how online communities help to build a brand: a case study on starbucks’ online communities

How online communities help to build a brand

A case study on Starbucks online communities

Introduction

Starbucks is very savvy at conducting public relations online

Main issue of this case study

What benefits can online communities bring to a company?

Theoretical Frame

Spiral of silence

Word of mouth marketing

Four models of public relations

Spiral of Silence

Elizabeth Noelle-Neumann

The model is based on three premises:◦ a sixth-sense

◦ a fear of isolation

◦ reticent to express their minority views

Word of Mouth Marketing (WOM)

Word of mouth

Word of mouth marketing

Tactics: Buzz Marketing

Viral Marketing

Product Seeding

Blogging

Four models of Public Relations

Press agentry/publicity model

Public Information model

One-way asymmetrical model

Two-way symmetrical model◦ Uses communication to negotiate with publics, resolve conflict, and promote mutual understanding and respect between the organization and its publics.

Background - Starbucks History

◦ Began in 1971,Starbucks were a roaster and retailer of whole bean and ground coffee, tea and spices with a single store in Seattle’s Pike Place Market.

◦ Today, Starbucks have more than 16,000 locations in over 50 countries.

Store◦ Total stores 16,706 (as of Dec. 27, 2009)

◦ 8,850 Company-operated stores.

◦ 7,856 Licensed stores.

◦ Operating in more than 50 countries

Products◦ Coffee

◦ Handcrafted Beverages

◦ Merchandise

◦ Consumer Products

◦ Fresh Food

◦ Brand Portfolio

Background - Starbucks Recognition

◦ One of the “100 Best Corporate Citizens”

Corporate Responsibility Officer/Business Ethics –

2000-2009

◦ One of the “World’s Most Ethical Companies”

Ethisphere – 2007-2009

◦ One of “The 100 Best Companies to Work For”

FORTUNE – 1998–2000, 2002–2009

◦ One of the “Most Admired Companies in America”

FORTUNE – 2003–2009

◦ One of the “Best Places to Work for LGBT Equality”

The Human Rights Campaign – 2009

◦ Among the “100 Best Global Brands”

BusinessWeek – 2001-2008

◦ One of “World’s Most Respected Companies”

Financial Times – 2005-2006

Background-Peek Data analyse

The Demographic view of Starbucks group by Peek Data

Previous PR practices

Starbucks entertainment Music

Book

Movie

Research Questions

How does Starbucks conduct its public relations online?

How does public respond to Starbuck’s online communities?

What benefits do these online communities bring to Starbucks?

Research Method

Googling “Coffee”

Googling “Starbucks”

Visit and observe the Starbucks’ online communities

Gather information from other websites and articles about Starbucks

google

Main Websites

Case description and interpretation

Twitter

Facebook

Youtube

Online attack

I hate Starbucks

Stop Starbucks

Starbucks sucks

Starbucks response

Starbucks hadn't spent much time responding to Stop Starbucks because their campaign didn't gain much traction from Starbucks Twitter, Facebook, or MyStarbuckscommunity.

“Allow your workers to unionize” was the title of a post in My Starbucks community, where each vote for an idea nets 10 points. As of today, the post has only gotten 40 points and 8 comments.

By contrast, an idea about Dark Chocolate beverages got 5040 points and 38 comments. And one about the size of lids on cups got 40 points.

Conclusion 1

Online community can balance the negative views.

Starbucks V2V

Shared Planet

Conclusion 2

Online community can build healthy, ethical image of a company

MyStarbucks Idea

Participation in action

Conclusion 3

Encourage the conversation between the company and customers, smooth mutual understanding and it will help to maintain the customer loyalty and promote the product and service

Buzz Marketing

Starbucks entertainment

Starbucks in movies

Viral Marketing

Product Seeding

Blogging

Starbucks philosophy

Strategy keynote in Social Media Influence 2010 conference

It’s about relationship, not marketing

Be authentic Don’t outsource your

voice Social fits within a

larger digital and integrated world

Leading to powerful results

Build a coalition Thoughtfully deputize Make a commitment Ask for forgiveness,

not for permission Become a content

archeologist Opening new ways to

engage

“All you need is LOVE” - Starbucks' worldwide Red project for AIDS in Africa

http://www.youtube.com/watch?v=7JHAXqwRGoI&feature=player_embedded

Starbucks va por un Shared Planet

http://www.youtube.com/watch?v=cATlANMv6uk

Conclusion 4

Attract more publicity for free, engage in greater cause and win more customers in return

Conclusion

Online communities are building Starbucks’ company image in the following ways: Flood negative news and unfavorable opinions

Fulfill CSR online, build healthy image

Maintain customer loyalty and promote the product and service

Boost free publicity, add extra value to a company’s culture and attract more customers

Thank you for your attention!