This document provides a marketing campaign summary and strategy for Starbucks to retain customers and market share in response to competition from McDonald's premium coffee drinks. The campaign's theme is "Note to Self" and will use humor to remind people that financial shortcuts, like switching from Starbucks to cheaper coffee, may not be the smartest choices. The target market is 18-34 year-olds who are newly independent. The campaign will use various traditional and non-traditional media to reach this audience over the course of a year with the goal of increasing customer retention and feelings that Starbucks is worth the price.
Comparison of Starbucks, Folgers, Caribou, Green Mountain and Other Top Coffe...Unmetric
Take a deep dive look at the social media habits of your favorite coffee brands and coffee chains. What do they do to get social? Unmetric analyzes their content strategies and campaigns to understand exactly what it takes to engage your coffee loving audience
Starbucks is one of the largest chains of coffee shops in the world. There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to gain entrance into new markets. However, such enthusiasm cannot be counted on indefinitely; other strategies are always in the works. Over time Starbucks has been able to acquire a solid brand reputation and has a world renowned company logo. There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service. In recent years there was a time that Starbucks saw the opportunity to go global and jumped on it.
Comparison of Starbucks, Folgers, Caribou, Green Mountain and Other Top Coffe...Unmetric
Take a deep dive look at the social media habits of your favorite coffee brands and coffee chains. What do they do to get social? Unmetric analyzes their content strategies and campaigns to understand exactly what it takes to engage your coffee loving audience
Starbucks is one of the largest chains of coffee shops in the world. There are many topics that arise throughout the case with Starbucks Corporation. Starbucks Coffee is located worldwide and there are many different ways to look at this situation. The company offers a unique range of coffee, lattes, espressos, and café style drinks. The company intended to reach a specific target audience, but has ended up in many different markets and has been growing rapidly. Starbucks has greatly used the “youth appeal” strategy to gain entrance into new markets. However, such enthusiasm cannot be counted on indefinitely; other strategies are always in the works. Over time Starbucks has been able to acquire a solid brand reputation and has a world renowned company logo. There have been some distinguished controllable and uncontrollable elements Starbucks has encountered when entering global markets. The strategies of any company’s goals are vital to its success. This is one area Starbucks has excelled in, just as McDonald’s has in recent years. Starbucks has paralleled its branding with the actions found at any Starbucks across the world. They have an excellent company vision, which they stick to, which in turn assists their brand image. Starbucks’ image has been achieved not only through this and their massive global entrance, but through their ability to provide honest quality service. In recent years there was a time that Starbucks saw the opportunity to go global and jumped on it.
Brand and Reputation Management – StarbucksHassaan Elahi
This report has analyzed the reputation management strategy of Starbucks that helped it to maintain its brand reputation for which it is famous globally. The report has also provided details associated with different theories of branding and relate it with existing strategies of Starbucks that have enabled it to create brand awareness and brand recall among its customers. Furthermore, it has also highlighted how successful Starbuck was in improving its image through its brand reputation management strategies that allowed it to win back the trust of its customers.
In the two decades that Y&R’s BrandAsset® Valuator (BAV®) - the world’s largest database of brand perceptions - has studied the brandscape, brands have become 200% less distinct from one another. Marketers must work harder than ever in order to make their brands stand out. But how? By studying thousands of brands - from the most iconic to the most commoditized - we found that breakaway brands have an inherent tension that makes them irresistible. We call this BRAND TENSITY®
This project was made for my Managing for a Change class (MGT420) back in the Winter of December 2008. The paper starts with an introduction and company profile, then moves on to organizational structure graph, market capitalization graph, company owned stores, a balance sheet graph (as of 2007), product graph, competitor graph, and SWOT analysis for the company. The whole paper is approximately 16 pages.
The Dead. Serial Killers. Mutants.
Halloween staples, sure. But these genre titles can also be applied to brands and their life cycle.
Brand graveyards are littered with brands that were one-dimensional, not innovative, and generally lost value in culture (RIP Tower Records). No one is immune to the curse, but, with proper care, brands can be resurrected.
This Halloween season, Y&R’s BrandAsset Valuator® (BAV) - our proprietary brand management tool and global database of consumer perceptions of brands – looked at 20 years of data to analyze The Good, The Bad, and The Dead. Using BAV’s measurements on four key pillars of brand health and 48 brand imagery dimensions, we looked at brands that are seemingly immortal, the ones that risk becoming irrelevant, and those that have gone to that great big brand grave in the…well, ground.
This slide is the solution to the Starbucks Case. The case is available in Google Docs. the solutions are well discussed , in case you have doubts check in the footnotes.
Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".
Brand and Reputation Management – StarbucksHassaan Elahi
This report has analyzed the reputation management strategy of Starbucks that helped it to maintain its brand reputation for which it is famous globally. The report has also provided details associated with different theories of branding and relate it with existing strategies of Starbucks that have enabled it to create brand awareness and brand recall among its customers. Furthermore, it has also highlighted how successful Starbuck was in improving its image through its brand reputation management strategies that allowed it to win back the trust of its customers.
In the two decades that Y&R’s BrandAsset® Valuator (BAV®) - the world’s largest database of brand perceptions - has studied the brandscape, brands have become 200% less distinct from one another. Marketers must work harder than ever in order to make their brands stand out. But how? By studying thousands of brands - from the most iconic to the most commoditized - we found that breakaway brands have an inherent tension that makes them irresistible. We call this BRAND TENSITY®
This project was made for my Managing for a Change class (MGT420) back in the Winter of December 2008. The paper starts with an introduction and company profile, then moves on to organizational structure graph, market capitalization graph, company owned stores, a balance sheet graph (as of 2007), product graph, competitor graph, and SWOT analysis for the company. The whole paper is approximately 16 pages.
The Dead. Serial Killers. Mutants.
Halloween staples, sure. But these genre titles can also be applied to brands and their life cycle.
Brand graveyards are littered with brands that were one-dimensional, not innovative, and generally lost value in culture (RIP Tower Records). No one is immune to the curse, but, with proper care, brands can be resurrected.
This Halloween season, Y&R’s BrandAsset Valuator® (BAV) - our proprietary brand management tool and global database of consumer perceptions of brands – looked at 20 years of data to analyze The Good, The Bad, and The Dead. Using BAV’s measurements on four key pillars of brand health and 48 brand imagery dimensions, we looked at brands that are seemingly immortal, the ones that risk becoming irrelevant, and those that have gone to that great big brand grave in the…well, ground.
This slide is the solution to the Starbucks Case. The case is available in Google Docs. the solutions are well discussed , in case you have doubts check in the footnotes.
Developed a campaign for Starbucks, with a new strategy in mind. Emphasizing that Starbucks only offers high-quality coffee, and ingredients. "Only the Best".
1Alcoholic Coffee BrewhousesMBA 560 Final Project- Comprehen.docxdrennanmicah
1
Alcoholic Coffee Brewhouses
MBA 560 Final Project- Comprehensive Business Plan
Alcoholic Coffee Brew Houses Exclusively at Starbucks
Carmen Hendrickson
02/19/2019
Executive Summary
This business plan will outline an integration of alcoholic beverages mixed with coffee to be exclusively offered at flagship Starbucks locations both foreign and domestic. Through test markets and extensive research into this niche area, the success of this product will rely heavily on meeting the demands of an ever-changing market. The management team is charged with the responsibility of becoming more efficient, staying ahead of current trends, and meeting the demands of the market. In order to do so and reach the full potential, Starbucks will need to employ key top level executives that are prepared to face the scrutiny of public opinion, keep up with the challenges of the market, gain knowledge of the new trends and innovations, offer appropriate prices and always be different from the rival companies. The goal is not only to be unique, but also to offer interesting and desirable products that support expanding the current customer base in which the company will have a voluntary monopoly and be an absolute favorite of the customers. This paper offers an in-depth insight to the introduction of alcoholic coffee brew houses. The company is Starbucks and this niche product will mainly be marketed to major cities with sufficient number of tourists. The paper below will discuss the branding of the product along with the context of the idea, the main features of the brew houses, the marketing, the ways to compete with the rivals, the definition of the service and the pricing - along with the comparison with the rival companies.
Context
Starbucks' main corporate mission, values, goals and vision are to create a culture which is valuable to the clients on a personal level, offer a culture of warmth and belonging in order to make each customer feel welcome (Harju, et al., 2015). The company aspires to challenge the status quo and constantly keep up with the process of finding new ways to grow. The alcoholic coffee brewhouses perfectly align with the terminal values of the corporation - since it is indeed innovating and in accordance with the customer needs.
The alcoholic coffee is generally not sold in Starbucks but is created as an add on to its already famous drink menu. Creating an alcohol-related service between the hours of 12pm til close will be appealing to a wide range of populations. Even though the age limit may become a problem, the alcoholic coffee brewhouses can also attract customers, especially in the zones and cities that are famous tourist destinations. Its main feature would be the alcohol content.
The brew houses will be branded with the Starbucks logo, but they should also present an environment that will be different from the classic Starbucks coffeehouses in order to attract new types of customers. Since the brewing was, initially.
What are Starbucks’ past and present target markets and how has it t.pdfanaxeetech
What are Starbucks’ past and present target markets and how has it tried to appeal to these
markets? What problems are they likely to face in the future?
Solution
The success of Starbucks is not hidden to any one. It is the largest coffee house in the world, that
holds around 33% of the total market share of coffee. All its success Starbucks owes to a well
defined and well served market.
At its launched, Starbucks at first targetted only Youth. Young College students, with slightly
higher than average income, were the centre of all the marketing strategies of Starcuks. To target
this market, it positioned itself, in the beginning, as a place where young college students can
hang out, study, discuss and write term papers and meet friends. Starbucks appeals to this
consumer directly through introducing technology as soon as it comes available, focusing on
social networking and actively cultivating a “cool” image. The young adult audience grows 4.6
percent each year.
Now Starbucks has realized that they could target specific neighbor hoods of the initial target as
well. It then tried to attract specific upward social classes. Different customers are more willing
to pay for luxury good now more than ever. With that in mind, through Starbucks aggressive
expansion techniques they have begun targeting almost every demographic.
Adults, Youth, Kids and Teens, obviously with slightly higher than average income, have now
become several groups that the company now target.
Starbucks’ primary target market is men and women aged 25 to 40. They account for almost half
of its total business. Starbucks’ appeal to this consumer age group through hip, contemporary
design that is consistent in its advertising and decor, and working to keep its products current as
status symbols. Customers tend to be urbanites with relatively high income, professional careers
and a focus on social welfare. This target audience grows at a rate of 3 percent annually.
A small share is also contributed by kids and teens in the revenue of Starbucks. They provide
steamed milk that Starbucks refer to as “babyccinos” . It is whipped cream topped coffee drinks
that are so popular with teenagers, kids and teens form a large part of Starbucks business. Kids
go there with their parents; both mother and child leave with cup in hand.
It is the change in target market that has made them to change their Mission Statement:
Previous: Establish Starbucks as the premeir purveyor of the finest coffee in the world while
maintaing our uncompromising principles while we grow.
Now: To inspire and nurture the human spirit- One person, One cup and ONe neighbor hood at a
time.
Despite such a strong launch and a big success story, it has started witnessing fall. In the recent
years, the market has shown Starbucks to be in constant decline, as their stock has dropped about
$15/share, a value they have been above since 2004. Starbucks consider itself as a premium
coffee provider and this could be the main probl.
Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is thei...Rezbeen Nahar Richi
Market Segment and Consumer Behavior Case Study - Starbucks: Just Who is their customer?
This Presentation has case included insided it and also the answers are included.
Learning Team A Marketing Plan Jennifer Bodine, Sha.docxjoyjonna282
Learning Team A
Marketing Plan
Jennifer Bodine, Shannon James, Tyler Thomas. Sherrell Cook and Teron Brooks
Mission StatementTo inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
*
Starbucks has developed a reputation of brewing exceptionally delicious coffee. Since Starbucks opened in 1971 (Starbucks, 2013) they have created a coffeehouse atmosphere where people come to drink coffee, talk with friends, perform work meetings, and relax for a few minutes. Starbucks has expanded their operations to 18,000 stores in 62 different countries (Starbucks, 2013). Starbucks created a name for selling world-famous coffee; however, Starbucks has been able to expand their products. In addition to providing several products, Starbucks also offers many services.
Starbucks Sensation Sugar - free Will provide mental and physical stimulation Will be sold in bulk
*
This sugar free energy drink from Starbucks will be marketed as providing mental and physical stimulation as the traditional coffees and lattes Starbucks has to offer without the high intake of sugar. Starbucks Sensation can be purchased in both non-carbonated form for juice lovers, and carbonated form for those who enjoy the feeling of drinking a soda. Located in the soft drink isle of a grocery store, Starbucks Sensation comes in different fruity flavors. It also comes in coffee flavors such as vanilla or caramel for the coffee drinkers who want a double shot of energy. Starbucks Sensation is suited for all who wants to gain extra endurance when one is putting in long hours of work or for those working out hard in the gym.
SWOTT AnalysisStrengths
Weaknesses
Opportunities
Threats
Trends
One method that is commonly used and effective for strategizing is the S.W.O.T.T. analysis. First lists one of the business’ focal points as “recharge your afternoon with a lightly caffeinated pick-me-up” (Starbucks, 2013). Second, Starbucks has set up their business as a publicly held company, which means they have the financial resources that other large corporations have. Another advantage is they are not limited in distribution areas. Third, Starbucks has a culture and reputation built around responsible, ethical business practices and building communities in areas where customers do business. From top down, Starbucks is committed to enhancing ethical performance through strategic relationships with global, regional and domestic suppliers (Starbucks 2013).
Marketing ResearchConsumer analysisDemographicsPsychographicsBehaviors Geographical considerations
A marketing strategy should result in customer satisfaction. The company will use the mission statement as the impetus for the messaging and approach to be used. The customer will be the audience and require two types of messages, both that support the energy drink being safe and healthy. A loyalty program could help accomplish both of these tasks. In particular, Business Dateline states tha ...
External and Internal Analysis 8Extern.docxgitagrimston
External and Internal Analysis 8
External and Internal Environmental Analysis
STR/581
Professor Alfonso Rodriguez
July 30, 2014
Sheila Medina
Introduction
Coffee has become an integral part of the lives of numerous people. In 1971, Starbucks coffee opened its first coffee shop in the Pike Place Market in Seattle, Washington. Now, according to research “Starbucks Corporation is the leading retailer, roaster and brand of specialty coffee in the world, with more than 6,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim” (www.investor.starbucks.com). Starbucks aims to be the consumer’s favorite coffee shop and to achieve this the company focused on customer satisfaction as well as company advancement. Therefore, it is important to act based on what is written in Starbucks mission, value and vision statement, “To inspire and nurture the human spirit-one person, one cup, and one neighborhood at a time” (www.starbucks.com).
A review of Starbucks financial reports has identified an increase in revenue over the past few years. However, this increase in revenue doesn’t account for the increase in profits. The profit increase is not as high as it could be due to external factors such as other coffee shops and the increase in amount of competition. This report aims to identify the different internal and external environment factors attributing to the changes in Starbucks external environment by utilizing several different analyses.
SWOT Analysis
Strengths
Starbucks possesses several main strengths including their high visibility being located in high traffic areas, quality of service and products and their established brand loyalty. Starbucks remains an established leader being the number one known coffee house in the world while possessing a competent workforce, providing quality service, and continuing financial soundness. They also are known for their strong internal and external relationships with their suppliers.
Weakness
Weaknesses that Starbucks must address include: Product affordability and pricing, coffee beans price is the major influence over the firms profits, maintaining the positive public opinion of their products, avoiding any negative publicity, and remaining connected to their customers. Starbucks must also consider the fact they have expanded domestically and internationally resulting in saturation of the markets. They are also a non-smoking facility alienating some customers from purchasing coffee or other products from their store.
Opportunities
Opportunities include the ability for Starbucks to enter into different and new markets,
partnership opportunities with businesses, growing acceptance and customer satisfaction, and increase different product offerings. Starbucks must strive to continue expanding their products and food service to remain competitive and reach other consumers. Another option would be for Starbucks to allow consumers to order t ...
there could be room for even more stores. Given such concen-.docxrelaine1
there could be room for even more stores. Given such concen-
tration, it is likely to take annual same-store sales increases of
10 percent or more if the company is going to match its historic
overall sales growth. That, as they might say at Starbucks, is a tall
order to fi ll.
Indeed, the crowding of so many stores so close together has
become a national joke, eliciting quips such as this headline in The
Onion , a satirical publication: “A New Starbucks Opens in Rest-
room of Existing Starbucks.” And even the company admits that
while its practice of blanketing an area with stores helps achieve
market dominance, it can cut sales at existing outlets. “We prob-
ably self-cannibalize our stores at a rate of 30 percent a year,”
Schultz says. Adds Lehman Brothers Inc. analyst Mitchell Speiser:
“Starbucks is at a defi ning point in its growth. It’s reaching a level
that makes it harder and harder to grow, just due to the law of large
numbers.”
To duplicate the staggering returns of its fi rst decade, Starbucks
has no choice but to export its concept aggressively. Indeed, some
analysts gave Starbucks only two years at most before it saturates
the U.S. market. The chain now operates 5,507 international out-
lets, from Beijing to Bristol. That leaves plenty of room to grow.
Most of its planned new stores will be built overseas, represent-
ing a 35 percent increase in its foreign base. Most recently, the
chain has opened stores in Vienna, Zurich, Madrid, Berlin, and
even in far-off Jakarta. Athens comes next. And within the next
year, Starbucks plans to move into Mexico and Puerto Rico. But
global expansion poses huge risks for Starbucks. For one thing, it
makes less money on each overseas store because most of them are
operated with local partners. While that makes it easier to start up
on foreign turf, it reduces the company’s share of the profi ts to only
20 percent to 50 percent.
Moreover, Starbucks must cope with some predictable chal-
lenges of becoming a mature company in the United States. After
riding the wave of successful baby boomers through the 1990s,
the company faces an ominously hostile reception from its future
consumers, the twenty- or thirty-somethings of Generation X. Not
only are the activists among them turned off by the power and
image of the well-known brand, but many others say that Star-
bucks’ latte-sipping sophisticates and piped-in Kenny G music are
a real turnoff. They don’t feel wanted in a place that sells designer
coffee at $3 a cup.
Even the thirst of loyalists for high-price coffee cannot be taken
for granted. Starbucks’ growth over the early part of the past de-
cade coincided with a remarkable surge in the economy. Consumer
spending tanked in the downturn, and those $3 lattes were an easy
place for people on a budget to cut back.
Starbucks also faces slumping morale and employee burnout
among its store managers and its once-cheery army of baristas.
Stock options for .
The ppt descibes the the Branding and marketing strategies of Starbucks Under 8 functional Bracket like Logo, Standardisation, expansion, Globalisation, Co-branding, Augmented Services, Facing Competition and Pricing Strategies.
1. note to self:
K a t ie a
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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
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worth every sip.
2.
3. 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.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
13. 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