What Product Managers Can Learn From Starbucks
Some product managers in technology and B2B products think that the way consumer companies work isn’t applicable to the tech space. In fact, on a recent panel, “Building Products that Win,” at Web Inno, one panelist joked he “runs away” from consumer-type focus groups. But consumer packaged goods (CPG) vendors have really mastered the art of gathering feedback from their customers – via focus groups and other research methods.
Regardless of the” how” (focus groups, surveys, crowdsourcing, etc.), B2B product managers can learn a big “what” from consumer companies. Let’s take Starbucks, for example. Recently, The New York Times did a story on Starbucks former and current CEO, Howard D. Schultz. One aspect of the story, the one relevant to product managers, is what Starbucks has learned about launching a new product.
As the NY Times piece details, in 2008 Starbucks launched a new drink called “Sorbetto.” At the time, Pinkberry, the frozen yogurt chain, was very hot; Starbucks’ Sorbetto was the coffee chain’s attempt at moving into a new market. Starbucks had the product developed in Italy and rolled it out to 300 Starbucks in California.
Starbucks quickly learned that consumers didn’t like the product and Starbucks’ baristas found it too consuming to deal with. As the NY Times piece states, “Sorbetto, we did too quickly,” stated Schultz.
Compare that with how Starbucks’ handled the 2009 launch of Via, an instant coffee product. This time, Starbucks launched the product in Seattle and Chicago as test markets. During this test market period, Starbucks learned that customers given free samples of the instant coffee would put the sample in their purse or laptop bag. Who knows if they ever tasted it.
By the time Starbucks launched Via nationally, it had learned the best way to get customers to try Via was to give them brewed samples to drink. Not a small sample to try at home. In 2010, sales of Via were over $200 million.
Our takeaway: don’t underestimate the value of user feedback before you launch your product. And perhaps, most importantly, think about the best way to get potential users to try your product before you embark on a big launch.
– Janet
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