Media Plan
Pace University Spring 2012 MAR 345
Table of Contents O
Competitive Analysis O O O O O
O O O O
O
Situation Analysis O O O O
O
O
Background Company Highlights Brand Image Target Market Previous Ad Campaigns Starbucks Income & Sales Starbucks SWOT Analysis Competition Media Expenditures
History of the Market Consumer Profile Distribution Channels Product Advertising & Media Analysis
Creative O O
O O O O O
Creative Rationale Product Seasonality Overall Creative Message Out of Home & Internet Ad’s Print Ad’s – Newspapers & Magazines Television & Internet Commercials Product Placement
3
O
4 5 6 7 8 9 10 11 12
O O O O O
O O O O O
22
O
23 30 33 37 42
O O O O
O O
52 53 54 55 56 57 60 61
Media Plan
O
O
Media Objective Media Strategy Target Analysis & Recommendations Media Habits of Target Audience Budget Product Placement Television Magazine Out of Home Internet Newspaper Radio Flowchart Decision Dates & Cancellation Flexibility Overall Expected Reach & Frequency Alternative Budgets Responses to Earlier Client Questions Anything Else That May be an Issue
Conclusion
62 63 64 65 66 67 68 69 71 74 79 82 84 85 86 87 88 90 91
92
2
Competitive Analysis
3
Background
Source: http://adage.com/article/news/starbucks-hits-3-limited-ad-spending/227316/
4
Company Highlights O
O O
O O O
Opened in 1971 in Seattle Washington 1980’s Howard Schultz (CEO) first joined the scene. “Starbucks experience”- revolutionary coffee experience made up of high-quality coffee, a warm and inviting environment that created an escape from the chaos of life, and the dedication to the benefits and wellness of its employees, customers, traders and surrounding community. In 2008 company dealt with major challenges of overexpansion 2011 had over 17,000 stores worldwide in over 50 countries Products: O Rich-brewed coffees O Italian-style espresso beverages O Cold blended beverages O Premium teas O Beverage-related accessories O Sandwiches O Desserts O Fruit
Source: http://me.starbucks.com/en-US/_About+Starbucks/History+of+Starbucks.htm http://www.starbucks.com/about-us/company-information
5
Brand Image O
Mission O
O
Our Coffee O
O
All about quality. Passionate about ethically sourcing & improving the lives of people who grow the coffee.
Our Stores O
O
To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.
Sense of belonging, our stores become a haven, a break from the worries outside, a place where you can meet with friends. It’s about enjoyment at the speed of life – sometimes slow and savored, sometimes faster.
Our Neighborhood O
We take our responsibility to be good neighbors seriously. Want to be a force for positive action.
Source: http://www.starbucks.com/about-us/company-information/mission-statement
6
Target Market O
Adult - Male & Female
O
Age 18 – 49
O
College Educated
O
Business Professionals
O
Higher luxury-consumption levels
O
Upper Middle Class
O
Urban Areas
Source: Simmons OneView
7
Previous Ad Campaigns
Source: http://blogs.starbucks.com/blogs/customer/archive/2009/04/30/sneak-peek-at-new-ad-campaign.aspx
8
Starbucks Income & Sales
Source: Starbucks 2011 annual report http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
9
Starbucks SWOT Analysis Strengths:
Weaknesses:
• Howard Shultz is CEO again he saved Starbucks from the overexpansion and rapid decline in 2008 • Atmosphere for work/study/relaxing people stay longer, buy more, & come back • High quality coffee • Strong customer-employee relationships • Wide variety of over 30 blends of coffee • Strong brand image • Strong franchise - more than 6500 stores
• High price of coffee in comparison to competitors • Too focused on the American market • Refusal to guarantee goods sold in the company’s stores are free of genetically-modified ingredients • Economic downturn caused the shutdown of many stores • Price instability - possible loss of vendors and farmer partners
Opportunities:
Threats:
• Strong financial backing for new ventures • Expansion in the form of food • Possibility of offering more breakfast and lunch items which would draw in more traffic • Large un-penetrated market in South Africa, North Africa, The Middle East, South and Central America, Parts of Asia, Parts of Europe
• • • •
Source: Starbucks 2011 annual report http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual http://www.sosemarketing.com/2011/09/22/starbucks-swot-analysis/
Product price increase of 1% in 2012 Unfavorable general economic conditions Possible cost increase (Milk, Coffee beans) Starbucks’ dedication to employee and partner benefits (fair trade) = economic burden
10
Source: Starbucks 2010 Annual Report
11
Starbucks - Media Expenditures 11.6%
14.3%
Magazines Newspaper
4.5%
National Newspaper Outdoor
25.7%
Network TV Spot TV Syndication
29.4%
Cable TV 0.3% 0.4%
($000)
Magazines Newspaper
Starbucks 5,093.0
1,599.8
Source: 2010 Ad$ Summary January – December
National Spot Radio
8.9% 4.8%
National Newspaper
Outdoor
10,478.1
1,699.0
Network TV Spot TV 3,184.7
156.8
Syndication Cable TV 89.2
9,162.8
National Spot Radio 4,141.3
12
Dunkin’ Donuts - Media Expenditures 4.2%
1.4% 1.2%
0.2%
9.2%
8.4%
Magazines Newspaper National Newspaper
19.6%
Outdoor Network TV Spot TV Cable TV
National Spot Radio
55.8%
($000) Dunkin’ Donuts
Magazines
Newspaper
1,360.2
Source: 2010 Ad$ Summary January – December
1,201.6
National Newspaper 231.0
Outdoor 9,190.7
Network TV 19,595.6
Spot TV 55,663.5
Cable TV 8,420.8
National Spot Radio 4,170.6
13
Tim Hortons - Media Expenditures 0.6%
0.6%
4.2%
11.2% Newspaper Outdoor
Network TV Spot TV National Spot Radio
83.5%
($000) Tim Hortons
Source: 2010 Ad$ Summary January – December
Newspaper 30.9
Outdoor 221.6
Network TV 591.2
Spot TV 4418.3
National Spot Radio 29.2
14
Caribou Coffee - Media Expenditures
26.7% Magazines
46.8%
National Newspaper
Outdoor
5.3%
National Spot Radio
21.3%
($000)
Magazines
Caribou Coffee
Source: 2010 Ad$ Summary January – December
417.2
National Newspaper 189.4
Outdoor
National Spot Radio 47
237.5
Magazines 417.2
15
McDonald’s - Media Expenditures* 3.8% 0.8% 0.2%
Magazines
34.0%
Sunday Magazines Newspaper
35.9%
Network TV Spot TV Syndication Cable TV
3.3%
($000) McDonald’s
Magazines
11,279.4
21.9%
Sunday Magazines
2,401.1
Newspaper
488.3
Network TV
Spot TV
105,522.2
64,287.0
Syndication
9,840.8
Cable TV
100,010.6
*Taking into account only media expenditures concerning McCafe, Breakfast and Tea.
Source: 2010 Ad$ Summary January – December
16
Seattle Best Coffee - Media Expenditures 0.1%
9.6%
Magazines Sunday Magazines
Newspaper
90.3%
($000) Seattle’s Best
Source: 2010 Ad$ Summary January – December
Magazines 4,156.6
Sunday Magazines 443.8
Newspaper 2.9
17
Media Expenditures Comparison in Dollars Competitors
11 Media Sunday Magazines Totals Magazines
Starbucks
35,604.7
5,093.0
0.0
1,599.8
10,478.1
Dunkin Brands Inc.
99,834.1
1,360.2
0.0
1,201.6
Tim Horton's
5291.2
0
0
Caribou Coffee
891.1
417.2
McDonalds
293,829.4 11,279.4
Seattle's Best: 4,603.2 Coffee
4,156.6
National Outdoor Newspaper
Network National Radio Spot Radio
Network TV
Spot TV
Syndication
Cable TV
1,699.0
3,184.7
156.8
89.2
9,162.8
0.0
4,141.3
231.0
9,190.7
19,595.6
55,663.5
0.0
8,420.8
0.0
4,170.6
30.9
0
221.6
591.2
4418.3
0
0
0
29.2
0
0
189.4
47
0
0
0
0
0
237.5
2,401.1
488.3
0.0
0.0
105,522.2
64,287.0
9,840.8
100,010.6
0.0
0.0
443.8
2.9
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Source: 2010 Ad$ Summary January – December
Newspaper
18
Media Expenditures Comparison in Dollars 120,000
100,000
($000)
80,000
60,000
40,000
20,000
0
Starbucks
Dunkin Brands Inc.
Source: 2010 Ad$ Summary January – December
Tim Horton's
Caribou Coffee
McDonalds
Seattle's Best: Coffee
19
Media Expenditures Comparison in Percent
Competitors
Magazines
Sunday National Network Network National Newspaper Outdoor Spot TV Syndication Cable TV Magazines Newspaper TV Radio Spot Radio
Starbucks
14.30%
0.00%
4.49%
29.43%
4.77%
8.94%
0.44%
0.25%
25.73%
0.00%
11.63%
Dunkin Brands Inc.
1.36%
0.00%
1.20%
0.23%
9.21%
19.63% 55.76%
0.00%
8.43%
0.00%
4.18%
Tim Horton's
0.00%
0.00%
0.58%
0.00%
4.19%
11.17% 83.50%
0.00%
0.00%
0.00%
0.55%
Caribou Coffee
46.82%
0.00%
0.00%
21.25%
5.27%
0.00%
0.00%
0.00%
0.00%
0.00%
26.65%
McDonalds
3.84%
0.82%
0.17%
0.00%
0.00%
35.91% 21.88%
3.35%
34.04%
0.00%
0.00%
Seattle's Best: Coffee
90.30%
9.64%
0.06%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Source: 2010 Ad$ Summary January – December
0.00%
20
Media Expenditures Comparison in Percent 100.00% 90.00% 80.00%
70.00% 60.00%
50.00% 40.00% 30.00%
20.00% 10.00%
0.00%
Starbucks
Dunkin Brands Inc.
Source: 2010 Ad$ Summary January – December
Tim Horton's
Caribou Coffee
McDonalds
Seattle's Best: Coffee
21
Situation Analysis
22
History of the Market
23
U.S. Revenue Comparison 9,000,000
8,000,000 7,000,000
(000s)
6,000,000 5,000,000 4,000,000 3,000,000 2,000,000
1,000,000 0
U.S. Revenue (in thousands)
Starbucks
McDonald's
7,560,400
8,112,000
Dunkin' Donuts 437,728
Tim Hortons 123,116
Source: 2010 Annual Reports of Starbucks, McDonalds, Dunkin, Tim Hortons, Caribou Coffee, Seattle’s Best
Caribou Coffee 283,997
Seatle Best 150,800
24
U.S. Market Size in Store Units Company
U.S. Stores
McDonalds (McCafe)
14,027
Starbucks
11,158
Dunkin’ Donuts
6,895
Tim Hortons
645
Caribou Coffee
539
Seattle Best Coffee
500
Source: 2010 Annual Reports of Starbucks, McDonalds, Dunkin, Tim Hortons, Caribou Coffee, Seattle’s Best
25
Market Shares 2%
2%
1%
20%
McDonalds (McCafe)
42%
Starbucks Dunkin’ Donuts Tim Hortons
Caribou Coffee Seattle Best Coffee
33%
Source: 2010 Annual Reports of Starbucks, McDonalds, Dunkin, Tim Hortons, Caribou Coffee, Seattle’s Best
26
Source: http://boardroompr.com/blog/2011/12/12/seasonal-strategies-marketing-for-the-holidays/
27
Average Price of a Medium Coffee $2.50
$2.00
$1.50
$1.00
$0.50
$0.00 Starbucks
Seattle's Best
Caribou Coffee
Dunkin' Donuts
Source: http://online.wsj.com/article/SB10001424052970203550304577138922045363052.html http://blog.wegotcoffee.com/2010/03/mccafe-menu-with-prices-real-fruit.html
Tim Horton's
McCafe
28
Price Effects O Suppliers increase price O e.g. surging cost of green coffee
O Rising costs of operating expenses O Inflation and taxes
29
Consumer Profile
30
Demographics O
MALE
O
FEMALE
O
Occupations:
O
Occupations:
O O O
O
Location: O O O O
O
$40,000 - $100,000
Marital Status O
O
NY Metro Metropolitan Chicago Pacific Greater Los Angeles
Income Range: O
O
Management Finance Sales
Never Married or Separated
Education Level: O O
College Graduate Full Time College Student
Source: 2009 Simmons OneView Database
O O O O
O
Location: O O O O
O
$75,000 - $100,000
Marital Status O
O
NY Metro Metropolitan Chicago Pacific Greater Los Angeles
Income Range: O
O
Sales Administration Legal Healthcare
Never Married or Separated
Education Level: O O
College Graduate Full Time College Student
31
Psychographics MALE O Values O O O O
O O O
O
Money & Career Friends Movie Internet for: O Socializing O Entertainment O Shopping O Information Looking Younger & Attractiveness Health Conscious O Health and Nutrition Likes to try new products O Food & Drinks
Characteristics O O O O O
Adventurous & Challenger Risk taker Doing things that are Unconventional Like to have control over people and resources Problem solving minded
Source: 2009 Simmons OneView Database
FEMALE O Values O O
O O O O
O
Looking Younger & Attractiveness Health Conscious O Counts Calories O Health and Nutrition O Dieting Likes to try new products O Food & Drinks Money & Career Music Internet for: O Shopping O Information O Entertainment O Socializing
Characteristics O O O O
O
Risk taker Doing things that are Unconventional Likes to sand out in crowd Cares what others think and their opinions Multi-tasker
32
Distribution Channels
33
Distribution Channels
Dry Process
Growing & Picking
Wholesaler
Washing & Sorting Process
Shipping & Delivery
Roasting & Packaging Retailers
Wet Process Farming
Factory Process
Export/Import
Processing
Distribution
Source: http://www.munich-business-school.de/intercultural/index.php/Fairtrade_-_an_analysis_of_the_coffee_market,_the_advantages_and_disadvantages_and_the_case_study_Starbucks http://news.starbucks.com/article_display.cfm?article_id=433
34
Distribution Breakdown O
Farming & Factory Process O
O
Export & Import O
O
Shipped from factories to Roasters
Roasting & Packaging process O
O
Gown & Processed In : O South America O Africa O Indonesia O Philippines
Many roasters in US
Distribution O
To Wholesalers & Retailers O Stores O Online O Partners O Grocery Stores
Source: http://amazing-maps.blogspot.com/2008_05_01_archive.html http://www.starbucks.com/career-center/roasting-plant-positions
35
Top 30 U.S. Cities Starbucks Store Counts
Source: starbuckslocations.info
36
Product
37
Product History & Evolution O O
1971 O First Starbucks in Seattle, Washington 1987 O Added hand crafted espresso beverages O
O
1995 O Introduces Frappuccino & Blended frozen coffee drinks O
O
O
Problem occurred (burnt melted cheese on sandwiches masked aroma of coffee) Created vents for ovens
2009 O Instant Coffee launched O
O
Increased sales
2008 O Launches breakfast products O
O
Increased sales
Increased sales
2010 O Launches distribution in grocery stores chains – Ground coffee O
Increased sales
Source: http://me.starbucks.com/en-US/_About+Starbucks/History+of+Starbucks.htm http://www.starbucks.com/about-us/company-information
38
Product Adaptation O
Found that certain locations preferred different types of coffee O
O
West Coast O
O
Espresso
France O
O
Latte
Italy O
O
Increased choices based upon geographical preferences
Café au Lait (Coffee with milk
Asia O
Mocha
Source: http://www.japantrends.com/regional-flavored-coffee-drinks-from-walker-magazine/
39
Customer Value Average Customer Lifespan – 20 years O Customer Retention Rate – (Return for repurchase 75%) O Reasons for High Value Perception: O
O O
O O O O
O O
Wide range of variety Mix and match of the different flavors Custom flavor of the coffee Store ambiance and customer service Free internet service for the customers Comfortable seating and cozy ambiance Availability of the coffee shop Social Responsibility & Fair Trade
Source: http://www.fastcodesign.com/1664927/infographic-of-the-day-whats-the-value-of-a-new-customer
40
Customer Value (cont’d) O
Satisfaction: Not Satisfied 11%
:(
:)
Satisfied 27%
:D Very Satisfied 62%
Source: http://www.fastcodesign.com/1664927/infographic-of-the-day-whats-the-value-of-a-new-customer
41
Advertising & Media Analysis
42
Starbucks - Media Expenditures 11.6%
14.3%
Magazines Newspaper
4.5%
National Newspaper Outdoor
25.7%
Network TV Spot TV Syndication
29.4%
Cable TV 0.3% 0.4%
($000)
Magazines Newspaper
Starbucks 5,093.0
1,599.8
Source: 2010 Ad$ Summary January – December
National Spot Radio
8.9% 4.8%
National Newspaper
Outdoor
10,478.1
1,699.0
Network TV Spot TV 3,184.7
156.8
Syndication Cable TV 89.2
9,162.8
National Spot Radio 4,141.3
43
Media Expenditures in % 100.00% 90.00%
80.00% 70.00% 60.00% 50.00% 40.00%
30.00% 20.00% 10.00% 0.00%
Starbucks
Dunkin Brands Inc.
Source: 2010 Ad$ Summary January – December
Tim Horton's
Caribou Coffee
McDonalds
Seattle's Best: Coffee
44
Media Expenditures in Dollars 120,000
100,000
($000)
80,000
60,000
40,000
20,000
0
Starbucks
Dunkin Brands Inc.
Source: 2010 Ad$ Summary January – December
Tim Horton's
Caribou Coffee
McDonalds
Seattle's Best: Coffee
45
46
47
48
49
50
51
Creative
52
Creative Rationale O
Our Target are people who: Sacrifice time with family to get ahead Have a keen sense of adventure They like nature Like funny, humorous, amusing and witty ad’s Expect advertising to be entertaining Pursue challenges Work centered (far above average) Don’t take care of themselves as well as they should because of their busy lifestyles O Eat fast food because they don’t have time O Don’t eat healthy because they don’t have the time O O O O O O O O
O
Because our target does not have the time or take the time for them-selves, we will connect with our target by showing them how Starbucks will give them the much needed break they need no matter how busy or stressful their lives are and escape to nature something they like and enjoy while incorporating humor which is something they relate to.
Source: 2009 Simmons OneView Database
53
Product Seasonality O
Because Starbucks offers a large variety of drinks on their menu for each season, we believe it is best to distribute our advertising evenly throughout the year and integrate the ever-changing seasonal drinks into the advertising campaign to boost, promote, and maintain sales at all times during the year.
O
Each seasons advertising will promote and integrate different drinks in correlation to the weather. O O O
O
Spring – fruit smoothie Summer – Frappuccino Winter – Peppermint late Fall – Hot Coffee or Apple Cider
54
Overall Creative Message O The overall message of the advertisements is to attract our
target demographic (adults 18 to 49) with the humorous and unique appeal that Starbucks will let them escape their stressful life. Drinking our product whether at home, the office, in our stores, or on the go, no matter how stressful o chaotic your life is, will allow you to enjoy the Starbucks experience of calmness and serenity that will give them the motivation they need to take on the day.
55
Out of Home & Internet Ad’s The Out of home ads will feature the same idea as the TV commercials and display the chaotic situation with the role model not responding and enjoying their escape with Starbucks and transition into their ideal escape. O Taxi’s will also be wrapped to display seasonal landscapes with the Starbucks drink and the escape appeal O
Ads designed by Lauren Buys
56
Print Ad’s Newspapers & Magazines O
The print ads will be a reminder of the TV commercials but will show the role model in their ideal surroundings, escaping their stress and worries with Starbucks
57
Ads designed by Lauren Buys
58
Ads designed by Lauren Buys
59
TV & Internet Commercials O
The TV commercials will display exaggerated humorous chaotic situations at the office or at home are occurring. Where in these situations most people would not be able to stay calm and focus on themselves. However our role models will be able to escape (to their ideal surroundings incorporating the season) by drinking a Starbucks product.
O
Each season will feature different chaotic situations: O O O O
O
Winter – snowballs in the office Spring – paintball in the office Fall – Leaves falling Summer – water balloon fight
Each season will also promote different drinks in correlation to the weather.
Ads designed by Lauren Buys
60
Product Placement - NCIS O
We found that our target market responds extremely positively to product placement O
O
Based on our targets media habits with a high index number
Why NCIS? O
O
Our Marketing Strategy is to show people a way to escape and relax with Starbucks no matter how stressful life gets. In NCIS, federal agents deal with very stressful situations and use coffee as an escape and a motivator to keep them going through the day. We believe this is a prefect match with the Starbucks brand and marketing concept. The show lasts 3 season long (Fall, Winter, & Spring) giving Starbucks the potential to promote different products with the correlating seasons.
Graphics designed by Lauren Buys
61
Media Plan
62
Media Objectives O
Within the $40 million budget, create a national awareness of Starbucks for the 2012 – 2013 seasons.
O
Following introduction, provide sustaining support throughout each different season (Winter, Summer, Spring, Fall).
O
Target advertising to all adults 18 to 49 who are pervious users/buyers for repurchase and nonusers/buyers of Starbucks products for trial use.
O
During the 4 advertising seasons have 938,752,057 impressions reach 156,458,676 people in our target market an average of 6 times.
O
Use media that can create awareness and effectively communicate the advantages of buying/using Starbucks products to adults 18 to 49. 63
Media Strategy O
Use product placement or Cable TV as the primary medium to create awareness with adults 18 to 49
O
Use a dominance approach by advertising in all relevant mediums O TV O Magazines O Out of Home O Internet O Newspaper O Radio (online)
O
Use Internet, magazines, and newspaper media to achieve broad national reach of adult in our target.
O
Concentrate marketing weight evenly though 4 seasons to maintain millions of impression and high frequency
O
Provide support of the marketing message with Out of home mediums in major cities utilizing airports, subways, and taxies. 64
Target Audience Analysis & Recommendations Attribute
Male
Female
DEMOGRAPHICS
O
Adult - Male & Female
Occupations
MGMT/Finance/Sales
Sale/Administration/Legal
Location
Highly populated Urban Area’s
Highly populated Urban Area’s
O
Age 18 – 49
Income Range
$40,000 - $100,000
$75,000 - $100,000
O
College Educated
Education Level
College grad/Current college student
College grad/Current college student
O
Business Professionals
O
Higher luxury-consumption
PSYCOGRAPHCS Values
• • • •
Money & Career Friends Movie Internet for: •
•
•
Characteristics
• • •
•
Socializing/Entertainme nt/Shopping/Informatio n
Looking Younger & Attractiveness Health Conscious
Adventurous & Challenger Risk taker Doing things that are Unconventional Like to have control over people and resources Problem solving minded
Source: 2009 Simmons OneView Database
•
Health Conscious • • •
•
Likes to try new products •
• • •
• • •
Food & Drinks
Money & Career Music Internet for: •
• •
Counts Calories Health and Nutrition Dieting
levels O
Upper Middle Class
O
Urban Areas
Shopping/Informatio n/Entertainment/So cializing
Risk taker Doing things that are Unconventional Likes to sand out in crowd Cares what others think and their opinions Multi-tasker
65
Media Habits of Target Audience Out of Home Airport displays attention paid - A LOT Subway trains or platforms attention paid - A LOT I often notice the ads on trains I often notice the ads on buses I often notice the ads in taxis Taxis attention paid - A LOT Buses attention paid - A LOT Internet The Internet has become a primary source of entertainment for me personally I spend less time reading newspapers in print because of the Internet I spend less time listening to non-internet radio because of the Internet I spend less time watching television on my television set because of the Internet Television I am a TV addict If i couldn’t have cable, i wouldn’t watch television When i watch television, i often notice brand name products used as part of the set I find tv advertising interesting and quite often it gives me something to talk about Product Placement When i watch movies, i often notice brand name products used as part of the set After i watch a movie, i can remember the brand name products the characters were using during the movie To see a character interact with brand name products that i use makes the movie more real to me When i see a character using a brand name product i never tried before, i am likely to try it When i see a brand name product i’ve used before in a movie, i am reassured that the product is good To see a character interact with brand name products that i use makes the tv show more real to me Magazine I cannot resist buying magazines Magazines are my main source of entertainment I often read ads in magazines just out of curiosity I enjoy reading ads in magazines I rely on magazines to keep me informed Newspaper I trust the information i read in newspapers
Source: 2009 Simmons OneView Database
Index 201 178 145 144 144 140 139
181 175 163 161 129 126 124 120 148 144 138 129 123 119 165 128 121 121 113
117
66
Media
Budget Allocated
Product Placement (or Cable TV) Magazine Newspaper
$20,000,000 $8,000,000 $2,000,000
Internet
$3,000,000
Out of Home
$7,000,000
18%
7% 50%
5%
20%
Product Placement
Magazine
Internet
Out of Home
Newspaper
67
Product Placement Rationale O O
O O
O
O
O
We decided to allocate $20 million of our $40 million budget and $20 million of our extended $60 million budget into product placement By allocating $20 million from our budgets to product placement in NCIS we would be able to reach 19.1 million viewers each week and 4.3 million of those viewers are in our target of 18-49 NCIS is the #1 Network show on Television The season lasts from mid September to mid May each year meaning we would be able to sustain our reach each week for 3 weather seasons (Fall, Winter, & Spring). Each TV season has 24 episodes By using product placement in NCIS we also will be able to reach an even larger amount of viewers and increase are frequency by the many reruns and repeats of episodes on multiple networks at different times during the day/night and off seasons. While advertising in TV commercials, Print or out of home, the season come and go and your message is laid to rest but By placing Starbucks into NCIS our message will never die. Our pricing of $20 million comes from the prices of other product placement fees with top ranking shows O
O O
For example Coca-Cola pays $50 million for the celebrity judges to drink out of coke cups and have them present during the entire episode of American Idol as well as having an Coca-Cola couch present though the show. American Idol has more episodes and is a longer show We believe that our costing should be between $15-$25 million to ad a Starbucks logo on the coffee cups that characters drink out of on NCIS – the large price difference comes from the fact that Starbucks will only be seen 1 – 2 times per episode not throughout the entire episode like CocaCola
Source: http://www.usatoday.com/life/television/news/nielsens-charts.htm http://www.cnbc.com/id/45884892/Primetime_Shows_With_the_Most_Product_Placement?slide=11
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TV Rationale O
O O
O O O
Allocated $20 million of $40 million to TV We chose TV because of our competitions large use of this medium Good way to communicate message verbally and visually Large reach of our specific segmented target Cable TV is paid for = larger amount of wealthier consumers This allocation was firstly based on index. A list of the top 20 indices was put together, then the above 11 networks were chosen based on their reach. For the most part, reach is in declining order, beginning with the Food Network with a reach of 10,274,000. 364 ads per year means that the ad will play 7 times a week (preferably 1x a day during the late night time-spot, or afternoon on Sundays). 260 ads indicates a frequency of 5x a week (preferably during the week), and 52 ads indicates that the ad will play 1x a week, every week, for a the entire year. Channel The Food Network TLC HGTV Comedy Central E! MTV Bravo VH1 BBC America Adult Swim Style Network
Reach (000)
Unit Price
# of ads
10,274
$6,942.5
364
$2,527,070
8,793 8,334 8,509 7,348 6,397 5,169 5,112 2,602 3,381 1,718
$6,040.0 $5,690.0 $7,877.5 $5,810.0 $8,082.5 $5,425.0 $3,970.0 $1,125.0 $20,347.5 $1,342.5
364 364 364 364 364 364 364 364 52 260
$2,198,560 $2,071,160 $2,867,410 $2,114,840 $2,942,030 $1,974,700 $1,445,080 $409,500 $1,058,070 $349,050 $19,957,470
Total: Source: Professor Toss – A18-49 2011 Cable Ranker MRI Database
Total Price
69
Source: Marketer’s Guide to Media 2011 MRI Database
70
Source: Marketer’s Guide to Media 2011 MRI Database
Magazine
Reach
Index
Cooking Lite
1,772,000
134
Allure
1,093,000
144
In Touch W.
801,000
165
Marie Claire
993,000
209
OK!
809,000
173
Vogue
1,298,000
143
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Magazine Budget Pricing & Allocation Magazine
Number of Issues
Total Cost
Expected Reach
Cooking Lite
$ 114,900
11
$ 1,263,900
1,772,000
Allure
$ 131,721
12
$ 1,580,652
1,093,000
$ 91,760
12
$ 1,101,120
801,000
$ 120,240
12
$ 1,442,880
993,000
$ 74,050
12
$ 888,240
809,000
$ 151,133
12
$ 1,813,596
1,298,000
TOTALS:
$8,090,388
6,766,000
In Touch Weekly Marie Claire OK! Vogue!
Source: Marketer’s Guide to Media 2011 MRI Database
Cost / 1 Full Page Color Ad
72
Non-Selected Magazine Rationale O
Other magazines reviewed but not selected had the following issues: The index number was too low O The reach was too low O The price was too high for the amount of reach O The magazine does not appeal to our target based on interest and media habits O
Source: Marketer’s Guide to Media 2011 MRI Database
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Out of Home Rationale O
We decided to allocate $7 million of our $40 million budget to out of home. Based on our research we found this to be one of the most effective and influential media to our target.
O Airport (Top traffic airports in the USA) O
Atlanta / Chicago / Los Angeles / Dallas / Denver / NYC / Las Vegas / Phoenix
O
We chose to advertise in the 8 busiest airports in the US because: O Our research showed us that this was the most effective out of home use with an index number of 201 O This would reach a massive amount of people from the area and out of the area. O This would promote direct sales because each of these airports have a Starbucks O Traveling is stressful and chaotic and people most are traveling for work or business, Starbucks message will really connect with these travelers O We chose to do 1 large banner display in the top airports for 52 weeks (1 Full Year)
Source: Marketer’s Guide to Media 2011 MRI Database http://www.bluelinemedia.com/
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Out of Home Rationale Cont’d O
Subway Based on our research we found interior subway ads to have a large impact on our target with an index number of --- saying they pay attention and like subway ads O We chose the top 4 cities with the highest subway traffic O NYC / DC / Chicago / Boston O Advertising in the subway systems of these cities would give us the highest reach for our money and the target would have a higher probability to read and pay attention to the advertisements versus other out of home media. O We want to be present in all the lines of the subway displaying at least 6 ads in each subway car and advertise in 10 cars per subway line O
Source: Marketer’s Guide to Media 2011 MRI Database http://www.bluelinemedia.com/
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Out of Home Rationale Cont’d O
Taxi O Based on our research our target play attention to the ad’s on taxi cabs O We decided to advertise on taxi’s in the top 3 cities that have the highest taxi usage O
NYC / Chicago / Las Vegas
We also decided that to get the highest attention and remembrance from our taxi ads we would do a complete taxi wrap. (as seen before in the creative) O These wrapped taxi cabs would also create a large amount of buzz O We will advertise on 93 cabs per city O
Source: Marketer’s Guide to Media 2011 MRI Database http://www.bluelinemedia.com/
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Out of Home Budget Allocation Media
Cost
Airport
1 Large banner = $14,500 for 4 Weeks
Total
Number & Frequency Top 8 US Airports for 1 year (52 weeks)
$1,508,000 Total:
$ 1,508,000
1 Vertical interior ad = $75 for 4 weeks
Subway NYC
6 ads/car - 10 cars in each line - 22 subway lines – for 52 weeks
$ 1,287,000
DC
6 ads/car - 10 cars in each line - 5 subway lines – for 52 weeks
$ 292,500
Chicago
6 ads/car - 10 cars in each line – 7 Lines – for 52 Weeks
$469,500
6 ads/car – 10 cars per line
$ 234,000
Boston
Total:
$ 2,283,000
1 Fully wrapped taxi cab cost = $1400 for 4 weeks
Taxi NYC
93 wrapped cabs for 32 weeks a year (2 months / season changing style)
$ 1,078,800
Chicago
93 wrapped cabs for 32 weeks a year (2 months / season changing style)
$ 1,078,800
Las Vegas
93 wrapped cabs for 32 weeks a year (2 months / season changing style)
$ 1,078,800
Source: Marketer’s Guide to Media 2011 MRI Database http://www.bluelinemedia.com/
Total:
$3, 236,400
Out of Home TOTAL :
$ 6,967,400
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Out of Home Non Selected Media Rationale O
Media not selected: O Billboards We felt that although billboards have a high reach they do not effectively impact the target and leave a long lasting impression like subway ads or wrapped taxi’s do O Our targets media habits had a lower index number for billboards O
O
Bus’s and Bus Stops O
O
Movie Theater O
O
Although Bus’s and Bus stops are an effective way to reach our target based on our targets media habits the price was too high and the reach was too low to use this medium. Although our target pays high attention to movie theater commercials and ad’s the price was too high to effectively reach a large portion of our target.
Mobile Billboards O
Are target did not respond to this media well (low index #) and we felt that money could be better allocated to mediums that had a longer lasting impression on our target
Source: Marketer’s Guide to Media 2011 MRI Database http://www.bluelinemedia.com/
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Internet Rationale O
We decided to allocate $3 million of our $40 million budget to Internet ads.
O
We decided to advertise on Pandora (internet radio) and Spodify (Internet Radio) because a large portion of adults 18 – 49 are substituting traditional radio with internet radio at work and at home and even on the go (cell phone). We believe this is a great way to reach our target.
O
We also choose Hulu because we would be able to connect with our target through visual and audio commercials and our target frequently uses Hulu based on our research.
O
We also decided to advertise on NYT, WSJ, & CNN websites because there is a large current trend to get news no longer in print but online. Our target most frequently uses these 3 sites for their news. (High index numbers)
O
We decided to also advertise on travel websites. 1) Because the high majority of visitors to these websites are our target market 2) Our targets media habits include these websites 3) Travel websites correlate with our marketing message of needing an escape (Travelosity, Orbitz, Tripadvisor, Expedia)
O
We also included ESPN to attract the male demographic. ESPN had a high index number in our target’s media habits.
Source: MRI Database & Simmons OneView Database Marketers Guide to Media 2011
79
Internet Budget Allocation O
We distributed the $3 million into the top internet sites who: Had the largest index numbers – What our target uses/visits the most O Would give us the largest amounts of reach O
O
Overall with our distribution we were able to reach roughly ----- people
Website Streaming
CPM
Desired Impressions (000)
Hulu
$
25.00
60,000 $
1,500,000
Pandora
$
6.85
40,000 $
274,000
Spotify News
$
20.00
20,000 $
400,000
NYTimes.com
$
30.00
6,000 $
180,000
WSJ.com
$
50.00
4,200 $
210,000
CNN.com Trip
$
22.00
4,000 $
88,000
TripAdvisor.com $
16.00
10,000 $
160,000
Orbitz.com
$
16.00
5,000 $
80,000
Travelosity.com $
16.00
3,000 $
48,000
Expedia.com Sports
$
20.00
2,000 $
40,000
ESPN.com
$
20.00
1,000 $
20,000
TOTAL COST: $
Source: MRI Database; Simmons Onvewiew Database; Marketers Guide to Media 2011 www.radioworkd.co.uk/reports-and-studies www.linkedin.com/answers/marketing-sales/advertising-promotion/advertising/MAR_ADP_ADV/419287174133627440041663_CTOCoopFY10_Online_lores.pdf Anand.typepad.com/datawocky/2008/04/affinity-and-he.html
Price ($)
3,000,000
www.bmcommunications.com/int_ad.htm www.imediaconnection.com/content/23903.asp www.nyimes.com/2009/11/11/business/media/11adco.html Articles.businessinsider.com/2008-03-11/tech/30019665_1_hulu-ceo-jason-kilar-bandwith-ad-dollars www.quora.com/internet-advertising/what-is-pandoras-average-cpm
80
Source: MRI Database Simmons OneView Database Marketers Guide to Media 2011
81
USA Today New York Times Los Angeles Times Washington Post Chicago Tribune Seattle Times San Francisco Chronicle
Circulation (000) 1,981.1 1,364.3 600.4 545.3 441.5 251.7 223.5
Half a Page Rates ($)* 158,000 108,808 47,884 43,490 35,211 20,074 17,825
*Although we were not able to obtain exact pricing for some of the newspapers selected. We based our cost estimate on pricing of similar ranking newspapers with comparable circulation. We would like to add a 15% fluctuation of price variation due to the lake of pricing availability. Seasons: March, June, September, December = 1 Ad in Each Newspaper 4 times a year 4 Days per Year Monday
Tuesday Wednesday Thursday Friday Saturday Sunday Total Reach & Cost
Source: MRI Database Marketers Guide to Media 2011 USAtoday.com / NYT.com / LAT.com / WP.com ChicagoTribune.com / SeatttleTimes.com / SFC.com
Journal
Cost
WA Post
$173,960
SF Chronicle Seattle Times Chicago Tribune USA Today LA Times NY Times 5,407,800
$71,300 $80,296 $140,844 $632,000 $191,536 $435,232 $1,725,168
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Source: MRI Database Simmons OneView Database Marketers Guide to Media 2011
83
Radio Rationale We decided to allocate $0 from our $40 million dollar budget as well as our alternative $20 & $60 Million budgets O Reasons Why: O Due to our competitions little to no allocation to this media O Due to the new trend of internet radio dominating air waves O
O
O
Due to the lack of importance to our target market O
O
Based on our targets media habits (low index numbers)
Due to radio’s lack of ability to fully and effectively convey our marketing message O
O
We will be advertising on internet radio sites
We believe Visually and Verbally or Textually is more effective, memorable, and captivating to our target than just Verbally spoken
Due to the amount of our budgets we believe other media is more effective and a better use of money to effectively reach and impact our target
Source: MRI Database Simmons OneView Database
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Media Plan Flowchart
Q3- Launch Phase 2012 1
TELEVISION Product Placement NCIS (This does not account for reruns)
8
Sep 15 22 29 6
Q4 Oct 13 20 27 3
Nov 10 17 24 1
Q1 - 2013 8
Dec 15 22 29 5
Jan 12 19 26 2
Feb 9 16 23 2
Q2 9
Mar 16 23 30 6
Apr 13 20 27 4
May 11 18 25 1
Q3 8
Jun 15 22 29 6
Jul 13 20 27 3
Aug 10 17 24 31
Cost
$20,000,000
OR Cable TV (Alternative for Product Placement) The Food Network TLC HGTV Comedy Central E! MTV Bravo VH1 BBC America Adult Swim Style Network TV or PP Total Cost NEWSPAPER Washington Post San Francisco Chronicle Seattle Times Chicago Tribune USA Today LA Times NY Times Newspaper Total Cost CONSUMER MAGAZINES Cooking Lite Allure In touch Weekly Marie Claire OK! Vogue Magazine Total Cost INTERNET/ONLINE Streaming Websibtes Hulu.com Pandora.com Spodify.com News Websites NYTimes.com WSJ.com CNN.com Travel Websites TripAdvisor.com Orbitz.com Travelosity.com Expedia.com Sports Website ESPN.com Internet Total Cost OUT OF HOME Airport Subway Taxi Out of Home Total Cost
GRAND TOTAL COST $(000)
$2,527,070 $2,198,560 $2,071,160 $2,867,410 $2,114,840 $2,942,030 $1,974,700 $1,445,080 $409,500 $1,058,070 $349,050 $20,000,000
$173,960 $71,300 $80,296 $140,844 $632,000 $191,536 $435,232 $1,725,168
$1,263,900 $1,580,652 $1,101,120 $1,442,880 $888,240 $1,813,596 $8,090,388
$1,500,000 $274,000 $400,000
$180,000 $210,000 $160,000
$160,000 $80,000 $48,000 $40,000
$20,000 $3,072,000
$1,508,000 $2,283,000 $3,236,400 $7,027,400
$39,914,956 $39,872,426
Decision Dates & Cancellation Flexibility Media
Decision Date
Cancellation
TV
5 Weeks Prior for reservations
3 Weeks notice for cancellation
Product Placement
Immediate decision (Within 2 weeks)
No cancelation applicable
Magazine
9 Weeks prior for reservation
8 Weeks notice for cancellation
Out of Home
3 months prior for reservation
1 month notice for cancellation
Internet
3 weeks prior for reservation
1 week notice for cancellation
Source: Marketers Guide to Media 2011
86
Overall Expected Reach & Frequency Media
Estimated Impressions
Product Placement (or TV)
439,300,000 (67,637,000)
Out of Home (without taxi’s)
241,428,857
Internet
155,200,000
Magazine
79,420,000
Newspaper
21,631,200
Total:
936,980,057
Desired frequency = 6
Estimated Reach = 156,163,343
87
Media
Budget Allocated
Out of Home
$7,000,000
Cable TV
$10,000,000
Internet
$3,000,000
Estimated Impressions: 439,886,857 15% 35%
50%
OOH
Source: MRI Database Simmons OneView Database Marketers Guide to Media 2011
Cable TV
Internet
88
Channel The Food Network TLC HGTV Comedy Central E!
Reach (000) 10,274 8,793 8,334 8,509 7,348
Unit Price $6,942.5 $6,040.0 $5,690.0 $7,877.5 $5,810.0
# of ads 342 300 300 300 300
Total Price $2,374,335 $1,812,000 $1,707,000 $2,363,250 $1,743,000
Media
Budget Allocated
Television
$20,000,000
Product Placement
$20,000,000
Magazine
$8,000,000
Newspaper
$2,000,000
Internet
$3,000,000
Out of Home
$7,000,000
Estimated Impressions: 1,004,617,057 12% 5%
34%
3%
13%
33%
Source: MRI Database Simmons OneView Database Marketers Guide to Media 2011
Television
Product Placement
Magazine
Newspaper
Internet
Out of Home
90
Responses to Earlier Client Questions O
What is the message that you are trying to convey to the consumer in regards to your creative advertisement? O
O
What media outlets are you looking to use in the media plan? O
O
For the Starbucks media plan, we will be attempting to utilize product placement, Out-ofhome, television, internet, magazines, and newspapers.
Out of the different media outlets that you have chosen to incorporate into the media plan, which outlet will be allocated the majority of the budget? O
O
When customers purchase Starbucks products we want to give them a sense of escape from their everyday lives. Starbucks is a brand that wants to be identified with happiness and delight. Therefore, the advertisements that will be displayed will exhibit the average nine-to-five worker using Starbucks as their way of escape from the stress and tedium that they may encounter during the day.
Television and product placement will be the top priorities in the budget for the media plan.
What is the demographic that you are targeting with the media plan? O
We found that a large amount of Starbucks drinkers fall into the 18 to 35 year old demographic. Furthermore, we found that most customers have a steady job as well as highly educated. In addition to education level, we found that most Starbucks customers are also viewed as upper-middle class.
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Anything Else That May be an Issue O
Product Placement may not be the chosen route O We prepared a alternative TV plan that substitutes product placement with a more traditional Cable TV route
O
Radio is not chosen, How will we reach listeners? O Pandora and Spodify will cover radio listeners at home, at work, or on the go (mobile)
O
Starbucks would like to increase their budget and increase their reach & frequency O We have prepared an alternative increased budget to account for any desire to increase reach and frequency
O
Starbucks has had to decrease the advertising budget due to unforeseen circumstances O We have created a decreased budget for any possible problems or cutbacks
O
How will the advertising message transcend to nonbusiness oriented customers? O Our advertising campaign can be modified to include all types of stressful humorous situations including nonbusiness oriented consumers. Such as a stay at home mom dealing with the stress of running a family, or a stressed out college student dealing with the chaos of juggling school.
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Conclusion O
We believe you should choose our media plan because: O
O O O
O O
O O
O
Mix of Innovative & Traditional aspects Incorporates the best way to reach and impact Starbucks’ target Use all current/relevant mediums for advertisement Have a unique and memorable advertising campaign We will drive sales through all 4 seasons Impressions = 936,980,057 Reach = 156,163,343 Frequency = 6
All of these factors will drastically INCREASE STARBUCKS SALES
93
