A New Marketing Strategy for Starbucks in China

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A NEW MARKETING STRATEGY FOR STARBUCKS IN CHINA Marketing project for iMBA, Business School of Renmin University of China EXECUTIVE SUMMARY The first Starbucks opened in 1971 when the company was a single store in Seattle’s historic Pike Place Market. From just a narrow storefront, Starbucks offered some of the world’s finest fresh-roasted whole bean coffees. Today, with more than 15,000 stores in 50 countries, Starbucks is the premier roaster and retailer of specialty coffee in the world. Starbucks objective is to maintain Starbucks standing as one of the most recognized and respected brands in the world. If Starbucks wants to maintain its world leadership position and image has to understand a strategic market such the one in China, and its consumers. We hereby believe that focusing on the emerging middle-class, and find new opportunities in segments such as business people and web 2.0 generation would be a winning strategy. Moreover we suggest for the next 12 months to invest more in technology, for example building a stronger relationship with customers of Apple products via an app that will place orders or implement the T-Starbucks as in South Korea. After considering the environment, we also recommend a strong social media campaign, expand the product range, give more value to the customer’s experience and consider the possibility to rebrand some locations. Starbucks CEO Howard Schultz admitted that China is a tricky market to navigate. "The thing I am most interested in when I go to China is whether or not local Chinese are buying Starbucks coffee and sitting in our stores," said Schultz. Starbucks entered the Greater China market in 1998 with the opening of its first store in Taipei, Taiwan,and a store located in mainland China was opened in Beijing in January 1999 through a licensing agreement with Mei Da Coffee Co. Ltd. All of the coffee will be

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