MIDLAND , Mich. — Starbucks was the focus of day two of Leadership 2.0, the University of the Aftermarket’s program that aims to develop the leadership skills of mid-level aftermarket professionals. 
The 25 attendees of the Northwood University program heard how, through strategic thinking and planning, Starbucks achieved phenomenal growth and brand recognition. A popular video on YouTube by comedian Lewis Black punctuated the point about the company’s now ubiquitous stores: “There is a Starbucks across the street from a Starbucks! And ladies and gentlemen, THAT is the end of the universe.”
Above: David Boer of Dorman hears how Starbucks is adding $1 coffee to the company’s strategy.
Since the recent announcement of store closings, Starbucks has chosen reach a market segment the company has currently ignored — low-priced coffee. In fact, the company is testing $1 coffee, a universe previously ruled by fast-food chains such as McDonald’s. At least one recent taste-test study showed that coffee drinkers preferred McDonald’s new coffee lines to Starbucks, a real shocker to those who consider Starbucks to be premium coffee.
The point to the aftermarket? Even though Starbucks is finding itself in unknown territory — competing head-to-head with a company like McDonald’s — the company still took something that was rather boring, but “necessary” to some — a hot cup of coffee — and transformed it into something desired by the masses. No longer is coffee just hot liquid, but an iced beverage with whipped cream and cinnamon or a Frappuccino.
The same could be said for lettuce. Consumers who could previously buy a 79-cent head of lettuce now can get bagged Italian-blend varieties that are washed three times. The same could be said for a part like a spark plug. In what way could a company package spark plugs and change the perception of those who buy them? While Tuesday’s Leadership 2.0 sessions didn’t seek to answer that question, the resounding message of the day was, yes, it can be done.
Attendees heard more examples of how other companies breathed new life into their respective industries. A Maine company took the centuries-old lobster industry and turned it on its head by allowing consumers to buy the actual lobster pots the creatures are caught in. The company takes the lobsters caught in the consumer’s own lobster pots and ships them to their home. And video cameras enable customers to see what’s actually happening on the boat that’s catching their lobsters.
At left: Leadership 2.0 attendees discuss strategy before making their presentation to the class Tuesday.
Leadership 2.0 concludes on Friday, and continues with a second week during April at Northwood’s West Palm Beach , Fla. , campus.
