Starbuck

• 1. Digging to the bottom of the cup STARBUCKS NEW BUSINESS PITCH DECEMBER 9, 2008 TAYLOR FOLEY BRITTANY NUGENT SHANNON REED MARIAM SHAHAB LOUISA STELLE

• 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.

• 5. Core Beliefs We believe in: hunting for the uniqueness in your brand building brands that impact consumer lives creating a treasure chest for every campaign

• 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%

• 11. Coffee Industry Overview Starbucks and Dunkin Donuts - leaders in the category with 90.3% of sales Starbucks has seen sales decline and begun closing stores Dunkin Donuts continued expanding in 2007 Coffee houses growth from 2005-2007 - 43.7% Donut shops growth from 2005-2007 - 16.9% Independent coffeehouses have the largest following of regulars Starbucks and Dunkin Donuts have the most number of visits per month Starbucks...