Starbucks, falling off the altar?

After more than a decade of rapid development, Starbucks is once again in trouble. After Howard Schultz returned to Starbucks in April this year, Pop's round of operations made many people sigh: Starbucks is falling off the altar.

It's not the first time Howard has made what others consider to be "crazy" decisions to cut jobs, close stores and sell regional businesses. Now he has made such a decision to quote a Cantonese saying: "the sedan car is not afraid of the old, it is most important to accept it", which means that the method is not afraid of old-fashioned methods, but the most important thing is that it works. He successfully saved Starbucks in the same way during the financial tsunami more than a decade ago.

In the darkest moment of the financial tsunami in 2008, the global economy was hit, and Starbucks was no exception. Before the financial crisis, Starbucks expanded sharply in the global market and even created new business models in the music and entertainment industries, but it also meant that the business would be out of focus.

At that time, Starbucks carried out brand positioning and business development by observing consumers' lifestyle. The study of life style refers to the consumer perspective of exploring the behavior that can not be explained by the demographic variables of target consumers, understanding consumption motivation and value demands, and grasping their own products and services. Through the in-depth study of the life style of the target consumers, we can accurately capture the core characteristics of the target consumers and better formulate product positioning and marketing communication strategies. )

At that time, Starbucks developed a variety of different forms of business in order to attract more different types of consumers, which made the problems facing Starbucks more complicated after the outbreak of the financial crisis. The brand no longer resonates with consumers, and eventually Starbucks closed hundreds of stores during the financial tsunami, and its share price halved in 18 months.

In this tumultuous recession, Howard made the decision to reshape the corporate culture, redesign the value proposition for the brand and return to its roots, focusing wholeheartedly on customers and communities.

Although Starbucks has successfully expanded into the world's largest coffee chain and developed a variety of businesses by observing consumers' lifestyles, most of its partners don't know what customers need. as a result, customers can not be given a better store experience.

To this end, Starbucks launched a campaign called "my Starbucks ideas" to encourage guests to give feedback and suggestions directly to Starbucks headquarters. Starbucks finally adopted the 100 most customer feedback and suggestions into the core business model.

Among them, customization and environmental space requirements have become the most important things for Starbucks after this year. At the same time, Starbucks has also set many goals that can benefit society for a long time, such as moral procurement.

At the same time, during the transformation of the financial tsunami, Starbucks regarded all its employees as partners. At the same time, Howard also said: "Partners will always be Starbucks' most important asset." It is precisely because of the real attention to the feelings of guests and partners, so the financial crisis under the joint maintenance of partners, to show guests a new "third space" consumer dining experience.

In addition, Starbucks focuses on the procurement of coffee beans, through direct procurement, the establishment of a transparent supply chain and affirmative action to improve the cultivation and production of coffee farmers and achieve a virtuous circle of mutual benefit.

It is precisely because of this transformation that Starbucks has a very stable and rapid growth in the next decade. From the supply chain-production chain-consumer chain in a virtuous cycle of the environment spent the darkest moment, the outside world said that "consumers" saved Starbucks, but in fact, it was partners who saved Starbucks. Without a solid foundation, there will be no good service, no good consumer experience, and will not attract more consumers.

In this outbreak, Howard reshaped the corporate culture in the same way, but this time focused more on store partners. Because of the epidemic, the physiology and psychology of many partners have been affected to varying degrees. Coupled with the economic damage, many partners have a lot of dissatisfaction with salaries, benefits and work intensity, so they have begun a trade union action opposite to the company, which also affects the experience of follow-up customers to the store.

As a result, Howard also said in the latest open letter on the official website that the company has recently learned about partners' ideas, operations and stories through meetings, surveys, open forums and management, and has reformulated its "relationship with partners" plan to provide partners with opportunities for development and progress; to provide more welfare policies; to work together to create a safe and enthusiastic work environment; and to share rights, responsibilities and success.

The purpose of the plan is to enhance the sense of belonging of partners while ensuring the safety of stores, and to re-create a connected, popular and safe dining environment.

At present, Starbucks is in trouble because of the rapid expansion of the brand in recent years, ignoring the feelings and experiences of many partners and thus leaving behind a lot of problems, which have not been solved in time.

Therefore, the first thing after Howard's return is to get rid of some of the "evil roots", and then re-stabilize the roots by promising to protect the physical and mental health of partners and the safety of the working environment + raising salaries and benefits. Then, according to the development trend of the general environment, we will work together with our partners to provide customers with more suitable services and dining experience.

Every transformation of Starbucks, there will be a transition period, nothing can succeed in one step, adjustment is bound to have disadvantages and advantages.

Photo: Starbucks website

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