Starbucks Shot

About the company

• Opened in 1971 – in present 13.168 coffee shops worldwide

• Is committed to offering the highest quality coffee and the Starbucks

"Experience”

• Current typical user: Women 25-49 years old, college educated $50. 000 / year

income

• From 1996, Starbucks introduced their products in grocery stores and

supermarkets the Starbucks experience was extended also at home

• In Romania Starbucks is considered to be an expensive coffee, which

addresses usually to people with incomes over 500 $ - 1200$ / a month.

Market overview

• The biggest players:

Elite

Kraft Foods Romania

Supreme Imex 90% local coffee market

Nestle

Alca Co

Panfoods

• The coffee products are the 5th most bought products in Romania

• Romania in EU removal of the taxes increase of over 50% of the

market in the next 4 years

Coffee drinks segments

• The biggest segment is the natural fried coffee

• The segment of instant coffee increased with 50% in the last year

The concept of coffee ready-to-drink

• Types of instant and coffee mixes that include all in one: sugar, milk and coffee

• According to a study realized by AC Nielsen one of 3 Romanians has with him

(on the desk, at the office, in the bag, in their car) a sachet of instant coffee

• It takes little time to prepare it and also it decreases the time spent in the

morning to prepare the coffee

• Coca Cola HBC iintroduced in May 2005 the Nescafe Xpress product who

marked the launch of a new category of coffee: the ready-to-drink coffee.

Core value statement

Starbucks Shot ready-to-drink coffee is the

ideal solution for the dynamic young people,

who want to use their time as efficient as

possible.

Competitor analysis – coffee ready to drink

• Nescafe Xpress by Coca Cola HBC - leader of this category in Europe

• 2 assortments: Cafe Late and Latte Macchiato

• Strong points Nescafe Xpress:

the positive awareness of the Nescafe brand,

quality of the product,

modern packaging,

collaboration with Ogilvy Action in Romania for advertising the product

• Weak point - positioning only as a summer coffee drink

Consumer analysis

Primary target market – Young students

• They are interested in their academic results

• Work in student organizations, do volunteering or have a part time job.

• They participate at cultural, sport or other kind of events

• They have a big group of friends and always need an extra plus of energy

• The main words that characterizes these people: proactivity and initiative.

Secondary target market • People of any age that are active, don’t have too much free time and they

grab a ready-to-drink coffee on their way.

Marketing objectives

• Within 6 months, STARBUCKS Shot will become the number one choice for

young people when it comes to ready-to-drink coffee

• Within 6 months to achieve sales of 1 224 000 $ (total number of students in

Iasi 65 000. Half of them- 30 000 will drink 4 cans/months therefore we have

30 000*4*6months*1.7$ - 1 224 000 $)

Marketing mix

1. Product – a chance to test Starbucks• One type of product – NO product line• Short, slender can • Italian Roast coffee with milk• It can be enjoyed anywhere

2. Price• Above other coffee products, in order

to position itself as a product with a higher quality, but less as a premium product

• 1.7 $ /4 RON.

Marketing mix3. Placement

• Large supermarkets like Carrefour, Kaufland Billa and Gmarket

• Many small stores around the campus and university

4. Promotion

• The main idea is to promote the product wherever young people can

be found integrated marketing communication strategy

• conventional media (newspapers and magazines)

• unconventional media (restrooms advertising, electronic displays)

• online interactive campaign dedicated to this product (website

and promotions on specific forums and blogs).

Advertising objectives

• Within 6 months, 80% of the target audience will know that Starbucks products are available in Iasi

• Within 6 months, 60% of the target audience will consider the Starbucks brand the first choice when it comes to ready -to-drink coffee

Creative strategy

The role of advertising• Let people know the fact that Starbucks has entered the market of Iasi with a

new product• Deliver the brand personality: dynamism, energy and self confidence.

Key benefits to be transmitted:• The main idea that will be promoted is the fact that the Starbucks product will

help young people to feel more fresh, active and with more energy. • With more energy, in the same amount of time, people will do more things.

Description of the prints

Creative idea: “Days are now longer”

The idea is to transmit the fact that the cuckoo has to go out more times, now that the days are longer and have more hours.

Description of the prints

Creative idea: “Months are now longer”

A calendar of the January month which has 47 days instead of 31.

• Scene 1 – a clock shows the hour 7:45 in the morning

• Scene 2 – A young boy enters a class. He’s fresh, the type of cool boy, that most probably owns an Ipod. He finds a free place and takes a sit.

• Scene 3 – Another boy comes near of him. He’s trying to say something but he’s talking in slow motion. Boy 1 tries to understand but he gets bored. The sound is like on a slow motion and everything seems to move very slowly, except Boy no. 1

• Scene 4 – Boy 1 is bored and starts doing anything in order not to be bored anymore. So in 10 minutes he starts doing a lot of funny and time consuming activities that he finishes very fast. These images are showed one after another, and on the background you can hear Boy 2 voice in slow motion.

• Scene 5 – Boy 1 hands Boy 2 a Starbucks shot. He tastes it and he starts talking normal, and not in a slow motion anymore.

• Scene 6 – Time has now a new meaning. Move faster with Starbucks Shot

Description of the video

Where will Starbucks Shot be promoted?

• Coffee shops/ Bars

Most of the young people are more likely to be found there after 18:00

There will not be other special points of purchase (ex: a special fridge

like in the case of Red Bull)

Locations near the campus (Timeout, Pizza Magic) or in the centre of

the City (No8 Café, Arte Café)

The bars in Tudor : Pizza Pazzo, Manhattan and Pub 25

Way of promotion• printed ad, commercial on the LCDs

Where will Starbucks Shot be promoted?

• Universities

Students spend around 4 days per week in the university

Posted the entrance in the university (at the billboard with news),

the restrooms, and the library (on the desktop of the computers)

The main objective is to reach all types of students

Starbucks name will be promoted at every important event during

the life of a student

• Way of promotion: printed ad on the billboards and on the desktops, flyers

Where will Starbucks Shot be promoted?

• Malls The main malls targeted here are Iulius Mall and Carrefour

• Way of promotion

Printed ad, commercial on the LCDs, flyers

Sales promotion – 6 product testing campaigns / during the weekends

The man that will distribute the give away’s will be wearing a can as a

costume

Public relations - sponsor the usual concert organized by the Iulius

mall in the Tudor campus, before Christmas.

Ear covers

Give away

Umbrella

Give away

Where will Starbucks Shot be promoted?

• Supermarkets

The ones where the product will be distributed

There will be product testing and flyers distributed in order for the people

to know where to buy the product.

• Outdoors

The ones in the campus or near the supermarkets

City lights are also a good option.

In what local publications will Starbucks

be promoted?

• City guides

Free magazines that are distributed in bars and coffee shops: IS24FUN, Zile

si nopti (Days and nights), Cityscape

• Student publications Opinia studenteasca (Student’s opinion), Fitzuica, B606

Online promotion

• Website - www.Starbucksshot.com

“Shoot with Starbucks shot” - the game’s objective is to throw as many

Starbucks cans as you can, in 1 minute, in a man that moves around the screen.

As the user throws cans at him he starts moving really fast

A quiz – How sleepy are you? - the results will be delivered as Starbucks

messages: “You are practically dreaming. Don’t know if this game is for real or

only in your dreams. A Starbucks shot would give you an answer.”

• Avatars - “No hangover. I have my Starbucks shot” / “No boredom. I have my

Starbucks shot”

Other promotion activities

• Sponsorship

Participate as a partner at University’s Olympics and at AIESEC (NGO)

trainings. In this way the company will have access also to the elite

students and young people that will become in future, because of

their incomes, the target market for a Starbucks coffee shop.

Advertising budget

Element Expenses ($)

Video production 15 000

Media space 27 500

Outdoors 7200 / 6 months

Contracts with magazines 1450

Sponsorships 5000

Sampling 1000

In-store displays 4000

Website (production +hosting) 10 000

Total 80 650

Testing and Evaluation

• Pretesting of the prints – focus groups with people from the target market

• Post testing of the campaign – questionnaire in order to measure the

awareness of people regarding the presence of the product in Iasi and the

perceived quality by the consumers

Thank you!