Starbucks ad campaign

StarbucksNatalie WaskelPatrick Hogan

Demi DiCristofanoKristyn Looper

Brand Mission To inspire and nurture the human spirit – one

cup and one neighborhood at at time.

Coffee has always been about quality.

It’s all about the human connection.

Starbucks is about the enjoyment at the speed of life – sometimes slow and savored, sometimes faster.

Every store is part of a community, they take responsibility to be good neighbors seriously.

Brief Company History1970s• Starbucks opens first store in 1971 in Seattle Washington.• Named after Herman Melville’s classic novel Moby Dick.

1980s• Howard Schultz joins Starbucks.• While on trip to Milan, Italy Schultz becomes so infatuated with the

ideas of Milan’s espresso bars and coffee houses that he decides to bring them back to Seattle.

1990s• Starbucks begins to expand to the rest of the United States and

then globally. • Becomes first company to offer stock option to their part time

employees.• First Starbucks opens in the Middle East in 1999.

2000s• Has more than 16,000 stores in 48 countries.• Begins to offer more drinks besides coffee, such as: Tazo Tea and

Frappuccinos.

Starbucks opens 1st store.

1971 1982-1984

Howard Schultz joins Starbucks and travels to Italy, where he comes up with the coffee house idea for Starbucks.

1985-1987

II Giornale acquires Starbucks and opens stores in Chicago and Vancouver, Canada.

1989

Total of 55 stores.

1991

1st privately owned U.S. company to offer stock option. Opens 1st airport store at Seattle International Airport.

1993

Opens 1st roasting plant in Kent, Washington.

1995

Begins serving frappuccinos, introduces Starbucks ice cream. Total stores: 677.

1996

Opens stores in Japan and Singapore.

Establishes the Starbucks Foundation. Open stores in the Philippines.

1997 1998

Acquires Tazo Tea Co. Extends brand into Grocery Stores. Launches Starbucks.com

1999-2000

Has over 3,500 stores including stores in: Qatar, Hong Kong, Kuwait, and Saudi Arabia.

2001

Introduces Ethical Coffee Sourcing guidelines and introduces Starbucks Card.

2002

Establishes Starbucks Coffee Trading company. Total Stores: 5,886.

2003

Acquires Seattle Coffee Company. Opens stores in Turkey , Chile and Peru.

2006

Launches 1st paper cup saving 750,000 trees each year.

2007

Eliminates all trans fats and makes 2% milk the new standard.

2008

Announces Starbucks Shared Planet. Opens stores in Argentina, Bulgaria. Czech Republic, and Portugal.

2009

Launches Starbucks VIA ready Brew Coffee. Becomes the world’s largest buyer of Fair Trade Coffee. Partners with Red and launches iPhone apps. Total Stores: 16,635.

Starbucks Brief Company History Time Line

Corporate Social

Responsibility

CSR Starbucks Youth Action Grants

Supports young people and helps them to identify problems in their neighborhoods.

Starbucks Foundation

Starbucks China Education Project – supports education in China

C.O.A.S.T. – aids in recovery and revitalization of the Gulf Coast

Develop projects for the communities who produce Starbucks coffee, tea, and cocoa. Such as: education and agricultural training, improving biodiversity conservation and nutrition and water sanitation.

Ethos Water – Which provides people in developing countries access to fresh water.

(STARBUCKS) RED

Every time a customer uses a Starbucks RED gift card a portion of the cost goes to people living with AIDS/HIV in Africa.

CSR continued… Create Jobs for the USA

Starbucks plans to create over 2,000 jobs in the next fiscal year.

Starbucks Community Stores

Located in Los Angeles and New York along with 2 other nonprofit organizations. Starbucks helps to improve community education, employment, health, housing and safety.

Starbucks Shared Planet

Purchase ethically sourced and responsibly grown coffee to reduce environmental footprint and fight climate change.

Partners with:

Conservation International, Fair Trade, African Wildlife Foundation, Business for Social Responsibility, Earthwatch Institute, Ceres, United States Green Building Council, Save the Children, Sustainable Food Lab, Mercy Corps, International Youth Foundation, and Ashoka Youth Ventures.

CSR continued… Environment

Develop comprehensive recycling solutions for paper and plastic by 2012

Recycling bins in front of every store by 2015

Serve 25% of beverages in reusable cups by 2015

Reduce water consumption by 25% in company-owned stores by 2015

Community

Have employees, partners and costumers contribute 1 million hours of community service by 2015

Coffee purchasing and farmer support

By 2015 100% of coffee should be ethically sourced

Invest in farmers and their communities by increasing farmer loans to $20 million by 2015

Improve farmers’ access to carbon markets, helping them generate additional income while protecting the environment.

Observational Research

Starbucks product in Kroger Starbucks product in Schnucks


Starbucks Product in Marshalls


Starbucks in Barnes & Noble


Customers at the Starbucks in Barnes & Noble

Display Case in Barnes & Noble

Consumer Research

Survey 102 people surveyed

71 female

31 male

44% said they were between the ages of 21-23

59% said their highest level of education is Bachelors degree

Consumer Research

What brands come to mind when you think of coffee?

Pure Vida Folgers Maxwell House Common Grounds Dunkin Donuts Seattle’s Best Starbucks

When you think of Starbucks, what comes to mind?

Coffee Logo Chain Stores Certain smell The color green Expensive High quality Seattle

Consumer Research

Excellent 17 17%

Good 69 68%

Average 13 13%

Poor 2 2%

Terrible 1 1%

Excellent

Good

Average

Poor

Terrible

0 10 20 30 40 50 60 70

Rank Starbucks in terms of their environment involvement and

social awareness?

Consumer Research

Yes 42 41%

No 24 24%

Not Sure

35 34%42

24

13

Does the way Starbucks treat their employees or their green initiatives influence your buy-

ing decisions?YesNoNot Sure

Consumer Research

Yes 37 36%

No 12 12%

Maybe 40 39%

I don't know what that means

12 12%

37

12

40

12

Do you feel that Starbucks is a socially responsible company?

YesNoMaybeI don't know what that means

Yes 30 29%

No 15 15%

Not Sure 56 55%

Consumer Research

30

15

56

Do you feel that Starbucks gives back to the community on local

and global levels?

YesNoNot Sure

Competitive Research


The main competitors of Starbucks include; Pura Vida, Seattle’s Best, Folgers, Maxwell House, Dunkin Donuts, Common Grounds, Panera.

Research has indicated that Starbuck’s has unreasonable prices. This information was gathered from a survey that was handed out to 102 people through social media. Although most people believe that the prices were unreasonable, there were some respondents who felt that Starbuck’s has somewhat reasonable prices. Regarding the competitors, respondents believe that they possess reasonable prices.


Starbuck’s is perceived as a high quality company. Although the prices seem to be unreasonable, the physical location of the stores seems to be a strong advantage of the company. Due to the prices and the experience, Starbucks is perceived to be a high quality company that focuses on a relaxing environment.

When ranking Starbucks in terms of their environmental involvement and social awareness, majority of participants felt that the company is very involved.

When ranking the competitors position regarding their environmental involvement and social awareness, most participants felt as though they weren’t as involved with social responsibility as much as Starbucks.


With response to advertising, Starbuck’s and its main competitors share the same types of media. These include; television, radio and print advertisements. Being that all of these company’s advertise through the same medium, there aren’t unique techniques in which Starbuck’s utilizes to promote its’ company.

In addition to the main competitors of Starbucks, other competitors would include other socially oriented establishments where you can share a beverage and one’s company.

Competitive MatrixBrand Starbucks Folgers Maxwell

HouseDunkin Donuts

Common Grounds

Panera Pura Vida Seattle’s Best

Philosophy Focus on quality, employees, customers and the environment.

Focus on heritage, richness, and quality.

Flavorful, quality driven coffee with multiple types.

Focus on quality, availability and reliability.

Focus on service, products and environment.

Focus on tradition, quality, service and environment.

Non-profit company that advocates corporate social responsibility

Emphasize the source of coffee as the most important part of the company.

Design Inviting environment, warm colors, quality products, and excellent service.

Multiple types of coffee with bright packaging

Multiple blends of coffee sold in large packages, light colors.

Multiple types of products, packaged in white cups with bright coloring

Warm social environment, quality products with good service

Warm rich colors fostered in a warm environment along with great service.

Beautifully designed packaging with light colors

Multiple blended products, light colored bagged packaging

Target Audience

Men and women ages 18 and older.

Men and women ages 24 and older


Men and women ages 18-35.

Men and women ages 18-23.


Men and women ages 18 and older

Men and women ages 21-35

Price Prices of cups of coffee to bags of roasted beans range from $1.50-$16.

Package of roasted coffee (34.5 oz) $9.

Package of ground coffee (34.5 oz.) $9.99.

Prices of cups of coffee to bags of coffee range from $2-$9.

Prices of cups of coffee range from $2.95-$4.25.

Prices range from $2.49-$8.99.

Packages of coffee range from $12-$14

Prices of cups of coffee to bags of coffee range from $1.50-$8.

History Founded in Seattle, WA in 1971.

Founded in San Francisco, CA in 1850.

Introduced in 1892.

Founded in Quincy, MA in 1950.

Founded in 2005. Founded in 1999, previously known as Saint Louis Bread Company.

Founded in 1997 First introduced in 1982 by the Stewart Brothers.

Products Individual cups of coffee, packages of coffee, and other café foods.

Multiple types of coffee ranging from classic roast to dark roast.

Ground coffee, flavored coffee, instant coffee.

Individual cups of coffee, packages of coffee, pastry’s and bagels.

Individual cups of coffee with multiple blends along with other café products.

Individual cups of coffee, sandwiches, soups, salads, and other bakery items.

Natural and organic coffee in packages.

Individual cups of coffee and packages of coffee with multiple blends.

Marketing Mix

Products Drinks

Bottle drinks, brewed coffee, chocolate beverages, espresso beverages, frappuccino blended beverages, kids drinks, Tazo tea, smoothies, ice coffee.

Food Bakery, Starbucks petites, bistro boxes, hot

breakfast, salads, sandwiches, Panini and wraps, ice cream, yogurt parfaits.

Merchandise Apparel, drink ware, gift packs, CDs, brewing

equipment.

Place Starbucks has more than 15,000 stores in

more than 50 countries, including over 11,000 in the US, over 1,000 in Canada, over 700 in the United Kingdom, and over 150 in Turkey. Starbucks is also located in convenient stores such as; Krogers, Walmart and Schnucks Starbucks strives to bring both heritage and an outstanding experience to life when a customer enters any location.

Promotion Facebook

Twitter

Website

Hour of the day discount specials

Starbucks reward stars

Seasonal and holiday limited drinks

Commercials

Ads

Starbucks card

Gift cards

Price Starbucks prices vary depending on the size.

Starbucks sizes range from tall (small), grande (medium) and venti (large) and trenta ( X-large) . A regular coffee starts at $1.50 plus tax. Any special coffee such as; frappuccinos, espressos, cappuccinos, lattes and mochas start at $3.00 plus tax. Food prices such as; chicken sandwiches, egg salad sandwiches, and chipotle foods start at $ 3.99. Fresh fruit cups start at $2.99.

Brand Analysis

Branding Starbucks brand focuses on three

components: coffee, people and stores. Starbucks has direct control over the quality and processing of the beans used to assure the highest possible quality of the coffee. The store design, atmosphere and aroma all influence to the “ Starbucks experience”. A large reason for Starbucks’ success is the fact the company is dedicated to keeping customers satisfied. There is not one strategy in which the corporation main focus is not directed at satisfying consumers.

Packaging Analysis

The packaging of Starbucks comes in many different colors, styles and shapes. Most colors used for Starbucks packaging are dark, soothing earth tone colors such as; dark green, dark and light brown, dark orange, dark red and white. Green and brown symbolizes the natural products used , red and orange are used to catch the attention of the consumer and white is a classic color symbolizing the high quality of the brand.

Store Ambience

Starbucks store design was inspired by viewing each store as a billboard for the company. Each component was created to emphasize the mood and atmosphere of the store, to make sure everything indicated "best of class" and that it reflected the voice of the community and the neighborhood. Starbucks worked hard to make sure the store appliances, the merchandise displays, the colors, the paintings, banners, the music, and the aromas all came together to create an alluring, positive environment that displayed the love of coffee. Starbucks banned smoking and asked employees/ baristas to abstain from wearing perfumes or colognes. Prepared foods were to be covered at all times so customers would smell the aroma of coffee only. Colorful banners and creative posters were used to living up the look of Starbucks stores and maintain a fresh environment. Promoting seasons and holidays is a way to show the customers we care.

Logo Analysis

The company logo, modeled after a 15th century Norse woodcut, is a mixoparthenos, or "twin-tailed mermaid, or siren known in Greek mythology. However, there were some controversy with the logo that resulted in the logo change. The original logo, the Starbucks siren was topless and had a fully-visible double fish tail. This logo raised controversy because of the bare chest, but the logo continues to appear on some of the products like the Starbucks Anniversary Blend 1 lb. coffee bags. In the second version, her chest was covered by her flowing hair, but her navel was still visible, and the fish tail was cropped slightly. In the current version, her navel and chest are not visible at all, and only vestiges remain of the fish tails. They also removed the name of the company "Starbucks Coffee". The company’s intentions behind this, is to expand the brand beyond just coffee. They also removed the circle around the Siren and the logo now features just the Siren.

SWOT Analysis

SWOT Analysis Strengths

Successful and well known company.

High brand recognition

Multiple social responsible groups and programs.

Focus on community, environmental, ethical sourcing and wellness.

Community – Community Service, Youth, (Starbucks)RED, Starbucks Foundation, Ethos Water Fund

Environment – Recycling, Energy, Water, Green Building, Climate Change

Ethical Sourcing – Coffee, Farmer Support, Tea, Cocoa, Store Products

Wellness – Improving the health in communities by providing balanced food and beverage options to consumers.

SWOT Analysis Weaknesses

Starbuck’s products appear to be relatively expensive.

Low awareness of social responsibility and environmental awareness.

Large amount of socially responsibility competitors

Opportunities

- Low awareness of social responsibility encourages more awareness among consumers.

- Popularity continues to grow.

- Low frequency and exposure among advertising channels.

Threats

- Multiple competitors.

- Lower exposure in stores.

- Economic downfall.

Objectives

Objectives Sales Objectives

We hope to increase the sales of Starbucks by at least 20% in the next fiscal year. As well as raising the awareness of Starbucks’ social responsibility by at least 20%. We will compare our increase in sales and social responsibility to our competitors such as Panera Bread and Folgers.

Advertising Analysis

Starbucks has come a long way with advertising their brand name. Starbucks started off from having no ads, commercials, billboards and posters to having very creative commercials, billboards and ads. Starbucks also has a facebook page, twitter account and website. These social networks allow the consumers to stay updated on the company as well as promotions.

Advertising Objectives

The target audience is 18-25 year olds both male and female. The target audience is college educated. When purchasing coffee they are mostly concerned with price and quality of their coffee.

The overall message will be to raise awareness of Starbuck’s involvement with social responsibility with raising the companies revenue as well.

Media Objectives We aim to target our bulk advertisements to

primary and secondary audiences. Primary: Females 18-25

Secondary: Males 18-25

We aim to increase social responsibility awareness by 20% in the Chicagoland area. By involving multiple media outlets we hope to gain more attention and increase sales through events around Chicago using guerilla marketing, social networking, the auto show, taste of Chicago, various sports events and lollapalooza.

Starbucks ad campaign

Technology

Transcript of Starbucks ad campaign