Jim Koch and his book “Quench Your Own Thirst”
This is a response to Victor Chen’s post to:
http://www.cbc.ca/news/business/sam-adams-jim-kock-craft-beer-1.3778969
https://blogs.ubc.ca/victorchen/
Jim Koch, CEO of Samuel Adams brewery company, grew his business from only his family’s beer recipe dating back to the 1860s. Koch’s father gave him one piece of advice: to make a good beer. Inspired by his father’s words, Koch built a strong foundation through the quality of his beer. Since the 1980s, he has constantly been improving his products. He would meet with his customers to share a drink, receive feedback, and connect on a personal level. Koch believes that “It’s about how what you’re offering will help them accomplish their, [the consumer’s], objectives”. By satisfying the customer’s need it builds a connection between them and the company, leading to more sales, and finally leading to the creation of a company. Over 32 years, Koch focused on his product’s value stemming from consumer wants, he has grown his small beer brewery into a company worth $2.2 billion USD.
While reading about Jim Koch’s successful Beer Brewing company, Victor Chen noticed similarities between Koch’s and Michael Dell’s strategy to run a successful company. Victor mentioned Koch also followed value propositions like Dell and many companies at that time. However, Koch as well as Dell decided to go the extra mile and directly address the customers wants and the value the customers were receiving from their products. I agree with Victor’s observation of Koch and Dell’s high focus on value proposition and customer relations. Both would outsource to other producers to manufacture their products in order to focus harder on developing a strong producer-consumer relationship. Koch promotes a “Eff-You” rule where anyone in the company can stop a conversation to speak up about their opinion; with the rule applied to Koch himself as well.
I believe Koch’s business model he laid down as a foundation is extremely powerful and set itself up for continuous success and growth. I agree that the quality and taste of the beer should be prioritized because the customer drinks the beer for how well it tasted, not for how well it was advertised. A satisfied customer can spark the word of mouth cycle to bring in more customers. With brand loyalty, customers will have repeat purchases and will bring in potential customers, it gives the company more exposure and space to grow. The theory that a business should cater its products and services to what the consumer wants, is how many companies, like Samuel Adams, grow to such a grand scale.
Word Count: 406
Articles:
http://www.notablebiographies.com/newsmakers2/2004-Di-Ko/Koch-Jim.html
Picture:
http://images.realclear.com/381656_5_.jpg