http://www.strategyone.net/documents/10-07-08PRWeekAwardResearchandPlanningLC

Research/Planning Traditional Media Analysis Ongoing traditional media analysis showed that Starbucks was being included in feature stories alongside Quick-Service Restaurant (QSR) such as McDonald’s and Dunkin’ Donuts, illustrating that Starbucks was losing its image as the premiere purveyor of quality coffee. Measurement: Competitive Insights Q2 2008 Competitive Analysis Additionally, McDonald’s and Dunkin’ Donuts each increased competition within the premium coffee market during early 2008. McDonald’s McCafe announcement generated the brand’s highest volume of coverage during early 2008. Dunkin’ Donuts also competed with Starbucks for media attention at the end of February, with a $1 latte promotion. This highlighted the need for Starbucks to differentiate itself from competitors by promoting its rich coffee heritage. Measurement: Competitive Insights Q2 2008 Competitive Analysis Message analysis of the Skinny Latte promotion in January showed that the launch generated 100% message penetration within national and large local media outlets. This was due to the succinct, factual nature of the Skinny Latte messages, which resonated well with media. Accordingly, PPR messages were created in a succinct, factual manner. Measurement: Competitive Insights January 2008 Media Scorecard Social Media Analysis Analysis of consumer discussion through social media (blogs, forums, and other consumer-generated Web sites) showed that drip coffee created the highest volume of conversation for Starbucks during 2007. This suggested that a new coffee offering would resonate well within consumer-generated conversation. Measurement: Edelman Digital Starbucks Online Conversation Research, 2007 The topical and emotional center for Starbucks customers during 2007 (via social media analysis) was primarily its drink offerings, suggesting that customers inherently associate the core of the brand with its coffee. Measurement: Edelman Digital Starbucks Online Conversation Research, 2007 Social media analysis found that Starbucks customers can be divided into two major groups: Connoisseurs and Masses. Both groups view the coffee experience as positive and sensory, and demand a coffeehouse experience to fulfill that experience. Measurement: Edelman Digital Starbucks Online Conversation Research, 2007 Though Starbucks fulfills the sensory and/or experiential needs of coffee consumers, customers are increasingly migrating to the utilitarian values and offerings of competing QSRs such as McDonald’s and Dunkin’ Donuts. This highlighted the need for Starbucks to launch an “everyday” brew to appeal to the utilitarian values of customers. Measurement: Edelman Digital Starbucks Online Conversation Research, 2007 Primary Consumer Analysis Consumer surveys during January and February revealed that on average 73% of Starbucks consumers received their information about Starbucks from television or newspapers. Measurement: StrategyOne Starbucks Information Flow Audits, January and February 2008 According to the Edelman/StrategyOne Trust Barometer 2008, Financial or Industry Analysts are the second-most trusted source of information in the US; 56% of respondents consider analysts to be credible spokespeople. Consumers’ trust in analysts validated the strategy to leverage the shareholders’ meeting as a launch platform, in order to engage the business media. Measurement: Edelman Trust Barometer, 2008