MASENO UNIVERSITY

BACHELOR OF EDUCATION SCIENCE WITH IT

DEPARTMENT OF COMPUTING AND INFORMATICS

STUDENT’S NAME: WASHIGTONE OMONDI ONYANGO

ADMISSION NUMBER: ESC/00056/020

SEMESTER: YEAR 3 SEMESTER 2

COURSE: UCI 302 E-COMMERCE

TAKE AWAY CAT

LECTURER NAME: Dr. JOSHUA AGOLLA

DATE SUBMITTED: 20/04/2023

Enter facebook.com/Starbucks

1. Read the opening case and answer the following questions:

(a) In what ways you think Starbucks increases its brand
recognition with its EC initiatives?
• Starbucks has created a recognizable brand all over the world. When you see a mermaid logo with
a green background, the first thing that comes to our minds is Starbucks.
• The mobile payments of Starbucks give customers an experience to go cashless while enjoying
their coffee. This EC initiative increases brand recognition of the company.
• Consumers nowadays prefer companies that give importance to every penny they spend on buying
their products. That is how My Starbucks Rewards attracts loyal customers. It is a win-win
program for both the company and the customer. The company gains its profit and retains its
existing customers. While the customer receives extra benefits for being loyal to the products they
patronize.
• The e-gift card program is also another way for Starbucks to increase its brand recognition by
letting their loyal customers buy customized gift cards. The recipients of the gift cards may not be
a regular buyer of the products. This way, they can build awareness in the minds of the recipients
that the company exists. The recipients of e-gift cards are now their potential loyal customers.
Another win-win program for the company and the customer.
• The use of Social media like Facebook, LinkedIn, Google+, Twitter, YouTube, Flickr, Pinterest,
and Instagram have also a great impact on increasing the brand recognition of Starbucks. People
nowadays, including the young ones and the adults, are very active on these social networking
sites.

(b) Some criticize My Starbucks Idea as an ineffective

“show off.” Find information about the pros and cons of
the program. (See the Starbucks Ideas in Action Blog).
Advantages of the My Starbucks Idea was:
• That the company was able to encourage customers and fans to share their ideas on how to
improve the products of the company.
• Through this program, the company was able to create a lot of Starbucks’ product innovations.
• The company was also able to retain its consumers and increased customer loyalty.
• The company made each customer feel important and gave them a voice that the company listened
to.
 • Because the customers know very well what they want and with their preferences, that company
delivered to them, Starbucks became the market leader and created a well-known brand.
• The platform was advantageous to the company as it is where suggestions like mobile payment
systems and offering free Wi-Fi came from. Hundreds of ideas that are being practiced now came
from the My Starbucks Idea.
• Another advantage of the platform is that the company generated media attention and free
advertising through the engagements of their fans and customers online. The program became a
marketing tool to create and build a community that interacts and shares awesome and valuable
ideas with the company.

Some of the disadvantages of the platform are;

• The platform can also be used to mock the company itself. Platform misuse and online abuse are the risks
that the program carried and needed to be taken care of.
• There was breach of personal data and information might have also been at risk for both the employees and
the customers of Starbucks.

(c) Starbucks initiates discussions on Facebook about

non-business topics such as the marriage equality
bill. Why?
• Starbucks’ social initiatives have created a relationship between the customer and the company. By
showing that it is interested in and supportive of its customers’ beliefs and values, Starbucks can increase
customer loyalty and trust.
• By initiating discussions on Facebook about non-business topics such as the marriage equality bill,
Starbucks is demonstrating its commitment to social responsibility and engaging with its customers on
issues that are important to them.
• Discussing non-business topics on social media can also help to increase brand awareness and attract new
customers who are interested in supporting socially responsible companies. By taking a stand on important
social issues, Starbucks can differentiate itself from its competitors and appeal to customers who are
looking for more than just a good cup of coffee.

(d) Discuss how customers are being kept involved and

engaged in the various EC initiatives.
• Starbucks’ social initiatives have created a relationship between the customer and the company. This way,
customers are informed of the company’s latest happenings, and the company is keeping its customers
close to them.
• Personalization is one of the key strategies that businesses use to keep customers engaged in their EC
initiatives. By providing personalized product recommendations, offers, and promotions based on a
customer’s browsing and purchase history, Starbucks can create a more customized and engaging shopping
experience.
• Loyalty programs are a popular way to keep customers engaged in EC initiatives. By offering rewards,
discounts, and exclusive offers to loyal customers, businesses can encourage repeat purchases and build a
strong relationship with their customers. Consumers nowadays prefer companies that give importance to
every penny they spend on buying their products. That is how My Starbucks Rewards attracts loyal
customers.
• Social media platforms are another way that businesses are keeping customers involved and engaged in
their EC initiatives. By creating social media accounts and regularly posting engaging content, businesses
can reach out to customers and build a community around their brand.
• Interactive content, such as quizzes, surveys, and polls, is a great way to keep customers engaged in EC
initiatives. By providing interactive content, businesses can create a more engaging and interactive
shopping experience for their customers.
 (e) Starbucks believes that its digital and social initiatives are “highly innovative and cause dramatic
changes in consumer behavior.” Discuss.

• Starbucks used E-commerce and social enterprise approaches not only for increasing its revenues but also
for re-engaging with its customers. The digital era and emerging technologies required adjustments from
Starbucks in order for it to stay compatible in a new business environment.
• Most of the people are already looking for ways to save time and effort that is why consumers would
choose to buy products from companies that offer them easier and faster transactions. The mobile payments
of Starbucks give customers an experience to go cashless while enjoying their coffee. This EC initiative
increases brand recognition of the company. When customers are in a hurry but they want to grab a drink,
they won’t have to worry as long as they have prepaid cards or Starbucks mobile app installed on their
mobile phones.
• The digital and social initiatives of Starbucks are highly innovative in a way that they were able to increase
their operating income rapidly. Their digital and social media promotions have created a huge impact
mainly on their number of sales. The digital and social media initiatives of Starbucks gained popularity and
are recognized from all over the world, and giving the company various awards and praises.

(f) Watch the video available on Stelzner (2010) (8 min)

and answer the following:
i. How does Starbucks use video marketing in
social media?
• Starbucks uses video marketing in social media to create engaging content that resonates with their target
audience. They create videos that are tailored to their brand and highlight the unique experiences customers
can have when visiting their stores. Additionally, they use video to showcase new products and promotions,
drive customer engagement, and build relationships with their customers.

ii. How does the company listen to their customers?

• Starbucks has made it a mission to create a positive experience for their customers. Starbucks employees
learn how to recognize and respond to customer’s needs and wants. They use the “latte method” in
unpleasant situations. They Listen to the customer, Acknowledge their complaint, Take action by solving
the problem, Thank them, and then explain why the problem occurred. Starbucks employees respond well
to difficult situations – something that most service representatives find hard. They create a positive
experience for the customers.

iii. What are some tips for success and for things to
avoid?
Tips for Success:
• Set clear objectives for each social media campaign.
• Use the right tools for your target audience.
• Engage with your customers and build relationships.
• Monitor and respond to comments, questions, and feedback.
• Track your results and adjust as needed.
• Stay consistent with your message and branding.
• Offer incentives for people to participate in your campaigns.

Things to Avoid;

• Ignoring customer feedback.

• Spamming the customers emails.
• Posting too much or too little content.
• Not having a clear strategy or plan.
• 7. Not engaging with your audience and customers.
• 8. Not having enough resources or personnel to manage your social media accounts.

iv. Enter facebook.com/Starbucks. Summarize your

impressions of the site

The Starbucks Facebook page is a great example of an engaging social media presence. It features a range
of content, from posts about new products and recipes, to customer stories and engaging videos. The page
also features a variety of interactive elements, such as polls, contests, and quizzes, that are designed to keep
customers engaged and interested in the brand. The page also offers customers the chance to connect with
the company directly, allowing them to ask questions, provide feedback, and even make suggestions for
new products. Overall, the Starbucks Facebook page is an excellent example of how companies can use
social media to reach and connect with their customers.