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Starbucks - Competitive Analysis
 

Starbucks - Competitive Analysis

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A competitive analysis created in helping our group to determine how and where we will place our media selection.

A competitive analysis created in helping our group to determine how and where we will place our media selection.

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  • Hi,
    This is an incredible detailed analysis of how Starbucks faces competition from other major retailers serving coffee on a national and/or global level.
    Despite all of those companies aiming for the same market segment (more or less), there are differences in terms of other marketing factors, such as demographics, spending power and income and consumption behavior. Based on those factors, Starbucks will be able to keep on selling 'overpriced' drinks on a mass-production scale.
    This another interesting source on the subjec:
    How Starbucks built its competitive advantage-http://informationshelte.hubpages.com/hub/How-Starbucks-built-its-competitive-advantage
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    Starbucks - Competitive Analysis Starbucks - Competitive Analysis Presentation Transcript

    • CompetitiveAnalysisBy: Stacee Becker, Marisa Del Priore, Donavan Farrish, KathleenKielpinski, 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 Starbuck‘s primary product? Can advertising significantly help maintain Starbuck‘s 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 Wendy‘s 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.  It‘s 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 McDonald‘s spent about $887.8 million in the United States only in 2010.  Starbuck‘s has worked with agencies such as Omnicom‘s Goodby Silverstein & Partners.“Breakfast is the final frontier of growth in this country and coffee is AD Age growing as well.” David Palmer UBS restaurant and packaged food analyst. 4
    • Major CompetitorsDunkin DonutsMcDonald‘sCaribou Coffee 5
    • Store Locator Starbucks Dunkin‘ Donuts  Has 12,500  Has 6,700 coffee coffee shops in shops in the the United States United States McDonald‘s McCafé Caribou Coffee  Has over 31,000  Has 415 coffee shops in 16 States restaurants World in the United Wide. States 6
    • Starbucks vs. Dunkin‘ Donuts
    • 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 ad‘s 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 Dunkin‘s coffee story) or Spread the Truth (sending an e-card to your friends who drink Starbucks) Weekly traffic to DunkinDonuts.com jumped 61% “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. McDonald‘s McDonald‘s Billboard in Seattle
    • Starbucks vs. McDonalds McDonald‘s has offered breakfast for years, and over the last couple years has been heavily marketing its McCafé. Lines of coffee drinks all while continually rolling out new drinks of both the coffee and non-coffee variety, such as smoothies and frappes, McDonald‘s version of the Starbucks frappuccinos. Starbucks created their frappuccino for the summer season while McDonald‘s introduced their frozen strawberry lemonade, a non-coffee beverage under McCafé. AD AGE 11
    • Starbucks vs. McDonalds Like Dunkin‘ Donuts, McDonald‘s took a stab at Starbucks during TV ads as well. The two television ads were titled ―Intellectuals‖ and ―Hipsters.‖ Along with a TV ad McDonald‘s set up a website unsnobbycoffee.comto promote its Washington States McCafé 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 $30,000,000 $25,000,000 $20,000,000 $15,000,000 Caribou Coffee $10,000,000 Starbucks Coffee Starbucks Coffee Shops $5,000,000 $0 16
    • Media Spending  Television Campaigns  Web Campaigns  Tactical Campaigns (Giveaways and Promotions)  Regional Campaigns 17
    • Television Campaigns Dunkin‘ Donuts outspent McDonald‘s 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. McDonald‘s spent 97% of its traditional media budget on spot TV to support its McCafé 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, CN BC, MSNBC, Fox Sports, MLB.com, Goo d Housekeeping, Cosm opolitan, 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 McDonald‘s McDonald‘s 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 McDonald‘s 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 ―McCafé 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 McCafé. Caribou Coffee is offering a limited edition mug that features Chicago landmark‘s 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 Coffee‘s 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 world‘s 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 world‘s 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 world‘s 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 McDonald‘s 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 King‘s 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.htm 31
    •  Strengths Internal factors Weaknesses Opportunities External Threats factorsSWOT Analysis
    • Strengths•Starbucks is seen as the biggest and best in the business-Highly regarded coffee shop•Starbucks has a natural edge over its lesser‐knowncompetitors in that people already associate it with a highquality and popular experience•With high amount of locations allows them to reach a largermarket. Especially when the locations are in big cities. •Drive-Thru Stores•Also, new products quickly across a large demographicand ensures a large exposure of clientele to prevent new 7entrants from gaining market share•Its goal is to become a ‗third place‘ within its consumerslives. - Offers free ‗wifi‘ connection- Comfortable ambiance Source: http://www.starbucks.com/assets/company-profile-feb10.pdf 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 designs—one for each of the four stages of coffee making: growing, roasting, brewing, and aroma—each 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 that—not .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 StrategyTo capture key locations and open stores in close proximity to each other is unique strategy for Starbucks ensures that franchises that don‘t 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 won‘t maintain kosher standards.  Refuses to guarantee that milk, beverages, and baked goods sold in the company‘s 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 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 Sources: http://www.reuters.com/article/2011/10/03/us-starbucks-idUSTRE7921M320111003 38
    • Threats The Threat of New Entry : McDonalds 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 buyer‘s 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. Practices–approved 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
    • History 80‘s 90‘s70‘s • 1982-Howard Schultz joins • 1995- Beginning of the Starbucks as director of Frappes- total stores• 1971- Starbucks retail operations and 677 marketing. Starbucks opens first store begins providing coffee • 1997- Starbucks in Seattle‘s Pike to fine restaurants and Foundation starts espresso bars • 1998- Tazo tea Place Market.` • 1983-Developed company is aquired coffeehouse in Seattle • 1999- based on Cafes in Italy. China, Kuwait, Lebano • 1984- First Starbucks café late served n and South Korea • 1987- expanded to 17 stores
    • 2000‘s 2000‘s cont.2000- Howard Schultz 2003- Seattle‘s Best Coffee Present Daytransitions to chairman andchief global strategist and Torrefazione Italia 2010- Expands digital coffee brands are aquired2001- Introduces the offerings for customersStarbucks Card, an 2004- 8,569 Stores with free unlimitedinnovative stored‐value 2005- Orin Smith retires as Wi‐Fi, Starbucks Digitalcard for customers to use Starbucks president and Network in U.S. storesand reload. chief executive officer. Jim Donald promoted to 16,858 Stores2002- Starts selling Fairtradecertified coffee in the president and chief 2012- Becomes thecountries where Starbucks executive officer world‘s largest buyer ofdoes business. 2008- Eliminates all artificial Fair Trade coffee2002- Establishes Starbucks trans fat and makes 2Coffee Trading Company percent milk the new(SCTC) standard for espresso beverages in all U.S. stores
    • 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 you‘ve 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 Omnicom‘s ―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 CW‘s ―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 company‘s 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 companys 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 AdvertisementsOn May 3rd, 2009 Starbucks had launched a long term, multichannel campaign. It‘s goal was to emphasize the uniqueexperience, exceptional coffee, and the brand‘s 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 ad‘s 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 McDonald‘s 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 McDonald‘s line of McCafe  McDonald‘s 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 ad‘s which Starbucks had placed in newspapers explain how Starbucks chooses only the best 3 percent of beans for their coffee The ad‘s 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 drinksFrappuccino campaignhad emphasizedCustomization for the drink 64
    • Starbucks Mobile AdvertisingCampaign In 2011, Starbucks had run a Mobile ad campaign to increase downloads of its mobile applications. The ad‘s were run by FlixsterIphone 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 ad‘s to maintain the mobile aspect of their advertising strategy. 65
    • Starbucks Mobile AdvertisingCampaign Starbucks had also maintained it‘s 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 ad‘s 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 VH1‘s 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
    • Seattle Boston Minneapolis Cleveland Detroit New York Philladelphia Chicago Washington D.C. Sacramento DenverSan Francisco Los Angelese Atlanta Phoenix Dallas Orlando Houston Tampa Miami DMA Allocation 73
    • Media Plan 74
    • Media Objectives  Reinforce brand image in consumer‘s 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 Starbuck‘s 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 Selectionand Rationale 86
    • Magazines 87
    • Newspapers 88
    • Television 89
    • Out of Home 90
    • Internet 91
    • Promotions 92
    • Other Tactics Considered But NotRecommended Internet: use of more social media outlets such as YouTube, Twitter, Four Square. 93
    • Alternative Plans with Fluctuation inBudget 94
    • Decision Dates 95
    • Client Questions Responses 96
    • Competitive Analysis Works CitedAD 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-105166Corporate 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=2McCafee: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdfSEO Analysis: http://sites.google.com/site/seoanalysisnow/case-study-caribou-coffee-vs-starbucks 97
    • Advertising and Media AnalysisWork CitedEvan Carmichael.http://www.evancarmichael.com/Other/612/Starbucks-Commercials.htmlDigital Commons.http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1005&context=busi_fac_pubsSose 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.htmNew York Times.http://www.nytimes.com/2009/05/19/business/media/19starbux.html 98
    • Advertising and Media AnalysisWork CitedPopSop. http://popsop.com/34575Mobile Marketer.http://www.mobilemarketer.com/cms/news/advertising/11299.htmlNew York Times.http://www.nytimes.com/2009/05/19/business/media/19starbux.html?_r=1&partner=rss&emc=rssAD Week. http://www.adweek.com/adfreak/starbucks-logo-timeline-future-redesigns-11746Ad Age. http://adage.com/article/news/sales-starbucks-rolls-ad- 99