Starbucks a renowned coffee house of world opened its first store in year 1971. It started with a single store in Seattle but now it has 24000 stores in 70 Countries (Starbucks, 2017). Starbucks comes under the 35 world’s most valuable brands (Forbes, 2017). It has positioned itself as a premium coffee brand. The significant growth of it depends on many factors like how company reacts towards its strength, weaknesses, opportunities and threats. After the SWOT analysis of the company it is easy to create e marketing strategies which include analyses of marketing mix so that company can position itself in the target customers of the prospective segment perfectly. It is very essential to monitor and control the e marketing strategies so that effective utilization can be done of these strategies.
Source: (Starbucks, 2017)
Starbucks is committed towards its diversity, convenience and involvement in everything they do. In 2013, the Starbucks collection was about 15 billion. The worldwide recognized brand has written its prosperity story by constituting exclusive Starbuck experience in its store and online. In present more than 90% of Facebook users are Starbucks fan. Company has more than 10 million users paying through mobile payment system. Overall Starbucks drives up near to 35 million in different brand interaction through web drives each month. In July 2008, Starbucks income shrieked by 26% and it’s in store sales volume were negative for first time ever in history. During this time Starbucks first time launched its website with name My Starbucks Ideas. Through this online network community Starbucks consumers shared their coffee drinking experience by sharing ideas, suggestions and even grievances. Starbucks initiated implementing changes and started up with new innovation on customer feedback basis. After publishing this website Starbucks achieved massive success and involvement of customer grew up unexpectedly.
Starbucks came up with idea of providing Wi-Fi to its customers with network named Starbucks Digital Network. It was a partnership between Starbucks and Yahoo, delivered the best content on news, entertainment and so on from sites USA today, WSJ, ESPN and Nick Jr. Wi-Fi network of Starbucks allows its customer to check in with Foursquare and then log in to Starbucks card for more (Forbes, 2016).
Result of this was Starbucks was named the world’s most famous communal media consumer brand on basis of its followers on YouTube subscribers, Facebook fans, and so on. Starbucks created digital innovations as its strategy to add to customer experience. In 2008, Starbucks created ‘Starbucks Digital Venture’ for digital drive. This association is presently working on more than 100 exclusive projects. The most important role is played by digital media in leading Starbucks to top position, once said by Starbucks. The digital media which makes everyone to remain connected gives opportunity to create an authentic relationship with our customers. It helps to connect with customer with in very interactive and ascendable way.
Starbucks started building its story by delivering two important practices: online digital practice and in-store practice. Website main page is first impression for every brand. Starbucks serves this in best way as possible by providing simple navigation for giving right direction. On its website, the top bar displays very easy and clear navigation (Pymnts, 2017). When we have to move for other information, a very candid navigation helps us to find right direction. For new people who know less about coffee, Starbucks helps them by writing innovative content to speak about coffee tales. Once quoted by CEO of Starbucks: Whatever thing we do by digital way is for increasing and creating connections with customers. Starbucks is still creating more and more new ways for improving its web experience by creating new channels.
Online discount offer: Starbucks provides online special discount on his website time to time. It gives latest event and deals news to its customer by updating its website under promotions and deals page menu. Starbucks also launched an affiliate program through its website to engage its customer. To avail or participate in affiliate programme customers just need to sign up under Starbucks affiliate programme. Starbucks also offers discounts through its coupon’s for fulfilling the need to its customer who does shopping online. It provides product online like Syrups, Tea, Whole Bean and grounds, Cold brew pitchers pack and so on.
Online services are not in form of only products selling but also ease to access to website and its various supporting blogs, article, search engine optimization and many more. Starbucks blogs help company to retain its customer as they create a very influential connection with their customer in real life (Ahuja, 2017). Starbucks blog are easy to share through social media and they can be easily subscribed through emails. One more important feature of blogs by name “Ideas in Action” is very interactive as the comment posted by any customer gets a reply compulsorily in very short span of time. Another way of attracting customers is its homepage of website as the page is nicely optimized and elegantly arranged for new comers as well.
Other services are Email support; Starbucks has a very creative and quality design in their Email support. It also provides useful and relevant information to its customer (Albee, 2009, pp 147-180). Starbucks presents a great way to help or advice its customer through email support.
Starbucks app: No other company is enabling to compete to Starbucks in leading mobile, digital and loyalty. Starbucks is leader in mobile app payment and customers are encouraging Starbucks mobile to be embraced as a way of payment. It now presents more than 7 million mobile transactions. In U.S over 13 million customers are actively using mobile apps. “Schultz said that they continue to have huge customer acceptance and adoption of mobile payment technologies”. Starbucks mobile app is as ease to people as no need to interact with anyone and no need to stand in large queue ( Schultz, 2011). The app itself accounts for a quarter sale of total in store. Starbucks chat box allows placing order via voice directive, messaging interface, increasing customer loyalty and so on. Starbucks have offered personalised offers directly in front of customer via chat or email (Agarwal, 2017). Starbucks is expected to rollout on recommendations given by customer during mobile order and pay checkout. By this company believes after sale engagement with customer for growth of company. With Starbucks reward programme, customers are finding enhanced value when making huge purchases. This creates better market flexibility. The dramatic drift in its customer’s habits is amending the ways Starbucks thinks about its operation and appealing it to amend with supplementary mobile services. Company also modifying app to add some personalised elements which allows the app to access your favourite order (like half cup cappuccino with ice-cream, please), and give suggestion what might fit with it and many more.
Everyone knows about Starbucks in-store experience s just awesome with lovely fragrance, pleasant smell, and decorative display of food (Newyork times, 2006). Now, how Starbucks serves its customer online. Starbucks serves its most ardent fans specially by offering special deals to them (Trefis, 2016). Fans are more attracted towards Starbucks due to their consistency and long term approach towards present customer rather than only acquiring new customers. Loyal fans are more anxious to share their knowledge with their acquaintances through their social networks. Starbucks always looks for new techniques to serve better to its customer. They do it by serving unique beverages, and coffee (Forbes, 2016).
Starbucks also offers personalised initials drink and Starbucks reward programme which facilitate customer to earn bonus for Starbucks grocery store products. It also contributes in motivating volunteerism to clean society, collecting donations to help victim. They also give customers a generous reason to buy product which is beneficial for all. In past more innovations in 2001 Starbucks launched its card with name Starbucks cards issued inUS and Canada. Approximately 5 million active card holders, Starbucks claims that one of 7 customers uses card. Card holders have benefits like complimentary coffee refills, flavoured syrup, soy milk, and so on. Members eligible for rewards are also offered free drink on purchasing roasted coffee beans of Starbucks. And company also purchasing new espresso machines, introducing new type of blended coffee and contract to acquire the Coffee Equipment Company which will be providing services to selected Starbucks stores. Making research on customer engagement by online media by Starbucks has been a very learning experience.
It can be said that Starbucks is the leader in how to engage its customer. “Listen to your customers”, this is lesson which can be learned by Starbucks as this helps in maintaining its trustworthy and honoured customer. Starbucks also acknowledge its customers by reviews or ideas, which they implement and turn them into money. Due to huge involvement of its customer some of the Starbucks lover even got married in their favourite coffee shop, often seen on social media like #Starbuckswedding (Bowdin, 2011).. Moreover Starbucks invites its lovers for getting married. Starbucks also greets its customer on their birthdays as well as provides nutritional product information. They even tell which food will prove best with which coffee.
Roastery: It is also called as Starbucks Reserve Roastery, which offers a different coffee experience in which customers can observe newly roasted beans enter, chat with baristas and coffee experts, enjoy its variant beverages and menu, and delight with brewed coffee in numerous ways. Howard Schultz, CEO of Starbucks said that, what she wanted to try and accomplish was just build unique sensory experience while having coffee in cinema, drama, thriller and so on. This Roastery helps Starbucks to engage with true and passionate coffee lovers (Whitten, 2017).
These results in elaboration of Starbucks brand message. It becomes more accurate, reliable and impressive, when it comes from the side of customers not from company or brand.
Starbucks is famous for many things like delicious coffee, friendly baristas, and wide range of its branches in America. Its due to their social media strategy, they are crushing on social media. Some of the recent statistics of followers are:
Facebook:
Interestingly, social media management team of Starbucks does not post any update on Facebook frequently. But whenever any post come it so striking and adoring that anyone cannot resist of admiring it. It creates a neutral balance between tips for cappuccino lovers, contests and delicate sales memo to its customers (Meiners, 2011).
Twitter:
Starbucks has very captivating and indigenous approach towards twitter updates. They do it surprisingly rather than all the time. Fans who are followers on twitter gets surprise on latest news and update (Strahm, 2006). Their content is not different but they use twitter to approach customers for discussing about their experiences about Starbucks. All tweets are based on Twitter users who have conversed with Starbucks on their own timeline, sometime it may be a complaint, feedback or review. The social media team of Starbucks analyse the account many times a day to motivate dissatisfied customer to be in contact with company to remove their complaints (Ouesenberry, 2016). It’s a very unconventional but unique approach to deal with customer complaints before they move out from Starbucks.
Pinterest:
Starbucks has best Pinterest accounts in comparison of others. It has only 7 boards but they are very attractive which sourced from other party sites. Starbucks also maintains Pinboards featuring eye-catching, tea culture and so on.
Instagram: Starbucks Instagram account is a collection of very candid images for coffee lovers that they cannot resist of from appealing.
Google+:
Usually where companies ignore updating Google+ content, but Starbucks has more than million followers on Google+ as well.
Advertising:
Starbucks also engages its customers in promotion through their involvement like sometime ago it initiated an ad campaign by putting its posters in 6 major cities of U.S. It involved customers through social media to click a picture with poster and tweet it, and winners of that campaign received gift worth $20. The value of interest it generated was more than the original expense of advertisement. Starbucks commented on this story that e marketing campaign was more successful than planned.
StarbucksIdea.com:
It’s a Starbucks own version of social version where customers are allowed to share their opinion and ideas. This is one more way through which fans interact with Starbucks. They make note on ideas, opinions and thoughts posted by customers. Approximately 5 lacs people have just posted till now. Their comments on replies by customers are so positive and encouraging convincing a customer to come back. Starbucks also created one initiative for people to post their “how they met” story on MyStarbucksIdeas.com and chance of winning a free coffee for a year. Starbucks customers are allowed to vote as well on ideas posted in site (Melody, 2013). This is inviting customers during decision making of Starbucks to participate.
You tube:
Starbucks allows people to implant its video anywhere they want on web. Many companies don’t give permission for this as fear that their videos might end up on places where they were reluctant to be correlate with. This strategy also Starbucks took in positive way and got more exposure than expected. The content of videos is both commercials and informational explaining the ideas of different coffee they originate from. Thus, allowing Starbucks to relate with more people (Bekoglu, 2016).
R.A.C.E: A framework for E-marketing of Starbucks
It is a planning framework which can be applied on digital marketing practices that helps in developing customised and quick strategic approach to needs of business (Booher, 2016).
R.A.C.E stands for:
R: Reach target audience through social media, blogs, publisher and so on-
It includes reaching to public and customers through smart search optimization, social media advertisement, public relations, media outreach, press releases and paid ad campaign.
A: Act on strategy via website, interactive tools, and community-
It says achieve the target decided through strategy with help of sales process refinement, Email marketing, live sales call, Newsletter, Smart forms and so on.
C: Convert lead generated into sales with help of e-commerce-
A planned Strategy can leave a drastic effect on lead conversion rate, it include factors like A/B testing, conversion rate practices for digital media, auditing websites.
E: Engage with all customer with help of content marketing-
The aim of this is to capture attention and in a attractive way that generate emotions. It is done with help of blog marketing, video marketing, White papers and storytelling web copy.
E marketing strategy which Starbucks can adopt is live video streaming:
Nowadays streaming is employed in many ways which differ from its existing media like films, television and so on. Its properties allow users to broadcast personal space with hep of web camera and Internet. Live video streaming is nowadays very popular on social network as well. It can be done through various media like Facebook, Instagram, Twitter and many more (Aldred, 2017):
Specific: Specific gives answer to questions like what is to be done by applying a strategy, gives the result of work to be done and so on.
Measurable: As measurable tells when it has been achieved and how it has been achieved. It establishes the project metrics for success in advance.
Achievable: Agreement with all the stakeholders what the goals should be. There should be agreement that the opportunity defined will be achieved.
Realistic: Within the availability of resources, knowledge and time. Also ensures that proper knowledge, skills set, and resources required are adequate.
Time scaled: Enough time to achieve the goal but not extra time. Also defines how much budget available and defines if flexibility available.
Reference to target audience
A refrence of SMART objective to target audience of
Specific: Through live video streaming on different platforms Starbucks can target youngsters and increase their viewers on website, increase followers, huge online sale and so on (Osterloh, Frey, 2002). It clarifies erroneous assumptions and removes ambiguity. Objectives should be clear before launching a new strategy, and they should clearly define in advance that what objectives will be achieved and what will not. It mainly focuses on searching aim thus reduces erroneous assumptions.
Measurable: As measurable tells when it has been achieved, so live video streaming by Starbucks is a proposed strategy it can be achieved in upcoming future (Stimpson, 2013). As this strategy will measure more market share of Starbucks and increased popularity amongst youth. And for measuring its success Starbucks can keep note on no. of views on each video uploaded on different social sites like Facebook, Instagram, Twitter and so on. Objective should be measurable before adopting a new strategy. They should not be too ambiguous in terms of measurability. It mainly defines against which measure the objective will be evaluated and if either standards are achieved or not (Richman, 2006, pp 62-75).
Achievable: Starbucks is already having high popularity measure on social media. It need to create only few resources for its new strategy, only the thing to do is going live for promotions, products and so on to attract customer to come for it. Mainly it depends on the factors in existence at time of launching strategy. According to Alexander (2008) factors that affect strategy as micro factors are agreeability of employees, change in policy and so on. Macro factors are acceptability by customers, economic factors and so on. As on all these factors Starbucks is already working hence it’s an analysed achievable goal.
Realistic: Before a goal becomes unrealistic it needs to be analysed on its realistic measures. It also helps in preventing overrun on cost and hence ensures that objective will be achieved. In case of Starbucks live video streaming is realistic (Shah, & Dias, 2009, pp 50-70). Going live and promoting products, offers, and services is trending nowadays. For Starbucks it is a more convenient as youngsters are all time connected through social media and can be influenced easily for preferring Starbucks over others. This strategy can leave long term effect on target audience as anything seen live is more impressive in comparison to only reading.
Time scaled: Timescale for this strategy is 1 year as it is enough time to check its popularity and share in market (Rennie, 2004 ).
Experts hiring by Starbucks: Starbucks should hire more experts to implement the strategy successfully. Experts can give better recommendations on how to achieve the target in given time. With help of experts efficiency and effectiveness can be measured (Kotler and Keller, 2011).
Promotion of broadcast by Starbucks: Starbucks should promote for its live broadcast as well through posting teaser videos, sign up reminders of live telecast and so on (CBAA, 2017). By this the target audience will be more attracted towards Starbucks. As live video keeps the public attracted continuously and people can interact directly with company. For engaging more viewers, Starbucks should promote when they are going live, on which network, and what they will going to be discuss. This helps in reaching maximum people and thus fulfilling its objective to become more popular and getting more viewership (Vahl, Haydon & zimmerdon, 2014).
Should have Questions and answer format – In this company solves the queries raised by people. This technique helps to communicate to viewers directly with company. Through this company can resolve the doubts related to services of company hence becoming more popular in social networking.
Informational videos -like launching promotional offers, schemes, products and so on. Through this company can actively or quickly ask youngsters to participate and avail benefit. These types of videos attract more youth to connect to Starbucks as they can avail benefit directly only by watching video (Brame, 2015). Due hustle bustle in youngsters life they do not have time to scroll through each post and this complaint of youths can be removed as watching a video of 2 minutes can enhance their knowledge about Starbucks services and products.
Face to face Interviews – This can attract youngsters as questions or queries raised by them can be solved instantly. Many a times youths deviate to other brands as their questions raised to company is not answered properly. Through live video streaming in face to face interview form can help Starbucks a lot to raise their viewership as the queries raised are solved instantly.
Behind-the-scenes-peeks- This is very popular nowadays in which baristas can show they prepare coffee or snacks in delicious way for their customer (Schultz, 2011). By this way the youngsters can feel more connected towards Starbucks because seeing live the making of products influence the youngsters to stick to existing brand only.
Do not deviate from the point: It does not matter whatever the format Starbucks adopt for its broadcast, it should not deviate while streaming online from topic. Deviations include unnecessary information, teasing audience with words “more info in last”, raising questions that reveal information gap strategically and so on.
Acknowledge audience throughout video: This measure can be achieved by playing the video consequently, such as demonstrating different uses of one product giving all in one solution.
Viewable after telecast: Even after completion of live broadcast the video should be viewable for audience who missed it. The video should be posted on different social network like blog, website and so on. Starbucks should advertise the video wherever possible so that who do not use such online platforms can also be benefitted through other channels.
When talking about Google analytics, we generally look for quantity of public company is attracting. Other statistics are as follows:
Organizing control on site- The control of site involves following statistics:
This can be done by writing all the statistics of viewers on excel sheet every month. This method help in finding out which marketing strategy proved superior and which strategy need to be dropped. For more analysing on this criteria reviews and comments by people are also noticed. And resolving any complaints and queries online are treated as more good genuine nowadays by customers. Because more than 80% consumers trust online reviews given by customers and feedback received.
After collecting the information required for analysing e marketing strategy, the company will be enable to make improvement or review its performance during live video streaming. If the customers are attracted then strategy will gather more appreciation and will encourage uploading more videos or live streaming.
Measure the response received after applying strategy: In this method company need to evaluate the amount of response it received just after applying strategy and Money Company earned after deducting cost (Epstein, Yuthas, 2007, pp 10-25). The company strategy should deliver an extra ordinary return as less than that will be considered as insufficient.
Conclusion:
Starbucks has continuously increased its e marketing budget over the years. For more facilitation it has launched mobile app payment system as well for more offers. Starbucks for its fans is announcing some or other schemes continuously to retain them in Starbucks only. Starbucks is holding events like marriage, birthday parties and so on as well for its fans. Starbucks is over engaged on social media hence popular amongst youth for its post over different social network. SMART objectives defined above are apt for Starbucks as it keep on finding out its loopholes and prepare strategy to remove them. Starbucks due to its efficient management keeps people always attracted towards it. Starbucks also provides delivery of its online store product to its customer at door step. It always greets its customer whenever they contact them. They provide online help, support, chat, and so on to its customer on its website and social media.
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