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Starbucks Case Study: Canada

“Notes for Notes”

By: Clark Ingram and Caitlin Worley

Strengths Weaknesses Opportunities Threats

Coffee is #1 beverage in Canada

Not a Canadian based company

Rising popularity of coffee-themed restaurants in Canada

Canadian based coffee-themed restaurants

All age groups in Canada drink coffee

Slow implementation of technology in Canada

Organic products and “going green” E.g. Tim Hortons

Swot Analysis

• Consumers become marketers of the product

• Music has an effect on ones emotions

• Provides positivity without taking away from the core product

Starbucks Entertainment

“Notes for Notes”: Influences

A concerted effort by Starbucks to reclaim the coffee house aura once present in its coffee houses

A mandate by Starbucks to maintain customer focus on the coffee itself

A strong sense of national pride among Canadians

Types of music conducive to the coffee house atmosphere coinciding with the favorite types of music in Canada

Coffee and music both elicit feelings from their consumers

“Notes for Notes”: The Campaign

Music pairings for the coffee will be suggested both by baristas and in-store advertisements

The coffee and music will be paired according to style and feelings elicited

The “Notes for Notes” frequent buyer card

“Notes for Notes”: The Music

• The most popular types of music in Canada are Indie Rock, Adult Contemporary, Jazz, Singer/Songwriter, and Standards

• These types of music are often synonymous with the coffee house atmosphere Starbucks is trying to recreate

• All music featured and sold as part of the “Notes for Notes” campaign is by Canadian artists

• Music will be sold in both digital download and CD compilation format

Downloads and CD’s will be offered as pairings to types of coffee drinks and marketed in five basic coffee drink categories

Breakfast Blend/Mild

Adult Contemporary, Jazz, and Standards

Bold/African

Newer Indie Rock, Singer/Songwriter

House Blend/Asian

Acoustic Classic Rock

Espresso

90’s Pop and Rock

Frappuccino

Acoustic 80’s Pop and Rock

Expected Sales Revenues

Modest 4% increase in music sales expected

Based on number of stores and previous sales figures, sales in Canadian Starbucks account for roughly 25% of the company’s international sales

Average yearly sales= $1,300,000

Total 5-year sales= $6,500,000