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Brand Democracy
          Starbucks Case Study




                Trend #6
         YouthTrendsReport.com




YOUTHTRENDSREPORT.COM        BRAND DEMOCRACY
We've moved into an era of Brand Democracy -
where it's no longer appropriate to tell the brand's story.




                         We need to help youth tell theirs.


    YOUTHTRENDSREPORT.COM              BRAND DEMOCRACY
Are you still telling
stories about your
own brand or helping
customers tell
theirs?




       YOUTHTRENDSREPORT.COM   BRAND DEMOCRACY
“Without our
                          customers we’d be
                                   nothing.”
                        “They are the brand.”
                               -Jake Nickell,
                                 Threadless




YOUTHTRENDSREPORT.COM     BRAND DEMOCRACY
Brands need to empower youth
                 to tell their story by building
                 platforms that facilitate this new
                 narrative.




YOUTHTRENDSREPORT.COM          BRAND DEMOCRACY
MY STARBUCKS IDEA                                          CASE STUDY




  Started in 2008, My Starbucks Idea is an online ideation platform. At the
  core of this online community is the philosophy that consumers who
  benefit from the Starbucks experience need to be involved in creating
  and advancing the it. Members can submit ideas on what new products,
  new locations or changes to existing products and locations they want to
  see.



YOUTHTRENDSREPORT.COM                                    BRAND DEMOCRACY
MY STARBUCKS IDEA                                        CASE STUDY




  Starbucks has democratized its own brand by empowering customers to
  create, vote and discuss ideas for improving the brand experience. The
  conversation is monitored and guided by Starbucks employees. Ideas
  that become popular are finally take up for action.




YOUTHTRENDSREPORT.COM                                 BRAND DEMOCRACY
MY STARBUCKS IDEA                      CASE STUDY

                        “We could give away
                        free stuff for days but
                        in the end we're not
                        earning your loyalty,
                        we're picking up your
                        frequency which
                        don’t get me wrong is
                        a good thing, but it's
                        not lasting. It's how
                        Starbucks makes you
                        feel when you walk
                        in, take a sip, or sit
                        down for a moment
                        that should earn your
                        respect.”

                        -Starbucks
                        Representative

                                                  flickr: shewatchedthesky




YOUTHTRENDSREPORT.COM                BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                          OPINION PANEL


With the current all-time high hype about the online
world and how brands think they "should" get onto
the internet (be it Facebook, Twitter, Blogs, and
microsites) is just merely creating a lot of noise for
the customers.

What customers DO NOT need are irrelevant
information and marketing messages. What
customers DO need is a platform that is not selling
but instead providing them the real opportunity to
                                                          Youth Research Partner
participate and continue to be part of the brand
                                                               Bernard Hor
experience.
                                                          Kuala Lumpur, Malaysia
Through My Starbucks Idea, its customers
(especially the fans) begin to feel the sense of
belonging with the brand and the sense of pride that
they are "connected" with a brand like Starbucks.




          YOUTHTRENDSREPORT.COM                          BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                      OPINION PANEL



What differentiates Starbucks among others is
their consistency in building this democratic
process with their customers.

Like real politics, it creates trust and people
become a Starbucks identifier in some way.

On the other hand, I believe this Starbucks
campaign is not just some PR gimmick for their
branding but they really really listen to their      Youth Research Partner
customers and make their ideas reality. This           Muhammad Faisal
means they've broken the internal barriers within      Jakarta, Indonesia
the organization that prevents the customer from
reaching them. Kudos to Starbucks.




        YOUTHTRENDSREPORT.COM                       BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                        OPINION PANEL




My Starbucks Idea has helped Starbucks stay
relevant in the face of a bearish retail sector and
competition from lower margin operators like
McDonald's. In the medium term it's about
survival. When consumer confidence returns and
retail begins to grow again, ongoing dialogue
with their customers will be core to Starbucks'        Youth Research Partner
expansion.                                                 Graham Brown
                                                          London, England




        YOUTHTRENDSREPORT.COM                         BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                       OPINION PANEL



With My Starbucks Idea, Starbucks has made a
commitment. It's not just a microsite that sits
there where customers can play a game and
then leave.

It’s very interactive with the brand, at any given
time there are 30-50 "idea partners" on the site
who are engaging around ideas. (Look at the
homepage for featured idea partners). Idea
partners are Starbucks employees monitoring           Youth Research Partner
and responding to the online discussion. So the         Freddie Benjamin
person responsible for espresso is looking into          New Delhi, India
ideas tagged under espresso and engaging with
customers who submit ideas and comments.




        YOUTHTRENDSREPORT.COM                        BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                      OPINION PANEL




Starbucks is collecting some serious social
currency here. It feels very much alive. I only
miss the audience. Can't people add a picture to
their profile, holding a Starbucks coffee? That
would reinforce the feeling that you are at a
Starbuck store online, with friends that care       Youth Research Partner
about the brand just as much as you do.                    Ab Kuijer
                                                     Amsterdam, Holland




        YOUTHTRENDSREPORT.COM                      BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                      OPINION PANEL


Customer and brand relationships are moving
from being transactional to becoming
partnerships.   This relates to the concept of
‘brand democracy’; the theory that you don’t own
your brand – the people do. It’s about creating
an opportunity to make a product their own and
‘democratize’ the brand. It is beneficial
to consider the new consumer as creative
partners.
                                                    Youth Research Partner
However, it is important to note, this does           Andrew Mackinnon
not necessarily class them as decision makers,       Melbourne, Australia
but as influentials in the process based upon
established parameters. Consumers still expect
the brand to satisfy unmet and unrealized needs.




        YOUTHTRENDSREPORT.COM                      BRAND DEMOCRACY
YOUTH RESEARCH PARTNER                        OPINION PANEL




I love this approach where the customers are
given the power in marketing, product
development or even strategy. A lot of times,
though, it's difficult to give away your power over
the brand to the consumers. But the key thing is
that you don't need an overnight revolution from
brand autocracy to brand democracy. What you           Youth Research Partner
need is an evolution and start with smaller things         Mikko Ampuja
and build the democracy brick by brick.                   Helsinki, Finland




        YOUTHTRENDSREPORT.COM                         BRAND DEMOCRACY
Sign Up to Receive a Free Youth Trends Report at

            YouthTrendsReport.com




  YOUTHTRENDSREPORT.COM          BRAND DEMOCRACY

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(Graham Brown mobileYouth) Starbucks Case Study in Brand democracy

  • 1. Brand Democracy Starbucks Case Study Trend #6 YouthTrendsReport.com YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 2. We've moved into an era of Brand Democracy - where it's no longer appropriate to tell the brand's story. We need to help youth tell theirs. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 3. Are you still telling stories about your own brand or helping customers tell theirs? YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 4. “Without our customers we’d be nothing.” “They are the brand.” -Jake Nickell, Threadless YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 5. Brands need to empower youth to tell their story by building platforms that facilitate this new narrative. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 6. MY STARBUCKS IDEA CASE STUDY Started in 2008, My Starbucks Idea is an online ideation platform. At the core of this online community is the philosophy that consumers who benefit from the Starbucks experience need to be involved in creating and advancing the it. Members can submit ideas on what new products, new locations or changes to existing products and locations they want to see. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 7. MY STARBUCKS IDEA CASE STUDY Starbucks has democratized its own brand by empowering customers to create, vote and discuss ideas for improving the brand experience. The conversation is monitored and guided by Starbucks employees. Ideas that become popular are finally take up for action. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 8. MY STARBUCKS IDEA CASE STUDY “We could give away free stuff for days but in the end we're not earning your loyalty, we're picking up your frequency which don’t get me wrong is a good thing, but it's not lasting. It's how Starbucks makes you feel when you walk in, take a sip, or sit down for a moment that should earn your respect.” -Starbucks Representative flickr: shewatchedthesky YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 9. YOUTH RESEARCH PARTNER OPINION PANEL With the current all-time high hype about the online world and how brands think they "should" get onto the internet (be it Facebook, Twitter, Blogs, and microsites) is just merely creating a lot of noise for the customers. What customers DO NOT need are irrelevant information and marketing messages. What customers DO need is a platform that is not selling but instead providing them the real opportunity to Youth Research Partner participate and continue to be part of the brand Bernard Hor experience. Kuala Lumpur, Malaysia Through My Starbucks Idea, its customers (especially the fans) begin to feel the sense of belonging with the brand and the sense of pride that they are "connected" with a brand like Starbucks. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 10. YOUTH RESEARCH PARTNER OPINION PANEL What differentiates Starbucks among others is their consistency in building this democratic process with their customers. Like real politics, it creates trust and people become a Starbucks identifier in some way. On the other hand, I believe this Starbucks campaign is not just some PR gimmick for their branding but they really really listen to their Youth Research Partner customers and make their ideas reality. This Muhammad Faisal means they've broken the internal barriers within Jakarta, Indonesia the organization that prevents the customer from reaching them. Kudos to Starbucks. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 11. YOUTH RESEARCH PARTNER OPINION PANEL My Starbucks Idea has helped Starbucks stay relevant in the face of a bearish retail sector and competition from lower margin operators like McDonald's. In the medium term it's about survival. When consumer confidence returns and retail begins to grow again, ongoing dialogue with their customers will be core to Starbucks' Youth Research Partner expansion. Graham Brown London, England YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 12. YOUTH RESEARCH PARTNER OPINION PANEL With My Starbucks Idea, Starbucks has made a commitment. It's not just a microsite that sits there where customers can play a game and then leave. It’s very interactive with the brand, at any given time there are 30-50 "idea partners" on the site who are engaging around ideas. (Look at the homepage for featured idea partners). Idea partners are Starbucks employees monitoring Youth Research Partner and responding to the online discussion. So the Freddie Benjamin person responsible for espresso is looking into New Delhi, India ideas tagged under espresso and engaging with customers who submit ideas and comments. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 13. YOUTH RESEARCH PARTNER OPINION PANEL Starbucks is collecting some serious social currency here. It feels very much alive. I only miss the audience. Can't people add a picture to their profile, holding a Starbucks coffee? That would reinforce the feeling that you are at a Starbuck store online, with friends that care Youth Research Partner about the brand just as much as you do. Ab Kuijer Amsterdam, Holland YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 14. YOUTH RESEARCH PARTNER OPINION PANEL Customer and brand relationships are moving from being transactional to becoming partnerships. This relates to the concept of ‘brand democracy’; the theory that you don’t own your brand – the people do. It’s about creating an opportunity to make a product their own and ‘democratize’ the brand. It is beneficial to consider the new consumer as creative partners. Youth Research Partner However, it is important to note, this does Andrew Mackinnon not necessarily class them as decision makers, Melbourne, Australia but as influentials in the process based upon established parameters. Consumers still expect the brand to satisfy unmet and unrealized needs. YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 15. YOUTH RESEARCH PARTNER OPINION PANEL I love this approach where the customers are given the power in marketing, product development or even strategy. A lot of times, though, it's difficult to give away your power over the brand to the consumers. But the key thing is that you don't need an overnight revolution from brand autocracy to brand democracy. What you Youth Research Partner need is an evolution and start with smaller things Mikko Ampuja and build the democracy brick by brick. Helsinki, Finland YOUTHTRENDSREPORT.COM BRAND DEMOCRACY
  • 16. Sign Up to Receive a Free Youth Trends Report at YouthTrendsReport.com YOUTHTRENDSREPORT.COM BRAND DEMOCRACY

Editor's Notes