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1. Situation Analysis Industry Analysis-Political Issues-Stability of countries, such as Costa Rica, where Starbucks purchases it’s coffee beans from and also natural disasters affecting these countriesThere have been calls for boycott of Starbucks stores and products because it has been claimed that Starbucks sends money to the Israeli military, but this has been based on a hoaxIn August 2004, it was wrongly told that Starbucks had stopped supplying the military with coffee donations because the company did not support the Iraq War. The story became viral, being sent to tens of millions of peopleIn January 2012, a Starbucks executive stated it supports the legalization of same-sex marriage. This resulted in a boycott by the National Organization for Marriage, a political organization that opposes same-sex marriage, who received 22,000 signatures in their favor. Also, 640,000 people also signed a petition thanking Starbucks for its support.Economic-Ensuring that coffee farmers are provided with a fair living wageRecession and unemployment ratesSocial-Protecting the rights of workers and ensuring safe, fair and humane working and living conditionsProhibiting of child and forced laborTechnological-Company uses automatic machines that blocked eye contact between baristas and customersLegal- Need to engage in fair business practices. Starbucks has been criticized for doing things such as purchasing prime locations and operating some of these locations at a financial loss in order to drive out smaller competitors Engaging in good employee relations Abiding by health and safety regulationsEnvironmental-Starbucks is an environmentally friendly company meaning that they need to partake in practices such as recycling, proper disposal of waste, using biodegradable containers and utensils, and lowering pollution rates. B) Competitors to Starbucks-Direct CompetitorsDunkin’ Donuts: 10,083 stores worldwide (US: 7,015 in 36 states, 3,068 international countries)Serves more than 3 million customers a day52 varieties of donuts, plus breakfast sandwiches and other food More than a dozen coffee drinks available, plus seasonal drinksIndustry Recognition: #1 in iced and hot regular/decaf/flavored coffee, #2 in breakfast sandwich servings, and #1 in customer loyalty in the coffee category since 2007 (that’s currently eight years running)Sales approximately are about $7.4 billion annually, on a global scaleCheaperMcDonald’s:World’s leading food service retailers Stores in more than 100 countries More than 35,000 restaurants Serving nearly 70 million people everyday Made of 100% freshly ground espresso (Arabica beans) McCafe includes over 20 drink options, plus seasonal drinks Sales approximately around $27 billion dollars CheaperIndirect CompetitorsNestle “Nescafe”:Products include: Nescafe Clasico, Coffee-Mate, Dolce Gusto, Nescafe, etc.Made from 100% pure coffee, from blended varieties of coffee beansPromotes antioxidant benefits and the health benefits coffee can bringOther store brought popular coffee brands for in-home brewing:Folgers Maxwell C) Company Analysis Visions & Values Mission Statement: “To inspire and nurture the human spirit one person, one cup and one neighborhood at a time.” Starbucks has always believed in serving the best possible coffeeTheir goal is to have all of their coffee “grown under the highest quality of standards, using ethical sourcing practices.”Their buyers travel to Latin America, Africa and Asia Starbucks enjoys having a quality service, and inviting atmosphere, and an exceptional beverage.Sales/ ProfitsIn January Starbucks (SBUX as is on stocks):Announced a quarter of strong earningsTotal revenue for the company jumped 12% to $4.2 billionOperating income swelled 29% to $814 millionNet income for the quarter stood at $540.7 million or 71 cents a share which is an increase of 25% over the previous yearThe company stuck to its previous guidance of generating revenue growth of .10% in fiscal 2014Starbucks raised its full year earnings estimate to $2.59-2.67 per shareSales slowed down however5% same-store sales growth, compared to 9% the previous year quarter (which is still impressive)Customer visits were higher (up 4%)TrendsDuring 2014 Starbucks plans to open more than 1,500 new stores mainly to be concentrated in China, Asia, the Pacific Region, and South AmericaChina plans to triple the number of outlets to 1,500 by 2015South Korea plans to double the number of stores to 700 by 2016Opened its first outlet in India in 2012Plans to accelerate growth in the next 2-3 yearsAt the end of 2013 there were 10 million active customers who used Starbucks’ mobile appMarketing Plans (past/present/future)Marketing segmentation: Stays with the upper-scale of the coffee market, competing on comfort rather than convenienceOne of the earliest adapters of the use of social media for marketing and social commerceStarbucks has taken a leadership positionNo real marketing needed- the brand sells itselfJessica Hische- made the most recent ads for Starbucks (they turned her typography into foods to be photographed for magazine ads)In the past there was more marketing than there is nowIn the future they will rely heavily on the Starbucks appPresent Brand IdentityCurrently branded as trendy coffeeThe logo is the double-tailed sirenTuesday March 8, 2014 Starbucks changed their logo, which they started publishing on cups firstThey changed the logo at the 40 year anniversary to keep things interesting for customers“I feel like we’ve unleashed the siren, a mythological figure who represents the romance and creativity that inspired the founders of Starbucks 40 years ago. I hope that unleashing that energy- that mojo-will keep us (and you) inspired for the next 40 years.” Thomas P., interactive content managerD) Consumer Analysis College Student: Michael Clark Age: 21-4572000Michael is currently a student at the University of California, Berkley, studying pre-law, and currently applying for Law School to continue his education next fall. He’s full time when it comes to his course and currently participates in the following activities: active member of Sigma Lambda Chi fraternity, debate team, and plays intermural soccer. His usual schedule has him up early in the morning, and going late nights to study for exams and finals, sending in applications, and also spending the little free time that he has hanging out with his fraternity brothers and girlfriend. Michael likes his “usual” cup of coffee to get him through the day, and sometimes one at night for cramming in an extra study hour or two.Business Women: Jamie Dylan Age: 27-6858006794500Jamie is a well-established communications specialist at Energy Solutions. She graduated from the University of South Carolina with a BA in Communications, and eventually went on to achieve her MBA. Currently working and residing in Columbia, SC and is recently married, with no children. She seeks products that are suited to her busy and jam packed life style. She considers herself classic yet whimsical, and looks for those qualities when it comes to the products she purchases for herself. Jamie loves spending time outdoors, part of the healthy lifestyle she pursues to live. But she also enjoys watching programs on The Food Network, ABC Family, and USA Network. She loves reading magazine publications too, examples including Better Homes and Gardens, Cosmopolitan, and In Style.Relative Values in contribution to sales or brand imageKeeping it up scale with the educated customersSimple- easy for on the goSales- on the way to work, easy and fast, helps keep them going through the work dayE) Brand Audit Starbucks was started as one single store and has now expanded to more than 16,000 locations in more than 50 countries. Since succeeding from that one store in Seattle to the popular name brand people know and love today, they are still trying to create new products services to sell and promote in their retail locations, hence the idea of Greek yogurt being added in to their cafes. They also, not too long ago, started selling products outside of their stores, including ground coffee beans, already made beverages, ice creams, and even liquor. And you can find those products nationwide, including popular stores, such as Kroger, Target, Wal-Mart and other market places. You can also purchase all their different coffees, products, and merchandise online to be shipped anywhere around the world. Though Starbucks does have a reputation for being quite an expensive cup of coffee, it also has the positive reputation of great taste, overall satisfaction, and has become a household name of where people go to get their “usual” cup of Joe in the morning.2. SWOT Strengths High quality product Strong brand equity#1 brand in coffee house segment valued at $4 billionLargest coffee chain in the worldPassionate Company Social Media presence Available in big named storesAlways looking for opportunities to expandSuccessful customer loyalty (example: )Weakness Pricing (“too much for a cup of coffee”)Doesn’t participate in fair tradeProducts are labeled unhealthySome products don’t have much awareness (i.e. Greek yogurt)Opportunities Expansion in more European countriesIncrease what products they offer (example: Greek yogurt to the menu)Ways to attract other prospects, and not just coffee drinkersThreats Strong competition, especially when it comes to pricing reasonsNewer products might make the consumers hesitant to try themBigger, popular companies tend to have backlashHealth concerns3. The Challenge(s)There is currently a lack of awareness about Starbuck's Greek yogurt because it is a new product that few people will likely know about.?According to our research and the results from our survey, most people primarily think of 'coffee' whenever they think of Starbucks, not food or Greek yogurt.?Our survey and research also found that most people rarely deviate from their regular order whenever they go to Starbucks. Therefore, for Greek yogurt to be a successful product in Starbucks, we believe that ordering it will likely have to become a part of certain customers' routines. Thus, our campaign will be focused on turning Greek yogurt into the "New Usual".??Specific: We will successfully place Greek yogurt into Starbucks stores while raising awareness for the new product. We will do this by using a combination of social media, print media, radio ads, digital media, and out-of-home advertising such as billboards.Measurable: We will raise awareness for Starbucks' new Greek yogurt by approximately 45% a month.?Attainable: We will raise awareness for the product using social media, print media, radio ads, digital media, and out-of-home advertising such as billboards. At first we will primarily focus our efforts in the West Coast and in large cities within the United States where Starbucks is most popular. Afterwards, we then plan to expand Starbuck’s Greek yogurt throughout the United States.?Realistic: By placing Greek yogurt into Starbucks stores and successfully implementing the “New Usual” campaign, Starbucks will add Greek yogurt to their product line-up and help establish them as more than just a coffee shop.?Timely: By April, we aim to have Greek Yogurt placed in several popular Starbucks stores within large cities. Dependent upon its success, we will expand the Greek yogurt to the West Coast by June, and we hope to expand this product to all stores in the United States by July 2014. 4. Branding Strategies Solutions Better advertising for the Greek yogurt (communication) Better advertising placement Magazines: US Weekend Carrier, Allure, Better Homes and Gardens, Men’s Health, National GeographyBillboards in large cities (Los Angles, New York, Seattle)Bus Stops, Subways, airports etc.Guerilla Advertisement Ideas: A giant model of the Starbucks’ Greek yogurt cup that will be interactive (a foam pit for people to jump into) and also an airport campaign that will also be interactive that features the different flavors available of the yogurt at a counter you can take you picture at to show our new slogan, “A Healthier you is a happier you, enter the new usual”.More ads in larger cities Internet ads on Facebook, and Twitter:For Guerilla advertisement: Have two hashtags created “#StarbucksGoesGreek and #TheNewUsual” on put campaigns so people can share their adventures, Starbucks can seem them in action, and also share. Possibly offer a discount to try the Greek yogurt if they tweet or Facebook using the designated hashtag.Live tweet what’s happening at the giant foam cup, make people interested, share, and go them selves.Facebook advertisementPandora and Spotify adsOn-Campus Advertising:Brand ambassadors for Starbucks: reaches our consumer of college-aged customers, pass out yogurt in the morning.“Start your day with the healthy new usual” Gets more awareness of yogurt to college campuses that feature Starbucks on their campus, and also our new approach of a healthier option since a lot of college students usually have the same complaint of their campuses not offering healthier options for meals. Product PositioningOffer the Greek yogurt as a side item/combo option to go along with their breakfast sandwich line5. Communications Framework With our campaign we want to achieve having healthier menu options available to the customers of Starbucks to have greater variety when it comes to health conscious decisions. We want to communicate that Starbucks acknowledges the customers want for healthier menu options, and is reflecting that in the addition of Greek yogurt. We want to emphasize health conscious foods, and the idea of making this healthier option the ‘new usual’. The message that we want to convey is that while Starbucks will still provide all the same menu options as before, they want to introduce a new, flavorful, health-conscious option that can allow people to create a ‘new usual’ order for when they enter any of the Starbucks stores. The target market for the campaign is 18-30. It is meant to be marketing towards the college student who is always on the go, and the young professional gaining credit in their field. College students like Michael, who are always in a rush, are looking for products that will be a healthy addition to the day, while being delicious; he is looking for something satisfying to give him the extra nutrition to get him through his busy class schedule. For customers like Michael, who are frequently on social media, we found it best to market to him through twitter using hashtags (#TheNewUsual, #StarbucksGoesGreek) to promote our campaign. We will also market to him through ads on Spotify, and Pandora, for when he is listening to music between classes. Our older market, such as people like Jamie, are young professionals, who are finally aware of what fast food actually does to your body, and is looking for the healthier options in her food choices. Customers like Jamie are loyal to Starbucks and rely heavily on the coffee to get them through the long work day, so they also are wanting the healthier menu options to make it a one-stop deal, where they can get a great cup of coffee while something to satisfy their hunger. We are targeting this market segment with our guerilla advertising billboards in airports, as well as the guerilla campaigns happening in larger cities where they are commuting to work. Our advertisements will run in big cities like Los Angeles, Seattle, Portland, San Diego, etc. (mainly large cities located on or around the West Coast). Most of the ads will be displayed on social media: Facebook, Twitter, Spotify, Pandora. The other large segment of the advertising will be print ads in magazines such as US Weekend Carrier, Allure, Better Homes and Gardens, Men’s Health, and National Geographic. 6. CostFor our advertising campaign, we have allotted a total of $3.5 million. The campaign was then broken down into eight different subcategories in which the total budget was divided. The eight subcategories within our marketing campaign are Internet advertisements, print advertisements, in-store displays, outdoor signage, guerilla marketing, on-campus advertisements, in-store samples, and post-campaign surveys. Each category was broken down individually and allotted a percentage of the total campaign budget. The percentages are as follows:Internet Advertisements = 15% ($525,000)Print Advertisements = 35% ($1,225,000)In-store Displays = 10% ($350,000)Outdoor Signage = 10% ($350,000)Guerilla Marketing = 5% ($175,000)On-campus Advertisements = 15% ($525,000)In-Store Samples = 5% ($175,000)Post-campaign Surveys = 5% ($175,000)Total = 100% ($3,500,000)7. SummaryStarbucks Greek Yogurt is the new health conscious menu option that caters to the needs of its customers whom are looking for more variety in the Starbucks menu. Our first step in making consumers more aware is to branch out into larger cities and see how people in highly populated regions react to the ads. Starbucks Goes GreekJOUR 300Lauren Cox | Lexxie Beckmeyer | Jake Fackler | Chas Hooper | Amanda Peerce | Tyler ButlerReferencesBuchanan, M. (2013, November 5). Better Brewing Through Technology.?The New Yorker. Retrieved May 6, 2014, from Information. (n.d.).?Starbucks Coffee Company. Retrieved May 6, 2014, from , J. (2014, March 5). Starbucks PESTEL Analysis.?Research Methodology. Retrieved May 6, 2014, from - Error. (n.d.).DunkinBrands - Error. Retrieved May 6, 2014, from Coffee - The Best Part of Wakin' Up. (n.d.).?Folgers Coffee - The Best Part of Wakin' Up. Retrieved May 6, 2014, from House Coffee. (n.d.).?Maxwell House Coffee. Retrieved May 6, 2014, from é. (n.d.).?McCafé Bring Back the Break. Retrieved May 6, 2014, from Grown and Fair Trade Coffee. (n.d.).?Starbucks Coffee Company. Retrieved May 6, 2014, from , G. (2014, January 30). Starbucks' Profits Surge Despite Sales Slowing Down.?Forbes. Retrieved May 6, 2014, from TO THE WORLD OF NESCAF?‰. (n.d.). Home. Retrieved May 6, 2014, from are the political-legal factors affecting starbucks business? - Yahoo Small Business Advisor. (n.d.). Yahoo Small Business Advisor. Retrieved May 6, 2014, from ................
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