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. 28 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. 30