The Evidence of Marketing Theory
After last week’s post on what actually makes an idea remarkable from the Marketing perspective of Seth Godin. I tried to find a suitable evidence how a brand had been changed through a vision of just one person, making a brand recognized all over the globe.
Inspired by the dilemma of my personal business-hero-story, I chose Howard Schultz, who made the Starbucks brand insanely successful and not just for its coffee! After a visit in Italy – seeing all those small, & cosy cafés – his vision started to arise:
“I wanted to blend coffee with romance, to dare to achieve what others said was impossible, to defy the odds with innovative ideas, and to do it all with elegance and style.”
Schultz wrote in his 1997 book, Pour Your Heart Into It: How Starbucks Built a Company One Cup at a Time.
Create Customer Value
Like most Marketing professionals like Seth Godin or Guy Kawasaki point out:
You have to create customer value – not just a product. Being remarkable and thus recognized.
Applying that method, Schultz envisioned the “customer experience“ where Starbucks is “the third place” – people spend their time between home and work.
What he had in mind was definitely beyond the $4 cup of coffee – being more than just a good product.
The Desire for More
Well, Schultz’s vision could have stopped there, but it didn’t. As he told an audience at UCLA in September 2008 in this video, his goal from the start was to build a “different kind of company” – one with a “social conscience” and a “soul.”
His remarkable value lies in a balance between making a profit and being a benevolent employer and a generous part of community.
Schultz incorporated a number of revolutionary concepts others thought financially unwise, including comprehensive health insurance for part-time workers and investing in the communities where it does business. We all know how that turned out – it became a major part of the Starbucks brand.
If you don’t believe me, look at the current SWOT– Analysis of Starbucks, which I found surfing the net. Where I see a lot of Schultz’s points reflected.Especially looking at strenghts!
In short, some major points, I think were most influenced through his vision:
● High visibility locations to attract customers
● Valued and motivated employees, good work environment
● Good relationships with suppliers
● Industry market leader
● Customer base loyalty
● Product is the last socially accepted addiction
● Widespread and consistent
● Knowledge based
● Strong Board
● Strong financial foundation
I’m curious about your feedback. Feel free to comment.