Michelle Lee

Starbucks

 
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BACKGROUND

 

Starbucks’ mission 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.”

 
 
 

THE ASK

 

Develop a product extension that will elevate the brand and increase sales growth.

 
 
 

THE PROBLEM

 

Seasonal and regional drinks have led to short-term spikes in sales, but not to long-lasting growth for the company.

 
 
 

THE RESEARCH

 

We structured a brand architecture to analyze Starbucks’ portfolio. While its innovative food and drinks weren’t increasing sales, the Starbucks app became the largest mobile payment app in the U.S. Customers are visiting Starbucks everyday.

 
 
 

THE REALIZATION

 

The brand’s strongest product is the social intimacy of its shops. Starbucks needed a way to invite customers to stay for its atmosphere instead of just stopping by for coffee.

 
 
 

THE OPPORTUNITY

 

Utilize the mobile app to convert Starbucks from being a grab-and-go spot into a meet-and-stay place.

 
 
 

STRATEGY

Start human connections with a cup of coffee.

 
 
 

WHAT WE DID

Every Starbucks shop has a bulletin board that serves as the hub for community information, but it has become an ignored space. We crafted a solution by introducing Starbucks Bulletin, the app extension that moved the bulletin boards to a digital space designed to connect customers with their local community.

 
 
 

Customers can post inquires on Starbucks Bulletin that users in the local area can respond to. If the posting user would like to meet regarding their inquiry, they can send an eGift drink to responding users. The eGift is then redeemable when both parties meet in person at a Starbucks shop.

 
 
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FORECASTING

In the near future, Starbucks plans to open Reserve roasteries in major cities across the globe. To utilize the large space in their Reserves, we recommend including group meeting rooms that can be booked through Starbucks Bulletin.

 

The number of people working remotely has increased from 24% to 31% since 2017. Within five years, co-working spaces are estimated to reach 1.2 million members. This change in work style is an opportunity for Starbucks to become the preferred meeting space for young professionals.

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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, on average, $768 per year, and 17 million are regular users who spend, on average, $384 per year.

We project that Starbucks Bulletin will capture 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 at the same rate, this extension will provide exponential sales growth in the long-term.

 

 

MY ROLE

Brand Audit

Market Analysis

Brand Positioning

App Design

MY TEAM