Competitive Analysis

By: Stacee Becker, Marisa Del Priore, Donavan Farrish, Kathleen

Kielpinski, Elizabeth Pawlowski, Michael Spinella
1
Executive Summary
Starbucks Corporation has been the most successful
coffee chain in the past few decades using their
aggressive expansion strategies to push out much of its
competition.
Starbucks has focused on creating a dense network of
stores all around America, while also opening up new
locations all around the world.
They are currently leading the retail coffee market with
selling their coffee for a premium price to increase their
profitability.
McCafee
2
Problem
Will the allure of gourmet Starbucks coffee be
maintained or will more appealing options threaten the
success of Starbucks primary product?
Can advertising significantly help maintain Starbucks
image?
A good place to start involves evaluating the current
market for coffee and do a competitive analysis to see
the market performance and to determine the extent to
which designer coffee appeals to current consumers.
McCafee
3
Overview On Product Growth
Starbucks surpassed Wendys and Burger King in becoming the number
3 restaurants chain posting $9.07 billion restaurant sales last year.
It is expected to gain in one of the fastest-growing day parts in
restaurants for breakfast.
Its measured-media budget is a fraction of what come of the other top
chains spend.
Starbucks only spent $94.4 million in media spending compared to
McDonalds spent about $887.8 million in the United States only in 2010.
Starbucks has worked with agencies such as Omnicoms Goodby
Silverstein & Partners.
Breakfast is the final frontier of growth in this country and coffee is
growing as well. David Palmer UBS restaurant and packaged food analyst.
AD Age
4
Major Competitors
Dunkin' Donuts
McDonalds
Caribou
Coffee


5
Store Locator
Has 12,500
coffee shops in
the United States
McDonalds McCaf
Starbucks Dunkin Donuts
Has 6,700 coffee
shops in the
United States
Caribou Coffee
Has over 31,000
restaurants World
Wide.
Has 415 coffee
shops in 16 States
in the United
States
6
Starbucks vs. Dunkin Donuts
The taste-test advertisement directed towards Starbucks,
actually naming the brand in the commercial, surveying
coffee drinkers. More hardworking Americans preferred the
taste of Dunkin Donuts over Starbucks.
Within a week of the ads launch about 50,000 people
visited dunkinbeatsstarbucks.com
It is a site that communicates the hard-hitting competitive
message with clarity and humor. Entering this site you can: Learn
the Truth (presenting Dunkins coffee story) or Spread the Truth
(sending an e-card to your friends who drink Starbucks)
Weekly traffic to DunkinDonuts.com jumped 61%



Starbucks vs. Dunkin Donuts
Small is the New Tall.
AD AGE
8
Starbucks vs. Dunkin Donuts
In March 2009, the company
unveiled an alternative slogan,
You Kin Do It!, and launched
a $100+ million ad campaign to
promote it.
The campaign slated to run
through 2009, includes radio,
print and outdoor advertising, in
addition to in-store point of
purchase, special events, and
sports marketing.
Online marketing, often
leveraging the Boston Red Sox
and the other New England
icons.
Dunkin Donuts Press
9
Starbucks vs. McDonalds
McDonalds Billboard in Seattle
Starbucks vs. McDonalds
McDonalds has offered breakfast for years, and over the
last couple years has been heavily marketing its McCaf.
Lines of coffee drinks all while continually rolling out new
drinks of both the coffee and non-coffee variety, such as
smoothies and frappes, McDonalds version of the
Starbucks frappuccinos.
Starbucks created their frappuccino for the summer
season while McDonalds introduced their frozen
strawberry lemonade, a non-coffee beverage under
McCaf.
AD AGE
11
Starbucks vs. McDonalds
Like Dunkin Donuts, McDonalds took a stab at Starbucks
during TV ads as well. The two television ads were titled
Intellectuals and Hipsters.
Along with a TV ad McDonalds set up a website
unsnobbycoffee.com to promote its Washington States
McCaf Outlets.
To email their friends about how they feel about high priced
coffee
In additional to the usual media, McDonalds makes
significant use of billboards and signage, sponsors sporting
events ranging from Little League to the Olympic Games.
AD AGE
12
Starbucks vs. Caribou Coffee
Starbucks vs. Caribou Coffee
Caribou Coffee spent $2 million on U.S. advertising in 2008,
compared to the $300,000 it spent in 2007 according to Nielsen
Monitor-Plus. (AD Week)
Analysis of visitor demographics reveals that Caribou Coffee could
possibly have more online success if they pull-in some of the same
types of online visitors as Starbucks does.
While Caribou Coffee attracts a respectable amount of young
adults (32% between the ages of 18 and 34), this does not compare
to the 42% that Starbucks attracts.
Paying for advertisements on social networking sites where
educated young adults visit frequently, such as Facebook, may
likely prove to be a wise strategic move for Caribou
Coffee. Facebook refers 3.92% of Starbucks traffic to the Starbucks
Website, while Caribou coffee lacks in Facebook referrals.

SEO Analysis
14
Starbucks vs. Caribou Coffee
Catergories Caribou Coffee Starbucks Coffee Starbucks Coffee Shops
Coffe Brand $606,600 $12,312,300.00 $26,219,100
Magazines $417,200 $11,637,100.00 $641,900
Newspaper $189,400 $10,000 $744,600
National Newspaper $604,900 $6,948,000
Outdoor $60,400 $1,699,000
Network TV $3,152,400
Spot TV $125,400
Syndication $89,200
Cable TV $8,640,000
National Spot Radio $4,134,700
15
Starbucks vs. Caribou Coffee
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
Caribou Coffee
Starbucks Coffee
Starbucks Coffee Shops
16
Media Spending
Television Campaigns
Web Campaigns
Tactical Campaigns (Giveaways and
Promotions)
Regional Campaigns

17
Television Campaigns
Dunkin Donuts outspent McDonalds 60% on coffee-
specific products in paid media $27 Million to $17 million.
Dunkin; Donuts spent 83% of its budget on TV: two-thirds
of that on spot TV and a third on cable.
McDonalds spent 97% of its traditional media budget on
spot TV to support its McCaf rollouts and on regional
promotions in 74 local markets.

AD AGE
18
Web Campaigns
Dunkin Donuts spent 15% of
its total media budget on
paid internet. This is
considered a significant
amount compared to
competitors in this category.
Ads were posted on a
number of sites
including: Yahoo,
AOL, CNN, CNBC,
MSNBC, Fox Sports,
MLB.com, Good
Housekeeping,
Cosmopolitan, and
Digg.



AD AGE
19
Tactical Campaigns for Dunkin
Donuts
In 2008, Starbucks announced it was simultaneously shutting down
all 7,100 U.S. stores for a restraining effort, Dunkin Donuts was quick
off the mark, offering 99-cent espressos.
On Tax Day, Dunkin Donuts held a special promotion to offer a free
doughnut with the purchase of a cup of coffee.
May 15, Dunkin Donuts holds its annual Free Iced Coffee Day,
giving away 4 million cups in 2008.
In June 2008, Dunkin Donuts launched its Bases Loaded
campaign, a summer iced-beverage promotion. Iced beverages
came with peel-away sticker that revealed a one-time login code
for participation in an instant-win game in conjunction with Major
League Baseball.
AD AGE
20
Tactical Campaigns for McDonalds
McDonalds promoted its national coffee promotions
with special prices.
In 2008, it showed its ice teas in combination with its
chicken sandwich and ice coffees over the summer in
the buildup to the Olympics.

AD AGE
21
Regional Campaigns
McDonalds drives a lot of promotion through outdoor and
print buys in a number of markets: Louisville KY, Chicago,
Detroit, Kansas City, MO, San Diego, and Seattle.
In December 2008, a TV campaign highlighted McCaf
Mondays, a promotion that offered customers a free eight-
ounce coffee of their choice.
Urban radio and TV ads in the Midwest regions feature
jingles for McCaf.
Caribou Coffee is offering a limited edition mug that
features Chicago landmarks such as Lakeshore Drive, Navy
Pier, and the Chicago Theatre. (Biz Journals)

AD AGE
22
Regional Campaigns
Caribou Coffee turned a
Minneapolis bus stop into a
toasty oven complete with
a ceiling mounted heating
element.
The objective was to
spread the world about
caribou Coffees new
menu items.
This helped them
differentiate them form
competition.
Corporate Eye
23
Situation Analysis
24
History of Market
Coffee is the second most commonly traded commodity in the world.
Unlike many commodities, shifts in coffee supply and demand are not
prone to price changes
A coffee tree can provide enough coffee beans to fill a one-pound
ground coffee during each growing season.
Coffee beans are the seeds of cherry-sized berried, the fruit of the coffee tree.
It takes 3 to 5 years after planting a coffee tree before it can produce
marketable coffee beans.
The bulk of world coffee production comes from the tropical highlands
of the Western Hemisphere and in the low, hot areas of Africa and Asia.
South and Central America produce the majority of coffee traded in
the world commerce. The worlds major coffee producers are Brazil,
Vietnam, Colombia, and Indonesia.
http://www.tradertech.com/information/coffeetrading.asp
25
History of Market
The United States is the worlds largest
importer of coffee: Kraft, Nestl, Procter &
Gamble, and Sara Lee are the major
roaster companies that account for
about 50% of all annual production of
coffee.
Demand of coffee is price inelastic:
when coffee prices rise, people do not
reduce their coffee consumption.
U.S. coffee consumption tends to rise in
the winter.

http://www.tradertech.com/information/coffeetrading.asp
26
Market Share
27
Market Share
28
Market
Starbucks built itself on being the worlds most powerful and
recognizable brands of high quality coffee and the unique
Starbucks Experience.
They were the first to revolutionize the coffeehouse industry
by marketing expensive, high-quality coffee as well as a
third place between work and home for customers to go
and escape the chaos of daily life.
As of 2011, Starbucks has a 32.6% market share a good
portion of its industry.
Starbucks currently has over 11,500 stores in the United
States alone.



http://www.wikinvest.com/stock/Starbucks_(SBUX)
29
Competition
McDonalds introduced the McCafe to select stores, where
customers can purchase espressos and cappuccinos priced
in the $2-4 range.
In response, Starbucks teamed up with Burger King and
began selling Starbucks Seattle Best Coffee in about 7,250
U.S. outlets selling for $1-$2.79 replacing Burger Kings BK Joe
Brew.
Dunkin Donuts is another major competitor, with nearly 5,000
stores in the U,S. overlapping with Starbucks but their
customer experience is more coffee-to-go model rather
than the third place to work and relax model.

http://www.wikinvest.com/stock/Starbucks_(SBUX)
30
Pricing
Prices for a cup of Starbucks coffee vary from state to
state here are the prices for some of the big cities:
http://online.wsj.com/article/SB123413848760761577.html
31
SWOT Analysis
Internal factors
External
factors
Strengths
Weaknesses
Opportunities
Threats

Strengths
Starbucks is seen as the biggest and best in the business-
Highly regarded coffee shop
Starbucks has a natural edge over its lesserknown
competitors in that people already associate it with a high
quality and popular experience
With high amount of locations allows them to reach a larger
market. Especially when the locations are in big cities.
Drive-Thru Stores
Also, new products quickly across a large demographic
and ensures a large exposure of clientele to prevent new 7
entrants from gaining market share
Its goal is to become a third place within its consumers
lives.
- Offers free wifi connection
- Comfortable ambiance

Source: http://www.starbucks.com/assets/company-profile-feb10.pdf

33
Brand Image
Focuses on consistency in delivering positive consumer experience stresses the
point about consumer visits to its cafes being an experience
Four store designsone for each of the four stages of coffee making: growing,
roasting, brewing, and aromaeach with its own color combinations, lighting
scheme, and component materials
They create a consistent, inviting, stimulating environment that evokes the passion
for coffee
Every barista hired for a retail job in a Starbucks store received at least 24 hours
training in the first two to four weeks. The training included classes on coffee
history, drink preparation, coffee knowledge (four hours), customer service (four
hours), and retail skills, plus a four-hour workshop called "Brewing the Perfect Cup.
Quality and keeping all aspects consist is of main concern
EX: Customers who order one pound of beans must be given exactly thatnot .995
pounds or 1.1 pounds; never let coffee sit in the pot more than 20 minutes; always
compensate dissatisfied customers with a Starbucks coupon that entitles them to a
free drink.


Source: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html
http://www.scribd.com/doc/50040066/Analysis-of-Starbucks-and-its-International-Strategy-2011
34
Unique Strategy
To capture key locations and open stores in close proximity to each
other is unique strategy for Starbucks
ensures that franchises that dont meet set achievements are
closed down
Clustering its stores in one area helped Starbucks quickly achieve
market dominance. With over 20 million regular customers per
week
Spends less than 1% of its annual revenues on advertising- Starbucks
strategy relies on word of mouth advertising.
Engaging in smart joint ventures with the right companies:
-Pepsi-Cola Co.
- New products: Hot sandwiches, new drinks, coffee liqueurs
Source: http://www.evancarmichael.com/Other/612/Starbucks-Strategy.html
35
Weaknesses
Questions to consider:
Where could Starbucks improve?
What ideas are badly ?
What should Starbucks avoid?
Entire business rests on the coffee industry
whereas other competitors, such as Dunkin Donuts, have investments in a
variety of industries.
Strong presence in the United States of America with more than three quarters of
their cafes located in the home market
Achieve a balanced portfolio by reaching additional worldwide consumers
Over-saturation of the market
High price
Competition with other low priced brands
Still Starbucks

Source: www.shahzadtc.com/pdf/SWOTTOWS.doc

36
Weaknesses
Customer standards:
In Israel, Starbucks has had a hard time taking off because it wont maintain kosher
standards.
Refuses to guarantee that milk, beverages, and baked goods sold in the companys stores
do not contain any genetically-modified ingredients.
Financials:
Increased competition- General , small coffee shops and large corporations
Customers trading down shifting to competitors with lower priced products
Declines in general consumer demand for specialty coffee products
Increased Costs:
High quality milk
Arabica coffee
Labor costs such as increased health care costs, general market wage levels and workers
compensation
New Store openings- construction







Source: http://realswotanalysis.blogspot.com/2011/02/starbucks-swot-analysis-and-
strategy.html
Source: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
37
Opportunities
New Market Opportunities Internationally
New Products:
Health drinks
Organic drinks
Energy drinks
Kid focused drinks
More bottled drinks sold in stores- Expand on distribution
Form partnerships with other coffee companies- widen market
U.S. job creation-
Accept donations at CreateJobsforUSA.org and Starbucks cafes in the
United States





Sources: http://www.reuters.com/article/2011/10/03/us-starbucks-idUSTRE7921M320111003

38
Threats
The Threat of New Entry :
McDonald's came into direct competition with Starbucks
when it upgraded its coffee in 2006
As a result, the average number of customers visiting a
Starbucks store declined from an estimated 460 in 2005 to
just above 400 in 2007
With the launch of McCafe in 2008, the competition
between the two chains intensified further.
Smaller privately owned coffee houses
Source: http://www.thestreet.com/story/10781552/cheap-coffee-starbucks-vs-mcdonalds.html
39
Threats
Bargaining Power of Buyers:
Force of the buyers bargaining power is proportional to the ability of
buyers to force down prices
differentiation involved in the specialty coffee industry and the lack of
differentiation in the basic coffee industry
Image Threat:
Anti-Starbucks Groups:
National Gun Victims Action Council (NGAC)
Unions
Petition for Good Jobs at Starbucks
Increased pay


Source:
http://coe.brown.edu/documents/StarbucksaStrategicAnalysis_R.Larson_honors_2008.p
df
Source: http://www.starbucksunion.org/
40
Distribution Channel
Starbucks.com
41
Chain of Supply
42
Chain of Supply
Starbucks is involved in the source of bean all the way
down to the brewing of the coffee
Planning involves everything from raw materials to
manufacturing to retail markets
Coffee department sorts the coffee to get the best
beans available
All products used in all processes revolve around
sustainability
Starbucks.com
43
Background Information
Starbucks is involved in every process starting with the
growing of beans all the way down to brewing the
coffee for the consumer
Everything they put into their work comes from their own
passions and inspirations


Starbucks.com
44
Plantation
All coffee must meet Starbucks standards of high quality
Starbucks organic coffee is grown using methods and
materials that have a lower impact on the environment.
Starbucks bought 269 million pounds of coffee in fiscal
2010. Some 84% of that 226 million pounds worth from
C.A.F.E. Practicesapproved suppliers.
Starbucks.com
45
Plantation to Manufacturing
Senior supply chain planning manager Kimberly A.
production planning across five roasting plants and
multiple contract-manufacturing facilities.
Starbucks currently gets its coffee from Mexico,
Guatemala, and Colombia.



Starbucks.com
46
Manufacturing to Store
Starbucks makes more then 70,000 deliveries outbound a
week to retail stores
Products being delivered include coffee, teas, ice
creams, treats and food
Their 5 manufacturing plants then ship to over 16,000
stores world wide
Starbucks provides 5 different forms of their coffee
(Whole bean, Ground, VIA, K-Cups, and Pre made filters)


Starbucks.com
47
Retailers to Consumers
There are currently over 16,000 retail stores world wide
serving Starbucks coffee.
It happens millions of times each week a customer
receives a drink from a Starbucks barista but each
interaction is unique.
With every cup, Starbucks strives to bring both their
heritage and an exceptional experience to life.
Starbucks.com
48
70s
1971- Starbucks
opens first store
in Seattles Pike
Place Market.`
80s
1982-Howard Schultz joins
Starbucks as director of
retail operations and
marketing. Starbucks
begins providing coffee
to fine restaurants and
espresso bars
1983-Developed
coffeehouse in Seattle
based on Cafes in Italy.
1984- First Starbucks caf
late served
1987- expanded to 17
stores
90s
1995- Beginning of the
Frappes- total stores
677
1997- Starbucks
Foundation starts
1998- Tazo tea
company is aquired
1999- China, Kuwait,
Lebanon and South
Korea
History

2000s
2000- Howard Schultz
transitions to chairman and
chief global strategist
2001- Introduces the
Starbucks Card, an
innovative storedvalue
card for customers to use
and reload.
2002- Starts selling Fairtrade
certified coffee in the
countries where Starbucks
does business.
2002- Establishes Starbucks
Coffee Trading Company
(SCTC)


2000s cont.
2003- Seattles Best Coffee
and Torrefazione Italia
coffee brands are aquired
2004- 8,569 Stores
2005- Orin Smith retires as
Starbucks president and
chief executive officer. Jim
Donald promoted to
president and chief
executive officer
2008- Eliminates all artificial
trans fat and makes 2
percent milk the new
standard for espresso
beverages in all U.S. stores
Present Day
2010- Expands digital
offerings for customers
with free unlimited WiFi,
Starbucks Digital
Network in U.S. stores
16,858 Stores
2012- Becomes the
worlds largest buyer of
Fair Trade coffee

Advertising and Media Analysis
51
Starbucks Advertising
Starbucks company chooses to focus on the customers in-store
experience versus producing commercials for the masses
Executives feel that improving the in-store experience will be
more effective than having advertisements and commercials
for Starbucks via mass media
The company encourages the promotion of their stores as
another home to the consumer
This is done by providing a comfortable chairs for the customers
to relax in, relaxing music, and outlets for laptops
52
Starbucks Advertising
Starbucks depends on word-of-mouth advertising through this third
home which had proved greater success than actual
commercials
Starbucks aims to cultivate brand versus traditional advertising
As stated by executive, Once youve got a brand consumers love,
they are going to increase their store patronage. Starbucks has also
done advertising more efficiently
Starbucks has advertised more efficiently by spreading all over
social media, and mobile payments
Starbucks advertising agencies include Omnicoms Goodby
Silverstein and Partners and BBDO Worldwide
53
Starbucks Advertising
The few commercials which Starbucks had created were
quite successful
One commercial featured a character drinking a double
shot drink in the morning before going to work
The band Survivor is in the background singing Eye of
the Tiger while character is drinking
Another commercial has a character named Stacey
who takes a break at work to drink a Frappuccino
beverage
54
Starbucks Advertising
Starbucks created a joint venture with Pepsi-Cola which had driven up company
sales
26 percent of viewers had admitted to admire the equality of men and women
possessed in the Starbucks commercials
Though their commercials were a success, Starbucks executives still depend on
the customers first hand experience by creating a third home coffee shop
Starbucks wants to continue their marketing and advertising efforts in this unique
way
These commercials were aired during CWs Gossip Girl
Starbucks had partnered with the CW in 2010 for an online contest. This online
contest was to show ingredients for the Frappuccino beverage, and transitions
and music into one commercial
The winning online ad through this contest would be aired during the Gossip Girl
season finale

55
Starbucks Advertising
The Starbucks company focuses on word-of-mouth
advertising not only through a third home experience,
but also through providing quality products and services
Starbucks has a slogan Uniquely Starbucks which has
played a large part in the companys success
The uniqueness of customers experience at Starbucks
results in the word-of-mouth advertising with their
customers
56
Starbucks Advertising
Their premium products with its rich taste and aroma also
results in the word-of-mouth which the company
depends on primarily
Their Perfect Cup of Coffee allows Starbucks to
emphasize on product quality which allows it to advertise
differently than most businesses
Viral marketing also plays a huge role in their advertising
campaigns and word-of-mouth advertising
57
Starbucks Social Media
Starbucks has a social media marketing strategy, as well
Their social media has created an online community with the
Starbucks brand
Starbucks is part of many social media sites, such as Facebook,
Twitter
On the company's Facebook and Twitter page, consumers are
able to express their opinions about the company through online
blogs
The company is able to join consumers during blog conversations
Discussions via blogs are another word for new media
58
Starbucks Advertisements
On May 3
rd
, 2009 Starbucks had launched a long term, multi
channel campaign. Its goal was to emphasize the unique
experience, exceptional coffee, and the brands quality value
59
Starbucks Ad Campaign
When Starbucks had created the new ad campaign in 2009, it had
wanted to target a whole new generation of coffee drinkers
Starbucks had put those advertisements, on the previous page in six
major cities, New York and LA included
Starbucks had further sought to spread this new message through
social media
Consumers had to hunt for these posters all around the cities. Once
they had found any one of these posters, they had to post them on
Twitter
Customers would also try to find the first photos of Starbucks
adorned for the holidays with red and green.
These customers would than post the photos on Flickr
60
Starbucks Ad Campaign
These ads were placed in upscale magazines, such as New York, the New
Yorker, In style, and Vogue
This was the first time which Starbucks had performed traditional advertising
and ignored their word-of-mouth advertising
Another social media campaign included store employees submitting
headlines for future Starbucks advertisements
Employees would also post YouTube videos talking about their experiences
working at Starbucks
On the Saturday before the 2008 election, the company had sponsored 60
second commercials on Saturday Night Live
These commercials had advertised a coffee giveaway on election day
This video had caused Starbucks to have more followers on Twitter
61
Starbucks Competitors
One of Starbucks major competitors in this ad
campaign was McDonalds line of McCafe coffee
drinks
McDonalds was known to spend more money on
media, such as television, radio, print, billboards, and
interactive web ads
Starbucks had never lost coffee drinkers to
McDonalds line of McCafe
McDonalds sells its own version of Frappuccino, and
competes with Starbucks with breakfast oatmeal, fruit
salads, and smoothies


62
Starbucks Advertisements
Starbucks creates advertisements with a unique content
The backgrounds are supposed to resemble a coffee
sack, with large and bold headlines promoting the
brands qualities
The ads which Starbucks had placed in newspapers
explain how Starbucks chooses only the best 3 percent of
beans for their coffee
The ads also emphasize how they roast the beans until
they pop twice to ensure quality taste

63
Starbucks Ad campaigns
Another ad campaign for
Starbucks was for the
Frappuccino beverage.
Starbucks had launched two
campaigns at the same time in
2010
Via Instant Coffee
Frappuccino drinks
Frappuccino campaign
had emphasized
Customization for the drink

64
Starbucks Mobile Advertising
Campaign
In 2011, Starbucks had run a Mobile ad
campaign to increase downloads of its
mobile applications. The ads were run by
Flixster Iphone Applications. When
consumers tap on the banner, Pay Faster,
Sip Slower, they are directed to a
optimized mobile page this mobile page
shows a picture of Starbucks applications
mobile payments Starbucks generates
mobile ads to maintain the mobile aspect
of their advertising strategy.
65
Starbucks Mobile Advertising
Campaign
Starbucks had also maintained its mobile strategy
through a mobile campaign which allows consumers to
chose their ideal summer beverage
Starbucks had run mobile banners ads through music site,
Pandora IPhone application
The banner ads read Handcrafted Refreshment is
Waiting

66
When consumers tap on the ad, they are directed to swipe this screen:
Consumers can choose a summer drink once they swipe the icy
screen. Such drinks include iced coffee with milk or Tazo shaken
iced passion tea lemonade.

67
Starbucks Advertising
Starbucks had also ran a rich
media ad campaign on I pad
sites on VH1 and MTV
Campaign is designated to drive
interaction with Apple users
This campaign is known as the
Starbucks, VH1, and MTV Celtra
for tablet-optimized rich media
MTV and VH1 were the first media
brands to create touch optimized
browser experience
Starbucks was seeking to target
the affluent, early adopter IPAD
users


68
Starbucks Advertising
They also seek to target the youth
audience of MTV, as well as VH1s older
audience
Objectives of ad campaign on MTV
and Vh1 IPAD sites was to maintain
brand awareness and seek out
purchase behavior
Starbucks put a banner on the MTV
and VH1 sites. The banner had asked
consumers, What is your Starbucks
signature. Tap to Find Out. Consumers
are then led to a screen where they
can learn and chose a specific
Starbucks beverage.


69
Starbucks Logo Timeline
Throughout the years, Starbucks had improved and
updated its brand logo

70
Starbucks Billboards
In 2008, Starbucks had put up a number of billboards in
Seattle
71
Target Audience Analysis
72
73
DMA Allocation
Sacramento
Los Angelese
Phoenix
Dallas
Houston
Chicago
Detroit
Miami
Atlanta
Washington D.C.
Philladelphia
New York
Tampa
Boston
Seattle
Minneapolis
San Francisco
Cleveland
Denver
Orlando
Media Plan
74
Media Objectives
Reinforce brand image in consumers mind by
placing advertisements in television shows,
magazines, and top internet sites
Develop a media strategy that involves advertising
Starbucks specialty coffees in both traditional and
non-traditional media outlets
Increase Starbucks Profitability
75
Magazine Tactics

76
Newspaper Tactics

77
Television Tactics

78
Out of Home Tactics

79
Internet Tactics

80
Promotional Tactics
On college campus have a free
specialty coffee day 8am-Noon in
the top 20 DMAs.
This will draw college students into
Starbucks for their free drink in return
drawing them to make more
purchases in store.
Sponsoring one concert featuring
the stars of the television show The
Voice held in Los Angeles.
Starbucks will hand out free drinks
during the concert.
81
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


Budget Allocation

83
Flow Chart

84
Reach and Frequency

85
Recommended Media Selection
and Rationale
86
Magazines

87
Newspapers

88
Television

89
Out of Home

90
Internet

91
Promotions

92
Other Tactics Considered But Not
Recommended
Internet: use of more social media outlets such as
YouTube, Twitter, Four Square.

93
Alternative Plans with Fluctuation in
Budget

94
Decision Dates

95
Client Questions Responses

96
Competitive Analysis Works Cited
AD Age: http://adage.com/article/mediaworks/comparing-coffee-media-
strategies-dunkin-mcdonald-s/134095/
AD Week: http://www.adweek.com/news/advertising-branding/caribou-
coffee-names-cm-new-ad-agency-105166
Corporate Eye: http://www.corporate-eye.com/blog/2011/01/caribou-coffee-
offers-something-extra-in-ambient-advertising/
Dunkin Donuts Press: http://news.dunkindonuts.com/press_kits.cfm?presskit_id=2
McCafee: http://www.mcafee.cc/Classes/BEM106/Papers/2008/Starbucks.pdf
SEO Analysis: http://sites.google.com/site/seoanalysisnow/case-study-caribou-
coffee-vs-starbucks






97
Advertising and Media Analysis
Work Cited
Evan Carmichael.
http://www.evancarmichael.com/Other/612/Starbucks-
Commercials.html
Digital Commons.
http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1005&c
ontext=busi_fac_pubs
Sose Marketing.
http://www.sosemarketing.com/2011/03/29/starbuck%E2%80%99s-
success-is-its-word-of-mouthsocial-mediaviral-marketing-strategy/
Starbucks News.
http://news.starbucks.com/news/coffee+value+values+campaign.htm
New York Times.
http://www.nytimes.com/2009/05/19/business/media/19starbux.html 98
Advertising and Media Analysis
Work Cited
PopSop. http://popsop.com/34575
Mobile Marketer.
http://www.mobilemarketer.com/cms/news/advertising/11299.ht
ml
New York Times.
http://www.nytimes.com/2009/05/19/business/media/19starbux.ht
ml?_r=1&partner=rss&emc=rss
AD Week. http://www.adweek.com/adfreak/starbucks-logo-
timeline-future-redesigns-11746
Ad Age. http://adage.com/article/news/sales-starbucks-rolls-ad-
campaigns/143747/

99