Starbucks case study
- 2. • Starbucks is an American company and coffeehouse chain, known for its coffee made of high quality beans. • With around 24000 outlets worldwide and 17 billion $ annual revenue , it is one of the largest coffeehouse chains in the world.
- 3. • Starbucks has provided comprehensive health insurance to all employees and a stock option plan for them , contributing an extremely sincere and hardworking workforce.
- 4. • Starbucks is a top firm of endearment, They pay their employees more and give back to communities in which they work. • Due to this they spend less marketing as the customers who love them do all the marketing.
- 5. • Created Starbucks foundation, which has contributes to public welfare mainly by supporting literacy programs in USA and Canada and charities worldwide. • In 2013 it donated $8.7 million.
- 6. • Starbucks collaborates with Conservation International (CI), and follows coffee and farmer equity practices. • Of 396 million pounds of coffee bought 95% was ethically sourced.
- 7. • Starbucks is considered a leader in green initiatives and innovation, such as recycled beverage cups, building new LEED-certified green buildings, reducing waste and improving water conervation.
- 8. DO CONSUMERS BELIEVE STARBUCKS IS • Yes, Starbucks openlydisplays itscommitmenttobeingsocially responsible and wantsits customersto knowexactlyhow Starbucks is doing so. • It plastersits missionstatementandvalues on the wallsof many of thestores,it prints factsontoitscoffeecups, it dedicates countlesspages on the companywebsiteto itsresponsibility, and Starbucks even compilesan annualreport dedicatedtoits corporate social responsibility.
- 9. WHICH PROGRAMS SHOULD IT SUPPORTAND BY WHAT AMOUNT? • Companies like Starbucks draw their lineon supporting only those socially responsible programs where its consumers find it relatable enoughto not tarnish its own brand image. • First focus of employees should always beconvinience and service as only CSR wont attract customers, as customers see it as somethingadditional.
- 10. RESULTS • With its social presence and extensive advertising and propaganda about it, Starbucks definitely emerged as a successful brand. • Even thoughtheproducts become expensive due to environmentfriendly products usage, but stillconsumers are preferring it because they believe it is consistentand sufficientlyresponsible.
- 12. ETHOS WATER • Ethos Water, a Starbucks subsidiary, is a brand of bottled water with a social mission of "helping children get clean water. • Five cents from the sale of each bottle goes to clean up the world’s water supply. • This ultimately increased its sales, even by donating 5 cents per bottle, they are actually earning more.
- 13. PRODUCT(RED) • Product Red, styled as (PRODUCT)RED, is a licensed brand that seeks to engage the private sector in raising awareness and funds to help eliminate HIV/AIDS in Africa. • Another special feature being its is a combined initiative of multiple brands, increasing its consumer base even more. • People who are using other brands, become aware of Starbucks presence, hence an increase in customer base for starbucks.
- 14. RESULTS • Most of Starbucks’ programs are simple purchase-triggered donationprograms expertly executedin its stores, also makingan increase inshort term as well as for long term sales. • More thanappreciation of its high-qualityproducts, customers feel connected to thebrands, hence an overall increase in loyal customer market segment.
- 15. • Starbucks is proud of its excellent service, From WiFi and the in-store Starbucks Digital Network to mobile payment and digital music downloads, they have always tried to anticipate customers' needs early in the adoption curve and provide a world-class solution
- 17. RED CUP CONTROVERSY • Starbucks issued red cups during Christmas vacations, which contained designs only related to winter and not Christmas. • This triggered a trend, ‘#Itsjustacup’ and was found as offensive by Christian customers and some even declared it a ‘war on Christmas’ , found it aimed to destroy Christmas. • This proved severely detrimental to the brand’s image.
- 20. Summary
- 21. Disclaimer • Created by Sarang Pande, IIT Guwahati during marketing internship by prof. Sameer Mathur, IIM lucknow.