Tag: starbucks
Starbucks and Social Media
by Marco Padovani on Oct.06, 2009, under Strategic Consulting
As everyone knows, social media is an absolute must for any marketer today. It’s more important than measured media advertising, traditional customer service, and just about every classic marketing technique.
Everyone also knows that Starbucks is a case study example of how to do social media well. It has almost 200,000 Twitter followers, nearly 1.5 million Facebook fans, and a large, active blog. It regularly tweets, posts, and comments.
Except year-over-years same-store sales at Starbucks continue to decline. They’ve declined each quarter this year, even as their social media program has shined. On the other hand, social media wannabes like McDonald’s have continued to see sales increases based principally on good classic advertising and other marketing techniques.
The point here is not that social media marketing does not work; rather, the point is that it is just a tool in a company’s marketing bag, not an end in and of itself. Starbucks sells the experience of hand-made premium coffee at its many coffee houses. Just because they get a lot of people communicating with them online does not necessarily sell more coffee. (And, in fact, it hasn’t.)
Domus is a Philadelphia-based marketing communications agency. Please visit our web site at http://www.domusinc.com for more information.
Branding Risk by Starbucks
by Marco Padovani on Sep.29, 2009, under Branding
Starbucks is launching a major marketing campaign for its new instant coffee, Via. A major part of the roll out is a huge taste test throughout their 7,500 cafes in the US and Canada.
One possible problem with this introduction, though, is how it impacts the Starbucks brand position. Starbucks became successful by selling an experience and an image. Otherwise, why pay so much money for a product that can be gotten elsewhere for much less? Now, though, Starbucks is starting a huge campaign to convince people that they can’t taste the difference between a fresh-brewed coffee in one of their cafes and some powder added to hot water. The more successful the campaign, the more Starbucks will convince people that there is no need to return to their cafes.
Domus, Inc. is a marketing consulting firm based in Philadelphia. Please visit our web site at http://www.domusinc.com for more.




