You are on page 1of 44

Social Media Showcase Starbucks

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

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

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

Newsletter to keep fans activated

Questionairre to get feedback from MyStarbucks Idea users

Follow up on MyStarbucksIdea.com

Sept 1. 2009 Facebook fan page with photos and messages

Oct. 20. 2009 Facebook fan page with photos and messages
9

Twitter.com/ starbucks to engage people real time

10

YouTube Channel to show new openings and background info

11

Not supported by Starbucks!

12

Buy the instore music online!


13

Starbucks Card personalization

14

Actively participate updating the facts

15

Starbucks V2V social responsibility network

Engaging social like minded Starbuck fans is different from their own corporate social responsibility program

16

Starbucks V2V social responsibility network

17

Starbucks corporate environmental social responsibility

18

Starbucks & RED productline to do good

19

Update Sept 2009: Starbucks 2 iPhone Apps


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!

App #1 MyStarbucks StoreLocator Bookmark favourite locations Search for opening hours and amenities Including menu and nutritional info drink builderdisplays nutritional info based on selections made 20

Social Media B-t-B Ingredients

21

B-t-B & Corporate function using social media

22

Various LinkedIn groups

Some facilitated by Starbucks

33 (Jan 6, 2010)

Update Oct 14. 2009 recruitment in Social Media by Starbucks

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

Update Oct 18. 2009 recruitment in Social media by Starbucks

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

25

Consumer respons

27

The Starbucks Loyalty Story

Brand Keys, Inc. 2010

28

STRATEGY How Do They Buy in the Category? 2006 Ideal Coffee Provider 1. Loyalty Drivers in order of importance.
High = Differentiator

2. Percent contribution to future purchase/loyalty. 3. Customer Expectation level for each Driver.

140
Customer Expectation Levels
129

#3: Wheres the opportunity for greatest differentiation?

130
118

125

120
110

110

100

3
Low = Table Stakes

Location & Value

Quality & Taste

Service & Surroundings

Variety & Selection

Ideal
Percent of Contribution Highest

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


Lowest

Loyalty Drivers Order of Importance

#1: How do consumers view the category?


Brand Keys, Inc. 2010 29

TACTICS Percent-Contribution of Individual ABVs Driver #2: Service & Surroundings (28%)

Brand Keys, Inc. 2010

30

2006 Customer Loyalty Engagement Index: Coffee


Starbucks dominates in the driver with strongest customer expectations.
Customer Expectation Levels

Loyalty Drivers Order of Importance Highest Brand Keys, Inc. 2010 Lowest

31

What Happened?

Brand Keys, Inc. 2010

32

Text of Starbucks Memo


From: Howard Schultz Sent: Wednesday, February 14, 2007 10:39 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.

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 when an 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.
33

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. . . .

Brand Keys, Inc. 2010

2008 Customer Loyalty Engagement Index: Coffee


Service and Surroundings are most important to customers at the start of 08; Starbucks continues to struggle in the category they largely shaped.

Customer Expectation Levels

Loyalty Drivers Order of Importance Highest Brand Keys, Inc. 2010 Lowest

34

In-Market Validation
Year Brand Equity Index Brand Keys Rankings In-Market Realities

109 2006 113 115 2007 109 115 2008 107 118 2009 106

Dunkin # 2 Starbucks # 1 Dunkin # 1 Starbucks # 2 Dunkin # 1 Starbucks # 3 Dunkin # 1 Starbucks # 3

Dunkin institutes new strategy Starbucks is a thriving brand Dunkin 11% system wide sales. 5.2% same-store sales Starbucks share price 43%

Dunkin Restaurant Marketer of the year. Same-store sales 7% Starbucks closes 1,000 stores Dunkin opens 1,500th store Starbucks to close 600 stores. Same-store sales 5%

Brand Keys, Inc. 2010

35

What is Starbucks Doing?

Brand Keys, Inc. 2010

36

Introducing New Varieties

Brand Keys, Inc. 2010

37

Offering Coupons

Brand Keys, Inc. 2010

38

Advertising

Brand Keys, Inc. 2010

39

And Finally

Brand Keys, Inc. 2010

40

To create loyalty, first find out what makes it happen . . . then implement the right strategy, using the right tactics!

Brand Keys, Inc. 2010

41

Starbucks
Goal
Engage with customers/prospects using social media and ask what they would like from you

Tactics
Launched the My Starbucks Idea website

Metrics

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

Results
Results not known, but Starbucks generated over 70,000 ideas in its first year of implementation alone! 50 of the ideas have been implemented already.

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/

Student, Bt Maria Anca Marketing gr.2, an.3, zii


44