Starbucks Case Study
- A leader in the global coffee industry, known for its commitment to community engagement, customer experience, and inclusivity.
- Date: April 2018
OUR GOAL:
To restore Starbucks’ reputation as a community-oriented, inclusive brand after a racial discrimination incident in Philadelphia. We aimed to demonstrate accountability, implement real changes, and rebuild trust with stakeholders.
Campaign Objective:
- Mitigate Public Backlash
- Restore Brand Reputation
- Address Internal Bias Issues
- Strengthen Customer and Community Trust
Campaign Details:
- Duration: 6 Months
- Budget: $12 million (including training and store closures)
Comprehensive Analysis of the Situation
Incident Overview:
On April 12, 2018, two African American men were arrested at a Starbucks in Philadelphia after a store manager called the police, claiming trespassing. The incident, recorded and shared widely on social media, led to accusations of racial profiling, sparking national outrage and boycotts.
Insights Gained:
- Gaps in employee training on inclusivity and unconscious bias.
- Policies regarding store access created inconsistencies in customer treatment.
- Social media amplification emphasized the need for real-time crisis management.
Targeted Response Strategy
Corporate Accountability & Public Apology:
Starbucks’ CEO, Kevin Johnson, issued a public apology within 24 hours, describing the incident as “reprehensible” and taking full responsibility for corrective action.Policy Reform:
Starbucks revised its store policy to allow anyone to use its restrooms or seating areas without the need for purchase, promoting inclusivity across all locations.Nationwide Employee Training:
On May 29, 2018, Starbucks closed over 8,000 stores in the U.S. to provide racial bias training to approximately 175,000 employees. This program included expert-led workshops and insights from community leaders.Engagement with Communities:
Starbucks partnered with local leaders and civil rights organizations to address systemic issues and involve communities in the change process.Social Media Engagement:
Starbucks actively responded to conversations online, emphasizing their accountability and promoting transparency about the measures being implemented.
Strategic Media Placement to Maximize Reach and Relevance
- Key Media Outlets: Coverage in mainstream publications, including The New York Times, The Washington Post, and CNN, as well as outreach through Starbucks’ social media channels.
- Focus Topics: Articles and campaigns highlighted Starbucks’ commitment to inclusivity, corporate accountability, and social impact.
- Comprehensive Market Analysis
- Targeted Media Outreach
- Optimized Content Strategy
- Audience-Centric Media Selection
- Data-Driven Performance Tracking
- Scalable Campaign Framework
- Proven Campaign Success
- Delivered Results
Results:
- Improved Public Sentiment: 60% increase in positive mentions of Starbucks
- Total Impressions: 218 million
- Training Completion: Over 175,000 employees completed racial bias training, setting an industry benchmark.
- Website Traffic: 360% increase
- Enhanced Community Relations: Partnerships with civil rights groups improved stakeholder trust and engagement
Key Outcomes
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- Reputation Recovery: Starbucks mitigated long-term brand damage and strengthened its commitment to inclusivity.
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- Industry Leadership: The racial bias training program became a model for other organizations in the food and retail sectors.
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- Customer Loyalty: Despite initial backlash, Starbucks experienced stable financial performance and retained customer trust over time.