Starbucks Coffee in China

Résumé du document

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.

Extraits

[...] The adaptation In order to succeed in this country, Starbucks has adapted its offer in order to seduce local customers. (The offer - Increase the size of the sores to invite people to join the new “Third Place” trendy phenomenon. 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). [...]

[...] The policy is a strong top management team: Starbucks continues hiring people with extensive experience in managing and expanding retail chains. “Organizational context is important in the determination of attitudes and behaviors”. (Rousseau 1978)[1]. The organizational context defines the role of employees in a company. This latter represents the entire environment around an employee, which will constitute his conduct in relation to the company. Starbucks' employees are essentials for the company, and represent an advantage toward competitors. Mr. Schultz is at the origin of the organizational context of Starbucks. [...]

[...] At least, Starbucks offers a social experience: the Third Place between home and work. In fact, people are welcome to stay for a long while: internet access, books, and sofas everything is made to make the customers feeling at home. The company provides employees with a great place to work, and this has main repercussions on customers. In fact, it encourages a close relation with customers: they are welcomed by numerous partners and their names are asked since the first visit. [...]

[...] 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. [...]

[...] The Company offers coffees with various flavored high caloric syrups, aromatized sugars, whipped cream Category Name of products Source: Starbucks annual report 2006 It most famous product is the Frappucino: a frozen blended coffee with whipped cream. What distinguish the most Starbucks from competition is that customers can choose coffee from a wide selection of “fresh roasted whole- bean coffees”. However, Starbucks proposes other kind of beverages such as tea, fresh squeezed juices and sodas. Moreover, the brand has a wide range of food items: pastries and sandwiches. To finish, the company has also started to sell products and equipment related to coffee, such as coffee mugs for instance. [...]