Blogging 101

Tuesday, November 11, 2008

Starbucks: Free Coffee Equals Free PR

On election day, Starbucks offered a free tall cup of coffee to any customer who voted. Using only one paid spot and an online spot, Starbucks advertised their offer.

So was the free coffee worth the free PR for Starbucks? According to an AdAge.com article on November 10, Starbucks' buzz rating jumped from 25 percent to 51 percent on November 5. Starbucks isn't disclosing the cost of the promotion or how many cups of coffee were given away.

Starbucks is clearly already a very well-known and well-liked brand, but what I found interesting is the actual spot that ran. It puts Starbucks in a very positive light because they are promotion the give away as a reward rather than as a bribe. It was not "We'll give you a free cup only if you vote," but more of "Thank you for voting, here's your free coffee." It shows Starbucks as being a very socially responsible company because it acknowledged the right and privilege we have as Americans to vote.

While we as a public don't necessarily know the monetary ramification that this promotion had on the company, I think it put Starbucks in a good light and also acknowledged those who exercised their right to vote. The free PR that Starbucks received from word of mouth and customer satisfaction seems to outweigh the loss that it may have incurred from the giveaway. I thought it was refreshing to see a company that received free PR for doing something good for people and beneficial toward society rather than come sort of negative attention that ultimately results in publicity.

2 comments:

K said...

Interestingly enough, I just read somewhere that Starbucks' profits fell 97% last quarter. Because of the economic crisis, customers have less discretionary income to spend and are thus frequenting Starbucks less. However, I think that the free coffee was a smart PR strategy. It gets old customers back into Starbucks, reminding them what they love about the chain. Also, new customers may have been gained.

Christie said...

I thought this was a great promotion. I had friends looking for stickers so they could get free cups of coffee. This was great advertising and publicity for Starbucks. Besides being known for being socially responsible, Starbucks is also know for their unique atmosphere and making getting coffee and experience. I also thought it was interesting, considering how many organizations did things to get people out and voting, that Starbucks did their part to get people to vote.