DIGITAL

MARKETING
PLAN
Table of
Contents

Executive Summary

Company Overview

SOSTAC: Situation Analysis- Evaluation of Digital Marketing Environment

SOSTAC: Marketing Objectives

SOSTAC: Marketing Strategy

SOSTAC: Digital Tools and Tactics

SOSTAC: Action Plan

SOSTAC: Control

References

Appendix
 EXECUTIVE SUMMARY
RY
COMPANY PROFILE
RY

Starbucks Corporation is a multinational company specializing in coffee and coffeehouse chains.

The company was founded in Seattle, Washington, in 1971 by Jerry Baldwin, Zev Siegl, and
Gordon Bowker (Musonera, 2021). Starbucks has grown to become one of the world's largest
coffeehouse chains, with over 32,000 locations worldwide as of 2021.

Starbucks' mission statement is "to inspire and nurture the human spirit – one person, one cup
and one neighborhood at a time" (Starbucks, 2023). The company strives to achieve this by
offering high-quality, ethically sourced coffee and creating a welcoming atmosphere in its stores.
Starbucks is also committed to sustainability and has set ambitious goals to reduce its
environmental impact, including a commitment to serve 100% sustainably sourced coffee by
2025 (Bianco, 2020; Holt & Corado, 2021).

In addition to its coffee offerings, Starbucks serves a variety of food and beverage items,
including tea, pastries, sandwiches, and snacks. The company also offers a rewards program for
frequent customers, as well as a mobile app for ordering and payment.

Starbucks has become known for its distinctive branding and logo, featuring a green mermaid
with a crown. The company's marketing campaigns often focus on creating an emotional
connection with customers, emphasizing the idea of Starbucks stores as a "third place" between
home and work where people can relax and connect with others (Liu et al., 2021).

Starbucks has become an iconic brand associated with high-quality coffee and a unique customer
experience, with a strong commitment to sustainability and community involvement.
SITUATION ANALYSIS

PEST ANALYSIS
The PEST model below is an analysis of the digital environment of different countries such as
UK, USA, Indonesia, Germany etc., where Starbucks operates. The analysis also helps to inform
the techniques used in formulating the digital marketing strategies and tactics used in the report.
POLITICAL FACTOR
• Government regulations and policies regarding data privacy and cybersecurity can impact
Starbucks' digital operations, especially as more customers use their mobile app to order and
pay for drinks.
• Political instability or changes in government policies in countries where Starbucks operates
can affect its supply chain and delivery of digital services.
• Regulations and taxes related to online payments can impact the profitability of Starbucks'
mobile app.

ECONOMIC FACTOR
• Economic conditions and consumer spending patterns can influence the demand for Starbucks'
products and services, both online and offline.
• Economic downturns or recessions can lead to reduced consumer spending, which could
impact Starbucks' digital sales.
• The rise of mobile wallets and digital currencies in countries such as Germany and UK can
create new opportunities for Starbucks to expand its payment options and attract more
customers.

SOCIAL FACTOR
• Changes in consumer preferences and attitudes towards health and wellness can impact
Starbucks' digital menu offerings and marketing campaigns.
• The increasing importance of sustainability and social responsibility can also affect Starbucks'
reputation and brand image in the digital space.
• The rise of social media and online reviews can amplify the impact of positive or negative
customer experiences with Starbucks, which can affect its reputation and sales.

TECHNOLOGICAL FACTOR
• The rapid pace of technological change and innovation can create opportunities for Starbucks
to enhance its digital capabilities and customer experience.
• Advances in mobile technology and connectivity can enable Starbucks to improve its mobile
app features and offer new digital services.
• The increased adoption of automation and robotics in the food and beverage industry for a
country like USA may create new competition for Starbucks' digital offerings.
Figure 1
 COMPETITORS ANALYSIS

COMPANY WEBSITE SEO

Nibbler score: 8.0 SEO score: %
Popularity: 10 Keywords:
Marketing: 7.9 Clicks:
Technology: 8.3 Impressions:
62 average words per Search Volume:
page

www.starbucks.com
Nibbler score: 8.7 SEO score: %
Popularity: 10 Keywords:
Marketing: 7.7 Clicks:
Technology: 8.6 Impressions:
746 average words Search Volume:
per page

www.mcdonalds.com
Nibbler score: 9.2 SEO score: %
Popularity: 10 Keywords:
Marketing: 7.6 Clicks:
Technology: 9.4 Impressions:
563 average words Search Volume:
per page

www.dunkinsdonut.com

Nibbler score: 7.0 SEO score: %

Popularity: 10 Keywords:
Marketing: 5.3 Clicks:
Technology: 7.4 Impressions:
10 average words per Search Volume:
page

www.timhortons.com

Figure 1
SOCIAL MEDIA PLATFORM ANALYSIS

Company

Likes Followers Followers Followers Subscribers Followers Followers

36.2M 17.9M 11M 2M 18.9K

82M 4.6M 4.7M 3.3M 647K

16M 2.2M N/A 3.1M 49.1K

3.5M 493K 663K 127K 32.4K

Figure 1

APP ANALYSIS

APP RANK DOWNLOADS RATING RATINGS PREVIEW ADD

Starbucks 10 M+ 4.5 704K

McDonalds 50M+ 4.5 1.25M

Dunkins 10M+ 4.8 333K

Donots
Tim
Hortons

Figure 1
Figure 1: Positive and negative review of mobile app

CUSTOMER ANALYSIS
Starbucks' target audience is primarily young adults aged between 18 and 34 years old, with a
higher preference for females than males. According to a research report by Euromonitor
International, this demographic is the most important to Starbucks because they are more likely
to be coffee drinkers and to spend money on coffeehouses than other age groups (Euromonitor
International, 2019). This is supported by a study by the National Coffee Association, which
found that 44% of coffee consumed in the US is by young adults aged between 18 and 34 years
old (National Coffee Association, 2019).

Another reason for targeting this demographic is their high level of engagement with digital
technology. Young adults are more likely to use mobile devices and social media platforms,
which makes them an ideal target audience for Starbucks' digital marketing efforts. Starbucks'
mobile app has become an essential tool for this demographic, allowing them to order and pay
for their drinks with ease. In 2020, the Starbucks mobile app had over 22.2 million active users
in the United States alone (Statista, 2021).

The target audience of Starbucks also includes people who value ethical and sustainable
practices in the companies they support. Starbucks has taken significant steps to promote
sustainability, such as offering reusable cups and reducing its carbon footprint. This approach
has helped to attract and retain customers who prioritize ethical and sustainable practices.
 DIGITAL CAPABILITIES OF STARBUCKS

This analysis will provide an overview of Starbucks' digital environment,

examining the company's website, social media platforms, mobile apps,
and digital marketing strategies.

Website Analysis:
Starbucks' website serves as a central hub for its digital presence,
providing customers with information on products, locations, and
promotions. The website is optimized for mobile devices, with a
responsive design that allows for easy navigation and browsing.

Social Media Analysis:

As seen in the competitor analysis above, Starbucks maintains an active
presence on various social media platforms, including Facebook,
Instagram, and Twitter. The company uses social media to engage with
customers and build brand awareness, with a focus on visual content such
as photos and videos. The analysis also revealed that Starbucks' Instagram
account has close to 18 million followers, making it one of the most
popular brand accounts on the platform (eMarketer, 2021). As such,
Starbucks’ social media platforms continue to be a crucial digital tool in
which marketing tactics could effectively implemented to further the
company’s objectives. For instance, the company recently used its social
media to a launch new product, Iced Pineapple Matcha Drink, which was
heavily promoted on Instagram.

Mobile App Analysis:

Starbucks' mobile app is a key component of its digital strategy, allowing
customers to order ahead and pay for purchases. The app also offers
personalized recommendations and promotions based on customer
preferences and purchase history. According to a study by App Annie,
Starbucks' mobile app was the most popular food and drink app in the
United States in 2020, with over 23 million monthly active users (App
Annie, 2021).

Digital Marketing Analysis:

Starbucks uses a variety of digital marketing strategies to engage with
customers and drive sales. The company also leverages data analytics to
personalize marketing messages and promotions for individual customers.
According to a study by McKinsey & Company, Starbucks uses machine
learning algorithms to analyze customer data and provide personalized
recommendations and promotions (McKinsey & Company, 2021).
 SWOT ANALYSIS

STRENGTHS
• Strong social media presence with active accounts on major platforms such as Facebook, Twitter, and

S
Instagram.
• Successful mobile app with active users, allowing customers to order and pay for their drinks in
advance, skip the line, and earn rewards points.
• Targeted digital advertising to reach specific audiences and increase awareness of the brand.
• Innovative use of technology, such as digital menu boards and augmented reality features in the
mobile app.

WEAKNESSES

W
• Limited customization options on the mobile app, potentially leading to a lack of personalization for
customers.
• Potential for data breaches and cyber-attacks, putting customer information at risk.
• Dependence on the US market for growth, potentially limiting the company's global expansion
(Musonera, 2021).
• Challenges in adapting to changing consumer preferences, such as the increasing demand for non-dairy
and plant-based options.
OPPORTUNITIES
• Growing demand for ethical and sustainable sourcing practices, providing opportunities for Starbucks to

O showcase its commitment to social responsibility.

• Increasing popularity of non-dairy and plant-based options, providing opportunities for Starbucks to
expand its product offerings.
• Growth of digital and mobile commerce, providing opportunities to increase accessibility and
convenience for customers.

THREATS
• Intense competition from other coffee chains, particularly those investing heavily in their digital

T
marketing environments.
• Rising coffee prices and supply chain disruptions, potentially impacting the availability and
affordability of Starbucks products.
• Increasing regulation and taxation, potentially increasing the cost of doing business.
• Negative impact of global economic factors, potentially leading to a decrease in consumer spending.

Figure 1
MARKETING OBJECTIVES

1. To increase brand awareness of Starbucks by 20% among the target audience by running a
targeted digital marketing campaign across social media platforms.
2. To increase social media engagement by 20% in the next six months.
3. Increase the number of positive online reviews and recommendations for Starbucks across all
social media platforms by 20% within the next six months.

THE SMART OBJECTIVES ALIGNMENT WITH 5S MODEL (Chaffey, 2017)

Objective 1
This objective aligns with the "Sell" stage of the 5S model. The Sell stage focuses on selling the brand
and its products or services to the target audience.

Objective 2
This objective aligns with the "Speak" stage of the 5S model. The Speak stage focuses on
communicating with the target audience through various channels, including social media.

Objective 3
This objective aligns with the "Serve" stage of the 5S model. The Serve stage focuses on delivering
high-quality products and services to customers and meeting their needs and expectations
MARKETING STRATEGY

A. Targeting and Segmentation

Starbucks' target market is high-income consumers or men and women between the ages of 22 and
60, as was previously discussed in the situational analysis. Musonera (2021) observed that young
adults between the ages of 18 and 34 make up the majority of Starbucks' digital target audience,
which account for 40% of the coffee shop's revenues. This is similar to Kotler and Armstrong
(2010) observation that the brand's customer base is diverse, ranging from young adults to
professionals, students and retirees, with a focus on urban and suburban areas. Therefore, the
marketing strategy for this report focuses on customers who tend to be high income earners and
educated, with a preference for convenience, quality, and personalization. An analysis of a
customer persona as seen below is also important as it helps to understand the target audience on a
deeper level and gain insights into the motivations, behaviours, and preferences of customers,
which helps to inform marketing and business strategies (Matthews, Judge & Whittaker, 2012).
 DIGITAL MARKETPLACE MAP

Intermediaries and Destination Sites

Customer Segments Search Intermediaries
Media Sites

Social Media Company site

Search Engines

Vertical Search Engines Published Media & Blogs Direct Competitors

Specialist Directives

Indirect Competitors &

Alternatives

B. Big Idea

The proposed idea is called the "Festival of Beans" and it revolves around the catchphrase "Stay
Connected with a Cup," which will be used across all Starbucks' digital platforms. This festival is
designed as both an online and onsite event and is tied around the upcoming International Coffee
Day on October 1, 2023. The day is celebrated annually and attracts a lot of attention. The
"Festival of Beans" was created to capitalize on the opportunities this remarkable day would bring,
as it is expected to significantly impact the achievement of the report's SMART objectives which
include creating brand awareness, increasing social media engagement, and generating positive
reviews from customers.

C. Positioning (Online Value Proposition (OVP))

Kotler and Armstrong (2010) state that the goal of positioning is to make sure that a product
occupies a clear, distinct, and desired position in relation to competing products in the minds of
target consumers. Starbucks presents itself as a premium or high-priced coffee company that
seeks to offer high-quality goods to a target market of largely young adults with high incomes.
Starbucks aspires to be recognized by customers as a "high quality" brand. While competitors
like Dunkin’ Donuts has positioned their members to be part of a crowd, members of Starbucks
 tribe desire to stand out as unique individuals. However, McDonald's and Subway have
positioned themselves as providers of high-quality products at low prices

Online Value Proposition (OVP):

D. Channels
MARKETING TACTICS