Coffee Presentation


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Coffee Presentation

  1. 1. Born: Seattle Born: Quincy, MASize: 17,000 Size: 9,700stores in 55 stores in 31countries (11,000 countries (6,700in the US) in the US)Starbucks sells Dunkin sells anan estimated 4 estimated 1.5billion cups of billion cups ofcoffee per year. Source: coffee per year. Starbucks vs. Dunkin Donuts: A Social Media Free-For-All Mike Schneider
  2. 2. What do Consumers Think? General Sentiment (pos.) ● Gift cards popular; strong promotion ● Coffee itself makes up 25%, with other drinks making up an additional 10%, meaning that variety is somethingContents● customers value ● Fix/treat (as in coffee fix makes up 11% and positive adjectives make up an additional 10% ● Free and drink (mostly referring to seasonal drinks) make up 17%, meaning that customers value special promotions ● Sample size much smaller (3,398, as opposed to 63,258) ● 50% Coffee refers primarily to like of the taste (combined with delicious and best coffee makes up 54% ● Customers value variety (offerings besides coffee make up 27%) ● Promotions create positive response (5% each for gift cards and coupons)
  3. 3. What do Consumers Think? source: source: ● Customers from both brands value drink variety, promotions taste preference is subjective, even if it is both the largest praise and complaint for both companies. ● Dunkin Donuts has more complaints about quality while Starbucks has more complaints about price. Both have complaints about convenience.
  4. 4. What do Consumers Think? General Sentiment (neg.)● Convenience complaints (line, slow, mess up order, baristas, issues with gift card): 28%● Principle issues with coffee/taste/drink: brand preference and quality (26%)● Price (expensive/overrated/money): 20%. Largely belief that the brand is over-priced● Whereas many felt that Starbucks was overpriced, most complaints just say that Dunkin is “pricey”. Fewer complain of DD price vs Starbucks● Convenience issues (too late, not have donut, mess up order, line): 21%● Quality/preference issues (taste, doughnut, coffee, tea): 70%
  5. 5. What do the Brands do?Dunkin Utilizes multiple Facebook apps and contests Fan of the Week:“Post your photo to our Wall and each week, well ● choose one fans photo to be our profile pic.” The online DD Perks program helps support patronage and loyalty ● Get Hired Like a Boss interactive video: takes facebook pictures and ● advertises angus steak and egg Free CBS Live access for the month of march ● enter email―they get to keep it Presence in the Social Sims game ● Turbo shot game―to win a free DD turbo shot of espresso if a player ● can get on the leaderboard DD Madame Tussauds sweepstakes―discounts and chance to go to ● NYC Starbucks just has apps for the Starbucks card, “Starbucks around the ● world” a Starbucks job search app
  6. 6. What do the Brands do?Facebook: Not only a large difference in the number of fan base but inthe overall approaches● Starbucks has separate pages for local stores and for beverages, meaning lower level of centralization; conversations occurring in many places.● Local store pages are not maintained as fully as that of the corporate page.● Has no interactive tools to play and interact with the brand.● Tone is friendly, but somewhat corporate and most posts have a clear purpose (e.g. holidays and promotions) Fig. Sbux has millions of fans but the overall quality in engaging customers is in question. ● Dunkin Donuts has only one, central brand page; conversations occurring in only one place; easy for both brand and customers to mingle and engage ● Dunkin Donuts statuses are humorous "Dunkin Donuts Coffee is good. So are bananas, but this isnt their homepage"
  7. 7. What do the Brands do?Facebook: Is Sbux not good at talking? ● Starbucks page seems more like of a well-refined corporate page rather than a "fan page." — wall posts usually reflect holidays and corporate events. ● Despite millions of fan base, Sbux merely "pushing" messages rather than actively engaging the fans with the brand. ● Dunkin Donuts tirelessly comments back to customer activities and feedbacks, engaging more customers whore not actively involved. ● Not only "pushing" but "pulling messages" from the customers
  8. 8. What do the Brands do? Twitter: DD outnumbers Sbux in total number of tweets● Both respond quickly and actively to customers’ tweets● However, contrary to presumption, Dunkin Donuts tweets more frequently than Sbux in spite of substantially low number of followers.● Contrary to Dunkin Donuts, Starbucks total number of tweets out of its total followers is very low. ● Both brands create far more content than they share, with Sbux sharing just slightly more. ● Interestingly, Klout says that both brands are somewhat broad in topic of influence. Dunkin is slightly more “Consistent” in their posts. ● Starbucks has been on Twitter since November of 2006; Dunkin since September of 2008
  9. 9. What do the Brands do?Twitter: Both brands act differ in tone and response to complaints ● Dunkin Donuts is more colloquial in tone, which shows through esp on twitter—"eat breakfast like a boss", ● Starbucks more monotone; repeating "Tweeting to you from the Dunkin generic response to different Donuts Mothership." customers tweets ● Asks angry customers for their contact ● Usually asks angry customers to call to number so that Dunkin Donuts can customer service act quickly ● As on Facebook, Starbucks generates ● As on Facebook, Dunkin Donuts is more refined and corporate-like content more casual and candid in dealing and response. with customers and their complaints
  10. 10. What do the Brands do?Regardless of Dunkins Effort, Starbucks Gains more Fans and Followers ● On Facebook, Starbucks has a greater absolute increase over Dunkin, but Dunkin only has a slightly higher relative increase, interesting due to Dunkins great efforts on Facebook. ● Dunkins efforts may be better at engaging existing fans in an effort to make them brand ambassadors, as opposed to simply accumulating likes. ● On Twitter, Starbucks has a greater absolute and a greater relative increase over Dunkin. ● Remember that Starbucks also dutifully reaches out to twitter followers, albeit not as actively or charismatically as Dunkin.
  11. 11. What do the Brands do?YouTube: Different tones reflected ● Starbucks: utilizes animations and lounge music (occasionally hip indie music); a few videos are about specific products, the majority are about the brand--history, quality, friendliness, class; almost all clearly scripted/acted ● Dunkin Donuts: Many silly videos with "regular people", such as "What are you drinkin? Penguin Suit Guy wants to know"; Rock music; lots of giveaways that showcase the reactions of regular people
  12. 12. What do the Brands do? Owned Media● While not directly tied to social media, insights show top-of-mind awareness● Main impacts on search for both stores were announcements to open new stores (or the closing of stores) --for example, Starbucks recent spike is in response to an announcement to open stores in India● Searches for Dunkin Donuts occur almost exclusively in the United States with scattered searches in various countries across the globe--surprising when remembering that one of the positive terms on Netbase for Dunkin Donuts was "immensely popular around the world"● Starbucks beats Dunkin Donuts in search volume for every country and has strong awareness/search volume in many countries, especially the Americas, Western Europe, Australia and South-East Asia
  13. 13. What do the Brands do? Quantitative Analysis: ● Overall, traffic to the site has decreased over the past month and over the past year by 15%. ● Dunkin Donuts traffic spiked in June during its National Donut Day promotion (free donuts)Qualitative Analysis: social media integration prominent on DD homepage, which even has a ● live twitter feed and links to twitter and facebook competitions. Blog kept by social media manager and reflects events of mass appeal―usually ● holidays and sporting events; summarizing responses to prompts on social media● Also, “create your own donut” game—previously contest that ended in 2010 for 60th anniversary DD live cam in Times Square via ●
  14. 14. What do the Brands do? Quantitative Analysis: ● Traffic is down for the month but up over the year by 15% ● Traffic jumped in November and December, likely due to popular seasonal drinks.Qualitative Analysis:● Blog topics include environmental initiatives; highlighting of products; special events, often related to music and musical icons (e.g. Sir Paul McCartney, Leonard Cohen); posts about music and culture often make no direct reference to Starbucks; posts authored by a variety of managers● Very limited comments--at most one or two per post● The rest of the site is pretty much static and meant to bring information rather than engagement● Social media integration on starbucks page burried under “everylove story” campaign●, which leverages fb, twitter, instagram and their own mobile apps to share stories about "relationships worth celebrating"● Intense social media integration is more burried than on DD page,● Mobile apps; Dunkin has one, but they dont push it as much
  15. 15. What do the Brands do? My Starbucks IdeaHow My Starbucks Idea Works: ● Customers create their own ideas for products, experience, and involvement at their local stores ● Great ideas voted and chosen by fellow customers ○ In order to give incentives, Starbucks adds features of gamification: leaderboard where high scorers can ● Has its own twitter account with 31,000 followers who tweet and share ideasIdeas that Came from My Starbucks Idea: ● Buy coffee beans and get a free cup of coffee ● Starbucks VIP CardWhy This Matters: ● This begets another efficient groundswell for the brand where focused and loyal customers can build a strong relationship with the brand, not the corporation ● Customer-defined personalization: customers choose what they want and the brand satisfies them Higher level of brand experience: not only do customers ● buy but they also create the brand identity
  16. 16. What do We Think?● Difference in scale, although Dunkin may be doing a better job of interacting with a loyal base of customers● Dunkin may be trying harder, but Starbucks is still winning in numbers● 2 very different brand messages and tones reflected through both owned and social media: Dunkin fun, Starbucks classy.● Much of it boils down to a matter of taste preference.● image ingrained into all social media and promotions--Starbucks would never have a "Like a Boss" campaign and it would seem out of character for Dunkin to brag about its fine coffee roasts.● Both respond to praise/complaints/ideas differently: Dunkin primarily through Facebook and Twitter, Starbucks through Twitter but also largely through MyStarbucksIdea● Both brands are effective in creating buzz around promotions● Starbucks focuses more on general engagement--most media and applications reflect the theme of "What does Starbucks mean to you?, whereas Dunkin Donuts more effectively uses gamification with its interactive apps and contests.