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Starbucks Coffee    

Media Plan

Luke Crawford   E-­‐‑Mail:  luke.crawford@loop.colum.edu  

www.starbucks.com


12/4/13

Starbucks Coffee  

Media Plan

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Situation Analysis Company Description:   Starbucks   is   the   premier   roaster,   marketer   and   retailer   of   specialty   coffee   in   the   world,   operating  in  60  countries.  Formed  in  1985,  Starbucks  Corporation’s  common  stock  trades   on   the   NASDAQ   Global   Select   Market   (“NASDAQ”)   under   the   symbol   “SBUX.”   Starbucks   purchases   and   roasts   high-­‐‑quality   coffees   to   sell,   along   with   handcrafted   coffee,   tea   and   other   beverages   along   with   a   variety   of   fresh   food   items,   through   company-­‐‑operated   stores.   We   also   sell   a   variety   of   coffee   and   tea   products   and   license   our   trademarks   through   other   channels   such   as   licensed   stores,   grocery   and   national   foodservice   accounts.   In   addition   to   our   flagship   Starbucks   brand,   our   portfolio   also   includes   Tazo®   Tea,   Seattle’s   Best   Coffee®,   Starbucks   VIA®   Ready   Brew,   Starbucks   RefreshersTM  beverages,  Evolution  FreshTM,  La  Boulange  bakery  brand  and  the  VerismoTM   System  by  Starbucks.    

-­‐‑Starbucks Annual  Report  (2012)  

Mission Statement:   To  inspire  and  nurture  the  human  spirit  –  one  person,  one  cup  and  one  neighborhood  at   a  time.    

-­‐‑Starbucks Annual  Report  (2012)  

 


Starbucks Coffee  

12/4/13

Media Plan

Target  Audience  -­‐‑  United  States  Market  (MRI+  Data)   •

Adults, 18-­‐‑24  (156)  

Women, 18-­‐‑34  (149)  

Graduated College  Plus  (159)  

Occupation: Professional  &  Related  Occupations  (161)  

HHI: $150,000  or  more  (160)  

Very status-­‐‑conscious  

Values the  Starbucks  brand  (Aesthetic  Study)  

Values friendly  interaction  with  strangers  (Aesthetic  Study)  

Market Information  -­‐‑  Worldwide   •

$100,000,000,000 industry  

Coffee is  currently  grown  in  50  countries  

67% of  coffee  comes  from  The  Americas  

Over ½  of  American  population  over  18  years-­‐‑old  drink  coffee  daily  

Coffee is  the  source  of  75%  of  all  Americans’  caffeine  intake  

Competitors –  United  States  Market   •

Top Sales  competitor:     o

Dunkin Donuts  

Other leading  competitors:   o

McDonald’s

o

Nestlé

Marketing Objective   •

Increase sales  from  $2,800,000,000  to  $3,000,000,000  for  Q2   o

January, March,  April  are  low  

Continue maintaining  brand  strength  and  $3,000,000,000  in  Q1,  Q3,  Q4  

   

 

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Starbucks Coffee  

Media Plan

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Media Objectives Goal: •

Maintain Unique  Visitors  of  2,500,000  per  month  Online.  

(Unique  Visitors  data  from  Compete.com)   •

Continue to  maintain  strong  media  campaigns  and  brand  image  

Starbucks  Coffee  has  an  amazing  online  presence.     As  of  January  29th,  2013,  Starbucks  was  ranked  as  the  company  with  the  8th   largest  following  on  Facebook.  (Ignitesocialmedia.com)   Maintaining  their  yearly  seasonal  strategies  on  Social  Media  is  imperative  in  maintaining   their  brand  strength.     Current  campaign:  “Share  Joy”  

 


Starbucks Coffee  

12/4/13

Media Plan

Geography Focus •

Western United  States  (MRI:  157)  

Metropolitan and  Surrounding  Areas  (Aethetic  Study/Ethnography)  

Cities with  most  Starbucks  per  capita   o

Seattle, WA  [9  /  100,000  people]  

o

Denver, CO  [7  /  100,000  people]  

o

Portland, OR  [7  /  100,000  people]  

o

Los Angeles,  CA  [6  /  100,000  people]  

o

Phoenix, AZ  [4  /  100,000  people]  

o

Chicago, IL  [3  /  100,000  people]  

o

New York  City,  NY  [2  /  100,000  people]  

Seasonality Focus •

January –  April:  Lowest  sales  

July &  August:  “Wellness  Months”    

October –  December:  Holidays  “Share  Joy”  /  “Let’s  Merry”    -­‐‑  To    assist  with  January  sales.  

 

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Media Plan

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Media Strategies Lowest Sales     •

Heavy OOH  to  spur  interest,  and  Print  Ad  to  provide  a  more  detailed  message.    

Store saturation  will  benefit  from  OOH  by  becoming  second  nature.  

Wellness Month   •

Use of  TV  advertising  to  remain  consistent  with  historical  data.  

OOH ad  used  to  spur  interest  in  Chicago  and  New  York  and  aid  in  retention.  

Magazine ad  used  to  elaborate  with  more  information,  and  to  aid  in  retention.  

Holiday •

Use of  Magazines  to  spur  interest,  and  the  continuous  use  of  online  ads  will   broaden  reach  during  holiday  season.  

Interactive •

Consistent 3,000,000  imp  goal  for  every  month  to  maintain  current  strategy  and  

• • •

500,000 paid  post  boosts  per  month  on  Facebook  to  keep  consumers  talking.  

presence and  to  aid  in  retention  with  other  forms  of  media  throughout  the  year.   2,500,000  paid  for  insights  on  www.starbucks.com   On-­‐‑Demand  Streaming  ads  will  run  on  Hulu  and/or  Netflix  according  to   programs  of  demographic  (Adult,  18-­‐‑34)  for  the  last  and  first  weeks  of  the   months  struggling  for  sales  to  hopefully  gain  more  top-­‐‑of-­‐‑mind  awareness.  

OOH •

Bulletins in  the  5  cities  with  the  highest  concentration  of  Starbucks  Stores  (80/20)  

30-­‐‑Sheets in  the  cities  with  high  volume  of  commuters.  

Parking more  concentrated  in  cities  with  high  volume  of  commuters.  LA  is  the   highest  due  to  concentration  of  drivers.    

Branded Trains  were  used  in  the  cities  with  high  volume  of  target  market  taking   public  transportation.  Chicago  has  4  trains,  whereas  New  York  only  has  3  for   these  reasons:   o

Elevated trains  get  more  views  per  route  in  downtown  area.  

o

Chicago has  more  Starbucks  locations  than  New  York  per  100,000   consumers.

 


Starbucks Coffee  

12/4/13

Media Plan

Media Mix • OOH o 5  Bulletins   § Seattle,  Denver,  Portland,  Phoenix,  and  Los  Angeles   o 30-­‐‑Sheets   § Seattle  (1),  Denver(2),  Portland(2),  Phoenix(2),  Los  Angeles(2),   and  Chicago(1)   o Parking  Lot  Displays   § Seattle(1),  Denver(2),  Portland(2),  Phoenix(2),  Los  Angeles(3),   Chicago(1).   o Branded  Trains   § Chicago(4),  New  York  City(3)   • Print  (Magazines)   o

Runner’s World  (210)   §

1 page  ad   •

o

Sunset (227)   §

1 page  ad   •

§

September –  December  (4ti)  

Real Simple  (196)   §

½ page  ad   •

January –  April  (4ti)  

½ page  ad   •

o

January –  April  &  August  –  December  (9ti)  

January –  April  (4ti)  

Interactive o

o

Online Impressions  (3,000,000/mo)   §

Facebook (500,000  boosted  posts/mo)  

§

UV on  www.starbucks.com  (2,500,000  imp/mo)  

On-­‐‑Demand Streaming  (25  rating  points/week)   §

Hulu  

§

Netflix

 

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Starbucks Coffee  

Media Plan

• TV   o

Daypart, 25  rating  points  /  week,  for  8  weeks  

§

No channels  were  supported  by  MRI+  Data.    

 

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Starbucks Coffee  

12/4/13

Media Plan

Financial Total Budget  ........................  $10,000,000   OOH  ...................................  $4,097,042.30   Print  ....................................  $2,640,490.00   Interactive  ..........................  $1,860,000.00   TV  .......................................  $1,400,000.00   Spent  ...................................  $9,997,532.30     Total  Left  ..................................  $2,467.70                                  

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Media Plan

                                                 

 

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Media Plan

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Sources: •

http://www.mobilemarketer.com/cms/resources/mobilegends-­‐‑ awards/14499.html  

www.mriplus.com  

www.Compete.com  

http://www.hks.harvard.edu/case/3pt/berkovitz.html  

http://www.statemaster.com/graph/lif_sta_sto_percap-­‐‑lifestyle-­‐‑starbucks-­‐‑stores-­‐‑ per-­‐‑capita  

Starbucks Annual  Report  (2012)    

Starbucks Earning  Reports  (2010  Q1-­‐‑Q4,  2011  Q1-­‐‑Q4,  2012  Q1-­‐‑Q4)    

www.ignitesocialmedia.com/social-­‐‑media-­‐‑stats/top-­‐‑50-­‐‑branded-­‐‑facebook-­‐‑fan-­‐‑ pages  

http://online.barrons.com/news/articles/SB5000142405311190360110457945124108 3847428  

http://lukeacrawford.wordpress.com/coffee-­‐‑shop-­‐‑aesthetic-­‐‑study/  

   

 

Starbucks Media Plan  

As a final project for my Intro to Media course at Columbia College Chicago, I completed a Media Plan for Starbucks Coffee Company. I give m...

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