Starbucks Digital Marketing Strategy(#RaceTogether)

Company Information• Mission Statement:– To inspire and nurture the human spirit – one person, one cup

and one neighborhood at a time• Key Principle:– When we are fully engaged, we connect with, laugh with, and

uplift the lives of our customers – even if just for a few moments. Sure, it starts with the promise of a perfectly made beverage, but our work goes far beyond that. It’s really about human connection

• Overarching goal of improving the lives of their customers– Promoting healthier food and drink options literal

interpreation of improving the “human spirit” and “[uplifting] lives’

Challenges and GoalsChallenge:• Known for sweet, savory drinks and treats– Often associated with being high-calorie

Goal:• In the minds of customers, be thought of as a healthy food

and beverage establishment– Reach out and gain a new demographic of customers (healthy

eaters)– encouraging baristas to write “#RaceTogether” on coffee

cups in order to engage customers in discussions about race relations.

Theme for Strategy

• Market all of Starbucks healthy drink and food options– Low-calorie• Most food selections are under 500 calories

– “Skinny”– Reiterates company’s mission and principles• Improving lives• Good relation with customer

• 3 components to overall strategy:– Social media, Internet marketing, Mobile marketing

Target Market

• Healthy eaters• Weight-conscious individuals• Fit and athletic people• Ages 22-35– Specifically (or more geared towards) women

Part 1: Social Media

• Successful Facebook, Twitter, LinkedIn– Leverage by making daily posts referencing lower

calorie drinks and food options• Healthier ways to order (ex: “skinny”)• Offerings• Specials

• Blog posts

Part 2: Internet Marketing

• Google AdWords and Facebook Ads campaigns– Keywords to target target market– Proposed advertisement:

Delicious Drinks Without the GuiltNo Taste Lost, Only Calorieswww.Starbucks.com/skinny-coffee

Part 3: Mobile Marketing

• New app for smart phones– Dedicated solely to the promotion of healthy items

available at Starbucks• Daily healthy option, coupon, etc.

– Promote purchase or raise awareness

• Customer-wide text message program– Eligible after purchase of 3 low-calorie items– Coupon– Do not have to have a smart phone

Metrics of Success

• Social Media– Likes, comments, Tweets and Retweets, Friends,

Follows– Links clicked on

• Internet Marketing– Facebook and Google built in analytics

• Mobile Marketing– Tracking of coupon usage, app downloads, text

message program sign up, periodic surveys

Budget and Timeline• Total Budget: $1,775,000– Social media: $200,000– Internet marketing: $700,000– Mobile marketing: $875,000

• Timeline:– Launch in late winter, early spring– Launch all strategies around same time,

complementary

Pros and Cons:Not surprisingly, earlier this week, Starbucks announced in a memo to employees that it would be dropping this aspect of the campaign.And yet, with all the attention focused on the above issue, most aren’t aware that this was just one element of Starbucks’ overall Race Together initiative, which stemmed from a company forum in December where employees were encouraged to discuss their thoughts on racial tensions amid the recent issues in Ferguson, Mo., New York and other parts of the country. A number of activities are planned for the coming months, including open forums and special sections in USA Today. The company also has made a commitment to hire 10,000 disadvantaged youth over the next three years and open new stores in communities with large minority populations.

Perhaps if all of this had been communicated better, the in-store element wouldn’t have been such a fail. On the other hand, was it a fail? We can all agree that it wasn’t well-executed, overshadowing the clearly better thought out elements of the campaign. But, the company’s stock did hit a 52-week high, and the publicity (although negative) has opened the door for deeper conversations to take place elsewhere.

How we can make it betterRace Together is the latest and boldest of Mr. Schultz’s efforts to insert his company and its employees into sensitive social issues, from health care to gun rights. In addition to the cups, the initiative entails Starbucks employee forums to discuss race, special sections co-produced with USA Today about the subject, and other efforts to, in Mr. Schultz’s words, “foster dialogue and empathy and help bridge the racial and ethnic divides within our society that have existed for so many years.” The CEO said those other efforts would continue.

Talking about racism is a very sensitive issue. I think instead of directly talking this to customers is stores or online, we leave this thing to customers whether they want to talk about it or not. For diet related issue we must promote it through cross promotion, need to coordinate with some health conscious bloggers for this.