Starbucks Keeps It Brewing in Asia

Starbucks is looking at new overseas market and coffee shops around the world. However, many people find this expansion affecting their private life or interrupting them in an unwanted and annoying way and are scared of the Americanization of their culture. To prove these negative feelings towards their brand and in order for foreign customers to find more appealing, Starbucks needs to tell a story. The most attractive one being the story of the coffee bean, grown on an exotic island. Starbucks is taking on local aspects, like specific flavours and cultural habits, for example green tea Frappuccino in Asia, in order to distance themselves more from their American roots. In order to get rid of the negative image that American chains put local stores out of business, Starbucks is recruiting locals (Eline Van Lombeek, 2010,

Founded in 1985, Starbucks is one of the largest coffeehouse companies in the world with over 16,000 stores in 50 countries. This report evaluates major internal and external factors affecting Starbucks using various analytical techniques. Based on the Starbucks brand in UK, it identifies suitable marketing strategies for Starbucks to expand its business in the UK market within the next two years. In line with the chosen marketing strategies, recommendations for the marketing mix are discussed.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

And finally, on February 1st, Starbucks Coffee Company opened its first store in Vietnam at the New World Hotel in downtown Ho Chi Minh City. The company has studied Vietnamese market since 1991 and made VERY, VERY careful steps when entering this market. The only partner licensed to operate Starbucks stores in Vietnam is Coffee Concepts Vietnam, a subsidiary of Hong Kong Maxim’s Group. The signing with Coffee Concepts Vietnam will maximize the growth potential of Starbucks in Vietnam as the partner has experience in managing 130 stores in Hong Kong and China. Starbucks’ strategy is to bring unique coffee experience to customers at its stores. Besides, Starbucks will boost the localization of stores in its business strategy in Vietnam to make Starbucks stores the third destination for local people, following their home and office. “Starbucks provides much more than just the best cup of coffee, we will offer a place where people come together, connect with family and friends and celebrate the local Vietnamese coffee culture and heritage”, said Jinlong Wang, President of Starbucks Asia Pacific. Now let us begin our SWOT analysis. One of my team members, Lan Huong, is going to show you some strengths of Starbucks Coffee Company.

The final project is going to be about the market entry of Starbucks into China. This project will focus on gauging the success of the company's market entry strategy thus far. Starbucks has announced in a press release that it believes China will be its #2 market by 2014, and the company has been one of the most successful American companies in that market (Starbucks, 2012). The company entered the Chinese market in 1999 with a store in Beijing. This followed the acquisition of greater knowledge about Chinese business culture through outlets in Taiwan. The company initially used a licensing agreement to enter the Chinese market (Starbucks, 2010).

Coffee which is a simple product has been turned it into a commodity in our lifestyle, it no longer just a drink but an event in itself, instead of just buying a cup of coffee companies have led us to believe that we are buying an experience. Companies have discovered how to sell out big money for a simple product; consumers are willing to buy $5 and up for a cup of coffee, not just because of the taste but because buying that cup makes consumers feel like part of something. According to Kate Macdonald a coffee chain such as Starbucks gets 14 million customers a day or more. It also has become one more of the global and cultural icons such as Coca-Cola and McDonalds. It very likely to find a Starbucks coffee shop in any major city around the globe; this make sound good for any coffee producers, but the reality is that coffee trade is full with ironies. As consumers steps up to the register and order their cup of coffee, it is more likely that they will not think of the more than “25 million people around the world (that) base their livelihoods on its production (Watson and Achinelli

However, because Starbucks expands rapidly in the global market in order to pursue the financial numbers, it causes a reduction of the brand value, which is one of the major problems that Starbucks Corporation encounters in the process of expanding Chinese market. Furthermore, in China, there is a large gap between economic strength of the large cities and small cities. Because the price of Starbucks coffee is too high, therefore it is hard for Starbucks’s market development in the medium and small cities in China. The last major

As a well-established coffee retailer and over 35 years of success, Starbucks is at the maturity stage in the product life cycle. It is in this stage that Starbucks needs to shift gears and focus on marketing program modifications by increasing the number of customers and customer visits (Kotler, 2009, pg. 185). While improving service will attract first-time customers and retain current ones, further marketing modifications will need to be made if it wants to continue to grow. More advertising, distribution, sales promotions, and personal selling are a few of the ways to modify the marketing program.

Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty

Starbucks has been very successful in Turkey despite the economic problems the company was experiencing in the U.S. during 2007-2008. The fact that Starbucks’ Turkey C.E.O. Can Ikinci is Turkish and that he had studied in the U.S. and worked in London played an important role in the company’s success in this country. Mr. Ikinci was familiar with the culture, the market environment and with the skills he acquired overseas, he was able to build a strategy based on the adaptation of the product to local consumers as it included Turkish coffee. This demonstrates how the company did their research as coffee is an important component of the Turkish culture. The marketing strategy shows that Starbucks was thinking about the local patrons and they also brought the U.S. standard products to Turkey, which are some of the growth drivers, just like Gloria Jeans did with their coffee products.

Initial entry strategies. Starbucks articulated an entry strategy that was designed to be as inoffensive to the Chinese culture as possible. Instead of taking the conventional approach with advertising and promotions which could have been seen by potential Chinese consumers as attacking their culture of drinking tea they positioned stores in high-traffic and high visibility locations. Moreover, Starbucks very deliberately began to bridge the gap between the tea drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local tea-based ingredients.

The consumption of coffee was not a new concept at this time, it’s use and drinking rituals had been around for centuries. However it was typically consumed in small independent coffee houses and the rituals associated with it were by no means established in America as it was in other parts of the world. What made Starbucks unique in America was its point of differentiation. At this time here wasn’t an established coffee consumer market in America it allowed Starbucks to present something to consumers that they didn’t yet know they needed. They also proved their relevance in the market by successfully capitalising on the characteristics of the time, creating a brand that echoed the values and behaviours of the modern America market. In comparison to other world markets America was the forerunner in the creation of a “consumption-based economy” (Ritzer, 2004). By the 1990s it was heavily saturated, based on wants rather than needs, the purchasing of luxury, convenience and the manufacturing of lifestyle and image, all of which were contributing factors in the rise of

Abstract: Starbucks has become a very popular and high quality coffee chain store in Mainland China, since it come from the United States in 1999. The author based on the visual, aesthetic and PESTLE theory, discussing the successful importation and operation of the Starbucks company.

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.

Starbucks’ retail entry model in the United States does not have the same strategy as their international model. In the states Starbucks holds great control as a corporation, but in international territory, country partnerships, cultural, government laws and politics play a very important role in Starbucks’ entry strategy. Starbucks has set it sights globally since the coffee market has come close to saturation in the U.S. which will give them the opportunity to continue to expand without fierce competition. Starbucks has looked to countries like India and other emerging markets with great growth potential to set down new roots. Starbucks recognizes India as a great choice to expand business internationally but also recognizes the complexity in the same market after several attempts to enter without success.