Get ready, get set, GROW!!! It really seemed to be Starbucks' mission in life. From 1998 to 2002 they tripled the number of stores operated or licensed. They wanted to penetrate every market possible and appear to have been quite successful in achieving this goal. Starbucks had also defined what they wanted to do when they grew up, meaning they wanted to be the third place in a person's life after work and home. Starbucks created a unique gathering place for people and primarily targeted affluent shoppers for its inception. Starbucks truly felt they delivered the values of 1) Providing the highest quality coffee, 2) Creating a welcoming and customer-centric experience, 3) Proud of their unique ambient atmosphere. So Starbuck's wasn't just trying to sell great coffee, they were also creating a unique experience. There are several factors that have formed the structure of Starbucks' success. One of the main factors was that they brought back the trend of drinking coffee. With this atmosphere established they could charge a premium for every cup of coffee - everyone wanted to go to Starbucks! Along with the trend that has been created, they have gained great customer loyalty, with their best customers visiting up to 18 times in a month. This customer loyalty was not a mistake, as one of their mantras was to create an experience and always say yes to the customer. They were really trying to become the Ritz Carlton of coffee. Another important factor that contributed to their success was the way they treated their employees. Associates or bartenders were offered perks and profit sharing, which is uncommon among hourly employees. This has created a culture of dedication among these employees which has led to very low turnover rates. This helped with the good customer service that customers expected. Starbucks also always “self-evaluated” through secret buyers who reported their experience; this helped ensure that all shops maintained their A level. These results were continuously monitored so that patterns, both good and bad, could be identified. A third factor that contributed to Starbucks' success was the partnerships they formed. The first step was to establish partnerships with coffee farmers and work directly with them to ensure the highest quality of the product. The next step of this partnership was to bring their uniquely developed products to markets through other distribution channels.
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