Do you know Starbucks is not only a Coffee brand, it's Bank?

 

(Credit - https://pixabay.com/)

One day my friend asked, "this weekend we will visit Starbucks and have a coffee there."

I replied, "No it's too much expensive.” He said, “I will provide you a discount over there.”

I asked, "How?" He replied, "I have already added money to my Starbucks wallet and will pay through their App rather than cash."

I said, "Ohh! It's an awesome idea to drink Starbucks coffee at discount.” He replied, "Yes, it's an awesome idea as well as an interesting fact.”

I said, "Which fact are you talking about?" He replied, "Do you know Starbucks' actual revenue is not from coffee, Starbucks core product is also not coffee."

 I was surprised, "What!!! As per my knowledge Starbucks is famous for coffee." He replied, "Yes it is famous for coffee but it is just a high-lighting pillar of their business model, not a core of it."

I asked, "I am curious to know about it." He said, "Okay, firstly tell me have you observed they are providing discounts on online money, not offline? Whenever you will pay in Starbucks through their application, you will get a discount during online payment. Let's take an example of you, you have installed the Starbucks application and added your real money to your wallet. You cannot withdraw money from the account. They will use this money to invest in the stock market, and work like banks provide loans through this money. Actual revenue generation takes place through this money.”

 I asked, "Ohh!, great means their actual revenue generation is through this bank money, right? " Earlier are you telling about the core product, what it is?" He replied, "In every Business, there are 3 types of products like tangible products, core products, and augmented products. In starting a business their coffee and food products come under tangible products, their core product is outlets atmosphere, decoration, and free Wi-Fi. In every business, core products should carry more things than tangible. The augmented product is tangible you cannot touch just feel it, their services, and customer interaction comes under it."

I seriously, "Interesting, now I get to know How did Starbucks become famous." He replied, "One more important thing is they invest zero money on marketing. They just provide value addition, and automatically customers will do marketing. Their staff will write your name on the coffee mug but intentionally they do mistakes. Then you will interact with their staff for name correction and your connection with the brand gets built. You will post a coffee mug photo on social media. In this way, customer satisfaction key will do their brand marketing.”

I surprisingly, "What smart strategies they are implementing! Now I am excited to visit Starbucks for knowing all these things practically. "

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