Market Analysis: Starbucks’s Brand Strategy in China
Introduction
The company’s brand is a name, term, symbol, design or combination that identified a product and distinguishes it from other products (Ferrell et al., 2014). The brand is a significant element to operate business marketing because it could add extra value to the product with keeps the high-quality level by meeting the consumers’ emotional demands. An American coffee brand-Starbucks Corporation expanded their products entered in the international Chinese market since from1999 start the first store in Beijing. Starbucks is already the most recognized worldwide brand in the coffee business before it appeared in the China. Even though, the executive of Starbucks Jeffrey S. Harrison
…show more content…
The paper use Starbuck as a sample to clearly explain that brand strategy is a key marketing activity that helps company to develop target market and business. Like other researchers said there are many reasons to make the Starbucks successfully built their market in China, the first and the most reason is that Starbucks effectively using brand image strategy easily make markets in China. If the Starbucks 's want to continue success in China which is an area totally different from its home culture and lifestyle, what is Starbucks’s advantages or what aspects it need to improved to handle those challenges in the future. The purpose of paper is to analyze Starbucks engagements brand by interplaying with the local culture, use its global brand fame, glocal in the goods and relied on new product and keep good relationship with customer satisfaction in order to cueing more customer ( Biederman, 2005; Maguire & Hu, 2013; Plog, 2005 …show more content…
Chinese market is different the other oversea markets like Japan and European; it is the amount of consumption of coffee is hugely beyond the China. However, the author also have the same idea with other several sources that Starbucks as a foreign brand develop in China not only face many challenges since Chinese predilection for tea and China ruling regime, but also exist many operate advantages in China, like coffee is non-existent product in china before Starbucks appeared; according the Biederman (2005) said Virgin has more potential than a brand becoming a new entrant in an existing one in the markets. Therefore, the Starbucks successful in China not only because the Starbucks make many efforts, but the China also have advantages not available in other countries such as Chinese market lacked a store familiarity with the coffee and were also support to dairy product like dessert, Sandwich, cake and drinking. Similarly, Lemus, Feigenblatt, Orta and Rivero (2015) study the innovative creativity of Starbucks brand. Starbucks through positive brand name build customer loyalty and keep good relationship with
Over the past few decades, Starbucks has become a household name. Headquartered in Seattle, Washington, Starbucks is one of most lucrative coffee chains in the world. As of 2015, the company has chains in 50 countries with more than 22,500 stores in operation (Starbucks Corporation, 2017). The 70 stores located in Australia are focal point stores, which focus/tailor to improving the marketing strategy, customer service, and testing of new products to differentiate the company from the competition. Coffee is their primary business, so obtaining high-quality coffee beans from the nations that produce this product is important. Not only does the company sell hot coffee beverages, but they also offer a variety of cold drinks. The menu consists
Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well.
Starbucks is a coffee company that began in 1971 in Seattle, Washington. They own more than 24,000 retail stores in 70 countries (“Starbucks Company”). They offer an array of products from coffee to handcrafted beverages to fresh food. Starbucks believes in being a responsible company while participating in ethical sourcing and environmental stewardship. The company is an active user with sharing information on social media platforms like Instagram, Twitter, Facebook. They are on Twitter with 11.8 million followers and also on Instagram with 12.5 million followers. Starbucks is doing exceptional with their marketing strategies when compared to the followers of other known coffee companies. For example, Dunkin’ Donuts has 57.8K followers on
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
This strategic capitalises on weaknesses since will decrease the cost of coffee beans/beverages but also Starbucks operating cost which they regularly ship across the world to various stores. Starbucks can capitalise on this weakness to improve their brand options. It adds value in the inbound logistics activities, operations and procurements. Starbucks should consider this option since it will decrease their operating cost and therefore will reduce the prices on their menu. The attractiveness is the exact same as mentioned in option 1.
The key to its success lies not only in the quality of its products but also the ability to differentiate itself from the competition. With Starbucks, it has always been about quality. The company manages stringent quality control measures for sourcing the finest coffee beans, roasting processes as well as customer service and ancillary products. Furthermore, differentiation is key to market control and Starbucks is unquestioningly the most differentiated specialized coffee brands in the world. From the design of its coffee shops to the music played to the types of products offered, everything has a touch of uniqueness.
This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years.
Starbucks has a wide variety of products that they offer to their consumers. They not only offer coffee and baked goods but they also offer teas and various storage containers. Cost of good sold as illustrated above show a 1.1 percent increase from 2014 to 2015. The increase comes from strong sale numbers and company sales measures that get each supply chain motivate to push more product. Getting the team moral up ensures that all employees will want to get involved in the overall goal that the company is trying to reach. It is important that they do have these high numbers each progressing year so that they can stay on top of their market and be a strong competitor. Starbucks is always bringing something new to that table which is how the
Kluyver (2010) mentions that Starbucks maintains sole decisions making power over “brand, product line advertising and corporate communication”. Although though the choice o...
A company’s brand is one of its most valuable assets (Green and Smith 2002). Brands owners invest millions of dollars every year in advertising and promotion to raise awareness and create demand for their brands.
Starbucks Company was established in 1971 with their first store in Western Avenue from that same year to 1976. They started as retailers of ground coffee tea and spices with a single in Seattle’s historic Pike Place Market. Starbucks is named after the first mate in Herman Melville’s Moby Dick and their logo is inspired by the sea-featuring a twin-tailed siren from Greek mythology. Starbucks had always wanted to inspire the human spirit. They believe in serving the best coffee by growing the coffee under quality standards. Starbucks believes rendering good services to customers is very significant to the success of the company. From just a narrow storefront, Starbucks now has more than 20,000 stores in over 60 countries and they offer some of the world’s finest fresh-roasted whole bean coffees. Their coffee houses have become a beacon for coffee lovers everywhere. Starbucks believe that they can elevate their customers, partners, suppliers and neighbours to create positive change. They call their corporate offices “a support centre” for some reasons. They try to make everything they do there to support their retail store partners and make an impact on the communities they serve. They have a research and development team of over 200 people which are responsible for the science behind their great products. They are the innovators of delicious beverages and brewing equipments. They drive the innovations, conduct the research and test products. They have a public affairs, communications and community team of over 50 people who promotes and protects the company’s reputation all around the world. They also have a partner resources team of over 500 people that help their partners all around the world become their very best...
The study of managing change in today’s dynamic business environments greatly benefits from an insightful examination of leaders and organizations that have successfully engaged in strategic renewal. Perhaps more than any other recent change effort, the extraordinary revitalization of Starbucks Coffee Company represents a compelling example of successful change. Confronted by the cumulative impact of multiple internal and external performance pressures, Starbucks, led by the return of CEO Howard Schultz in 2008, engaged in a comprehensive well-formulated process for change that brought the company back from the brink of potentially catastrophic failure (Schultz, 2011). In response to requirements for the ORG521 portfolio project, this paper proposes an in-depth analysis of the change process that Starbucks followed in the company’s quest for strategic renewal. A summary description of the Starbucks Coffee Company follows the discussion.
With clear core values towards providing quality coffee, the best service, and atmosphere, Starbucks has enjoyed great success since it was founded 30 years ago. The company has being doing very well for last 11 years with 5% or more store sales increase, even with the rest economy still reeling from the post-9/11 recession. However recent research, conducted to Starbucks, have showed some concerns regarding company’s problem meeting customers’ expectations.
I would give Howard Schultz a grade of A for the job he has done as the CEO of Starbucks. He has successfully performed all the 5 tasks of strategic management discussed in Chapter 2.