Because of the globalization phenomenon, people living in emerging countries have new expectations and needs. That's why big companies are developing their offers on the global scale in order to tempt these potential customers, increase their recognition and gain market shares. However, cultures are different from one country to another and firms have to propose an efficient and adapted marketing strategy in order to be accepted in a new market. In fact, few years ago, brands were exporting their business model without taking care about local needs. Now that competition is increasing, especially in China, companies have to be different from each other by focusing on customers. In the mid 1990s, appeared a new notion, emerging countries. In fact Brazil, Russia, India and China have experienced a rapid economic growth and are becoming the new future actors in the consumption world. However, their uses and habits are very different and they are now powerful enough economically to oblige Western Companies to develop a specified offer.
Tags: Implementation strategy of Starbucks in China,Starbucks China and masculinity, Starbucks China case study, Starbucks china management, Political environment of Starbucks China
[...] Wu said that Starbucks has increased the size of the stores he oversees in Hong Kong and in China to around 2,000 square feet, to accommodate all of the lollygagging chatters. - An urban brand: open stores in strategic location (big cities such as Shanghai near in trendy places). However, the company has understood that in China the cannibalization could have bad effects. In fact, in other countries, Starbucks stores are so closed to each other, that some stores can be abandon. [...]
[...] While other brand will ask their employees to use their product, giving them coupons or others discount, Starbucks simply offer them to drink coffee as they want to. Moreover, each employee receives each month a free packet of coffee of their choice. The aim of this marketing practice was initially to perpetuate the communication of the brand outside the retail place. In fact, each employee will be able this way to offer Starbucks' coffee and to communicate about them outside the house. [...]
[...] Starbucks is still the largest purchaser, roaster and distributor of Fair Trade Certified™ coffee in North America. Providing funds for farmers to access affordable credit so that they can invest in their farms and receive assistance to help them through cash shortages during crop cycles. To date, Starbucks has committed $ 10.5 million to three not-for profit organizations the Calvert Foundation, Verde Ventures and Ecologic Finance to provide affordable credit to approximately 74,000 small-scale farmers and suppliers. Investing in social development projects in coffee-producing countries. [...]
[...] Collaborating with coffee producers globally on coffee quality, production, processing and research through the company's team of experts at the Starbucks Farmer Support Center, located in Costa Rica.” Starbucks around the world In 2008, Starbucks has more than 15,700 stores in 43 countries[2]. Its main strategy is to extend its offer and to increase its recognition around the world. As we can see in the graph below, the company is already well established on the worldwide even in BRIC countries. [...]
[...] Now in order to understand how Starbucks has to act in China, it seems necessary to indentify the Chinese vision of Coffee Consumption. The Coffee Lifestyle The coffee consumption is a Westerner habit. However, Chinese people and more particularly the new young middle class is trying to integrate Westerner habits in their lifestyle. That's why; since few years Coffee consumption is moving to Chinese big cities such Honk Kong and Shanghai. According to Chinese marketers, “coffee appeals to adventurous, open- minded, young, affluent, urban consumers”. [...]
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