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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
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 MyStarbucks
    community.

   “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
    Starbucks entertainment
                     Starbucks in movies




Buzz Marketing
Viral Marketing
Product Seeding
Blogging
Starbucks philosophy
Strategy keynote in Social Media
Influence 2010 conference
 It’s about relationship,  Build a coalition
  not marketing             Thoughtfully deputize
 Be authentic              Make a commitment
 Don’t outsource your      Ask for forgiveness,
  voice                      not for permission
 Social fits within a      Become a content
  larger digital and         archeologist
  integrated world          Opening new ways to
 Leading to powerful        engage
  results
“All you need is LOVE”
- Starbucks' worldwide Red project for AIDS in Africa




   http://www.youtube.com/watch?v=7JHAXqwRGoI&f
    eature=player_embedded
Starbucks va por un Shared Planet




   http://www.youtube.com/watch?v=cATlA
    NMv6uk
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!

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How online communities help to build a brand: A case study on Starbucks’ online communities

  • 1. How online communities help to build a brand A case study on Starbucks online communities
  • 2. Introduction  Starbucks is very savvy at conducting public relations online
  • 3. Main issue of this case study  What benefits can online communities bring to a company?
  • 4. Theoretical Frame  Spiral of silence  Word of mouth marketing  Four models of public relations
  • 5. 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
  • 6. Word of Mouth Marketing (WOM)  Word of mouth  Word of mouth marketing  Tactics:  Buzz Marketing  Viral Marketing  Product Seeding  Blogging
  • 7. 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.
  • 8. 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
  • 9. 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
  • 11. The Demographic view of Starbucks group by Peek Data
  • 12.
  • 13. Previous PR practices  Starbucks entertainment  Music  Book  Movie
  • 14. 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?
  • 15. Research Method  Googling “Coffee”  Googling “Starbucks”  Visit and observe the Starbucks’ online communities  Gather information from other websites and articles about Starbucks
  • 18. Case description and interpretation
  • 26. 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 MyStarbucks community.  “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.
  • 27. Conclusion 1  Online community can balance the negative views.
  • 30.
  • 31. Conclusion 2  Online community can build healthy, ethical image of a company
  • 34. 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
  • 35. Starbucks entertainment  Starbucks in movies Buzz Marketing
  • 40. Strategy keynote in Social Media Influence 2010 conference  It’s about relationship,  Build a coalition not marketing  Thoughtfully deputize  Be authentic  Make a commitment  Don’t outsource your  Ask for forgiveness, voice not for permission  Social fits within a  Become a content larger digital and archeologist integrated world  Opening new ways to  Leading to powerful engage results
  • 41. “All you need is LOVE” - Starbucks' worldwide Red project for AIDS in Africa  http://www.youtube.com/watch?v=7JHAXqwRGoI&f eature=player_embedded
  • 42. Starbucks va por un Shared Planet  http://www.youtube.com/watch?v=cATlA NMv6uk
  • 43. Conclusion 4  Attract more publicity for free, engage in greater cause and win more customers in return
  • 44. 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
  • 45. Thank you for your attention!