Building
Relationships
There
is a reason why Starbucks is a global leader. Besides proper quality control
measures put in place to rival competitors, the firm has an unwavering
commitment to communities in the regions supplying coffee, cocoa, tea and other
agricultural products. This is the one of the secrets making the company
survive strong competition and tough economic times. The firm understands that
management of price-quality relationship and use of relationship marketing,
though costly, boosts business performance in the long run.
Starbucks invests heavily in beneficial programs designed
to strengthen social and economic development in local communities. This is
done with due consideration of business impact on the environment. The organization collaborates with
like-minded non-governmental organizations (NGOs) with experience in working
with coffee farming communities.
In
addition to social development investments and collaborative relationships with
NGOs, the firm offers loans to coffee growing communities to help them boost
the quality of farm produce.
Furthermore, Starbucks establishes Coffee Farmer Support Centers to
provide local and regional farmers with expertise and useful resources in
lowering the production cost, improvement of coffee quality and pest and
disease reduction. Eventually, farmers increase annual premium coffee yield.
Starbucks
has invested an upwards $ 70 million in collaborative coffee farmer programs
such as C.A. F.E practices forest carbon projects, farmer loans and
establishment of farmer support centers. While the integrated programs improve
livelihoods of farmers, the organization is assured of a long-term supply of
best coffee quality.
Starbucks
coffee farming programs are designed for long-term purposes. This is a
relationship marketing strategy that fosters a long-term relationship with
farmers hence their loyalty. The strategy has been remarkably successful in
states such as Ethiopia , Mexico , and India
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