Starbucks "Note to Self" Campaign


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Starbucks "Note to Self" Campaign

  1. 1. note to self: K a t ie a e lse Ch k s Huk i l l Pa r Kr isten Mar gar He rri ng ton Mo o e t re on r r is e r Ale xa Ha r k R obi n Pa son Patr ic k Ambrosia Ha as Paglen worth every sip.
  2. 2. 3 table of contents pg. 4 executive summary pg. 5 swot analysis pg. 7 consumer analysis pg. 8 consumer profiles pg. 10 positioning statement pg. 11 media flow pg. 12 budget breakdown pg. 13 media strategy pg. 16 traditional media pg. 16 print ads pg. 22 non-traditional media pg. 23 promotions pg. 31 focus group insights pg. 32 return on investment worth every sip.
  3. 3. 4 executive summary For over two decades, Starbucks has been synonymous with premium coffee. Founder of the American coffee house in 1971, Starbucks has since become the largest coffee ser- vice chain in the world; a company involved in every as- pect of the consumer coffee industry from store-bought beans, to ready-to-drink beverages. However, the recent economic downturn has posed a difficult problem for Starbucks. Declining sales have forced the company to close 600 of its stores and halve the number of company-owned stores to be opened 2009. On top of this, McDonalds is introducing its own brand of premium coffee drinks, McLattes, and positioning itself to steal Starbucks customers who are looking to cut back on everyday expenses. The goal of this campaign is to protect Star- bucks’ share of the coffee market from McDonalds by reassuring consumers that its quality is worth its price. The target market is 18-34 year-olds who are newly independent and are looking forward to transitioning into a world where they get to call the shots. These are the types of Starbucks customers most likely to choose another brand of coffee based on its cheaper price. They will be reached through a wide variety of mediums including print, radio, outdoor, Internet, and other non-traditional forms. Displayed through these mediums is the campaign’s “note to self” theme. The execu- tions will provide humorous reminders of how money-saving shortcuts are not always the smartest choices. In these difficult economic times people are easily tempted to take financial shortcuts like switching from Starbucks coffee to a cheaper brand. Whether it’s the man who buys cheap razor blades only to end up bandaging most of his face, or the person whose car is broken down on the side of the road because they are too cheap to buy gas, these examples show how trying to save a dime doesn’t always pay off. Included throughout all these executions is the tagline “Star- bucks: worth every sip,” conveying the idea that every drop of Starbucks coffee is delicious with a quality well worth its price. worth every sip.
  4. 4. 5 SWOT analysis Starbucks as a company has many strengths that differentiate it from the competition. One of its trade- mark strengths is its customer-centric service. Its speed of service creates convenience for on-the-go customers, while the training of Baristas provides a higher quality product and consumer experience. Strengths Starbucks’ numerous locations provide consumers with a uniform product and brand experience in any Starbucks they patronize. Customers are also able to personalize their selection of coffee drinks to their own particular tastes. Starbucks’ other strengths include its market share and brand equity. Starbucks commands an im- pressive 52 percent of coffeehouse sales in the Unites States market. The Starbucks brand, which is a sym- bol of quality coffee, also puts the company at a dis- tinct advantage. Starbucks is in a strong position to retain its share of the market and has the brand rec- ognition and equity to do it. Starbucks weaknesses reflect its rapid rise to suc- cess in the coffee market. Its product line has reached maturity and it has now thoroughly saturated the Weaknesses United States market. The company’s huge expansion in the 1990s and early 2000s led to market cannibal- ization among its locations. Its omnipresence also led to the alienation of potential new consumers, who felt that the quality of Starbucks coffee had diminished with over-commercialization. Starbucks also charges a premium for their coffee and services, which may drive away consumers due to the current state of the economy. Consumers are beginning to perceive the Starbucks brand as preten- tious and snobby. This, coupled with the consumer perception that the quality of the coffee has de- clined, is a large area of concern for Starbucks. worth every sip.
  5. 5. 6 SWOT Analysis Starbucks now has an opportunity to persuade consumers that their coffee has maintained its high Opportunities quality, and that the products and services are worth the premium price. Because Starbucks is known for being America’s original coffeehouse, it has the ability to influence the future of the coffee industry. Starbucks also has potential for growth in the area of corporate social responsibility. In November 2008 it launched its (STARBUCKS) RED campaign, which makes a contribution to the Global Fund each time someone buys a special (STARBUCKS) RED product. This partnership with the Global Fund marks a great opportunity for Starbucks to boost its brand image in 2009 and 2010. Starbucks itself is one of its greatest competitors. Mintel suggests that the chain has oversaturated its market and the recent closing of several hundred franchises is evidence of this. Also, Starbucks sales Threats have suffered in 2008, which has resulted in market share growth for smaller coffeehouse chains and in- dependents. Starbucks has been closing stores while industry competitors like McDonald’s are focusing heavily on growth. Furthermore, the state of the economy is forcing people to cut certain items from their budget. Coffeehouses like Starbucks are tak- ing a big hit because many people consider coffee a luxury item and know that they can brew it at home for a fraction of the price. Another threat lies in the McDonald’s ad campaign that portrays Starbucks as a “snobby” and “expensive” place to get coffee worth every sip.
  6. 6. 7 consumer analysis The typical Starbucks customer is part of the “latte-sipping” professional crowd. The com- pany’s core demographic skews female, as well as from higher earning households. Starbucks patrons who make more than five visits per month are mostly young hipsters and career pro- fessionals. The typical Starbucks customer is on the more affluent end of the spectrum because they are able to absorb the cost and are less likely to turn away for financial reasons. Male patrons are more likely to use Starbucks as a “third place” between home and work. Younger patrons in the 18-24 age range spend more time socializing in coffeehouses, so the Starbucks experience offers added value. Starbucks is seen by most as being part of a lifestyle, instead of merely being a place to get a cup of coffee. target audience Our target market for this campaign will include 18-34 year-old Starbucks coffee drinkers who are in various stages of transitioning into more independent lifestyles. They are economi- cally sensitive and therefore are more susceptible to being drawn to the lower priced coffees at McDonalds. To our target, Starbucks will be a reliable source of quality coffee that they can de- pend on in a world of many choices. We want to stress that Starbucks is an obvious choice that will leave the consumer feeling satisfied with their decision. We have broken our target into two segments, sippers and gulpers: Sippers are new coffee drinkers who are just beginning to build a relationship with the Star- bucks brand. They appreciate quality and variety in their choices but aren’t convinced that Starbucks is worth the price. They are not coffee aficionados, so the coffeehouse “experience” is just as valuable to Sippers as is the coffee itself. When Sippers go to Starbucks they are more likely to experiment with their drink choice instead of consistently ordering the same thing. Gulpers are more experienced coffee drinkers who have a longer history with Starbucks. They are more loyal to Starbucks than Sippers and are less easily swayed by compertitors’ advertising. Gulpers recognize the higher quality of coffee available at Starbucks over that of McDonalds. These customers are not averse to new or different options, but through their years of repeated visits have discovered a customized beverage of their own that they consistently order. worth every sip.
  7. 7. 8 sipper Profile David is a 22-year-old who recently graduated with a busi- ness degree from UNC Chapel Hill. He is confident, indepen- dent and living the single life. He loves music, going to con- certs, hanging with friends and surfing the Internet. He just moved into an apartment in Boston with one of his college friends, and is adjusting to having a full-time job and paying his own rent. He first entered the professional world in July, working an entry-level job at a consulting firm in Boston. David is working hard to create a good name for himself as a young professional and, as a result, he is very image con- scious. Because of David’s age, interests and lifestyle, he is con- stantly bombarded with media clutter. He is relatively easily swayed by advertising messages and has not established many brand loyalties. There is a Starbucks located down the street from David’s apartment, so he has started stopping there almost every morning on his way to work. However, he has occasionally been lured to the McCafe down the road because of it’s lower prices. worth every sip.
  8. 8. 9 gulper profile Lucy is a junior nursing major at the University of Georgia. She is a trendy socialite who loves to spend time with her friends, but she also takes her schoolwork seriously and is dedicated to her studies. Lucy spends a lot of time reading gossip magazines, chatting with friends and surfing the Internet. Lucy has been a coffee addict since high school, and she is rarely seen without some form of caffeine at hand. She is quite loyal to the Starbucks brand, and loves that there is a store located close to the hospital where she volunteers three times a week. Lucy consistently orders the same drink when she goes to Starbucks, and has devel- oped relationships with all of the baristas. She looks forward to seasonal drinks, but most of the time she sticks with the same low-fat, venti iced latte. When it comes to her coffee, Lucy does not like to settle for anything less than Starbucks. She values the experience she has in the store, the quality of the coffee, and what the Starbucks label does for her image. worth every sip.
  9. 9. 10 positioning statement To Sippers and Gulpers, Starbucks is an iconic coffeehouse that has spent years creating a product that guarantees excellence, and consumers can trust it to deliver quality. overall campaign objectives Our objectives are designed to thwart McDonalds’ entry into the coffee market with a na- tional campaign aimed at increasing customer retention and brand loyalty. 1 To incre ase the num ber of peop le who have Star buck s at the top of their evok ed set whe n aske d abou t coff ee over the course of one year by 20%. 2 To incre ase the num ber of Star- buck s cust omers who feel that the value of the Star buck s product and expe rienc e is wort h the price over the course of one year by 25%. 3 To reta in 100% of our current cons umer base and conv ince 8 out of 10 non-loya l coff ee drin kers to choo se Star buck s over McDonalds. worth every sip.
  10. 10. 11 media flow chart worth every sip.
  11. 11. 12 budget breakdown
  12. 12. 13 media strategy Our “Note to Self” campaign will kick off in May 2009, a month after McDonald’s campaign launch, and will run until April 2010.We will use a combination of traditional and non tradi- tional media strategies, with a large focus on new media. Traditional and non traditional media will work together to emphasize an integrated marketing strategy. Sippers and Gulpers take in a wide variety of media and like to interact with and feel connected to brands, therefore, the media choices we have made will allow them to do so. PRINT: Traditi