The Standardization & Adaption of Starbucks Worldwide .pdf
Nom original: The Standardization & Adaption of Starbucks Worldwide.pdf
Ce document au format PDF 1.4 a été généré par , et a été envoyé sur fichier-pdf.fr le 12/01/2016 à 12:59, depuis l'adresse IP 83.157.x.x.
La présente page de téléchargement du fichier a été vue 2406 fois.
Taille du document: 905 Ko (20 pages).
Confidentialité: fichier public
Aperçu du document
The Global Coffee Cup:
The Standardization & Adaption of Starbucks Worldwide
International Marketing Project
By: Alice Carlucci Natalie Li, Kathryn MacGovern, Arsham Naghibi
INTRODUCTION: STARBUCKS, A GLOBAL PHENOMENON
Starbucks is a chief example of how a successful business can become a global model.
But how does a wellknown company, like Starbucks, fascinate hundreds of million people all
around the world?.
Creating and marketing an ethicallyrich blend with superior taste
internationallyrenowned coffee shop has been serving beverages since the foundation of its first
storefront in Seattle, Washington in 1971. In the early 80s, Howard Shultz joined the team as
Director of Retail Operations and Marketing. His business acumen coupled with innovative
creativity can explain why Starbucks is arguably the most ubiquitous name in coffee, worldwide.
Through the years as the company has expanded, Starbucks’ brand umbrella has sheltered
otherwise overlooked niches to build an empire that controls coffee consumerism. In less than 20
years, Starbucks had opened over 50 stores, including a shop in Vancouver, Canada. By 1992
when Starbucks became a publicallytraded company, there were over 160 stores in existence.
With start of the new millenia, Starbucks had spread globally to 20 countries, including China,
Japan, Lebanon, and New Zealand. With shops and products in Starbucks stores and local
grocery stores across the world, their presence in four continents reveals how quickly the brand
grew. Today, the brand’s success is largely due to standardized product development, innovation,
the idea of a brand storyline, which can all be linked with Starbuck’s ingenious marketing
Globally, Starbucks has positioned itself as a shop that sells a superior product and
convenience, which is is why Starbucks prices its coffee higher than competitors. The above
graph shows how much a popular drink, the latte, would cost when the local currency is
translated into American dollars. For many countries, the cost of a Starbucks coffee in the local
currency is worth hours of a minimum wage salary. The average price is $4.00. Because not
everyone can afford the product, Starbucks has become elite a luxurious in some countries.
Another pillar of Starbucks’ success is the convenience factor. By introducing the
prepaid card and the Starbucks app reduces purchasing time, which reduces stress for customers.
Starbucks has also selected premium located storefronts in high traffic areas around the world.
From airports to shopping malls to grocery stores, Starbucks is everywhere. Offering accessible,
takeaway coffee in many markets with only dinein options is how Starbucks earned a global
reputation. While the concept seems simple, this niche has transformed the global coffee
Additionally, Starbucks has competed in other innovative ways. Creating a new language
for coffee, Starbucks has created a global phenomena of standardized sizes that transcend
language barriers. Regardless of the country, Starbucks lists sizes on its menu as “tall,” “grande,”
“venti.” This new language unites customers. Other than language, Starbucks has shown that it
can be original, imaginative and inventive. New coffee hybrids have been added to the menu,
creating a culture of iconic drinks. Another example is how Starbucks was one of the first to
install WiFi in their coffee shops. The introduction of wifi helps understand the idea of the
“third place,” or the comfortable middle ground between home and the workplace. The degree of
comfort in this domain of leisure is what makes customers return.
Return customers are a primary strategy of Starbucks, which is why the company strives
to create a global community of brand loyal consumers. Regardless of where Starbucks
customers travel, they should find comfort in their nearest coffee shop. Customer satisfaction is
certainly a key marketing focus for the company. From payment to the last drop of coffee, the
customers must feel the Starbucks experience, leaving happy and satisfied. As more loyal
customers are generated the worldwide presence of Starbucks grows because happy customers
will spread their positive coffee experiences.
Starbucks is the most popular coffee shop in the world despite the presence of
competitors. To control more of the coffee market share, Starbucks bought some of their direct
competitors like Seattle’s Best or Pasqua Coffee. The biggest competitor they have is Peet’s.
They also have indirect competitors like Dunkin’ Donuts and more recently Burger King and
McDonald’s because the fast food chain now sell espresso. In North America where Starbucks is
very successful, they now have to fight against Nestle’s nespresso machine that are very popular
in the U.S.A. To combat Nestle, Starbucks’ solution was to launch its own ‘Starbucks Espresso
Pods’ that are compatible with the nespresso machine so they are present on the market.
Defeating competition and gaining customer favor worldwide, Starbucks is an unstoppable feat
that is present on nearly every continent. Below is a graph that illustrates the corporation’s global
presence. Following the graph, standardization and adaptation in specific global segments will be
Graph: Countries that have a Starbucks (Image Credit: Wikipedia)
PART I: STARBUCKS IN NORTH AMERICA
Understanding the American Market
What does one do if the target market is
coffee drinkers? Presented with this
challenge, Starbucks did not limit their market by targeting smaller niches, like workingmoms,
earlyrisers, or afternoon espressolovers. Instead, with the vision of “establish(ing) Starbucks as
the most recognized and respected brand in the world,”
the company expanded by geographic
region, growing brand awareness and recognition along the way (“Catching the Starbucks’
Fever). Despite this broad goal, Starbucks does in fact have a desired target market. In American
49% of sales come from men and women aged 25 40 who are frequently sociallyconscious
professionals. The majority of the remaining revenue comes from the young adult (1824) and
teen segments at 40%, and 3%, respectively.
To understand the importance of the American market, refer to the graph below
shows that Starbucks takes in over 70% of it’s profit from the North American market. Because
Starbucks in North America is the company’s largest source of revenue, the company devotes
millions of dollars in marketing efforts each year. Positioning the coffee as a product that is
sustainablysourced makes consumers believe Starbucks is a local community facet. Compared
to other large multinational corporations, Starbucks has not been as affected by the growing
movement to buy local. Like a community center, Starbucksloving Americans flock to their
local coffee shop to meet friends, study, and conduct business meets. In America, Starbucks
supports regional associations and nonprofit, which further cements the local feel of the
business. This commitment to community has earned Starbucks the position of ethicallyminded
While some may associate Starbucks solely with the trademark drinks, like the
Frappacino or the Cool Refreshers, the Starbucks Company also sells beverage accessories,
prepackaged mixes, and an array of other food service products. Their revenue comes from
three sectors, Starbucksowned cafes, licensed stores, and foodservice products, which can be
seen in the graph below. As for the overall corporation, Starbucks manages five other brands,
including: Seattle’s Best Coffee, Tazo Tea, Evolution Fresh, La Boulange, and Teavana. Unlike
many corporations that manage brands hoping to avoid market cannibalism, Starbucks has
developed an innovative strategy to involve the majority of its brands, maximizing brand
awareness for all of its products. When customers walk into a Starbucks cafe, they are often met
with a line, which conveniently allows them time to marvel at the Teavana beverage accessories,
gift sets, and product lines that mark the boundaries of the queue. Nearly at the counter,
customers can look at the mouthwatering La Boulange products in the pastry display or opt of a
healthy option by picking up an Evolution juice from the refrigerated shelf. Finally at the
counter, the customer must decide whether to try a new drink or stick with the safety of his
preferred drink. Regardless of whether the customers decide to be daring or conservative, the
product link comes full circle as customers are given the option to take home packaged DIY
versions of their beloved products.
According to a Missouri State University research team, Starbucks relies on a pricing
strategy that focuses on quality and experience over price, which explains why people pay four
dollars for a drink. Simply put, people do not just come for the coffee; they come for a business
meeting, group study session, peoplewatching observation, or a multitude of other reasons that
extend beyond the physical products. In America, the price of drinks, pastries, and other products
are standardized throughout the country.
While the Starbucks cafe is also considered a product for Starbucks, it falls more
accurately under the realm of “place” in the marketing mix. The illustration below
three standardized elements of the Starbucks store, the exterior, counter, and seating area. While
Starbucks differ slightly depending on location, the majority look the same from the outside.
Containing both the green lettering in the same font and the unmistakable logo, Starbucks stores
appear sleek with open glass windows. If the Starbucks is inside, for example at an airport or
shopping mall, the windows will removed, creating an even more open and inviting experience.
Inside all North American Starbucks stores, consumers are guided through a winding maze of
products and promotions before arriving at the counter. While waiting in line, customers are
encouraged to try the newest beverage or to buy holiday merchandise. At the counter, all
Starbucks menus appear to be the same even if there is different content. The physical counter is
standardized down to the small shortbread cookies and mints that customers can purchase last
minute. The final element of the Starbucks “place” is the seating area. This element is the most
adapted part due to geographical differences and space constraints. For example, due to severe
weather, Starbucks in Canada cannot offer the same outdoor seating that a Starbucks in Florida
offers. Additionally, Starbucks in urban areas, like Chicago, Boston, and New York have limited
retail space because of exorbitant real estate values; therefore, in urban areas seating areas must
be adapted. However, there is also a high degree of standardization in the seating area. Starbucks
uses the same leather armchairs and couches in all of its North American storefronts. Tables seat
two people to encourage personal conversation or business meetings.
Marketing Communications (Promotion)
Starbucks is a brand built on heritage, superior taste, and commitment to community.
Like any great story, Starbucks’ narrative is accessible through emarketing, public relations,
brand management, and product packaging. The story is simple and straightforward and
Starbucks want consumers to know it. Stemming from the North American market, Starbucks
has synchronized its brand narrative throughout all communication platforms, ecommerce, print
media, merchandise, and physical store layout. Around the world the Starbucks logo is one of the
most recognizable. This appears on every Starbucks product from cafe to cup. Packaging has
been standardized throughout North America. Considering the recent debate over Starbucks’
holiday cups, consumers care about their coffee. While the argument revolved around product
packaging, people were upset on a deeper level. Suggesting that Starbucks is overly concerned
about being politically correct around the holidays, consumers lashed out at the brand for its lack
of creative holiday cups. Regardless of the ridiculous nature of the debate, consumers care about
the brand, which stems from Starbucks role in American culture. Some people cannot live
without their morning coffee from Starbucks, which is certainly part of the Starbucks story.
Free Trade, philanthropy, internal education, and employee benefits are core practices of
Starbucks. The company is committed to help its American employees, which is why Starbucks
is continually named one of the best companies to work for in North America. Starbucks
communicates its dedication to free trade practices and environmentallysustained ingredients
from company to customer, meaning employees are educated about employee practices in
addition to customers. This type of bottomup promotion appears more honest and trustworthy
from the perspective of consumerss.
Future of Starbucks in North America
Growth in the United States
In December of 2014, Starbucks announced a fiveyear growth plan that projected a
revenue increase of over fifteen billion dollars by opening more than 1,500 stores worldwide. In
America, the brand hopes to strengthen its tea brand, Tevanna, focusing on chai and icedtea
infusions. With $4 billion loaded on prepaid cards in North America in 2013, Starbucks sees
great potential in the mobile sector that allows customers to pay via phone app. While a
significant amount of the fiveyear plan focuses on global outreach and expansion, Starbucks
regards its home market (North America) as its strongest and largest market. Expansion is
expected, but Starbucks is also committed to hiring veterans, educating employees, and
promoting sustainability. Through these social platforms, the company hopes to further support
its home market and truly make a difference in America.
Growth in Neighboring Markets
Due to brand recognition and control of the market share, Starbucks is quickly taking
over in the neighboring of Mexico, Canada, and the Caribbean. By introducing stores in popular
tourists areas, such as highway rest stops and airports, Starbucks is further expanding its global
presence. One particular pull that is causing such rapid growth in neighboring markets, is the
idea of “American cool.” The Starbucks name has become a ubiquitous facet of the American
fast food culture, and because Americans tend to be the trendsetters of North America, Mexicans
and Canadians quickly want to mimic and explore popularized American culture. Despite
competition from Authentic Mexicana (Mexico) and Tim Hortons (Canada) in additional to
smallscale local coffee shops, Starbucks continues to expand and open new storefronts in
PART II: STARBUCKS IN ASIA WITH A FOCUS ON CHINA
Understanding the Asian Market
Because Asia is a large and diverse market, culture and consumer behavior varies a from
country to country. It is necessary to define measurements to evaluate the profitability and
accessibility in each nation.. Understanding the different consumer behaviors segments allows
Starbucks to launch different line of products to cater the local tastes and preference.
With a presence in 24 Asian countries, the focus will on the four biggest national markets
for Starbucks: Japan, Singapore, China and Indonesia. The discussion will be mainly focused on
the Chinese market.
Both high & median income groups are present in Japan, so coffee is available at
different price markers. Most of the customers in this region are in working class therefore they
prefer coffee most. They are concerned about the quality to this well be beneficial. They are
regular coffee drinkers, and the world’s 3rd highest consumers of coffee.
Most coffee drinkers belong to upper class and uppermiddle class markets in Singapore.
Competitors who lower price should be of two types in this region to grab the market. They are
indulged with luxury so variety of products should be provided with good atmosphere.
Consumer preferences indicate Chinese customers prefer tea.
It’s a major coffee producer & exporter of the world. Indonesians are regular coffee
drinkers, so quality and user status based segmentation is most suitable. But the price should be
moderate in this area.
Understanding the Chinese Market
Chinese people traditionally favor tea and typically do not drink coffee on a daily basis.
Starbucks need should focus on promoting its tea markets in China to build up a customer base
in a market that has incredible revenue potential.
Starbucks did not start by promoting its product, it started by emphasizing the brand. It
focused on selecting highvisibility and hightraffic locations to project its brand image. This is a
smart move because Chinese customers favor of western brands for their exotic appeal.
Additionally, the higher price of many western brands, mostly because of tariffs, gives people
the impression of projecting higher social status and better quality of lifestyle. After the brand
raised brand awareness in China, Starbucks launched its physical cafes. And soon after, the
company adapted by introducing beverages that contained popular local ingredients such as
green tea. The combination of eastern ingredients in western products shows how Starbucks
successfully adapted in the Asian market.
The standardization and the local adaptations of the marketing mix
In China Starbucks adapted menus by offering Chinese teas and treats like mooncakes to
cater the local tastes. Although Starbucks has been in the Chinese market in 1999, it was not
always as wellknown as nowadays in China. Initially the company chose a standardization
strategy that did not consider Chinese purchasing habits or consumer preference.
The MidAutumn Festival, also known as Moon Festival, is one of the most important
traditional Chinese festivals. Families gather together and eat the moon cakes together. This is a
critical time of the year because the timing of the MidAutumn Festival is always in between
Teacher’s Day, National Day and the Double Ninth Festival in China. However, all those
previously mentioned festivals, last from early September to midOctober; yet only the
MidAutumn Festival has a symbolic food. Chinese people love to bring families and friends
food as gifts, so people preorder mooncakes, starting as early as June.
In 2003, Starbucks launched mooncake gift sets for MidAutumn Festival in China. By
introducing interesting flavors that are different from the traditional Chinese ones, Starbucks
chose flavors relating to the company’s brand history. For example, Starbucks had mocha
flavored, caramel Frappuccino flavored, raspberry infused coffee flavored and so on. These
interesting flavors attracted the younger Chinese generations who are more willing to try new
things. With the projected attributes of western culture that Starbucks has marketed over the
years, Chinese customers found the mixture of east and west interesting. The mooncake
collection was a great success and has been on the market for 13 years. Starbucks introduces new
flavors every year and changes the appearances of the mooncakes constantly to keep the
customers interested. Promotional posters of mooncakes appear on the walls of all Chinese
Starbucks from June to October. Below is a photo of a mooncake gift set.
In the last two years, Starbucks has been trying to
introduce rice dumplings, which is also a universal gift
in China over spring season, for the Dragon Festival.
After the success of mooncakes for years, Starbucks
introduced the Chinese tea collection. Starbucks has
never used any advertising or promotions that could be
perceived by the Chinese as a threat to their teadrinking
culture, but that was not enough for Chinese people to
switch their teaaftermeal habit into coffeeaftermeal habit (Helen H.
In 2010, the eleventh year of Starbucks in China, the company introduced beverages
made of Chinese traditional tea and lattes infused with Chinese tea. By introducing this line,
Starbucks tried to alter consumer opinion that Starbucks sells coffee. To promote the teas,
Starbucks reduced the cost to twothirds of the price of a normal mocha or latte in Chinese
market (Luxia, Douban). There were a lot of negative voices saying this beverage is just a
marketing move, but in the end, a lot of people loved the tea. With a lower price, more Chinese
people could afford the drink, which increased brand recognition throughout the country.
Introducing the green tea into the Chinese market was the biggest turning point for Starbucks in
China because it succeeded in attracting even more customers. Helen H. Wang states in
“This strategy has effectively turned potential obstacles into Starbucks’ favor. Chinese
consumers quickly developed a taste for Starbucks’ coffee, which was essential to Starbucks’
success in China.” It is only a matter of time before these customers turn into loyal customers.
Because Chinese people love food and are quite aware of the healthy eating habits,
Starbucks put labels on packaging of the salads, sandwiches and pastries in the grabandgo
section. This packaging explicitly disclosed the regions where the ingredients came from.
Besides addressing Chinese consumer’s concerns about food safety, it also improved the brand
image as a provider of healthy food and drinks in general.
, Starbucks charges up to 20% more for its coffee products
in China compared to other markets. The Chinese state media has attacked Starbucks for this
practice, but the company says the prices are due to the higher costs of doing business in the
, China cannot be generalized as one homogeneous market. There
are many little “Chinas”. The culture from northern China is very different from that of the east.
The disposable income of customers inland is not the same as consumers in coastal cities. To
address this complexity of the Chinese market, Starbucks divided China into three individual
regions and partnered with local enterprises for a network and knowledge of expansion in China.
“In the north, Starbucks entered a jointventure with Beijing Mei Da coffee company. In
the east, Starbucks partnered with the Taiwanbased UniPresident. In the south, Starbucks
worked with Hong Kongbased Maxim’s Caterers” (Helen H. Wang, Forbes). Each partner knew
the region well and brought a network of local suppliers to Starbucks. According to
news in March 2015, Starbucks is going to partner with Tingyi Holding Corporation, the No.2
soft drink seller in China. "China is a tough market to crack logistically. It's hard to get beyond a
few cities without a distribution network you've built up yourself, which takes a lot of
investment," said James Roy, associate principal at China Market Research Group. He claims
that "the best way is to partner with somebody that has a network ready to go.” Tingyi has been
selling food and beverages in Chinese market for over a decade. With their great network and
sophisticated insights of food and beverage market in China, a bigger market for Starbucks in
China is foreseeable.
Marketing Communications (Promotion)
As previously mentioned, Chinese people perceive imported western brands a symbol of
higher income and modern lifestyle. The chic interior design, comfortable lounge chairs, and
upbeat music differentiate Starbucks from other tea places in China and help Starbucks build its
trendy brand image. According to
, with its constructive instore design,
Starbucks gets “strong appeal [from] younger generations who fantasize about Western coffee
culture as a symbol of modern lifestyle. Many go to Starbucks not just for a cup of Frappuccino,
but also for the ‘Starbucks Experience’ that makes them feel cool and trendy.”
Besides creating a convenient atmosphere for customers, Starbucks also adjusted the style
of seats in lounge for China. “Unlike Americans, who can’t cope without a morning cup of joe,
most Chinese customers don’t just grab and go," writes Violet Law in
she claims that “coffee shops here are a destination [where] people sit back and chat with friends
and family.” Others, she explains, come to Starbucks to do business. While most Starbucks
stores in the U.S. are hectic and bustling, Chinese consumers seek out Starbucks to "nurse their
drinks and lose themselves in their laptops... enjoying tranquility that's usually elusive in teeming
China," Law writes. With bigger seats and more space, students and whitecollar professionals
are more likely to do their work or meet friends in Starbucks cafes. In that way, Starbucks does
not only sell coffees in the Chinese market, but it also sells the space as a service, which is
totally genius because most of the milk tea stores in China are grabandgo. By understanding the
niche, Starbucks beat it competitors.
In China, people do not tip those who serve them. Thus it is not common to see
extraordinarily welcoming employees. Different from most of other coffee shops in China,
Starbucks has been training its staff to smile and welcome the customers warmheartedly. This
has become one of the elements that differentiates Starbucks from other coffee shops or milk tea
shops in China. Whenever a customer comes into the store, the employees welcome and greet
with a smile. This level of service helps justify the higher price of coffee because the customers
are paying for the nicer services.
Future of Starbucks in Asia
Capitalizing on rapid growth, Starbucks recently announced plans to open 100 new stores
in Malaysia, the Philippines, and Thailand over the next four years. The company opened its
first Vietnam store in the fourth quarter of 2013 and plans to open more in that region of the
world. Asia currently only accounts for about onefifth of Starbucks stores but that looks is set to
change. The chain has been in India (in joint venture with Tata Global Beverages) for just over a
year, and currently has more than 25 stores open. Over the next five years, Starbucks executives
say they plan to double their employees in the Asia/Pacific region to 40,000 people. Jinlong
Wang, Starbucks’ Asia Pacific president and CEO Howard Schultz have said they expect China
to become the largest market outside of the US for Starbucks.
At some point next year, China is expected to replace Canada as Starbuck’s second
largest market by store count. There are currently more than 1,000 outlets in more than 60
Chinese cities. In China, the brand has faced criticism for its high costs, which are reportedly up
to a third more expensive in Beijing than Chicago. But, it doesn’t seem to have slowed the
brand’s popularity, with a Starbucks store in China averaging $600,000 in revenues annually.
And in terms of coffee shop brands, the competition in China is causing Starbucks to
explore more competitive pricing strategies. Although American coffee rival Dunkin’ Donuts
recently closed 40 outlets in China and Taiwan, Costa Coffee has a has a target of 500 stores in
China by 2016; the Taiwanese cafe 85 Degrees has plans for 450 stories by 2017, and Hong
Kongbased Pacific Coffee has a growth ambitions across Asia, and particularly in mainland
PART III: STARBUCKS IN EUROPE
Understanding the European markets
With stores in 22 European countries, Starbucks is the market leader in the fast food
coffee industry. In Europe, Starbucks targets coffeeloving customers who do not mind paying
the relatively highprice, compared to the 1€ cup of coffee that can be found in a local cafe.
In western Europe, the prime target is the young adult and student demographic because
these are the type of people looking to make Starbucks a social experience. A good example is
the hype created each year by the arrival of the PumkinSpiceLatte (or PSL). While taste is a
factor, young adults mostly buy this drink because it gives them a sense of belonging to a group
that can afford this product. This group is easily recognized walking the streets with their iconic
takeaway cups in their hand that says “I spent 5€ on a beverage. Starbucks has implanted this
need for “affordable luxury” in it's consumer's minds.
With revenues lower compared to western Europe, eastern Europe’s target is much
smaller. Consumers in these markets too share the need to buy Starbucks for the status symbol.
Surprisingly, Starbucks is not found in Italy. By choosing not to do business in the Italian
market, Starbucks says that it cannot compete with Italian coffee houses, despite its superior
product. Starbucks finds that business in Italy would damage the brand's image.
Starbuck's positioning statement is that “Starbucks Coffee Company provides an uplifting
experience that enriches people’s lives one moment, one human being, one extraordinary cup of
coffee at a time.” Starbucks created its image of a place with fast services and an enjoyable
environment, while keeping with an American vibe. Blending American and European cultures,
Starbucks focuses on an American business idea that sells European products, like Italian coffee.
This makes Starbucks especially attractive to European consumers.
The standardization and the local adaptations of the marketing mix (focus on French & UK
Starbucks has specialized by proposing highquality coffee drinks that combine
trademark Starbucks drinks, like the frappuccino, and more locallyappreciated drinks and
foods, like french pastries. This product differentiation according to customer's wants and needs
helps create brand appreciation For example, in the UK, there are more than 10 different sorts of
teas on the menu. Additionally, the breakfast menu is more diverse, offering porridge, smoked
salmon, and cheese bagels. Contrastly in France, there is only one choice for breakfast, a
breakfast sandwich or a croquemonsieur. This differentiation makes the customers feel like the
brand understands their requests.
Starbucks is often criticized for its higherthanaverage prices; however, customer still go
to Starbucks. Starbucks sells a lifestyle, which can explain why people are willing to pay more to
go to Starbucks. Consumers do not mind spending a bit more money because of comfortable,
social atmosphere and environment. For example, in the United Kingdom, customers have to pay
2,25£ for a regular sized latte, while they can pay only 2,15£ at the competing Prêt à manger for
the exact same drink. So people come to Starbucks not for the competitive prices but for the
affordableluxury offered by the brand.
While there are more than 20.000 Starbucks around the world, most of these stores look
exactly the same. That's because Starbucks has created a special atmosphere in it's store.
Compared to other parts of the world, French consumers tend to consume their products onsite,
while the people from the UK are more on the “togo” end of the spectrum, which explains why
there are mostly couches and tables in French stores, and a very small counter, with the
exception of train stations.
Marketing Communications (Promotion)
The store is a huge part in Starbuck's marketing strategy in Europe, as it is what attracts
most people to their store. So making it the most comfortable place to buy coffee is one of the
company's biggest aims. All the stores kind of look the same, so you can go to your local
Starbucks Store and still feel at home in a Starbucks in London or Barcelona. In Europe,
Starbucks does not often create traditional print advertisements or commercials. Instead,
marketing efforts focus around store presence and appearance, which builds customer loyalty.
The product and the brand awareness is sufficient to attract new customers.
The presence of the brand on social media (31.000 followers on Twitter for Starbucks
France, 637.000 for the UK & 70.000 in total on Instagram) significantly aids with brand
awareness. With daily posts about promotions, like “buy one, get one on november 27
company’s target demographics are accessible. Starbucks also does a lot of it's customer service
with the aid of social media, like answering complaints of customers directly, which creates a
certain bond with their clients.
The seasonal products Starbucks sells, like the PumpkinSpiceLatte, or the Christmas
beverages create a sort of craze in customer's minds, making them feel like they need one, before
the product is gone, forcing them to wait a whole year.
The recognizable design of the coffee cup also adds value to their product. With their
slogan “We proudly serve” and their logo displayed on the cups, Starbucks has now become
familiar, accepted, and adored by Europeans.
Future of Starbucks in Europe
In order to have more power in Europe, Starbucks launched a licensing program with a French
company, Casino restauration, expected to open fullsize Starbucks stores within its
supermarkets. With more than 500 supermarkets in France, this licensing agreement could help
Starbucks settle in the French market, which is usually reluctant to American products.
Starbucks is also rumoured to sign another licensing agreement in Italy with a local businessman,
in order to expand its market in Europe. But Starbucks is still scarred with its failure in Australia,
which is why it is exploring its options.
Starbucks (Intro & Global Segment):
Starbucks Corporate Story
“The Starbucks Brandscape and Consumers’ (Anticorporate) Experiences of Globalization”
Craig J. Thompson and Zeynep Arsel
Journal of Consumer Research, Vol. 31, No. 3 (December 2004), pp. 631642
“Starbucks Marketing Strategy Unconventionally Effective”
Published By Vote For Us
Sources (North America Segment)
“Can Starbucks Bring Back the American Dream?”
Published By CBS Moneywatch
“Catching the Starbucks Fever”
Brent Kembell, Michelle Hawks, Sean Kembell, Leonard Perry, and Luke Olsen
Published By Missouri State University
“How Columbus Became America’s Test Market”
Published By Columbus Monthly
“Mexican Coffee Chain Gives Starbucks A Run For Its Mocha”
David Santa Cruz
Published By: World Crunch
“Starbucks and the City”
Blog By John McCourt
“Starbucks Details FiveYear Plan to Accelerate Profitable Growth”
Published by Starbucks Press
“Starbucks Faces Growing Rivals As Coffee Wars Reach Boiling Point”
Published by The Guardian
“Starbucks Joins With Lyft on Loyalty Program”
Published by The New York Times
State of the Chains Report, 2013
Published by: Center for an Urban Future
“Why Starbucks Prices Went Up as Coffee Beans Got Cheaper”
Published by the New York Times
“Why The American Segment is Important for Starbucks”
Published by Market Realist
Sources (China Segment):
“Starbucks Strategy in Asia”
Md. Sabbir Hossain, Rabia Akter, Humyra Nuzhat
Caffeinonomics 1: Pricing a cup of Starbucks' coffee
Published by Consuneronomics
“Five things Starbucks Did to get China right”
Helen H. Wang
Published by Forbes
“5 Ways Starbucks is Different in China”
Published by Business Insider
“The rise and rise of Starbucks in Asia”
Published by Food Service Consultant
For the Frappuccino Index (together/globalization):
“Welcome to the middle class, China: The $5 cup of Starbucks has arrived”
Starbucks Reports Strong Quarterly Results
Starbucks (European Segment):