starbucks vs dunkin

8/3/2019 starbucks vs dunkin

1/22

Comparative Analysis of theSocial Media Effectiveness

Prepared by Hernan CarranzaSocial Media for Brand Managers - October 2011


2/22

Age 40 61

Went public 1992 2011

Employees 137,000 69,000

Stores 17,000 9,700

Stores in US 65% 69%

Company Synopsis

Source: wikipedia, own website


3/22

Market Share

DD is more efficient than SB on market points per store

Others

Source: market share reporter


4/22

experience - centeredthe third space, a warm environment that

elevates someones day

product centeredconvenient in-and-out wide menu store

Brand Strategy


5/22

Brand Backyard

Consumer experience

Engaged with coffee heritage

Expert & connoisseur

Casual lifestyle

Relaxing atmosphere

Cheerful employees

Clean branding


6/22

Brand Backyard

Diverse product portfolio

Delicious flavors

High value

Quick service

Playful and lively brand

Functional organization

Not so happy employees


7/22

Fans 25,4 MM 4,8 MM

Fans per store 1,494 494

Fan Growth (last month) 2% 17%

Fan Growth (last semester) 23% 45%

FB stat were here * 12,02% 0,17%Posts per day (last month) 184 244

* FBs official metric on users activity, including posting, liking, commenting, and sharing.

SB is the 3rd brand with more FB fans in the world (after Coca Cola and Disney)

SB has 4 times more fans than DD; in fact, SBs Frappuccino FB page has 60%

more fans that DD main FB page

In spite of the huge gap, SB only has 50% more fans per store than DD; and

DD fan volume is growing faster

DD page has 30% more daily posts; however, SBs engagement* is 12%, which

is exaggeratedly better than DDs (70 times higher!)

Source: socialbakers, facebook

Overview


8/22

Followers 1,750 M 107 M

Followers per store 103 11

Growth (last semester) 34% 45%

Tweets 8,5 M 10,5 M

Twitter age 4,8 years 4,1 years

Klout 80 70

SB is 2nd

brand with more Twitter followers in the world (after Whole Foods) SB shows a higher level of influence according to Klout index

Despite DD account is 25% more active, and despite both accounts have

roughly the same age, SB has 15 times more followers than DD, and 8 times

more followers per store

Source: socialbakers, twitter, tweet.grader

Overview


9/22

Results 17,400 5,550

Total views 7,0 MM 1,5 MM

Subscribers 11,5 M 2,6 MChannel comments 866 -

Joined Nov 2005 Jan 2006

Again, SB triples DD on volume of search results, and its channel has 4 times

more views and 4 times more subscribers.

DD does not allows public comments on its channel. Weird !

Look & Feel of the SB channel is more consistent with their branded website

Source: youtube

Overview


10/22

Owned Website

During the last semester, SB.com traffic was 4 times larger than DD.com

On the last trimester, SB traffic increased 6% while DD traffic decreased 2%

Source: alexa


11/22

SB search volume, in average, is 4 times larger than DDs (since 2004)

SB search volume showed an important increase during the last year

Owned Website

Source: google insights for search


12/22

The recurrent ratio 4 : 1 also applies for brand popularity amongst blogs

DDs peak on June is due to a Philadelphian woman suing the company

On the Blogs

Source: blogpulse


13/22

Starbucks shows less typos, and more unique words related to its brand

Top Unbranded Searchs in Google *

* Related to the brand, without using the name of the brand

starbuck starbucks

barista donuts

best coffee donut

frappuccino dunkin

star bucks the dunkin donut

free coffee donut dunkin

costa coffee doughnut dunkin

starbuck coffee dunkin doughnut

starbuck locations dunkindonuts

starbuck location dunkins

Source: Google Adwords


14/22

What is being said?

Source: Netbase


15/22

What is being said?

Source: Netbase


16/22

What is being said?

Source: Netbase


17/22

What is being said?

Some reflections on what is being said?:While both brands show a very positive net sentiment on the Internet, SBs

sentiment is way more positive than DDs

The word love is mentioned, in average, 20 more times for SB than for DD.

And also is a more important word among SBs mentions (with 43% vs. 31%)

Top 5 mentioned words mean mostly the same for both brands (semantically)


18/22

The GREAT Idea


19/22

Why is MSI The GREAT Idea?

MyStarbucksIdea.com is the social initiative that really makes the difference:

Launched in 2008, MSI is a site conceived and specially designed to listen

how their customers think and feel about the brand

Two way feedback, divided into product, experience and involvement ideas

180,000 registered users; 80,000 ideas submitted; 50 ideas implemented

My Starbucks Idea is showing the community that their voice is being heard.

It is much more a marketing tool than a market research initiative, orientated

to its core stakeholder: their customers.

The message is simple: Now SB belongs a bit to you because you were able

to propose something that actually happened.

And the cost of this idea is extremely low !


20/22

Effectiveness of Social Media strategy

Ad Spend 2011 $94 MM $145 MM

Online Ad 5 - 10% 10 - 15%

Ad Spend 2010 $33 MM $133 MM

Ad Spend Annual Increase 184% 9%

Source: adage.com, kantar.com

Benefits:Customer Insights

Brand Awareness

Drive People to Buy

Brand Engagement

Investment:


21/22

Conclusions & Final Analysis

Despite SB is closer to a lovebrand that DD might be,

the clear winner of this versus analysis is SB.

With less resources, SB has achieved much more in terms of Insights,

Awareness and, most importantly, Engagement

Even considering SB is a larger company, the gap between its

performance and DDs is way larger than the companys size difference

SB Brand Managers have had a more clever, aggressive and anticipated

reaction to changes on Digital Media

Focusing on developing consistent and relevant owned media (such as My

Starbucks Idea or Frappuccino.com), SB is permanently strengthening itsbrand origins

But the most important thing: SB has understood the final goal of its

social / digital / collaborative initiatives: to be closer to the customer, andto reinforce its image as a lovebrand.


22/22

Comparative Analysis of theSocial Media Effectiveness

Prepared by Hernan CarranzaSocial Media for Brand Managers October 2011

starbucks vs dunkin

Documents