13 | It's the Coffee Stupid

How did Bill Clinton win the 1992 election? Jon Steel and Clinton's campaign strategist James Carville would argue it's because Clinton's brand message was focused so dedicatedly to the issue plaguing American's most.

"It's the economy stupid."

The economy sucked in the early 90s. It sucks today. It is the top issue on the minds of Americans today. Clinton used the times to his advantage by addressing them. Starbucks is doing likewise, despite being a coffee company.

The project is simply named "Create Jobs For USA." Starbucks has teamed up with Opportunity Finance Network (OFN) to invest in small locally owned businesses across America. Small businesses are best suited to create jobs (and avoid negative connotations associated with large corporations). Here's how it works:

-Customers at Starbucks are encouraged to donate $5 to the cause.

-OFN invests that $5 and increases it sevenfold to $35

-For every $3,000 donated by coffee drinkers, $21,000 is raised, which is enough to create or sustain an average of one job. 

-The money is invested in small businesses, afforable housing, micro-enterprises, and non-profits

-The project has a 98% repayment rate allowing every dollar to go further.

-Starbucks has started off by seeding the project with $5,000,000 with no strings attached (that's a major ad campaign budget and then some!)

Coffeehouses are the proverbial "third place" in oiur lives. If you are unemployed it may be your second place. Either way, miliions of Americans find themselves in a Starbucks every day. While there, they notice this campaign to create jobs. Starbucks gets it. It's the economy [stupid]. Create Jobs for USA shows this goodwill every time somebody steps into a Starbucks line and gives any person an opportunity to give support to their community in a feasible and measurable way. What a great idea.

The core is there, but I believe Starbucks could effect far more good with a stronger promotional strategy. Right now, the holiday promotions are in full force. No surprises there. The holiday season brings in a huge percentage of Starbucks' revenues. Besides, even I'd be upset if something got in the way of my Pumpkin Spice Latte. But January is a month and a half away. The start of the the year is one of the hardest seasons economically for most Americans, and 2012 is an election year undoubtedly dedicated to job creation. Starbucks ought to jump on the opportunity.