Starbucks will launch its newest campaign beginning November 27th that will run through January 2nd. A campaign that, in my opinion, is a total disgrace. A campaign that was presented to me through Facebook Event Invite. I am actually a bit angry about it.Starbucks will use cause marketing to attract coffee drinkers to its chains. From November 27th through January 2nd, any consumer that buys one of three drinks, 1) Espresso Truffle 2) Mocha Twist 3) Gingersnap Latte will have a whole 5 cents donated to The Global Fund to help fight AIDS, Tuberculosis, and Malaria. The other $5.55 will go to Starbucks, of course. In addition, on December 1st, World AIDS Day, the drinks will not be limited to just the 3 - all drinks will have 5 cents donated! WAHOO! (Completely sarcastic, of course).
Now, this actually isn't a bad idea for those that make a daily run to Starbucks already - these customers are given an option to donate 5 cents, of which would normally go towards their coffee addiction, to someone in need. What bothers me is that this billion dollar company is only donating 5 cents of its $6 drink to charity, but marketing themselves to be a company that, as I quote my Facebook invite, "is doing something GOOD." Additionally, the event invite goes onto say, "Everyone, for the sake of your neighbor, your friends, and most importantly to a stranger, become a PARTNER in this positive action. Come together with your community and contribute. Embrace the responsibility to make something happen, the potential for good. The world needs our help. TELL EVERYONE!" The world needs our help - but only 5 cents at a time. What a fantastic message.
Yes, the company still needs to make money, but it is only offering this promotion with THREE of its drinks. These drinks are also seasonal, which means the loyal customers that bring money into the company daily probably will not be purchasing these drinks everyday from November 27th to January 2nd. Here's an idea, Starbucks, why not promote donating that $6 that would go towards your coffee to a charity?
Sure, 5 cents can help to some extent, but there are plenty of organizations that are helping to raise money without gaining their own profit from it. As I mentioned a few weeks ago, Hanson (the MMMBop boys!) has started their own organization to help raise money towards AIDS treatment and research. Take the Walk offers a number of ways to donate money while still getting something in return. For example, one can buy their song "The Great Divide" for $1 or the music video for that song for $2 and ALL profits will be donated. In other words they do not make money off of that sale. Also, they have partnered with TOMS Shoes - buy one pair of shoes and one pair will be donated to a child in Africa. TOMS Shoes donates a pair of shoes for every pair bought towards children in need. So yes, TOMS Shoes makes money off that one pair of shoes, but they are still donating another pair which pretty much cancels out the money made on the pair purchased in the first place.
What I'm getting at is: Consumers - please do not be fooled by Starbucks. Even in this strained economy, they are still able to afford to donate more than 5 cents for every $6 coffee purchased. HAPPY HOLIDAYS!
What do you think? Is Starbucks saving the world or just trying to save its stocks?
2 comments:
Well, first of all, tis the season when every grocery store, coffee shop and sandwich joint seem to be "raising money" for local and international charities. This is a major boon to their bottom line by being able to write off their "gift." But please don't be fooled that your band friends are donating a lot of money either - you said "profit" meaning the $ after all the bills are paid goes out. Find out how much that is, exactly. Maybe 5 cents, maybe 10? How are they doing their calculations of "profit."
I like the shoe one though, interesting...
I'm not fooled, but thanks for the reminder that opportunists are everywhere.
Okay, I'll admit it, Starbucks is my guilty pleasure. But, I've often wondered why they haven't offered more incentives for people to come buy their products. I do think that their new 5 cent campaign is a joke ... they make SO MUCH money off of their fancy coffees alone, they can definitely afford to donate more than that. I'm sure the reasoning behind all of this is stocks, you're right. People are having to cut back on something in their lives and many are cutting back on their expensive Starbucks coffee, they may see this as a way to get these people to keep coming in. "Oh, we'll do something 'good' for someone else, it will tug at their heartstrings and we'll make even MORE money." Yeah, great job. What other suggestions do you have as far as things they can do to up their business?
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