National Institute for Literacy
 

[ProfessionalDevelopment 2434] A Parable - What we in Literacy Programs Can Learn From Starbucks' Mistakes

Virginia Pulver virginia at nmcl.org
Fri Aug 1 12:42:23 EDT 2008


TGIF!



As I read the marketing message below, I found myself pondering how some of
the observations about Starbuck's management can be useful to those of us
working in the adult literacy community. Perhaps some of you will also
find the connection. A good parable can enlighten us on the choices we make
ourselves.



I would love to hear feedback from any of you who find this Starbucks story
resonates with your experience in how adult literacy programs grow and
change. I anticipate some interesting discussion. 8-)l



(If the article does not appear below, go to:
http://www.marketingprofs.com/ The article is part of their "Get to the
Point" newsletter which provides some excellent daily inspiration and
guidance on basic marketing, management and recruiting stuff - subscriptions
are free.)



"Ginn"

Virginia J. Pulver, AmeriCorps*VISTA

Recruiting Consultant, NM Coalition for Literacy

3209-B Mercantile Court, Santa Fe NM 87507

virginia at nmcl.org



YOU can become a volunteer adult literacy tutor or

refer adult learners for FREE 1-1 tutoring!

1-800-233-7587

Visit our Website: <http://www.nmcl.org/> www.nmcl.org



From: Get to the Point: Marketing Inspiration (MarketingProfs)
[mailto:MarketingProfs at marketingprofs.chtah.com]
Sent: Friday, August 01, 2008 9:36 AM
Subject: What You Can Learn From Starbucks' Mistakes




Trouble viewing this email? Read it on the Web here
<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news11> .





Get To The Point from Marketing Profs
<http://www.marketingprofs.com/news/marketing-inspiration/images/header.gif>





What You Can Learn From Starbucks' Mistakes



<http://www.marketingprofs.com/news/marketing-inspiration/files/GMI59_200x12
8.jpg> Comedians used to make jokes about cities with a Starbucks on every
corner. It seemed ridiculous at first, but we've gotten so used to their
ubiquity that the closure of 600 stores came as a surprise to many
customers. And in a post
<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news13> at
Harvard Business Online, John Quelch argues that the Seattle juggernaut made
a few key errors in the management of its premium-priced brand:

Losing the loyalty of early adopters who appreciated personalized service
and a relaxed coffee-house atmosphere. "To grow," he says, "Starbucks
increasingly appealed to grab and go [sic] customers for whom service meant
speed of order delivery rather than recognition by and conversation with a
barista."

Introducing a bevy of new products that appealed to a broad audience.
Customizable drinks were conceived to draw those grab-and-go customers, but
diminished in appeal when they took longer to make. The pricey concoctions
also seemed expensive when compared to premium alternatives from
budget-minded competitors like McDonald's and Dunkin' Donuts.

Creating artificial growth with new stores. "Eventually," he notes, "the
point of saturation is reached and cannibalization of existing store sales
undermines not just brand health but also manager morale."

"None of this need have happened if Starbucks had stayed private and grown
at a more controlled pace," says Quelch. "To continue to be a premium-priced
brand while trading as a public company is very challenging." And we think
the concept of moderating growth to protect your brand is pure Marketing
Inspiration.

More Inspiration:
Cam Beck: Superior
<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news12> Air
Power: How the Airlines Can Win
Valeria Maltoni: Blog
<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news16>
Council Unveils Disclosure Toolkit
Paul Dunay: Is
<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news17>
Social Media for the Young ... Or Is It More of a Lifestyle?

<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news10>

<http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/news19>


Vol. 2, No. 59 August 1, 2008




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