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US Census Bureau American Fact Finder Profile of General Population and Housing Characteristics: 20102010 Demographic Profile DataMEDIAN HOUSEHOLD INCOME IN THE PAST 12 MONTHS (IN 2010 INFLATION-ADJUSTED DOLLARS) BY AGE OF HOUSEHOLDERUniverse: Households 2010 American Community Survey 1-Year Estimates
Smith, Katherine Taken. "Digital Marketing Strategies That Millennials Find Appealing, Motivating, Or Just Annoying." Journal Of Strategic Marketing 19.6 (2011): 489-499. Business Source Premier. Web.
Starbucks Media Plan
Media Plan: StarbucksMichael 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
Demographics Total Population Size 15-29 30-39 40-49 More than 150 million Americans (18 and older) 64,728,191 40,141,741 43,141,741 drink coffee on a daily 20.9% 13% 14.2% basis, with 65 percent of coffee drinkers consuming Median Household Income their hot beverage in the morning. Householder under 25 $24,143 years Householder 25-44 years $54,024 51.4 million Americans Householder 45-64 years $60,683 living in multigenerational homes. Gender Male 18-49 24.2% Family Households Families 77,538,296 Female 18- 23.9% 66.4% 49US Census Bureau American Fact Finder, Profile of General Average Household Size 2.58Population and Housing Characteristics: 2010 Demographic ProfileData Median Household Income Past 12 Months2010 American Average Family Size 3.14Community Survey 5
RecommendationsTelevision Newspaper MagazinesBroadcast Cable New York Post AllureNBC USA Page Size CosmopolitanABC TNT Magazine Elle TBS Wall Street Journal Glamour FX WWD GQ ESPN The New York Times InStlye InTouchOutdoor Lucky InternetBillboards Rolling StoneBus Facebook Engagement AdsTaxi PerezHiltonSubway/Train Simmons Spring 2010 NCS Adult Survey 6
Rachel Brynes 24, New David Martin, 35, Los Theresa Clark, 45, Ft. YorkNY Lauderdale FL Angeles CA - Meet Rachel. She is a -Meet David. He is an -Meet Theresa. She is a confident hard working mom individual who is ambitious individual that juggles a graduating with a who is just starting his career and family. master’s degree. own restaurant She lives in a She considers business. He believes multigenerational herself a tech its very important to household, which savvy individual. includes her have a strong college age son She is a “media guru” and keeps knowledge of his and mother. She her self updated market. He likes to enjoys watching through online stay informed using a shows on prime news, magazines time television and variety of medias also keeps herself and various social such as newspapers informed by early medias. and TV news. morning TV news. 7
Magazine Rationale InStyle Glamour Median age Education Total Education any 36 Grad college + audience college 67 % HHI income 75 % aged 18-49 81 $50,000 + 72 Employed 71 % % % Median HHI Own home 64 % Median HHI Employed 65 income Married 46 % $63,594 % $77,993 With children 50 Managerial 26 Managerial % % position 31 %*Readers of these magazines are highly employed in professional andmanagerial careers high HHI which permits the purchase of expensive coffeeOur target audience also matches the ages of these readers 8
Magazine Rationale GQ Magazine GQ Allure Total audience Professional Median age Median HHI 18 49 83 % position 49 % 32.5 $66,386 Median HHI Education/C Employed 68.3 $100,000 ollege 66.6 % % Education/coll ege 70 %The target for Starbucks 18-49 has a 195 Simmons Index to get at the top oftheir career readers of these magazines have a high household incomeenabling them to purchase expensive coffee target readers also match theage of our target audience 9
Magazine Rationale Rolling Stone LuckyAudience Employed 72 % Median age Education Adults aged Professionals 23 35.3 College18-54 % graduate 44 % Managerial 23 %HHI $50,000 + College grads61 % 64 % Median HHI Employed 53 % income $82, Professional 36HHI $150,000 + Grad college 293 %14 % 28 %HHI income Attending$100,000 college 14 % 10
Magazine Rationale Elle InTouchTotal audience Median HHI Median age- Women 85 %6,302,000 $71,927 32 years old Men 15 % HHI income $75,000 + 44.4 %Median age Any college34.2 70.0 % Total Median HHI audience 7.9 $67, 496Ages 18-34 million51.7%Ages 25-4955.4 % 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 Wall Street Journal Page Six Magazine Women’s Wear Daily Affluent 2,881,000 Circulation 56562 Readers 25-54 69% Total 192,311 Paid 1,613,062 Audience Circulation Attended 64% College Median Age 42.5 College 88% Degree or Household 51% Mean HHI $214,000 higher Income over $65K Education- 82% Age 25-54 35% College Above 32% Average 257,100 $100K Degree HHI 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 •Broadcast higher viewership Today Show/NBC •Network less (5.49 million) money GMA/ABC (5.14 •Tried to cover all million) aspects of ESPN (554,500) television and chose time when the target is USA (555,700) watching the most. Daytime (1,626,000) GMA: 2, Two Month segments (25 Spots each), February-Today Show: Morning shows are best to March, October-reach the audience. This is when they are This is when fall flavors arepreparing themselves for day. This is the time being released as well asof day that coffee is purchased therefore promotional cups.the best time to reach the target.•6 months out of the year (May-July, Daytime: Chose times whenOctober-December) ratings would be high. Such as•These months are when Starbucks coffee is times when new shows arepurchased the most due to new flavors and being released. (April-May,•30 spots each three month segment September-October) 14
Television Spending $3,000,000 $2,500,000 $2,000,000 $1,500,000 NBC/Today Show $1,000,000 ABC/GMA $500,000 $0 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 summerprogramming 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 Females 18-49 18-49 Buses 149 152 Large Billboards 108 123 Subways 118 140 Taxis 155 143•Given data from Simmon’s research, it can be seen that both male andfemale Starbucks drinkers pay a good amount of attention to out of homeadvertising.•Even though it can not be measured exactly who sees these Ads, we knowthat 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
Other Tactics Considered But NotRecommended 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 inBudget 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 ConcernsWhy is We felt that we would be Why is We saw that Starbucksthereminimal able to best reach our target based on multiple platforms. mobile already had strongvariety Internet Media is significant left out media influences in however we decided to mobile media. We feltusage of place the most emphasis on of your that our efforts andInternetmedias in Facebook advertising because it would provide the media media dollars would beyour media greatest amount of plan? better suited in otherplan? impressions for this group. platforms. Moving Reinforce the Brand Image- We will engage consumers who are already familiar with the forward we brand. Our strategy will create a stronger bond plan to: with the consumer, creating consumer loyalty. Raise Awareness- We plan to generate multiple impressions to acquire new Starbucks customers. 30