South Korean police raided the headquarters of Starbucks Korea on Wednesday, as they continue to investigate the coffee chain that faced a nationwide backlash and publicity crisis over a disastrous ad campaign.
Background of the Controversy
The crisis began in May, when Starbucks Korea launched a “Tank Day” marketing campaign to promote its “Tank” line of tumblers. However, the campaign was unveiled on the same day as Democratization Movement Day, which commemorates the 1980 Gwangju Uprising, when more than 100 civilians were killed during pro-democracy demonstrations led by students during an era of military rule.
Starbucks Korea issued a formal apology that day, shortly followed by Starbucks Global, which said an investigation had begun into what went wrong. The day after the campaign launch, Shinsegae Group fired the CEO of Starbucks Korea, citing “inappropriate marketing.”
The company has since seen a significant drop in sales, and has been in damage control mode – including shutting all its stores in South Korea for an afternoon in June so staff could undergo mandatory training on historical awareness and social sensitivity.
Original reporting: KTVZ (Central Oregon) — read the source article.
