The Effect of the Current External Environment on the Marketing Management of a Company or an Organization Within the Hospitality or Tourism or Leisure Industry

According to a survey conducted in Shanghai shows that 24% of those aged 41-50 years old and between 20 -30 years old there is 18% people often go to sip a coffee. Therefore, The Coffee Club target market will be people working in offices and university students and faculty.

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

Starbuck 's has become a staple of American culture and for the most part, if you are in your 20 's, you have grown up with it and this has become what you expect coffee to be. Who can blame you, it is everywhere, so "wake up and smell the coffee"! I plan to tell you about the strategies that this giant uses, that have taken it from humble beginnings to a worldwide phenomenon. I also intend to explain how Starbucks is taking China by storm, mainly because marketer / entrepreneur Howard Schultz 's vision and mission statement is shared by everyone in the company!An excerpt from the London Financial Times published in February 2006 states the following in regards to Starbucks entering the Chinese market; "Mr Schultz said the company was

Starbucks was conscious of China’s economic and financial challenges and the fact that the average Chinese earns $500 a month and drinks just three cups of coffee a year was a major challenge to overcome. How many $4 cups of coffee do they actually want or can they afford? The Chinese are among the toughest lot in the world to convince on the price-value relationship. They are very cost-conscious and look for value in whatever they pay for.

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

Different local reactions of new coming Starbucks from Shanghai and Bloomington reveal contradicting cultural understanding.

Atmosphere: Starbucks’ new design gave people a location to not only go and purchase refreshments but spend time to relax.

Making their chain stores very traditional and fitting with the local culture. Surprisingly Starbucks charges as much as 50% more for some of its products in China than in the U.S., the U.K. and India, but yet it is still a huge success, this is because the business catered well for the needs and adapted. Carrying a Starbucks cup is seen as a status symbol, a way to demonstrate sophistication and the capability to afford a personal luxury for the up-and-coming middle class in China. This links into the brand recognition that Starbucks has created for itself and shows how they carefully targeted their products at the new middle class, it is estimated that it's more than 300 million, already larger than the entire population of the United States. This middle class is about 25% of the total Chinese population and as Starbucks has such a recognisable brand people are more liable to visit the store.

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

rable general economic conditions in the markets in which they operate that adversely affect consumer spending;

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

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.

Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Although the Chinese dislike drinking in public, the high awareness of the brand and the Chinese market being so brand-driven outweighs this habit. The Chinese consumers perceived the high prices as conveying quality and sophistication. Retailers keep this in mind as they charge more for public consumption, as customers go to Starbucks if not for the coffee, but to present themselves as modern Chinese in a public setting. China 's tightly regulated business environment still throws up lots of hurdles for Starbucks. Its fragmented government and currency-conversion limits make banking difficult. "If I want to move money out of China, it 's a hellish process," says Charles Jemley, Starbucks vice president of finance in China. Book bags and coffee mugs barely made it out of customs in time for Starbucks to pass them out at a rural teacher-training session