[ProfessionalDevelopment 2434] A Parable - What we in Literacy Programs Can Learn From Starbucks' MistakesVirginia Pulver virginia at nmcl.orgFri 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$xd-qy/news19> Vol. 2, No. 59 August 1, 2008 MarketingProfs, LLC | 5315 B FM 1960 W #191 | Houston TX 77069 Copyright C 2000-2008 MarketingProfs, LLC All Rights Reserved. <http://marketingprofs.chtah.com/a/hBIkyxYAJaJZfB7SJGDBy$xd-qy/spacer.gif> -------------- next part -------------- An HTML attachment was scrubbed... URL: http://www.nifl.gov/pipermail/professionaldevelopment/attachments/20080801/97c47cb2/attachment.html -------------- next part -------------- A non-text attachment was scrubbed... Name: not available Type: image/png Size: 333 bytes Desc: not available Url : http://www.nifl.gov/pipermail/professionaldevelopment/attachments/20080801/97c47cb2/attachment.png
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