Comments on: Starbucks’ 15th Ave has a shot by orchestrating a new experience for new customer http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/ insights from author linda ireland Thu, 02 Sep 2010 02:44:45 -0400 http://wordpress.org/?v=2.8.1 hourly 1 By: Melody http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/comment-page-1/#comment-163 Melody Fri, 11 Sep 2009 05:17:24 +0000 http://www.ceforprofit.com/?p=321#comment-163 I've been to the 15th Avenue Coffee and Tea many times. It's somewhat reminiscent of the Starbucks of the 90s given the manual espresso machine, heavy emphasis on coffee education, and small batch unique coffee offerings. That store needs the local community around it to love it. I think it is steadily growing in its following, and it does satisfy a kind of customer who demands a little more from their Starbucks - of course without it being a Starbucks. I still sometimes have my doubts about it's location. It's within walking distance of numerous other little coffeehouses so it's placed itself in heavy competition for the coffee dollar. I almost think that the First & Pike store location would have been a great site for a 15th Avenue Coffee and Tea. Of course, no one asked me! I hope for the best for 15th Avenue Coffee and Tea. I’ve been to the 15th Avenue Coffee and Tea many times. It’s somewhat reminiscent of the Starbucks of the 90s given the manual espresso machine, heavy emphasis on coffee education, and small batch unique coffee offerings.

That store needs the local community around it to love it. I think it is steadily growing in its following, and it does satisfy a kind of customer who demands a little more from their Starbucks – of course without it being a Starbucks.

I still sometimes have my doubts about it’s location. It’s within walking distance of numerous other little coffeehouses so it’s placed itself in heavy competition for the coffee dollar. I almost think that the First & Pike store location would have been a great site for a 15th Avenue Coffee and Tea. Of course, no one asked me!

I hope for the best for 15th Avenue Coffee and Tea.

]]> By: Matches Malone http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/comment-page-1/#comment-146 Matches Malone Fri, 04 Sep 2009 12:21:15 +0000 http://www.ceforprofit.com/?p=321#comment-146 I don't know if this idea will work, however, the various Starbuck's in my area, most within walking distance, already serve the need to hangout, as well as the drop in and leave crowd. I think it might dilute the brand, actually.... I don’t know if this idea will work, however, the various Starbuck’s in my area, most within walking distance, already serve the need to hangout, as well as the drop in and leave crowd. I think it might dilute the brand, actually….

]]> By: Gratitude, Link Love and Cartwheels Friday | Words For Hire http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/comment-page-1/#comment-144 Gratitude, Link Love and Cartwheels Friday | Words For Hire Fri, 04 Sep 2009 10:08:59 +0000 http://www.ceforprofit.com/?p=321#comment-144 [...] Starbucks 15th Avenue. The rise and fall and change of  Starbucks could fill several business books. The brand continues to make curious steps as it strives to rebuild in a tumultuous economy. This post examines their latest brand adventures. Hit or miss? I’d love to hear your take. [...] [...] Starbucks 15th Avenue. The rise and fall and change of  Starbucks could fill several business books. The brand continues to make curious steps as it strives to rebuild in a tumultuous economy. This post examines their latest brand adventures. Hit or miss? I’d love to hear your take. [...]

]]> By: Jeff Monday http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/comment-page-1/#comment-143 Jeff Monday Fri, 04 Sep 2009 08:05:58 +0000 http://www.ceforprofit.com/?p=321#comment-143 This is a great example of proactive disruptive innovation: http://bit.ly/zjPGs I have to agree with you that the 15th ave. store is a phenomenal proactive move by Starbucks to create a separate business unit to move up market. This allows them to protect their current market against disruptive innovation while moving into the next tier. In the business of coffee Starbucks was the disruptive innovator when it entered the market. It innovated on the business model in such a way that it turned non-consumers into consumers by providing convenient, great tasting coffee with great customer service. Since it's inception it has become the incumbent. The things that it used to create the disruptive innovation (convenience, great tasting coffee, and great customer service) have become abundant to the point of being a commodity. One of my favorite rules of economics is that abundances create scarcity in other areas. Scarcity (which in this case was largely created by Starbucks success) is the ambiance and social capital that comes with purchasing coffee from a neighborhood coffee shop. What is going to distinguish a Toyota coffee from a Lexus coffee is not the coffee, (both cars go from point A to B, are easy to find and purchase, etc.) it is the experience. 15th ave.'s main goal is to provide that experience and it is an excellent example of proactive disruptive innovation by the incumbent. This is a great example of proactive disruptive innovation: http://bit.ly/zjPGs

I have to agree with you that the 15th ave. store is a phenomenal proactive move by Starbucks to create a separate business unit to move up market. This allows them to protect their current market against disruptive innovation while moving into the next tier.

In the business of coffee Starbucks was the disruptive innovator when it entered the market. It innovated on the business model in such a way that it turned non-consumers into consumers by providing convenient, great tasting coffee with great customer service.

Since it’s inception it has become the incumbent. The things that it used to create the disruptive innovation (convenience, great tasting coffee, and great customer service) have become abundant to the point of being a commodity. One of my favorite rules of economics is that abundances create scarcity in other areas.

Scarcity (which in this case was largely created by Starbucks success) is the ambiance and social capital that comes with purchasing coffee from a neighborhood coffee shop. What is going to distinguish a Toyota coffee from a Lexus coffee is not the coffee, (both cars go from point A to B, are easy to find and purchase, etc.) it is the experience.

15th ave.’s main goal is to provide that experience and it is an excellent example of proactive disruptive innovation by the incumbent.

]]> By: Linda http://www.ceforprofit.com/2009/09/starbucks-15th-ave-has-a-shot-by-orchestrating-a-new-experience-for-new-customer/comment-page-1/#comment-142 Linda Thu, 03 Sep 2009 20:33:10 +0000 http://www.ceforprofit.com/?p=321#comment-142 Anne: I'm not sure Starbucks is trying to "re-invent' themselves - more a second, up-segment experience. And I suspect the tough market that contributed to the closing of stores was also a trigger to find an additional niche. Sounds like both you and Paula would agree this is a new customer experience designed to solve a different need for a different target customer. AND...I appreciate your healthy skepticism about their success. Stay tuned, yes?! Anne: I’m not sure Starbucks is trying to “re-invent’ themselves – more a second, up-segment experience. And I suspect the tough market that contributed to the closing of stores was also a trigger to find an additional niche.

Sounds like both you and Paula would agree this is a new customer experience designed to solve a different need for a different target customer. AND…I appreciate your healthy skepticism about their success. Stay tuned, yes?!

]]>