Media Plan for
Starbucks Coffee
By Allison Copens
Wes Young
Dennis Rudasill
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Table of Contents
S itu atio n a l A n a ly sis
Product Evaluation
Target Market Consumer
Evaluation
Sales History
Product Distribution
SWOT
Competitive Analysis
Advertising History
Pages
2-4
2
2
3
3
3-4
4
4
M a r ke tin g G o a ls
M e d ia O b je c tive s
Media target
Geography
Seasonality
Reach and frequency goals
Creative implications
Promotional Support
5
5
5
5
5
5
5
M e d ia S tr a teg ies
M ed ia Ta c tic s
M ed ia S c h ed u lin g a n d C o st
Pie Chart
Flowchart
Budget Worksheet
P la n P er fo r m a n c e
Peak 4-week GRPs
Summary
A pp en d ix
Cost Calculations
Formula Sheets
Rates/ Research
6-7
8
9
9
10-11
12
13
13
13
14+
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Situational Analysis
ProductEvaluation
Starbuckssstrivestobuyandgloballysellthefinestcoffeestheworldhastooffer.The
companysellsmorethan30blendsofcoffee,inadditiontohandcraftedbeverages,freshfood,
merchandiseandconsumerproductslikeFrappucino.Thenumberofstoresmakesforextreme
easeofaccessandthewideproductvarietyallowsforeveryonetocreatehisorherown
favorite.Thecompanyisattheforefrontofmaximizingcorporateresponsibility,including
effortstominimizeitsenvironmentalimpactandmaximizeitscompliancewithFairTrade
regulations.
TargetMarket
Demographics:
o Age:2534withasecondarymarketof1824
o Sex:MaleandFemale
o Income:Averageincomeof$60,000ormore
o Race:WhiteandAsian
o MaritalStatus:MarriedorSingle
o Education:GraduatedCollegeormore
Psychographics:
Thetargetmarketiseducatedandaffluent.Thoseinthemarketarestudentsor
professionalsinurbanareaswithinterestsincultureandtheartsanda
disposableincome.Consideringtheirplaceinlife,thoseinthemarketmayhave
youngchildrenandbelookingintobuyingtheirownhome.
Geographics:
Penetrated:West
Opportunities:NorthandEast
UsageHabits:
TheaverageconsumptionintheUnitedStatesis3.1cupsofcoffeeperday.
ConsumerProfile:
SippinSuzySuzygraduatedcollegethreeyearsagowithanaccountingdegree.
AftergraduationshemovedtoChicagowithherdentistfiancatthetimeand
theygotmarriedayearlater.Aftershegotpregnant,sheandherhusband
decidedtobuyahouseinsteadofrenting.Shehadherbabyaboutayearago
andnowtheyareintheprocessofmakingtheirhouseahome.
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
SalesHistory
In2008,Starbuckshadanetrevenueof$10.4billion,a10percentincreasefrom2007.
However,thiswasalsothelowestmarginofgrowth,downfrom21percentin2007.Forthe
firsttimeinitshistory,Starbuckshadtoclosestores.
ProductDistribution
Starbuckshasmorethan8,000storesworldwide.TheirlargerstoresarelocatedinIndiana,
WashingtonD.C.,NewYorkCity,ConnecticutandCalifornia.Morethan1,000oftheirstores
arelocatedinSupermarketlocations.
StarbucksandKraftFoods,Inc.havealicensingagreement.Kraftisinchargeofdistributing
StarbuckswholebeanandgroundcoffeestosupermarketsacrosstheU.S.Starbucksalso
producesandsellsbottledcoffee,icecream,andalineofpremiumteastosupermarkets.
SWOT
Strengths:
o
Industrymarketleader
o
Strongbrandloyalty
o
Highbrandrecognition
o
Greatpartnersandempoweredemployeeskeepthecompanystrong
o
Globalized
o
Storesareallowedtohaveindividuality(ex.Chalkboards)
o
HelppromotedifferentauthorsandartistsbysellingCDsandoffering
booksignings
o
SupportsocialissuesliketheFairTradeOrganization,literacycleanwater
andhealthissues
Weaknesses
o
Culturedifferences
o
Ex:StarbucksopensmuchearlierthanIrishcoffeehousesand
somefeelthattakesawayfromtheIrishculture
o
Narrowproductlineforoverseasclients
o
Overexpansion
o
Highpricedgoods
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Opportunities
o
Starbuckscouldaddmoretoitsmenulikesandwiches,breakfastfoods
andmoredesserts.
o
Starbuckscouldalsosellmoreproductslikecoffeemakers,espresso
makers,IPodStands.
o
Newdistributionchannels,likedelivery
o
Thereisstillalotofroomforexpansionoverseas
Threats
o
Consumertrendsawayfromcaffeine
o
Increasingfastfoodrestaurantsaremakingspecialtycoffee
o
McDonalds,DunkinDonuts,TimHortonsandNestleareall
creatingspecialtycoffeedrinks
CompetitiveAnalysis
StarbucksprimarycompetitionisDunkinDonuts,whichboasts8,835locationsin31countries.
In2008,globalsystemwidesaleswere$5.5billion.
BehindDunkinDonutsisMcDonalds.In2006,McDonald`sintroducedpremiumroastdrip
coffee.In2007,theyintroducedicedcoffeesandbegantestingmoreespressobasedspecialty
coffeesinsomeU.S.markets.McDonaldsattributesatwopercentsalesgrowthtoitspremium
coffeeline.
OthercompetitorsincludeotherquickservicerestaurantslikePanera,aswellaslocalcoffee
shops.
AdvertisingHistory
Starbucksusestheleastamountofdollarsformassmediaadvertisementswhencomparedto
otherrestaurantchains,in2005.Today,Starbucksisbeginninganewadvertisingcampaign
thatwillclearlydefinetheStarbucksstory.Theywantthisnewcampaigntosilenceanyrumors
whiletellingthepublicmoreaboutStarbuckshistory.Theyarealsoworkingtocombat
McDonaldsMcCafebyshowingStarbucksasdistinctandsuperior.Theirtaglinewillbe,its
notjustcoffee.ItsStarbucks.
Theyarecurrentlytheleaderinthemarket.Theirnewcampaignisworkingtoposition
themselvesasaclassabovetheircompetitors.
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Marketing Goals
Tosustainsalesfromthepreviousyear
Media Objectives
MediaBudget:
Thebudgetforthiscampaignwillbe$25million.
TargetAudience:
Advertisingshouldbedirectedtowardourprimaryaudience,whichincludeswhiteandAsian
malesandfemalesages2534withanaverageincomeof$60,000ormore.Advertisingshould
alsoappealtoasecondarymarketofyoungadultsage1824.
GeographicCoverage:
WearegoingtocampaignnationallytosupportourstoresacrosstheUnitedStates.
PatternofScheduling:
UtilizingyearroundmagazineandInternetadvertisementswillreachthemajorityofourtarget
market.WhiletelevisionwillbeusedinOctober,December,JuneandJulytosupport
seasonallyspecificdrinks.
Reach/frequency:
Weareplanningonreaching70percentofourtargetaudiencewithafrequencyof10.
Starbucksisaproductpurchasedoftenthereforeitisimportanttohaveahigherfrequency,
causinglowerreach.
CreativeImplications:
Starbuckscoffeehasnocreativeimplications.
PromotionSupport:
Wearegoingtohighlightourseasonaldrinksicedteas,pumpkinspicelatt,peppermintwhite
chocolatemochawithtelevisionadsandaCDgiveawaypromotion.Witheachpurchaseofa
ventiseasonaldrinkcustomerswillreceiveafreeseasonalsoundtrack,highlightingnewartists.
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Media Strategies
Budget:$25million
TargetAudience:
MagazineslikeInStyleandGQattractamajorityofouryoung,uppermiddleclasstarget.
InStylereachesthewomenofourtargetandGQreachesthemen.Oursecondarymarketalso
readsthesemagazines.
Top40andotherpopularandhitsstationsarebesttoreachourtargetduringtheir
commutes.Ouryoungtargetcontinuestobeattractedtothelatestmusic.
ThetargetwillseeInternetadsastheysurftheWebthroughouttheirday.
TVspotsoncablestationslikeFoodNetworkandHGTVwillhavethehighestviewershipforour
target.Thesestationshaveprogrammingthatappealstoourtargetanddaytimeistheperfect
timetoreachourtargetmarket.
GeographicCoverage:
AdsinnationalmagazineslikeInStyleandGQpositionthemselvesasmagazinesfortheyoung
andcultured,likethemenandwomenofourtargetaudience.UsingtheInStyleGQ
combinationreachesbothmenandwomen.
Nationalspotsoncablewillhelppromoteourseasonaldrinks.Thegrowingpopularityof
nationalcableTVisagoodwaytoreachourfragmentedtargetmarket.
Purchasingspotsthroughsyndicatedradiowillensureconsistencyandprovidehigherreach
andfrequencyamongthetarget.
PatternofScheduling:
Magazineadswillrunmonthlyfortheentireyearoftheplantoprovideahigherfrequency
amongloyalreadersinthetargetaudience.
Internetsearchwordswillbepurchasedfortheentireyear.
RadiowillbepulsedwithemphasisduringtheTVofftimesJanuarythroughAprilandAugust
andSeptember.
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Reach/Frequency:
ReachwillbebuiltthroughMagazine,TVandInternetbecausethemagazineshavehigh
circulationandRPC,cablenetworkshavequalityprogrammingandeveryoneusesInternet
searchwords.
Radiowillachievehighfrequencybecauseeverymorningonthewaytoworkourtargetmarket
willbeexposedtoouradvertisement.
CreativeImplications:Starbuckshasnocreativeimplications.
PromotionSupport:TVwillbeusedtosupplementmagazineandradioadsfortheseasonal
drinkpromotionsbecausethehighreachofTVwillgetthewordouttomoreofthetargetthan
radioandmagazinesalone.Theseseasonaldrinksattractmorecustomersingeneral.
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Media Tactics
Magazine
InStyle
o Fullpage,fourcolorad
o Runofprint
GQ
o Fullpage,fourcolorad
o Runofprint
Television
Cable
o 30secondspot
o FoodNetwork,HGTVdaytime
o Suggestedprogramming:PaulasHomeCooking,ColorSplash
Radio
National
o 30secondspot
o MorningDriveTime
Internet
SearchWords
o Coffee,espresso,latte,cappuccino,frappuccino,iced,bean,beanery,creamer,
steamed,milk,soy,chai,roasted,hot,cinnamon,nutmeg,classicsyrup,flavorings,
Starbucks,SBUX
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Media Scheduling and
Cost
MediaSpending
Internet
8%
Magazines
15%
Radio
30%
TV
47%
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Flowchart
Quarter 1
MEDIA
NATIONAL
Magazine
InStyle
GQ
Radio
Network Radio
Morning Drive Time
Radio TOTAL
TV
Cable TV
Daytime
TV TOTAL
Internet
Search Words
Internet TOTAL
January
15
22
29
X
X
February
13
19
26
X
X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
March
12
19
X
X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
TOTAL
100
100
1760
Quarter 2
1MEDIA
2
NATIONAL
Magazine
InStyle
GQ
Radio
Network Radio
Morning Drive Time
Radio TOTAL
TV
Cable TV
Daytime
TV TOTAL
Internet
Search Words
Internet TOTAL
26
April
9
16
23
X
X
50
50
100
100
30
May
14
21
28
X
X
50
50
100
100
50
50
100
100
June
11
18
25
X
X
50
50
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
TOTAL
1960
daytime cable GRP
radio
400
200
10
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Quarter 3
MEDIA
NATIONAL
Magazine
InStyle
GQ
Radio
Network Radio
Morning Drive Time
Radio TOTAL
TV
Cable TV
Daytime
TV TOTAL
Internet
Search Words
Internet TOTAL
July
16
23
30
X
X
August
13
20
27
X
X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
September
10
17
X
X
100
100
50
50
50
50
50
50
50
50
100
100
100
100
100
100
100
100
100
100
100
100
TOTAL
TOTAL
100
100
1960
Quarter 4
1MEDIA
1
NATIONAL
Magazine
InStyle
GQ
Radio
Network Radio
Morning Drive Time
Radio TOTAL
TV
Cable TV
Daytime
TV TOTAL
Internet
Search Words
Internet TOTAL
24
October
15
22
29
X
X
November
12
19
26
X
X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
December
11
18
25
X
X
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
2160
11
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Budget Worksheet
First Qtr
Magazine:
Third Qtr
Fourth Qtr
TOTAL
45
45
45
45
180
15
Rate
$121,968
$121,968
$121,968
$121,968
$487,872
Cost
$731,808
$365,904
$365,904
$365,904
$1,829,520
GRP
15
15
15
15
60
15
Rate
$121,284
$121,284
$121,284
$121,284
$485,136
Cost
$727,704
$363,852
$363,852
$363,852
$1,819,260
Radio:
GRP
400
200
200
200
1000
Morning Drive Time
CPP
$7,500
$7,500
$7,500
$7,500
$7,500
Cost
$3,000,000
$1,500,000
$1,500,000
$1,500,000
$7,500,000
TV:
GRP
400
400
800
1600
Cable TV
CPP
$7,337
$7,337
$7,337
$7,337
$7,337
Daytime
Cost
$0
$2,934,800
$2,934,800
$5,869,600
$11,739,200
Internet:
GRP
1,300
1,300
1,300
1,300
5,200
105,430
105,430
105,430
105,430
421,720
CPM
$5
$5
$5
$5
$5
Cost
$527,150
$527,150
$527,150
$527,150
$2,108,600
GRP
1760
1960
1960
2360
8040
18170
10073
10073
10073
5208
$4,986,662
$5,691,706
$5,691,706
$8,626,506
$24,996,580
InStyle
Magazine:
GQ
Search Words
TOTAL
GRP
Second Qtr
Frequency
Frequency
Impressions (000)
Average CPP
Cost
12
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Plan Performance
Peak4Week:
TheweeksfromJune4toJuly1,July2toJuly29,Oct.1toOct.28andDec.4toDec.31areall
4weekperiodswiththesamepeakGRPs,ReachandFrequency.Theyhavea95%combined
reach,acombinedfrequencyof12.8anda4weekGRPof1,220.
Summary:
Ourplanreachesmorethan90%ofouraudienceeveryquarter,usingavarietyofmediaand
deliveringanaveragequarterlyfrequencyof20.3.OurGRPsfortheyearare8040.Using
magazineswebuiltourreach,andwithradioandInternetwebuiltfrequency.Highlighting
StarbucksseasonaldrinkswithTVimprovedbothourreachandfrequency.Wedidallofthis
for$24,996,580,morethan$3,000underbudget.
13
MediaPlanStarbucksCoffee
AllisonCopens,WesYoungandDennisRudasill
Appendix
14
