Starbucks, it turns out, is not synonymous with seamless, stress-free success. Embracing a global strategy is an integral part of the coffee retailer’s much-talked about turnaround strategy, but after ten years of effort, things still aren’t great in Europe. Particularly not in France, according to this New York Times story.
Starbucks has embarked on a multimillion dollar campaign to win over the European marketplace. Their efforts are pretty straightforward, and from our perspective, logical: everything from the the coffee recipe to the physical plant is being examined and altered to bring it more in alignment with the tastes and preferences of the local customer.
The changes may help—the strategy, after all, bears a close resemblance to what works for other American chain eateries that have gone global. But it raises one unavoidable question: How would things look different for Starbucks if they had done the groundwork to enter the European marketplace more effectively ahead of time? We’re not privy, of course, to the inner workings of their leadership team, but it seems a fair guess that not having to spend millions of dollars is always better for your financial position than being forced to spend millions in order to remain even vaguely competitive.
In other words, there’s power in predictability. One of the key concepts of Brand Modeling is that developing a deep, comprehensive, humanistic understanding of your company’s best customers allows you to predict, with a high degree of certainty, how those customers will respond to your offerings. This allows you to be selective and efficient in your organizational decision making process.
For example, had Starbucks spent the time and energy to fully understand their best customers in France, they likely would have discovered their expectation—framed by the cultural mythos that permeates French life—that one does not walk down the sidewalk with a paper coffee cup in hand. Coffee is meant to be enjoyed in the cafe, at a leisurely pace. Armed with that knowledge, it would have been easier to see that the French Starbucks should include adequate seating space and avoid investing resources in takeaway coffee.
In Britain, incidentally, the situation is reversed. There, takeaway coffee enjoys popularity favorably comparable to the American experience. You can see where this is valuable information to have prior to breaking ground and building shops.
Starbucks isn’t alone in this situation. Going global has stymied some brands. Burger King was a flop in Europe, whereas McDonald’s, who came very early to the wisdom of listening to local markets comprehensively and in detail, thrives.
It all comes down to customer knowledge. We are all competing in the environment full of empowered consumers. They know they have choices. The French consumer is not suffering from a lack of cafes to visit if Starbucks fails to please them. Dominant organizations are, and continue to be, those brands that are truly willing to step up and put their customers first.