EVENING MENU

The Challenge

OVERVIEWStarbucks provides:- personal experience- quality taste- the ‘third place’ feel

Having established brand value and a loyal customer base, Starbucks needs to ensure sustainability amongst competitors by adding new lines.

Starbucks Evening MenuIntroduced in 2010Select locations only (urban metropolitan areas)After 4 PM

1. Compete against established local businesses catering to our target market.

- examples: Tapas Bars & Wine Bars. 2. Change consumer mindset of Starbucks product offering.

“Starbucks is more than just coffee and tea”

THE CHALLENGE

MEDIA OBJECTIVE

• Increase market share in the ‘evening drinking & entertainment’ market

• Attain moderate reach, 70-75% of market audience at moderate frequency via online media marketing strategies

• Encourage target audience to try new products via creative venues: ‘virtual coupons’, hashtag contests, coupons given @ store during day-time purchases, Instagram photo contests Facebook Likes etc

MARKETING STRATEGY

• Increase awareness of new product line(s) across the board

• To increase evening consumer traffic into NYC Starbucks locations

• Make target audience aware of new services and offer incentives to try them over the competition

• Create effective creative and strategic ads via social media to achieve marketing goals

SWOT

STRENGTHS•Strong Brand- Global & Locally (36.7% of US Market Share)•Strong Positioning within Industry•High Quality Products•Multiple Locations•Effective use of Technology/ Mobile Apps•Customer Base Loyalty

WEAKNESS• High Prices• High Saturation within the US market• Target Customer may prefer more “high class” location for after work meetings/happy hours•Low Switching Cost among Consumers

OPPORTUNITY•Expansion of product offering •Brand Extensions•Develop a Starbucks brand splitzeror wine- the long term view

THREATS• Stiff competition from tapas bars, cheese & wine bars & local happy hours around city.• Increasing price of input materials•Weak economy, low disposable income•Regulations in regards to alcohol sales can affect business•Competitors can copy menu items quickly

TOP NYC COMPETITORS

• Local Tapas Bars

• Wine & Cheese

• Happy Hour at Local Bars

STARBUCKS AD-EXPENDITURES

Fiscal year 2011-2013 Annual Report

Total Marketing Expenses*

Ad-Specific Expense*

2013: $306.8 $205.82012: $277.9 $182.42011: $244 $141.42010: $198.7 $176.2*In Millions. Source: Starbucks Annual Reports

AD-EXPENDITURE ALCOHOLIC DRINKS

Growth in adspend by global region, Q4 2013January-December 2013, year-on-year % changeSource: Nielsen Global AdView Pulse, Q4 2013

Growth in alcoholic drink adspend by channel, Q4 2013January-December 2013, year-on-year % changeSource: Nielsen Global AdView Pulse, Q4 2013

CONSUMER PROFILE

• Age: 30-49 (50+ prefer more expensive bottled wine)

• Younger people prefer less expensive beer• Income:40k+ • Professions: Finance , TechnologyBanking etc

Yes!! Starbucks has wine now!!

THE CREATIVE

“OCCUPY WALL STREET”• One week event: Only the Starbucks

in the Financial District will serve evening menu in a bar ambience.

AFTER WORK HANGOUTS

“Starbucks” “Winery”

THE CREATIVE“Familiar faces, New tastes”• One month event: People who buy coffee before 2pm can get a 50% off coupon for a drink at the night menu.• ‘Everyday happy hour with your Starbucks coffee at the evening menu hours. •Raffle trip to an Italian or Parisian vineyard.

#StarbucksEveningsNYC

THE CREATIVE- TRIP ABROAD

• Raffle trip to Italy or Paris vineyard contingent on a customer’s number of visits to the store during day/evening and photos via Instagram enjoying Starbucks evening menu. Contest to be concentrated in NYC area.

MEDIA VEHICLESPrint Newspapers (National and/or Local) Television Network

Out of home/Place-based media Television Cable

Online display advertising Television Syndication

Online video Print Magazines

Paid search Television Network

Social media (Social networks, blogs, twitter) Radio (National and/or Local)

Mobile Cinema

Gaming/Advergaming

Direct mail

Emerging/new media

Others?

MEDIA PLAN

PRINT

OUT - OF - HOME• In Store • Cabs• Subway and PATH

• Major transit points-billboards• Sponsoring business events

with samplers• Elevators at small to medium

offices

ONLINE DISPLAY

VIDEO

PAID SEARCH

Evening menu Starbucks beer selection

Tapas plates Wall Street

Starbucks evenings Wine pairing Wine tasting

Starbucks evening New York

Meeting places around Wall Street

Summer drinks

Evening menu price Starbucks wine selection

Tapas plates Wall Street

Evening menu locations

Best wines in financial district

Wine tasting

Alcohol at Starbucks Savory small plates After work meeting

Happy hour financial district

Corporate evenings Wine and cheese

Shared plates Small plates Wine and plates

SOCIAL MEDIA

Send a gift

Tweet –a --wine

MOBILE

EMAIL MARKETING

• Email marketing –menu of the week• Coupons• Wine tasting• Happy hours• Events & Happenings• Free Goodies and giveaways• Reward points• Survey completion incentives

BIG IDEA

• Bringing to US the Italian culture of regularizing wine as a light evening drink, facilitating conversation and in no way promoting habitual alcoholism

• Wine tasting events can be conducted as promotional activities with wine connoisseurs brought in

• Start marketing campaign with a heavy focus on areas with executives and professional workers before rolling out to all locations

• In-store promotion will have maximum weightage, because of the store location density in New York City.

THANK YOU