Starbucks’ purpose is “to be a different kind of company. One that not only celebrated coffee but also connection. We’re a neighborhood gathering place, a part of your daily routine.”
Develop a product extension that will elevate the brand and increase sales growth.
Starbucks is experiencing a slowed growth in sales because their product innovation isn’t working. Seasonal and regional introductions lead to short-term spike in sales, but don’t have lasting growth for the company.
We structured a brand architecture to analyze Starbucks’ portfolio. Its product innovation in food and drinks were not increasing sales. The company was settling for short-term gains instead of lasting growth.
Starbucks’ strongest product is not the menu that customers come for. It’s the coffee shop atmosphere that they want to stay for.
Starbucks has the largest mobile payment app in the U.S. The app is built for utility, but lacks the social intimacy offered at a coffee shop.
Challenge the perception that Starbucks is a grab-and-go spot by focusing on community over coffee.
“Connections start with Starbucks”
What We Did:
Before the internet, the bulletin boards at Starbucks were the hub for community information. Today’s digital age moved these connections out of Starbucks shops and made their bulletin board an ignored space.
We crafted a solution that brought communities back together by bringing their bulletin board to the Starbucks app.
Our app extension, called Starbucks Bulletin, is designed to connect Starbucks customers in their local area. (Click on phone to see the app!)
Starbucks’ annual revenue is $6.4 billion. $882 million is from mobile payments. Mobile payments are growing 15% YOY.
In total, Starbucks has 30 million app users. 13 million are heavy users who spend $768 per year, and 17 million are regular users who spend $384 per year.
We project that Starbucks Bulletin can get 5% of heavy users and 7% of regular users to purchase an additional three cups of coffee per year. This will increase revenue by $22 million in the first year, translating to a .35% sales growth. If app usage continues to grow with time, this extension will provide exponential growth in the long-term.
Mason Shuck- Creative Brand Manager
Lee Kuykendall- Creative Brand Manager
Michelle Lee- Creative Brand Manager