Marketing blunders : Starbucks in Australia

Résumé du document

The blunder is about Starbucks Company which globalize its business on the Australian coffee's market in 2000 with a great ambition. Starbucks grew up quickly by installing their coffee shop in 90 locations until 2008. However, Australian decided Starbucks was not their cup of coffee. Thus, the caffeine peddler closed almost all of his coffee, meaning millions dollars in losses.

Starbucks decided to penetrate the Australian market as they are already present in many
countries all around the world. First, in general Australians act the same as Americans people. Consequently, according to Starbucks, they should have the same coffee drinking habits than in the United States where Starbucks has the most shops open. Moreover, Australia has this reputation to be deep coffee lovers, drinking on average 3 to 4 cups a day. Thus, it seems to be inconceivable that Starbucks would not be a success on this continent.

Extraits

[...] Next, they should focus on a specific target if they wanted to keep the same product they do elsewhere. Starbuck target everybody in Australia. Whereas, for more success, they should identify a specific segment. In that case, young people from 15 to 25 are the ones to target because they prefer the quality of experience than the quality of coffee and barista. They should target customers that didn't already consume local coffee. For this target, they should offer unfamiliar products. Starbuck failed in opening a wide number of stores quickly everywhere in the country. [...]

[...] Moreover, core value for Australian is the product origin, including the production methods, if ingredients were sourced sustainably, including The Rainforest Alliance and Australian Certified Organic. Communication Relying on its reputation, Starbucks choose to not advertise in the mass media, and thus failed in their communication strategy. Because of this lack of communication, customers didn't know what products actually it was about. Thus, they didn't trigger the customer's need or want to purchase their products with advertising or promotion. Like in other countries, they rely on word-of-mouth to promote their brand. [...]

[...] Marketing blunders: Starbucks in Australia The blunder is about Starbucks Company which globalize its business on the Australian coffee's market in 2000 with a great ambition. Starbucks grew up quickly by installing their coffee shop in 90 locations until 2008. However, Australian decided Starbucks was not their cup of coffee. Thus, the caffeine peddler closed almost all of his coffee, meaning millions of dollars in losses. I. What happened? Why did the company introduce the product? Starbucks decided to penetrate the Australian market as they are already present in many countries all around the world. [...]

[...] According to them, it is a sharing moment in a little local café. Whereas, Starbucks coffee is often wide and does not appear to be a space to be close to each other. Next, the price they are willing to pay for a coffee in Australia is based on their customer experience with the barista and the high quality of coffee. In a Starbucks coffee, price is expensive whereas there is no discussion between the waiter and the client, and products are made from the machine and sweetening industrial ingredients. [...]

[...] The lesson we learnt is that we don't open coffee or shop based in anticipation, but on demand. They should have built a strong communication strategy. Indeed, they only rely on their reputation that they thought positively. But they should advertise so that the audience will know about the company. As Australian rely on experts, Starbuck could choose credible authors in their ads, celebrities, for example. They could also launch a local social media campaign, local partnerships and organize special events to establish a relationship with local clients and understand them by the way. [...]