Starbucks Media Plan

11
Starbucks Coffee www.starbucks.com Luke Crawford EMail: [email protected] Media Plan

description

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 my analysis of current market research using MRI+ Data and other sources, and suggest media purchases to best a meet marketing and business objectives.

Transcript of Starbucks Media Plan

Page 1: Starbucks Media Plan

   

Starbucks  Coffee   www.starbucks.com    

Luke  Crawford  E-­‐‑Mail:  [email protected]  

Media Plan  

Page 2: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 2  

 

   

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)  

 

   

Page 3: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 3  

 

   

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  

 

 

 

Page 4: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 4  

 

   

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”  

 

 

Page 5: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 5  

 

   

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.  

Page 6: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 6  

 

   

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  

presence  and  to  aid  in  retention  with  other  forms  of  media  throughout  the  year.  • 500,000  paid  post  boosts  per  month  on  Facebook  to  keep  consumers  talking.  • 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.  

Page 7: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 7  

 

   

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  

• January  –  April  &  August  –  December  (9ti)  

o Sunset  (227)  

§ 1  page  ad  

• January  –  April  (4ti)  

§ ½  page  ad  

• September  –  December  (4ti)  

o Real  Simple  (196)  

§ ½  page  ad  

• January  –  April  (4ti)  

• Interactive  o Online  Impressions  (3,000,000/mo)  

§ Facebook  (500,000  boosted  posts/mo)  

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

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

§ Hulu    

§ Netflix  

Page 8: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 8  

 

   

• TV  o Daypart,  25  rating  points  /  week,  for  8  weeks  

§ No  channels  were  supported  by  MRI+  Data.    

Page 9: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 9  

 

   

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  

 

     

     

     

     

 

Page 10: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 10  

 

   

     

     

     

     

     

     

   

     

   

Page 11: Starbucks Media Plan

12/4/13   Starbucks  Coffee   Media Plan 11  

 

   

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/SB50001424053111903601104579451241083847428    

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