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Table of Contents
Section 3: Introduction ................................................................................................................. 1
Section 4: Company/Brand Information-Situation Analysis/Marketing Background .......... 2
Company History......................................................................................................................... 2
Brand Information ....................................................................................................................... 3
Product Pricing ............................................................................................................................ 4
Brand Location ............................................................................................................................ 4
Brand & Product Promotion ........................................................................................................ 5
Section 5: Industry Information: Category Trends ................................................................... 6
Brand & Product Development ................................................................................................... 7
Industry Trends ........................................................................................................................... 7
Advertising & Media Spending................................................................................................... 8
Section 6: Competitor Information ............................................................................................. 9
Identifying Competitors .............................................................................................................. 9
Direct Competitors ...................................................................................................................... 9
Section 7: External Information Trends Influencing the Industry ..................................... 13
Section 8: Current Consumers: Secondary and Primary Research ...................................... 14
Current Brand Audience............................................................................................................ 14
Secondary Research Data .......................................................................................................... 14
Section 9: Current Consumers: Geographical Emphasis Etc. Secondary & Primary
Research ....................................................................................................................................... 15
Geographical Information.......................................................................................................... 15
Primary Research Data .............................................................................................................. 20
Survey Results ........................................................................................................................... 20
Section 10: SWOT ANALYSIS.................................................................................................. 24
Section 11: TARGET AUDIENCE: .......................................................................................... 25
Section 12: MEDIA PLAN ......................................................................................................... 26
Appendix ...................................................................................................................................... 35
Executive Summary
Starbucks is a top, luxury coffee retailer around the world that prides itself on customer
service and brand loyal consumers. The brand offers consumers more than just an afternoon
pick-me-up but instead serves as a necessity in the daily lives of many consumers in groups
ranging from students to busy professionals. But while Starbucks is a leader in the coffee
industry, high prices keep some consumers from engaging with the brand and developing a
loyalty to it. The following media plan addresses these issues and emphasizes daily engagement
with the target audience. The media plan includes a wide range of advertising strategies such as
non-traditional, out-of-home advertising, and online advertising with the goal of welcoming
these consumers to the Starbucks family.
Section 3: Introduction
Starbucks is currently the top coffee retailer in the world and is successful because of the
quality brand image it has developed. Due to its great success, the company does not invest
much expenditures in advertising. Top competitors that Starbucks competes with are Dunkin
Donuts and McDonalds McCafe, which offer customers less expensive beverages.
Survey findings concluded that many consumers are unaware of promotional deals
offered by coffee retailers. Most respondents who knew about promotions were aware of them
because of in-store advertising and word-of-mouth. These insights are the basis of the strategy
which is to advertise monthly promotions at Starbucks to increase awareness of new promotions
and increase sales during promotional periods. The target audience is young professionals, ages
25-34, who live in the South and arent already brand loyal. The South has a large population,
yet Starbucks has the least amount of consumption from that region, so the plans overall goal is
to increase sales in the South.
The media plan consists of out-of-home, online, and non-traditional advertising.
Billboards and bus wraps will increase the plans reach and frequency, as will online
advertisements on top websites for the market. The plans effectiveness will be evaluated by
comparing the number of impressions before and after the media plan, as well as comparing sales
during price promotions to typical days. Increased sales would indicate that audience received,
recalled, and retained the message.
"Starbucks Company Profile." Starbucks Coffee Company. Starbucks Corporation, 2014. Web. 7 Dec. 2014.
<http://globalassets.starbucks.com/assets/233b9b746b384f8ca57882614f6cebdb.pdf>.
2
See above footnote 1.
3
"Starbucks Company Timeline." Starbucks Coffee Company. Starbucks Corporation, 2014. Web. 7 Dec. 2014.
<http://globalassets.starbucks.com/assets/5deaa36b7f454011a8597d271f552106.pdf>.
4
Trefis Team. "Higher Pricing & Accelerated Expansion In New Beverage Segments Drive Starbucks Top-line
Growth in FY2014." Trefis. Trefis, 31 Oct. 2014. Web. 8 Dec. 2014.
created beverages and foods with less artificial flavoring. They also expanded their menu to
include breakfast sandwiches and oatmeal.5 Starbucks bounced back and has since continued to
expand rapidly, opening nearly 2,000 stores in 2013 alone.6
Brand Information
Starbucks offers over 30 premium coffee blends in a wide variety of products such as
whole-bean coffee, micro-ground instant coffee, blended Frappuccino beverages, bottled
beverages, smoothies and full-leaf tea. Customers can purchase coffee and tea by the cup or in
prepackaged bags for home brewing. A large majority of Starbucks locations also offer fresh
food such as pastries, oatmeal, sandwiches, salad and prepackaged snacks. Branded merchandise
such as cups, mugs and tumblers are also available for purchase. Starbucks also has their own
home-brewing system, Verismo. In addition, Starbucks licenses their trademarks and sells
products such as Starbucks Iced Coffee and bottled Frappuccino at food retailers nationwide.7
Throughout the world, Starbucks is perceived as offering customers quality beverages
and snacks, as well as having good customer service. Starbucks is the worlds leading specialty
coffee roaster and retailer.8 The company has won many awards and received recognition for its
products, including being voted No. 1 Best Coffee in Zagats Survey of National Chain
Restaurants.9
Morrison, Maureen. "Starbucks Hits No. 3 Despite Limited Ad Spending." Advertising Age News. Advertising
Age, 02 May 2011. Web. 05 Dec. 2014.
6
See above footnote 3.
7
See above footnote 1.
8
"Starbucks: Trefis Analysis." Trefis. Trefis, 03 Apr. 2014. Web. 08 Dec. 2014.
<http://www.trefis.com/stock/sbux/model/trefis?freeAccessToken=PROVIDER_ee302f87ca2ab31d744b2d33f816fe
974868bd1f>.
9
"Starbucks Company Recognition." Starbucks. Starbucks Corporation, 2012. Web. 7 Dec. 2014.
<http://globalassets.starbucks.com/assets/5e71c94483a44a5db41abf79581fbf22.pdf>.
These perceptions of the Starbucks brand are consistent with the brand reality of highquality product and service. As of 2000, the brand uses Fair Trade Certified (FTC) coffee.10 This
means that the farmers who grow Starbucks coffee beans are compensated fairly. In addition,
most FTC coffee is grown organically. The decision to use FTC coffee contributes to the overall
brand image of high quality.11 In addition, Starbucks follows a strict and calculated process for
the testing of its product to ensure high quality and consistency with the Starbucks brand.12
Product Pricing
Customers are willing to pay for the Starbucks quality and the experience. In comparison
with competitors, Starbucks products are perceived to be expensive by the average consumer.
Because Starbucks is considered a luxury brand, customers are still willing to pay for products
when there are price increases, even when the competition is cheaper. Brand-loyal customers
believe that the quality is worth paying for and rarely substitute with other coffee/tea retailers.
Starbucks is generally able to maintain steady price points, though their prices tend to be
higher than competing coffee chains.
Brand Location
Presently, Starbucks Corporation has more than 21,000 company-operated and licensed
stores in 65 countries. The first international Starbucks location opened in Tokyo in 1996.
Starbucks has locations in North America, South America, Asia, Europe, Australia, and North
Africa. Most of the stores are concentrated in North America, Asia, and Europe.13
10
Company-operated Starbucks locations are most frequently found near offices and
residential areas. Franchised or licensed stores tend to be smaller and located mainly at airports
and retail outlets such as supermarkets. Starbucks has nearly the same amount of companyowned stores and franchised stores.14
Brand & Product Promotion
Since 2008, Starbucks has worked on advertising campaigns with Omnicom's BBDO.
Starbucks has worked with various other agencies, including MDC Partners 27 and Sunny and
most recently, Publicis Groupes Spark.15
The Starbucks brand has been built on a word-of-mouth advertising approach. Instead of
expanding advertising efforts, the brand focuses on creating connections between the brand,
employees and customers through in-store experiences.
The corporation rarely invests in TV advertisements, the first national TV advertising
campaign appearing in November 2007. In 2008, Starbucks purchased a TV commercial slot
announcing free coffee for those who voted on Election Day, which ended up being very
successful.16
Starbucks occasionally runs advertisements in newspapers such as The New York Times.
These ads typically criticize their competitors lower quality of coffee.17
The main vehicle Starbucks uses for promotion is social media. Its social media presence
is far greater than that of competitors and they have successfully implemented several social
14
media promotions and contests. Starbucks has also advertised on YouTube with a video of
Schultz talking with baristas about the quality of beverages.18
Another strategy Starbucks uses is product placement. This strategy places Starbucks
products where consumers may unconsciously see it in a movie or on regular TV programming.
Presently, Starbucks is conducting a promotion in which a few lucky customers can win
approximately 500,000 products for free. Named the Starbucks For Life promotion, this new
initiative encourages gift card and My Starbucks Reward usage. Customers who pay with either
of these options are entered to win one of 13 grand prize packages.19
In addition, Starbucks recently launched its first brand campaign, called Meet me at
Starbucks. These ads present a day in the life of Starbucks in a mini-documentary centered
around customer experiences. The campaign was inspired by the interaction Starbucks receives
from customers on social media.20
From the beginning, Starbucks has been a strong brand with a clear brand identity.
Despite spending little money on advertising, the Starbucks brand has continued to grow and
expand because of its strong, loyal consumer base.
18
21
Donuts and Peets Coffee have also been forced to raise their prices. Because Starbucks has such
a large, loyal consumer base, price changes do not significantly affect product sales.26
Recognizing that this model will not always be effective or profitable as consumer
spending habits change, Starbucks has tried to increase the popularity of their VIA instant coffee
and K-Cups for use with Keurig home coffee makers. They also recently acquired the Teavana
brand, which they hope will boost sales, especially in their growing markets in Asia.27
Starbucks anticipates a shift in consumer preference to ecommerce or digital purchasing.
As such, the company is taking steps to address this new demand. Starbucks has introduced gift
cards and the My Starbucks Reward card, as well as created the previously-mentioned Starbucks
For Life promotion to encourage use of these payment methods. 28 In addition, Starbucks is
testing a new mobile app feature that will enable customers to pre-order a beverage before
visiting a Starbucks location. This will allow customers to skip a long line to order their drink.29
26
Most of the brands advertising and marketing is based around seasonal products, such as
the popular Pumpkin Spice Latte in the fall, Peppermint Hot Cocoa in the winter, and its
Frappuccino beverages in the warmer months.
The company rarely purchases television or radio spots.32 In the future, a trend of
focusing advertising spending on online video may emerge. In October 2014, Omnicom Groups
Daryl Simm announced that his agency recommends clients move 10-25% of their television
advertising budget to online video. Simm, the Chief Executive Officer of Media Operations,
suggests that brands spend these media dollars advertising on websites like Hulu, AOL, Yahoo
and YouTube.33
Starbucks has effectively built a strong brand despite limited media and advertising
spending. A leader in its industry, Starbucks continues to prosper.
10
Indirect competitors to Starbucks include products for consuming coffee at home such as
Keurig, VIA Ready Brew, and retailers who sell coffee beans. In addition, indirect competitors to
Starbucks include coffee at restaurants with a meal and other restaurants that offer coffee as a
beverage but do not specialize in coffee brewing.
Brand Category
The market that Starbucks and its competitors exist in is an oligopoly, meaning that a
small number of companies, or sellers, dominate a market. Starbucks and Dunkin Donuts
control approximately 60% of the coffee market in the United States. Starbucks holds
approximately 36% and Dunkin Donuts owns approximately 24%.34
Dunkin Donuts
McDonalds McCaf
Company
Financial
Information
Brand
Positioning
Ad Description
More contemporary feel and focus Im lovin it. Ads for McDonalds
on green initiatives. Utilizing the
McCaf have appeared on traditional
34
11
Brand
Promotion
Media Spending
Pricing
38
12
Brand &
Product
Offering
42
13
Current Users
Even though Starbucks has very strong competitors in its market, it still stands strong as
one of the most stable brands in the specialty products industry.
45
Rafii, Ladan. "The Starbucks or McCaf Crowd: Who Counts More Politically?" The Huffington Post.
TheHuffingtonPost.com, 12 Nov. 2013. Web. 09 Dec. 2014.
46
"McDonald's Seeks to Out-Latte Starbucks in Coffee War." Bloomberg.com. Bloomberg, n.d. Web. 09 Dec. 2014.
47
See above footnote 37.
48
"2014 National Coffee Drinking Trends." - National Coffee Association. N.p., n.d. Web. 09 Dec. 2014.
14
15
have a household income between $50,000 and $59,999 and 7.4 percent have a household
income of less than $20,000. These two income segments are representative of how much young
professionals and students would make. Gender does not play a huge role in the consumer
audience, but women are more likely to be a Starbucks patron. The MRI indices report that
women aged 18-32 are 32 percent more likely to have an espresso beverage while men aged 1834 are only 14 percent more likely to have an espresso beverage. However, both groups carry a
lot of potential and therefore are both included in the consumer audience. Marital status is
another important factor in this consumer audience. 8.2 percent of adults who have had an
espresso beverage have never been married and 9.2 percent of adults who have had an espresso
beverage in the last 6 months were engaged. This means the group of people who are most
frequently visiting Starbucks are young and independent and more focused on the self rather than
feeling responsible for a family. This idea of responsibility is also determined in the data
regarding living conditions. The data shows that 8.3 percent of adults who have had an espresso
beverage in the last 6 months lived in their home for less than a year, which is very
representative of the student or young professional lifestyle.
The knowledge gained from research about the current consumer market for Starbucks is
a very helpful component in the deliberation of what target market should be utilized in
Starbucks advertising.
Section 9: Current Consumers: Geographical Emphasis Etc. Secondary & Primary Research
Geographical Information
Using MRI data from fall 2013 that surveyed how many people bought product from a
Starbucks location in the past six months, general geographic trends can be analyzed. According
16
to this data, there was a significantly higher population in the South region of the United States,
with an estimated 88,114,000 people. The other geographic regions of the United States had
significantly lower populations; the Midwest and West being very similar with 51,129,000 and
53,429,000 respectively, and the Northeast region with 42,904,000.
The projective column of the data shows that in the South, approximately 10,722,000
members of the population bought Starbucks. Speaking in terms of percentages, 12.2% of
consumers who bought from Starbucks lived in the South, and 31.1% of consumers who lived in
the South bought from Starbucks.
In the Midwest, approximately 6,365,000 members of the population bought Starbucks,
meaning 12.4% of consumers who bought Starbucks lived in the South, and 18.3% of consumers
who lived in the Midwest bought Starbucks.
In the West, approximately 11,239,000 members of the population bought Starbucks,
meaning 21% of consumers who bought Starbucks lived in the West, and 32.4% of consumers
who lived in the West bought Starbucks.
Lastly, in the Northeast, approximately 6,315,000 members of the population bought
from Starbucks, meaning that 14.7% of consumers who bought Starbucks were from the
Northeast, and 18.2% of consumers who lived in the Northeast bought Starbucks.
Comparing this data, it is shown that Starbucks is performing better and is more popular
in the Western region of the United States, as a higher percentage of its population bought
Starbucks. This is also seen by looking at the Index, as the Wests is 143, whereas the other
regions are 100 or less.
Where is the largest population of consumers located?
17
The largest population of consumers are located within urban areas other than central
cities in the southern region of the United States. Utilizing a Consumer Expenditures Report
from 2012, it is stated that 124,416 thousand people were counted: 22,459 were from the
Northeast, 27,584 thousand were from the Midwest, 28,035 thousand were from the West, and
46,338 thousand were from the South.50 The type of area that the individuals lived in was also a
factor considered. It stated that 114,117 thousand individuals were considered: out of this,
36,929 lived in central city area, 77,188 thousand lived in other urban areas, and 10,299 lived in
rural areas.51
What is the distribution of your brand?
Starbucks has locations in North America, South America, Asia, Europe, Australia, and
North Africa. Most of the stores are concentrated in North America, Asia, and Europe.52
There are approximately 12,000 company-owned and licensed Starbucks locations within the
United States. Starbucks also has more than 9,400 units outside the United States in more than 65
countries. According to Starbucks 2013 Fiscal Report, Revenues from countries other than the
US consist primarily of revenues from Canada, the UK, and China, which together account for
approximately 64% of net revenues from other countries for fiscal 2013.
Starbucks has been successful so far in their recent expansion into Asia. Tea is very
heavily consumed in many Asian countries, so Starbucks Tazo brand teas and their recent
acquisition of Teavana has significantly helped the company in its efforts to succeed in this new
geographic region.53
Should you allocate media dollars evenly throughout the U.S.?
50
Heffetz, Ori. "Who Sees What? Demographics and the Visibility of Consumer Expenditures." Journal of
Economic Psychology 33.4 (2012): 801-18. Web.
51
See above footnote 10
52
See above footnote 13.
53
See above footnote 1.
18
Using the research regarding where current consumers are living, Starbucks should not
allocate media dollars evenly throughout the U.S. It is shown that the population of consumers in
the West purchased Starbucks the most out of all other regions of the United States therefore,
Starbucks should focus more media dollars toward others region of the US where there is less
consumption, specifically the South.
Should you heavy-up spending in certain urban, suburban or rural areas, regions of the
U.S., or globally?
According to the research, it would be beneficial for Starbucks to heavy-up in the south
region of the U.S. because there is not a lot of consumption there compared to the size of its
population. It is shown evidently by MRI data that urban areas are also the most popular among
consumers, as well as suburban areas.
Seasonality & Timing
Sales and consumer behavior for Starbucks fluctuates depending on the season, especially
in mid-November and December during the holiday season. Starbucks Fiscal 2013 Annual
report shows cash flows are significantly higher during the first quarter of the year. According to
the report, this is largely due to the increased sales and reloading of Starbucks cards.
Additionally, Starbucks merchandise, including coffee mugs, coffee, tea and other specialty
beverage accessories are popular holiday gifts. Starbucks is also known for promoting a variety
of seasonal beverages, such as the Pumpkin Spice Latte during the fall and the Caramel Creme
Brule Latte during the holidays. Survey data shows that consumers are more likely to visit
Starbucks when these seasonal drinks are available.54
54
19
Timing also plays an important role in Starbucks sales and the consumer decision making
process and should be taken into consideration when making media placement decisions.
Starbucks experiences peak selling times throughout the day. These include the morning rush
beginning around 7 am and lasting until about 10 am and the afternoon rush beginning around 1
pm and lasting until about 3 pm. These times offer a variety of opportunities for potential media
placements.
Awareness: Currently, Starbucks does not spend much on advertising. The reason for this is
because Starbucks is an established and successful company which consumers are aware of.
Most Starbucks customers are brand loyal and therefore, are repeat customers. New customers
become aware of Starbucks through word-of-mouth of loyal customers.
Preference: Starbucks prides itself on having quality products and excellent customer service
that allows customers to customize their drinks. It also has an extensive drink menu that caters to
everyones needs.
20
Search: There are Starbucks locations throughout the world therefore, making it convenient and
easy for customers to visit a Starbucks. Starbucks has a signature logo of a twin-tailed siren
which makes it easy for customers to find.
Selection: Starbucks is not only known for its extensive choice of beverages, but also prides
itself on having quality products and on offering a customized customer experience. Customers
continue to come back to Starbucks because they are brand loyal, meaning that they value the
quality and customer service of Starbucks which they believe surpasses those of top competitors
such as McDonalds and Dunkin Donuts.
Purchase and use: Customers who dont have time to make coffee at home decide to purchase
coffee from coffee shops on average of 2 times a week. Because they enjoy the Starbucks
quality, they choose to go there over top competitors, even if that means paying a higher price.
They become brand loyal and therefore are repeat customers.
Satisfaction: Starbucks prides itself on excellent customer service. Baristas are expected to
make orders which meet customer expectations, and if they fail to do so, a customer order is
remade until the customer is satisfied. Starbucks is also known for giving customers a free drink
voucher if an order is incorrect or if a customer has been kept waiting too long. Customers can
address specific issues by contacting customer service by phone or email.
21
A survey was conducted in which participants were asked about coffee drinking habits
and coffee shop preference. In the implementation of this survey, the goal was to discover if the
target market shows a brand preference for Starbucks, and why or why not this brand preference
exists. The variables which participants were asked about are atmosphere, convenience, price,
product quality, brand name, customer loyalty benefits, and variety of food and drink options.
Based on the results gathered from this survey, consumer purchase behavior and the qualities
that attract consumers to a certain coffee shop were determined.
The survey was distributed on social media, making it a convenience sample. The survey
was created through Qualtrics Online Survey Software.
The survey received responses from 70 people of all different ages and locations. The age
of respondents ranged from 14 to 64, though 44% of respondents are in the 19-21 age range.
Approximately 39% of respondents were female and 61% were male. The location of
respondents varied widely with 20% residing in Champaign and the rest split between major US
cities such as Boston, Buffalo, Detroit, and Minneapolis.
To begin with, the average amount of times a respondent drank coffee was about 5 times
a week. The majority of respondents (53%) said that seasonal drinks do not have an impact on
whether or not they will visit a coffee shop. 44% of respondents said that they often purchase the
same beverage and no respondents said that they purchased a different beverage on each visit to
a coffee shop.
The survey asked respondents why they visit coffee shops to understand their behavior.
Most consumers visit coffee shops to purchase a beverage. A majority of consumers also visit
coffee shops to study or work alone, and 44% of respondents visit a coffee shop to relax.
22
When asked about how they heard about special promotions for their favorite coffee
shop, respondents stated they rely on in-store flyers or displays (39%) or through word-of-mouth
(31%). Social media plays a big role in advertising special promotions according to 22% of
respondents. It is interesting to note that 28% of respondents stated that they dont hear of special
promotions for their favorite coffee shop.
Consumers were also asked to rank coffee shop attributes based on what qualities they
valued most. Convenience, atmosphere, and product quality were ranked as the top 3 qualities
that consumers take into consideration when choosing between coffee shops, followed closely by
price.
Respondents were asked to rank 4 coffee retailers based on quality. Local, privately
owned coffee shops, followed by Starbucks were ranked on average as being the best quality.
Dunkin Donuts was ranked third on average for having the best quality, meaning that
McDonalds was ranked on average as offering the worst quality products.
Respondents were asked to rank 4 coffee retailers based on price. Starbucks was ranked
most expensive on average, followed by local, privately owned coffee shops. Dunkin Donuts
was ranked second least expensive, which means that consumers consider McDonalds the least
expensive coffee retailer.
Respondents were asked to rank 4 coffee retailers based on variety of options.
Respondents reported that Starbucks has the greatest variety, followed by local, privately owned
coffee shops. Dunkin Donuts had the second least variety, leaving McDonalds as the worst
coffee brand for variety of options.
Respondents were also asked to describe their feelings about Starbucks in three words.
The word most frequently used to describe Starbucks was expensive, with 31.4% of
23
respondents reporting this quality. Approximately 11.4% of respondents felt Starbucks was
average, while 10% listed Starbucks as being convenient.
Approximately 10% of respondents reported that they had never been to a Dunkin
Donuts location. This is likely due to the brands unavailability on the west coast. Respondents
that have been to a Dunkin Donuts reported that the quality is acceptable and the service is
efficient.
When respondents were asked to write one statement about McDonalds coffee options,
10% responded that McDonalds coffee is cheap. In addition, 14% of respondents said they
have never tried McDonalds coffee. Approximately 16% of respondents reported that
McDonalds coffee is a quick and cheap alternative to Starbucks.
Focus Group
A focus group was conducted which included 8 people, 4 of them were male and 4 of
them were female, ages 19-21. All participants and moderators were gathered at the
Communications Library in Gregory Hall. They were students at the University of Illinois who
are active and constantly busy. During the focus group, consumers were asked questions about
Starbucks, Dunkin Donuts, and McDonalds McCafe. To begin with, participants were asked
what word came to mind when thinking about Starbucks, Dunkin Donuts, and McDonalds
McCafe in order to gain insights about brand attributes. Participants were asked to recall
company slogans and advertisements to measure advertising efforts. Then participants were
asked to recall any promotions to measure consumer awareness and advertising efforts.
Throughout this research the goal was to discover which advertising campaign of the three
brands, the participants could recall best. Most questions distributed to the participants were
open ended, where they had the chance to brainstorm with each other to provide answers.
24
Questions such as What is the slogan for McDonalds? Most all participants replied correctly
with Im lovin it. The same question was asked for Dunkin Donuts and Starbucks. The
response timing for Dunkin Donuts was slower than that of McDonalds, although the
participants did respond correctly with America Runs on Dunkin. The respondents did not
have an answer for the slogan of Starbucks, which was seen as correct because Starbucks does
not have a slogan that they use consistently within their advertising.
The information gathered from research about Starbucks was helpful in the deliberation
of what audience would be best to target for a new media plan to be implemented in Starbucks
next advertising campaign.
Opportunities
Weaknesses
Threats
25
hour, coupons)
Greater variety of seasonal beverages
during the summer
Expand newly acquired Teavana brand
Expand food options
Place more emphasis on going green
(e.g. using less plastic, etc.)
Diminish corporate feel
Although Starbucks is known as a very successful and stable company within the
specialty products market, there is always room for improvement to be made.
Rationale: Business professionals of this age cohort are an opportunity for Starbucks because
they are already out in the business world and have some amount of a disposable income. The
southern region of the United States has the largest population yet, the least amount of Starbucks
sales come from the South (12.2%). Therefore, the target audience is compiled of people who are
not already brand loyal to drive sales in the region.
55
http://factfinder2.census.gov/faces/tableservices/jsf/pages/productview.xhtml?pid=ACS_13_1YR_CP05&prodType
=table
26
After completing primary and secondary research regarding current and potential
consumers for Starbucks, it was much easier to imagine and describe a target audience for the
new media plan to be implemented into the brand.
27
Media Objectives(Impressions):
To reach 70% of the target audience an average 7 times a week
Other recommendations:
Posts on official Starbucks social media accounts should be updated before the morning
and afternoon rush on days which Starbucks has promotional deals. This timing is
important because it will remind customers of deals before they purchase coffee during
rush periods and make them more likely to purchase their coffee from Starbucks.
Geographic/Location:
28
29
the media mix. Ads will also be placed on other frequently visited sites by the consumers like
Google and YouTube.
Media Categories/Types:
Out-of-Home:
Transit advertising:
Will increase the reach and frequency of the message to the audience.
Transit advertising in the form of bus wraps in major cities throughout the South
This mass advertisement will be cost efficient because it will reach a large portion
of the target audience
Billboards:
Billboards would increase the reach and frequency of the campaigns promotional and seasonal
deals in a cost efficient manner
Poster boards in cities would target young business professionals working in the
city.
Painted bulletins would reach young business professional who are commuting to
work on highways and major roads.
There are Starbucks locations everywhere therefore, consumers can act on
billboard ads because they will be nearby the point of purchase
Online/Digital:
Social Media:
30
31
YouTube has 166,140,660 unique visitors and 10,760,467,629 page views per
month which could help reach the target audience (SRDS)
Non-Traditional Media:
Consumer Merchandising:
Local Starbucks franchises will drop off Starbucks products, such as coffee mugs and
coffee, at nearby offices in order to increase preference for Starbucks and also, awareness
of promotions and deals.
Budget:
The Starbucks Media Plan with a budget of 1 million
dollars will be allocated into three different media
venues.
50% Internet ($500,000)
Facebook- $100,000
Google- $200,000
YouTube- $100,00
40% Out-of-home ($400,000)
Billboards -$200,000
Transit Advertising-$200,000
10% Customer Merchandising ($100,000)
32
33
Evaluation
A variety of evaluation methods will help determine the success of the media plan.
Counting impressions will determine the reach of the out-of-home advertising strategies, which
includes transit and billboard advertising. Reports of click-through rates will measure how many
consumers are reached through online advertising such as social media and other top sites for the
target audience. To determine the overall success of the media plan, sales before and after the
implementation of the plan will be measured. This will also include comparing profits for days
with and without price promotions.
34
35
Appendix
Survey Questions
What is your age?
What is your gender?
What city do you reside in?
On a scale of 1-5, please rank the following media devices from which you use the most
to which you use the least:
Computer, Tablet, Phone, Television, Radio
Do you drink coffee?
Please rank each daypart with how likely you would be to drink coffee during this time.
On average, how many cups of coffee do you drink per week?
Which of the following describes why you visit coffee shops?
Please rank, in order of importance, the qualities that you look for when choosing
between coffee shops.
When seasonal drinks are available, how much more likely are you to visit a coffee shop?
Through which social media outlets do you follow your favorite coffee shop?
How do you hear about special promotions for your favorite coffee shop?
Please rank these coffee retailers regarding the quality of their products, with 1 being the
highest quality and 4 being the lowest quality.
Please rank these coffee retailers regarding the price of their products, with 1 being the
most expensive and 4 being the least expensive.
Please rank these coffee retailers regarding the variety of product choices, with 1 being
the most variety and 4 being the least variety.
36
37
Yes. As a group we found the assignment instructions and blank grading rubric to be
helpful but stressful. This is because the instructions were significantly more detailed
than the rubric which created an overwhelming feeling.