The document discusses Starbucks' strategy and target audience. It analyzes Starbucks' competitors and identifies its strengths as quality coffee, comfortable atmosphere, and consistency. Younger customers see Starbucks as a social place to meet. The summary proposes using humor in ads to show how Starbucks creates comfortable environments that facilitate social interactions and help resolve conflicts between friends.

1. Social Taste The interaction Matters Duck Advertising was established to generate creative and thought provoking advertising. We at D.A. believe the quality and success of our business is achieved through team collaboration and hard work. To provide the highest quality, entertaining and unique advertising for a diverse clientele.

2. So Close But Not At All The Same

3. Background Market and Brand In Depth Starbucks’ success comes from their focus to maintain founding principals as they grow, their aggressive distribution, and their commitment to provide environmental leadership. Howard Schultz has always put people before products, which is the bottom line in their principals. Schultz wants to promote the “Starbucks experience,” meaning each customer gets more than the finest cup of coffee; they get great people, comfortable meeting place, and first-rate music. “ Understood that one amazing cup of coffee could make someone’s day, served in a place where people feel welcome, could elevate someone’s day. Maybe even change their life.”

4. Competition From the Ground Up

5. Competition McDonald’s & Dunkin’ Donuts In-and-out service Convenience Global In-and-out service Price Extended drink menu Global

6. Competition Peet’s & Tully’s Quality, specialty coffee Global Seattle based Located near Starbucks Coffee experience Specialty coffee Multi-channel distribution like Starbucks

7. Competition Tim Horton’s & Caribou Comfortable atmosphere Anti-Starbucks Quality coffee process Coffee experience Specialty coffee Multi-channel distribution like Starbucks

8. Industry Trends Specialty Coffee Drinks Market Quality and freshness Gourmet espresso coffee and specialty drinks are very popular New experimental ways to make drinks popular; New Flavors Connections made with others over coffee in person Coffee most popular at breakfast (most popular meal) and snack time

9. SWOT Analysis A Cool Matrix Threats Globalization Competitors are making specialty espresso drinks Opportunities Market Saturation Make Your Mark volunteer program Ethos water Reading Programs Weaknesses Cost Burnt coffee taste Viewed as corporate Wide selection of food choices are not promoted Strengths Brand Awareness Familiar Consistence of coffee taste Environment Comfortable

10. Investigation Methods Primary & Secondary Research Primary Surveys Interviews Observations Secondary Industry Research Market Research Trends What does this mean for Starbucks?

11. Target Audience Starbucks people & Places Current typical user Women 25-49 College educated $50K+ HHI Recommend Extend target age to include 18-25 year-old students. What does this mean for Starbucks? Establish coffee drinking habits at a younger age. Women more willing to purchase luxury items Want to emphasize comfort in Starbucks

12. How DA Thinks Strategy Mind Map SOCIAL TOOL - COFFEE pleasant season by drink festive comfortable wi-fi free stuff surprise by delight conversation common language business homework luxury entertainment $$$ groups drive-thru 24 hr Starbucks convenience clean stay awhile coffee reliable quality global featured artists radio iTunes movies music food

13. Consumer Insights What are Starbuckies really about? Lifestyle is dependent on convenience and quality Thrive on being social Prefer familiar atmosphere Independent and confident in decision making

14. Promotional Problems The Neck Tie Coffee Stain High Merchandising of Non-Coffee products Barista Bears, Music, Record Company Corporate Image Takes away from the Starbucks experience Starbucks spends far less on advertising than other large retailers and consumer-products companies - The Seattle Times, 2006

15. Strategic Position The Hammer & Nails Starbucks environment is a social tool “ Let’s go out for coffee” People use coffee as an icebreaker Starbucks itself is a social tool inside the store & out Giving gift cards after arguments Coffee Mugs as stocking stuffers Creative Idea Awkward situations made comfortable by Starbucks

16. Creative Brief The Action Starbucks coffee is a social tool; it’s there for the customers’ convenience Overshadow corporate image Nugget Advertising to existing customers to influence new customers Advertising should be funny and light-hearted; similar to conversation that could potentially take place at Starbucks. The Attraction #1 coffee chain in the world Involved in Fair Trade. Support Mercy Corp, Save the Children and African Wildlife Foundation Good coffee on the run Accessible and consistent The Competition There are four main factors that distinguish coffee competitors Price Convenience Quality Experience Independent coffee houses tend to be social and inclusive; tend to capture younger audience The Consumers 18-49 year-olds, primarily women who: seek quality and convenience Are educated Have $50K + HHI Regard relationships very important Enjoy small talk with friends & family The Problem How do we make Starbucks seem less “big” and facilitate social interaction? Corporate image is overshadowing characteristics that made Starbucks what it is today. Brand Has: Pros & Cons Loyal Customers Brand name recognition High Brand competency Familiarity Insights 18-49 year-olds are seeking convenience and a quality experience to fit their social lifestyles Starbucks offers a quality experience that is convenient and consistent from store to store. Product Category COFFEE: Quality, Experience, Convenience, brand perception Consumers resonate with the atmosphere and lifestyle of the Starbucks coffee houses. Young women live an on-the-go lifestyle, however they also leave time to socialize. What makes the Starbucks experience different?

17. What We Came Up With Our Creative Ads He may not know what to say but she has a secret weapon for conversation. After the movie she suggests Starbucks. The comfy chairs, casual setting, and variety of hot and cold drinks provide an atmosphere that makes any awkward situation comfortable. Even if the boy is new, Starbucks will always be the same.

18. What We Came Up With Our Creative Ads Janet and Antonia had a screaming match last night over whose bowl was in the sink. Their friendship is in jeopardy and moving out was brought up. Over email they try to address their problems but it isn’t working. Janet suggests Starbucks as a neutral place to meet that both would feel comfortable. In no time they are giggling like school girls about the new boys in each others lives. The fear they walked in with has become a distant memory. Starbucks has saved another friendship over lattes.

19. Additional Insights Our Strategy Keeps On Going Umbrellas Bookmarks Having more events at Starbucks What do you think of Starbucks? Having people send in artwork describing their experiences

20. This is New But Starbucks Isn’t Thank you for the opportunity to present our insights and ideas. We look forward to building a strong relationship with Starbucks in the future.