Dive Brief:
- Starbucks has teamed up with Lady Gaga to donate 25 cents from Cups of Kindness purchases from June 13 to June 19, per The Drum.
- The drinks — including Matcha Lemonade, Violet Drink, Pink Drink and Ombré Pink Drink — in the promotion were chosen by Lady Gaga who said in a statement, “I adore the entire collection and I instantly fell in love with the Matcha Lemonade.”
- The promotion benefits Lady Gaga’s Born This Way Foundation. The foundation is geared toward a younger demographic and the funds raised will support programs for youth wellness according to a release.
Dive Insight:
Starbucks had a short-lived hit in May with its Unicorn Frappuccino that was only sold for five days, but led to social media sharing that directly played into the brand’s digital push. That push included adding artificial intelligence technology in its iOS app and launching a reorder skill for Alexa-powered devices.
The partnership with Lady Gaga looks to be part of an ongoing strategy for Starbucks, which may be looking to once again capitalize on a limited availability item. At the time of the Unicorn Frappuccino promotion, executive chairman Howard Schultz said, "Just stay tuned, because we have a lot more coming." The viral success of the Unicorn Frappuccino was attributed to both its short run and its social media ready name and look. Reviews of the drink's actual flavor were less than glowing, but the product's photogenic look and unicorn affiliation helped spur it to social media stardom.
Starbucks efforts to recreate that buzz with another limited time offer centered on colorful beverages may not hit the same heights, but the addition of a celebrity like Lady Gaga and the charity component may tweak the model enough to drive some attention.
Starbucks was under the gun after its latest earnings report saw a 2% drop in transactions, but Schultz pointed to product, mobile and digital developments as areas that are expected to boost sales through the rest of the year. The company has a five-year strategy in place to build the chain to 12,000 stores worldwide by 2021.