Wednesday, May 2, 2007

Starbucks: A best Brand


I'm currently reading Joseph Michelli's book "The Starbucks Experience" to gain insights on how such a well-branded company carefully crafted its image. Michelli wondered too, and when he approached Starbucks about his idea, he was surprised to receive full support and unfettered access at all levels. Such openness may be suprising at first glance, but that alone tells you everything you need to know about Starbucks' success; Everyone from the CEO to the baristas behind the counter embody the brand with clarity, consistency and passion.

Wait a minute here, I thought we were just talking about coffee? Exactly. Passion is critical, whether you're curing cancer or just making a cup of coffee. Communicating passion, however, is easier said than done. That's why I am enjoying this book. Filled with nuggets on employee empowerment strategies, complete with great anecdotes, one statistic jumped off the page. Long considered one of the nation's best employers, with an employee (Starbucks calls them "partners") satisfaction rate at an unheard of 82%, Michelli writes:

"But the treatment that partners receive at Starbucks goes well beyond stock options and health insurance. For example, partners are given extensive training in product knowledge, guiding principles for success, personal empowerment, and the importance of creating warm customer experiences. In stunning contrast to most Fortune 500 companies, Starbucks consistently spends more on training than it does advertising" (page 8).

Makes sense. The most effective marketing is a positive customer experience, which in this case goes beyond just premium coffee. That is why Starbucks remains a dominant market leader despite new competition from unlikely sources like McDonald's and Dunkin' Donuts. While taste tests may induce trial, it's the "Starbucks Experience" that has solidified their market position and makes Starbucks a Best Brand.

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