Starbucks Marketing Strategies Analysis

This assignment requires an in-depth analysis of Starbucks' marketing strategies. Students need to examine how Starbucks utilizes social media, branding, and customer engagement to achieve its business goals. The analysis should include relevant case studies and demonstrate the effectiveness of Starbucks' chosen strategies.

Running head: Starbucks
Starbucks
The impact of brand awareness on consumers brand loyalty in the age of digital
marketing and social media

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Contents
Executive Summary.....................................................................................................................................3
Introduction.................................................................................................................................................4
Research problem........................................................................................................................................5
Literature review.........................................................................................................................................6
Advantages of social media marketing....................................................................................................6
Increased brand recognition.................................................................................................................6
Improved brand loyalty........................................................................................................................6
More opportunities to convert..............................................................................................................7
Higher brand authority.........................................................................................................................7
Decreased marketing costs..................................................................................................................8
Improved customer insights.................................................................................................................8
Richer customer experience.................................................................................................................8
Data Analysis............................................................................................................................................10
Starbucks’ Social Media Audit..............................................................................................................10
Facebook...........................................................................................................................................11
Twitter...............................................................................................................................................12
Instagram and Pinterest......................................................................................................................13
Strategies:..................................................................................................................................................13
Paid....................................................................................................................................................13

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Owned...............................................................................................................................................14
Earned................................................................................................................................................14
Starbucks’ Social Media Policy.................................................................................................................14
Brand positioning:.....................................................................................................................................15
Adjectives that define Starbucks:..............................................................................................................16
Digital Marketing Strategy........................................................................................................................17
Conclusion.................................................................................................................................................18
References.................................................................................................................................................19

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Executive Summary
Starbucks is a leading brand established across the world. Like every other brand today,
Starbucks has also made efficient use of Digital marketing and social media marketing. Unlike
other brands, Starbucks has one of the highest brand loyalty. This report throws light on how
Starbucks has used digital marketing and social media marketing to create this high level of
loyalty.

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Introduction
Starbucks was founded in 1971 and has been a success story ever since its days of inception. It is
better known as coffee joint where people can ‘expect more than coffee’ (Liu, 2015). Every time
someone visits a Starbucks in the area, their purpose is more than having coffee. Friends meet
each other at Starbucks to meet up with each other. Colleagues get together at Starbucks to
discuss work and it is not unusual to see clients closing deals over a cup of coffee at this joint
(Mitzi, 2015).
In this era of globalization, cut throat competition and severe strategic positioning, customer
loyalty towards a brand plays an important role in deciding the fate of the brand (Chua, 2013).
Many companies invest heavily in their marketing, PR and customer service strategies to ensure
that their customers are loyal and continue to come back to a brand. This customer loyalty not
only helps in generating increased revenues for the brand but also helps in establishing brand’s
goodwill in the market and defining a positive image in the minds of its consumers (Susanty,
2015).
Social media marketing is one of the most innovative and in trend tools used by companies to
market their products to its consumers (Tuten, 2014). It has been noted that every big and small
brand understands the importance and presence of social media in people’s lives. Gone are the
days when Facebook, Twitter, Instagram or Pinterest were used only as a medium to connect
with friends across the world. Today, they provide for a platform to market products of leading
brands and help reach out to many million customers (Armstrong, 2015).
Brands have been hiring consultants to reach out to a larger audience in this sector of social
media marketing. It is considered the next big thing in the marketing world (Ashley, 2015). As
per research, 92% of the marketers agreed that social media was important for their business
while 80% of them indicated that marketing through social media has increased traffic on their
websites
There are numerous advantages to this particular style of marketing (Miller, 2013). How
Starbucks has utilized social media marketing and turned the game around is detailed in this
report. Currently, Starbucks has one of the most loyal customer base in the coffee culture leaving

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behind Café coffee day, Dunkin Donuts, McDonalds’ McCafe, Costa Coffee, Nescafe and small
retail coffee outlets which are locally well known (Scott, 2015).
Research problem
“To understand how Starbucks has made use of social media marketing and digital marketing to
increase brand loyalty among customers”

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Literature review
This section of the review throws light on the advantages of social media. Various articles from
renowned journals have been analyzed to conclude the benefits of social media and digital
marketing. Numerous businesses are taking advantage of these strategies and various case
studies have been written on the same. Few of those journals and online sources have been
compiled to understand how Starbucks has enhanced its customer loyalty.
Advantages of social media marketing
Social media has provided for an effective platform for marketers to help reach out to a large
number of consumers. This has helped companies establish their brand presence across
boundaries of geography or demography (Cader, 2013). Everyone is a social media user and this
is the exact opportunity used by marketers to enhance the presence of their products. Social
media offers various advantages as listed below:
Increased brand recognition
Brand recognition simply refers to the amount of people that recognize your brand when they see
an outlet, a logo or an advertisement (Hult, 2017). This recognition plays an important role
because it helps increasing TOMA (top of mind awareness) score for brands. Once that has been
effective, the brand becomes easier and accessible for new customers and familiar and
recognizable for existing customers (Huang, 2014).
Social media ads are helping brands increase this brand recognition by ensuring that these ads
reach a much wider audience as compared to newspaper or television. The reach of social media
is much higher and efficient usage of this tool can help increase brand awareness (Hutter, 2013).
Improved brand loyalty
Brand loyalty throws light on a major objective of brands which is repeated sales from the same
customers. This largely depends on the service offered by the firm, their pricing strategies and
their geographic positioning as compared to its competitors (Rubio, 2014). Brand loyalty is
essential as it helps improve brand image and leads to increased revenues for the firm.

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Social media marketing ensures that the brand is right in the face of the consumers at frequent
intervals. Today Starbucks has a huge following on all of its social media platforms. This makes
sure that all of these followers get regular updates from Starbucks about their upcoming offers,
latest trends, new products and new stores (Barreda, 2015). This increases brand awareness
among customers and leads to their repeated purchases and visits to Starbucks. Hence increasing
their brand loyalty.
More opportunities to convert
Every time a brand posts a status on Facebook, tweets an update on twitter or even uploads a
picture on Instagram or Pinterest, it gives the brand an opportunity to convert more customers.
Not every interaction on social media leads to a converted client but higher number of
interactions are sure to lead to an increased customer conversions (Malik, 2013). Social media
provides Starbucks with an opportunity to interact with more members of the target market as
compared to television, e-mails or newspaper. The many million followers of Starbucks see these
updates. If they have not followed the brand, and their friend comments on a Starbucks post, they
would still see it on their news feed. Hence every comment, every like and every follower that
Starbucks gains, is an opportunity to covert more customers (Pringle, 2001).
Higher brand authority
The frequency with which people visit social media platforms and websites are much higher as
compared to television and newspaper. Most people read newspaper once a day. The hours
people spend on binge watching shows has also considerably reduced owing to Netflix and
hotstar. That is both these mediums have becomes rather obsolete specifically for Starbucks
target market (Sasmita, 2015).
This is why social media marketing provides the brand with an opportunity to fix the issues if
there are any. It also involves a quicker response to customer queries and complaints. Starbucks
decides which ad to post, how frequently should that ad be seen, when to rework on the ad and
the exact demography people that should be targeted by that particular ad. This provides the
brand with a higher authority to position their products and have a stronger control over the
brand (O’Connor, 2017). The high number of opportunities to interact with their customers is

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one of the biggest advantages of social media marketing leading to increased authority of
marketers on their brand image.
Decreased marketing costs
The practice of increased and more frequent visits to social media platforms by individuals has
provided marketers with an opportunity to display their products to customers more frequently at
a lesser cost. Many social media platforms are now even a source of earning for the brand
(Tiago, 2014). A television ad can cost a firm millions of dollars depending on the time and
frequency of its broadcast, but a single interaction on twitter can gain more followers and
increase visibility at almost no cost.
84% of the marketers believed that as much as 6 hours of efforts into the social media marketing
was good enough as an investment to generate higher traffic. Which effectively concludes that an
hour a day for a week spent on social media can increase traffic to the website and in turn
generate revenue (Schivinski, 2016). Even paid marketing on Facebook is much less expensive
and hence leads to decreased marketing costs.
Improved customer insights
The advancement of digital marketing has now become a two way street. Now even the brands
can know their customers better rather than just the other way round. Customer profiling has now
become a latest trend which guides brands to market and position their products better.
Today, Starbucks has the ability to target people from a specific age group, geography or even
social and cultural interests. The brand can know the other pages followed by their customers,
the places they are visiting and the posts that they share. This helps Starbucks in knowing the
exact needs and wants of their target market and hence improves customer service in the longer
run (Strachan, 2015).
Richer customer experience
Unlike a one way advertisement, social media has become a two way communication between
customers and brands. Any issue or problem addressed on social media gets immediate attention
and hence the firms work intensively to resolve it. Similarly, if the customer uses social media as

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a way to compliment a brand, the firm can immediately thank the customer and provide for a
more personal experience. All these are opportunities for firms to showcase their customer
service abilities to the general public. Similarly, for the customers these platforms are way to
connect with the core values of the brand and avail customized as well as personalized service.

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Data Analysis
Starbucks’ Social Media Audit
Social Network Follower count Avg. weekly activity Avg. engagement rate
Facebook 37 million current
likes on the page
8 posts per week 21%
Twitter 11.9 million
followers currently
20 posts per week 30%
Instagram 15.5 million
followers currently
10 posts per week 35%
LinkedIn 0.8 million followers
currently
3 posts per week 5%
Social Network Volume % of overall traffic Conversion rate
Facebook 35000 unique visits
per week(Schoultz,
2013)
41% 20%
Twitter 20000 unique visits
per week
30% 5%

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Instagram 45000 unique visits
per week
58% 12%
LinkedIn 1000 unique visits
per week
5% 1%
Facebook
Just like every other leading brand, Starbucks has effectively utilized the platform of Facebook
as a way to generate sales for their firm (Leung, 2015). Besides a common Facebook page,
Starbucks in also actively involved in promoting locally by creating different pages like
Starbucks offers, Starbucks Frappuccino, Starbucks UAE, Starbucks Australia, Starbucks Middle
East and more on similar lines of work. This provides for a local connect with the customer in
different walks of life.
Starbucks has used Facebook as a promotional tool in the most efficient manner. Few of the
successful Starbucks campaigns are given as below:
1. Blonde Roast: When Starbucks introduced its new product blonde roast, it was promoted
through Facebook media and provided for customers to gift a free cup of coffee to their
loved ones. This ensured that people became aware about the product, tried the new
product and gifted E-cards to their friends who in turn became aware about the product.
2. Pumpkin Latte: When Starbucks was to introduce the new pumpkin latte, it fed on
people’s curiosity and excitement of experiencing a new product. Starbucks started this
Facebook generated app where users collected points and Starbucks offered that the city
with most points will have the pumpkin latte a week before the rest of the world.
3. #TreatReceipt: This was another remarkable advantage that Starbucks took of the entire
hashtag efficacy. This offered the customers who had already purchased a coffee in the
morning to avail a free coffee by noon. All they had to do was tag the Receipt using
Hashtag #TreatReceipt.

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Twitter
Twitter has also been a brilliant source of advertising and marketing for Starbucks. At present
twitter has over 328 million active users per month. This provides for a large market opportunity
for any firm to reach out to a huge audience. Starbucks has utilized twitter in the following ways:
1. Satisfying disgruntled customers: Every time a customer complaints about any products
or experience by Starbucks. This is a great strategy as it develops a sense of personal
contact with the customers and help the company recover its customer service. This
ensures that Starbucks does not lose a customer over bad service which is usually the
case with brands facing high competition.
2. Tweet a coffee: Tweet a coffee campaign started by Starbucks increased the company’s
brand value and sales over a short span of time. This campaign allowed customers to gift
coffee vouchers worth $5 to their friends. Whenever someone wanted to gift a coffee to
their friend, he or she would simply post on twitter saying ‘tweet a coffee to @..’, the
friend automatically gets $5 gift voucher and upon the purchase of coffee, the one who
gifted gets $5 deducted from credit card. This strategy focused on friendship, generosity
and love for coffee. This campaign alone generated over $180000 of sales from 27000
customers in a small span of 5 weeks. Syncing customers’ phones twitter with Starbucks
also provided the company with a greater insight on their customers. This was a new and
unique strategy followed and hence attracted a large number of customers. 34% of the
users bought multiple gift cards and 32% of them bought on the very first day of the
campaign(Taecharungroj,2016)
3. Snow day in real time: When a snow storm or blizzard hit in the east coast of America,
Starbucks started tweeting and posting pictures on Instagram where people are enjoying a
cup of warm coffee in the snow. Starbucks also encouraged its users to post pictures and
attract others. As the cold weather set in, social media users continued to see people
indulging in a warm coffee cup. This attracted many customers to go out of their
respective homes and grab a coffee. This is a perfect example of advertising using the
present scenario also known as real time advertising.

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Instagram and Pinterest
Starbucks is essentially very active on Instagram as well as Pinterest. Because gone are the days
when coffee used to be simply used for consumption. Now coffee joints are serving good looking
coffees which appeal to the younger crowd a lot more. Coffee pictures continue to trend on
Instagram and Pinterest. Followers of coffee pictures have also increased over a period of time as
we have seen a great shift from tea to coffee within individuals.
1. Behind the scenes: Starbucks also started this campaign where it posted pictures of the
company from behind the scenes. This helps customers understand the company better
and provides them knowledge about place where Starbucks sources its raw materials
from. Most people are aware about the organizational culture at Starbucks thanks to the
pictures uploaded by employees.
2. Check in for charity: Every time an individual adds a photo or checks in a Starbucks
outlet, the firm donates $1 to AIDS awareness companies. This campaign ran from June
1-June 10 in the year 2012. This made people believe that they are doing a good cause
while buying their regular coffee. This helped in attracting traffic to Starbucks and
gaining brand awareness among customers.
Strategies:
Paid: As the name suggests, in this strategy companies pay media houses and PR firms and
promote their products. This includes news channels, new reporters, newspapers, television
advertisements and billboards etc. Many companies often reach out to famous bloggers and
writers to promote their products. In the form of paid promotions Starbucks has done the
following:
1. Television ads
2. Newspaper ads
3. Billboards
4. Food bloggers
5. Celebrity promotion

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Owned: This includes the media content created by the company itself. This essentially requires
the company to have a strong marketing and content writing team. The blogs that companies post
on their websites, the internal marketing done within the company, the press plans released by
the firm are all forms of owned marketing. The company’s mission, vision, tag line are all forms
of owned marketing that is implemented by Starbucks. Examples of owned media marketing by
Starbucks are:
1. Website
2. Social media
3. Tag lines and campaigns
4. Discounts offered
Earned: Earned media is known to place customers into your media channel. This is the highest
form on customer engagement. If the company manages to earn via its media channels, it is
presumed that the company’s level of engagement with its customers has reached its pinnacle.
Earned media draws attention towards prospects and customers and later turns them into the
advocates of the brand which in turn appeals to more customers.
1. Social media campaigns
2. Starbucks referral bonuses
Starbucks’ Social Media Policy
As a Starbucks employee, there are a lot of criteria that have to be kept in mind while promoting
any kind of activities on social media. Starbucks in extensively strict about adhering to its social
media policy and ensures that no employee of the company strays away from it (Perrin, 2015).
The employees are expected to demonstrate proper etiquette while using social media by
following certain guidelines as below:
1. Be respectful: It is the most important policy as no customer would appreciate service
from a disrespectful employee. They genuinely believe that customer comes first and put
in desired efforts for the same.
2. Do not slander the competition: None of the Starbucks advertisements would ever be
seen disrespecting any of their competition. No efforts are made to steal the business

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from other brands. Rather Starbucks just works upon effectively ensuring that customers
are attracted to Starbucks and are willing to visit again.
3. Provide help: Employees of Starbucks are specifically asked to provide simple help to its
customers as well as visitors who come to the store. Starbucks feeds the hungry, allows
people to use their washroom and conduct meetings in their seating area even if the group
has not ordered anything. If there is any grievance addressed to Starbucks on any social
media platform, the company employees ensure immediate actions are taken.
4. Do not use vulgar language: Under no circumstances should a Starbucks employee use
vulgar language towards its customers, other employees or any other stakeholders of the
company. Strict and severe actions are taken against employees found to be using foul
language.
5. Be kind and friendly: Starbucks believes that in order to connect with its customers, the
employees must be kind and friendly. Employee behavior plays a major role in deciding
the level of customer satisfaction and Employee’s connect with the customer ensures
repeated visits.
6. Promote company campaigns from personal accounts: This is not compulsory but highly
appreciated. Every employee of the company is given the permission to promote the
campaigns started by Starbucks on their personal accounts.
Brand positioning:
Positioning of a brand refers to the image that the customers have about the brand. Brand
positioning plays a very important role in targeting the right market and ensuring that the
customers relate well with the brand (Singh, 2014). This becomes specifically imperative in the
face of increasing competition. Starbucks brand image entails the following features:
1. Present everywhere: The high number of stores of Starbucks ensure that it is easy for
people to find an outlet wherever they go. This increases brand awareness and also
positively impacts brand loyalty. This is because when people can easily find a Starbucks
anywhere, they do not try out other options (Mason, Cole & Goza, 2017)
2. Good coffee on the run: Most office goers have positioned Starbucks as a place for their
morning coffee on the run. Most working class runs short on time and hence the pickup

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service of Starbucks provide these people with an opportunity to grab a coffee while on
their way to work or in between breaks.
3. Place to meet and move on: Starbucks is not just a place to have coffee but it has now
positioned itself as a place where people can hang out with friends or meet for official
purposes and move on. The seating at their outlets is comfortable and availability of WiFi
adds to the benefits.
4. Convenience oriented: Starbucks is a convenient coffee shop. People place their orders,
get their coffee and leave. There is no hassle about ordering food or coffee from one
place then picking it up from another place. It is a very convenient procedure which
really appeals to customers.
5. Accessible and consistent: As discussed above, Starbucks stores are very easily available.
The size of the store, the high level of brand awareness and the efficiency of their internet
marketing can easily guide people to the nearest Starbucks. Consistency is also another
important factor. As consumers say, no matter which country do people visit, the taste of
Starbucks coffee, their methods of preparation, employee behavior, ordering procedure
and the look and feel of the place remains consistence.
Adjectives that define Starbucks:
As the company policy goes, Starbucks aims to live up to the following adjectives by
consistently working on their ambience, culture at the outlet, employee behavior, ordering
procedure, speed of delivery and customer service and retention.
1. Inspirational
2. Sophisticated
3. Fun
4. Creative
5. Trendy
6. Luxurious

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Digital Marketing Strategy
Although social media marketing consists of the major part of digital marketing, there are other
aspects to it that need to be paid attention to. And if used effectively can significantly drive sales.
Digital marketing consists of using the internet and its various tools to market the products and
lead to increased brand awareness, clear positioning and improved sales (Bang, 2014). Digital
marketing strategies used by Starbucks are as below:
Internet Social Media Mobile
Search/ Keywords Facebook Mobile Website
Websites Twitter Applications
SEO Instagram QR Codes
Google Ad Words YouTube
Blogs Foursquare
Banner Ads Pinterest
Each of these mediums was crucially and critically chosen to engage customers using appealing
content. Starbucks also has a different target market for every medium of communication with
customers (Berman, 2013). As a firm, Starbucks has made sure that all the mediums are user
friendly that make their usage easy and enjoyable.
For example, Starbucks app helps users to load money onto their Starbucks cards which they can
use on their purchase and get attractive discounts. There are star rewards for various purchases
done by the card. The app also helps users find location of the nearby Starbucks outlet and leave
tips for other users who are using the same app (Wei, 2016)

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Ad Words used by Starbucks are – Starbucks, Coffee, Latte, Mocha, Tazo tea, Frappuccino,
Espresso, Iced coffee. Whenever any internet user uses the above mentioned Ad words, Google
automatically displays Starbucks as an appropriate suggestion.
Conclusion
Starbucks has immense customer loyalty. There are many million users of the brand who
continue repeat purchases at the outlets. It is one of the most well-known brands for its customer
loyalty. There are various case studies that are available on the internet showcasing how
Starbucks does not lose out on its customers. In the era of globalization, Starbucks has efficiently
used Social media marketing and digital marketing techniques to attract customers and retain
them for further visits. The ease of accessibility of Starbucks store and the consistency of their
food quality and service makes sure that people visit Starbucks outlets even if they are in a
different city(Turban, Strauss & Lai, 2016)
Starbucks has made use of various campaigns, optimized its search engines, enhanced its quality
of customer service and efficiently positioned the brand to attract customers and retain them in
the longer run. They have used owned, paid and earned media channels and that has borne them
great number of customers. Today Starbucks is a leading brand in the coffee industry and
continues to attract many million customers across the globe.

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