Social TasteThe interaction Matters

Duck Advertising was established to generate creative and thought provoking advertising. We at D.A. believe the quality and success of our business is achieved through team collaboration and hard work.

To provide the highest quality, entertaining and unique advertising for a diverse clientele.

So CloseBut Not At All The Same

BackgroundMarket and Brand In Depth

• Starbucks’ success comes from their focus to maintain founding principals as they grow, their aggressive distribution, and their commitment to provide environmental leadership.

• Howard Schultz has always put people before products, which is the bottom line in their principals.

• Schultz wants to promote the “Starbucks experience,” meaning each customer gets more than the finest cup of coffee; they get great people, comfortable meeting place, and first-rate music.

• “Understood that one amazing cup of coffee could make someone’s day, served in a place where people feel welcome, could elevate someone’s day. Maybe even change their life.”

CompetitionFrom the Ground Up

CompetitionMcDonald’s & Dunkin’ Donuts

•In-and-out service•Convenience•Global

•In-and-out service•Price•Extended drink menu•Global

CompetitionPeet’s & Tully’s

•Quality, specialty coffee•Global •Seattle based•Located near Starbucks

•Coffee experience•Specialty coffee•Multi-channel distribution like Starbucks

CompetitionTim Horton’s & Caribou

•Comfortable atmosphere

•Anti-Starbucks

•Quality coffee process

•Coffee experience•Specialty coffee•Multi-channel distribution like Starbucks

Industry TrendsSpecialty Coffee Drinks Market

•Quality and freshness

•Gourmet espresso coffee and specialty drinks are very popular

•New experimental ways to make drinks popular; New Flavors

•Connections made with others over coffee in person

•Coffee most popular at breakfast (most popular meal) and snack time

SWOT AnalysisA Cool Matrix

Strengths- Brand Awareness- Familiar- Consistence of coffee taste- Environment- Comfortable

Weaknesses- Cost- Burnt coffee taste - Viewed as corporate- Wide selection of food choices are

not promoted

Opportunities- Market Saturation- Make Your Mark volunteer program- Ethos water- Reading Programs

Threats- Globalization - Competitors are making specialty

espresso drinks

Investigation MethodsPrimary & Secondary Research

• Primary– Surveys– Interviews– Observations

• Secondary– Industry Research– Market Research– Trends

What does this mean for Starbucks?

Target AudienceStarbucks people & Places

Current typical user• Women 25-49• College educated• $50K+ HHI

Recommend • Extend target age to

include 18-25 year-old students.

What does this mean for Starbucks?› Establish coffee drinking habits at a younger age. › Women more willing to purchase luxury items › Want to emphasize comfort in Starbucks

How DA ThinksStrategy Mind Map

SOCIALTOOL - COFFEE

pleasant

season by drink

festive

comfortable

wi-fi

free stuff

surprise by delight

conversation

common language

business

homeworkluxury

entertainment

$$$

groups

drive-thru

24 hr Starbucks

convenienceclean

stayawhile

coffee

reliablequality

global

featuredartistsradio

iTunes

moviesmusic

food

Consumer InsightsWhat are Starbuckies really about?

• Lifestyle is dependent on convenience and quality

• Thrive on being social– Prefer familiar atmosphere

• Independent and confident in decision making

Promotional ProblemsThe Neck Tie Coffee Stain

• High Merchandising of Non-Coffee products– Barista Bears, Music, Record Company

• Corporate Image– Takes away from the Starbucks experience

Starbucks spends far less on advertising than other large retailers and consumer-products companies

-The Seattle Times, 2006

Strategic PositionThe Hammer & Nails

• Starbucks environment is a social tool – “Let’s go out for coffee” – People use coffee as an icebreaker

• Starbucks itself is a social tool inside the store & out– Giving gift cards after arguments – Coffee Mugs as stocking stuffers

• Creative Idea– Awkward situations made comfortable by Starbucks

Creative Brief

The Problem

How do we make Starbucks seem less “big” and facilitate

social interaction?

Corporate image is overshadowing characteristics that made Starbucks what it is today.

Brand Has: Pros & Cons

•Loyal Customers•Brand name recognition•High Brand competency•Familiarity

The Consumers

18-49 year-olds, primarily women who:

•seek quality and convenience•Are educated•Have $50K + HHI•Regard relationships very important•Enjoy small talk with friends & family

The Competition

There are four main factors that

distinguish coffee competitors

1.Price

2.Convenience

3.Quality

4.Experience

Independent coffee houses tend to be social and inclusive; tend to capture younger audience

The Attraction

•#1 coffee chain in the world•Involved in Fair Trade.•Support Mercy Corp, Save the Children and African Wildlife Foundation•Good coffee on the run•Accessible and consistent

The Action

•Starbucks coffee is a social tool; it’s there for the customers’ convenience•Overshadow corporate image

Nugget•Advertising to existing customers to influence new customers•Advertising should be funny and light-hearted; similar to conversation that could potentially take place at Starbucks.

Product Category

COFFEE:Quality, Experience, Convenience, brand

perception

Starbucks offers a quality experience that is convenient and consistent from store to store.

Insights18-49 year-olds are

seeking convenience and a quality experience

to fit their social lifestyles

What makes the Starbucks experience different?

Young women live an on-the-go lifestyle, however they also leave time to socialize.

Consumers resonate with the atmosphere and lifestyle of the Starbucks coffee houses.

What We Came Up WithOur Creative Ads

He may not know what to say but she has a secret weapon for conversation. After the movie she suggests Starbucks. The comfy chairs, casual setting, and variety of hot and cold drinks provide an atmosphere that makes any awkward situation comfortable.

Even if the boy is new, Starbucks will always be the same.

What We Came Up WithOur Creative Ads

Janet and Antonia had a screaming match last night over whose bowl was in the sink. Their friendship is in jeopardy and moving out was brought up. Over email they try to address their problems but it isn’t working. Janet suggests Starbucks as a neutral place to meet that both would feel comfortable. In no time they are giggling like school girls about the new boys in each others lives. The fear they walked in with has become a distant memory. Starbucks has saved another friendship over lattes.

Additional InsightsOur Strategy Keeps On Going

•Umbrellas

•Bookmarks

•Having more events at Starbucks

•What do you think of Starbucks?

•Having people send in artwork describing their experiences

This is NewBut Starbucks Isn’t

Thank you for the opportunity to present our insights and ideas.

We look forward to building a strong relationship with Starbucks in the future.