Starbucks: A PESO Model Marketing Simulation

Welcome to the simulation! In this exercise, you will explore the Paid, Earned, Shared, Owned Media (PESO) model by analyzing how Starbucks can effectively launch a new Thanksgiving beverage.

Scenario

Scenario: Starbucks is planning to introduce a new Thanksgiving beverage, aiming to increase sales by 10% during the holiday season.

Please enter your first name:

Round 1: Paid Media

What is the fastest way to gain widespread awareness about the new Thanksgiving beverage?

Create a viral social media campaign
Launch a targeted paid advertising campaign on social media platforms
Rely on word-of-mouth marketing
Partner with influencers to promote the beverage

Which of the following is an example of Paid Media?

A customer sharing a photo of their Starbucks drink on Instagram
A news article about the new Thanksgiving beverage
A sponsored post on Facebook promoting the beverage
A blog post on the Starbucks website about the new beverage

Why is Paid Media important for launching a new product?

It's cost-effective and can reach a large audience quickly
It's less risky than other marketing channels
It's more reliable than organic reach on social media
It guarantees a high return on investment

Which of the following is a potential drawback of using Paid Media?

It can be expensive
It can lead to brand awareness
It can be difficult to measure its effectiveness
It can't be targeted to specific demographics

Feedback for Round 1

Correct answers and explanations:

1. Launch a targeted paid advertising campaign on social media platforms
2. A sponsored post on Facebook promoting the beverage
3. It's cost-effective and can reach a large audience quickly
4. It can be expensive

Feedback: Paid Media can be a powerful tool for reaching a wide audience quickly, but it can also be expensive. It's essential to carefully target your ads and measure their effectiveness.

Round 2: Earned Media

What is the best way to encourage customers to share their experiences with the new Thanksgiving beverage?

Offer a discount for sharing a photo on social media
Run a paid advertising campaign promoting user-generated content
Partner with influencers to create sponsored content
Provide excellent customer service

Which of the following is an example of Earned Media?

A sponsored post on Instagram promoting the new beverage
A press release announcing the launch of the new beverage
A customer review on Yelp praising the new beverage
A blog post on the Starbucks website about the new beverage

Why is Earned Media valuable for a brand?

It's less expensive than Paid Media
It's more trustworthy than Paid Media
It's easier to control than Paid Media
It guarantees a high ROI

How can Starbucks encourage Earned Media for the new Thanksgiving beverage?

By offering a loyalty program with exclusive rewards
By providing excellent customer service
By running a social media contest
By all of the above

Feedback for Round 2

Correct answers and explanations:

1. Provide excellent customer service
2. A customer review on Yelp praising the new beverage
3. It's more trustworthy than Paid Media
4. By all of the above

Feedback: Earned Media is valuable because it's often seen as more trustworthy than Paid Media. By providing excellent customer service and encouraging customer engagement, Starbucks can generate positive word-of-mouth.

Round 3: Shared and Owned Media

What is the best way to leverage Starbucks' owned digital channels to promote the new Thanksgiving beverage?

Run a social media contest
Partner with influencers
Create a blog post on the Starbucks website
All of the above

Which of the following is an example of Shared Media?

A post on the Starbucks blog
A customer’s Instagram post about the new beverage
A Starbucks newsletter
An advertisement in a magazine

Why is it important to manage both Shared and Owned Media effectively?

To ensure consistency in messaging
To reduce marketing costs
To increase direct sales
To guarantee media coverage

What is an example of leveraging Owned Media for a product launch?

Sending a press release to journalists
Creating a YouTube video campaign
Hosting a live webinar on Starbucks' website
Running a paid ad on Facebook

Feedback for Round 3

Correct answers and explanations:

1. Create a blog post on the Starbucks website
2. A customer’s Instagram post about the new beverage
3. To ensure consistency in messaging
4. Hosting a live webinar on Starbucks' website

Feedback: Owned Media gives a brand complete control over its messaging. By leveraging its owned digital channels, Starbucks can create a consistent brand experience and promote the new Thanksgiving beverage effectively.

Final Score

Your final score is:

Here's a brief overview of how Starbucks can use the PESO model for the new product launch:

By leveraging Paid Media to reach a wide audience quickly, Earned Media to build credibility, Shared Media to engage with customers, and Owned Media to provide detailed information, Starbucks can create a comprehensive and effective marketing strategy.

Starbucks: A PESO Model Marketing Simulation

Company Information

Scenario

Please enter your first name:

Round 1: Paid Media

Feedback for Round 1

Round 2: Earned Media

Feedback for Round 2

Round 3: Shared and Owned Media

Feedback for Round 3

Final Score