Group tactics/strategies
As a group we discussed the case and found out that we should focus on promoting the brand , use the recycling plan to support green environment, add the transfer points tool into the application and creates a new diamond level of reward loyalty.
CRM Promotion plan for Starbucks
Most loyal / promotion
Quarter 1 -------- Create a VIP Starbucks members rewards plan (VIP members can be after upgrading from gold or after basing a specific number of purchases or points such as free coffee after 75 points )
Quarter 2-------- Offers special discounts and first on line offers for VIP members (Such as extra 0.50 cents discounts ,,, and VIP members have fast pass in lines )
Quarter 3 -------- offers free bakary item after a specific number of purchases by the VIP member
Quarter 4 -------- Promotion to educate people about the program.
Passive / Satisfied/Not yet loyal:
Quarter 1----- offer a discounts in applying for a memberships.
Quarter 2----- Special offers and discounts through mail, and email,
Quarter 3 -----Special offers in application such as (the nearest Starbucks has you coffee for free today message)
Quarter 4 ----- Promotion in social media to tell consumers whats new about Starbucks.
Infrequent users
Quarter 1------ create transfer points tool in the application of Starbucks
Quarter 2------ offers a free coffee for bringing somebody new or a friend to SB.
Quarter 3 ------ Social media promotions to get consumers buy more such as suggestions for a new coffee to try based on the data known about the consumer or the usual coffee he buys.
Quarter 4 ------seasonal promotions.
Former loyalty rewards
Quarter 1----- create a survy to see why consumers stop coming to starbucks.
Quarter 2----- Social media reports on why they change the program .
Quarter 3 ----- If the survy of first quarter supports the old program they should change it back . if not keep promoting
Quarter 4 -----Holiday promotions with extra points in special days such as merry monday or friday free day .
To Promote their philanthropy
Quarter 1----- introduce the idea of Narayana Peesapaty (India): Edible Cutlery of small cups and spoons that are environment friendly and save money and promote green environment.
Quarter 2----- Social media campaign to promote the use of new spoons and cups
Quarter 3-----Discounts on using the new cups .
Quarter 4----- based on the success of the idea they can promote it for all Starbucks or take a step back from it .
Thursday, December 15, 2016
Final Reflection Paper
Question
1 on Business/Marketing:
Pantene case study was such a great example in how Procter and gamble used data or big data in understanding their consumers wants and needs , and preferences. and how to make the products fits the consumers expectations and satisfy them.
• “Because its purpose is to create a customer, your business has two purposes and two purposes only: Marketing and innovation. Marketing and innovation make you money, generate sales, produce profit. Everything else is an expense...”
Apple case study is a great example for marketing and innovation, The company was customers oriented, that is aiming to go beyond the satisfaction level of its consumers. Great marketing and Great Innovation leader in the market.
• “The leaders who work most effectively, it seems to me, never say "I." And that's not because they have trained themselves not to say "I." They don't think "I." They think "we"; they think "team." They understand their job to be to make the team function. They accept responsibility and don't sidestep it, but "we" gets the credit…. This is what creates trust, what enables you to get the task done.”
Pixar case study was a great example illustrating the benefits of team work /brain-trust practice, where new ideas come into light resulted from collaboration and out of the box thinking.
Question
2 on Teams:
The team collaboration was a great tool in practicing the real world scenarios, Overall, my team consists of 4 hardworking students that are willing to help each other and collaborate for better results and better understanding, I really enjoyed working with each of my team members where each of them was nice, polite, smart, and funny, we had a great time working together, each member was ready and well prepared before our group meetings wich makes it easier working together.
In developing case alternatives and solutions , we as a team toke the strategy of discussing each member alternatives, and then decide as a team which ones are most important , in case of a tie we vote for which alternatives.
Question
3 on Overall Outcomes:
In overall takeaway from this course , First, I have reviewed the main concepts of marketing and the marketing theories and practices, Second, I have learned how to use those theories and marketing techniques and apple them into real world situations, Lastly, The case studies given in this course was a great example of how to analyze a case and how to read and use data as supporting evidence or as a basis of my solutions.
Wednesday, December 14, 2016
Starbucks loyalty and the cause-related marketing
Starbucks loyalty:
Starbucks customers are so loyal to the brand and the products. Starbucks has maintained a great reputation and customer relations through their SB-APP and the multiple services they offer through the app. In studying the data provided through the Starbucks case, and the other articles the main issue Starbucks is facing is how to maintain the growth rate and stay ahead of competitions.
In terms of Starbucks loyalty programs; The number of loyal customers is increasing
through the years:
In terms of Starbucks performance over the year's Starbucks is leaDING THE MARKET:
The main problems they are facing currently:
First, the customers responses to the change in the reward program:
Starbucks should survey their consumers and change the program back if consumers want too.
Lastly, Starbucks should focus in the short term plan on the 20% percentage of their consumers that are loyal to the brand and keep maintaining they relationships with them, on the other hand, they should work on getting back the other 80% of non loyal consumers to be loyal through offers, rewards, or other promotional tools in the long term plan.
Cause-related marketing:
Cause-related marketing is the strategy of an organization to market a product in the way that shares goodwill and donates a percentage of the revenue to charities for the cause the product is sporting.
bees are important to save because they are responsible for over a third of the food people consuming in daily life, including coffee.
Many big organizations such as Home depot and other big stores are already involving in the save the bees campaign
Starbucks can be a leader in the save the bees campaign if they promote it well through their applications and offers reward points for donations.
Starbucks can offer as an example 10% of their revenue to save the bees campaing; which will build a strong name for Starbucks in the mind of bee lovers and green environment community.
Wednesday, December 7, 2016
Starbucks Loyalty & The Tripple botton line 3P's
Triple Bottom Line :
The Triple bottom line consists of profit, people , and a planet.
Profit in terms of traditional measures of corporate profits and loss, People in terms of the bottom line company's "People account" where it measures how socially responsible an organization is in its operations and Planet in terms of how environmentally responsible the organization is.
The 3P's of profit, people , and planet are measures of the financial, social , and environmental performance of an organization over time.
In relates to the Triple bottom line; Starbucks did the following:
First , Starbucks has been the leader in the development and implementation of the green building program for retail companies , Starbucks collaborated with the U.S.Green house council to develop LEED the for a retail program that stands for Leadership in Energy and Environmental Design.
Second , Starbucks took into account the recycling issues and how to help support a green environment.
The Starbucks Application is one of the new innovative channels of marketing, the application is professionally design including many features such as customized orders and other customer oriented features. The application increased the in-store traffic and built a great customer experience that represented 6% of U.S transactions of the fiscal year of 2016.
Over the years all the financial measures of Starbucks has increased, average tickets grew by 4%, traffic grew by 1% , and Store sales grew by 4 %
Starbucks brand image and experience:
Starbucks brand image is strong and delightful for its consumers, since the great recession of 2009, from 2009 to 2012 , the growth rate of Starbucks slowed but still increasing .
Starbucks achieved many of its goals and plans for the 2015 goals plan.
Starbucks achieved many of its goals and plans for the 2015 goals plan.
Some of this plans met such as :
1. Ensure that the coffee is ethically sourced.
2. Invest in farmers and their community
3. Reduce water consumption by 25%
4. Purchase renewable energy sources.
Other plans they does not met :
1. reduce in-store energy consumption
2. achieve LEED certifications
3. mobilize employees and customers to achieve 1 million hours of community service.
The multi-channel strategy that Starbucks uses is working great in term of building a great customers journey of users of their application. On the other hand , the customer services at the Starbucks stores are excellent in terms of interactions with consumers and supporting the consumer's experiences at the store.
The Starbucks application, is a great application that is easy, colorful , and have many customization options for coffee, the app also offers rewards to consumers and favorite list, that both supports the customer journey in using the application and makes it easy to use such as make my favorite coffee list and re-order over time.
Tuesday, November 29, 2016
Assignments of Nov-30
Customer Loyalty isn't enough.Grow your share of wallet :
Customers loyalty is a major factor in success for all firms, many companies spent a lot of time and money studying customers loyalty by measuring and managing satisfactions level and net promoter scores. This old method of study is not accurate 100% where customers might be satisfied with the brand or products the firm offer but will spend money on competitor brand and leave the company brand as a second choice. In studying the theory of the correlation between customers satisfaction and share of wallet, Walmart conducted a two years study of 17,000 costumes in different industries and different nations, The study was conducted to gain insight about consumers purchase pattern, satisfaction, and recommending the brand; the rank consumer give to the brand in relative to competitors such as first Kroger then IGA.
In results, the study concluded the Wallet Allocation rule.
The wallet allocation rule measures the share of wallet consumers are willing to pay for the brand in comparison to other brands.
Steps of Wallet Allocation rule :
Step
By applying this approach of an allocating share of wallet, firms can assess brand performance and craft strategies for the future success.
How Target uses their data in predicting consumers trends :
Target is one of the successful retail stores in the united states, Target has been improving their customer's experiences thought using the data they collect from customers purchase and insight.Target has created loyalty programs such as target reward card and other services like Target baby program that offers coupons and discounts for pregnant customers.
On studying customers satisfaction and in taking a step toward engaging with customers; Target conducted a study of consumers purchases pattern for pregnant customers ; they found out that some patterns of product been purchased can predict what stage the pregnant is on or sometimes the delivery data of the baby. Target implemented the finding and start sending coupons on the right timing frame that scores a good relationship with consumers and better promoting process, On the other hand, some faulty mistakes such as sending the wrong coupon people or sending the coupon might violate the privacy of the consumer if somebody else saw the coupon like the example of the high school girl coupon.
Using insight from data can provide such successful strategies in promoting and selling products , On the other hand ,Engaging to much in customers data might raise the fear of violating the privacy rights.
Kroger knows your shopping patterns better than you do :
Kroger is the nation's largest traditional grocery store chain in the united states, with 2,400 stores and 80.8 billion in sales last year, Kroger is working great in the section of customers services and satisfactions where they have multiple Loyalty plans such as the coupons they send ever month, Kroger membership and Kroger gas rewards. In taking a step toward improvements; Kroger hired Dunnhumby which is a data specialist firm, Dunnhumby used the data Kroger collected and experimented different techniques in testing the market. One technique was sending coupons to a different segment of consumers that might not need the product as a necessity but might purchase it or refers it to another future consumer.
The Kroger style and finding are less powerful in comparison to target for example. In studying consumers behaviors toward products and brands , such firms should carefully select their methods or the most appropriate method of testing rather than violating people's privacy or too many annoying promotions.
Developing products for a circular economy :
Many of the manufacturing companies do not give attention to the life cycle of their products when they reach the expiration date. Research suggested that each year some 2.6 trillion dollars worth of materials that can be reused,or recycled are wasted. From one aspect the firms can make a huge amount of profits from refurbished mechanical materials , recycling and after-life activities for their product.
For companies to make a strategy for after-life stage of their product, they need to create a cross-functional collaboration on the product chain value, such a collaboration can be between product development teams , sales , engineers, and market specialists to make the product durable for reuse, repair, and recycling stages and support the circular economy objectives of maintaining green environment.
Lastly, Firms need to create a strategy in how to communicate to their consumers about the recycling or after-life plans and how to implement them, Where firms can create a green campaign or motivate consumers to return the old product for an offer, such as the mobile industries re-purchasing old phones for reuse or disassemble activities.
Calculating Life Time Value(CLTV) :
Starbucks is one of the biggest coffee companies around the world , despite the economic challenges that all firms went through in 2012, Starbucks was not suffering as other competitors does , Actually ,Starbucks was grown and expand around the globe, where they expected to open 600 new-locations worldwide. Starbucks strategy of maintaining high customer satisfaction level and gaining positive customer life time value helped them a lot to be the top in the market.
Customer life time value is the projected revenue that a customer generates over there life time.
The articular uses Starbucks data as an example of calculating CLTV.
Step 1 : Average your variables .
First calculate customers Expenditures per visit (X).
Second calculate number of visits per week (Y).
Average customer value per week = X * Y in US Dollars.
Step 2: Calculate life-time value :
First firm need to defined the following :
(T)The Average customer lifespan, (How long they stay as customers)
(R)Customer retention rate ,(the repurchases habits of customers over period of time )
(P)Profit margin per customer.
(i)The rate of discount
(M)Average gross margin per customer.
Customer Life Time Value Equations
Competing on customer journey:
The revolution in technology, and the data systems that companies analysis and research on using statistics and algorithms gave them capabilities in understanding there consumers, and even more, expectation and suggestion for future purchases. Such as Amazon and its techniques of understanding consumers and keeping them. As a results of studying data insight and analytics, survey, and experiencing consumers journey ; companies starts to builds there loyalty loop and their strategy in how to motivate, educate ,connect and keep consumers.
companies starts going proactive in terms of connecting with consumers, understanding the interactions consumers have before purchase and understanding consumers decisions behavior and satisfaction level. So companies starts to acknowledge the power of online shopping and how its convenient is the key of competitive advantage , such as the online deposit service that many banks offers nowadays through their online app for smart phones that changes the way people depositing money instead of making a trip to the bank.
Another new innovative way of connecting to consumers recently, is the online personalization services that many top brand offers to their consumers , such as apple purchasing journey and the personalization they offer such as memory size, color, other personalization that differentiate apple from its rivals.
The one thing you need to know ?
Customers loyalty is a major factor in success for all firms, many companies spent a lot of time and money studying customers loyalty by measuring and managing satisfactions level and net promoter scores. This old method of study is not accurate 100% where customers might be satisfied with the brand or products the firm offer but will spend money on competitor brand and leave the company brand as a second choice. In studying the theory of the correlation between customers satisfaction and share of wallet, Walmart conducted a two years study of 17,000 costumes in different industries and different nations, The study was conducted to gain insight about consumers purchase pattern, satisfaction, and recommending the brand; the rank consumer give to the brand in relative to competitors such as first Kroger then IGA.
In results, the study concluded the Wallet Allocation rule.
The wallet allocation rule measures the share of wallet consumers are willing to pay for the brand in comparison to other brands.
Steps of Wallet Allocation rule :
Step
- Establish numbers of brands that customers using in the product category.
- survey customers and obtain satisfaction scores for each brand in step 1.
- Plug the brand's rank and a number of brands from 1 and 2 to the following formula:
By applying this approach of an allocating share of wallet, firms can assess brand performance and craft strategies for the future success.
How Target uses their data in predicting consumers trends :
Target is one of the successful retail stores in the united states, Target has been improving their customer's experiences thought using the data they collect from customers purchase and insight.Target has created loyalty programs such as target reward card and other services like Target baby program that offers coupons and discounts for pregnant customers.
On studying customers satisfaction and in taking a step toward engaging with customers; Target conducted a study of consumers purchases pattern for pregnant customers ; they found out that some patterns of product been purchased can predict what stage the pregnant is on or sometimes the delivery data of the baby. Target implemented the finding and start sending coupons on the right timing frame that scores a good relationship with consumers and better promoting process, On the other hand, some faulty mistakes such as sending the wrong coupon people or sending the coupon might violate the privacy of the consumer if somebody else saw the coupon like the example of the high school girl coupon.
Using insight from data can provide such successful strategies in promoting and selling products , On the other hand ,Engaging to much in customers data might raise the fear of violating the privacy rights.
Kroger knows your shopping patterns better than you do :
Kroger is the nation's largest traditional grocery store chain in the united states, with 2,400 stores and 80.8 billion in sales last year, Kroger is working great in the section of customers services and satisfactions where they have multiple Loyalty plans such as the coupons they send ever month, Kroger membership and Kroger gas rewards. In taking a step toward improvements; Kroger hired Dunnhumby which is a data specialist firm, Dunnhumby used the data Kroger collected and experimented different techniques in testing the market. One technique was sending coupons to a different segment of consumers that might not need the product as a necessity but might purchase it or refers it to another future consumer.
The Kroger style and finding are less powerful in comparison to target for example. In studying consumers behaviors toward products and brands , such firms should carefully select their methods or the most appropriate method of testing rather than violating people's privacy or too many annoying promotions.
Developing products for a circular economy :
Many of the manufacturing companies do not give attention to the life cycle of their products when they reach the expiration date. Research suggested that each year some 2.6 trillion dollars worth of materials that can be reused,or recycled are wasted. From one aspect the firms can make a huge amount of profits from refurbished mechanical materials , recycling and after-life activities for their product.
For companies to make a strategy for after-life stage of their product, they need to create a cross-functional collaboration on the product chain value, such a collaboration can be between product development teams , sales , engineers, and market specialists to make the product durable for reuse, repair, and recycling stages and support the circular economy objectives of maintaining green environment.
Lastly, Firms need to create a strategy in how to communicate to their consumers about the recycling or after-life plans and how to implement them, Where firms can create a green campaign or motivate consumers to return the old product for an offer, such as the mobile industries re-purchasing old phones for reuse or disassemble activities.
Calculating Life Time Value(CLTV) :
Starbucks is one of the biggest coffee companies around the world , despite the economic challenges that all firms went through in 2012, Starbucks was not suffering as other competitors does , Actually ,Starbucks was grown and expand around the globe, where they expected to open 600 new-locations worldwide. Starbucks strategy of maintaining high customer satisfaction level and gaining positive customer life time value helped them a lot to be the top in the market.
Customer life time value is the projected revenue that a customer generates over there life time.
The articular uses Starbucks data as an example of calculating CLTV.
Step 1 : Average your variables .
First calculate customers Expenditures per visit (X).
Second calculate number of visits per week (Y).
Average customer value per week = X * Y in US Dollars.
Step 2: Calculate life-time value :
First firm need to defined the following :
(T)The Average customer lifespan, (How long they stay as customers)
(R)Customer retention rate ,(the repurchases habits of customers over period of time )
(P)Profit margin per customer.
(i)The rate of discount
(M)Average gross margin per customer.
Customer Life Time Value Equations
Competing on customer journey:
The revolution in technology, and the data systems that companies analysis and research on using statistics and algorithms gave them capabilities in understanding there consumers, and even more, expectation and suggestion for future purchases. Such as Amazon and its techniques of understanding consumers and keeping them. As a results of studying data insight and analytics, survey, and experiencing consumers journey ; companies starts to builds there loyalty loop and their strategy in how to motivate, educate ,connect and keep consumers.
companies starts going proactive in terms of connecting with consumers, understanding the interactions consumers have before purchase and understanding consumers decisions behavior and satisfaction level. So companies starts to acknowledge the power of online shopping and how its convenient is the key of competitive advantage , such as the online deposit service that many banks offers nowadays through their online app for smart phones that changes the way people depositing money instead of making a trip to the bank.
Another new innovative way of connecting to consumers recently, is the online personalization services that many top brand offers to their consumers , such as apple purchasing journey and the personalization they offer such as memory size, color, other personalization that differentiate apple from its rivals.
The one thing you need to know ?
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