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This is a case study of Starbucks online communities aiming to find out how does Starbucks conduct public relations online. The analysis of Starbucks’s online communities reaches following conclusions: (1) Online communities can flood negative news and unfavorable opinions. (2) A company can build a healthy image by fulfilling CSR through online communities. (3) Online communities help to maintain customer loyalty and promote the product and service. (4) Online communities can boost free publicity, add extra value to a company’s culture and attract more customers. Overall, the investigator concluded that online communities have potential to surpass the traditional public relations media and play a significant role in establishing a brand.To be notified, all the research information are collected online.
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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
Main Websites
Case description and interpretation
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
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!
