Last week, Adam, Victor, and I braved the winter storm watches and joined the audience of the Ad Club of West Michigan luncheon. John Moore, self-proclaimed Marketing Medic, has spent many years implementing marketing ideas for folks like Starbucks and Whole Foods. His latest book: Tribal Knowledge: Business Wisdom Brewed from the Grounds of Starbucks Corporate Culture tells the story of the processes and products that have made Starbucks the brand it is today. Who could resist the chance to hear about the inner workings of one of the most iconic brands of our time? Not us.
Now you can only get so much out of a 60 minute presentation, but there were a few things we gleaned from this hour that I think serve as good reminders to any business owner, large or small, and point to some of the reasons Starbucks was able to decommoditize coffee. And why they’re not perfect.
1. Have a strong point of view.
2. Stay focused.
3. Get big, but stay small.
4. If you’re small, make yourself look big. This helps build trust and confidence with your customers.
5. Take the common and make it uncommon. Think about the naming convention for cup sizes at Starbucks. This is part of their plan to play to the intellect of their consumer base; not just to annoy people.
6. Market to your employees; they can be your best source of advertising.
7. One of my favorite sayings is “people will support what they help create.” John Moore says it in other words… treat your employees as partners, not pawns.
8. When you start using low prices as a market differentiator, you’ve just run out of ideas.
9. Products fulfill a need; experience fulfills desires.
10. You must make some compromises for growth; like the Starbucks drive-thru for instance (can you say Dunkin’ Donuts?)
Starbucks may have achieved rock star brand status, but they’re not without their mistakes. You may have already heard about the 3 hour “coffee break” in an effort to reenergize their baristas and get back to the art of making cups of caffeinated deliciousness. This is just one of their public efforts to refocus; and admit they may be losing their luster; what with the finger puppets, the mediocre food, the music, and the movies they plug. And when will they offer WiFi access? Come on ‘bucks, catch the bus!
Speaking of catching the bus, Starbucks has very little web presence, according to Moore. I had to say, ‘according to Moore,’ because I’m not sure he’s right. The day before this luncheon I noticed an “Addicted to Starbucks” group on Facebook; so maybe they’re on their way. Point is, if you have 7,000 locations around the country and some very loyal lovers/haters, and social networking tools at your fingertips; go ahead and give people a third place to gather and give their feedback. Maybe Kenny G would never have made it to the Starbucks countertop.
Congrats on the Addy for the ICFF Exhibit. Quite possibly the greatest piece of design to have come out of Design People thus far. Well done.
Starbucks customers have their own blog, Starbucks Gossip:
http://starbucksgossip.typepad.com/
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