They position themselves by appealing to adults of all ages. What were their brand values? Answer: Starbucks is a mass brand attempting to command a premium price for an experience. Starbucks adopters who valued the club-like atmosphere of relaxing over a quality cup of coffee found themselves in a minority. To grow, Starbucks increasingly appealed to grab and go customers for whom service meant speed of order delivery rather than recognition by and conversation with a barista.
Such as financial solvency, knowledge of local market conditions, prior retail experience, and creative ability. • Starbucks also used licensing strategy dramatically used in countries like China Indonesia, Malaysia, Newland, Philippines, Singapore and Middle East. • The critical decision in terms of market entry strategy was to go to Asian market first because of the developed of the coffee market in Europe was very strong and on the other hand Asian coffee market was under
On the other hand, Starbucks offers exotic and different types of coffees for a higher price. At the same time, both Starbucks and Tim Hortons
Qualitative and high fashion items for a low price. Weakness – it’s a small business unit, need to do future competition similar company. * Starbucks Sector – secondary Owner ship- Public Limited Company Business activity – it sells the hot and cold drink and breakfast Competitors – this is a local shop in London. But competitors of this are Costa because it sells the same products as starbucks. Success – * Finding innovative solutions - They sell the healthy breakfasts and also have different type of coffees and any more drinks * Meeting customer needs – they have loyalty card that customer can use it * Identifying new needs - They look for what customers want in their website.
According to "Positioning and Differentiation Strategies of Marketing" (1999-2012), “Michael Porter of the Harvard Business School, differentiation is one of the generic strategies that a firm can use to gain a competitive advantage in the marketplace”. As Starbucks differentiation involves offering something that our direct competitor does not have, and that is Starbuck scented candle in decorative or designed cup have the customer a chance to keep the coffee cup for his or her morning coffee. The positioning of this product is the idea to improved not only in sales but to give back to Starbucks loyal customers a little bit of the scent in a candle, and our special designed coffee mug or cup (Starbuck Logo), in which it will look good as a display in your kitchen, or as part of the in-house decoration, and even better to share as a gift to a co-workers, or decorative as well in the office.
Case 1.1 Starbucks – Going global fast The key aspect of Starbucks case is entering new markets. As said in the case, they’ve met few challenges – some positive and some negative – which included mostly legal requirements, local and global competition presence, coffee prices on potential markets as well as the brand perception and cultural differences. What is important in the case is the aspect of glocalization – think global and act local. Starbucks expansion was in fact the answer for local market oversaturation and growth strategy. Mostly, entering new market Starbucks counted for its reputation and in fact its marketing-mix was only slightly adjusted to specific cultural aspect of new markets.
How did Starbucks reduce the ‘distance’ vis-á-vis host countries? Starbucks has used various tactics to reduce its distance from foreign markets. To reduce cultural distance, Starbucks has conducted extensive research in each country, using focus groups and quantitative analysis, to evaluate local cultural sensitivities and preferences. To reduce economic distance, Starbucks has expanded primarily into developed countries. In developing countries, it has focused on major cities first and only later expanded into smaller cities when confident that the smaller cities had consumers with the necessary disposable income.
In some locations, Starbucks needs to change their usual products in order to fit the new customers’ tastes and lifestyles. For example, in Japan, the new product comes into variations which are espresso and latte that are less sweet than in the US and comes up as a can to fit the rush-hour lifestyles. In the meantime, there are also some situations taken place to be the uncontrollable elements to Starbucks in entering global market. The economics, competitive, cultural and political issues in the different countries can occur at any time. Therefore, these are the factors which occur when Starbucks trying to be a part of the
Starbucks gave US the “Café life” which didn’t existed before. Starbucks has changed our tastes, our lifestyles and penetrated in us by becoming part of the popular culture. Starbucks covers a broad base of customers from urban professionals to clerical assistances; Starbucks has found a way to appeal everyone despite of its high prices. Starbucks broad “strategy” is to grow into a global empire and any new change is done with great care and planning. Growth strategies are made to exploit customer connection.
The Future of the Starbucks Starbucks is a familiar brand to us, especially to the coffee fans. Starbucks tells us “to live like tasting coffee”. Are there any advantages and disadvantages in the business operation? Can it keep advanced in the fierce competition nowadays? In order to compound the problems, we will utilize the VRIO framework to do analysis.