Viewership Among TV Stations- Rationale

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Media Plan: Starbucks
Michael Spinella, Marisa Del Priore, Donavan Farrish, Stacee Becker,
Elizabeth Pawlowski
1
Media Objectives
 Reinforce brand image in consumer’s mind
 Develop a media strategy that involves advertising
Starbucks specialty coffees in both traditional and
non-traditional media outlets
 Increase Starbucks’ Profitability
2
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
3
Target Audience Analysis
4
Demographics
Total Population Size
15-29
30-39
40-49
64,728,191
40,141,741
43,141,741
20.9%
13%
14.2%
Median Household Income
Householder under 25
years
$24,143
Householder 25-44 years
$54,024
Householder 45-64 years
$60,683
Gender
Male 18-49
24.2%
Female 1849
23.9%
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.
51.4 million Americans
living in multigenerational
homes.
Family Households
Families
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
77,538,296
66.4%
Household Size
2.58
Family Size
3.14
5
Recommendations
Television
Newspaper
Magazines
Broadcast
Cable
New York Post
Allure
NBC
USA
Cosmopolitan
ABC
TNT
Page Size
Magazine
TBS
Wall Street Journal
Glamour
FX
WWD
GQ
ESPN
The New York Times
InStlye
Outdoor
Billboards
Bus
Taxi
Subway/Train
Elle
InTouch
Internet
Facebook Engagement
Ads
Lucky
Rolling Stone
PerezHilton
Simmons Spring 2010 NCS Adult Survey
6
Rachel Brynes 24, New
York NY
- Meet Rachel. She is a
confident
individual who is
graduating with a
master’s 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
-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.
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.
7
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
8
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
9
Magazine Rationale
Rolling Stone
Audience
Adults aged
18-54
Employed 72 %
Professionals 23
%
Managerial 23
%
HHI $50,000 +
61 %
HHI $150,000 +
14 %
HHI income
$100,000
College grads
64 %
Grad college
28 %
Attending
college 14 %
Lucky
Median age
35.3
Education
College
graduate 44 %
Median HHI
income $82,
293
Employed 53 %
Professional 36
%
10
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
11
Magazine Index Numbers
Magazine
MRI Index
Simmons
Glamour
175
205
GQ
104
170
InStyle
168
222
InTouch
129
186
Lucky
111
176
Allure
199
196
Cosmopolitan
157
168
Rolling Stone
103
174
12
Newspaper Rationale
Women’s Wear Daily
Wall Street Journal
Page Six Magazine
Affluent
Readers
2,881,000
25-54
69%
Attended
College
64%
Household
Income
over $65K
51%
Above
$100K
32%
Circulation
56562
Total
Audience
192,311
Paid
Circulation
1,613,062
Median Age
42.5
88%
Mean HHI
$214,000
College
Degree or
higher
EducationCollege
Degree
82%
Age 25-54
35%
Average
HHI
257,100
 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
13
Viewership Among TV Stations- Rationale
Today Show/NBC
(5.49 million)
GMA/ABC (5.14
million)
ESPN (554,500)
USA (555,700)
•Broadcast
higher viewership
•Network less
money
•Tried to cover all
aspects of
television and
chose time when
the target is
watching the
most.
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)
14
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.
15
Out of Home Rationale
Outlets
Males
18-49
Females
18-49
149
152
Large Billboards
108
123
Subways
118
140
Taxis
155
143
Buses
•Given data from Simmon’s 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.
16
Internet Rationale
Website
Visitors
Facebook.com
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.
17
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.
18
Budget Allocation
19
Recommended Media Selection
and Cost
20
Magazines
21
Newspapers
22
Out of Home
23
Television
24
Internet
http://www.nickunsworth.com/wp-content/uploads/2011/01/Nick-Unsworth-FB-Ad-Blueprint.pdf
25
Flow Chart
26
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.
27
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.
29
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.
Moving
forward we
plan to:
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.
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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