Starbucks CSR Project

Campaign Survey Result Recommendation Industry Today’s Agenda Coffee Industry Nowadays – Sally 1-5 Background of Starbucks Fair Trade Campaign 6-10 Kay Two-Phrase Evaluation Model 11-14 Fundamentals of campaign 15-18 Carrie Current Marketing Strategies Survey Result and Analysis Recommendation. 19-21Hillary Introduction

Hong Kong Coffee industry Introduction Campaign Survey Result Recommendation Industry What your reference here ?

What is “Fair Trade Campaign”? Fair Trade Coffee supporters Fair Trade certified criteria: paying a minimum price per pound of $1.26 (normal market price is around $.60-$.70 per pound), providing much needed credit to farmers providing technical assistance such as help transitioning to organic farming Fair Trade campaigns are used to promote their corporate social responsibility image Campaign Survey Result Recommendation Industry Introduction

Campaign Survey Result Recommendation INTRODUCTION- The Company Profile Established in 1971 in Seattle, U.S. Mission: to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Products: coffee, handcrafted beverages, merchandise, fresh food, consumer products More than 15,000 stores in 50 countries , 115 stores in Hong Kong Industry Introduction

STARBUCKS-Being a Responsible Company Introduction Campaign Survey Result Recommendation Industry

2011 A Demand Pull Fair Trade Campaign Year 2000 Kick-Off of the program Met a lot of Criticism for 34,000 kilograms of Coffee Brought Year 2002 2% of Total Coffee Bought Year 2010 300 Million of Fair Trade Coffee Beans Bought Timeline for Fair Trade Campaign Introduction Campaign Survey Result Recommendation Industry See How Starbucks is Doing Now

No foundation Level  Not sustainable No Promotion Level  Not cost effective Still Remember Our Evaluation Model? Introduction Campaign Survey Result Recommendation Industry

Mr. Joshua Begbie, Project Manager Community Coordinator Interview with NGO Starbucks improving fair trade effort Largest purchaser of fair trade coffee beans Reluctant to buy more Adverse effect on profit margin

Introduction Campaign Survey Result Recommendation Industry Foundation Level What concrete measures the company Has done to help promote fair-trade Fair Trade Initiatives Starbucks Pacific Coffee Delifrance Overall World ’s largest fair trade purchaser Hong Kong based founded in 1992 Seattle Coffee Style Singapore based entered HK at 1987 French Coffee Style Corporate Commitment We aim to have 100% of our coffee certified or verified by an independent third party. As an initiatives under environmental support. Data Deficient Customer Impression 63% 6% 2% FT Coffee beans 40 million pounds in 2009 Data Deficient Data Deficient

Still Remember Our Evaluation Model? Introduction Campaign Survey Result Recommendation Industry

Starbucks Share Planet Program Introduction Campaign Survey Result Recommendation Industry

Methodology Research Method: Face to Face interview and online survey Interviewee Number: 150, mainly undergraduate students ranging from 18-25 Research Objectives: Find out the attitude towards Starbucks fair trade campaign How effective the campaign communicate the message How it finally induce purchase behavior

Evaluation Criteria Potential Limitations: Profit Sales volume Market Share Introduction Campaign Survey Result Recommendation Industry

Survey Result - Awareness Care about the third world poverty problem Does not view Fair Trade is important No Awareness of the fair trade campaign Does not understand how fair trade helps Introduction Campaign Survey Result Recommendation Industry 欄 1 欄 2 欄 3 High concern for third world Low Concern for third world Never buy Fair Trade 51 (57%) 58 (97%) 1-4 times a month 39 (43%) 2 (3%)

Survey Result – Brand Image Improvement Many people thinking Starbucks as a social responsible company due to its waste recycling and organic coffee campaign 63% people think Fair Trade has enhanced Starbucks image as a social responsible company Makes changes

Survey Result – Purchase Behavior

Potential Promotion Strategies Adhere to the promotion philosophy of Starbucks Emphasize customized, personal channels instead of a mass channel Most popular suggestions: Free tasting and experience TV Advertisement/ Program Advertisement in Stores Word of Mouth

Conclusions and Recommendations

Starbucks CSR Project

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