Final IMC Plan - Starbucks · 5 Persona 2: Working Parents From the moment they wake up to the moment they go to bed, their days feel packed to the brim. Between dropping the kids

STARBUCKS CUSTOMER-BRAND RELATIONSHIP STRATEGY Prepared by: Gina Neace

COMSTRAT 564

Washington State University, Spring 2017

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TABLE OF CONTENTS:

Executive Summary .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

STARBUCKS FIT Customer Personas .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Brand Identity & Value Proposition .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Customer Engagement Plan .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Message Content . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Long-Term Relationship Building .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

References .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Appendix (1:1 Interviews & Survey) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

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EXECUTIVE SUMMARY:

Founded in 1971, Starbucks has grown to become a globally recognized coffee company that not only provides consistent yet unique experiences reflective of the neighborhood and/or town in which they reside, but a force in ethically sourcing sustainable products.

Ranked at number 45 on Forbes “The World’s Most Valuable Brands” list7, Starbucks currently has more than 25,000 retail locations in 75 countries and employs more than 300,000 partners.6

In an effort to continually be customer focused, consumer-based research was conducted to determine whether or not Starbucks is currently fulfilling the needs and wants of its patrons. In addition to one-on-one in-depth interviews being conducted, a survey was issued to Starbucks consumers via social media for additional general feedback and knowledge relating to areas of improvement.

Based on research findings, the biggest areas for improvement are in expanding food and beverage offerings to include high protein/ low carb/ low sugar options, additional flavors, and organic choices. Furthermore, these needs were found to be most prevalent among three of Starbucks customer personas: Health Conscious On-The-Go Young Adults, Working Parents, and Active Retired Adults.

Whether consumers are trying to make a conscious effort to properly fuel their bodies or work to instill healthy eating habits in their children while being cognizant of their own time limitations, the need for more healthy food options is a priority. Furthermore, with the growing number of allergies and food sensitivities, the support from brands is becoming paramount to consumers.

In an effort to align with and support consumers in their quest for quick, healthy options, Starbucks will launch STARBUCKS FIT, a line of healthy food and beverage options that will rotate seasonally. In addition to more sugar-free flavors, gluten-free products, vegan and organic items being available, seasonal fruits and vegetables will be available for purchase at all Starbucks locations.

The attached customer-brand relationship strategy for STARBUCKS FIT provides detailed profiles for each of the determined customer personas, the brand identity of STARBUCKS FIT, an in-depth customer engagement plan, messaging strategies for each customer touchpoint, and a long-term relationship building recommendation geared towards fostering and nurturing relationships with consumers.

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STARBUCKS FIT CUSTOMER PERSONAS:

Persona 1: Health Conscious, On-The-Go Young Adult

For Hannah, every day must start with a cup of coffee. She’s mastered the art of making a latte at home before running out the door for work, but on the weekends she’ll treats herself to an espresso at Starbucks with friends.

Hannah takes pride in being exactly who she is and prefers brands that are akin – unique and individualistic. She also understands the value and importance of taking care of her mind and body and turns to working out and eating right to ensure she’s always the best version of herself. Value always trumps cool and Hannah is willing to pay a little more for quality.

A self-professed extrovert, Hannah loves to live in the moment, but struggles to do everything she wants to do and save money. Whether it’s something big like going on a trip to Greece or something small like happy hour with her roommate, she knows she has to budget her money if she wants to make it all happen on her salary.

She has an entrepreneurial spirit and is driven in her chosen career path, but struggles to understand why she must start from the bottom and “work her way up” and can’t just have the career she wants now.

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Persona 2: Working Parents

From the moment they wake up to the moment they go to bed, their days feel packed to the brim. Between dropping the kids off at school, work, sporting events, homework, and everything in-between, coffee feels like a requirement for them to be able to get through it all.

Constantly go the go and juggling a thousand things, Tom and Molly rely on brands, like Starbucks, for consistent, quality products that they can get anytime, anywhere and value the availability of healthy options for their busy, on the go family and life. Brand loyal, they view brands as a reflection of themselves, holding them to a higher standard than other brands they may use.

Tech savvy individuals, Tom and Molly utilize their mobile devices for everything – from reading the news to keeping up on work emails, to syncing their schedules (time management) to taking pictures and recording their kids sporting events; their devices keep them in-the-know and connected not only to each other but to everything around them.

Both driven in their careers, Tom and Molly want to give their kids and each other the world but struggle to find a quite moment for just the two of them to connect. They make a conscious effort to be present for everything and love celebrating not just the big milestones like birthdays, but the small things like ballet recitals, an “A” on a test, and promotions.

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Persona 3: Active, Retired Adult

For Gordon, being retired doesn’t mean slowing down. It means shifting his attention from the career he’s had for the last 30+ years to focusing on reconnecting with his loved ones, pursuing his passions, and simplifying his life by doing more with less.

A self-professed kid at heart, Gordon loves new experiences and adventures. He views retirement as an opportunity to travel the world and accomplish things he’s always wanted to do, checking items off of his bucket list and making unforgettable memories. Refusing to accept his actual age, Gordon gets frustrated when his body can’t keep up with him.

His family, especially his grandchildren, is his world and more than anything else, he loves being able to be involved in their lives. Determined to “be around for a long time”, Gordon works diligently to take care of his body by staying active and eating right.

Lovingly referred to as “old-fashion”, Gordon prefers “face time” interactions and gets frustrated by how technology has changed the way society communicates and interacts with one another. He appreciates that technology allows him to stay connected to those in his life, but feels that isn’t a solution for a lasting relationship and prefers brands that share a similar mindset.

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BRAND IDENTITY & VALUE PROPOSITION:

STARBUCKS FIT Brand Values

Our Brand Promise: To elevate and fuel your journey to living well.

STARBUCKS FIT will help you to be the best version of yourself by guiding, encouraging, and providing healthy opportunities to fit your lifestyle. We are a champion for you being the best version of yourself and a support system for your busy life.

STARBUCKS FIT Brand Personality

ü Supportive (sincerity): You and your family matter. How you fuel your body matters. We recognize and appreciate that it takes hard work, dedication, and a village to accomplish goals, so we strive to be encouraging and accessible whenever you need us.

ü Innovative (sophistication, competence): We understand the larger picture. It’s not just about the people who inhabit this earth, it’s about the world in which we live and like you we want to make the world we live in a better place. Because of this, the products we use are sourced from sustainable food systems and environmentally responsible packaging is used, making more than just the food clean.

ü Dynamic (excitement, ruggedness): Just like you, we have a curious, active soul that is continually evolving, exploring, and needing to be fueled. Constantly hungry for something new, we recognize that growing means always evolving. As the seasons change throughout the year, so will the products being offered on the menu, keeping both the variety and food fresh for you.

STARBUCKS FIT Brand Attributes

ü Consumer Focused: Our consumers are our priority. Through the service we provide and the products we serve, our consumers and the communities we reside in are at the heart of everything we do.

ü Convenient: Available whenever and wherever you need it, STARBUCKS FIT is offered at all Starbucks locations.

ü Environmentally Conscientious: We recognize that our actions impact the communities in which we live and are diligent in doing our part to preserve it.

ü Fresh & Simple: Ingredients should be able to be pronounced, it’s that simple. That’s why we only use quality, fresh, natural ingredients in our products.

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CUSTOMER ENGAGEMENT PLAN:

Utilizing Greg Satell’s objectives model of awareness, sales, and advocacy, the below plan is rooted in engaging with and building relationships with current and potential consumers.

Objective 1: Connect STARBUCKS FIT To Consumer’s Life

Generate awareness and spark interest surrounding STARBUCKS FIT product l ine and offerings.

Strategy 1: ATTENTION

Consumers are more likely to buy products they are familiar with, making brand awareness a key element. In an effort to build intrigue through innovative, engaging experiences that generate awareness surrounding STARBUCKS FIT, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü Sponsorship of Community Events – Support events that positively align with STARBUCKS FIT. These events may include (but are not limited to) local 5K run/walks, outdoor summer concert series, farmer’s markets, local sporting events, and expos.

ü Product Idea Contest – Hold a contest where consumers can create and submit a unique, healthy food option for the upcoming STARBUCKS FIT seasonal menu. Video submissions of contestants making their creations will be uploaded through the STARBUCKS FIT microsite. STARBUCKS FIT will select 10 finalists and post the videos to the STARBUCKS FIT microsite for the public to vote on. The winner of the contest will get their creation featured on the next seasonal menu.

MEDIA:

ü Event promotional assets (i.e. signage, flyers, samples, coupons, etc.) ü Broadcast: national television and local radio ü Display: high-impact and takeover media executions on broad reaching sites ü Social Media: Facebook, Twitter, Instagram

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Strategy 2: EVALUATION

Providing customers convenient platforms in which they can learn more, begin to connect, and provide feedback on their terms is essential to the education and evaluation process. In an effort to spark dialogues and educate target audience members on STARBUCKS FIT, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü STARBUCKS FIT Microsite – A designated platform where current and potential consumers can learn about all of the STARBUCKS FIT product offerings – what they are, how long they will be available for, price point, and nutritional value. Additionally, the product idea contest as well as sponsored and community events STARBUCKS FIT will be participating in will be included on the microsite.

ü Video Series – Create a video series that showcases the different products, educating consumers on where the ingredients are from, the rationale behind the products, and how they’re considered a “fit” product (for example, high in protein). Videos will live on the STARBUCKS FIT microsite, Starbucks YouTube channel, be shared on all social media channels (Facebook, Twitter, and Instagram), and used as pre-roll ads.

MEDIA:

ü Online: standard display, paid search, programmatic media ü Social Media: Facebook, Twitter, Instagram

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Objective 2: Increase Sales Of STARBUCKS FIT Products

Insert STARBUCKS FIT into people’s daily schedule, reaching consumers throughout their day and at their point of purchase.

Strategy 1: RECENCY

Continuously exposing consumers to a brand allows for a powerful presence to be built within the mind of the consumer, staying top-of-mind for when he/she is close to or at the point of purchase. In an effort to deliver continuity, thus staying top of mind with consumers, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü Dedicated Social Media Pages – Create and maintain dedicated STARBUCKS FIT Facebook, Twitter, and Instagram pages where images, tips, stories, and/or videos pertaining to STARBUCKS FIT products will be posted. Posts on each platform to include a call to action and will be made on a daily basis.

ü Emails – Connect and engage with consumers on a constant basis via newsletters, thank you emails, surprise emails, and exclusive deal emails (ex. coupons or rewards for sharing). Emails to include a call to action button (with the exception of thank you emails) and be sent out no more than 3x per week to avoid being obnoxious to consumers.

MEDIA:

ü Online: standard display on contextually relevant sites, retargeting, programmatic ü Social Media: Facebook, Twitter, Instagram

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Strategy 2: PROXIMITY

Capitalizing on the activities that consumers are already involved in allows brands to interact and reach target audience members where they are. In an effort to increase interactivity and align STARBUCKS FIT into consumers daily schedule, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü Store Locations – Utilize inside and outside of Starbucks locations to tout the ubiquity and accessibility of STARBUCKS FIT.

ü Partners (Baristas) – Educate partners on all STARBUCKS FIT products at all Starbucks locations so they are equipped to answer any questions, help, and educate customers.

ü Guerril la Marketing/Street Teams – Directly engage with potential consumers through the utilization of brand ambassadors. Wearing branded attire (shirts, hats, aprons, etc.), brand ambassadors would hand out STARBUCKS FIT promotional materials (i.e. coupons, tchotchkes) and samples to potential consumers walking by and/or near Starbucks locations in high traffic areas during peak hours (i.e. downtown locations at the beginning or end of work day).

MEDIA:

ü In-store signage ü Out-of-home billboards ü Street team assets (i.e. samples, coupons, tchotchkes etc.) ü Mobile: location based targeting ü Social Media: Facebook, Twitter, Instagram

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Objective 3: Cultivate A Community Of Advocates

Create and nourish an environment in which STARBUCKS FIT can positively connect and interact with consumers, building a network of brand advocates.

Strategy 1: VALUE EXCHANGE

According to Greg Satell, “Brand value exchange has become a crucial component of the post-promotional paradigm. Brands, if they are to gain share of synapse, must create connections that transcend a purchase.”4 In an effort to create intangible value, forging an emotional connection, inspiring and supporting consumers in their everyday life, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü STARBUCKS FIT Loyalty Program – Create incentive based initiatives that encourage consumers to participate and purchase products. Consumers enrolled will have access to exclusive deals as well as the opportunity to partake in a variety of “dashes” that will range from purchasing so many STARBUCKS FIT products in an allotted amount of time to participating in activities or events (ex: checking in at a local fair that STARBUCKS FIT is sponsoring). Prizes will include free STARBCUCKS FIT products.

ü Partners (Baristas) – Employees to provide exceptional customer service to consumers before, during, and after the point of purchase. Individuals should act personable, respectful, helpful, and kind.

MEDIA:

ü Mobile App ü Mobile: display ü STARBUCKS FIT Microsite

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Strategy 2: COMMUNITY

By focusing on the local community, customers and employees will not only be happier, but also proud to be associated with the brand, resulting in greater successes for the company. In an effort to build unique opportunities to connect with consumers that encourage sharing, exploring, and growth, the following touchpoints and media are recommended:

TOUCHPOINTS:

ü Community Outreach – Organize projects for employees to partake in that enrich the local community. Projects may include (but are not limited to) litter pick-up at a local park, clean off graffiti from buildings, host a clothing drive, canned food drive, book drive, or block party, and plant trees.

ü Dedicated Social Media Pages – Connect and engage with consumers on dedicated Facebook, Twitter, and Instagram pages. In addition to responding to consumer questions, comments, and/or concerns that are posted, fun, light-hearted, encouraging posts and invitations to join/participate in community outreach projects will be posted.

MEDIA:

* No Paid Media within this touchpoint

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MESSAGE CONTENT:

Messages and incentives are utilized to engage with current and potential consumers, shaping the perception and connection they will hold of STARBUCKS FIT. Because of this, it is important that all messages and incentives align with the values and attributes of the brand as defined within the brand’s identity (see page 7).

The following messages and/or incentives will be employed to engage with customers at each touchpoint:

ATTENTION

In an effort to raise awareness, both messages and incentives will be utilized to create engaging experiences between STARBUCKS FIT and consumers.

ü Sponsorship of Community Events

o Message: Convey to consumers that STARBUCKS FIT aligns with events that they are invested in. For example, “We support and share the same passions and interests as you.”

o Incentive: Add value to the consumer’s experience by offering free samples and coupons at events.

ü Product Idea Contest

o Message: Engage with consumers, encouraging them to be a part of the brand. For example, “Create a unique, healthy food option to be featured in our upcoming seasonal menu. For details, go to www.starbucksfit.com.”

o Incentive: Add value to consumer’s experience by providing the opportunity to have his/her creation featured on the menu.

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EVALUATION

Provide opportunities for consumers to learn what STARBUCKS FIT is and has to offer, utilizing messages to encourage them to consider STARBUCKS FIT the next time they are looking for a quick, healthy food/beverage.

ü STARBUCKS FIT Microsite

o Message: Communicate what STARBUCKS FIT is and what the brand has to offer. For example, “Here are our current menu items, nutritional facts, and what makes this item unique to the STARBUCKS FIT menu.”

ü Video Series

o Message: Inform consumers about the ingredients and creation of each product offered. For example, “In our Avocado Watermelon Salad, the avocados and watermelon are sourced from California.”

RECENCY

Frequently connect and engage with consumers through messages and incentives, reminding them of what STARBCUCKS FIT is and has to offer, building value and staying top-of-mind with consumers.

ü Dedicated Social Media Pages

o Message: Communicate the different STARBUCKS FIT products currently offered. For example, “Come try our Superfood Fresh Fruit Salad with strawberries, kiwi, and blueberries.”

ü Emails

o Incentive: Appeal to consumers by sharing limited time offers, adding value through a price reduction. For example, “Stop by any location for a special STARBUCKS FIT Mother’s Day Weekend 2-for-1 deal.”

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PROXIMITY

Interact and engage with consumer in settings they are already in, relating STARBUCKS FIT to their schedule and lifestyle.

ü Store Locations

o Message: Showcase STARBUCKS FIT product offerings within store, signifying to consumers that STARBUCKS FIT products are sold at that location.

ü Partners (Baristas)

o Message: Educate employees about STARBCUKS FIT products so they may properly help consumers. Informed employees will lead to informed consumers.

ü Guerril la Marketing/Street Teams

o Message: Engage with consumers, highlighting the proximity to Starbucks locations. Fox example, “STARBUCKS FIT products are just around the corner!”

o Incentive: Add value to the consumer’s experience by offering free samples and coupons for 50% off one STARBUCKS FIT item.

VALUE EXCHANGE

Nurture and develop the brand-consumer relationship, creating connections through incentives and messages (actions) to reaffirm consumer’s positive experience(s).

ü STARBUCKS FIT Loyalty Program

o Incentive: Add value to the consumer’s experience by offering exclusive deals and opportunities to only participants signed up for the loyalty program.

ü Partners (Baristas)

o Message: Provide exceptional service to consumers, showing by example that they matter. For example, welcoming a consumer into the store demonstrates friendliness and kindness.

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COMMUNITY

Build relationships and connections with consumers and communities through actions.

ü Community Outreach

o Message: Actions speak louder than words, so it’s important to demonstrate that STARBUCKS FIT cares about the local community. For example, host a canned food drive and invite consumers and local communities members to join STARBUCKS FIT partners (employees) in donating canned goods which will then be donated to a local food bank.

ü Dedicated Social Media Pages

o Message: Express gratitude and show attention to consumers, deepening the brand-consumer relationship. Respond to consumer questions, comments, and/or concerns in a kind and respectful manner. For example, “We appreciate your feedback and are looking into how we can improve.”

o Message/Incentive: Engage with consumers, inviting them to join and participate in events that STARBUCKS FIT is a part of; incentivizing them to forge a connection with STARBUCKS FIT. For example, “Join us at Volunteer Park on Earth Day to plant trees! We’ll have FIT snacks for the whole family!”

o Incentive: Feature consumer’s posts and do “shout-outs” on STARBUCKS FIT social media pages, adding value to consumer’s experience by showcasing their original posts.

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LONG-TERM RELATIONSHIP BUILDING:

Building successful long-term relationships is about finding a balance between giving and taking, making it more of a partnership than a relationship. As a brand, we must always be evolving, growing from the feedback received and working to improve not only STARBUCKS FIT, but also ourselves.

To be successful, STARBUCKS FIT must strive to maintain an open dialogue with consumers, providing value that goes beyond offering healthy food and beverage options; all while staying true to our brand values and promise.

In an effort to build sincere, lasting, supportive, meaningful partnerships with consumers, STARBUCKS FIT must always:

ü Be Authentic

ü Be Encouraging

ü Exemplify Shared Goals and Values

ü Be Personable

ü Be Respectful

ü Be A Resource

ü Be Responsive

Our Brand Promise: To elevate and fuel your journey to living well.

STARBUCKS FIT will help you to be the best version of yourself by guiding, encouraging, and providing healthy opportunities to fit your lifestyle. We are a champion for you being the best version of yourself and a support system for your busy life.

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REFERENCES: 1. D Court, D Elzinga, S Mulder, O Vetvik. (2013, June). The Consumer Decision Journey [Web log

post]. Retrieved from http://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-consumer-decision-journey

2. G Satell. (2013, April 3). Rethinking Marketing Strategy For The Digital Age [Web log post].

Retrieved from http://www.digitaltonto.com/2013/rethinking-marketing-strategy-for-the-digital-

age/

3. D Christou. (2015, October 26). Native Advertising: Content Marketing catered to the modern,

savvy consumer [Web log post]. Retrieved from http://www.mckinsey.com/business-

functions/marketing-and-sales/our-insights/the-consumer-decision-journey

4. G Satell. (2012, February 22). Brand Engagement and Value Exchange [Web log post]. Retrieved

from http://www.digitaltonto.com/2012/brand-engagement-and-value-exchange/

5. http://www.freepik.com/free-vector/healthy-lifestyle-vector_757134.htm'>Designed by

Freepik</a>

6. https://news.starbucks.com

7. https://www.forbes.com/powerful-brands/list/#tab:rank

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APPENDIX – 1:1 INTERVIEWS:

Before we get started, I would like to thank you in advance for your time and participation. The purpose of this interview is to discuss your coffee consumption habits, your likes and dislikes surrounding coffeehouses and Starbucks in particular, your needs and wants pertaining to Starbucks and similar coffeehouses, as well as your purchase behavior.

1. How many days a week do you drink coffee or other caffeinated beverages?

a. What do you typically drink?

2. How many cups of coffee, on average, do you drink in a day?

3. Do you typically make your coffee at home, at work, or buy it from a coffeehouse?

a. Why?

b. If from home, do you have a favorite brand you purchase?

c. If from a coffeehouse, where?

4. What is the biggest factor that plays into buying coffee at a coffeehouse?

5. What word or words comes to mind when you think of Starbucks? Why?

6. What do you like most about Starbucks? Why?

7. What do you dislike most about Starbucks? Why?

8. What deters you from going to Starbucks?

9. What would get you to spend more or shop more often at Starbucks?

10. What would you like to see Starbucks offer that they currently don’t?

11. How does drinking Starbucks coffee make you feel compared to other coffee brands?

12. What do you love most about brands you are loyal to?

13. What would a brand need to do for you to become a loyal customer?

14. What factors do you take into consideration before making a purchase?

15. Would you consider yourself to be more of a saver or a spender? Why?

Persona 1: “HANNAH” – Health Conscious, On-The-Go Young Adult

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a. Why?











12. What do you love and/or appreciate most about brands you are loyal to?


14. How does family-friendly play into the decisions you make in relation to eating out?

15. Can you fill in the blank? If I had ____, I would _____.

Persona 2: “TOM & MOLLY” – Working Parents

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a. Why?











12. What do you love and/or appreciate most about brands you are loyal to?


14. How has your spending habits changed since becoming retired?

15. Can you fill in the blank? If I had ____, I would _____.

Persona 3: “GORDON” – Active, Retired Adult

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APPENDIX - SURVEY:

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Documents

Final IMC Plan - Starbucks · 5 Persona 2: Working Parents From the moment they wake up to the moment they go to bed, their days feel packed to the brim. Between dropping the kids