2. Say hello to
Share Warmth
a campaign that will enhance Starbucks’ image on a
local level and develop closer relationships with
customers while sharing warmth with those who
need it most this winter:
our nation’s homeless
3. This winter
Americans will be out in the cold.
Starbucks can bring warmth and
change.
Our Company | Our Customers
Our Cause | Our Campaign
610,00
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4. Corporate Overview
● Founded in 1971 and is now the largest coffeehouse
company in the world
20,000
stores
60
countries
$16.4 bn
in sales in 2014
36.7%
market control
● Product portfolio includes hand-crafted drinks, coffee beans,
teas, bakery items, fresh food items, small meals, gift items
and branded items sold outside of Starbucks stores
Data from IBISWorld
5. SWOT Analysis
STRENGTHS
● strong brand name and loyalty
● cutting-edge technology
● prime and strategic locations
● corporate social responsibility
WEAKNESSES
● negative publicity and
perception as “big brand”
● higher prices than competition
● product recalls and lawsuits
OPPORTUNITIES
● expansion in emerging markets
● leverage technology
● highlight philanthropic efforts
● increase product offerings
THREATS
● increased competition,
particularly from local shops
● saturated markets
● supply issues and rising prices
8. Research
Data collected from survey. Respondents sampled from University of Georgia Millennial college students.
“Would you be more likely to buy a
product from a company when you
know they donate to charities?”
“Would you consider yourself
socially conscious?”
9. Research
“After knowing about Starbucks’ foundation,
cause-marketing and charitable donations, would
you be more likely to purchase coffee from
Starbucks?”
“I’m all about supporting small
businesses, but Starbucks has
a lot more of my respect now.”
“Do you view Starbucks as a leader in
cause marketing?”
“Do you know that Starbucks gave $15.6
million to charity in 2013?”
10. Millennials and Giving Back
● 75 % of young people donated to
causes last year and 63 % said they
gave their time to volunteer
● 50% would be willing to reward
companies that give back to society by
paying more for their goods and services
● 47% of consumers have bought a brand
at least monthly that supports a cause
Data from Millennial Impact Report by Nielson, 2013. Survey polled 6,522 people aged 20-35.
11. Cause Partnership
The mission of NCH is to
prevent and end
homelessness in America.● Starbucks’ mission is to inspire and nurture the
human spirit - one person, one cup, and one
neighborhood at a time.
● Addresses “Big Brand” negative publicity and
threat of increased local competition.
● In the winter and around the holidays, the
homeless may not have anywhere warm to stay.
15. Campaign Schedule
Nov.1-
Jan.30
P.O.P | cup sleeves, window clings and POS donations
appear Nov. 1 to coincide with holiday product roll-out
SOCIAL | content sharing by Starbucks begins Nov. 1;
#ShareWarmth promoted on P.O.P. released on Nov. 1
EVENTS | Pop-Up Shops begin week prior to Thanksgiving
(National Hunger and Homelessness Awareness Week)
MOBILE | donation feature opens Nov. 1; messages and
16. Campaign Schedule
Sunday Monday Tuesday Wednesday Thursday Friday Saturday
1
POP, Social and
Mobile Activated
2
Social Content
3 4
Message to App
Users
Social Content
5 6
Social Content
7
App Offer: Mobile
Payment donates 10
cents to HCL
8
Social Content
9 10
Social Content
11
App Offer: get double
stars by buying hot
drink
12
Social Content
13 14
Social Content
15 16
Pop-Up Shop:
New York City and
Boston
Social Content
17
Pop-Up Shop:
Philadelphia and
Washington, D.C.
18
Pop-Up Shop:
Los Angeles and
San Francisco
Social Content
19
Pop-Up Shop:
Portland and Seattle
20
Pop-Up Shop:
Atlanta and Miami
Social Content
21
Message to App
Users
22
Social Content
23
App Offer:
Buddy Drinks
24
Social Content
25 26
Social Content
27 28
Social Content
29 30
Social Content
31
N O V E M B E R
17. Measures of Success
1. New social followers on Instagram, Facebook, and
Twitter attributed to the launch of the campaign
a. measured on targeted, local levels
2. Customer and Employee Engagement
a. Session length of users on mobile app
b. measuring participation/engagement during Pop-
Ups or Point of Purchase vehicles
3. Conversion Rate
4. Post-Campaign Survey
We’re here today to say hello to share warmth, a campaign that will enhance Starbucks’ image on a local level and develop closer relationships with our customers while sharing warmth with those who need it most this winter: our nation’s homeless.
Homelessness is a nationwide problem. Does anyone want to guess how many Americans are homeless? According to the Housing and Urban Development Agency, an estimated 610,000 Americans will be out in the cold this winter. Through sharing hot coffee, building awareness and raising funds, Starbucks has the power to bring warmth to and change for America’s homeless. Today we’ll walk you through the basics about our company, our customers, our cause and our campaign.
Starbucks was founded in 1971 in Seattle, WA selling only roasted coffee beans. Starbucks is now the largest coffeehouse company in the world operating just under 20,000 stores in 60 countries, earning $16.4 billion in sales in 2014 from an array of products including hand-crafted drinks, coffee beans, teas, bakery items, fresh food items, gift items, books, music and branded items sold in grocery stores and convenience stores.
And Starbucks is a market leader - they control 36.7% of coffee shop market. This gives Starbucks a lot of power as an industry leader to lead the way not only for industry trends but for social change.
When looking at this SWOT Analysis, Starbucks clearly has many strengths, weaknesses, opportunities and threats, but there are a few key elements that we think can drive and motivate a successful cause marketing campaign for Starbucks.
Starting with strengths, Starbucks is a market leader both in terms of cutting-edge technology and practicing corporate social responsibility. Starbucks has developed a robust mobile app that has 12 million active users and the company’s social accounts all have millions of followers each. In terms of corporate social responsibility, Starbucks is an industry leader. The company donated almost $16 million to charity last year through its own programs that focus on issues ranging from sustainability to youth empowerment and through charitable donations to partners.
These strengths give Starbucks unique opportunities that its major competitors don’t have. Because Starbucks has put so much into developing technology, they’re uniquely positioned to take advantage of it in ways competitors can’t. Through the app, consumers are offered special content and membership in a loyalty program. Coming soon, the app will feature mobile ordering and even a delivery service. But now, the app offers mobile payment. The company shared that 15% of transactions made in US stores are paid for via mobile payment on the Starbucks app - that’s 6 million transactions via mobile per week. This gives Starbucks a great way to engage with Millennials - they’re a demographic that loves mobile payment, as Nielson reports that 55% of mobile payment transactions are made by Millennials. Two thirds of these same Millennials also follow and engage with brands on social media, where Starbucks also shines. The company shares great content, but consumers also love to show the world that they drink Starbucks coffee - I’m sure all of you were alerted via Instagram about the return of the Pumpkin Spice Latte and Holiday cups this year.
Also, despite Starbucks extensive CSR practices, they do not heavily promote their efforts. Starbucks’ competition either doesn’t have extensive CSR practices or are too small to afford it, so this unique angle positions Starbucks in a positive way and separate from competition.
On the flip side, Starbucks has specific weaknesses and threats that need to be addressed. Starbucks sometimes receives negative publicity and suffers from the perception of being a corporate giant. This is especially threatening for the company at a time when, according to Nielson, 40% of Millennials prefer to support local businesses whenever possible. Starbucks is also facing increased competition from large competitors like Dunkin’ Donuts and McDonalds and also from small, local coffee shops. These two factors combine to give Starbucks a very compelling reason to enhance their image and develop relationships with customers. With a strong cause-related marketing campaign, Starbucks can use their strengths to address these threats and show their customers that a big company brings a big impact to communities of any size.
Address Starbucks’ weakness: negative publicity as a “big brand”
Address Starbucks’ strength: building on customers’ brand loyalty and utilizing cutting edge technology
-how giving drives Millennial purchase choices
-what Millennials know about Starbucks CSR
-how Millennials use media (engaging with brands on social, using apps)
1. To prevent and end homelessness while ensuring the immediate needs of those experiencing homelessness are met and their civil rights protected. We envision a world where everyone has a safe, decent, affordable and accessible home. Programs are centered around public education, policy advocacy, and grassroots organizing. They’re based out of Washington D.C. and they hold and participate in a variety of events benefiting the homeless, as well as put individuals faced with homelessness into contact with the nearest agency or shelter that can help.
2. Starbucks does a lot of cause marketing, but homelessness is something they have yet to address. It’s a national issue, but it’s also relevant to us locally and in other communities around the country. Starbucks is about warmth, joy, and community - way for them to impact local communities and develop closer relationships with customers and employees.
3. Addresses weakness of negative publicity and perception as “big brand” and threat of increased competition, particularly from local shops.
Tie the executions to the objectives:
1. enhance Starbucks’ image on a local level
2. help Starbucks’ develop closer relationships with current and prospective customers
App: donating the value of the 12th free drink to the local shelter, share with a buddy & get a free drink, purchasing a coffee on this date will donate an extra $0.10 to the local homeless shelter -- build loyalty and closer relationships with current customers --combining app with cause-marketing will play a key role in setting a new standard for cause marketing; Starbucks’ will become even more of a leader within cause marketing and remain on the cutting edge in mobile development
Point of Purchase: encouraging customers to share their sleeves and in-store decorations via social media -- build closer relationships with both current and prospective customers (through friends’ shares of images) -- donating 2 cents of every hot beverage purchase to NCH || POP materials are part of “Starbucks experience” that consumers expect from a visit to store
Pop-up shops: how they engage employees & receive local publicity--bring community together: you see the action on a very local level -- according to our research, majority of participants did not view Starbucks as a leader in cause-marketing // develop closer relationships with prospective customers in the local areas
Social: Starbucks will share content on their own platforms while consumers share and generate content with #ShareWarmth
Campaign will run November 1 through January 30 - rolls out with holiday beverages
Point of Purchase materials will appear Nov. 1 - so our sleeves with homelessness statistics and #ShareWarmth will roll out with the much-celebrated red holiday cups that everyone loves to Instagram. Sleeves will be accompanied by window clings and signboards. POP material will be retired Jan. 30.
Social Content produced by Starbucks related to #ShareWarmth, sharing information about homelessness, will also begin Nov.1, and #ShareWarmth POP materials will encourage consumers to begin posting their own content. Social content will be shared by Starbucks until Jan. 30.
Pop-Up Shops in Local Community Shelters will occur in waves - one week per month. The first wave of pop-up shops will occur the week before Thanksgiving, which is National Hunger and Homelessness Awareness Week - the perfect time to share generosity and thankfulness. A second wave of shops will occur the week before Christmas in December and the week of MLK Day in January.
Mobile activation will occur Nov. 1 and will begin promotion of Starbucks donating value of a hot coffee to HCL/local shelter whenever consumer earns 12th free drink. Mobile app messages and special offers will appear throughout duration of campaign at least once a week.
specifically in target local areas to see if Starbucks image is improving on a local level
we want to measure customer engagement by looking at the time a users spends using Starbucks mobile app to gauge the relationship between Starbucks and consumers
this measurement will enable us to get a better look at the company’s reputation at a local level from the employee perspective
conversion rate to gauge our marketing efforts
Lastly, we will distribute a post-campaign survey to see how consumer’s views and knowledge of Starbucks has changed
all of these will be measured within the four to five months following the launch of the campaign and will then be compared to stats taken prior to the launch as well as measurements from the post-campaign survey
Summing it all up, Share Warmth will reach Millennial consumers through social media, point-of-purchase strategies, community events and features on the Starbucks mobile app.
Restate purpose and offer a conclusion or summary statement
a campaign that will enhance Starbucks’ image on a local level and develop closer relationships with our customers while sharing warmth with those who need it most this winter: our nation’s homeless
