Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".

1. Starbucks Corporation
2016 Advertising Campaign
“Only the Best Campaign”
Hannah Moore

2. 1
Table of Contents
Introduction……………………………………………………………………………….....Pg. 2
Company/Brand/Product Analysis………………………………………………………...Pg. 2
Consumer Analysis…………………………………………………………………………..Pg. 3
Competition Analysis………………………………………………………………………..Pg. 4
Competition Comparison…………………………………………………………………....Pg. 5
Market Analysis……………………………………………………………………………...Pg. 5
Starbucks Growth in Price per Share……………………………………………………..Pg. 6
SWOT………………………………………………………………………………………...Pg. 6
Issue Identification…………………………………………………………………………..Pg. 7
Campaign Objectives………………………………………………………………………..Pg. 7
Target Audience……………………………………………………………………………...Pg. 7
Positioning…………………………………………………………………………………....Pg. 8
Creative Brief…………………………………………………………………………….…..Pg. 8
Tactics………………………………………………………………………………………...Pg. 9
Media Planning……………………………………………………………………………..Pg. 10
Conclusion…………………………………………………………………………………..Pg. 11
Reference…………………………………………………………………………………....Pg. 11
Starbucks Corporation

3. 2
Introduction
Starbucks is an innovative, high end coffee brand that possesses a unique market position
as not only a place for coffee drinks and pastries, but for casual get-togethers and small business
meetings. In light of economic competition for discretionary income, Starbucks will be
embarking upon an advertising campaign that reinforces existing marketing objectives through
boosting sales via enhanced and restated brand position. The ultimate objective is to increase
sales and maintain the Starbucks brand as a leader of the coffee shop industry.
This objective will be carried out through strategically placed, high coverage ads in an
attempt to reach the highest composition of the target audience possible. The approach will
include a blend of traditional, mass media and direct advertising via social channels. In order to
effectively plan the creation and planning of these advertisements, this plan includes a Situation
Analysis, SWOT Analysis, issue identification, campaign objectives, target audience, brand
position, creative brief, tactics, media planning timeline, and conclusion.
All of these elements are introduced to build a comprehensive and wholesome plan to
most effectively reach the defined target audience and increase brand awareness as well as
enhance brand positioning. This approach will ultimately stimulate the selective demand for the
Starbucks product line, thus increasing sales both short and long term.
Situation Analysis
-Company/Brand/Product Analysis
Starbucks is a premium coffee and pastry outlet that offers unique,
welcoming locations to enjoy its product line. Products offered are seen as status
symbols, and is primarily evidenced by the outward display of the logo, which
represents the strength of the brand. Numerous coffee products and teas, both hot
and cold, are offered along with a variety of snack in conjunction with a small line
of coffee related merchandise.
The company was started in Seattle over 40 years ago, and is modeled
after the Italian coffee house format. As stated, the brand prides itself as premium
in both its product line and atmosphere, choosing quality music in line with the
premium product line to build a premium atmosphere. Customers reportedly
gather at Starbucks as a neighborhood gathering place for a wide range of
purposes including business and socialization.
The chain is named after Moby Dick, and the logo is a sea siren, which
ties back to the roots of the chain in Seattle.
The mission of Starbucks is to “to inspire and nurture the human spirit –
one person, one cup and one neighborhood at a time.”
The chain is also committed to the being responsible in ethical sourcing of their
beans, which they acquire internationally, being community centered, and
sustaining the environment. These initiatives help position the brand as

4. 3
responsible and engaged with human affairs, which is a major selling point that
can be capitalized.
The coffee comes from Latin America and Africa, is ethically sourced,
and is paid for in premium by the corporation. The company prides itself in hand
picking out beans via an active buying team. The roasting process is customized
to give Starbucks a unique flavor and a competitive edge.
The company maintains over 22 thousand stores throughout the world,
although this campaign will focus on the United States market. The company is
publicly traded, and has traditionally performed well with growth, indicating a
successful and stable brand, product, and company.
-Consumer Analysis (purchase process, purchase cycle, etc.)
The two primary target audiences the campaign will address are men and women
ages 25 - 40 and young adults ages 18- 24. Men and women ages 25-40 that will be
targeted are located in urban areas, where Starbucks stores are located, and possess a high
income. They also have a focus on social welfare that ties into the corporate
responsibility objectives of Starbucks, including community engagement and ethical
sourcing of coffee beans. This target audience accounts for 49% of Starbuck’s sales. This
target audience, especially in at the older end of the demographic, will respond to direct,
social interaction via social media platforms, but are also consumers of traditional, mass
media, such as magazines, that were of higher focus before the digital revolution.
The second primary target audience is the young adult demographic, particularly
between the ages of 18 - 24. This target audience is “wired”, meaning that they
interconnect through digital and media platforms in synchronous ways. This
communication approach allows for direct interaction between people and brands. This
target audience makes up 40% of Starbuck’s annual sales volume. These individuals are
most likely to respond to interactions with brands, leading to purchase, through direct
targeting and interaction, although traditional, mass media can still help reinforce the
brand.
The purchase cycle of Starbucks products for both target audiences is somewhat
regular. Although premium pricing may prohibit higher consumption for those in lower
income brackets, Starbucks is a regular stop for many for the purposes of refreshment,
socialization, relaxation, or conduct of small, interpersonal business. Pastries and
merchandise complement the coffee product line, and thus are often bought in tandem.
Target audience members come to Starbucks for quality, convenience, and atmosphere.
During the purchase process, interaction between baristas and patrons is direct,
friendly, and customized. Not only are the drinks premium, but the Italian style of coffee
presentation is utilized within the modern, aesthetically pleasing environment of the
store. This presentation includes name-writing on the cup, whipped cream, hand shaking
and other features. The psychologically pleasing experience often opens the conversation

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for suggestive selling that includes the pastries and merchandise within the store. At
premium prices and moderate traffic volumes, this consumer behavior process allows for
stability and growth of the business by retaining and creating repeat consumers.
-Competition Analysis
Starbucks competes with many different outlets for coffee, ranging in quality,
experience, and price. In order to maintain a strong brand and market share, Starbucks
focuses on offering a quality experience along with its product line. In order to stay
competitive, Starbucks most continue to reinforce the value for its price. The whole
experience must be sold as a package, including atmosphere, quality product, and service
to remain competitive against lower end brands.
Other competitors include McDonald’s McCafe, Dunkin Donuts, Seven Eleven,
and Caribou. Although Caribou strives to parallel the quality of Starbucks, its’ market
share is low in comparison. Other outlets, such as Seven Eleven, Dunkin Donuts, and
McDonald’s focus on speed and competitive price, rather than the experience. However,
Dunkin’ Donuts, like Starbucks, offers a variety of pastries, specifically donuts, that
allow the brand to remain competitive in the price attribute.
Competition Comparison - Fig. 1
Starbucks McDonald’s Caribou Dunkin Donuts
12,500 Shops 31,000 415 Coffee 6700 Shops in

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in the United
States
Restaurants
Worldwide
Shops in 16
States
the United
States
Highly
Experienced
Baristas
Coffee Brewed
each day by
any worker
Highly
Experienced
Baristas
Semi-
Experienced
Baristas
High
Availability
High Quality
High
Availability
Low Quality
Low
Availability
High Quality
High
Availability
Mediocre
Quality
-Market Analysis
Market trends show growing favorability towards coffee overall. Starbucks
follows this trend by performing with steady growth in price per share of publicly traded
stock. According to Statista, a statistical research firm, the average American spends
almost $22 on coffee per week, showing favoritism towards this beverage as a regular
staple. With growing market potential, Starbucks has followed suit in size, awareness,
and preference within the coffee industry.
According to Forbes.com, the American coffee industry has grown to be a 30
billion dollar industry, with a steady 5% growth average from year to year. Almost a third
of the 83% of American adults that drink coffee, drink a gourmet coffee drink, which
aligns with items on Starbucks’ product line. The highest concentration of coffee
consumption in the United States is located within the borough of Manhattan of New
York City.
Starbucks Growth in Price per Share - Fig. 2

7. 6
SWOT - Fig. 3
Strengths
Established brand loyalty
Quick, custom service
Identifiable logo
Established brand value
Seasonal product
Numerous locations
Weaknesses
Lacks diversification of price points for
entire target audience
Political and business controversies
Identifying potential target audiences /
markets
Reliance on U.S. market
Opportunities
Incorporation within tight knit
communities
Developing target markets / audiences ;
diversification
Domestic coffee blends
Threats
Competing coffee and pastry brands (i.e.
Dunkin’ Donuts)
Calorie conscious consumers (high calorie
content drinks)
Volatile coffee market
Issue Identification

8. 7
As mentioned in the brand and situation analysis, Starbucks features premium, hand
selected beans for a carefully crafted roast. These features separate Starbucks from a vast
majority of the easily reached retail competition. Starbucks brand is perceived of high value and
follows suit in the target audience that it attracts along with the price points the firm charges. In
order to continue building brand value and position the brand of one that is distinctly valuable
and of quality, focus needs to directed towards the features that separate Starbucks coffee from
the competition.
The primary feature that can convey quality is the hand selected, quality, imported beans
used in Starbucks’ coffee. An advertising campaign is necessary to continually position the brand
as one of quality and elevate it further by increasing awareness of the beans utilized in
Starbucks’ custom roasting methodology. This campaign will be entitled “Only the Best”.
Campaign Objectives
-To continue the trend of innovation through the development and awareness of
the Starbucks brand.
-Only the Best Campaign will be released Q1 2016
-To engage followers in targeted, captivating ways with a focus on quality coffee
in order to increase sales, ultimately increasing the value and love for the brand as
well as the promotion budget for continued brand enhancement.
-To increase the overall position of Starbucks by establishing value in the services
communicated through appropriate, target audience specific channels.
Target Audience (segmentation + targeting)
The Target Audience for “Only the Best” encompasses Generation Y, born in the
1970’s - 1990’s, which includes middle aged adults as well as college aged students. The
college aged end of this spectrum can also be identified with the millennial generation.
Behavioral characteristics of this generation focus heavily on their connected
nature. Members of this generation are heavily involved in social media and digital,
interpersonal communication platforms. These individuals that consume Starbucks’
products tend to also be middle to upper middle class. This often allows them
discretionary income for the purchase of Starbucks’ premium products. These individuals
also tend to be concerned regarding environmental sustainability, which Starbucks
participates in through ethical bean sourcing policies and coffee container materials.
Positioning

9. 8
Starbucks is positioned as an experience, in that the brand offers a complete,
custom experience that complements the products offered. The experience is perceived as
premium, which is paralleled with premium pricing for the unique atmosphere and
beverage customization.
The experience expands into the concept of the stores that affect consumer
behavior and can influence the manner in which advertisements are constructed. The
store atmosphere is one that focuses on intimate collaboration for business, collegiate and
personal occasions. The concept of the space in which one obtains starbucks plays just as
much of a role in the brand position in a consumer’s mind as the customized drinks
themselves.
The brand position should continue to be reinforced in creative and captivating
ways that maintain Starbucks’ market share and position, with the ultimate goal of
enhancing that share and position. In order to maintain the premium brand position, the
ads will not only be captivating, but focus on the value of the coffee itself that gives
Starbucks the brand position that is currently possessed. The “Only the Best” Campaign
will focus on the quality of the beans utilized through soft sell tactics that increase
perceived value of the brand’s premium coffee products.
Creative Brief
Why:
To position Starbucks as an innovative, responsible, and appealing coffee brand
committed to quality and target audience expectations.
To Whom:
Men and Women ages 25-40
What We Know:
Men and women who are generally on the go and need a little kick-start to get
their day going, whether it be with a cup of coffee or tea, or various other
beverages that Starbuck’s can provide for its’ consumers. These individuals not
only expect that energy boost, but also expect an experience with a quality
product. The focus on Starbucks quality beans and roast appeals to the
expectations of these consumers that are often higher in social position and
income.
Main Message: You don’t have to be an expert to enjoy a cup of Starbucks.
Starbucks is committed to quality coffee beverages, utilizing “only the best”
beans available.
Tactics
Only the Best Advertising Campaign

10. 9
Only the Best focuses on the quality of beans that Starbucks utilizes
through careful hand picking and custom roasting. The campaign focuses on this
feature as a signal of quality and status, an attribute that communicates to the
needs of our defined target audience by meeting their higher expectations. This
campaign also reaches to those that are young, college aged coffee drinkers by
helping build loyalty to the brand. The distinguishable attribute of quality sets the
Starbucks brand our from other retail options, which are often sourced in a
commercialized, low quality manner.
-Ad Example
-Print Advertisements
Print advertisements will be used in a variety of target audience
specific publications, particularly magazines. This will allow high
coverage to obtain high exposure for the campaign, aiding to enhance
brand position.
-Billboards
Billboards will be strategically placed in metro areas where
Starbucks stores are located to achieve high coverage, bring about
relevancy of the Starbucks brand, and meet the positioning objectives of
the campaign to focus on the quality of coffee.
-Social Media Advertisements

11. 10
Social media advertisements have been deemed appropriate to
reach a high composition of our target audience since we will be able to
pinpoint the desired demographic of our target audience and pinpoint the
locations these individuals are reached to maximize effectiveness in areas
that local stores are available.
-Television commercials
A commercial series has been selected as part of the campaign to
gain high exposure to the selected target audience. Composition may vary
depending upon air time and placement. High coverage is essential to meet
the objective enhancing the brand image with a focus on quality.
-Ex: Open on a group of college students drinking coffee from
various brands (Dunkin doughnuts, McDonald's, Caribou). As they
all drink their coffee, they all find that their coffee isn’t all that
great. A kid in the back pipes up and says that his coffee is the
best. They each try the coffee and agree that his is the best and ask
what kind it is. He looks straight into the camera and says,
“Starbucks. Only the best.”
Media planning (Campaign Timeline)
● Pulsing
■ Desired Reach - High - Millions
■ Desired Frequency - High - Millions - Repetition
■ High Coverage - Mass Media
● Geographically, Target Audience centered; billboards,
target audience appropriate magazines, target audience
appropriate television networks and programs
■ High Composition - Direct - Social Media
● Define Target Audience in ad placement
○ Launch - Q1 2016 - Pulse each quarter throughout 2016
○ Budget - Top Down
■ Request 10% of Revenue for ad spending
Conclusion
Starbucks aims to position itself further as a brand of quality that is separated from the
competition by unparalleled customization, atmosphere, and most importantly, quality

12. 11
sourcing of coffee beans. The attributes of quality, ethics, sustainability, and responsible
sourcing speaks to the expectations of the target audience, and should be capitalized upon
in an innovative way to maintain and gain market share as well as enhance brand
position. Thus, “Only the Best” will address this issue in a targeted, innovative, and
effective manner with the ultimate goals of enhancing brand image, maintaining a loyal
customer base, and displaying a commitment to meet and exceed consumer expectations
while differentiating the brand position from the competition via quality.
References
http://www.statista.com/topics/1248/coffee-market/
http://www.forbes.com/sites/robertpassikoff/2013/09/16/u-s-consumers-drinking-a-latte-more-
coffee/
http://smallbusiness.chron.com/starbucks-target-audience-10553.html
http://www.starbucks.com/about-us/company-information/starbucks-company-profile
http://www.dailywealth.com/2515/three-ways-to-spot-a-bad-ceo
http://www.starbucks.com/about-us/company-information/starbucks-company-profile