Starbucks Advertising Campaign for Selfie Coffee

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Demographics

· Millennials represent 24% of Los Angeles residents, which puts the city in the ranking of top 5 biggest populations of Millennials in the country.

· Age: 16 to 34.

· Gender: Both.

· Status: 21% married.

· Occupation: 62% employed.

· Income: $25K for younger millennials.

$48K to older millennials.

· Education: 23% with a Bachelor’s degree or higher.

· Race: 55% White.

19% Hispanic.

14% African Americans.

5% Asians.

· Nationality: 2/3 born Americans.

· Household: 35% live with parents.

· Have children: 36% of woman’s.

Psychographics

According to Kleppner’s Millennials are techno savvy, coddled, optimistic, prone to abrupt shifts in taste and tough to pigeonhole. They are the most educated and least-employed generation yet, and not so religious. Below are some more characteristics about them:

· 61% rate products and services online.

· 63% will likely to do business with a socially responsible company.

· 75% would like to travel abroad as much as possible.

· 69% consider themselves adventurous.

· 77% enjoy eating a variety of ethnic foods.

· 72% say their physique or appearance is very important.

· 60% say good health is the most important thing in life.

· 56% will switch brands for cents of a coupon.

· 63% will purchase a non-favorite brand on sale.

· 37% will purchase a product or service to support a cause they believe in.

· 58% will pay more to support a cause.

· Twice as likely to visit restaurants and coffeehouses mid-morning and afternoon.

· 3x more friends on Facebook and Instagram and active blogs.

VALs

After researching the psychographics of millennials we could identify that the group that most fit their characteristics is called Experiencers, where self-expression is considered their primary motivation. Experiencers are enthusiastic about life; they like to travel and try ethnic foods, are impulsive consumers and like to take risks. They spend most of their money socializing, buying technological gadgets and things considered cool by their friends. They are also very concerned about health and the environment.

Geography

Continent, Country and Region: North America - United States - West

City: Los Angeles County

Density: 8,100 per square mile

Climate: Average temperature 63.9 F

Population: 9,818,605

Number of Starbucks Stores: 110

City Area: 502 square miles

Media Budget Calculation

Total Revenue / Total Stores = Net Profit per Store / Year

$21,320,000,000 / 240000 = $ 888,333.33

Net Profit per Store / Days in a year = Net Profit per Store / Day

$888,333.33 / 365 = $ 2,433.78

With more than 110 branches in the L.A. area;

Daily Profit per Store X Total Stores in LA X Days in a year = Net Profit in LA District / Year

$ 2,433.78 X 110 X 365 = $ 97,716,666.00

Starbucks Annual Media Budget was determined at %09 of Starbucks total revenue in Los Angeles Area

Annual Net Profit in LA District X %09 = Starbucks Media Budget in LA

97,716,666.00 X %09 = $ 8,794,499.96

Starbucks stores in LA grossed almost 98 million dollar in revenue last year and thus our media budget is $ 9 millions. (Strategically Starbucks use %09 of its income for marketing spending.) These funds would be allocated into : social media AdWords and Seo, Starbucks Stores. (We will use our stores as a media channel.) Starbucks Selfie coffee will be launched in February but our advertising campaign will start beginning of January. (One month before the launch) Our goal is to take advantage of create curiosity with ads that started a month ago and draw attention to millennials.

Media Objectives:

Primary: Attract Millennials and increase market revenue in %5.

Secondary: Increase brand reputation, likes on Facebook, followers on Instagram, downloads of the app.

Campaign Length: 6 months

Campaign Budget: $ 8,794,499.96

Media Channels:

- Internet Channels

- Google AdWords % 50

- Facebook % 10

- Instagram % 15

- Twitter % 10

- BuzzFeed % 10

- E-mailing % 01

- Outdoor and Indoor Channels

- Selfie Coffee Machine % 02

- Point Of Placement % 01

- Shelters % 15

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