Starbucks Coffee

Excellence in AMS for Starbucks

Background

Starbucks needed direction with their Amazon Marketing Services (AMS) advertising strategy for the ready-to-drink (RTD) category across EMEA, as previously, campaigns had lacked content optimisation and had limited use of paid display advertising.

 

Challenge

Starbucks’ main challenge was their reliance on a single wholesaler who supplied just key retailers. This coupled with lack of insight into consumer shopping behaviour was making it hard for them to generate demand for their products. It was therefore important to understand whether the business should focus on direct sales channels to own the consumer experience and increase margins or sell via many resellers to increase volume and geographic scale.

Strategy

We worked with Starbucks to define clear eCommerce objectives and built an investment recommendation using the core audience signals from our suite of owned and licensed tools.

For Starbucks the holy grail was getting their drinks and capsules added to a shopper’s weekly basket. Using category data from Gfk and Neilson along with EPOS data and consumer intent signals from our OMNI marketing platform, we helped Starbucks determine the most effective routes to market.

Whilst it wasn’t possible to impact Starbuck’s relationship with its main wholesaler, we were able to help them develop relationships with a wider group of retailers, including OMG clients Sainsbury’s and Waitrose. 

Next, we audited Starbuck’s digital shelf and retail health whilst optimising all content based on retail search insights. Then using Clavis, we benchmarked Starbuck’s content and set up a way of monitoring their ranking on retailer.com pages.

Finally, we built the full eRetail marketing plans and started running biddable media solutions to drive purchase across core and affinity categories. And by using the ASIN inventory tool to sync both paid search and media activity we avoided bidding on key words that were linked to products that were not in stock.

Results

The results speak for themselves. In just one year we helped Starbucks increase retail distribution, achieve a visibility score of 115%, COGS -56%, and grown sales out by 27%

 

Starbucks Coffee Video

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