Maintaining the audience’s loyalty is critical for any company. One of the most effective tools is offering promotions with favorable or interesting terms for individuals. In this context, such a well-known coffee shop brand as Starbucks is a good example. Throughout the year, the company offers consumers the opportunity to purchase its products at discounted prices or to experience something new by selling unique products. One of the most famous Starbucks promotion initiatives is the annual red cup, which, despite its popularity with the public, has been criticized.
As part of this work, the annual Red Cup promotion offered by the Starbucks brand will be considered. It is based on the offer to customers “gifting a free reusable red holiday cup to customers who order a handmade holiday beverage at a participating U.S. Starbucks store” (Starbucks, 2023, para. 2). A distinctive feature of this initiative is the fact that it is held one day a year and takes place while supplies last. Provided that the buyer returns the red cup they received, clean and reusable, to a participating U.S. Starbucks, they can receive a $10 discount. In addition, they also have access to 25 Bonus Stars for the Starbucks Rewards program.
The annual red cup promotion is one of the programs that Starbucks has been implementing for a long time. This is because it is one of the most recognizable, especially since it coincides with the holiday season. Thus, it attracts a significant number of customers who are in a hurry to get the coveted red mug for their drink. A positive impact factor is also the provision of discounts and points for those who return the purchased mug. Thus, this promotion at Starbucks is highly efficient and generates significant profits for the company, which justifies its repetition in the future.
At the moment, there are a large number of Google and other reviews of the product being promoted in the promotion under discussion. This is one of the main factors that have led to its continued success among the company’s offerings. Of particular value is disseminating information about this campaign to social media influencers, as it attracts a significant number of the young target audience for Starbucks. In addition, various news sources, such as The Independent and CBS News, annually post product reviews on their online platforms, which further increases the number of interested customers.
However, despite the effectiveness of the promotion under discussion, it faced significant criticism last year. It was mainly because many employees at participating U.S. Starbucks complained about the high volume of customers and their inability to keep up with service during the annual promotion (WQAD News 8, 2023). Because coffee shops are inadequately equipped, the company itself is blamed, and many places are forced to fire employees due to poor conditions.
Even though the company attempted to respond to criticism and take action, it was unable to find a common language with employees to resolve the problem. Thus, the proposed change is a more thorough preparation of points of sale for a large influx of buyers. This aspect also implies reducing the time required to sell drinks in an online app.
References
Starbucks. (2023). Nov. 16 is Red Cup Day! Here’s how to get your free Starbucks reusable red cup.
WQAD News 8. (2023). Starbucks workers walking out during annual red cup promotion. YouTube.