Starbucks Mobile Marketing Campaign: A Flavorful Approach

Jones 0 Leanna Jones Starbucks Inc | 2401 Utah Ave. S., S-CR1, Seattle, WA 98134 STARBUCKS MOBILE MARKETING CAMPAIGN Organically Grown International Flavors

Jones 1 Leanna Jones Professor Gravino Mobile Marketing 23EW1 October 11, 2023 Final Marketing Project I. Needs & Objectives Starbucks is a specialty coffee retailer that began its story in 1971 on the streets of Seattle’s historic Pike Place Market. Today, Starbucks is a worldwide, multi-billion-dollar company that stretches across four continents (Consumption, 2023). Starbucks produces and markets a range of products that are always evolving with trends. Such products include a variety of handcrafted beverages and a diversified line of merchandise. This popular brand has a strategic marketing plan that is used to promote their products and services. Starbucks marketing mix incorporates the four P’s which include product, price, promotion, and place. Starbucks prides themselves in creating high-quality products with fair pricing. “They ensure that the coffee tastes better than its competitors” (Simplilearn, 2023). The prices of the products are recorded to be 25% higher than other brands. Though this is evident, customers are willing to pay for such prices due to the quality of the drinks, food, and merchandise. In relation to the promotion of their products, Starbucks utilizes various channels for marketing their products. The most successful channel for the brand includes their digital presence on social media platforms. Starbucks has millions of fans across its social networks, and they take their social media marketing very seriously. Some of the most used platforms include Facebook, Twitter,

Jones 2 Instagram, and YouTube. Currently, Starbucks tends to use “mobile advertising as part of a multichannel marketing approach for seasonal and new products” (Johnson, 2023). Dunkin’ Donuts is a main competitor to Starbucks as many of us know. Dunkin’ has a digital presence across Twitter, Facebook, Instagram, and Pinterest. The brand has been actively working on creating a colorful and diverse marketing mix that is strong and effective in driving sales. Dunkin’ focuses on product quality, affordable pricing, effective promotion, and strategic placement of stores (Karthikeyan, 2023). Though Starbucks is a bigger company in terms of market capitalization and the number of stores globally, Dunkin’s successes can be attributed to its digital strategy and product innovation. For years the brand has launched “many successful digital campaigns to attract new customers and increase sales” (Ahuja, 2022). As we know, I have partnered with this organization to help devise and market a new product/s that will rightfully adhere to the brand's mission statement. After dedicated months of planning and preparation, we have created a product launch & marketing campaign that is ready to be introduced to the appropriate parties for approval. With that said, we have generated the idea for an organically grown coffee line that incorporates international flavors. A list of international flavors will be introduced to the public for possible production depending on their popularity. An opportunity will be given to consumers to submit a personalized story of their experiences with coffee and different flavors that inspire them. These ideas will be analyzed and processed by the appropriate team within the marketing department. We feel as if this opportunity rightfully promotes the brands' values and interests with a human connection. Our campaign has been segmented into Our campaign focuses on a behavioral segmentation approach, where our customers will be divided into designated groups dependent upon specific behaviors. Such classifications will monitor; usage and purchase behavior, time-based and

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Jones 3 occasion, benefit-driven, and customer loyalty behaviors. This segmentation is crucial to our marketing campaign as it will help us understand how different types of customers will likely use these new products, how engaged they will be, and how long they will remain customers (Heap, n.d.). The goals of this campaign include the following objectives: increase brand awareness, acquire new customers, increase website traffic, increase customer value, boost brand engagement, increase revenue, and improve internal brand. To reach such goals, establishing the proper mobile channels through which we will market the product to our segment should be identified. The channels that would be most appropriate for the campaign include digital advertising, events, and content marketing. Digital advertising and content marketing is going to be a huge topic for our marketing team as the brand has a large presence on Instagram and TikTok (Cucu, 2023). If planned appropriately, our digital marketing team is capable of producing content for the next coming month. All our digital content would be ahead of our messaging strategy. The messaging strategy we have chosen to fulfill includes emotional and sustainable language. The campaign aims to include our customer's stories and memories while incorporating flavors from their heritage into our coffee. With a shift in consumer preferences towards healthier and more sustainable products, we are intentional with our language involving sustainability. Our team feels as though we can properly integrate these messages into our marketing. These strategies are crucial to creating a successful marketing mix that incorporates the appropriate mobile tactics. II. Tactics The mobile marketing campaign that I have been actively working on encompasses a new product line that will be digitally marketed to the public in the upcoming months. A list of

Jones 4 international flavors will be introduced to the public for possible production depending on their popularity. An opportunity will be given to consumers to submit a personalized story of their experiences with coffee and different flavors that inspire them. These ideas will be analyzed and processed by the appropriate team within the marketing department. To properly advertise these products, we have integrated three mobile marketing tactics into our marketing plan that we rule to be the most appropriate. Such strategies include social media marketing, GIFs, video content, and paid social media ads . Each strategy has been carefully catered towards the campaign to generate the highest form of success. Social media platforms will be utilized to reach and engage with target customers, which will increase brand awareness. GIFs and video content will be posted on social platforms like Instagram & TikTok, which will highlight the new product release. Posts will integrate popular trends virally circulating on social media. Finally, paid advertising will be placed on social platforms and specific search engines (google) to reach thousands of people quickly. These ads will boost the awareness of our products and meet our audiences where they are. These ads will populate while consumers are browsing online for products to buy, or while browsing social media. These tactics are commonly used by successful brands and competitors. Mobile marketing tactics have evolved over time. Implementing such methods on social media platforms has been and continuously will be a successful approach to reaching consumers. With our international flavor campaign, we hope to reach a new audience based on the personalized experience generated by consumers. To differentiate our product/s from competitors, we must focus our marketing and advertising on the qualities that separate us from other brands. By giving our customers the opportunity to voice their stories and opinions, new audiences can explore our products and indulge in the flavor profiles. Though the mobile marketing tactics we

Jones 5 will be utilizing are common, it is important that we customize these strategies to the best of our ability. Generating relevant social posts and content is a great way to differentiate ourselves from competitors. Creating creative content is a great way to boost awareness and drive sales. Also, producing targeted digital advertisements is essential to our campaign. We will use this method to send different messages to different consumers, promoting the launch of our product/s. This will likely get our customers to respond to the advertising and engage with our brand. One of the main goals for this campaign is not only to properly promote the new line of products but to help maximize our mobile presence. Our brand is catered towards improving the customer experience and connecting with one another. We do not only wish to drive sales with our new products, but we hope to boost our mobile presence. Currently, we are actively involved on social media platforms, but our focus is targeted more towards the usage of our mobile app. Discounts will be offered on our mobile app that corresponds with the new products launched. This will lure customers to try our new products for a discounted rate, all while using our app. When customers use our app, we can reach customers via push notifications while on-site. Boosting our mobile presence is important to us and we believe the mobile app experience will improve our customer engagement. III. Execution A. Success Metrics When creating an action plan for measuring the effectiveness of our campaign, we must consider the various metrics that need to be audited. Such metrics specific to our digital cam- paign will include; social SEO/trends in searches, total website traffic, traffic from channels, conversion, demographic data, brand awareness, response rate, and pageviews. Along with our

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Jones 6 metric system, various digital tools will assist with our data collection process. This process will monitor & track the performance of our mobile tactics and metrics. We have selected the follow- ing tools: 1. Google Analytics - We will use Google Analytics to track website traffic, user behav- ior, conversion rate, and other important metrics. 2. Hootsuite - We will use Hootsuite to manage our social media channels and track so- cial media metrics such as likes, shares, comments, and engagement rates. 3. SurveyMonkey - We will use SurveyMonkey to conduct surveys and collect feed- back. from our target audience. This will help us understand their preferences, needs, and expectations. 4. Heatmap - We will use heatmap to track user behavior and understand how they inter- act with our website. This will help us optimize our website for a better user experi- ence. 5. HubSpot - We will use HubSpot to manage our email marketing campaigns and trace email open rates, click-through rates, and other important email metrics. Our next step is to integrate these digital tools into our mobile marketing campaign and start collecting data. We will use this data to evaluate the effectiveness of our mobile tactics and make necessary adjustments to improve our campaign performance (Newberry, 2023). For instance, if we find that the conversion rate is low, we will examine the user journey and try to identify any bottlenecks that are hindering conversions. We will optimize the landing pages, improve the call-

Jones 7 to-action, and simplify the checkout process to reduce the bounce rate. Similarly, if we find that the engagement rate on social media is low, we will analyze the content and identify what type of posts resonate with the audience. We will then create more of such content to increase engage- ment. In summary, we will use the data collected to identify areas that need improvement and make necessary adjustments to improve the campaign's performance. B. Success Metrics When it comes to mobile marketing campaigns, several ethical and professional standards should be considered. Firstly, it is important to ensure that all marketing communications are truthful and not misleading. This means that any claims made about the product or service being promoted should be supported by evidence. Additionally, marketers should respect the privacy of consumers and ensure that any personal information collected is used only for the intended purpose and with the consumer's consent. Several regulations must be considered when implementing a mobile marketing campaign. For instance, the Telephone Consumer Protection Act (TCPA) regulates telemarketing calls and text messages and requires that marketers obtain prior express written consent from consumers before sending promotional messages. The CAN- SPAM Act regulates commercial emails and requires that marketers include an opt-out mechanism in all promotional emails (TCN, 2023). In addition to federal regulations, there may also be state-level regulations that should be considered. For instance, some states have laws governing email marketing and require that marketers obtain prior consent before sending promotional emails. To address the ethical and legal considerations for promoting positive brand awareness and ensuring compliance with industry standards and regulations, it is important to develop a

Jones 8 comprehensive marketing plan that considers these considerations. This may include implementing best practices for data collection and use, ensuring that all marketing communications are truthful and not misleading, and obtaining prior consent from consumers before sending promotional messages (Learning, 2023). It is also important to stay up to date with changes in regulations and industry standards and to make necessary adjustments to the marketing plan as needed. This may involve working with legal counsel or industry associations to ensure that the marketing plan follows all relevant regulations and standards. Overall, by taking a thoughtful and ethical approach to mobile marketing, marketers can promote positive brand awareness while also ensuring compliance with regulations and industry standards. C. Next Steps The importance of moving forward with the mobile marketing campaign lies in the fact that mobile devices have become an integral part of people's lives. According to a report by Statista, the number of smartphone users is forecasted to reach 7.33 billion by 2023 (Statista, 2021). This presents a huge opportunity for businesses to reach their target audience through mobile marketing campaigns. By leveraging the power of digital tools and metrics, businesses can create effective mobile marketing campaigns that deliver measurable results. Additionally, mobile marketing campaigns can help businesses stay competitive and relevant in today's digital landscape. The long-term vision of our mobile marketing campaign is to establish our brand as a leader in the industry and increase our market share. We aim to achieve this by creating a strong brand identity, building customer loyalty, and expanding our customer base. By using data- driven insights, we can create personalized and engaging campaigns that resonate with our target

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Jones 9 audience. This will help us build a strong relationship with our customers and increase their lifetime value. Once the mobile marketing campaign has been proven successful, the next step is to expand the current tactics and explore new opportunities. One new mobile marketing tactic that we can implement is mobile app marketing. According to a report by App Annie, consumer spending on mobile apps is predicted to reach $270 billion by 2025 (Udonis, 2023). By creating a mobile app, we can provide our customers with a seamless and personalized experience. We can also leverage the power of push notifications to keep our customers engaged and informed about our latest offerings. Another segment that we can target is the Gen Z audience. According to a report by Forbes, Gen Z is the largest generation, comprising 27% of the global population (Staglin, 2022). This demographic is known for its tech-savviness and mobile-first mindset. By creating campaigns that resonate with this audience, we can tap into a huge market and increase our brand awareness. In summary, mobile marketing campaigns are crucial for businesses to stay competitive and relevant in today's digital landscape. By leveraging the power of digital tools and metrics, businesses can create effective campaigns that deliver measurable results. The long- term vision of our campaign is to establish our brand as a leader in the industry and increase our market share. Once the campaign has been proven successful, we can expand our current tactics and explore new opportunities such as mobile app marketing and targeting the Gen Z audience.

Jones 10 IV. Roadmap Stage 1: This stage will involve setting campaign objectives, defining deliverables, and identifying resources needed to properly execute the campaign. Stage 2: During this stage, the team will create and refine the campaign design, develop prototypes, and conduct testing on digital marketing tools, following evaluation. Stage 3: This stage includes full-scale production, delivery, and installation of the coffee product. Stage 4: Finally, I will be required to monitor the product's performance post- implementation, evaluate feedback, and make any necessary adjustments. Stage One - Planning & Preparation Stage Two - Design & Development Stage Three - Implementation Stage Four - Monitoring & Evaluation

Jones 11 References Ahuja, M. (2022, March 6). Dunkin’ runs on Social Media . Medium. https://medium.com/marketing-in-the-age-of-digital/dunkin-runs-on-social-media- bf4e69a9ce43 Bianchi, T. (2023, April 27). Global Mobile Traffic 2022 . Statista. https://www.statista.com/sta- tistics/277125/share-of-website-traffic-coming-from-mobile-devices/ The Complete Guide to TCPA Compliance . TCN. (2023, June 1). https://www.tcn.com/complete- guide-to-tcpa-compliance/ Consumption . Starbucks Coffee. (2023). https://u.osu.edu/commoditychaincoffee/consumption/#:~:text=Starbucks%20is%20a %20worldwide%2C%20multi,billion%20dollars%20on%20beverages%20alone. Cucu, E. (2023, February 7). Starbucks on Social Media: Strategy Analysis: Socialinsider . Socialinsider Blog: Social media marketing insights and industry tips. https://www.socialinsider.io/blog/starbucks-social-media-strategy/#:~:text=In%20terms %20of%20posting%20frequency,engaging%20channel%20for%20the%20brand. Johnson, L. (2023). Don’t miss Tomorrow’s Retail Industry News . Retail Dive. https://www.retaildive.com/ex/mobilecommercedaily/starbucks-leans-on-mobile- advertising-to-drive-online-in-store-revenue#:~:text=Mobile%20reign&text=More %20specifically%2C%20Starbucks%20tends%20to,fall%20products%20(see%20story). Karthikeyan, A. (2023, May 5). Marketing strategies of Dunkin’ donuts: Brewing up business . StartupTalky.

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Jones 12 https://startuptalky.com/dunkin-donut-marketing-strategies/#:~:text=Dunkin’%20Donuts %20has%20been%20successful%20in%20leveraging%20the%20marketing %20mix,breakfast%20lovers%20around%20the%20world. Learning, L. (2023). Introduction to business . Promotion: Integrated Marketing Communication (IMC) | Introduction to Business. https://courses.lumenlearning.com/suny-wmopen-in- trobusiness/chapter/promotion-integrated-marketing-communication-imc/ Mobile marketing trends for 2023 - Udonis . Udonis Mobile Marketing Agency. (2023, March 7). https://www.blog.udonis.co/mobile-marketing/mobile-marketing-trends-in-2020/ Newberry, C. (2023, August 14). How to track social media in Google Analytics (beginners start here!) . Social Media Marketing & Management Dashboard. https://blog.hootsuite.com/ tracking-social-media-in-google-analytics/ Shuttleworth, L. (2023, September 29). Mobile marketing: 12 powerful strategies & the ultimate guide [2023] . P2P marketing. https://peertopeermarketing.co/mobile-marketing-strategy/ Simplilearn. (2023, February 20). Exploring Starbucks marketing strategy: The Success Secret: Simplilearn . Simplilearn.com. https://www.simplilearn.com/tutorials/marketing-case- studies-tutorial/starbucks-marketing-strategy Staglin, G. (2022, October 12). The future of work depends on supporting gen Z . Forbes. https://www.forbes.com/sites/onemind/2022/07/22/the-future-of-work-depends-on-sup- porting-gen-z/?sh=34aa55c2447a

Jones 13 Why You Should Start Using Behavioral Segmentation . Heap. (n.d.). https://www.heap.io/topics/why-you-should-start-using-behavioral- segmentation#:~:text=Behavioral%20segmentation%20is%20a%20powerful,long%20they %20might%20remain%20customers .

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