DIGITAL

MARKETING
PLAN
Table of
Contents

Executive Summary

Company Overview

SOSTAC: Situation Analysis-

SOSTAC: Marketing Objectives

SOSTAC: Marketing Strategy

SOSTAC: Digital Tools and Tactics

SOSTAC: Action Plan

SOSTAC: Control

References

Appendix
 EXECUTIVE SUMMARY
RY

Starbucks is an excellent business that specializes in appealing to young adults and high-end
consumers. This document is a Starbucks digital marketing strategy intended to increase the
company's competitiveness in the food and beverage business. The research of Starbucks' digital
environment in the report reveals the company's operations, position in relation to its
competitors, and level of industry competition. The company was proven to have less followers
than some of its competitors on social media sites like Facebook and TikTok, as well as a lower
nibbler score than some of its competitors. This explains why the SMART objectives for this
report center on boosting brand awareness, social media engagement, and customer reviews in
order to make Starbucks' operations far more noticeable and relevant in the online world. As a
result, a big idea was also put forth that ties into the objectives, and tactics were developed to
help realize both the big idea and the SMART objectives through various marketing efforts.

A full 6-month action plan has been created, and a thorough control for Starbucks outlines the
metrics used to assess how each technique and campaign connects to the SMART objectives.
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

COMPETITORS ANALYSIS
Starbucks faces stiff competition in the digital marketing environment from major coffee chains
such as Dunkin' Donuts, McDonald's and Tim Hortons. While each competitor has its own
unique strengths and weaknesses, they all offer similar mobile app and social media capabilities
to customers, making it important for Starbucks to continue innovating and differentiating itself.
The following analysis shows the digital environment of Starbucks in relation to it competitors;

COMPANY WEBSITE SEO

Nibbler score: 8.0 SEO score: 87%
Popularity: 10 Keywords: Starbucks
Marketing: 7.9 Visits: 24.9M
Technology: 8.3 Search Volume: High
62 average words
per page
www.starbucks.com
Nibbler score: 8.7 SEO score: 84%
Popularity: 10 Keywords: McDonalds
Marketing: 7.7 Visits:
Technology: 8.6 Search Volume: High
746 average words
www.mcdonalds.com per page
Nibbler score: 9.2 SEO score: %
Popularity: 10 Keywords: Dunkins
Marketing: 7.6 donut
Technology: 9.4 Visits:
563 average words Search Volume:
www.dunkinsdonut.com per page Medium

Nibbler score: 7.0 SEO score: %

Popularity: 10 Keywords: Tim
Marketing: 5.3 Hortons
Technology: 7.4 Visits:
www.timhortons.com 10 average words per Search Volume:
page Medium

Figure 1: Direct and Indirect Website Analysis (Data Source: nibbler.insites.com, semrush.com)
 Company

Likes Followers Followers Followers

36.2M 17.9M 11M 2M

82M 4.6M 4.7M 3.3M

16M 2.2M N/A 3.1M

3.5M 493K 663K 127K

Figure 2: Social Media Platform Analysis (Data Source: All respective social media pages.)

APP VISIBILITY DOWNLOA RATING PUBLISHER PREVIEW

SCROE DS
Starbucks
89 10 M+ 4.5 Company 704K

McDonalds
93 50M+ 4.5 USA, LLC 1.25M

Itnovare
41 10M+ 4.8 Solutions SA 333K
de CV

The TDL
70 5M Group Corp. 95.4K
3.3

Figure 3: Mobile App Analysis (Data Source: https://www.mobileaction.co/)

TRAFFIC AND ENGAGEMENT (JAN 2023 – MAR 2023)

Figure 4: Website Engagement (Data Source: pro.similarweb.com)

Figure 5: Display Advertising (Data Source: pro.similarweb.com)

Figure 6: Social Traffic (Data Source: pro.similarweb.com)

Figure 7: Traffic and Engagement (Data Source: pro.similarweb.com)

Figure 8: 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.

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.
• Challenges in adapting to changing consumer preferences and online reviews, 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
showcase its commitment to social responsibility.

O
• 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

T
• Intense competition from other coffee chains, particularly those investing heavily in their digital
marketing environments.
• Potential for data breaches and cyber-attacks, putting customer information at risk.
• Negative impact of global economic factors, potentially leading to a decrease in consumer patronage
and website or mobile app traffic.

Figure 9: Digital SWOT Analysis for Starbucks

MARKETING OBJECTIVES

Starbucks mission statement has always been to inspire and nurture the human spirit – one
person, one cup and one neighborhood at a time. Therefore, by setting a specific, measurable,
achievable, relevant, and time-bound objective, Starbucks can focus its digital marketing efforts
on engaging activities relevant towards achieving it marketing mission and goals. The objectives
for this report are;

1. To increase brand awareness of Starbucks by 20% among the target audience in the next 6
months.
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 "Sizzle" stage of the 5S model. The Sizzle stage relates to the emotional
appeal of the brand, and how it resonates with 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).
Therefore, this report is targeted to coffee lovers, festival enthusiasts, and Starbucks fans across
different age groups, gender, and location.

Figure 10: Customer Persona

 Figure 11: Customer Persona

Figure 12: Customer Persona

 Intermediaries and
Customer Segments Search Intermediaries Destination Sites
Media Sites

Social Media Company site

Search Engines

The Coffee Enthusiat

Vertical Search Engines Published Media & Blogs Direct Competitors

The Loyalist

Specialist Directives

Indirect Competitors &

Brand Switchers Alternatives

Figure 13: Online Digital Marketplace Map

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

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. This strategy will be
effective as it addresses the perceptions of adults that are earning high and who values quality.
The Starbucks positioning strategy will target the adult market and will center on the value
proposition to bring awareness of Starbucks distinctive, custom-made premium, healthy product
delivered in a comfortable environment at a medium to high price point.
MARKETING TACTICS

TACTICS FOR OBJECTIVE ONE

1. Using the RACE model, the Reach marketing activity would be used as it aimed at building
awareness and visibility of brand (Chaffey, 2022)
Reach: Part of objective of this report is to increase Starbucks' brand exposure and reach
among the target audience. Starbucks will effectively integrate and use the combination of paid
and earned media to attain the goal of awareness from the AIDA model (Smart Insights, 2022).
To do this, optimizing search marketing would be the first step in raising brand awareness
followed by the influencer marketing strategy. The search marketing used will be “display
advertising” where ads would be run on relevant websites and social media platforms using
targeting options like demographic, location, and interests to reach Starbucks' target audience.
These ads which will take the form of banner and video which will align with Starbucks' brand
values and target audience would help increase Starbucks visibility and drive traffic to their
website and mobile app. Also, the influencer marketing strategy will be used by collaborating
with social media influencers who have a strong following in Starbucks' target audience can
help reach new customers and increase brand awareness.

Optimizing Brand Awareness through Display Advertising: Tactics

This display ad idea targets Starbucks' ideal audience who are coffee lovers, living in urban
areas, and in the age group of 22-60. The ad aims to create a strong appeal with an eye-catching
image of a steaming hot cup of coffee and highlighting the indulgent flavour of Starbucks
coffee.

Ad Title: Join the Festival of Beans and Celebrate International Coffee Day with Starbucks

Ad Copy: Stay connected with a cup and celebrate International Coffee Day with Starbucks!
Our "Festival of Beans" is here, and we've got an exciting lineup of activities and surprises for
you. Join us online and onsite on October 1, 2023, and experience the rich and diverse world of
coffee like never before. Try our limited edition coffee blends, participate in fun games and
 contests, and win exciting prizes! Don't miss out on the fun and be a part of the celebration with
Starbucks!

Ad Visual: The ad will feature a colourful and eye-catching image of different coffee beans
arranged in a festive manner, with the Starbucks logo prominently displayed.

Target Audience: The ad will be targeted to coffee lovers, festival enthusiasts, and Starbucks
fans across different age groups, gender, and location.

Call-to-Action: The ad will include a clear call-to-action (CTA) that prompts viewers to click
through to the Festival of Beans landing page, where they can learn more about the event and
register to participate.

Figure 14: Display Ads

Optimizing Brand Awareness through Influencer Marketing: Tactics

The following steps would be engaged in implementing the influencer marketing:

1. In engaging the influencer marketing program, influencers in the food and beverage
industry who align with Starbucks' brand values and target audience as well as an influencer
who have a general world recognition. These influencers would be Gordon Ramsay, who is
 probably the most well-known celebrity chef ever (Neamt, 2022) and Khaby Lame.
Although, Khaby Lame does not fully fit in to the first criteria, however, the second criteria
optimally fits in to what he represents. Khaby Lame, who happens to be the most followed
individual on Tiktok has a unique ability of create engaging and entertaining content while
remaining authentic and relatable has made him a successful influencer, particularly among
younger audiences. These two influencers also have a significant following on social media
and a track record of engaging their followers with their content.
2. The next step will be to reach out to the identified influencers with a proposal to collaborate
on the "Festival of Beans" campaign. The proposal will clearly explain the campaign's
objectives, activities, and what the influencer is expected to do, including creating content
around the event, attending the event, and promoting the event on their social media
platforms.
3. In building hype around the festival of beans event, there will be a private virtual tour of the
"Festival of Beans" by the influencers, a coffee tasting session with Starbucks' master
roaster, photoshoot and online interviews with influencers using their intagram live session.
This will not only create exciting content for their followers but also provide opportunities
for them to create memorable experiences with the brand.
4. Offer influencers branded merchandise such as t-shirts, mugs, and reusable cups which
carries the buzzword “Stay Connected with a Cup” for inclusion in their posts. This will not
only create engaging content but also provide a tangible connection to the brand that their
followers can see and relate to.
5. Starbucks will collaborate with influencers to create unique coupon codes that will be
redeemed on the mobile app for discounts or free items. These coupon codes will be shared
on social media platforms by the influencers, encouraging their followers to download the
Starbucks app and redeem the coupons. These coupons will also be promoted on Starbucks
social media accounts and website to reach a wider audience

Figure 15: Influencer Analysis

Figure 16: Influencer Analysis

TACTICS FOR OBJECTIVE TWO

Act: Optimizing Engagement through User-Generated Content:

One user-generated content idea for the "Festival of Beans" will be a social media contest
where Starbucks customers are encouraged to share photos or videos of themselves enjoying
their favorite Starbucks coffee using the hashtag #FestivalOfBeans and
#StayConnectedWithACup. The objective is to encourage customers to share photos or videos
of themselves enjoying their favorite Starbucks drinks while staying connected with friends
and family.
How to participate:
a) Customers will take a photo or video of themselves enjoying their favorite Starbucks
drink while staying connected with friends or family. This could include video calls or
catching up with loved ones over coffee.
b) Participants should post their photo or video on Instagram, Facebook, TikTok or Twitter
using the hashtag #StayConnectedWithACup.
c) The submissions will be tracked using the hashtag while the most creative and engaging
posts to feature on their social media accounts will be selected.
d) To incentivize participation, the contest would be promoted on both the influencers and
Starbucks' social media channels and website, and the winner would receive a prize such
 as a year's supply of free coffee, a selfie and interaction with the Starbucks influencers,
and a special recognition during the festival of beans event.

By creating a fun and engaging challenge, Starbucks can encourage customers to showcase
their love for the brand and their favorite drinks while also promoting the message of staying
connected with loved ones. The use of the hashtag #StayConnectedWithACup will help to
create a cohesive campaign and increase social media engagement.

Figure 17: Social Media Flyer

Act: Optimizing Engagement through Social Media Interaction

Starbucks will create a "did you know" post on social media and its website to share interesting
and lesser-known facts about the brand and its products. This type of post will help to increase
engagement with customers and create a sense of connection and community around the brand.
For example, Starbucks will share fun facts about the history of coffee, the sourcing and roasting
process of their beans, or the inspiration behind the comapny’s popular drinks. These posts will
also include images or videos to make them more visually appealing and shareable. It will be a
fun and creative way to engage with customers and build brand loyalty

TACTICS FOR OBJECTIVE THREE

In increasing the number of positive online reviews and recommendations from target audience,
Starbucks, the following engage activities shall be used;

Respond to negative reviews: As previously highlighted in the situation analysis of Starbucks’

mobile app, some of the customers gave negative reviews on certain services of Starbucks. Some
of which include frustration as regard the usage and certain functionalities of the mobile app.
One of the customers from the customer persona in the figure 10 also express her frustration as
regard the usage of the mobile app. As such, responding to these negative reviews in a timely
and professional manner will show that Starbucks values its customers and is committed to
addressing their concerns. Therefore, the negative reviews concerning the usage of the app will
propel the service of a UX designer and a programmer, who will help in the improvement of the
mobile app user experience. This will also help turn negative reviews into positive ones.
ACTION PLAN
CONTROL

The final stage of the SOSTAC planning model is control, which assesses if the campaign's
ultimate goals have been attained through its tactics, strategy, and general campaign (Smith,
2022). Based on the objectives, the control is divided into three sections;

CONTROL FOR OBJECTIVE ONE

Brand awareness will be monitored through various methods such as tracking website traffic,
video views, downloads, social media engagement, page views, monitoring mentions and
discussions about the brand on social media and online forums, conducting surveys to measure
brand recognition and recall among the target audience, analyzing search engine rankings and
click-through rates for branded keywords, and monitoring the success of brand awareness
campaigns through metrics such as impressions, reach, and engagement.

CONTROL FOR OBJECTIVE TWO

Social media engagement will be monitored through various metrics, including: Likes,
comments, and shares, the growth of followers on social media platforms, mentions and tags,
reach and impressions. These metrics will be tracked using social media analytics tools, such as
Hootsuite, Sprout Social, and Buffer, which provide detailed insights into social media
engagement.

CONTROL FOR OBJECTIVE THREE

To monitor the number of positive online reviews and recommendations for Starbucks, several
metrics will be used, which include Google Alerts, social media listening tools, review
management tools, direct customer survey and feedback and Google Analytics.