Starbucks Digital Strategy

Starbucks has a large brand recognition, so marketing on social media is something that Starbucks does well.  32.65% of Starbucks traffic comes from search engines.  This fact shows that Starbucks has an extremely successful online marketing campaign and online customer engagement. 

Starbucks has 109,959 backlinks of which only 1% are toxic. So this demonstrates the varied engagement received from customers which also increases the SEO ranking.

(Semrush.com – Backlink Audit, 2017)

SEO:  When you type Starbucks into Google, there are 11,900,000 results.  If you type Starbucks coffee there are 631,000 results.  Customers will be able to find Starbucks website pretty easily because of the brand recognition.

(Simply Web – Search, 2017)

A.      Social Media Impact: 

1.       Facebook has 35,025,013 followers and 36,589,974 likes

2.       Twitter has 11.9 million followers

3.       YouTube has 129,431 subscribers

4.       Pinterest has 297,497 followers

5.       Instagram has 13.2 million followers

6.       Google + has 2.86 million members

(Simply Web – Social, 2017)

B.      Engagement Blog comments:

Mr. Belicove, a contributing editor for Entrepreneur discussed Starbucks and their efforts to increase customer engagement:

“At Starbucks, social media is not a separate and distinct entity. Various departments collaborate online and offline to develop and implement plans designed to fully engage the community.

One such effort was Starbucks' Love Project. Starbucks teamed up with several groups--including Playing for Change, Dave Matthews Band, John Legend and U2--to create the "All You Need Is Love CD."

With every $15 purchase at participating Starbucks locations, customers received a free CD and an invitation to participate in a mass sing-along by uploading their own video to StarbucksLoveProject.com, which thousands of people did. One dollar from the sale of every CD was donated to the Global Fund to Help Fight AIDS in Africa.

Starbucks customers could also create a Love Drawing online and Starbucks would contribute an additional five cents per drawing to the fund for the first 1 million drawings submitted.

Starbucks could have simply offered the CD for sale, but it gave the project more dimension via the website, mass sing-along, Love Drawings, and special Love Drawing cups for sale in the store.”  (Belicove, 2010)

(Simply Web – Traffic Overview, 2017)

References

Belicove, M. (2010, April). How Starbucks Builds Meaningful Customer Engagement via Social Media. In AmericanExpress.com. Retrieved March 1, 2017, from https://www.americanexpress.com/us/small-business/openforum/articles/how-starbucks-builds-meaningful-customer-engagement-via-social-media-1/

(n.d.). In semrush.com. Retrieved March 1, 2017, from https://www.semrush.com/backlink_audit/#659309/overview

(n.d.). In simplyweb.com. Retrieved March 1, 2017, from https://www.similarweb.com/website/starbucks.com#social

Starbucks Content Strategy

Starbucks has several forms of content for their messaging.  They use blog posts, infographics, data sheets, images, videos, mobile apps, online games, customer reviews,  maps, infographics, and mobile payment options. 

Starbucks if offering the more for more concepts in its marketing.

Starbucks does tailor their content based on the buyer.  For instance, an online business magazine called Smallbusiness.Chron.com mentions that “Starbucks primary target market is men and women between 25 and 40.  Starbucks appeals to this consumer group by having a contemporary design that is in their advertising and décor, and works to keep its products current as status symbols.” (O’Farrell, 2017)

Their young adult target market, ages 18 to 24, positions itself as a “place college students can hang out, study, write term papers and meet people. Starbucks appeals to this consumer directly through introducing technology as soon as it becomes available, focusing on social networking and actively cultivating a “cool” image. The young adult audience grows 4.6 percent each year.” (O’Farrell, 2017)

Kids and teens are also a large part of Starbucks’ target audience.  Customers ages 13 to 17 account for 2% of Starbucks’ sales.  “Whether the focus is on the steamed milk that Starbucks’ baristas refer to as “babyccinos” or the sugary, caffeinated, whipped cream topped coffee drinks that are so popular with teenagers, kids and teens form a large part of Starbucks business.  Starbucks may not cater directly to kids but it does make its products kid-friendly, offering special child sizes for instance.” (O’Farrell, 2017)

(ColumboPage News Desk, 2017)

Starbucks arranges their content by the different stages of the purchasing process.  Online, Starbucks arranges their content to bring awareness to customers through SEO, Mobile Ads, Websites, Facebook, Blogs, and offline through billboards, newspapers, and radio in some locales. 

The consideration stage makes the content available through convenient and frequent locations, incentives, reviews, ratings, and maps.  

The decision stage involves content such as menus, infographics,  coupons, loyalty card, and mobile apps to get the customer to the purchasing stage. 

Starbucks value proposition “live coffee” is demonstrated in their various forms of digital media.  They use infographics to explain how and where their coffee comes from and the sustainable means they use to get their products from developing countries.  While one is in a Starbucks location, the baristas are very observant of regular customers and always make your day when they know your order as you walk in the door.  The environment in Starbucks offers contemporary furniture and décor.  They play up and coming artist on their Spotify channel Starbucks music.  While using Starbucks free Wi-Fi, you will be directed to Starbucks home page where there are several forms of digital content that Starbucks uses to keep their customers informed and engaged.  The different platforms that Starbucks uses are Twitter, Facebook, Blogs, Instagram, LinkedIn, Pinterest, YouTube, and My Starbucks Idea, which is a place for people to leave ideas that Starbucks considers for future company moves.

Starbucks does use different digital platforms to sell products such as e-commerce, m-commerce, and social commerce. 

References

ColumboPage News Desk (n.d.). In Bing.com. Retrieved February 23, 2017, from https://www.bing.com/images/search?view=detailV2&ccid=nFqXkB%2F9&id=273282BA57A3A35E9861EBC24153B825C4E0AA01&q=starbucks+target+market&simid=608054455794729798&selectedindex=2&mode=overlay&first=1&thi

O'Farrell, R. (n.d.). Who is Starbucks Target Market. In Smallbusiness.chron.com. Retrieved February 23, 2017, from http://smallbusiness.chron.com/starbucks-target-audience-10553.html

Starbucks Value Propostion

Starbucks uses several digital tools and platforms to promote and market their services.  Here are some of them:

      Social Media including Facebook, Twitter, and Foursquare

 .          Mobile Application which includes a mobile payment app for iPhone, Android, and Blackberry

3.      Starbucks Digital Network allows customers to use free, unlimited Wi-Fi in its stores.  

     

      In a partnership between Starbucks and Yahoo, Starbucks delivers premium content on their web page.  When a customer is in Starbucks stores, they can use the free Wi-Fi network.  When logging on to the Wi-Fi, you are led to a landing page, and then greeted with a landing page for the Starbucks Digital Network where that premium content is available.  (Adkins, 2017)

(Christian, 2014)

Starbucks Value Proposition and its brand strategy are centered on the “Live Coffee” mantra.   They make the experience of drinking coffee memorable.  There are several methods of how Starbucks does business that explains why Starbucks is so successful. Starbucks created value in the “process of the coffee drinking experience.  Starbucks placed value in their customers first in its value proposition.”  (Moon, 2017)  

Starbucks success is also because of the atmosphere that they create by making Starbucks a place where customers can enjoy their social interactions.  Drinking coffee has become more than just drinking coffee; it’s also about the experience of enjoying coffee.

One of the components of a value proposition is quality.  Starbucks puts value in the quality of the coffee used and ensures that their “coffee is grown under the highest standards of quality, using ethical sourcing practices.”  (Starbucks.com, 2017)  Starbucks creates an inviting atmosphere and a quality coffee.

Another component of Starbucks value proposition is service.  Starbucks trains its employees on how to connect with the customer by doing such things like smiling and greeting regulars with their names.  “Starbucks places the customer and the service delivered to the customer above everything else.” (Moon, 2012)

Starbucks is also successful because of the value they put on their employees.  The company has several philanthropic endeavors where they help children, veterans, the farming community, and many opportunities to help overseas.  Starbucks only uses ethical and environmentally safe methods in harvesting their coffee beans.

Starbucks mission is “to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.” (Starbucks.com 2017)

References

Adkins, A. (n.d.). Starbucks & Its Use of Technology. In Chron. Retrieved February 13, 2017, from http://smallbusiness.chron.com/starbucks-its-use-technology-28272.html

Christian, A. (2014, October 7). IMD Starbucks Delivering on Service. In Slide Share. Slide 18 of 52 Retrieved February 14, 2017, from http://www.slideshare.net/AlexanderMartinusChr/imdstarbucks-delivering-on-service

Moon, Youngme. "Starbucks delivering customer service." WordPress, Harvard Business School Professor, May 2012, 

https://businesstrueormyth.files.wordpress.com/2009/05/m512_starbucks_alkismarangos.pdf. Accessed 16 Feb. 2017.

Starbucks Company Profile, https://www.starbucks.com/about-us/company-information/starbucks-company-profile. Accessed 16 Feb. 2017.

Starbucks and Digital Marketing

Starbucks

Starbucks opened its first store in 1971.  From the beginning, Starbucks set out to be a different kind of company. One that not only celebrated coffee and the rich tradition, but that also brought a feeling of connection.

Mission Statement

“Our mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time.”—Starbucks

Starbucks is passionate about coffee.  They want to bring the coffee experience to everyone by celebrating coffee and its deep tradition. 

Starbucks offers a selection of premium coffee and teas, along with fresh pastries and healthy choices for snacking.  Starbucks makes sure that everything they do is through the lens of humanity.  Starbucks ensures the highest quality coffee in the world.

Starbucks serves millions of customers every day.  They have over 24,000 retail locations in 70 countries.

Starbucks Values

“Creating a culture of warmth and belonging, where everyone is welcome.

 Acting with courage, challenging the status quo and finding new ways to grow our company and each other.      

 Being present, connecting with transparency, dignity, and respect.

 Delivering our very best in all we do, holding ourselves accountable for results.

 We are performance driven, through the lens of humanity.”—Starbucks

Starbucks offers a range of exceptional products that customers enjoy in our stores, at home, and on the go.  Starbucks offers coffee, tea, handcrafted beverages, merchandise, and fresh food.

Starbucks went public on June 26, 1992 at a price of $17 per share and closed trading that first day at $21.50 per share.  Starbucks prides itself on being able to strike a balance between profitability and social conscience.  Starbucks practices responsible purchasing practices, supporting farmer loans and forest conversation programs.

Starbucks Fiscal Summary

Starbucks believes in the importance of caring for our planet.  They are working to reduce our environmental footprint through energy and water conservation, recycling, and green construction.

“Starbucks Corporation (NASDAQ: SBUX) is the global behemoth of retail coffee drinks. Starbucks has more than 22,000 stores in 67 countries, steady revenue growth, increasing revenue growth, earnings per share (EPS) and a rising dividend. It is a growth stock with a price/earnings (P/E) ratio of 32.21 and a 1.34% yield. New growth is expected from an evening menu plus beer and wine sales.”

Starbucks primary target market is men and women between 25 and 45.  This primary market accounts for approximately 49% of its total business.  Starbucks primary customers are usually affluent, well educated, and white-collar urbanites.  Starbucks has found a growth opportunity in the younger, less educated and low-income consumers such as college and high school students.  Starbucks target market earns an annual income of over $50,000 and they are usually tech savvy individuals.

Mission Statement

To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. 

References

Whiteside, E. (2015, December 31). 4 Best Coffee Stocks for 2016. In Investopedia. Retrieved January 22, 2017.