Spring 2016 Starbucks CampaignAnnie Vescolani, Hannah Mosele, Will Brown, Blake Pleasent, and Debra Isbell

Background Starbucks is an American coffee company and coffeehouse chain. Starbucks opened in 1971, to a single store in Seattle's’ historic Pike Place Market. The narrow storefront offered fresh-roasted whole bean coffee, that grew to be named Starbucks, the world’s finest coffee. Starbucks aims to offer a full and rewarding coffeehouse experience by offering a selection of premium teas, fine pastries, and other delectable treats to satisfy the taste buds. Starbucks is committed to the highest quality of coffee in the world, while engaging customers and communities to do business responsibly.

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Executive Summary What is Starbucks asking us to do? Develop a marketing campaign that shifts consumer perspective to see Starbucks as both a coffee and food destination opposed to just a coffee destination. Starbucks food is high quality, delicious and available at anytime of the day.

Executive Summary: We made it our mission to come together and explore the variety of food options that Starbucks offers. After trying numerous breakfast and lunch sandwiches we knew how to research the dilemma that Starbucks is currently facing to reach Millennial like us.

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Secondary Research The Asks:• How many people eat OOH and

what do they think of the experience

• Starbucks Customer Satisfaction

• How likely are people to purchase breakfast or lunch food with their coffee?

What we found: Via Statista • 15.9% of the respondents stated that they

visited quick service restaurant three times a week.

• 28.2% visit at least once per week • Taste is the most important factor when it

comes to restaurant experiences according to 94% of U.S. consumers.

• Brand value of the 10 most valuable fast food brands worldwide in 2015 (in million U.S. dollars) – Starbucks was ranked 3rd after MCdonald's and Subway.

• Statista conducted a survey of the likelihood of consumers to try the lunch menu at Starbucks

• During the survey, 27% of respondents said they were somewhat likely to try a lunch menu at Starbucks if the chain offered more options.

63% said not likely at all.

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Primary Research We conducted an online survey that resulted in feedback from all age ranges. We were able to generate 105 responses which helped us build insight on consumer habits.

We also learned that although Starbucks is not top of mind for breakfast and lunch food, a majority of participants had tried Starbuck food items before.

How often do you visit Starbucks?

31% of respondents frequent Starbucks once a week or more24% of respondents were likely to go to Starbucks for breakfast. 7% of respondents were likely to go to Starbucks for lunch.

How do you perceive Starbucks food quality?

45.8% of respondents ranked the quality of breakfast items as “average”. 50% of respondents ranked the quality of lunch as “average”.

Taste and quality were ranked as the top two most important factors in deciding

where to eat. 6

Primary Research We conducted a focus group resulting in 10 participants. In this, we purchased a variety of breakfast and lunch sandwiches from Starbucks. We then offered samples to each participant, in exchange for their opinions on the various food items. By video recording their feedback and taking notes on their observations, we were able to gain further insights.

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All ten participants agreed that the presentation of the food is incredibly important to them. It was also concluded that Starbucks food presentation was poor. Participants think of other cafes and/or restaurants for food options before Starbucks.

“...honestly though, who goes to Starbucks and is like I’m going to eat there? It’s more like I’m gonna grab my coffee quickly and go to class or work.” (Jake, 22).

Starbucks is not seen as a grab-and-go food option. Instead, participants saw Starbucks as a superior coffee place. “They should put as much time and quality into their food as they do to their coffee” (Sebastian, 25).

SWOTSTRENGTHS -Well known, easily recognized-Loyal customers-Convenient to grab-and-go-Vast number of locations -Perceived as an altruistic company

WEAKNESSES -Not top-of-mind for food-Food is prepackaged-Food perceived as unhealthy-Limited options in food choices-Food options incomplete meal/small portions

OPPORTUNITIES -Increase in numbers of people eating at QSRs/out of home-Rise in popularity of upscale QSR

THREATS -Competitors (ei McDonald's, Panera) are better est’d as grab and go options-Competitors are less expensive-Rise in healthy food trends

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The Target Lower to Upper Middle Class$30,000 - $90,000

College Students

The emphasis on grab & go food options benefits college kids who need a quick bite to eat before class

Ages 18 - 30

Loyal CustomersWe want our weekly visitors to begin buying both food and drink upon arrival

The Conscious Consumer

We always emphasize quality in our coffee, now consumers need to realize we do the same with our food.

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Target Profile - Jane & Doug

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Target Profile - Jane & Doug

Jane and Doug leave their two-bedroom apartment at the same time every morning during the week. The first stop they make is at their local Starbucks, around 7:25am. Jane purchases a grande, black coffee and a blueberry muffin. While Doug goes for the venti decaf coffee with cream, no sugar, and a cup of oatmeal. The average amount they spend each morning is $10.35.

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Margaret

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Competitive OverviewDunkin’ Donuts, McDonalds, Panera, and other grab-n-go establishments pose the biggest threat to Starbucks new food initiative. Dunkin’ Donuts is who we want to beat. They’re currently slipping up, so we need to take advantage.

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Competitive OverviewDunkin’ Donuts

Sells both lunch and breakfast sandwiches

Offers any size coffee for .99 cents between 3pm-6pm everyday

Just as well known for their food options as they are for their coffee

Sales have fallen for Dunkin’ Donuts by .8% in the latest quarter

Their growth is slowing down, causing them to shut down over 100 stores in recent months

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Competitive OverviewMcDonalds

McDonald's coffee is less expensive than Starbucks

A large hot or iced coffee costs $1

Breakfast accounts for a total of 25% of the McDonald’s chain sales

They plan to continue contributing to coffee culture by adding different flavored coffees

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Our Problem

Starbucks is known for their coffee. Not their food.

Customers are hesitant to try food from Starbucks because it is not top-of-mind and/or

seen as an unappetizing option.

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Key Insight

If the consumer knew our food was just as good as our coffee, they would purchase

our products over the competitors.

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Measurable Objectives Starbucks would like to increase the awareness around their food options by 10% by the end of Quarter 1 of 2017

We would also like to increase sales by 15% by the end of Quarter 1 of 2017

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Media Strategy Outdoor, Magazines, and Social Media

Why?Using extensive research and data sourcing, it was clear to see that

Cosmopolitan, Rolling Stone, and GQ magazine had the highest percentage of readers in our target audience. Thus, 40% of our

budget went into magazine advertisements so we could reach a wide audience.

The real Benjamins / Tubmans went into Magazine and Outdoor

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Media Strategy

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Outdoor and Magazines are the main focus.

38% to Outdoor - 40% to Magazines

Our target demographic is young, but we are not dependent on paid social media promotions to sell this idea

If our creative is placed throughout urban cities, then our target audience will share it via social media. The work is done for us and not on our dime.

Media Selection

Print

Magazine

● Cosmopolitan● GQ● Rolling Stone

OOH● Bus● Billboard

(Digital and Traditional)

Social● Facebook Ads● Instagram

Promotions● Snapchat● Twitter

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Media Budget

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Objective and Brand Imperatives Objective:

Change customers perception of Starbucks food to reflect that Starbucks drinks and food are equally important to the

brand. This will be achieved by showcasing food items so that these items are more closely tied to brand. In turn, food items will gain a seal of approval that is uniquely

Starbucks’.

Brand positioning: Starbucks is top-notch source for not only drinks but also, food.

Show: we have more than coffee or tea to offer our customers.

Musts: clean, sleek and modern execution that highlight food options with tagline, “More than coffee.” Must include logo.

Social Media/MediaBus Shelter: Pop-Up Cafe

-Earn cool factor by appearing in random locations (cities with 300,000+ population), nationwide unannounced

-Locations include (but not limited to):

Chicago Portland DenverNew York Austin LAPhoenix San Diego JacksonvilleNashville Columbus Charlotte

-We expect to earn coverage in both traditional and social media through this tactic

Snapchat filter: Interactive Sandwich

-Participants open and close his/her mouth

to simulate eating a Starbucks sandwich.

The more a participant opens and closes

his/her mouth, the more the sandwich

disappears

-As a promotion, if users screenshot

themselves “eating” the interactive

sandwich they can show screenshot image

for a discount on featured food item

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Thank You!Any Questions?