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| বাংলায় পড়ুন | Researchers and Reporters: Tanjil Fuad[/button] Ayesha Akhter |
The importance of coffee as a drink is distinctive around the world. Many individuals rely on coffee to help them feel less exhausted when they wake up in the morning, under pressure at work, or after a long day. Some people use coffee as a medication to feel better. High-quality coffee beans provide coffee with a distinct flavor and demand. Along with that, the cost is high—however, coffee aficionados like the flavor of those expensive coffees. While tea is highly popular in our nation, coffee is far more popular in Europe and America.
Numerous establishments for the sale of coffee beans have long existed in these nations as a result of the increased demand for coffee. Meanwhile, some entrepreneurs have launched coffee shops or restaurants alone or in collaboration. While some have been successful, others have failed to move the business forward. Today, we’ll discuss how a coffee shop started as a coffee house and evolved into one of the most prosperous coffee businesses globally. Starbucks comes to mind when we think about coffee shops. Starbucks made $26.51 billion in 2022, according to the 2023 report. Let’s examine some of the business techniques that Starbucks has used to achieve such global success.
Beginning story
The story behind Starbucks began in the 1970s with three men. In Seattle, Washington, USA, Zev Siegl, Gordon Bowker, and Jerry Baldwin, three friends, had planned to do something. When Gordon traveled to Milan, Italy in 1962, he found that the coffee there was incomparable. He frequently traveled from Seattle to Vancouver to procure coffee beans in pursuit of such high-quality coffee. He shared this coffee with his other two friends as well. From that point on, they considered starting a coffee shop.
Starbucks’ journey began in the 1970s, led by three individuals. | Photo collected.
Most Americans drank low-quality, inexpensive coffee at the time. Zev Siegl went to the public library and searched through the phone books and newspapers because they had no prior expertise in the coffee shop industry. They came across a man named Alfred Peet. Peet’s Coffee, which he owned, pioneered in introducing roasted coffee to the United States. On March 30, 1971, the trio started a coffee shop in Seattle’s Pike Place Market after learning about the coffee industry from him. The first Starbucks was created by three friends, who each contributed $1,350 in capital and took on an additional $5,000 in debt.
But Howard Schultz is the person behind Starbucks’s current success. With the assistance of other investors, he purchased Starbucks in 1987 for $3.8 million, and its image has evolved since then.
Starbucks’ success primarily came through the hands of Howard Schultz. | Photo collected.
Starbucks’ Business Strategy
Howard Schultz employed several business techniques to make Starbucks successful. Let’s examine them more closely.
Premium Customer Experience
Starbucks has always prioritized exceptional customer service by highlighting superior products. The company takes great care to ensure that clients can receive the most individualized treatment in an exquisite and cozy setting. Starbucks obtains its own coffee beans and roasts them in-house to deliver a superior experience. Apart from its coffee varieties, the company also sells other premium goods like teas, pastries, and sandwiches, which are the most popular among consumers.
Starbucks ensures a premium experience for its customers. | Photo collected.
Customers recognize Starbucks baristas for their expertise and enthusiasm for coffee. Orders are taken and served according to each customer’s unique preferences and tastes. Additionally, Starbucks made a wise investment in technology to improve the convenience of its locations and the customer experience. Mobile ordering, digital payment methods, Wi-Fi in-store, charging outlets beneath every table, and more have all been added. Customers can take advantage of their premium experience in this way.
Maintaining Strong Customer Relationships
Strong customer relationships are a key component of Starbucks’ business strategy. The corporation provides some perks to foster enduring relationships with its patrons, such as the Starbucks program, coupon cards for frequent purchases, complimentary food and beverages on birthdays, tailored offers based on client purchases, and free refills. These initiatives and perks boost repeat business, foster a closer bond between the brand and its customers, and drive people to return.
The ‘Third Place‘ concept has essentially influenced Starbucks’ store designs. Some people like to have coffee by themselves, while others choose to meet in a peaceful setting or enjoy coffee with friends in a lively setting. These advantages are the main reason why customers continue to have a positive relationship with Starbucks.
Premium Price and Location
Starbucks’ premium strategy has helped the company grow its brand. In simple terms, they have persuaded consumers that getting their expensive coffee will provide them with a premium “Starbucks experience.” A lot of consumers think that superior products cost more. Due to Starbucks’ focus on quality and customer experience, customers are willing to spend more for a cup of coffee.
Starbucks’ unique combination of premium pricing and location. | Photo collected.
A major factor in Starbucks’ chain locations’ success is their widespread presence. Because of its wide global reach, consumers can find the brand practically anywhere. Need coffee? The Starbucks is located nearby. The atmosphere at each store is fantastic. Starbucks has established itself as a crucial meeting spot after homes and workplaces because of its “Third Place” positioning strategy. For their drinks and snacks, they are no longer restricted to the stores. Online orders are now also available.
Strategic Global Expansion
Global expansion is one of the main pillars of Starbucks’ business strategy. The company started with just one store in 1971, had 17 in 1987, and had 35,711 in 76 countries by 2023. That means that since 1987, the chain of coffee shops has opened two to three new locations per day on average.
They also have some roasteries, which roast coffee beans. Located in Chicago, USA, the biggest roastery. Comparatively speaking, Starbucks has more outlets than its competitors Dunkin’ Donuts, Tim Hortons, and Costa Coffee. They operate numerous stores in Asia, Africa, the Middle East, and Europe. On Fortune’s 2023 Most Admired Companies Worldwide, Starbucks placed 14th out of 645 businesses worldwide and first in the food service sector.
Starbucks’ strategic global expansion is one of the key factors behind its success. | Photo collected.
The consistent branding experience of Starbucks
A consistent brand image should be presented at all customer touchpoints, such as in-store interactions, product packaging, and marketing materials. Delivering a consistently high-quality experience that customers expect from the brand is the main goal of Starbucks’ business strategy. Starbucks has increased consumer loyalty by establishing an emotional bond with its patrons through consistent branding experiences.
Starbucks is connecting with customers and increasing brand exposure through social media. The company actively interacts with clients on a variety of platforms and maintains a strong social media presence. The business posts customer testimonials, events, and new product launches on social media. This interaction increases the likelihood that customers will return to Starbucks, which also helps to foster brand loyalty.
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