Campaign

Survey Result

Recommendation

Industry

Today’s Agenda

1. Coffee Industry Nowadays – Sally 1-52. Background of Starbucks Fair Trade Campaign 6-10 Kay1. Two-Phrase Evaluation Model 11-142. Fundamentals of campaign 15-18 Carrie3. Current Marketing Strategies 4. Survey Result and Analysis5. Recommendation. 19-21Hillary

Introduction

Hong Kong Coffee industry

Introduction

Campaign

Survey Result

Recommendation

Industry

What your reference here?

What is “Fair Trade Campaign”?

Fair Trade Coffee supporters Fair Trade Coffee supporters

Fair Trade certified criteria: paying a minimum price per pound of $1.26 (normal market price is around $.60-$.70 per pound), providing much needed credit to farmersproviding technical assistance such as help transitioning to organic farming

Fair Trade campaigns are used to promote their corporate social responsibility image

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Industry

Introduction

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Survey Result

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INTRODUCTION-The Company Profile

1. Established in 1971 in Seattle, U.S.2. Mission: to inspire and nurture the human

spirit – one person, one cup and one neighborhood at a time.

3. Products: coffee, handcrafted beverages, merchandise, fresh food, consumer products

4. More than 15,000 stores in 50 countries, 115 stores in Hong Kong

Industry

Introduction

STARBUCKS-Being a Responsible Company

Introduction

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2011

A Demand Pull Fair Trade Campaign

Year 2000 Kick-Off of the program

Year 2000 Kick-Off of the program

Met a lot of Criticism for 34,000 kilograms of

Coffee Brought

Met a lot of Criticism for 34,000 kilograms of

Coffee Brought

Year 2002 2% of Total Coffee Bought

Year 2002 2% of Total Coffee Bought

Year 2010300 Million of Fair Trade

Coffee Beans Bought

Year 2010300 Million of Fair Trade

Coffee Beans Bought

See How Starbucks is Doing Now

Timeline for Fair Trade Campaign

Introduction

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No foundation Level Not sustainableNo foundation Level Not sustainable

No Promotion Level Not cost effectiveNo Promotion Level Not cost effective

Still Remember Our Evaluation Model?

Introduction

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Mr. Joshua Begbie, Project ManagerCommunity Coordinator

Interview with NGO

1. Starbucks improving fair trade effort2. Largest purchaser of fair trade coffee beans3. Reluctant to buy more4. Adverse effect on profit margin

Foundation LevelWhat concrete measures the company

Has done to help promote fair-trade

Fair Trade Initiatives

Starbucks Pacific Coffee Delifrance

Overall World’s largest fair trade purchaser

Hong Kong based founded in 1992

Seattle Coffee Style

Singapore based entered HK at

1987French Coffee

Style

Corporate Commitment

We aim to have 100% of our coffee certified or verified by an independent third party.

As an initiatives under environmental

support.

Data Deficient

Customer Impression

63% 6% 2%

FT Coffee beans

40 million pounds in 2009

Data Deficient Data Deficient

Introduction

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Still Remember Our Evaluation Model?

Introduction

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Starbucks Share Planet Program

Introduction

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Methodology

Research Method:Face to Face interview and online survey

Interviewee Number:150, mainly undergraduate students ranging from 18-25

Research Objectives:

Find out the attitude towards Starbucks fair trade campaign

How effective the campaign communicate the message

How it finally induce purchase behavior

Evaluation CriteriaPotential Limitations:ProfitSales volumeMarket Share

Introduction

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Survey Result

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欄 1 欄 2 欄 3High concern for third world

Low Concern for third world

Never buy Fair Trade 51 (57%) 58 (97%)

1-4 times a month 39 (43%) 2 (3%)

Survey Result - Awareness

Care about the third world poverty problem Does not view Fair Trade is important

No Awareness of the fair trade campaign Does not understand how fair trade helps

Introduction

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Survey Result – Brand Image Improvement

Many people thinking Starbucks as a social responsible company due to its waste recycling and organic coffee campaign

63% people think Fair Trade has enhanced Starbucks image as a social responsible company

Makes changes

Survey Result – Purchase Behavior

Potential Promotion Strategies

• Adhere to the promotion philosophy of Starbucks• Emphasize customized, personal channels instead of a mass channel

Most popular suggestions:• Free tasting and experience• TV Advertisement/ Program• Advertisement in Stores• Word of Mouth

Conclusions and Recommendations

Conclusions and Recommendations

Conclusions and Recommendations

Conclusion

Recommendations