drink holder. It would distributed through Starbuck stores and other retailers such as supermarkets. Although a dairy product, the milkshakes would be shelf-stable (meaning they wouldn’t have to be refrigerated). Suppose as well that in preparing her communication program, the brand manager for Starbuck’s morning commute beverage is trying to decide between several proposals submitted to her by the brand-management team. The two leading options are:

(A) Coupons distributed by mail that are good for 50 cents off the price of a morning commute beverage.

(B) A television advertising campaign using 30-second spots.

Assume that the costs of both alternatives are the same. Which one of the two approaches would you recommend that the brand manager choose to introduce Starbuck’s morning commute beverage? Begin your answer with A or B, then briefly defend your recommendation, being sure to explain clearly why your recommended approach is superior to the alternative.

Reference no: EM132287248

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