Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create All tools Edit Convert Sign e ΑΙ Sign in Find text or tools Q | Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). or e-mail. Customers could make payments either through American multinational financial technology company PayPal Holdings Inc. or the Starbucks app for mobile phones. The recipients could print the card and shop at Starbucks physical store or transfer the gift amount to their Starbucks card or Starbucks gift card. Another popular idea suggested by a customer and implemented by Starbucks was introducing Splash sticks – a plastic guard which prevented coffee from spilling out of the hole in the lid of the coffee cup. Starbucks had a blog known as ‘Ideas in Action' where the employees personally gave a response to the ideas given by the consumers. The consumers were also notified when their ideas were put to use in the stores. The My Starbucks Idea initiative helped the company in building a robust fan base. By giving customers a platform for voicing their ideas, the coffee giant reignited brand trust among its consumers. After the initial success of the platform, Senior Vice President and Chief Marketing Officer at Starbucks Chris Bruzzo (Bruzzo) and his team started looking for other channels where consumers were having online conversations. According to Bruzzo, "We asked ourselves the question, 'Where else (online) are our customers hanging out?' That led us to Facebook and Twitter. We went there because that's where the customers are. We learned what mattered to our ,,23 customers in these environments. My Starbucks Signature A trend setting idea initiated by Starbucks was letting customers personalize their offerings through its My Starbucks Signature initiative. Under the initiative, consumers could make their own signature drink (hot or cold coffee), name the drink, and share the new flavor with the community. This initiative increased interest among consumers about the Starbucks brand. Social Media Starbucks had a huge presence on American multinational technology company Facebook Inc., Twitter, and Instagram". The coffee giant uploaded videos, blog posts, promotions, special deals, etc. on these social media sites. Starbucks also posted videos on American online video sharing platform YouTube and American video hosting and image hosting service Flickr. The company was also active on LinkedIn' and Google+. In 2013, Starbucks launched a Tweet-a-Coffee campaign on Twitter in a bid to gain brand recognition on social media. Under the campaign, Starbucks asked users to tag the accounts of their friends on Twitter “@tweetacoffee”, in return for a US$5 coupon by the company. This campaign enabled Starbucks to directly interact with the users. g Twitter is an American micro blogging and social networking service. As of October 30, 2021, Starbucks had 10.9 million followers on Twitter. h 1 Instagram is an American photo and video sharing social networking service. As of October 30, 2021, Starbucks had 17.7 million followers on Instagram. LinkedIn is an American business and employment-oriented online service. j Google+ is a social networking site developed by search engine giant Google Inc. where it advertised jobs available at Starbucks stores. 7 1479 APR 4 20 P C 1:1 □ Q e ΑΙ Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create All tools Edit Convert Sign 1479 APR Loyalty Program In April 2008, Starbucks launched its loyalty program called My Starbucks Rewards, which was managed electronically. Consumers using this card to make a purchase at Starbuck stores earned stars which could later be redeemed for a drink. The rewards program had several levels which offered the consumers some extra benefits (See Exhibit IV for Starbucks Rewards program). e-commerce Site In 2008, Starbucks launched its e-commerce site starbucks.com through which the company sold its products such as coffee, tea, and Starbucks equipment and merchandise online. For several years, the online store had been in operation with a shopping cart known as My Bag. In August 2011, the coffee giant redesigned the site to make shopping easier and more convenient for the consumers. Customers could also schedule deliveries of the items they ordered online. According to Stephen Gillett, chief information officer and executive vice president of Digital Ventures at Starbucks, “The redesign of Starbucks Store was driven by customer feedback, and we're excited to share some of the best products from across the company with customers and give them the opportunity to shop online when it's most convenient for them. Customers shopping on the new e-commerce site Starbucks Store.com received exclusive promotions from Starbucks and could purchase products which were not available at Starbucks stores such as electrical brewing equipment, loose leaf Tazo teas, Starbucks Natural Fusions, etc. Mobile app ,,24 In 2009, Starbucks forayed into the mobile arena by launching the my Starbucks app for iPhone* as a pilot program in 16 Starbucks stores in the US. With the mobile app offered by Starbucks, consumers could connect to and reload their loyalty cards. The app allowed consumers to get to know the various kinds of coffees the company offered, locate the nearest store using the geo- location feature on the app, know the opening hours of the stores, and also make their own drinks. Customers could either pay through prepaid cards at Starbucks stores or through the mobile app from their phones at the stores by selecting 'touch to pay' and holding up the barcode on the device to a scanner at the register. The mobile app used ML algorithms and provided customers with personalized recommendations for additional products they might want to buy based on their purchase history. Starbucks said that the personalization initiative was one the biggest drivers of improved customer spend. The app also maintained details of consumers' favourite orders and suggested what food items would pair well with the order placed by the consumer. The app offered a free beverage on the consumer's birthday registered with the company's Starbucks rewards program. It also gave the users some 'challenges' that helped them earn stars which could be redeemed later for free food and drinks. The rewards program also offered some benefits to the app user such as special member offers, free in-store refills, etc. Following a successful test run in its stores, Starbucks made a nationwide rollout of the Starbucks mobile app in January 2011. The app allowed consumers to pay for purchases at Starbucks stores through their mobile phones at nearly 6,800 company-operated stores in the US. 25 Consumers using this app could present an on-screen version of their prepaid loyalty card at the store and add funds to their app online on their mobile phones or in stores. The company promoted its app through mobile display advertisements in a bid to raise awareness among consumers. 4 20 P άtv A W Д O Ο Canva Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). Sign in Find text or tools Q | • NEW 8 17 < > C 1:1 + Q 品

Foundations of Business (MindTap Course List)
6th Edition
ISBN:9781337386920
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Chapter16: Mastering Financial Management
Section: Chapter Questions
Problem 1DQ
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In detail speak to digital transformation at Starbucks. To what extent was it successful? What else needs to be done? Looking at the Starbucks case study. 

Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create
All tools
Edit
Convert Sign
e
ΑΙ
Sign in
Find text or tools Q |
Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS).
Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515.
Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT).
or e-mail. Customers could make payments either through American multinational financial
technology company PayPal Holdings Inc. or the Starbucks app for mobile phones. The recipients
could print the card and shop at Starbucks physical store or transfer the gift amount to their
Starbucks card or Starbucks gift card.
Another popular idea suggested by a customer and implemented by Starbucks was introducing
Splash sticks – a plastic guard which prevented coffee from spilling out of the hole in the lid of the
coffee cup.
Starbucks had a blog known as ‘Ideas in Action' where the employees personally gave a response
to the ideas given by the consumers. The consumers were also notified when their ideas were put
to use in the stores.
The My Starbucks Idea initiative helped the company in building a robust fan base. By giving
customers a platform for voicing their ideas, the coffee giant reignited brand trust among its
consumers. After the initial success of the platform, Senior Vice President and Chief Marketing
Officer at Starbucks Chris Bruzzo (Bruzzo) and his team started looking for other channels where
consumers were having online conversations. According to Bruzzo, "We asked ourselves the
question, 'Where else (online) are our customers hanging out?' That led us to Facebook and
Twitter. We went there because that's where the customers are. We learned what mattered to our
,,23
customers in these environments.
My Starbucks Signature
A trend setting idea initiated by Starbucks was letting customers personalize their offerings
through its My Starbucks Signature initiative. Under the initiative, consumers could make their
own signature drink (hot or cold coffee), name the drink, and share the new flavor with the
community. This initiative increased interest among consumers about the Starbucks brand.
Social Media
Starbucks had a huge presence on American multinational technology company Facebook Inc.,
Twitter, and Instagram". The coffee giant uploaded videos, blog posts, promotions, special deals,
etc. on these social media sites. Starbucks also posted videos on American online video sharing
platform YouTube and American video hosting and image hosting service Flickr. The company
was also active on LinkedIn' and Google+.
In 2013, Starbucks launched a Tweet-a-Coffee campaign on Twitter in a bid to gain brand
recognition on social media. Under the campaign, Starbucks asked users to tag the accounts of
their friends on Twitter “@tweetacoffee”, in return for a US$5 coupon by the company. This
campaign enabled Starbucks to directly interact with the users.
g Twitter is an American micro blogging and social networking service. As of October 30, 2021, Starbucks
had 10.9 million followers on Twitter.
h
1
Instagram is an American photo and video sharing social networking service. As of October 30, 2021,
Starbucks had 17.7 million followers on Instagram.
LinkedIn is an American business and employment-oriented online service.
j Google+ is a social networking site developed by search engine giant Google Inc. where it advertised
jobs available at Starbucks stores.
7
1479
APR
4
20
P
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7
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Transcribed Image Text:Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create All tools Edit Convert Sign e ΑΙ Sign in Find text or tools Q | Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). or e-mail. Customers could make payments either through American multinational financial technology company PayPal Holdings Inc. or the Starbucks app for mobile phones. The recipients could print the card and shop at Starbucks physical store or transfer the gift amount to their Starbucks card or Starbucks gift card. Another popular idea suggested by a customer and implemented by Starbucks was introducing Splash sticks – a plastic guard which prevented coffee from spilling out of the hole in the lid of the coffee cup. Starbucks had a blog known as ‘Ideas in Action' where the employees personally gave a response to the ideas given by the consumers. The consumers were also notified when their ideas were put to use in the stores. The My Starbucks Idea initiative helped the company in building a robust fan base. By giving customers a platform for voicing their ideas, the coffee giant reignited brand trust among its consumers. After the initial success of the platform, Senior Vice President and Chief Marketing Officer at Starbucks Chris Bruzzo (Bruzzo) and his team started looking for other channels where consumers were having online conversations. According to Bruzzo, "We asked ourselves the question, 'Where else (online) are our customers hanging out?' That led us to Facebook and Twitter. We went there because that's where the customers are. We learned what mattered to our ,,23 customers in these environments. My Starbucks Signature A trend setting idea initiated by Starbucks was letting customers personalize their offerings through its My Starbucks Signature initiative. Under the initiative, consumers could make their own signature drink (hot or cold coffee), name the drink, and share the new flavor with the community. This initiative increased interest among consumers about the Starbucks brand. Social Media Starbucks had a huge presence on American multinational technology company Facebook Inc., Twitter, and Instagram". The coffee giant uploaded videos, blog posts, promotions, special deals, etc. on these social media sites. Starbucks also posted videos on American online video sharing platform YouTube and American video hosting and image hosting service Flickr. The company was also active on LinkedIn' and Google+. In 2013, Starbucks launched a Tweet-a-Coffee campaign on Twitter in a bid to gain brand recognition on social media. Under the campaign, Starbucks asked users to tag the accounts of their friends on Twitter “@tweetacoffee”, in return for a US$5 coupon by the company. This campaign enabled Starbucks to directly interact with the users. g Twitter is an American micro blogging and social networking service. As of October 30, 2021, Starbucks had 10.9 million followers on Twitter. h 1 Instagram is an American photo and video sharing social networking service. As of October 30, 2021, Starbucks had 17.7 million followers on Instagram. LinkedIn is an American business and employment-oriented online service. j Google+ is a social networking site developed by search engine giant Google Inc. where it advertised jobs available at Starbucks stores. 7 1479 APR 4 20 P <tv A W Д O Canva NEW • 7 17 < > C 1:1 □ Q
e
ΑΙ
Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create
All tools
Edit
Convert Sign
1479
APR
Loyalty Program
In April 2008, Starbucks launched its loyalty program called My Starbucks Rewards, which was
managed electronically. Consumers using this card to make a purchase at Starbuck stores earned
stars which could later be redeemed for a drink. The rewards program had several levels which
offered the consumers some extra benefits (See Exhibit IV for Starbucks Rewards program).
e-commerce Site
In 2008, Starbucks launched its e-commerce site starbucks.com through which the company
sold its products such as coffee, tea, and Starbucks equipment and merchandise online. For
several years, the online store had been in operation with a shopping cart known as My Bag.
In August 2011, the coffee giant redesigned the site to make shopping easier and more
convenient for the consumers. Customers could also schedule deliveries of the items they
ordered online. According to Stephen Gillett, chief information officer and executive vice
president of Digital Ventures at Starbucks, “The redesign of Starbucks Store was driven by
customer feedback, and we're excited to share some of the best products from across the
company with customers and give them the opportunity to shop online when it's most
convenient for them. Customers shopping on the new e-commerce site Starbucks Store.com
received exclusive promotions from Starbucks and could purchase products which were not
available at Starbucks stores such as electrical brewing equipment, loose leaf Tazo teas,
Starbucks Natural Fusions, etc.
Mobile app
,,24
In 2009, Starbucks forayed into the mobile arena by launching the my Starbucks app for iPhone*
as a pilot program in 16 Starbucks stores in the US. With the mobile app offered by Starbucks,
consumers could connect to and reload their loyalty cards. The app allowed consumers to get to
know the various kinds of coffees the company offered, locate the nearest store using the geo-
location feature on the app, know the opening hours of the stores, and also make their own drinks.
Customers could either pay through prepaid cards at Starbucks stores or through the mobile app
from their phones at the stores by selecting 'touch to pay' and holding up the barcode on the
device to a scanner at the register.
The mobile app used ML algorithms and provided customers with personalized recommendations
for additional products they might want to buy based on their purchase history. Starbucks said that
the personalization initiative was one the biggest drivers of improved customer spend. The app
also maintained details of consumers' favourite orders and suggested what food items would pair
well with the order placed by the consumer.
The app offered a free beverage on the consumer's birthday registered with the company's
Starbucks rewards program. It also gave the users some 'challenges' that helped them earn stars
which could be redeemed later for free food and drinks. The rewards program also offered some
benefits to the app user such as special member offers, free in-store refills, etc.
Following a successful test run in its stores, Starbucks made a nationwide rollout of the
Starbucks mobile app in January 2011. The app allowed consumers to pay for purchases at
Starbucks stores through their mobile phones at nearly 6,800 company-operated stores in the
US. 25 Consumers using this app could present an on-screen version of their prepaid loyalty
card at the store and add funds to their app online on their mobile phones or in stores. The
company promoted its app through mobile display advertisements in a bid to raise awareness
among consumers.
4
20
P
άtv
A
W
Д
O
Ο
Canva
Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS).
Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515.
Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT).
Sign in
Find text or tools Q |
•
NEW
8
17
< >
C
1:1
+
Q
品
Transcribed Image Text:e ΑΙ Starbucks Case Study (... X Starbucks Case Study.pdf (SEC... + Create All tools Edit Convert Sign 1479 APR Loyalty Program In April 2008, Starbucks launched its loyalty program called My Starbucks Rewards, which was managed electronically. Consumers using this card to make a purchase at Starbuck stores earned stars which could later be redeemed for a drink. The rewards program had several levels which offered the consumers some extra benefits (See Exhibit IV for Starbucks Rewards program). e-commerce Site In 2008, Starbucks launched its e-commerce site starbucks.com through which the company sold its products such as coffee, tea, and Starbucks equipment and merchandise online. For several years, the online store had been in operation with a shopping cart known as My Bag. In August 2011, the coffee giant redesigned the site to make shopping easier and more convenient for the consumers. Customers could also schedule deliveries of the items they ordered online. According to Stephen Gillett, chief information officer and executive vice president of Digital Ventures at Starbucks, “The redesign of Starbucks Store was driven by customer feedback, and we're excited to share some of the best products from across the company with customers and give them the opportunity to shop online when it's most convenient for them. Customers shopping on the new e-commerce site Starbucks Store.com received exclusive promotions from Starbucks and could purchase products which were not available at Starbucks stores such as electrical brewing equipment, loose leaf Tazo teas, Starbucks Natural Fusions, etc. Mobile app ,,24 In 2009, Starbucks forayed into the mobile arena by launching the my Starbucks app for iPhone* as a pilot program in 16 Starbucks stores in the US. With the mobile app offered by Starbucks, consumers could connect to and reload their loyalty cards. The app allowed consumers to get to know the various kinds of coffees the company offered, locate the nearest store using the geo- location feature on the app, know the opening hours of the stores, and also make their own drinks. Customers could either pay through prepaid cards at Starbucks stores or through the mobile app from their phones at the stores by selecting 'touch to pay' and holding up the barcode on the device to a scanner at the register. The mobile app used ML algorithms and provided customers with personalized recommendations for additional products they might want to buy based on their purchase history. Starbucks said that the personalization initiative was one the biggest drivers of improved customer spend. The app also maintained details of consumers' favourite orders and suggested what food items would pair well with the order placed by the consumer. The app offered a free beverage on the consumer's birthday registered with the company's Starbucks rewards program. It also gave the users some 'challenges' that helped them earn stars which could be redeemed later for free food and drinks. The rewards program also offered some benefits to the app user such as special member offers, free in-store refills, etc. Following a successful test run in its stores, Starbucks made a nationwide rollout of the Starbucks mobile app in January 2011. The app allowed consumers to pay for purchases at Starbucks stores through their mobile phones at nearly 6,800 company-operated stores in the US. 25 Consumers using this app could present an on-screen version of their prepaid loyalty card at the store and add funds to their app online on their mobile phones or in stores. The company promoted its app through mobile display advertisements in a bid to raise awareness among consumers. 4 20 P άtv A W Д O Ο Canva Purchased for use on the Marketing for a Digital World, at University of the Witwatersrand (WITS). Taught by Fanny Saruchera, from 16-Apr-2024 to 21-Apr-2024. Order ref F506515. Usage permitted only within these parameters. This PDF may not be reproduced, stored in a retrieval system, or uploaded to any LLM (e.g. ChatGPT). Sign in Find text or tools Q | • NEW 8 17 < > C 1:1 + Q 品
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