Starbucks Media Plan

Starbucks Coffee

Media Plan

Luke Crawford E-­‐‑Mail: luke.crawford@loop.colum.edu

www.starbucks.com

12/4/13

Starbucks Coffee

Media Plan

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Situation Analysis Company Description: Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 60 countries. Formed in 1985, Starbucks Corporation’s common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX.” Starbucks purchases and roasts high-­‐‑quality coffees to sell, along with handcrafted coffee, tea and other beverages along with a variety of fresh food items, through company-­‐‑operated stores. We also sell a variety of coffee and tea products and license our trademarks through other channels such as licensed stores, grocery and national foodservice accounts. In addition to our flagship Starbucks brand, our portfolio also includes Tazo® Tea, Seattle’s Best Coffee®, Starbucks VIA® Ready Brew, Starbucks RefreshersTM beverages, Evolution FreshTM, La Boulange bakery brand and the VerismoTM System by Starbucks.

-­‐‑Starbucks Annual Report (2012)

Mission Statement: To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.

-­‐‑Starbucks Annual Report (2012)

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Media Plan

Target Audience -­‐‑ United States Market (MRI+ Data) •

Adults, 18-­‐‑24 (156)

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Women, 18-­‐‑34 (149)

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Graduated College Plus (159)

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Occupation: Professional & Related Occupations (161)

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HHI: $150,000 or more (160)

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Very status-­‐‑conscious

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Values the Starbucks brand (Aesthetic Study)

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Values friendly interaction with strangers (Aesthetic Study)

Market Information -­‐‑ Worldwide •

$100,000,000,000 industry

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Coffee is currently grown in 50 countries

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67% of coffee comes from The Americas

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Over ½ of American population over 18 years-­‐‑old drink coffee daily

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Coffee is the source of 75% of all Americans’ caffeine intake

Competitors – United States Market •

Top Sales competitor: o

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Dunkin Donuts

Other leading competitors: o

McDonald’s

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Nestlé

Marketing Objective •

Increase sales from $2,800,000,000 to $3,000,000,000 for Q2 o

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January, March, April are low

Continue maintaining brand strength and $3,000,000,000 in Q1, Q3, Q4

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Media Objectives Goal: •

Maintain Unique Visitors of 2,500,000 per month Online.

(Unique Visitors data from Compete.com) •

Continue to maintain strong media campaigns and brand image

Starbucks Coffee has an amazing online presence.

As of January 29th, 2013, Starbucks was ranked as the company with the 8th largest following on Facebook. (Ignitesocialmedia.com) Maintaining their yearly seasonal strategies on Social Media is imperative in maintaining their brand strength.

Current campaign: “Share Joy”

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Media Plan

Geography Focus •

Western United States (MRI: 157)

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Metropolitan and Surrounding Areas (Aethetic Study/Ethnography)

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Cities with most Starbucks per capita o

Seattle, WA [9 / 100,000 people]

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Denver, CO [7 / 100,000 people]

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Portland, OR [7 / 100,000 people]

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Los Angeles, CA [6 / 100,000 people]

o

Phoenix, AZ [4 / 100,000 people]

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Chicago, IL [3 / 100,000 people]

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New York City, NY [2 / 100,000 people]

Seasonality Focus •

January – April: Lowest sales

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July & August: “Wellness Months”

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October – December: Holidays “Share Joy” / “Let’s Merry” -­‐‑ To assist with January sales.

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Media Strategies Lowest Sales •

Heavy OOH to spur interest, and Print Ad to provide a more detailed message.

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Store saturation will benefit from OOH by becoming second nature.

Wellness Month •

Use of TV advertising to remain consistent with historical data.

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OOH ad used to spur interest in Chicago and New York and aid in retention.

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Magazine ad used to elaborate with more information, and to aid in retention.

Holiday •

Use of Magazines to spur interest, and the continuous use of online ads will broaden reach during holiday season.

Interactive •

Consistent 3,000,000 imp goal for every month to maintain current strategy and

• • •

500,000 paid post boosts per month on Facebook to keep consumers talking.

presence and to aid in retention with other forms of media throughout the year.

2,500,000 paid for insights on www.starbucks.com On-­‐‑Demand Streaming ads will run on Hulu and/or Netflix according to programs of demographic (Adult, 18-­‐‑34) for the last and first weeks of the months struggling for sales to hopefully gain more top-­‐‑of-­‐‑mind awareness.

OOH •

Bulletins in the 5 cities with the highest concentration of Starbucks Stores (80/20)

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30-­‐‑Sheets in the cities with high volume of commuters.

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Parking more concentrated in cities with high volume of commuters. LA is the highest due to concentration of drivers.

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Branded Trains were used in the cities with high volume of target market taking public transportation. Chicago has 4 trains, whereas New York only has 3 for these reasons: o

Elevated trains get more views per route in downtown area.

o

Chicago has more Starbucks locations than New York per 100,000 consumers.

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Media Plan

Media Mix • OOH o 5 Bulletins § Seattle, Denver, Portland, Phoenix, and Los Angeles o 30-­‐‑Sheets § Seattle (1), Denver(2), Portland(2), Phoenix(2), Los Angeles(2), and Chicago(1) o Parking Lot Displays § Seattle(1), Denver(2), Portland(2), Phoenix(2), Los Angeles(3), Chicago(1). o Branded Trains § Chicago(4), New York City(3) • Print (Magazines) o

Runner’s World (210) §

1 page ad •

o

Sunset (227) §

1 page ad •

§

September – December (4ti)

Real Simple (196) §

½ page ad •

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January – April (4ti)

½ page ad •

o

January – April & August – December (9ti)

January – April (4ti)

Interactive o

o

Online Impressions (3,000,000/mo) §

Facebook (500,000 boosted posts/mo)

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UV on www.starbucks.com (2,500,000 imp/mo)

On-­‐‑Demand Streaming (25 rating points/week) §

Hulu

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Netflix

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Media Plan

• TV o

Daypart, 25 rating points / week, for 8 weeks

§

No channels were supported by MRI+ Data.

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Financial Total Budget ........................ $10,000,000 OOH ................................... $4,097,042.30 Print .................................... $2,640,490.00 Interactive .......................... $1,860,000.00 TV ....................................... $1,400,000.00 Spent ................................... $9,997,532.30

Total Left .................................. $2,467.70

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Sources: •

http://www.mobilemarketer.com/cms/resources/mobilegends-­‐‑ awards/14499.html

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www.mriplus.com

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www.Compete.com

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http://www.hks.harvard.edu/case/3pt/berkovitz.html

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http://www.statemaster.com/graph/lif_sta_sto_percap-­‐‑lifestyle-­‐‑starbucks-­‐‑stores-­‐‑ per-­‐‑capita

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Starbucks Annual Report (2012)

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Starbucks Earning Reports (2010 Q1-­‐‑Q4, 2011 Q1-­‐‑Q4, 2012 Q1-­‐‑Q4)

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www.ignitesocialmedia.com/social-­‐‑media-­‐‑stats/top-­‐‑50-­‐‑branded-­‐‑facebook-­‐‑fan-­‐‑ pages

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http://online.barrons.com/news/articles/SB5000142405311190360110457945124108 3847428

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http://lukeacrawford.wordpress.com/coffee-­‐‑shop-­‐‑aesthetic-­‐‑study/