spring fy17 promo results & fy18 final assortment · success of the fy17 offering ... •...

SPRING FY17 PROMO RESULTS & FY18 FINAL ASSORTMENT

JULY 2017

WHERE WE ARE IN THE PROCESS

FY18 FINAL ASSORTMENT

FINDING REVIEW

• Review information gathered through assessment.

• Present to market leads with insights & recommendations

• TIMING: April ‘17

• Review Card assortment recommendations with markets

• Present final card designs

• OBJECTIVE: Help markets prepare for ordering (plan & forecast)

• TIMING: July ‘17

MARKET ASSESSTMENT

• Market & Consumer Insights Gathering

• Compiling SKU level data from First Data & non-First Data markets

• TIMING: March ‘17

2Starbucks Confidential – INTERNAL USE ONLY

FINAL ASSORTMENT SHAREOUT / MKTS BEGIN PLANNING ASSORTMENT

CARD ORDER INTAKE OPENS MBU CARD ORDER DEADLINE IN-DC Launch

24-Jul-17 21-Aug-17 30-Aug-17 22-Jan-18 19-Feb-18

204,757

74,252 8,267

381,631

57,874 4,157

CAP EMEA LATAM

Total Activation Quantity* 2016

2017

2016 2017 2016 2017 2016 2017

Sell-thru* 57% 83% 23% 21% 43% 3%

# of SKUs 19 21 17 14 1 4

SPRING FY18 PROMO RECAP – Global card activations increased by 51% YoY bringing in $5.4MM in total $ activated.

3

Current Promo YoY Change

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Participating Markets* 23 +3

Designs Offered 5 +1

Total Quantity Ordered 990K +22%

Total Activation Quantity 527K +51%

Total Sell-thru 53% +10ppts

Total Activation $ $5.4MM +66%

$/Activation $10.32 $1.01

Cost/Card $0.21 $(0.03)

PERFORMANCE HIGHLIGHTS:• There was significant increase to all metrics; up 66% in total activation $ YoY. Special Edition

Siren activations increased 144% YoY, which was largely attributed to China’s 91% sell-thru on nearly 200k cards used for their MSR program, which drives larger volumes than SVC.

• Siren & Sakura increased in performance, while Spring Seasonal & Easter offerings declined• All CAP markets increased YoY in total activation $, with the exception of Indonesia (currently

confirming performance with market)• EMEA continues to show low sell-thru, as does LATAM, who declined significantly in sell-thru

YoY, due to launch timing associated with card assortment (launched outside of promo period)• 48% of Siren LTO e are being used as Core and were not sold in Spring

KEY IMPLICATIONS: • Due to low activation count, we will eliminate the Easter Standard Card from the assortment

and reduce to 4 promo offerings• We want to further strengthen Sakura, so are partnering with CAP Merchandise to marry a

card/merch collection for the FY18 promo. Card designed by Starbucks Japan. • We will continue with a more brand forward (logo) Siren vs an artistic depiction based on the

success of the FY17 offering• We will make adjustments to the Spring Seasonal & Easter offerings to improve performance• Due to the Siren LTO being used as a Core offering, we will consider adjusting the overall Brand

forward assortment

• *All markets included• Current Promo figures include First Data markets, China, Singapore, Philippines. YOY Change excludes Korea & Malaysia• Only includes SKUs with activations made during the promo period (inclusive of fiscal weeks 21-30)• All dollars in USD

+82%

-23%

DesignTotal Activation

QuantityYoY

ChangeComments

Special Edition Siren

273K +193%Driven primarily by

China with MSR offering

Spring Seasonal 96K -23%Decreased YoY

results driven by the UK, Ireland and China

Easter Diecut 71K +13%Driven by Hong Kong,

Philippines & Thailand

Sakura 63K +19%4 key markets

ordered and sold through at 75%

Easter Standard 22K -

Total sell-thru of 31% across all markets, was largely due to low sell-thru in the

UK

PERFORMANCE BY DESIGNPERFORMANCE OVERVIEW

PERFORMANCE BY REGION

-51%

• Total Activation Quantity includes iFirst Data markets, China, Singapore, Philippines. YOY Change excludes Korea, Malaysia and Indonesia due to insufficient data

Starbucks Confidential – INTERNAL USE ONLY

* Applicable to First Data markets & China. Excludes Korea & Malaysia.

Driven by China’s MSR Siren offering

Driven by Mexico selling Siren off-cycle

New up-leveled carrier artwork available for local production

21 Feb – 30 Apr (~10 weeks)

DIGITAL & SOCIAL

B2B (if applicable)

Drive Seasonal Excitement, Everyday Gifting and Brand Spark with the Sakura Card/Merch pairingCARD OBJECTIVE

NOTED HOLIDAYS Easter

RETAILCAMPAIGN MESSAGE

CAP: Coffee Passion & Craft – highlight unique coffee moments for deeper customer connectionThe campaign is focused on coffee leadership and craft, highlighting each “beverage moment” such as layers, swirls and blending of colors, to create visual and appetite appeal. The LTOs highlight different coffee experiences and preferences, from format to temperature – it’s something for everyone. LTOs are Tahitian Vanilla Macchiato (classic), Macadamia Cocoa Cappuccino, and Iced Butterfly-pea Lemonade Cold Brew. Spring Sakura retail & beverage play to drive local relevanceTelling the Spring sakura, or cherry blossom, story through coffee, beverage spark, merchandise and Card. This is an incredibly popular moment in Spring where the CAP market’s retail landscape is transformed into shades of pink to celebrate the sakura season. This year there are two phases of sakura merchandise, as well as a romantic, floral pink Strawberry Honey Creme Frappuccino beverage spark.

EMEA: Micro-ground Tea Latte launch, Cold Brew/Craft Sustainment, Health and Wellness on Food. Possible play on Earth Day and Reusable Cups

LATAM: Northern Hemisphere - Alternative Dairy Personalization/Cold Brew LTO, AM daypart for food—breakfast sandwichesSouthern Hemisphere (Summer 2) - Teavana brand launch with LTOs, Return of Yogurt Frappuccino, Afternoon Bakery for foodBoth Hemispheres - MSR/SR Acquisition

BRAND

EVERYDAY

Siren Scales

Starbucks Wordmark

Multilingual Thank YouCelebration

Easter Egg Diecuts & Backers

LTO

SPRING FY18 GLOBAL CARD OVERVIEW

Spring Siren


Reserve Card

Arabic Thank You (MENA Only)

Spring SeasonalSpring Sakura

PROMO PERIOD

FY18 EVERYDAY SIREN SCALES CARD

Starbucks Confidential – INTERNAL USE ONLY 5

Product Intent: Everyday “Coffee” offering

Design Callouts: Layered artwork with a white pearl post lamination

Card Activation: Magstripe

Final Cost: $0.17ea

Packout: 50

IN-DC: Approximately January 22, 2018

Suggested Promo Period: Spring/Summer promos

*Available for Norway with NFC

FY18 CELEBRATION CARD


Product Intent: Everyday “Celebration” offering

Design Callouts: Layered artwork with silver foil post lamination


Final Cost: $0.17ea

Packout: 50




FY18 MULTILINGUAL THANK YOU CARD


Product Intent: Everyday “Thank You” offering

Design Callouts: Layered artwork with silver foil post lamination


Final Cost: $0.17ea

Packout: 50



IMPORTANT TO NOTE: There are two versions to this card.

Version A hosts: English, Spanish, French, Traditional Chinese, Thai, Filipino

Version B hosts: English, Portuguese, German, Korean, Simplified Chinese, Hindi


Version A

Version B

FY18 SPRING SAKURA CARD (Tied to CAP Sakura Merch)


Product Intent: Brand Spark! (associated with merchandise)


Estimated Cost: TBD <$0.25ea

Packout: 50


Suggested Promo Period: 21 Feb – 30 Apr

*Final Layout Pending

• Recommending that markets display with the associated merchandise in-store

• The Siren’s Eye will reflect intent, but markets need to think through tactics to tie purchase of both card & merch

FY18 SPRING SEASONAL CARD


Product Intent: Springtime Excitement!


Final Cost: $0.17ea

Packout: 50




FY18 SPRING SIREN CARD


Product Intent: LTO “Spring Siren” offering


Final Cost: $0.17ea

Packout: 50




FY18 EASTER EGG DIECUTS & BACKERS


Product Intent: “Easter” offering

Card Activation: Barcode

Final Cost: $0.32ea

Packout: 25


Suggested Promo Period: 5 Mar – 1 Apr

TO/FROM messaging area included on back of card backer

TO-GO CUP CARD CARRIER


Product Intent: To up-level the gifting of Starbucks Giftcards

Recommendations:

• Display at your POS (leverage merchandise display solution shared in the Winter share out – native files located on Dropbox)

• Test a minimum load requirement associated with obtaining this offering (e.g. customer gets carrier for free with a minimum load of XXX on any card

• Please notify GG&C team if you will leverage this design, andshare final product pictures & go-to-market strategy

IMPORTANT TO NOTE:

• Native artwork files to be shared with markets in September

• Markets to leverage artwork and produce locally

EVERYDAY

CARDS AVAILABLE FOR ORDER/REORDER VIA CARD ORDER PORTALORDER INTAKE: AUGUST 21-30, 2017

BRAND


Siren Scales Card

Final Cost: $0.17ea

Packout: 50

FY18 Celebration

Final Cost: $0.17ea

Packout: 50

Starbucks Wordmark Card

Final Cost: $.15ea

Packout: 50

Easter Egg Diecuts & Backers

NOTE: All 4 designs to be skittle-packed

Final Cost: $.32ea

Packout: 25

Spring Siren

Final Cost: $0.17ea

Packout: 50

LTO

FY18 Multilingual Thank You

Final Cost: $0.17ea

Packout: 50

Arabic Thank You

Final Cost: $0.25/ea

Packout: 50

Spring Seasonal

Final Cost: $0.17ea

Packout: 50

IMPORTANT TO NOTE: The Brand & Everyday cards will NOT be available for reorder.

Ensure that you forecast inventory for BOTH Spring and Summer promos (Feb – Aug).

Spring Sakura

Esimated Cost: <$0.25ea

Packout: 50

*Marries with CAP merchandise

NEXT STEPS

1. PLAN YOUR ASSORTMENT• Forecast accordingly!

• IMPORTANT TO NOTE: There will be no opportunity to reorder the Brand & Everyday cards included onslide 13. Forecast quantities through Summer promo (March through August). Refreshed designs willbe available in the Autumn solicitation.

• Discuss your planned assortment with your local Merch and Marketing teams to understand where Card can tie in during the Spring promo (e.g. Sakura)

2. ORDER YOUR ASSORTMENT• The Card Order Portal will be open for order intake August 21-30, 2017 on cards featured on Slide 13 only.

In preparation:• If you do not have a login, please email Lauren directly to request ([email protected]) for your

market (only one login per associated market)

2. Please field questions regarding the following through your regional or market Global Loyalty & Digital lead. • Forecasting Orders• Specific cards that your market needs to support a particular promotion that are not shown on slide 13.NOTE: Custom “market” cards will still be available under your market’s login for reorder.

• JAPAN: Karen Semans ([email protected]) • CHINA / TAIWAN: Wayne Wang ([email protected]) • CAP: Janae Hagen ([email protected]); Ashwin Shastri ([email protected])• EMEA / LATAM: Meredith Wegley ([email protected])


mailto:[email protected]






APPENDIX

KEY MARKET FINDINGS THAT IMPACT DATA RESULTS


NOTE: We are only reporting on card designs that have activations against them, unless otherwise advised alongside the data.

OVERALL5 of 12 participating markets, equating to 48% of total Special Edition Siren Card orders, did not sell the card during its intended promo period. With markets considering this offering to be a core offering outside of the promo, the GG&C team will be rethinking our approach to the brand card rotation.

CHINAChina has two card programs, SVC and MSR. MSR cards are much more popular in the market, but drive a lower load and $/activation, which effects data results YoY.• SVC cards are available with $100 or $200 RMB ($15 or $30 USD) preloaded• MSR cards are preloaded with 88RMB ($13 USD)China used art for MSR in 2017 and SVC in 2016.

MEXICOMexico did not offer the Spring Siren card during the Spring promo period (FW 21-30). Plans to offer later in the year, which drove very low sell-thru in this share out.

KOREA & MALAYSIAData for these two markets is not backloaded into our Business Intelligence tool, which is the reason that we cannot provide YoY results

INDONESIAFirst Data assigned the same promo number (tracker of data associated with the card) to two different SKUs, therefore their orders were combined and we cannot accurately report specific design performance, nor YoY results. We are confirming outstanding questions with the market & FD.

SINGAPOREThe Siren card was paired with a Create-Your-Own Tumbler and sold as a set. With no value loaded to the cards, it impacts $ Activations and $/Card, but minimally (14k cards)

PERFORMANCE BY DESIGN

Cost# of Participating

MarketsTotal Quantity Ordered $USD Activations Sell-Thru % $/Activation

Description Card ImagePY Card Image

FY17YOY

ChangeFY17

YOYChange

FY17YOY Growth

%FY17 (MM)

YOYChange

FY17YOY

ChangeFY17 YoY Change

PR

OM

O

Special Edition Siren

$0.18 $(0.02) 9 -1 519K +56% $2.96 +241% 53% -14ppts $10.86 $1.53*

Spring Seasonal $0.18 - 8 +3 203K +7% $0.65 -28% 26% -13ppts $13.53 $(0.92)

Easter Diecut $0.32 $(0.02) 7 - 111K -52% $0.8 +44% 65% +21ppts $9.61 $2.03

Sakura $0.22 $(0.08) 4 -1 86K +8% $0.85 135% 73% +6ppts $15.36 $7.60

Easter Standard - $0.18 n/a 3 n/a 72K - $0.15 - 31% - $7.16 -


Data inclusive of FD markets + ChinaYOY results exclude Korea, Malaysia and Indonesia

Global ProductionPricing

Data inclusive of all markets

$/Activation significant increase notes:• Siren driven by China• Sakura driven by China• Easter Diecut driven by the Philippines

*China offered Sakura as a SVC offering, driving minimum $/Activation up ($15 or $30USD per activation)*Low sell-thru of Special Edition Siren caused primarily by Mexico (0%), Ireland (0%), the UK (21%) and Germany (18%)

MARKET PERFORMANCE - CAP

# of Total Designs Total Card Quantity Ordered $USD Activations Sell-Thru % $/Activation

CountryFY17 YOY Change FY17 YOY Change FY17

YOYChange

FY17 YOY Change FY17 YoY Change

Australia*1 +1 4,800 - $17.6K - 37% - $9.80 -

China3 +1 236,645 +522% $2.8MM +537% 81% +41ppt $14.62 $(14.39)

Hong Kong*2 -1 28,800 -25% $266.8K 0% 87% +27ppts $10.69 $(0.91)

India- - - - - - - - - -

Indonesia*3 +1 86,400 -53% Confirming with Market

Japan*- - - - - - - - - -

Korea*1 +1 48,000 - Confirming with Market

Macau*- - - - - - - - - -

Malaysia*3 - 72,000 - $610K - 71% - $11.92 -

Philippines2 - 48,000 +18% $555.5K +91% 91% -6ppts $12.50 $4.81

Singapore1 +1 14,000 0 - 100% - - -

Taiwan- - - - - - - - - -

Thailand*4 +1 115,200 +38% $525.5K +71% 82% -28ppts $5.54 $1.07


Data inclusive of FD markets + China, Singapore and PhilippinesYOY results exclude Korea , Malaysia and Indonesia

* First Data Market

Data inclusive of all markets

MARKET PERFORMANCE – EMEA



YOYChange


Austria 1 - 4,800 - - - - - - -

Cyprus* 0 -1 0 -100% - - - - - -

Czech Republic 3 +1 14,400 +50% - - - - - -

France* 2 - 9,600 -

Germany* 4 +1 28,800 -25% $70.5K -13% 19% +2ppts $12.66 $0.57

Greece* 0 -1 0 -100% - - - - - -

Ireland* 2 - 33,600 0% $50.5K -73% 17% -44ppts $8.77 $(0.46)

Kazakhstan - - - - - - - - - -

Kuwait 1 +1 4,800 +100% - - - - - -

Northern Ireland* 2 - 14,400 -75% - - - - - -

Norway 0 -2 0 -100% - - - - - -

Poland 3 +1 24,000 +67% - - - - - -

Saudi Arabia - - - - - - - - - -

South Africa 1 +1 4,800 +100% - - - - - -

Switzerland 2 -1 14,400 -50% - - - - - -

UK* 4 +1 201,600 +20% $462.5K -11% 21% -4ppts $10.72 $(1.25)


Data inclusive of all markets Data inclusive of FD markets

* First Data MarketIRELAND: • Low performance on both SKUs (same order qty, less sell-thru YoY)• Sold Siren as LTO PY, not in FY17• Spring Seasonal decreased by 50%

MARKET PERFORMANCE – LATAM



YOYChange


Argentina*- - - - - - - - - -

Brazil*1 +1 9,600 +100% - - - - - -

Chile*- - - - - - - - - -

Mexico*2 +1 148,800 +675% $34K -42% 3% -40ppts $8.42 $1.33

Peru*- - - - - - - - - -


Data tracked by GG&C Team Data inclusive of FD markets

* First Data Market

MEXICO:• Changed seasonal offering from Sakura to Egg Diecut and saw decrease in performance (~50%) YoY• Low sell-thru due to Siren (ordered additional SKU, but did not sell during promo period)

spring fy17 promo results & fy18 final assortment · success of the fy17 offering ... •...

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