Starbucks: Brewing Customer Experience through Social Media

            
 
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Case Details:

Case Code : MKTG303
Case Length :18 Pages
Period : 2008-2012
Pub Date : 2013
Teaching Note : Available
Organization :Starbucks Corporation
Industry : Beverages, Specialty Retail
Countries : USA, UK, Global

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.



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Excerpts Contd...

Moving Ahead

Starbucks also had a presence on YouTube. It used YouTube to upload videos about its brand, advertisements, videos of its voluntary activities, its beginning, events in its history, origins of different coffee blends, etc. Starbucks allowed the videos that it uploaded on YouTube to be embedded anywhere on the web. Starbucks also had a presence on Instagram, which was a smartphone app that allowed users to share photographs in a stream. Through Instagram, Starbucks posted pictures of its products, outlets around the world, in-store ambiance, coffee tasting sessions, new product ideas, logo ideas, etc...

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

Social Media to Improve Customer Engagement

Starbucks engaged with customers in multiple ways through social media. This ranged from serious issues like World AIDS Day or having fun on the April Fool's Day, introducing new products, increasing awareness about the brand, gathering ideas, holding contests, etc. Instead of using social media as an advertising platform, Starbucks used it to provide customer experience and to build relationships. According to Annie Young-Scrivner, global CMO, listening to customers and engaging with them “has allowed us to stay very fresh".

Starbucks promoted events like a 'Free Pastry Day', in 2010 during which customers who downloaded coupons from Facebook were given free pastry. This campaign attracted one million customers to Starbucks stores on a single day. To make the baristas ready for the day, they were trained on redeeming coupons that were printed from the website, and digital coupons sent through mobile phones...

Conclusion

In 2010, Starbucks became the first consumer brand to have 10 million fans on Facebook and was ranked No.1 in online engagement. It also reached the milestone of becoming the most tweeted brand. Analysts pointed out that the Starbucks experience, which had been lost in the rapid expansion of Starbucks had been brought back by the social media initiatives. They also said that Starbucks continued to provide its unique experience to customers even if they were away from the retail location, by remaining connected with them through the social media...

Exhibits

Exhibit I: Phase One - Measuring Social Media Engagement
Exhibit II: About Social Media
Exhibit III: Starbucks - Selected Financial Data
Exhibit IV: Starbucks - Quarterly Financial Information


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