Starbucks Mk

7/28/2019 Starbucks Mk

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Social Media Showcase

Starbucks


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Starbucks social media ingredients

MyStarbucks idea website + Twitter

Registered users can give ideas to improve the coffee experience

Users can vote and popular ones get implemented

Feedback is given on progress

Newsletter & Questionairre

Facebook fan page with photos and messages

Twitter.com/starbucks to engage people real time

YouTube Channel to show new openings and background info

Flickr.com Photo Channel (not supported by Starbucks)

Starbucks CD Store

2


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Starbucks social media ingredients

V2V.net is a social network website to engage social minded fans

Builds a community around causes that their clients care about

Starbucks (Redcard)

Do something good everyday Product line that donates profit to

help around the world

Set up Starbucks Shared Planet

Commitment to green issues supporting communities outside US

iPhone Apps (sept 2009) initiated from MyStarbucksidea

Store locator

Starbucks Card test

LinkedIn Company page for corporate communications 3


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Starbucks collaboration tool

Registered users can give ideas to improve the

coffee experience

Users can vote and popular ones get implemented

Feedback is given on progress 4


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Newsletter to

keep fansactivated


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Questionairre to getfeedback from

MyStarbucks Idea users


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Sept 1. 2009 Facebook fan page with photos and messages

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Oct. 20. 2009 Facebook fan page with photos and messages


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Twitter.com/

starbucks to

engage

people realtime

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YouTube

Channel to

show new

openingsand

background

info

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Not supported by Starbucks!

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Buy theinstore

music

online!

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Starbucks Card personalization

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Actively

participate

updating the

facts

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Starbucks V2V social responsibility network

Engaging social like mindedStarbuck fans is different

from their own corporate

social responsibility

program

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Starbucks corporate environmental social responsibility

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Starbucks & RED productline to do good

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Update Sept 2009: Starbucks 2 iPhone Apps

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App #1 MyStarbucks

StoreLocator

Bookmark favourite locationsSearch for opening hours and

amenities

Including menu and nutritional

info

drink builderdisplays

nutritional info based on

selections made

App # 2 Starbucks Card

Test in 16 stores in Seattle and

the Bay Area

Displays scannable bar code on

cellphone screen to use for

purchases, like a Starbucks

card!


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Social Media B-t-B Ingredients

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B-t-B & Corporate

function using social

media


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Various

LinkedIn

groups

Some

facilitated

by

Starbucks

33 (Jan 6,

2010)


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Update Oct 14. 2009 recruitment in Social Media by Starbucks

24http://www.youtube.com/watch?v=75sHpVWBUC8&feature=related Thanks to whyhire.me
http://www.youtube.com/watch?v=75sHpVWBUC8&feature=relatedhttp://www.youtube.com/watch?v=75sHpVWBUC8&feature=related


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Update Oct 18. 2009 recruitment in Social media by Starbucks

25

http://www.youtube.com/watch?v=Vx4x3i63Gfw&feature=related

Thanks to Northwest Recruiters Association and Amy Bethhale
http://www.youtube.com/watch?v=Vx4x3i63Gfw&feature=relatedhttp://www.youtube.com/watch?v=Vx4x3i63Gfw&feature=related


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Consumer respons


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The Starbucks Loyalty Story

28 Brand Keys, Inc. 2010

STRATEGY


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100

110

120

130

140

Location & Value Quality & Taste Service &

Surroundings

Variety &

Selection

118

125

129

110

Ideal

Loyalty Drivers Order of Importance

CustomerExpectationLevels

3

Highest Lowest

1

1. Loyalty Drivers in order of importance.

2. Percent contribution to future purchase/loyalty.

3. Customer Expectation level for each Driver.

Low =

Table Stakes

High =

Differentiator

2Percent of Contribution

#1: How do consumers view the category?

#2: What is the hierarchy of contribution to loyalty?

#3: Wheres the opportunity

for greatest differentiation?

STRATEGYHow Do They Buy in the Category?

2006 Ideal Coffee Provider


TACTICS


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TACTICSPercent-Contribution of Individual ABVsDriver #2: Service & Surroundings (28%)



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Highest Lowest


2006 Customer Loyalty Engagement Index:Coffee

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Starbucks dominates in thedriver with strongest

customer expectations.

Brand Keys, Inc. 2010


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What Happened?



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Text of Starbucks Memo

From: Howard Schultz

Sent: Wednesday, February 14, 200710:39 AM PST

Subject: The commoditization of the Starbucks Experience as you prepare for the FY 08

strategic planning process, I want to share some of my thoughts with you.

Over the past ten years, in order to achieve the growth, development, and scale necessary to go

from less than 1,000 stores to 13,000 stores and beyond, we have had to make a series

of decisions that, in the commoditization of our brand.

Many of these decisions were probably right at the time, and on their own merit would not

have created the dilution of the experience; but in this case, the sum is much greater

and, unfortunately, much more damaging than the individual pieces. For example,

when we went to automatic espresso machines, we solved a major problem in terms of

speed of service and efficiency. At the same time, we overlooked the fact that we

would remove much of the romance and theatre that was in play with the use of the

La Marzocca machines. . . .

March 3, 2007

TALKING BUSINESS

Give Me a Double Shot of Starbucks

Nostalgia

By JOE NOCERA

Last week, this Mr. Schultz was on vivid display whenan internal memo he wrote to his top executives was

leaked to Starbucksgossip.com. . . . He pointed, for

instance, to the companys decision some years ago to

install automatic espresso machines, which, he wrote,

solved a major problem in terms of speed and service,

but also made buying a cup of Starbucks coffee a more

antiseptic experience. . . .

Robert Passikoff, president of the brand consultant

Brand Keys, said that Starbucks had taken its eye off

the brand. In trying to migrate from a coffee brand to

a lifestyle brand, there has been a certain brand

dilution. He agreed that the whole European

coffeehouse experience was no longer how people

thought about Starbucks, to the companys detriment.

http://starbucksgossip.com/http://starbucksgossip.com/


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Highest Lowest


Service and Surroundings are

most important to customersat the start of 08; Starbucks

continues to struggle in the

category they largely

shaped.

34

2008 Customer Loyalty Engagement Index:Coffee



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Year Brand Equity Index Brand Keys Rankings In-Market Realities

2006

109 Dunkin # 2 Dunkin institutes new strategy

113 Starbucks # 1 Starbucks is a thriving brand

2007

115 Dunkin # 1Dunkin 11% system wide sales.

5.2% same-store sales

109 Starbucks # 2 Starbucks share price 43%

2008

115 Dunkin # 1Dunkin Restaurant Marketer of the year.

Same-store sales 7%

107 Starbucks # 3 Starbucks closes 1,000 stores

2009

118 Dunkin # 1 Dunkin opens 1,500th store

106 Starbucks # 3Starbucks to close 600 stores. Same-store

sales 5%

In-Market Validation


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What is Starbucks Doing?


d


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Introducing New Varieties


Off i C


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Offering Coupons


Ad i i


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Advertising


A d Fi ll


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And Finally



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To create loyalty, first find out

what makes it happen . . .


then implement the right strategy,

using the right tactics!


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Starbucks

GoalEngage with customers/prospects using social media and ask whatthey would like from you

Tactics

Launched the My Starbucks Idea website

MetricsNumber of good suggestion that Starbucks hadnt thought of,% of the above that Starbucks actually implements

ResultsResults not known, but Starbucks generated over70,000 ideas in its first year of implementation alone!50 of the ideas have been implemented already.

Webgraphy


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Webgraphy

www.sladeshare.net

www.starbucks.com/

www.grain.org/

Starbucks.aspx

www.slate.com

www.consumerreports.org/

en.wikipedia.org/wiki/Starbucks

www.fbworld.com/

tutor2u.net/

www.unsnobbycoffee.com./

www.wikinvest.com/stock/Starbucks_(SBUX)

www.nytimes.com/

www.atimes.com/


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Student,Bt Maria Anca

Marketing gr.2, an.3, zii

Starbucks Mk

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