Caribou Coffee | Brand Awareness Campaign
SMAD 441
Section 0001
December 3, 2012
Kara Schab
Hannah Lancaster
Maddie Wigle
Julie Himmel
Laura Russo
Christine Tedesco
Caribou Coffee Campaign
Cover Memo
DATE:
December 3, 2012
TO:
Caribou Coffee, Company
FROM:
Kara Schab, Hannah Lancaster, Maddie Wigle,
Julie Himmel, Laura Russo, Christine Tedesco
SUBJECT:
Brand Awareness Campaign
The objective of this campaign is to increase brand awareness and expand the business by opening
new stores along the East Coast. The campaign will be one year in length and consist of
advertisements in the form of coupons that will be placed in both magazines and online. The
presence of billboards on the East Coast, specifically in small metropolitan areas, will be
implemented as well. Additionally, throughout this campaign the company will produce coffee cups
that will be used in all of the current Caribou Coffee stores that show the company’s partnership
with the Alaska Wildlife Conservation Center. The company’s social media presence will also
increase throughout the campaign on Twitter, Facebook, and a corporate blog that will be created.
The survey results and an analysis of the top competitors in the coffeehouse industry have led to
this campaign.
Situational Analysis
About Caribou Coffee
Caribou Coffee is one of the leading branded coffee companies in the United States, with
a multi-channel approach to its customers. Caribou Coffee is the second largest companyoperated premium coffeehouse operator in the United States. This is based on the 605
coffeehouses, including 188 franchised locations, in 22 states and ten international markets.
Caribou provides the highest quality handcrafted beverages, foods and coffee lifestyle items.
Caribou carries a theme of fun and authentic human connection in a comfortable and welcoming
coffeehouse environment. Caribou Coffee’s unique coffees are available within grocery stores,
mass merchandisers, club stores, office coffee and foodservice providers, hotels, entertainment
venues and e-commerce channels (“Company Information,” 2012).
The Story
In 1990, during an adventure through the Alaskan wilderness, the future Caribou Coffee
founders, John and Kimberly Puckett, journeyed to the top of Sable Mountain. The couple
reached the summit and were rewarded with a sensational view: the boundless mountains, a clear
blue sky, and a herd of caribou thundering through the valley. The panoramic view became the
entrepreneurial vision for Caribou Coffee- a company that believes excellence is a product of
hard work, and that life is too short. This vision serves as a guide the company strives to create: a
special experience for the customer (Caribou Coffee, 2012).
John and Kimberly Puckett founded Caribou Coffee in 1992. The newlyweds were
inspired to start a business together while on a trip to Alaska in 1990. The first coffeehouse was
established in Edina, a suburb of Minneapolis, MN. The Puckett’s soon progressed to open
multiple Caribou locations in the Twin Cities area and quickly expanded to other markets in the
Midwest and Southeast.
Four years after the start of the company, big corporate image changes began. The brand
identity of Caribou Coffee originally had a rustic feel, but with some expansion, it began to sway
more towards an urban atmosphere. However, in 1996, the company decided to shift back to its
rustic roots and bring the corporate image back to the “ski-lodge” concept. It was not only the
original inspiration of John and Kimberly, but it also was a way for Caribou Coffee to
differentiate themselves from Starbucks. The laid-back, free-spirited attitude and bucolic setting
was supposed to carry through to a brand identity and reputation. However, the company has not
been consistent with their image: In 2010 the image shifted once again and employed an urban,
sleek logo that now carries across all of its products.
Caribou Coffee is known for being a quirky company, with genuine intentions and a
strong social responsibility. The company strongly values its social responsibility, which has
been personalized to be called “Do good.” The company proves this reputation through its
partnership with the Rainforest Alliance and its commitment to sustainable agriculture. However,
the company also involves themselves in fundraisers that are not totally expected. For example,
the company is sponsoring the second annual “Zombie Walk” later this month which will benefit
the charities COTS Detroit and CancerCare (“Caribou Coffee 2nd Annual Zombie Walk,” 2012).
Caribou Coffee’s attempts for more mass appeal is the first indication of the company’s
ambitions to replicate its niche success on a larger scale—something that may well be in its reach.
Competition
Caribou Coffee’s biggest competitors in the food and beverage market currently are
Starbucks, Panera Bread, Einstein Noah Restaurant Group Inc., and Dunkin’ Donuts. The
biggest advantage that the competitors have over Caribou Coffee currently is that each have
more stores and a wider range geographically in the United States.
Starbucks operates, primarily through company-operated retail stores, in more than 50
countries. The company purchases and roasts high-quality whole bean coffees and sells them,
along with fresh, rich-brewed coffees, Italian-style espresso beverages, and cold blended
beverages. Starbucks also provides a variety of complementary food items, along with a
selection of premium teas, and other beverage-related accessories (Beck et. al, 2011).
Panera Bread operates 1,453 company-owned and franchise-operated bakery-cafes and
operates in 40 states and Ontario Canada. It operates under three brands, Panera Bread, Saint
Louis Bread Co. and Paradise Bakery & Cafe. Nearly all locations include items with antibioticfree chicken, whole grain bread and select organic and all-natural ingredients (Beck et. al, 2011).
Einstein Noah Restaurant Group Inc. (“Einsteins”) also operates through three brands; Einstein
Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel company. Einsteins has a menu
which caters toward breakfast and lunch. Noah’s is a neighborhood based, deli-like restaurant
offering a wide range of sandwiches on freshly baked bread. The franchise operates with 71
locations at the end of FY 2009 and 176 license restaurants (Beck et. al, 2011).
Dunkin’ Donuts is the world’s leading baked goods and coffee chain, serving more than 3
million customers per day. Dunkin’ Donuts sells 52 varieties of donuts and more than a dozen
coffee beverages as well as an array of bagels, breakfast sandwiches and other baked goods
(“Company Snap,” 2011).
Size and Trend
Caribou Coffee focuses its growth expansion strategy mainly in the Midwest with 415
out of the 502 stores in the US and have 103 coffee houses internationally but do not have a
vision of taking down competitors. During an interview this year the senior Vice President of
marketing within Caribou Coffee stated, “We do not have any interest in being the biggest. We
do not want to be in every aisle of the grocery chains in America. We would rather be great at
what we do” (Morrison, 2012).
Even with Caribou Coffee’s conservative view concerning competition, the company is
not an underdog company by any means. Caribou Coffee currently employs over 6,000 people
throughout the world and in 2009 grossed a revenue of 262 million dollars (“Company
Information,” 2012).
Past and Current Communication Activities
Caribou Coffee has not focused on media advertisement nearly as much as its biggest
competitor Starbucks, or most franchise companies for that matter. According to Kantar Media,
Caribou Coffee spent less than $1 million on measured media in 2011. Starbuck’s measured
media spendings blows Caribou out of the water with $108 million (Morrison, 2012). Caribou
Coffee has been involved with numerous communication campaigns, but the majority have been
located in Minnesota where the company has its strongest presence. The Communication team at
Caribou monopolized on the cold Minnesotan weather to advertise their “Hot 'n' Wholesome”
breakfast sandwich campaign. With the help of Colle+McVoy Advertising Agency, Caribou
Coffee created heated bus stops identical to ovens to not only showcase its new breakfast options,
but to warm up the morning commuters as well (“Innovative Outdoor Advertising,” 2011).
SWOT
Caribou Coffee has numerous strengths, a few significant weaknesses, many
opportunities, and a couple obvious threats. It is critical that these are clearly defined and then
addressed with the best corporate communication strategy possible.
Strengths
Caribou can be reassured that it is producing quality products that are satisfying a widerange of customers: “Consumer Reports ranked it No. 1 among java purveyors” (O'Leary, 2010).
The company also has a commitment to sustainable agriculture, which many customers value
because of the guilt-free choice of fair trade coffee. Caribou coffee was the first ever U.S. coffee
chain to pledge that all its coffee will come from farms certified to use sustainable growing
practices (Hughlett, 2010). Caribou is also known for its excellent commitment to customer
service. According to YouGov’s BrandIndex, Caribou was consistently ranked higher in
customer satisfaction than Starbucks last year (O’Leary, 2010).
Another business strength it possess is its partnership with other large companies such as
Keurig, Kemps, and the non-profit organization Rainforest Alliance (Caribou Coffee, 2012). This
allows them to expand the brand with other leading successful corporations, which increases its
market exposure to a new customer base. The company has utilized the practice of advertising in
creative ways such as displaying ads on public transit, such as buses and bus stops.
Weaknesses
From an outside sales perspective, Caribou Coffee seems to be doing well with a 4.3
percent increase in same-store sales in 2011. But while Caribou Coffee shows promise within its
existing markets, it is lacking any incentive to grow beyond its Midwest security blanket
(Brandau, 2011).
Starbucks, the company’s biggest competitor, has already established a solid market in
many of the areas Caribou Coffee could possibly expand to. It needs to expand the brand loyalty
already established in Minnesota to more states in order for the company to be easily recognized.
The company's external appearance as a ski-lodge is something that is relatable to its consumers
in the north, but it may not be something that appeal to southerners, per se. Markets outside of
the Midwest region may also have trouble identifying with the company’s mountaineer persona.
Conclusively, the awareness of its brand is very low for the position it is in the market.
Opportunities
The key to creating and maintaining a successful brand is keeping in touch with what
customers want. Caribou Coffee’s chief executive, Mike Tattersfield, recognizes the importance
of continual product innovation. In order to stay relevant and keep up with the competition,
Caribou Coffee has begun to expand its brand into many different areas such as breakfast
sandwiches, K-cups, and other items sold nationally in grocery stores (Brandau, 2011). These
items create brand awareness even within areas where a coffeehouse may not be located and
allow them to keep up with its competitors.
Caribou Coffee is also taking part in many other advertising initiatives during the process
of it rebranding mission. By dedicating more time and money on these initiatives, the
opportunity for the company to continue to grow is inevitable. The company is meeting where
the customers are; specifically the Internet with a new Web site and TV commercials, something
is has not attempted previously (O’Leary, 2010).
Threats
The most obvious and concerning threat is Caribou’s business competition with
Starbucks. For instance, Starbucks presence on Twitter is much greater than Caribou’s.
Starbucks has 2,972,789 followers, while Caribou has a disappointing 34,363 followers.
Starbucks has over 12,882 tweets and Caribou has a modest 2,544 tweets. Social media presence
is key for successful business awareness in the modern day, posing this as a major area of
concern. The recession also holds a less than ideal threat to the corporation. The recession poses
the threat that potential customers may rethink spending $5 on a cup of coffee. However,
according to a Market Summary of Coffee Production in the United States, demand for coffee
has continued steadily and after the recession, it surprisingly kept revenue growth up, giving
coffee companies the leverage of staying resistant of stock fluxuation (“Coffee Industry,” 2011).
However, depending solely on the idea that “Americans love their coffee” and relying
on this to carry the coffee industry through market lows, is naive and should not be the mind set
for Caribou Coffee and other coffee companies alike.
Target Audience
According to the 2012 National Coffee Drinking study from the National Coffee
Association, 75 percent of United States adults drink coffee, where 58 percent of that drink
coffee at least once a day. This study also found that 40 percent of 18-24 year olds drink coffee
at least once a day. For the purposes of this campaign, the focus will be aimed at Caribou’s
brand expansion and awareness to young people.
The Enlightened Current and Future Customer
In relation to the previous statement, an important aspect of the target audience in the
case of Caribou Coffee is to recognize that it is far more difficult to win back customers already
lost rather than finding new ones to take their place. So the target audience will first and
foremost be those loyal to Caribou Coffee already, and then to extend the brand to young people
who have not yet chosen a specific coffee venue, and have not chosen a “Third Place.” The
target audience will be those who are not particularly loyal to Starbucks or other competing
coffee industry entities.
On Caribou Coffee’s official corporate site, it states that the company aspires to be “The
community place I love,” for its customers. Caribou Coffee appeals to individuals that want to
feel welcomed, and at ease in the surrounding environment. The company’s tagline “Life is short,
stay awake for it,” connotes that those who purchase the coffee from there are both free-spirited
and adventurous, while promoting its coffee to complement daily routine. Its brand is associated
with making a difference in sourcing, the environment, and community (Caribou Coffee, 2012).
This identity appeals to customers that want to know where their coffee comes from and
that the business being supported purchases fair trade coffee. This also means that by purchasing
this coffee, smaller businesses are being supported down the supply chain, because of Caribou’s
ethical business practices.
Financially-Optimistic Customers
Coffee sales have withstood the recession for the most part, but the latest research by the
National Coffee Association shows the future is looking even brighter. In the NCA’s study, it
found that consumption of coffee is significantly risen and rebounded from the levels shown in
2008 and 2009, specifically in individuals 18-39 years old (“Vending Market Watch,” 2011).
The target audience of Caribou Coffee should be the young people that are coming out of a
recession and have a positive view of their financial situation. The target audience should also
have an open mind about which brand to identify with, and which coffeeshop to call a “Third
Place.” i.e. not home, not work, but Caribou.
Robert F. Nelson, NCA president and CEO, stated that the 2011 National Coffee Drinking
Trends data shows “strong category loyalty and suggests a solid customer base for future growth”
(“Vending Market Watch,” 2011). This same study revealed that 86 percent of daily consumers
drank coffee at home in the past day, compared to 24 percent who drank coffee out of the home,
showing that gourmet coffees purchased in a potential “Third Place” continue to be a significant
segment of total coffee consumption, at home and at stores.
Metropolitan East Coasters
The goal looking to be accomplished is to expand upon Caribou Coffee’s current
demographic of predominantly midwestern citizens, and make its brand awareness amongst the
East Coast, specifically those 18-39. The target for advertisements and store growth will be small
metropolitan areas throughout the year-long campaign.
Wholesome Consumers
This audience will consist of those that have an appreciation for nature and are
environmentally aware. This audience will be one that highly values both authenticity and
consistency, as well as a company’s social responsibility. The target audience will not only be
healthy, but wholesome individuals, active in both mind and body as well as committed to
environmental and agricultural sustainability.
Primary Research
The objective of the primary research conducted for this campaign was to provide insight
into the brand awareness and opinions of Caribou Coffee's target audience. Before delving into
the campaign to expand the corporation and increase awareness of the brand, it was imperative to
analyze what knowledge pre-existed. The survey was passed around to college-age young adults
in order to determine what the target audience, the campaign is seeking out, knows about
Caribou Coffee. Not only are the individuals apart of this target audience avid coffee drinkers,
but studies have shown that they (18-24 year-olds) make up a large percentage of big-name
social media sites such as Twitter. Over 30% of 18 to 24 year olds have a Twitter account, while
20% of these users tweet everyday (Fitzgerald, 2012). If this proposed campaign is able to
successfully reach the targeted audience, the opportunity for the brand to be spread throughout
social media outlets would naturally increase substantially, in turn increasing the corporation's
awareness.
Samples
The samples for this survey were chosen based on the demographics of James Madison
University’s campus in Harrisonburg, VA, as well as the audience this campaign seeks to attract.
In order to achieve the most accurate set of data, primarily college aged students were surveyed.
The students varied in age, gender, and location demographic.
Procedure
The surveys were distributed around the James Madison University campus in order to
reach out to the target audience of this campaign. The survey consisted of four questions asking
those surveyed to reveal the level of brand awareness toward Caribou Coffee. It was a paper
survey handed out on the James Madison University campus in Harrisonburg, VA during the
week of October 14, 2012 (See A).
Results
The survey developed for this campaign was distributed to and completed by 105
students at James Madison University. The first question asked the survey takers the question,
"Have you ever heard of Caribou Coffee?". Of the 105 responses, only 60% have heard of the
brand, compared to the 40% who have not (See Appendix B). These percentages pose a great
opportunity to increase awareness to those whom have not heard of the brand. This campaign has
the potential to reach out to the large number of unaware individuals and craft a positive image
of the brand and the Caribou Coffee culture.
The next question presented in the survey states, “Have you ever purchased a Caribou
Coffee product?”. A surprisingly low 31%, or 33 people, have purchased a Caribou Coffee
product (See Appendix C). Of the 60% of students who have knowledge of the corporation, a
little over half, or 52%, have actually bought something made by the brand (See Appendix D).
This low percentage most likely corresponds to the significantly low presence of Caribou Coffee
on the East Coast. When Caribou Coffee expands and creates more coffeehouses in the Eastern
region of the nation, these numbers will most likely go up because the product will be more
accessible.
In correspondence to the data received from the second question, almost all of the
students who had never heard of the brand had never been to the coffeehouse. Only about 21% of
those surveyed had previously visited a Caribou Coffee location (See Appendix E). As
previously mentioned, the East Coast, where a large majority of those surveyed reside, does not
offer an abundance of Caribou Coffee locations. Of all the students surveyed from the Tri-State
area, three had been to the coffeehouse. This data further supports the idea that if more stores
were located in these areas, more opportunities would exist for students to not only have
knowledge of the brand, but make purchases there as well.
The final question the survey presented was if students prefered the new or the original
Caribou Coffee logo. This campaign is centered around the idea to return to the corporation’s
original rustic and homey roots. In order to ensure that every customer that walks into the
coffeehouse feels as though they belong and are embarking on a mini adventure that ends with a
delicious coffee, the original logo would largely benefit the company. In addition to helping with
the company’s brand identity, 74% of those who completed the survey preferred the original
logo. This 74% did not have the background information or the knowledge of what the caribou
symbolizes to the corporation, yet still preferred it to the modernized, newer version (See
Appendix F). The target audience overwhelmingly felt more of a connection to the older logo,
therefore it would be in the corporation’s best interest to listen to the consumer and return to its
roots.
After taking all of the data received into account, it seems the best decision for Caribou
Coffee is twofold: to return to the corporation’s original logo, and expand to new locations
where awareness is not as prevalent. In order to achieve the success the brand deserves, more
consumers need to be reached. Conclusively, the target consumers will be reached through the
campaign’s objectives and strategies.
Communication Objectives
The communication goal is to broaden the reach of Caribou Coffee’s brand. Further, the
plan is to target college students and young professionals in smaller metropolitan areas, with the
intention of having them identify with Caribou Coffee as their “third place.” This will be done
with social media, billboards and a campaign for wilderness and wildlife protection agency
affiliates. The hope is that these students and young professionals will identify with the Caribou
brand; the rustic, laid back notion and feel good about the causes that Caribou is associated with.
The communication objective is to increase social media hits by 40 percent in three months. This
includes a substantial increase of Twitter followers and a broader cyber-conversation of the
brand and brand promotions. The intention is to increase brand awareness by 15 percent in six
months among the students and professionals. Projections are increased sales, especially from
college campus areas, by 25 percent in eight months.
Statement of Benefits
Through this campaign, there are two main objectives. First, expanding the coffeehouse
corporation along metropolitan cities in the east coast, followed by improving social
responsibility and brand awareness by teaming up with the Alaska Wildlife Conservation Center.
The main beneficiaries of this campaign will be Caribou Coffee and the Alaska Wildlife
Conservation Center constituents. First, if the campaign is successful, Caribou Coffee’s
shareholders and investors will benefit when the stock prices rise due to expansion and
awareness increases in the corporation which will result in more Caribou Coffee stores in the
east coast. Next, suppliers of Caribou Coffee products will have an increase in sales which will
in-turn benefit the stores that carry the products along with their investors and employees.
Furthermore, Caribou Coffee states that they are “dedicated to maintaining integrity and trust
throughout all levels of the organization and between it and all of its members and shareholders.”
(Investors, 2012). This campaign follows it’s standards and will also contribute to social
responsibility. As a result, Caribou Coffee’s reputation as well as it’s consumers will benefit
from the outcome of the campaign. Consumers will be able to visit the coffeehouse and make
purchases through expansion and future consumers created through the campaign will be able to
find a coffeehouse in the nearest metropolitan area.
Additionally, Alaska Wildlife Conservation Center employees, volunteers, interns,
visitors, and the community of the state of Alaska will benefit greatly from this campaign. With
ten percent of all of sales from Caribou Coffee’s products going towards the non-profit
organization, the seven paid employees along with volunteers will be able to improve the
programs and efforts for preserving Alaska’s wildlife through education and quality animal care
(Alaska Wildlife Conservation Center, 2012). Interns of the organization are college students
from all around the world pursuing a future in animal care and will benefit through proceeds of
the campaign dedicated to housing, educational opportunities during field trips at the center , and
training (Alaska Wildlife Conservation Center, 2012). Currently, the AWCC has three main
projects; a new bear facility, a land and road addition for visitors, and a wildlife shelter and
intern housing (Alaska Wildlife Conservation Center, 2012). This
campaign will help fund each project and improve the visitations of the center and gain more
profit with admission costs. Visitors of the center will have a richer experience by seeing more
animals and views, and becoming more educated on the wildlife.
Message Strategies
The objective, as stated before, is not necessarily to alter Caribou Coffee in terms of its
business infrastructure and culture, but rather to expand it geographically to small metropolitan
areas across the country, more specifically the east coast. In order to promote this expansion, a
charitable approach will be implemented in order to attract the attention of the target audience,
young professionals, and set Caribou apart from competitors in these urban spots.
Partnership and Donation
Ten percent of every Caribou product sold will be donated to the Alaska Wildlife
Conservation Center (AWCC). Deciding to affiliate with the AWCC stems from the foundational
story of the Alaskan adventure both Caribou founders took, that ultimately inspired the concept
for the company. AWCC is a nonprofit organization dedicated to preserving Alaska wildlife
through public education. AWCC takes in injured and orphaned animals year-round and provides
spacious enclosures and quality animal care. Animals that cannot be released into the wild are
given a permanent home at the center (AWCC).
In order to integrate this campaign in with Caribou products, each cup of coffee will have
a “fun fact” about an endangered animal of Alaska, including an attractive image of the animal
and direction to Caribou’s website to learn more and see how that customer will impact AWCC
with each purchase.
Donating to the AWCC will not only increase the target audience’s awareness of Caribou,
but it will also provide a stronger incentive to become a member of the Caribou Coffee
community. This strategy will be the headliner to this campaign approach across all media
outlets utilized to reach the objective. A mix of traditional media, new media, and a
nontraditional approach will be used to achieve this.
Main Beneficiaries
The main beneficiaries of the monthly promotional campaigns with Alaska Wildlife
Conservation Center will be current and future Caribou Coffee and the AWCC constituents. First,
if the campaign is successful, Caribou Coffee’s shareholders and investors will benefit when the
stock prices rise due to expansion and awareness increases in the corporation which will result in
more Caribou Coffee stores in the east coast. Next, suppliers of Caribou Coffee products will
have an increase in sales which will in-turn benefit the stores that carry the products along with
the company’s investors and employees. Furthermore, Caribou Coffee states that they are
“dedicated to maintaining integrity and trust throughout all levels of the organization and
between it and all of Caribou’s members and shareholders.” (Investors, 2012). This campaign
follows the company’s standards and will also contribute to the corporation’s social
responsibility. As a result, Caribou Coffee’s reputation as well as consumers will benefit from
the outcome of the campaign. Consumers will be able to visit the coffeehouse and make
purchases through expansion and future consumers created through the campaign will be able to
find a coffeehouse in the nearest metropolitan area.
Bringing the Brand Back To Its Roots
Additionally, Alaska Wildlife Conservation Center employees, volunteers, interns,
visitors, and the community of the state of Alaska will benefit greatly from this campaign. With
ten percent of all of sales from Caribou Coffee’s products going towards the non-profit
organization, the seven paid employees along with volunteers will be able to improve the
programs and efforts for preserving Alaska’s wildlife through education and quality animal care
(Alaska Wildlife Conservation Center, 2012). Interns of the organization are college students
from all around the world pursuing a future in animal care and will benefit through proceeds of
the campaign dedicated to housing, educational opportunities during field trips at the center , and
training (Alaska Wildlife Conservation Center, 2012).
AWCC Funding
Currently, the AWCC has three main projects; a new bear facility, a land and road addition for
visitors, and a wildlife shelter and intern housing (Alaska Wildlife Conservation Center, 2012).
This campaign will help fund each project and improve the visitations of the center and gain
more profit with admission costs.Visitors of the center will have a richer experience by seeing
more animals and views, and becoming more educated on the wildlife. Lastly, the community
will benefit environmentally through funding for preservation and through the increase in visits
to the center.
Media Strategy
Traditional Media
Among traditional media, it is believed billboards and magazines will capture the
attention the most among the target audience. Most young professionals read metropolitan
magazines for their news source if it is not from the Web, whether it be larger magazines such as
Business Week, Cosmopolitan, People, Time Magazine and more. Billboards capture the
attention of commuters going to work in the morning and when sitting in traffic while leaving.
Both types of traditional media will be beneficial to get the word out not only to the targeted
audience but to everyone exposed.
New Media
New media however, is where most of the desired audience will be reached. The Caribou
Facebook page will be a main media source for continuing the conversation of this campaign,
involving customers to participate and remain interactive. The AWCC project will be hyped up
on the page, along with all new changes and events Caribou will engage in, along with new
products and promotions. This will also promote web site traffic. In addition, it is believed that a
corporate blog could be a great tool for employee-customer communication. It also will provide
a place for customers to talk about their experiences with Caribou and their opinions regarding
AWCC along with anything else related. AWCC volunteers and staff members can use the blog to
talk back to the customers directly as well, providing a name to a cause. Twitter is the last tool
viewed as being a beneficial addition to the social media strategy. Twitter will be a place to
gather all happenings on the company’s web site, Facebook and blog. It will also allow for
further communication among constituencies.
Theme and Strategies
The theme and strategy of this campaign is not to completely change the identity of the
company as a whole, rather to emphasize the strategic desire of brand expansion and awareness,
while bringing back the coffee company to the company’s original roots. The theme of this
campaign is, “Let your coffee take you on an adventure.” The meaning behind this campaign
theme encapsulates the homey, midwestern feel each customer will feel when walking to the
store, regardless of the store’s location. The incentive of this idea is that ten percent of every
Caribou product sold will be donated to the Alaska Wildlife Conservation Center (AWCC), will
also give the consumer a feel of adventure as each cup the customer drinks, the money will go
elsewhere. The coffee cups will retain the same old Midwestern feel as they did before the
company re-branded themselves. The brand will continue to stick to their blue and tan color base
in order to keep brand consistency. The survey alone has shown that 40 percent of people polled
had no awareness of the brand, and the strategy of this campaign will expand that percentage,
while keeping brand consistency.
Budget
This budget represents the amount of money it would take to spread brand awareness
throughout a small metropolitan area. Based on the 2009 revenue of $262,000,000, it can be
estimated that the revenue by the end of 2011 has grown to about $280,000,000 (Caribou Coffee,
2012). This money will go towards the budget for any marketing purposes. Since this campaign’s
target audience is young professionals, the advertisement chosen is structured to meet them
where they will be. This campaign has put the majority of its budget toward billboards and
airport displays, this is because young professionals will be commuting via highways and
airplanes for any traveling related to business. By adding local magazine advertisements, mall
displays and online advertisement in the budget, this campaign can extend its brand a little
further to the outskirts of the metropolitan area where young families may live. Overall this
budget is comprehensive in consisting of various media forms that will reach the target audience.
See Appendix L for budget.
Evaluation
The evaluation will be based upon of the impact made. The audience exposed to the message
content will be measured, along with those viewer’s and reader’s opinions will be evaluated
based on if they were reaffirmed or changed after seeing the campaign. Assessment will take
place based on who has changed attitudes; if the target groups will engage in repeated behavior,
and further, whether or not they choose to participate in social and/or cultural change. There will
be a re-evaluation of the company’s yearly revenue and brand awareness after one year.
Specifically, young professionals and college students will be surveyed to see if they
recognize/ identify/ associate with the brand of Caribou, and further, if they are aware and
engaged with Caribou’s wildlife protection efforts in Alaska, where the idea for Caribou started.
Executive Summary
Situational Analysis
Caribou Coffee is a company that has managed to keep itself authentic, cause-focused
and genuine since its beginnings in 1992. The founders, John and Kimberly Puckett crafted a
lifestyle to identify with when they started Caribou. They are now the second-largest companyoperated premium coffeehouse in the United States. The company however, has changed its
image a couple of times, beginning with a rustic logo originally, to a more modernized urban one.
However this new sleek logo does not seem to maintain the ski-lodge feel that was originally
intended. This causes some confusion on the part of a consumer, and may have contributed to the
low brand awareness of the company. Caribou has several competitors in the food and beverage
market, including but not limited to Starbucks, Panera Bread and Dunkin’ Donuts. These
competitors all have more stores and a broader geographic reach in the U.S.
SWOT
While Caribou shows a great deal of potential in its current markets, it lacks incentive to
continue growing significantly beyond the Midwest. The awareness of its brand is very low
considering its actual position in the market. In terms of their social media presence, Caribou has
several accounts, but they aren’t as recognized as its competitors, like Starbucks. Social media is
also a key for success as a company in the modern world, especially since the advent of the
Internet. This poses a crucial conversation; “how, as a company, do we keep up with the
changing times?”
In addition to a stronger social media presence, including the corporate blog, Caribou
needs advancement in its expansion. After assessment of the data received in the research
process of this campaign, it was realized that the best move for Caribou Coffee is to return to the
company’s original, rustic logo and further, to expand to new locations where awareness is not as
prevalent.
Target Audience
The yearlong campaign is aimed at Caribou’s brand expansion and awareness to young
people. In regard to the target audience, it is important to recognize that it is far more difficult to
win back customers already lost rather than finding new ones to take their place. So the target
audience will primarily be those already loyal to Caribou Coffee that want to see it expand and
pick up its social media activity for numerous purposes. The goal to be accomplished is
expansion of the current, predominant demographic of Midwestern citizens to a larger, East
Coast market of 18-39 year olds.
The target location for advertisements and store growth will be in smaller metropolitan
areas. The corporate communication goal in this Caribou objective is to broaden the reach of the
brand and target college students with social media, billboards and a campaign for wilderness
protection through affiliation and fund raising. The intention is for students and young
professionals to identify with the Caribou brand; the rustic, laid back notion and feel-good
causes that all come together to form a powerful association between the human mind and its
decision to choose a coffeehouse.
Primary Research
A survey was conducted among college students at James Madison University. The
results concluded that there was a low level of brand awareness among the target audience
surveyed. 74 percent preferred the old, original logo better than the new modern one. Forty
percent have never heard of the company. Only about 30% surveyed had ever purchased a
Caribou Coffee product. These results support this campaign in the efforts to expand to the East
Coast and to a younger target audience that can continue to grow with the brand.
Statement of Benefits
This campaign has two main objectives: first, expanding the coffeehouse corporation
along metropolitan cities in the East Coast, followed by improving social responsibility and
brand awareness by teaming up with the Alaska Wildlife Conservation Center. In turn, the
prospective outcome of these objectives will increase stock prices and will ultimately result in
more financial support for new Caribou Coffee store locations. In addition, this campaign will
help fund the Alaska Wildlife Conservation Center, by donating 10 percent of coffee house
revenue during the duration of the campaign. Deciding to affiliate with the AWCC stems from
the foundational story of the Alaskan adventure both Caribou founders took, that ultimately
inspired the concept for the company. AWCC is a nonprofit organization dedicated to preserving
Alaska wildlife through public education.
In order to integrate this campaign in with Caribou products, each cup of coffee will have
a “fun fact” about an endangered animal of Alaska, including an attractive image of the animal
and direction to Caribou’s website to learn more and see how that customer will impact AWCC
with each purchase.
Media Strategies
It is believed that traditional media such as billboards and magazine ads will capture the
attention the most among the target audience of young professionals in metropolitan areas.
Billboards capture the attention of commuters going to work in the morning and when sitting in
traffic while leaving. Both types of traditional media will be beneficial to get the word out not
only to the targeted audience but to everyone exposed. New media however, is where most of the
desired audience will be reached including the Caribou Facebook and Twitter page. The plan is
to use these outlets to hype up the AWCC project promoting further customer conversation and
involvement. In addition, customer and employee blogs will be utilized, providing a place for
customers to talk about their Caribou experiences and opinions on the AWCC project.
Themes and Strategies
The major theme is not to completely change the identity of the company as a whole, but
rather to emphasize the strategic desire of brand expansion and awareness. Most importantly, the
goal is to bring Caribou back to its original roots while using the headliner, “Let your coffee take
you on an adventure.” This slogan encapsulates the homey, Midwestern feel each customer will
feel when walking into the store. This is where the AWCC project comes into the picture and
plays a role, up keeping the original rustic feel of Caribou while doing good for the community.
Appendix
A.
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ou-
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