Class project. Fall 2008.

2. Table of Contents Section Page Trove 3 The Market 9 The Competition 13 Starbucks 20 Research 23 Marketing Solutions 33 Fees 53 Presentation Endnotes 56 Business Paper 57

3. MISSION CORE BELIEFS CREATIVE PHILOSOPHY INDUSTRY EXPERIENCE Trove

4. Mission We dig deep. We strive to find the gem in your brand.

6. Creative Philosophy We help brands become diamonds in the faceless clutter of today’s society. Just as a diamond starts out as coal, the process of making a brand valuable is our ultimate goal.

7. Industry Experience

8. The Team Mariam Shahab Art Director Ideal Drink: Tall caramel frappuccino, no whipped cream, extra syrup Taylor Foley Media Director Ideal Drink: Grande non-fat mocha with whipped cream Shannon Reed Interactive Director Ideal Drink: Tall mint hot chocolate with whipped cream and chocolate syrup Brittany Nugent Account Manager Ideal Drink: Venti soy chai Louisa Stelle Account Planner Ideal Drink: Tall non-fat cappuccino

9. COFFEE INDUSTRY OVERVIEW COFFEE HOUSES AND DONUT SHOPS THE CONSUMERS The Market

10. Coffee Industry Overview Which coffeehouse or donut shop do you visit most frequently? All data collected from online surveys and in store intercepts. 43.3% 76.7% 43.3%

13. DUNKIN DONUTS TIM HORTON’S KRISPY KREME CARIBOU COFFEE PEET’S COFFEE MCDONALD'S MCCAFE The Competition

14. Dunkin Donuts Unique Selling Proposition: Quality coffee for Americans on the run Number of Stores: 5,769 Gross Sales: $ 5.3 billion Historical Fact: World’s largest coffee and donut shop, serving more than 3 million coffees a day. Advertising Sample: DunkinbeatsStarbucks.com The average Joe Insert company logo here 13

15. Tim Hortons Unique Selling Proposition: “Always fresh” coffee, baked goods and home-style breakfasts and lunches in a quick-service restaurant. Number of Stores: 424 Revenue: $ 1.9 billion Historical Fact: Started in Canada by a famous hockey player in 1964 and merged in 1995 with Wendy’s International. Advertising Sample: Canadian Craig 14

16. Krispy Kreme Unique Selling Proposition: Krispy Kreme makes all of its donuts in its store and they are served hot right off the line. Number of Stores: 420 Revenue: $ 461.2 million Historical Fact: Founded in 1937 in Winston-Salem, N.C. Advertising Sample: Insert company logo here Joe the Plumber 15

17. Caribou Coffee Unique Selling Proposition : Caribou Coffee uses the highest quality coffee beans no matter what they cost. Number of Stores: 464 Gross Sales: $ 256.8 million Historical Fact: In 1990 the founders journeyed to the top of Sable Mountain. The breathtaking views became the entrepreneurial vision for Caribou Coffee. Advertising Sample: The Adventure Seeker 16 17 18

18. Peet’s Coffee Unique Selling Proposition: A coffee style emphasizing superior quality beans and a darker roasting style that produces coffee with richness and complexity. Number of Stores: 165 Gross Sales: $ 184 Million Historical Fact: Founded in 1966 in Berkley, CA Advertising Sample: Peetniks 19

19. McCafé Unique Selling Proposition: All of the taste and quality of a coffeehouse with the convenience and price of McDonald’s. Number of Stores: 3,800 Gross Sales: TBA Historical Fact: Launched in 2008, their espresso beans come from the same place as Starbucks. Advertising Sample: “Unsnobby coffee” microsite and television campaign The Java Junky 20

20. CURRENT SITUATION: WHO YOU ARE MARKETING OBJECTIVES: WHERE YOU WANT TO BE Starbucks

23. METHODOLOGY CONSUMER INSIGHT BRAND ESSENCE Research

25. Consumer Insight Global Reliable Chain company Corporation Expensive Key Insight: Currently, when a consumer thinks about Starbucks they only think about coffee and not the experience. All data collected from online surveys and in store intercepts. What comes to mind when we say “Starbucks?” My paycheck Dark Rich Coffee Morning routine Bad service Caffeine Money Yuppie Comfy sofas High price Caffeine rush Nice atmosphere Not healthy Addiction

26. Consumer Insight Describe a typical Starbucks customer “ A female Starbucks customer wears a beret, scarf, Ugg boots, skinny jeans, and has an expensive pocketbook. A male Starbucks customer wears loafers, tight sweater to show he works out, a fancy watch, and uses a debit card because he never carries cash.” “ I think there are three main types. There is the person who works really hard all the time and needs a caffeine boost, you know the one who takes their coffee back when its not hot enough. Then there's the student who drinks one coffee and stays to study for hours and the indie moody person who likes poetry and the smell of coffee.” “ A young, urban, wannabe writer, who gets a large coffee and has time to sit in the big comfy chairs at Starbucks and write on his Mac laptop.” “ A professional in his mid 20’s on the way to work in the morning.” All data collected from online surveys and in store intercepts. Key Insight: There is a wide variety of types of people who visit Starbucks with varying reasons for visiting.

27. Consumer Insight Why do you drink coffee or coffee-related drinks? “ I drink coffee sometimes to socialize with my friends or husband or just to treat myself and relax after a long day. ” “ As a nice little pick me up.” “ Its a necessity on a work morning.” “ To escape from my hectic life and socialize in a relaxing environment.” “ To keep warm.” “ One to get through the morning and one to get through the night!” “ Because I'm addicted to caffeine!” Key Insight: Coffee is a vital part to a person’s routine. All data collected from online surveys and in store intercepts.

28. Consumer Insight How was your last Starbucks experience? “ Starbucks is always extremely crowded. I went there because a friend suggested we meet there. I went to Dunkin Donuts afterwards and got my coffee!” “ It was good but there were too many people around for me to relax. But still, somehow the atmosphere felt intellectual.” “ It’s my third home! I love the coziness.” “ Nice and quite.” All data collected from online surveys and in store intercepts. Key Insight: Every Starbucks store and experience is not the same.

29. Consumer Insight What do you consider coffee to be? All data collected from online surveys and in store intercepts. 33.3% 38.3% 36.7% 41.7% 6.7% 10% Key Insight: Respondents do not consider coffee to be a healthy option.

30. Consumer Insight Key Insight: People enjoy the experience of drinking coffee in a coffee shop. Where do you consume Coffee and Coffee-Related drinks? All data collected from online surveys and in store intercepts. 65.0% 31.7% 15% 58.3% 36.7% 38.3%

31. Consumer Insight Key Insight: Starbucks offers a lot of individualization which helps people create drinks to suit all taste palates. What is most important to you when visiting a coffeehouse or donut shop? All data collected from online surveys and in store intercepts. 26.7 % 40% 16.7% 10% 73.3% 35% 8.3%

33. TARGET AUDIENCE POSITIONING STATEMENT CREATIVE STRATEGY MARKETING CONCEPTS INTEGRATED MARKETING CAMPAIGN MEDIA PLAN MARKETING CALENDAR Marketing Solutions

35. Positioning Statement To cultured millennials, Starbucks is a premium coffee house that adds an intimate and valuable experience to a consumer’s lifestyle by integrating caffeine with a comfortable environment.

36. Creative Strategy Key insight: Cultured millennials actually value the coffee shop experience as much as they value the quality of coffee. What the consumer thinks now: I go to Starbucks and pay four dollars for my coffee, but sometimes I feel guilty about spending so much money on a cold corporation. I always feel comfortable at the coffee counter, but I wish Starbucks paid more attention to my needs as a caffeine lover. What we want the consumer to think: Starbucks is worth every penny because it offers the perfect coffee shop experience. Every time I buy a coffee, I feel like an important individual whom Starbucks cares about. The single most important thing we want to say to them: Starbucks offers more than just a cup of coffee. Tone: Friendly, warm, inviting, conversational, informal

37. Mood Board

42. New Tagline “ A bean is just the beginning”

52. Marketing Calendar JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER Wi-Fi Site Newspaper Advertisements Name Tags Nutritional Brochure Menu Extension Tea Rings Free Wi-Fi Sign Music Monitor Drip Coffee Sign Mug Sign Charity Poster Billboard Bus Stop/Subway Advertisements Trail of Beans Outdoor Advertisement Television Spots Key Online Newspaper In Store Outdoor

53. BUDGET OUR PROPOSED FEE Fees