Starbucks Social Media

Topics: Starbucks, Social media, Coffee Pages: 6 (1812 words) Published: February 10, 2011
Norathip Noradee
(Student ID: 1278707)

This report is produced to fulfil assessment criteria of
Edexcel Level 7 BTEC PG DMS

Research Methods for Strategic Managers (Unit 16)


3.1Research Question3
3.2 Hypothesis3
3.3Background Theory4
3.4Factors for Successful Research Question Selection4
3.5Brief Summary to The Organisation5
3.6Context and Rational6
3.6.1Problems Faced by Company (name)6
3.6.2Reasons for the Research7
4.Literature Review7

Social media is related to increasing sales.
The purpose of this assignment is to discuss the role of social media to increase sales. I aim to describe what Social media is and how it is used in Starbucks. According to Bernal (2010, p.14) Social media is, creating a virtual community where users can share, discuss, collaborate, and even argue about topics of common interest. In addition, it is very useful and accurate in getting immediate response from what people think about something. Some examples of social media communities such as facebook, twitter, my Starbucks Ideas and so on. According to Starbucks (Starbucksi, 2010) Starbucks first came into existence in 1971 in Siegel, historic Pike Place market when it was owned by Jerry Baldwin, Zev Siegel,and Gordon Bowker. The Starbucks coffee chain is now successfully serving over five hundred stores in the UK with approximately 34million customers every year. Starbucks used these social communities beautifully to build up a customer base by implementing ideas given by users. They successfully derived the feedback from people and utilized them to implement new strategies. 3. RESEARCH PROPOSAL

3.1Research Question
How Starbucks social media helped in increasing sales.
3.2 Hypothesis
If social media related to sales, then better access to social media will increase sales. 3.3Background Theory
As discussed above social media is creating a virtual community for sharing, distributing and debating, which helps to get an overview of people about your product. And if the response is good that can offer you a better sales opportunity. A website on Social Media that comes alive (Social signal, 2009i) states that social media and sales are inter-related to each other, as it increases the awareness and prestige of company’s product and more people want to invest in the company. Furthermore, it builds up a relation of loyalty for the products and services by company and then the customer purchases more often or in a large volume. Moreover, Social media can be used to add value to the existing products or services, creating new offerings, or sell more effectively, so that the company can sell more effectively at a higher price or higher volume. A website on Negative effects of Social Media in business (benathers, 2010i) states that social media is definitely very helpful. However, it can be definitely downsides to social media in business. If a company throws all the social media icons on its page (Twitter, Facebook, YouTube, etc.) and promote that the company is social they can appear pretty out of touch if the pages are not updated regularly. Firstly, the company might get too excited to post information on any portal that they might reveal too much information. Secondly, it might reveal too much about an upcoming or incomplete product and that allows the competitors to plan. Finally, it might hype up new features of a product that are months away-making customers feel that the current product lacks in features. 3.4Factors for Successful Research Question Selection

This question was selected to gain new skills and knowledge by looking into the working techniques of the fastest developed company Starbucks because it was the one who started this and has consequently perfected it. 3.5Brief Summary to...
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