Starbucks Australia's Social Media Marketing: A Comprehensive Analysis

This report analyzes Starbucks Australia's social media marketing strategies, focusing on their use of Facebook and Instagram. It examines how Starbucks utilizes these platforms for marketing and promotion, emphasizing their effective community engagement and responsiveness to customers. The report delves into the concept of customer value, explaining how Starbucks aims to deliver satisfaction through its marketing efforts. Furthermore, it provides a detailed analysis of how Starbucks can enhance customer value through social media, including understanding customer needs, identifying value propositions, segmenting customers, and creating win-win pricing strategies. The analysis is supported by references to academic research and industry insights, offering a comprehensive understanding of Starbucks' social media marketing approach and providing recommendations for improvement.

Running Head: MANAGEMENT
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Management
Social Media and Marketing
(Student Details: )
9/18/2019

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Social Media and Marketing
Answer 1
Starbucks, Australia uses social media such as Facebook and Instagram for their marketing
and promotion as an excellent social strategy. It has been observed that huge multi-national
brands like Starbucks are doing well in social media while posting updates many times a day.
Starbucks use Facebook and Instagram for being excellent at responding to their loyal and old
consumers (Keller, 2013). In addition to that, the company uses both social media platforms
Instagram and Facebook for having an effective community engagement (Tiago & Verissimo,
2014). While doing so, people from all around the world can interact with the company and
its management in order to tell them what they expect from the company. In this way, for
marketing campaigns and surveys Starbucks uses these social media platforms like Facebook
and Instagram. In whole, for knowing global people’s expectations and thereby to fulfil those
expectations while exceeding their expectations, Starbuck uses social media platforms
(Geereddy, 2017).
Answer 2
Customer value refers to the actual satisfaction which is experienced by the customers.
Generally, this customer value is evaluated while taking an action relative to the actual cost
of such action. In this context, customer value usually gets delivered to the company’s
customers with the help of effective marketing strategies (MEYER, 2018). An understanding
of customer value suggests that social media marketing may also create communicate and
thereby offer value to the consumers in the form of quality products and services. While
evaluating customer value, customers usually compare their perceived value of same products
while making decisions in relation to avail services or purchasing products (Keller, 2013).
In order to measure customer value, the simplest equation can be as follows:
Perceived value by the customer= Perceived advantages / Cost of the product or service
In this context, for some given set of profits or benefits, when the cost rises, then total
customer value perceived by the customer’s drops. In addition, the key drivers of customer
value may include:
 Product functions

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 Quality
 Points of differentiation
 Service
 Branding
 Marketing
 Cost (Tiago & Verissimo, 2014).
 Existing relations or experiences
Answer 3
Undoubtedly, Starbucks Australia can acquire better customer values while using social
media, as follows:
Creating enhanced customer value with Facebook campaign
It has been found that with focusing efforts over best and loyal customers, the company may
increase customer value and thereby expand their business worldwide as follows:
Step 1: by understanding and knowing customers on Facebook through online business
learning strategies like deep learning and behavioural learning, Starbucks can know what
drives value for their global customers (Geereddy, 2017).
Step 2: By understanding their value proposition through Facebook campaigns
Step 3: later then, the company should identify the customers as well as segments where they
can create more value as compared to the international competitors
Step 4: creating a win-win price for the customers
Step 5: Lastly, focusing and hence putting investments on their most valuable customers
worldwide.

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References
Geereddy, , 2017. Strategic Analysis Of Starbucks Corporation. [Online] Available at:
https://scholar.harvard.edu/files/nithingeereddy/files/starbucks_case_analysis.pdf [Accessed
02 December 2018].
Keller, , 2013. Social Media and Interpersonal Communication. Social Work Today, 13(3),
p.10.
MEYER, P., 2018. Starbucks Coffee’s Organizational Structure & Its Characteristics.
[Online] Available at: http://panmore.com/starbucks-coffee-company-organizational-
structure [Accessed 1 December 2018].
Tiago, M. & Verissimo, J., 2014. Digital marketing and social media: Why bother?. Business
Horizons, 57(6), pp.703-08.