Apart from that, Starbucks also has a strong ethical value. This can be seen from their commitment to understand environmental issues and sharing them with their partners, as employees are called. They develop solutions and strive to sell environmental friendly products. (Starbucks, About Us, viewed on 1st March 2007 ).
Weaknesses
As Starbucks is keen in their product development, there might be a possibility that their product innovation may have a short sales cycle. With frequent introduction on new beverages, customers tend to be overloaded and may forget about the products.
Starbucks has 2,971 stores in America, yet only 252 in United Kingdom, 25 stores in Thailand, and 18 in Australia. This is as of 2001. This contradicts their mission statement to be a global coffee brand as they are not wide spread enough. (International Guild of Hospitality & Restaurant Managers, Starbucks, viewed on 1st March 2007 ).
Opportunity
As seen from the report done by Euromonitor International, Singaporeans are keen coffee drinkers, and there has been increasing demand for quality drinking coffee. (EuroMonitor International, Hot Drinks in Singapore, viewed on 1st March 2007 ). Therefore, this provides an opportunity for Starbucks to increase its target market.
Threats
Starbucks has seen a potential threat in the openings of other coffee joints by its competitors such as The Coffee Connoisseur, Coffee Beans and Tea Leafs, Spinelli's and Coffee Club.
As the nation is becoming more health conscious, the negative effects of coffee might lead to a decrease in sales. From the research done by Duke University Medical Centre, it shows that caffeine not only increases blood pressure and health rate, but also amplifies those effects at times when there is a higher level of stress. (PainStudy, The Toxic Effects of Coffee, viewed on 1st March 2007 ).
3.2 Starbucks’ Positioning
The competitive frame of Starbucks is to provide the best coffee experience to their customers. They consistently aim to provide high quality products in a comfortable environment to allow customers to unwind themselves, this is also known as the “Starbucks Experience”.
Using data from a short consumer survey of a 100 respondents, the above perceptual map shows the positioning of Starbucks in relation to their direct competitors. From map, it is evident that Starbucks is the current leader in terms of quality products which is one of the objectives set by the company.
4. STARBUCKS’ MARKETING PROBLEM
While Starbucks is popular among the beverage industry, it has problems such as:
- Even when it launches new products, many are unaware of them and only discover it when they patronise the outlet.
- Current Starbucks promotion constitutes of word-of-mouth communication and selected magazines only.
Our group’s concern is that consumers have a fixed mindset that Starbucks is only for patrons who would like to stop by a café and settle in for an hour or two to enjoy a cup of coffee. Sometimes when people notice that there is a long queue, they are also uninterested to buy Starbucks coffee anymore, thus leading them to switch to other alternatives.
5. PROMOTIONAL OBJECTIVES
To solve this problem, there is a need to change consumers’ perceptive view of Starbucks as a sit in trend by:
- Communicating the “Starbucks on the Go” experience by changing people’s perception of Starbucks’ image.
- Increase awareness by first publicizing Starbucks coffee as convenient take-away beverage simultaneously to solve long waiting issue
We also believe that in addition to the Starbucks Experience, consumers should be able to enjoy coffee as takeaways as well. This implementation would require targeting mainly people who have hectic working schedules. It is proven that majority of Starbucks’ consumers are working adults who buy their beverages before office hours. Therefore, our promotional program aims not to completely remove the “Starbucks Experience” but to incorporate “Starbucks on the Go” into it.
6. PROMOTIONAL PROGRAM
After several considerations, our team has decided to apply several advertising techniques into our promotional program.
- Brand Image Creative Style
With the intention of changing customers’ perception towards Starbucks, advertisement ideas featuring scenes from the streets and people within the age range of Starbucks’ target market have been considered. This idea would depict “Starbucks on the Go” significantly as the experience of drinking Starbucks coffee even when they are on the way to work.
As seen from our SWOT analysis, most of the Singaporeans’ lifestyle includes drinking coffee of a certain standard. We decided to explore the idea of creating a “Lifestyle” advertisement to increase the possibility of customers’ recalling their previous coffee drinking experience.
The hectic lifestyles of Singaporeans would mean that possibility of them being exposed to an advertisement and actually remembering it is low. By injecting a little humor into Starbucks’ advertisements, it would enhance recall by customers.
The promotional programs to be undertaken are summarized in the table below.
6.1 Radio Broadcast
Rationale for Radio Broadcasting
- Close to 90% of the population listens to the radio. Radio advertising offers the opportunity to deliver a simple yet powerful message to a targeted group of consumers that may be interested in the product or service.
- Each radio station is operated with specific market segments in mind, so despite there being many radio stations nationwide there are particular stations that target Starbucks’ specific market. Unlike other countries, package deals can be made with Mediacorp Radio which hosts multiple stations.
- Advertising works by repetition. The target audience may need to be exposed to a commercial three or four times before they will take action. To reach this “viable frequency”, radio advertising is often more cost effective than other media.
Proposed Broadcast Dates and Radio Station
The actual campaign broadcast will start on 28th April while promotional broadcast will commence one week before. These advertisements would be broadcast on 938 live, Perfect 10 and Class 95, radio stations which are tuned in by Starbucks’ target market.
Radio Script for ongoing promotion
- Rushing to work in the morning? Enjoy your coffee on the go! Drop by any Starbucks outlets for a dollar off your favourite Starbucks coffee from 8am -10am. Enjoy the new express queue for takeaway orders. Get your Starbucks on the go today!
- Starbucks on the go! Why wait when you can take your coffee with you. Join the express queue at any Starbucks Outlet now.
- Let Starbucks brighten your day with 1 dollar off every takeaway order of Starbucks coffee from 8am-10am. Don’t wait join the express queue
Radio script for event (one week before and every day till the event)
- Have a free cup on us! Come on down to any Starbucks outlet in the CBD area such as Raffles Place or Tanjong Pagar on the 28th of April for a free cup of your favourite Starbucks coffee on us.
- Come on down to your nearest Starbucks before or after work on Saturday to enjoy your free cup of coffee. Indulge your senses – drink Starbucks!
6.2 Newspaper Advertisements
Rationale for Newspaper Advertisements
- Newspaper advertisements has the ability to reach a massive amount of readers and catching them in the right frame of mind to get the message of the advertisement.
- The scheduled newspaper delivery is timely and allows Starbucks to choose the exact date in which they want to put up their advertisements.
- Newspaper advertisements are flexible in nature and it can be a hybrid of graphics and text and they can also be printed in colour.
Proposed Newspapers
- The Straits Times is the highest selling newspaper in Singapore with the daily circulation of approximately 400,000. It is also the main source for general news for the english speaking population of Singapore.
- Today is a free tabloid circulated from Monday to Friday with an approximate circulation of 550,000, with more than half of its readers being professionals, managers and business people. This paper is distributed at MRT stations, bus interchanges and other selected public areas.
Today also has a weekend edition with an estimate circulation of around 150,000 readers.
The Starbucks Express Queue
-Objective
The purpose of this simple but creative newspaper advertisement is to inform the potential customers and target audience of Starbucks about the introduction of the Starbucks Express queue aimed to reduce waiting time during peak hours for takeaway customers.
-Advertisement Technique
This advertisement uses a combination of simple graphics and text on a white background to express a crisp and clear message.
The graphic shows two rows of takeaway Starbucks cups in queue to relate readers to the introduction of Starbucks Express Queue for takeaway products. It is then followed up by some text which simply explains the benefit and availablity of the new express queue. The advertising technique applied here, brand image creative style, aims to connect the experience of queueing up for a Starbucks’ coffee takeaway with target audience.
Starbucks on the Go Launch
- Objective
The purpose of this newspaper advertisement is to inform customers of the publicity event that is taking place to kick off the “Starbucks on the Go” campaign.
- Advertisement Technique
The main theme of this poster is the emphasis on Starbucks takeaway cups with the use of colourful text to highlight the important details of the PR event.
This advertisement is both attention grabbing as well as informational. The advertisement includes basic information like time and venue of the event. It is also headed by the main message of the campaign, which is “Starbucks on the Go” to relay a consistent message to the target audience.
The above two newspaper advertisements are to be placed in the Life section of The Straits Times which focuses on lifestyle and entertainment news. It is also to be placed on Today (Weekdays), which the target audience can read on the way to work and drop by the Starbucks outlet nearest to their office.
6.3 Magazine Advertisements
Rationale for Magazine Advertisements
- Magazine advertising reaches a large audience. It gives a high possibility for Starbucks to segment and reach their desired target audience quantity
- Because this form of advertising is selective, it decreases the quantity of non-targeted advertising (e.g. young students, elders). Starbucks’ target customers are the working adults
- According to a study conducted by E.I. Dupont de Nemours and Co., Inc., print ads do not "wear out" as TV and radio ads do. In fact, the study's findings suggest that print ads never wear out
- It has a high reproduction quality. Primary audiences can pass the magazine along to secondary readers, so that their reach builds over long periods of time, making them a long-term investment
Proposed Magazines
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8 DAYS (Singapore's best-selling, award-winning English entertainment weekly)
8 days is recommended as it is the best selling magazine locally for its mass target audience; the English speaking public. Since working adults make up the majority of Starbucks’ target market, 8 days is the best channel to use as it is read by adults weekly.
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WEEKLY (award-winning Chinese-entertainment weekly that's Singapore's No. 1 newsstand title)
The next best channel is to reach out to the Chinese speaking community which makes up the largest amount of people next to the English speaking populace. With various drama series broadcasted on TV, people are eager to buy I-weekly to catch up with the latest news/ gossips about the showbiz world.
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HER WORLD/ COSMOPOLITAN/ MEN’S HEALTH/ CLEO (a popular fashion and lifestyle magazine for women and men specifically)
The third focus is magazines which are exclusive, targeting adults. Some examples which Starbucks can choose from are Her World, Cosmopolitan and Cleo, all of which are launched monthly. These 3 magazines are especially read by working women, and contain compiled information of women’s lifestyle. It would be best for Starbucks ad to be placed in these magazines to facilitate promoting its coffee as a lifestyle product. The same applies for the Men’s Health magazine.
Compared to 8 Days or I-weekly, these magazines have a longer lifespan (1 month).
By using magazines, Starbucks helps to relate intangibles such as believability. These can be done through the use of high resolution image visuals.
The Starbucks Experience – Only The Finest
- Objective
- To notify or bring to audiences’ recall that Starbucks uses only the finest quality of coffee beans
- To differentiate itself as a quality coffee, not just a “kopi”
- Advertising Technique
The advertisement on the left has a washed out background of coffee beans with the picture of it processed into coffee in the middle. The sentence states “only the finest”. The ad on the right further elaborates the “Starbucks Experience” to follow up on what is meant by “only the finest”, with text on a clear white and light green background for easy reading.
This advertising technique, resonance creative style, commonly known as ‘lifestyle’, aims to appeal to the public with its simple yet direct message to bring them to remembrance or cultivate the “Starbucks Experience” as quality. It emphasizes that the “Starbucks Experience” is more than just a cup of coffee because it uses only the highest quality coffee beans, freshly brewed with a different aroma and taste; hence it justifies the cost and is worth paying for.
These advertisements will be printed together with the launch of the magazines, weekly or monthly.
6.4 Hanging Mobiles in Buses / MRTs
Rationale for Advertisement in Public Transport
- Common mean of transport
Public transport is the most common mean of transport in Singapore. With its reasonable fares, majority of the working population travel to work each morning using public transport. This is evident from the morning crowd in trains and buses every weekday.
- Capture attention
These hanging mobiles are placed at almost eye-level height, thus it is almost hard not to notice them hanging on the handle bars of buses and trains.
Proposed Routes
- Hanging mobiles will be placed on buses with traveling routes to the Central Business District (CBD). Some of these buses traveling along the CBD routes include number 7, 17 and 197.
- The chosen routes for hanging mobiles to be placed on MRT are the two main lines North South and East West. Both these two routes have stops at City Hall and Raffles City.
The Starbucks Express Queue
-Objective
The purpose of this hanging mobile is to inform the working crowd who take the public transport each morning about the introduction of the Express queue.
-Advertisement Technique
The background of this hanging mobile would be white to create a stark contrast against the black wordings.
It will feature the “$1 off” promotion as well as to update the public on Starbucks Express Queue.
The hanging mobiles that are placed in the bus and train aim to meet the marketing objective of increasing sales of take-away beverages by 30%.
6.5 Outdoor Posters
Rationale for Posters
-
Usage of posters is effective as this form of advertising is experienced twenty four hours a day, seven days a week (MyAdBase, The Advantages of Outdoor Advertising, viewed 12th March 2006 ).
- The posters are huge enough to be able to capture the attention of target audience walking by.
Proposed Poster Destinations
The Starbucks posters will be placed in 2 areas.
- MRT Stations (Raffles Place and City Hall)
The placing of posters in these stations serves the same purpose as the hanging mobiles.
- Surrounding area of Starbucks outlets
Posters will be placed in the surrounding area of the outlet like Raffles City and office buildings.
Starbucks on the Go
- Objective
This promotional strategy aims to meet the marketing objective of increasing sales of take-away beverages by 30%.
- Advertisement Technique
This ad portrays the usage of emotional and brand image creative style. The heads of the people in the posters are substituted with Starbucks takeaway cup, creating a hilarious effect, thereby lightening the mood of the busy crowd in the morning.
Having humor in the poster is an effective method of capturing attention of the busy crowds, and enhancing liking for the Starbucks coffee. With the background set out on the streets, this advertisement further emphasizes “Starbucks on the Go” thus enhancing the working crowd to grab a coffee.
The offer on the poster that says “a $1 off for those who buy takeaway coffees from 8am to 9am” further increases the likelihood of consumers purchasing Starbucks takeaway coffee.
Other Miscellaneous Posters
* A4-sized copies of these posters can be seen in the Appendix.
6.6 Emails and Internet Advertisement
Rationale for Emails and Internet Advertisement
- The use of emails and internet advertisement to promote “Starbucks on the Go” is cost effective as Starbucks already has the infrastructure to support these advertisements.
- Direct emails can grab the attention of customers and allow them to read up on the event and promotions at the leisure of their own time.
- Customers can get frequent updates on Starbucks’ promotions and events via the web.
Emails
Emails can be sent to the current Starbucks card members to inform them on the “Starbucks on the Go” campaign and give them the relevant information on the sales promotion and publicity event in the coming months. This will also make them feel appreciated as customers.
Web Advertisements
Starbucks can also include the details of the “Starbucks on the Go” campaign on the promotional section (What’s Brewing?) of their webpage at to allow people to find out more information.
6.7 $1 Off Promotion
Rationale for Sales Promotion
- Sales promotion can be used as a form of incentive to induce customers into making a purchase.
- It can also create an increase in awareness for Starbucks
Proposed Locations and Time
This sales promotion will take place from Monday to Friday at Starbucks outlet located in Tanjong Pagar, Raffles Place and City Hall. However, this sales promotion is only valid from 8am to 9am and for takeaway coffee only.
Advertising Technique
This sales promotion is specially targeted at the working crowd who would often grab breakfast on the go. The timeframe of this promotion each day is set in such a way that Starbucks’ target audience can get their coffee at Starbucks just before they head to work. Therefore, it would provide an incentive for customers to get their coffee at Starbucks.
6.8 Launch of ‘Starbucks on the Go’ PR Event
Rationale for PR Event
- This special event would stimulate positive interest in Starbucks.
- Launch of this campaign would allow Starbucks to increase awareness of their brand and upcoming promotions as well.
Advertisement Technique
This event is to kickoff the “Starbucks on the Go” campaign and it is to be held on April 28th, the commencement day of the campaign. From 10am to 11am, customers who drop by the event can get a free takeaway cup of Starbucks coffee.
The event will also introduce the Starbucks Express Queue, an express queue that is only for takeaway orders. On top of that, customers who show up to the event will learn of the $1 discount they will get to enjoy when they make a takeaway purchase of any Starbucks beverage, every week day, from 8am to 9am at selected Starbucks stores (CBD areas such as Tanjong Pagar, Raffles Place and City Hall).
Posters, radio spots, and advertisements in newspapers will help publicize this event for 2 weeks before the commencement of the “Starbucks on the Go” campaign.
7. PROMOTIONAL SCHEDULE
Pulsing Advertising Schedule
Advertisements placed on radio spots and in newspapers will run on alternative days throughout the 3rd and 4th weeks of April to publicize, and create awareness of the Starbucks PR Event that is to be held on April 28th. The launch of this event will coincide with the commencement of the “Starbucks on the Go” campaign that kicks off on the same day.
“Starbucks on the Go” (Express Queue) advertisements will be printed in newspapers and shown for the entire 5 months, but on alternative days (e.g. Monday, Wednesday, Friday) to save costs, and at the same time, creating awareness of such a queue and helping customers learn of the new and quicker way of ordering their beverages through the express queue.
Flighting Advertising Schedule
“The Starbucks Experience” will be advertised in magazines I-weekly and 8 Days and monthly magazines Her World and Cleo for a period of 5 months throughout the campaign, starting from May. However, for magazines I-Weekly and 8 Days, advertisements will run consistently for the first two months. This is to go hand-in-hand with the ongoing promotions such as such as the $1 off deal and the introduction of the Starbucks Express Queue. Thereafter, the advertisements will run on alternative weeks in I-Weekly and 8 Days to stimulate recall.
Continuous Advertising Schedule
Posters and hangers on buses to promote the “Starbucks on the Go” $1 off deal will be advertised for 2 months, every day, from May to June.
A summarized timeline is shown below.
8. PROMOTIONAL BUDGET
9. EVALUATION AND CONTROL
A day-after recall testing would be conducted after the advertisements have been published and exposed to the market. A sample of ten customers would be surveyed the day after each advertisement is displayed out. Questions asked would include if customers recall what is mentioned in the ad copy, what objects or color scheme is being used in the advertisement.
Apart from that, Starbucks can also evaluate success of the sales promotions through the turnout of customers during the promotion period, in this case, 8am to 9am. A large crowd would mean that advertising strategy employed is a success.
With these information, Starbucks can decide if they would reduce their promotional tools or switch to a different strategy should it not show desired results.
