By: Stacee Becker, Marisa Del Priore, Donavan Farrish, Kathleen
Kielpinski, Elizabeth Pawlowski, Michael Spinella 1 Executive Summary Starbucks Corporation has been the most successful coffee chain in the past few decades using their aggressive expansion strategies to push out much of its competition. Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. They are currently leading the retail coffee market with selling their coffee for a premium price to increase their profitability. McCafee 2 Problem Will the allure of gourmet Starbucks coffee be maintained or will more appealing options threaten the success of Starbucks primary product? Can advertising significantly help maintain Starbucks image? A good place to start involves evaluating the current market for coffee and do a competitive analysis to see the market performance and to determine the extent to which designer coffee appeals to current consumers. McCafee 3 Overview On Product Growth Starbucks surpassed Wendys and Burger King in becoming the number 3 restaurants chain posting $9.07 billion restaurant sales last year. It is expected to gain in one of the fastest-growing day parts in restaurants for breakfast. Its measured-media budget is a fraction of what come of the other top chains spend. Starbucks only spent $94.4 million in media spending compared to McDonalds spent about $887.8 million in the United States only in 2010. Starbucks has worked with agencies such as Omnicoms Goodby Silverstein & Partners. Breakfast is the final frontier of growth in this country and coffee is growing as well. David Palmer UBS restaurant and packaged food analyst. AD Age 4 Major Competitors Dunkin' Donuts McDonalds Caribou Coffee
5 Store Locator Has 12,500 coffee shops in the United States McDonalds McCaf Starbucks Dunkin Donuts Has 6,700 coffee shops in the United States Caribou Coffee Has over 31,000 restaurants World Wide. Has 415 coffee shops in 16 States in the United States 6 Starbucks vs. Dunkin Donuts The taste-test advertisement directed towards Starbucks, actually naming the brand in the commercial, surveying coffee drinkers. More hardworking Americans preferred the taste of Dunkin Donuts over Starbucks. Within a week of the ads launch about 50,000 people visited dunkinbeatsstarbucks.com It is a site that communicates the hard-hitting competitive message with clarity and humor. Entering this site you can: Learn the Truth (presenting Dunkins coffee story) or Spread the Truth (sending an e-card to your friends who drink Starbucks) Weekly traffic to DunkinDonuts.com jumped 61%
Starbucks vs. Dunkin Donuts Small is the New Tall. AD AGE 8 Starbucks vs. Dunkin Donuts In March 2009, the company unveiled an alternative slogan, You Kin Do It!, and launched a $100+ million ad campaign to promote it. The campaign slated to run through 2009, includes radio, print and outdoor advertising, in addition to in-store point of purchase, special events, and sports marketing. Online marketing, often leveraging the Boston Red Sox and the other New England icons. Dunkin Donuts Press 9 Starbucks vs. McDonalds McDonalds Billboard in Seattle Starbucks vs. McDonalds McDonalds has offered breakfast for years, and over the last couple years has been heavily marketing its McCaf. Lines of coffee drinks all while continually rolling out new drinks of both the coffee and non-coffee variety, such as smoothies and frappes, McDonalds version of the Starbucks frappuccinos. Starbucks created their frappuccino for the summer season while McDonalds introduced their frozen strawberry lemonade, a non-coffee beverage under McCaf. AD AGE 11 Starbucks vs. McDonalds Like Dunkin Donuts, McDonalds took a stab at Starbucks during TV ads as well. The two television ads were titled Intellectuals and Hipsters. Along with a TV ad McDonalds set up a website unsnobbycoffee.com to promote its Washington States McCaf Outlets. To email their friends about how they feel about high priced coffee In additional to the usual media, McDonalds makes significant use of billboards and signage, sponsors sporting events ranging from Little League to the Olympic Games. AD AGE 12 Starbucks vs. Caribou Coffee Starbucks vs. Caribou Coffee Caribou Coffee spent $2 million on U.S. advertising in 2008, compared to the $300,000 it spent in 2007 according to Nielsen Monitor-Plus. (AD Week) Analysis of visitor demographics reveals that Caribou Coffee could possibly have more online success if they pull-in some of the same types of online visitors as Starbucks does. While Caribou Coffee attracts a respectable amount of young adults (32% between the ages of 18 and 34), this does not compare to the 42% that Starbucks attracts. Paying for advertisements on social networking sites where educated young adults visit frequently, such as Facebook, may likely prove to be a wise strategic move for Caribou Coffee. Facebook refers 3.92% of Starbucks traffic to the Starbucks Website, while Caribou coffee lacks in Facebook referrals.
SEO Analysis 14 Starbucks vs. Caribou Coffee Catergories Caribou Coffee Starbucks Coffee Starbucks Coffee Shops Coffe Brand $606,600 $12,312,300.00 $26,219,100 Magazines $417,200 $11,637,100.00 $641,900 Newspaper $189,400 $10,000 $744,600 National Newspaper $604,900 $6,948,000 Outdoor $60,400 $1,699,000 Network TV $3,152,400 Spot TV $125,400 Syndication $89,200 Cable TV $8,640,000 National Spot Radio $4,134,700 15 Starbucks vs. Caribou Coffee $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 Caribou Coffee Starbucks Coffee Starbucks Coffee Shops 16 Media Spending Television Campaigns Web Campaigns Tactical Campaigns (Giveaways and Promotions) Regional Campaigns
17 Television Campaigns Dunkin Donuts outspent McDonalds 60% on coffee- specific products in paid media $27 Million to $17 million. Dunkin; Donuts spent 83% of its budget on TV: two-thirds of that on spot TV and a third on cable. McDonalds spent 97% of its traditional media budget on spot TV to support its McCaf rollouts and on regional promotions in 74 local markets.
AD AGE 18 Web Campaigns Dunkin Donuts spent 15% of its total media budget on paid internet. This is considered a significant amount compared to competitors in this category. Ads were posted on a number of sites including: Yahoo, AOL, CNN, CNBC, MSNBC, Fox Sports, MLB.com, Good Housekeeping, Cosmopolitan, and Digg.
AD AGE 19 Tactical Campaigns for Dunkin Donuts In 2008, Starbucks announced it was simultaneously shutting down all 7,100 U.S. stores for a restraining effort, Dunkin Donuts was quick off the mark, offering 99-cent espressos. On Tax Day, Dunkin Donuts held a special promotion to offer a free doughnut with the purchase of a cup of coffee. May 15, Dunkin Donuts holds its annual Free Iced Coffee Day, giving away 4 million cups in 2008. In June 2008, Dunkin Donuts launched its Bases Loaded campaign, a summer iced-beverage promotion. Iced beverages came with peel-away sticker that revealed a one-time login code for participation in an instant-win game in conjunction with Major League Baseball. AD AGE 20 Tactical Campaigns for McDonalds McDonalds promoted its national coffee promotions with special prices. In 2008, it showed its ice teas in combination with its chicken sandwich and ice coffees over the summer in the buildup to the Olympics.
AD AGE 21 Regional Campaigns McDonalds drives a lot of promotion through outdoor and print buys in a number of markets: Louisville KY, Chicago, Detroit, Kansas City, MO, San Diego, and Seattle. In December 2008, a TV campaign highlighted McCaf Mondays, a promotion that offered customers a free eight- ounce coffee of their choice. Urban radio and TV ads in the Midwest regions feature jingles for McCaf. Caribou Coffee is offering a limited edition mug that features Chicago landmarks such as Lakeshore Drive, Navy Pier, and the Chicago Theatre. (Biz Journals)
AD AGE 22 Regional Campaigns Caribou Coffee turned a Minneapolis bus stop into a toasty oven complete with a ceiling mounted heating element. The objective was to spread the world about caribou Coffees new menu items. This helped them differentiate them form competition. Corporate Eye 23 Situation Analysis 24 History of Market Coffee is the second most commonly traded commodity in the world. Unlike many commodities, shifts in coffee supply and demand are not prone to price changes A coffee tree can provide enough coffee beans to fill a one-pound ground coffee during each growing season. Coffee beans are the seeds of cherry-sized berried, the fruit of the coffee tree. It takes 3 to 5 years after planting a coffee tree before it can produce marketable coffee beans. The bulk of world coffee production comes from the tropical highlands of the Western Hemisphere and in the low, hot areas of Africa and Asia. South and Central America produce the majority of coffee traded in the world commerce. The worlds major coffee producers are Brazil, Vietnam, Colombia, and Indonesia. http://www.tradertech.com/information/coffeetrading.asp 25 History of Market The United States is the worlds largest importer of coffee: Kraft, Nestl, Procter & Gamble, and Sara Lee are the major roaster companies that account for about 50% of all annual production of coffee. Demand of coffee is price inelastic: when coffee prices rise, people do not reduce their coffee consumption. U.S. coffee consumption tends to rise in the winter.
http://www.tradertech.com/information/coffeetrading.asp 26 Market Share 27 Market Share 28 Market Starbucks built itself on being the worlds most powerful and recognizable brands of high quality coffee and the unique Starbucks Experience. They were the first to revolutionize the coffeehouse industry by marketing expensive, high-quality coffee as well as a third place between work and home for customers to go and escape the chaos of daily life. As of 2011, Starbucks has a 32.6% market share a good portion of its industry. Starbucks currently has over 11,500 stores in the United States alone.
http://www.wikinvest.com/stock/Starbucks_(SBUX) 29 Competition McDonalds introduced the McCafe to select stores, where customers can purchase espressos and cappuccinos priced in the $2-4 range. In response, Starbucks teamed up with Burger King and began selling Starbucks Seattle Best Coffee in about 7,250 U.S. outlets selling for $1-$2.79 replacing Burger Kings BK Joe Brew. Dunkin Donuts is another major competitor, with nearly 5,000 stores in the U,S. overlapping with Starbucks but their customer experience is more coffee-to-go model rather than the third place to work and relax model.
http://www.wikinvest.com/stock/Starbucks_(SBUX) 30 Pricing Prices for a cup of Starbucks coffee vary from state to state here are the prices for some of the big cities: http://online.wsj.com/article/SB123413848760761577.html 31 SWOT Analysis Internal factors External factors Strengths Weaknesses Opportunities Threats
Strengths Starbucks is seen as the biggest and best in the business- Highly regarded coffee shop Starbucks has a natural edge over its lesserknown competitors in that people already associate it with a high quality and popular experience With high amount of locations allows them to reach a larger market. Especially when the locations are in big cities. Drive-Thru Stores Also, new products quickly across a large demographic and ensures a large exposure of clientele to prevent new 7 entrants from gaining market share Its goal is to become a third place within its consumers lives. - Offers free wifi connection - Comfortable ambiance
33 Brand Image Focuses on consistency in delivering positive consumer experience stresses the point about consumer visits to its cafes being an experience Four store designsone for each of the four stages of coffee making: growing, roasting, brewing, and aromaeach with its own color combinations, lighting scheme, and component materials They create a consistent, inviting, stimulating environment that evokes the passion for coffee Every barista hired for a retail job in a Starbucks store received at least 24 hours training in the first two to four weeks. The training included classes on coffee history, drink preparation, coffee knowledge (four hours), customer service (four hours), and retail skills, plus a four-hour workshop called "Brewing the Perfect Cup. Quality and keeping all aspects consist is of main concern EX: Customers who order one pound of beans must be given exactly thatnot .995 pounds or 1.1 pounds; never let coffee sit in the pot more than 20 minutes; always compensate dissatisfied customers with a Starbucks coupon that entitles them to a free drink.
Source: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html http://www.scribd.com/doc/50040066/Analysis-of-Starbucks-and-its-International-Strategy-2011 34 Unique Strategy To capture key locations and open stores in close proximity to each other is unique strategy for Starbucks ensures that franchises that dont meet set achievements are closed down Clustering its stores in one area helped Starbucks quickly achieve market dominance. With over 20 million regular customers per week Spends less than 1% of its annual revenues on advertising- Starbucks strategy relies on word of mouth advertising. Engaging in smart joint ventures with the right companies: -Pepsi-Cola Co. - New products: Hot sandwiches, new drinks, coffee liqueurs Source: http://www.evancarmichael.com/Other/612/Starbucks-Strategy.html 35 Weaknesses Questions to consider: Where could Starbucks improve? What ideas are badly ? What should Starbucks avoid? Entire business rests on the coffee industry whereas other competitors, such as Dunkin Donuts, have investments in a variety of industries. Strong presence in the United States of America with more than three quarters of their cafes located in the home market Achieve a balanced portfolio by reaching additional worldwide consumers Over-saturation of the market High price Competition with other low priced brands Still Starbucks
Source: www.shahzadtc.com/pdf/SWOTTOWS.doc
36 Weaknesses Customer standards: In Israel, Starbucks has had a hard time taking off because it wont maintain kosher standards. Refuses to guarantee that milk, beverages, and baked goods sold in the companys stores do not contain any genetically-modified ingredients. Financials: Increased competition- General , small coffee shops and large corporations Customers trading down shifting to competitors with lower priced products Declines in general consumer demand for specialty coffee products Increased Costs: High quality milk Arabica coffee Labor costs such as increased health care costs, general market wage levels and workers compensation New Store openings- construction
Source: http://realswotanalysis.blogspot.com/2011/02/starbucks-swot-analysis-and- strategy.html Source: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual 37 Opportunities New Market Opportunities Internationally New Products: Health drinks Organic drinks Energy drinks Kid focused drinks More bottled drinks sold in stores- Expand on distribution Form partnerships with other coffee companies- widen market U.S. job creation- Accept donations at CreateJobsforUSA.org and Starbucks cafes in the United States
38 Threats The Threat of New Entry : McDonald's came into direct competition with Starbucks when it upgraded its coffee in 2006 As a result, the average number of customers visiting a Starbucks store declined from an estimated 460 in 2005 to just above 400 in 2007 With the launch of McCafe in 2008, the competition between the two chains intensified further. Smaller privately owned coffee houses Source: http://www.thestreet.com/story/10781552/cheap-coffee-starbucks-vs-mcdonalds.html 39 Threats Bargaining Power of Buyers: Force of the buyers bargaining power is proportional to the ability of buyers to force down prices differentiation involved in the specialty coffee industry and the lack of differentiation in the basic coffee industry Image Threat: Anti-Starbucks Groups: National Gun Victims Action Council (NGAC) Unions Petition for Good Jobs at Starbucks Increased pay
Source: http://coe.brown.edu/documents/StarbucksaStrategicAnalysis_R.Larson_honors_2008.p df Source: http://www.starbucksunion.org/ 40 Distribution Channel Starbucks.com 41 Chain of Supply 42 Chain of Supply Starbucks is involved in the source of bean all the way down to the brewing of the coffee Planning involves everything from raw materials to manufacturing to retail markets Coffee department sorts the coffee to get the best beans available All products used in all processes revolve around sustainability Starbucks.com 43 Background Information Starbucks is involved in every process starting with the growing of beans all the way down to brewing the coffee for the consumer Everything they put into their work comes from their own passions and inspirations
Starbucks.com 44 Plantation All coffee must meet Starbucks standards of high quality Starbucks organic coffee is grown using methods and materials that have a lower impact on the environment. Starbucks bought 269 million pounds of coffee in fiscal 2010. Some 84% of that 226 million pounds worth from C.A.F.E. Practicesapproved suppliers. Starbucks.com 45 Plantation to Manufacturing Senior supply chain planning manager Kimberly A. production planning across five roasting plants and multiple contract-manufacturing facilities. Starbucks currently gets its coffee from Mexico, Guatemala, and Colombia.
Starbucks.com 46 Manufacturing to Store Starbucks makes more then 70,000 deliveries outbound a week to retail stores Products being delivered include coffee, teas, ice creams, treats and food Their 5 manufacturing plants then ship to over 16,000 stores world wide Starbucks provides 5 different forms of their coffee (Whole bean, Ground, VIA, K-Cups, and Pre made filters)
Starbucks.com 47 Retailers to Consumers There are currently over 16,000 retail stores world wide serving Starbucks coffee. It happens millions of times each week a customer receives a drink from a Starbucks barista but each interaction is unique. With every cup, Starbucks strives to bring both their heritage and an exceptional experience to life. Starbucks.com 48 70s 1971- Starbucks opens first store in Seattles Pike Place Market.` 80s 1982-Howard Schultz joins Starbucks as director of retail operations and marketing. Starbucks begins providing coffee to fine restaurants and espresso bars 1983-Developed coffeehouse in Seattle based on Cafes in Italy. 1984- First Starbucks caf late served 1987- expanded to 17 stores 90s 1995- Beginning of the Frappes- total stores 677 1997- Starbucks Foundation starts 1998- Tazo tea company is aquired 1999- China, Kuwait, Lebanon and South Korea History
2000s 2000- Howard Schultz transitions to chairman and chief global strategist 2001- Introduces the Starbucks Card, an innovative storedvalue card for customers to use and reload. 2002- Starts selling Fairtrade certified coffee in the countries where Starbucks does business. 2002- Establishes Starbucks Coffee Trading Company (SCTC)
2000s cont. 2003- Seattles Best Coffee and Torrefazione Italia coffee brands are aquired 2004- 8,569 Stores 2005- Orin Smith retires as Starbucks president and chief executive officer. Jim Donald promoted to president and chief executive officer 2008- Eliminates all artificial trans fat and makes 2 percent milk the new standard for espresso beverages in all U.S. stores Present Day 2010- Expands digital offerings for customers with free unlimited WiFi, Starbucks Digital Network in U.S. stores 16,858 Stores 2012- Becomes the worlds largest buyer of Fair Trade coffee
Advertising and Media Analysis 51 Starbucks Advertising Starbucks company chooses to focus on the customers in-store experience versus producing commercials for the masses Executives feel that improving the in-store experience will be more effective than having advertisements and commercials for Starbucks via mass media The company encourages the promotion of their stores as another home to the consumer This is done by providing a comfortable chairs for the customers to relax in, relaxing music, and outlets for laptops 52 Starbucks Advertising Starbucks depends on word-of-mouth advertising through this third home which had proved greater success than actual commercials Starbucks aims to cultivate brand versus traditional advertising As stated by executive, Once youve got a brand consumers love, they are going to increase their store patronage. Starbucks has also done advertising more efficiently Starbucks has advertised more efficiently by spreading all over social media, and mobile payments Starbucks advertising agencies include Omnicoms Goodby Silverstein and Partners and BBDO Worldwide 53 Starbucks Advertising The few commercials which Starbucks had created were quite successful One commercial featured a character drinking a double shot drink in the morning before going to work The band Survivor is in the background singing Eye of the Tiger while character is drinking Another commercial has a character named Stacey who takes a break at work to drink a Frappuccino beverage 54 Starbucks Advertising Starbucks created a joint venture with Pepsi-Cola which had driven up company sales 26 percent of viewers had admitted to admire the equality of men and women possessed in the Starbucks commercials Though their commercials were a success, Starbucks executives still depend on the customers first hand experience by creating a third home coffee shop Starbucks wants to continue their marketing and advertising efforts in this unique way These commercials were aired during CWs Gossip Girl Starbucks had partnered with the CW in 2010 for an online contest. This online contest was to show ingredients for the Frappuccino beverage, and transitions and music into one commercial The winning online ad through this contest would be aired during the Gossip Girl season finale
55 Starbucks Advertising The Starbucks company focuses on word-of-mouth advertising not only through a third home experience, but also through providing quality products and services Starbucks has a slogan Uniquely Starbucks which has played a large part in the companys success The uniqueness of customers experience at Starbucks results in the word-of-mouth advertising with their customers 56 Starbucks Advertising Their premium products with its rich taste and aroma also results in the word-of-mouth which the company depends on primarily Their Perfect Cup of Coffee allows Starbucks to emphasize on product quality which allows it to advertise differently than most businesses Viral marketing also plays a huge role in their advertising campaigns and word-of-mouth advertising 57 Starbucks Social Media Starbucks has a social media marketing strategy, as well Their social media has created an online community with the Starbucks brand Starbucks is part of many social media sites, such as Facebook, Twitter On the company's Facebook and Twitter page, consumers are able to express their opinions about the company through online blogs The company is able to join consumers during blog conversations Discussions via blogs are another word for new media 58 Starbucks Advertisements On May 3 rd , 2009 Starbucks had launched a long term, multi channel campaign. Its goal was to emphasize the unique experience, exceptional coffee, and the brands quality value 59 Starbucks Ad Campaign When Starbucks had created the new ad campaign in 2009, it had wanted to target a whole new generation of coffee drinkers Starbucks had put those advertisements, on the previous page in six major cities, New York and LA included Starbucks had further sought to spread this new message through social media Consumers had to hunt for these posters all around the cities. Once they had found any one of these posters, they had to post them on Twitter Customers would also try to find the first photos of Starbucks adorned for the holidays with red and green. These customers would than post the photos on Flickr 60 Starbucks Ad Campaign These ads were placed in upscale magazines, such as New York, the New Yorker, In style, and Vogue This was the first time which Starbucks had performed traditional advertising and ignored their word-of-mouth advertising Another social media campaign included store employees submitting headlines for future Starbucks advertisements Employees would also post YouTube videos talking about their experiences working at Starbucks On the Saturday before the 2008 election, the company had sponsored 60 second commercials on Saturday Night Live These commercials had advertised a coffee giveaway on election day This video had caused Starbucks to have more followers on Twitter 61 Starbucks Competitors One of Starbucks major competitors in this ad campaign was McDonalds line of McCafe coffee drinks McDonalds was known to spend more money on media, such as television, radio, print, billboards, and interactive web ads Starbucks had never lost coffee drinkers to McDonalds line of McCafe McDonalds sells its own version of Frappuccino, and competes with Starbucks with breakfast oatmeal, fruit salads, and smoothies
62 Starbucks Advertisements Starbucks creates advertisements with a unique content The backgrounds are supposed to resemble a coffee sack, with large and bold headlines promoting the brands qualities The ads which Starbucks had placed in newspapers explain how Starbucks chooses only the best 3 percent of beans for their coffee The ads also emphasize how they roast the beans until they pop twice to ensure quality taste
63 Starbucks Ad campaigns Another ad campaign for Starbucks was for the Frappuccino beverage. Starbucks had launched two campaigns at the same time in 2010 Via Instant Coffee Frappuccino drinks Frappuccino campaign had emphasized Customization for the drink
64 Starbucks Mobile Advertising Campaign In 2011, Starbucks had run a Mobile ad campaign to increase downloads of its mobile applications. The ads were run by Flixster Iphone Applications. When consumers tap on the banner, Pay Faster, Sip Slower, they are directed to a optimized mobile page this mobile page shows a picture of Starbucks applications mobile payments Starbucks generates mobile ads to maintain the mobile aspect of their advertising strategy. 65 Starbucks Mobile Advertising Campaign Starbucks had also maintained its mobile strategy through a mobile campaign which allows consumers to chose their ideal summer beverage Starbucks had run mobile banners ads through music site, Pandora IPhone application The banner ads read Handcrafted Refreshment is Waiting
66 When consumers tap on the ad, they are directed to swipe this screen: Consumers can choose a summer drink once they swipe the icy screen. Such drinks include iced coffee with milk or Tazo shaken iced passion tea lemonade.
67 Starbucks Advertising Starbucks had also ran a rich media ad campaign on I pad sites on VH1 and MTV Campaign is designated to drive interaction with Apple users This campaign is known as the Starbucks, VH1, and MTV Celtra for tablet-optimized rich media MTV and VH1 were the first media brands to create touch optimized browser experience Starbucks was seeking to target the affluent, early adopter IPAD users
68 Starbucks Advertising They also seek to target the youth audience of MTV, as well as VH1s older audience Objectives of ad campaign on MTV and Vh1 IPAD sites was to maintain brand awareness and seek out purchase behavior Starbucks put a banner on the MTV and VH1 sites. The banner had asked consumers, What is your Starbucks signature. Tap to Find Out. Consumers are then led to a screen where they can learn and chose a specific Starbucks beverage.
69 Starbucks Logo Timeline Throughout the years, Starbucks had improved and updated its brand logo
70 Starbucks Billboards In 2008, Starbucks had put up a number of billboards in Seattle 71 Target Audience Analysis 72 73 DMA Allocation Sacramento Los Angelese Phoenix Dallas Houston Chicago Detroit Miami Atlanta Washington D.C. Philladelphia New York Tampa Boston Seattle Minneapolis San Francisco Cleveland Denver Orlando Media Plan 74 Media Objectives Reinforce brand image in consumers mind by placing advertisements in television shows, magazines, and top internet sites Develop a media strategy that involves advertising Starbucks specialty coffees in both traditional and non-traditional media outlets Increase Starbucks Profitability 75 Magazine Tactics
76 Newspaper Tactics
77 Television Tactics
78 Out of Home Tactics
79 Internet Tactics
80 Promotional Tactics On college campus have a free specialty coffee day 8am-Noon in the top 20 DMAs. This will draw college students into Starbucks for their free drink in return drawing them to make more purchases in store. Sponsoring one concert featuring the stars of the television show The Voice held in Los Angeles. Starbucks will hand out free drinks during the concert. 81 Media Strategies To build the brand in mediums which will involve consumers more actively in the process of marketing Starbucks To extend amount of mediums to portray brand quality To gain maximum exposure to result in gain in revenue To build brand awareness to guarantee subsequent purchase of product The media plan will generate interest by connecting to the public
Budget Allocation
83 Flow Chart
84 Reach and Frequency
85 Recommended Media Selection and Rationale 86 Magazines
87 Newspapers
88 Television
89 Out of Home
90 Internet
91 Promotions
92 Other Tactics Considered But Not Recommended Internet: use of more social media outlets such as YouTube, Twitter, Four Square.
93 Alternative Plans with Fluctuation in Budget
94 Decision Dates
95 Client Questions Responses
96 Competitive Analysis Works Cited AD Age: http://adage.com/article/mediaworks/comparing-coffee-media- strategies-dunkin-mcdonald-s/134095/ AD Week: http://www.adweek.com/news/advertising-branding/caribou- coffee-names-cm-new-ad-agency-105166 Corporate Eye: http://www.corporate-eye.com/blog/2011/01/caribou-coffee- offers-something-extra-in-ambient-advertising/ Dunkin Donuts Press: http://news.dunkindonuts.com/press_kits.cfm?presskit_id=2 McCafee: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf SEO Analysis: http://sites.google.com/site/seoanalysisnow/case-study-caribou- coffee-vs-starbucks
97 Advertising and Media Analysis Work Cited Evan Carmichael. http://www.evancarmichael.com/Other/612/Starbucks- Commercials.html Digital Commons. http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1005&c ontext=busi_fac_pubs Sose Marketing. http://www.sosemarketing.com/2011/03/29/starbuck%E2%80%99s- success-is-its-word-of-mouthsocial-mediaviral-marketing-strategy/ Starbucks News. http://news.starbucks.com/news/coffee+value+values+campaign.htm New York Times. http://www.nytimes.com/2009/05/19/business/media/19starbux.html 98 Advertising and Media Analysis Work Cited PopSop. http://popsop.com/34575 Mobile Marketer. http://www.mobilemarketer.com/cms/news/advertising/11299.ht ml New York Times. http://www.nytimes.com/2009/05/19/business/media/19starbux.ht ml?_r=1&partner=rss&emc=rss AD Week. http://www.adweek.com/adfreak/starbucks-logo- timeline-future-redesigns-11746 Ad Age. http://adage.com/article/news/sales-starbucks-rolls-ad- campaigns/143747/