Media Plan: Starbucks

Michael Spinella, Marisa Del Priore, Donavan Farrish, Stacee Becker, Elizabeth Pawlowski

Media Objectives
Reinforce brand image in consumers mind
Develop a media strategy that involves advertising Starbucks specialty coffees in both traditional and non-traditional media outlets

Increase Starbucks Profitability

Media Strategies
To build the brand in mediums which will involve consumers more actively in the process of marketing Starbucks To extend amount of mediums to portray brand quality To gain maximum exposure to result in gain in revenue To build brand awareness to guarantee subsequent purchase of product The media plan will generate interest by connecting to the public

Target Audience Analysis

Demographics
Total Population Size 15-29 64,728,191 20.9% 30-39 40,141,741 13% $24,143 $54,024 40-49 43,141,741 14.2%
More than 150 million Americans (18 and older) drink coffee on a daily basis, with 65 percent of coffee drinkers consuming their hot beverage in the morning.

Median Household Income Householder under 25 years Householder 25-44 years

Householder 45-64 years

Gender Male 18-49 Female 1849 24.2% 23.9%

$60,683
Family Households
Families

51.4 million Americans living in multigenerational homes.

77,538,296 66.4%
Household Size Family Size 2.58 3.14
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Average US Census Bureau American Fact Finder, Profile of General Population and Housing Characteristics: 2010 Demographic Profile Data Median Household Income Past 12 Months2010 American Average Community Survey

Recommendations
Television Broadcast NBC Cable USA Newspaper New York Post Page Size Magazine Wall Street Journal WWD The New York Times Magazines Allure Cosmopolitan Elle Glamour GQ InStlye InTouch Internet Facebook Engagement Ads PerezHilton
Simmons Spring 2010 NCS Adult Survey
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ABC

TNT
TBS FX ESPN

Outdoor Billboards Bus Taxi Subway/Train

Lucky Rolling Stone

Rachel Brynes 24, New York NY

- Meet Rachel. She is a confident individual who is graduating with a masters degree. She considers herself a tech savvy individual. She is a media guru and keeps her self updated through online news, magazines and various social medias.

David Martin, 35, Los Angeles CA

Theresa Clark, 45, Ft. Lauderdale FL

-Meet Theresa. She is a hard working mom that juggles a career and family. She lives in a multigenerational household, which includes her college age son and mother. She enjoys watching shows on prime time television and also keeps herself informed by early morning TV news.

-Meet David. He is an ambitious individual who is just starting his own restaurant business. He believes its very important to have a strong knowledge of his market. He likes to stay informed using a variety of medias such as newspapers and TV news.

Magazine Rationale
InStyle
Median age 36 HHI income $50,000 + 72 % Education Grad college + 75 % Employed 71 %

Glamour
Total Education any college 67 % audience aged 18-49 81 %

Median HHI Own home 64 % Median HHI Employed 65 income $63,594 % Married 46 % $77,993 Managerial 26 With children 50 Managerial % % position 31 % *Readers of these magazines are highly employed in professional and managerial careers high HHI which permits the purchase of expensive coffee Our target audience also matches the ages of these readers

GQ Magazine Magazine Rationale

GQ
Total audience Professional 18 49 83 % position 49 %
Median HHI $100,000 Education/coll ege 70 %

Allure
Median age 32.5 Median HHI $66,386

Education/C Employed 68.3 ollege 66.6 % %

The target for Starbucks 18-49 has a 195 Simmons Index to get at the top of their career readers of these magazines have a high household income enabling them to purchase expensive coffee target readers also match the age of our target audience
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Magazine Rationale
Rolling Stone
Audience Adults aged 18-54 Employed 72 % Professionals 23 % Managerial 23 %
College grads 64 % Grad college 28 % Attending college 14 %

Lucky
Median age 35.3 Education College graduate 44 %

HHI $50,000 + 61 % HHI $150,000 + 14 % HHI income $100,000

Median HHI income $82, 293

Employed 53 % Professional 36 %

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Magazine Rationale
Elle
Total audience Median HHI 6,302,000 $71,927 HHI income $75,000 + 44.4 %
Median age 34.2 Ages 18-34 51.7% Ages 25-49 55.4 % Any college 70.0 %

InTouch
Median age- Women 85 % 32 years old Men 15 %

Total Median HHI audience 7.9 $67, 496 million

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Magazine Index Numbers

Magazine Glamour GQ InStyle MRI Index 175 104 168 Simmons 205 170 222

InTouch Lucky
Allure Cosmopolitan Rolling Stone

129 111
199 157 103

186 176
196 168 174

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Newspaper Rationale
Womens Wear Daily
Circulation Total Audience Median Age 56562 192,311 42.5

Wall Street Journal

Affluent Readers Paid Circulation College Degree or higher Age 25-54 Average HHI 2,881,000 1,613,062 88%

Page Six Magazine

25-54 Attended College Household Income over $65K Above $100K 69% 64% 51%

Mean HHI
EducationCollege Degree

$214,000
82%

35% 257,100

32%

Research* has shown that Starbucks core customers enjoy getting their news from national newspapers. Additionally, trends show that people prefer to get their news from more sources. Starbucks customers have a high level of interest in staying current in national and global affairs and often look to newspapers as their way to stay connected. Additionally we chose news papers with college educated readers with high income who would be more likely to purchase Starbucks coffee.
USA Today on sale in Starbucks nationwide. Press Room. http://www.usatoday.com/marketing/media_kit/pressroom/2010/releases/031510_usatoday_and_starbucks.html

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Viewership Among TV Stations- Rationale

Today Show/NBC (5.49 million) GMA/ABC (5.14 million) ESPN (554,500)

Broadcast higher viewership Network less money Tried to cover all aspects of television and chose time when the target is watching the most.

USA (555,700)
Daytime (1,626,000)
Today Show: Morning shows are best to reach the audience. This is when they are preparing themselves for day. This is the time of day that coffee is purchased therefore the best time to reach the target. 6 months out of the year (May-July, October-December) These months are when Starbucks coffee is purchased the most due to new flavors and 30 spots each three month segment

GMA: 2, Two Month segments (25 Spots each), FebruaryMarch, OctoberThis is when fall flavors are being released as well as promotional cups. Daytime: Chose times when ratings would be high. Such as times when new shows are being released. (April-May, September-October)

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Television Spending
$3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 NBC/Today Show ABC/GMA USA

TBS
FX ESPN

Total: $11,275,325 Number of spots are evenly spread Higher costs- Ratings, Rates For USA,TBS, and ESPN we chose the summer months. Because of the summer programming there is high viewership. Furthermore, most sports are in the midst of big games during these times. On FX we advertise during the times of year where other TV advertising is scarce or non existent.

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Out of Home Rationale

Outlets Buses Large Billboards Subways Taxis Males 18-49 149 108 118 155 Females 18-49 152 123 140 143

Given data from Simmons research, it can be seen that both male and female Starbucks drinkers pay a good amount of attention to out of home advertising. Even though it can not be measured exactly who sees these Ads, we know that a large amount of people are exposed to it within the top 20 DMAs.
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Internet Rationale
Website Facebook.com Visitors 50 Million Daily

PerezHilton.com 408,258,454
Starbucks currently has a very active presence on social media websites for they hold accounts on sites such as FaceBook, Twitter, Instagram, YouTube, Tumblr, and FourSquare. Currently, we plan on just advertising on Facebook with engagement ads and Perez Hilton to stay within budget constraints. In future years we plan on advertising more with digital newspapers and magazines.

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Product Seasonality
Heavy Advertising will be done during:
The summer months promoting summer time beverages such as frappuccinos, lemonades, and smoothies. The fall months promoting beverages such as the Pumpkin Spice Latte. The Christmas/Holiday season promoting their signature red holiday cups filled with beverages such as Christmas Blend Coffee, Gingerbread Latte, Spicy Eggnog Latte, Caramel Brulee Latte and Peppermint Mocha Latte as well as seasonal treats.
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Budget Allocation

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Recommended Media Selection and Cost

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Magazines

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Newspapers

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Out of Home

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Television

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Internet

http://www.nickunsworth.com/wp-content/uploads/2011/01/Nick-Unsworth-FB-Ad-Blueprint.pdf

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Flow Chart

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Other Tactics Considered But Not Recommended

Advertise during prime time television
Late in the evening consumers are no longer in the mind set to purchase caffeinated beverages (morning purchase).

Advertise to coffee consumers in niche magazines

Although in our target market, a Starbucks AD would feel out of place among very specific niche product ADs.

Advertise on the front or back cover of magazines.

Very expensive with a high price on CPM forcing Starbucks to advertise less frequently in the magazines.

Advertise on the radio

Many of the people we are trying to reach do not pay attention to radio ads and use more satellite radio stations with minimal commercial interruptions.
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Alternative Plans with Fluctuation in Budget

Increase in Budget:
Internet: advertise on electronic forms of magazines and newspapers. Use of product placement into television shows and movies. Advertise more on TV Advertise on the radio

Decrease in Budget:
Advertise in the same magazines less frequently. Buy smaller sized ads in newspapers. Advertise on smaller billboards in the 20 DMAs.

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Decision Dates
With flexible time schedule we can move around when we are planning on advertising.
Cancellation of advertising should be done as soon a possible .
Magazines go to printing a month before publishing so cancellation should follow accordingly.

The most flexible movement of advertising is in newspapers for they go to printing only a few hours before publishing.

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Response to Client Concerns

Why is there minimal variety usage of Internet medias in your media plan?
We felt that we would be able to best reach our target based on multiple platforms. Internet Media is significant however we decided to place the most emphasis on Facebook advertising because it would provide the greatest amount of impressions for this group.

Why is mobile left out of your media plan?

We saw that Starbucks already had strong media influences in mobile media. We felt that our efforts and media dollars would be better suited in other platforms.

Moving forward we plan to:

Reinforce the Brand Image- We will engage consumers who are already familiar with the brand. Our strategy will create a stronger bond with the consumer, creating consumer loyalty. Raise Awareness- We plan to generate multiple impressions to acquire new Starbucks customers.
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