...Tea in China and Starbucks Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1). Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate...
Words: 1241 - Pages: 5
...Case Study of Starbucks in China 姓 名 （中文） 李佩琪 （拼音） LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer analyzes the success factors of Starbucks’ marketing from...
Words: 6771 - Pages: 28
...[pic] 星巴克国际成功 Yakimova Alexandra （萨莎） 二零一四年六月 Starbucks (星巴克)是美国一家连锁咖啡公司。 星巴克销售各种产品，包括高品质的全豆咖啡，新鲜煮咖啡，意式浓缩咖啡饮料和冷饮料，食物，优质茶和饮料相关的配件和设备。 根据Mintel全球消费调研公司星巴克有美国的咖啡馆销售73 ％的市场份额 (2012年， usatoday.com ），这是显著的，因为大部分的收入来自国内市场（21亿美元），相比只6.4亿美元是海外份额（ marketingmagazine.co.uk ）。星巴克当中的许多成就是在快餐店和快速的茶点行业＃ 1的咖啡和世界最商业道德公司之一的位置。星巴克被称为“每一个街角有的一间咖啡厅”。 1．星巴克发展历程 1971年3月30日，星巴克在美国西雅图开了第一家店。Jerry Baldwin， Zev Siegel和Gordon Bowker合作开了第一家星巴克。他们三人开店是受到Peet’s Coffee的影响。在开业的第一年，他们从Peet’s购买咖啡豆，而后，他们就直接从咖啡豆产地购买。1980年Siegl 把星巴克股份卖掉。1982年星巴克录用Howard Schultz作为营销和零售销售部门的经理。Schultz受到意大利米兰咖啡厅的影响。他爱上了意大利咖啡店的文化，并认为它可能在美国取得成功。可Baldwin与Bowker以为这样的营业策略市场风险的能力很高，所以解决了Schultz的想法。结果Schultz自己开了新的咖啡店Il Giornale。1988 Schultz和其他的Il Giornale投资者以370万美元代价收购了星巴克。 此后，星巴克变成了美国版的意大利咖啡屋，1994年，聘请Wright Massey替全球连锁店进行店内设计后，如今星巴克在全球范围内已经有近12,000间分店遍布北美、南美洲、欧洲、中东及太平洋区 。优质的产品和服务，明确的市场定位以及积极的营销策略使得星巴克迅速成长为全球知名品牌。 在早期到90年代中期，星巴克开始了显著国内扩张。1991年，他们进入邮购目录业务。他们也大到机场。星巴克在Sea-Tac国际机场在西雅图开了第一个机场店。 下一个大的成功是星冰乐。星冰乐也带来了与百事合作：百事将装瓶和分销星巴克星冰乐遍布全国各地。 1998年，星巴克签署了分销协议，允许他们扩展到杂货店全国。 1992年，星巴克又与公众的首次公开募股。到这个时候，他们有165店，并很好地建立起来。他们获得了三亿美元，每股17美元。而此时，星巴克已经达到了国内成功，从这次开始可以们考虑国际扩张。 2． 星巴克为什么要国际扩张？ 星巴克还打算调低在全球开设4万间店的长期计划，迄今已开了逾1.6万间。 第一星巴克的全球扩张的原因是扩大其品牌的愿望。Schultz寻求星巴克成为一个全球性品牌，并给世界带来“星巴克体验”。有星巴克尚未达到一个可观的市场。在这些市场，他们有可能取得成功。其中包括一个强大的，有竞争力的欧洲市场和东南亚，亚洲市场，星巴克可能是先发。作为一个在任何国际市场的先行者提供了巨大的优势。日本的咖啡市场成长以及年轻一代开始看到美国文化作为新的和酷的。 另一个原因星巴克的全球扩张是为了扩大自己企业的社会计划。 星巴克曾发...
Words: 732 - Pages: 3
...Why Starbucks succeeds in China and others haven't By Shaun Rein, CNBC.com Contributor Updated 2/10/2012 3:03 PM • Comments • • • • [pic] • [pic] • [pic] About 14 years ago, I met an entrepreneur who wanted to open up coffee shops around China. I never thought the coffee business would work there. The Chinese would not easily give up their tea-drinking culture for a bitter, overpriced drink, I told him. • [pic] By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Enlarge By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Sponsored Links Starbucks has proven me wrong. Howard Schultz, the CEO of Starbucks (SBUX), announced that China will soon become its largest market outside the United States. It has opened over 500 outlets in the country, which are more profitable per outlet than in the U.S. even though sales per outlet lags its U.S. counterparts considerably, according to the chain's chief financial officer, Troy Alstead. What did Starbucks do to succeed in a market where so many other Western food and beverage brands such asDunkin Donuts, Krispy Kreme, and Burger King have failed to live up to their own expectations? What Starbucks did right in China is a textbook case study in how food brands can succeed despite rising labor and real estate costs and increased competition on the Mainland. • PHOTOS: 10 fake businesses...
Words: 909 - Pages: 4
...Introduction of the Starbucks Starbucks Corporation is an American global coffee company. It is the largest coffeehouse chain in the world, with 19,972 stores in 60 countries which headquarters based in Seattle, Washington. Starbucks is named after the first mate in Herman’s Moby Dick. It was founded on March 30th in 1971 by Gerald Baldwin, Gordon Bowker and Zev Siegl. And the Starbucks’ CEO is Howard Schultz nowadays. The company’s logo is also inspired by the sea-featuring a twin-tailed siren from Greek mythology. Until 2012, the company has an annual turnover of ＄13.29billion. Initially, Starbuck only sells high-quality bean coffee, drinks, salads, sandwiches and baked food through their company-operated retail stores, with the rapidly development of Starbuck, the company also offered bottled beverages in locality stores and grocery stores. In 1991, Starbucks established a relationship with CARE an international humanitarian organization and establishes a line of premium ice creams and offers a line of premium teas in the market, which was the beginning of the company’s international expansion effort. In 1992, Starbucks successfully listed. And in the later several years, this company has already acquired some small business. Then, Starbucks begin to expand its global marketing. The Company’s objective is to establish Starbucks as the most recognized and respected brand in the world. In realizing and achieving this goal, the Company plans to continue to rapidly...
Words: 4402 - Pages: 18
...popular globe’s food and drink businesses . Starbucks is one of the most famous chain of coffee shops in the world, mainly making bussiness in selling special coffee beans and other various kinds of coffee or tea beverage. Through out several decades of development, Starbucks is now a global Starbucks logo brand and presents in 64 countries and territories, as of March 2015. Among those regions, Asia is one of the biggest markets that Starbucks has built up its coffee brand sucessfully. (Source: http://Wikipedia.com/Starbucks) One of the big questions is what are the factors that makes Starbucks become an successful global coffee leader. Well, there are a lot of factors. However, in my point of view, the most important thing that makes them to be successful is they are able to adapt and localize if it’s required. According to Hofstede’s national culture theory, Starbucks perfectly suits the cultural characteristics of the host country’s customer. The following paragraphs shall analyze how Starbucks succeeds in Asia, especially aiming to specific countries in that region. Firstly, China is one of two biggest countries having a massive polulation about 1.4 billion in Asia that has Hofstede’s cultural dimension scores such as high power distance, low individualism, high masculinity, low uncertainty avoidance and high long-term orientation. (as below model) (Source: http://geert-hofstede.com/china.html) China has thousand years of tea drinking culture...
Words: 1531 - Pages: 7
...Analysis ----The Secret of Starbucks’ Success in China The current event article I found tells about the successful marketing strategies that the Starbucks Corporation takes to enter into the market of China, and simultaneously the problems and difficulties it has in the process of market expanding. The Starbucks Corporation is the global leader in specialty coffee consumption. Arising almost overnight from a market in Seattle, Washington, the company today provides quality premium coffees with a superior level of customer service and at a premium price, around the globe. Starbucks is an excellent example of a company that has successfully embraced a differentiation focus strategy tailored to providing a high quality, focused product, of which, for the company customers, price is in essence, no object (Isidro, 2004). Based on the stateside success, Starbucks begins to expand its international market. Additionally, the current coffee consumption of China is much lower than the average level in the world, therefore a huge commercial space existing there. Starbucks realizes this great development potential, hence it hopes to make China becomes the largest international market except U.S. in the future. However, this is a big challenge for Starbucks Corporation, and therefore the article analyzes the SWOT and 4Ps strategies of Starbucks by taking this entering into China’s market as an example. Besides, the article also summarizes the major problems that Starbucks may meet during the market...
Words: 1175 - Pages: 5
...December, 20, 2013 Starbucks Global Expansion Strategy with a Focus on China. Who doesn’t like great tasting Coffee? One must contend that when it comes to a good cup of coffee, Starbucks has it figure out. The company has come a long way from when it was first founded in Seattle, Washington in 1971. Starbucks vision to become a global player in the coffee business has been at its forefront. The company went public in 1992 and hasn’t looked back since. It seems that anywhere you go; you are a few minutes away from a Starbucks. The company aggressively campaign to become the coffee leader in the United States. It’s not hard to imagine that Company executives believed in market saturation in order to dominate the market place. Now, there is a much need for Starbucks to span outside the United States and it is looking into global markets to keep its expansion plans. The best choice is the overpopulated country of China. China seems to be a hot destination for many U.S. based businesses. Starbucks sees the vision of huge profits if it becomes successful in penetrating the Chinese market. When Starbucks looks at China as a new venture, it has to think of many different variables. The Chinese government can be a very difficult partner. The Chinese culture is much different from the Western culture Starbucks officials are used to. The geographic barriers that it faces must be studied as well. Aneki.com lists China as the 4th largest country in the world (9...
Words: 691 - Pages: 3
...How to do business in china With a Solid economic expansion, coupled with a rapid market transformation and a series of government reforms, mean China the world's second-largest economy is no longer just a country for low-cost manufacturing. It is also an increasingly attractive destination to do business. Several western companies including global giants such as Starbucks, Volkswagen, Boeing and Procter & Gamble have established a presence in the country. But despite China's increasing influence, challenges remain for those looking to do business in the country. Intense competition, corruption, business etiquette and language are some of the barriers that can be faced. In a first time we’re going to talk about a few keys of success of doing business in china, and then we will take the example of Starbucks and his adaptation on the Chinese market. Here are five things we should know before doing business in China: A mosaic of markets China is the world's most populous nation, with its sprawling 1.3 billion people making up a highly diverse market. There is no single consumer profile, and analysts suggest companies remain flexible and innovative, while understanding how their company would fit in each specific market. There's no simple answer in China it depends so much upon the specific market and upon the specific characteristic of your own company. Operating in a country with a history of thousands of years and ways of doing business that go back as...
Words: 2170 - Pages: 9
...names) II. Executive Summary (1-2 pages). Highlights of the information to come. III. Introduction (1-2 pages) The current positioning of Starbucks on the market can be characterized with unbeatable brand loyalty and recognition among consumers. For many customers throughout the world, Starbucks is the synonym of coffee. Its brand is easily recognized in coffeehouse segment of the market. Another competitive advantage is emphasis on high quality, which in turn appeals to consumers who are willing to pay extra for the product of high quality. What makes Starbucks a strong coffeehouse market player is strategic location of its stores. Traditionally located in high-traffic locations with high visibility, Starbucks ensures its stores are visually appealing. Such value-adding offers as free wi-fi and excellent customer service strengthen competitive position of Starbucks as well. Finally, it should also be mentioned that Starbucks carefully listens to the needs and wants of its customers. An example of the care for preferences of consumers is extensive social responsibility initiatives program led by Starbucks and emphasis on being environmentally-friendly. In other words, the company’s management keeps track of current trends on the market and changes in consumer preferences. However, face to China market situation, Starbucks can not afford high rental price for good traffic location. Introduction The company was opened first single store in 1971 in Seattle’s...
Words: 4182 - Pages: 17
...There are several barriers facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese. Other than that, having a cup of tea after meal will help to digestion. When feel upset, Chinese also believe a cup of tea will help to quiet down the mind. Moreover, when a Chinese family have guess come to their house, the owner will always treat the guess a cup of tea and can enhance the friendship. But to the coffee, Chinese do not get the benefits of drinking coffee and believe coffee are does not have the same value compare with tea. It will become one of the barriers facing Starbucks as they try to “teach” Chinese to change their view towards the coffee. In addition to this, one has to take into consideration the vast area of china. China consists of 1.3 billion of peoples. Even china is keep improving and economic start to growth up, but china is still having largely rural areas and lots of lower income family. Other than that, they have less familiarity with coffee and don’t have as much money spend on the more expensive beverage. Therefore, it will be other barriers to the Starbucks who want try to “teach” people to change their...
Words: 2428 - Pages: 10
...fall of the Berlin Wall, those living in countries under the influence of communism only had access to cars that were produced domestically or in other communist markets. This was due to trade barriers with the West. When communism fell, Western economies, that is, countries that were not under communist influence, were able to expand their markets to former communist countries. This in turn increased their profit potential. Related Reading: How to Prepare Your Company for Globalization Cheaper Resources Another consequence of bilateral trade agreements is the access to cheaper resources. Until the start of the 1990's, the People's Republic of China was largely closed off to the rest of the world. Many companies in the United States produced their goods either domestically or in areas with slightly less expensive labor. When China opened its market to the rest of the world, however, American companies were able to take advantage of the far cheaper labor. This is known as outsourcing. Cheaper...
Words: 1834 - Pages: 8
...Starbucks History Starbucks Coffee Company (Starbucks) was founded in 1971 by Jerry Baldwin and Gordon Bowker. At the time, the concept of selling coffee drinks and fresh-roasted whole beans in a specialty store was revolutionary. Howard Shultz and David Olsen purchased Starbucks in 1987 for $3.8 million. By 2004, Starbucks has grown to more than eight thousand locations worldwide. Strategy Starbucks strategy is that they are absolutely dedicated to brewing the finest coffee in the world, while maintaining their incentives to grow. Starbucks believes that in order to build respect and confident with customers, they must build respect and confidence with the employees first. The company is not only about coffee, but also about the experience created in the stores and in the company. Also, Starbucks persists to be profitable and it is. They live by a strict, slow growth policy completely dominating a market before setting its sights further abroad. As a supplement tot the growth provided by new outlets, Starbucks tried out new concepts in their store but the management felt that it took away from their core business. In 1994, Starbucks introduced a drink called Frappuccino, a cold coffee drink. Through a joint venture with Pepsi, a grocery-store version was marketed. International expansion to Japan and the UK As Starbucks was reaching the point of saturation in North America, the firm set its sights on overseas expansion. In 1996, Starbucks opened its first Japanese...
Words: 1397 - Pages: 6
...McDonald's McCafé Takes Aim at Starbucks in Europe Low-cost expansion is helping McDonald's vie with Starbucks as the Continent's No. 1 coffee chain McDonald's Trafani in a Paris McCafé, where lower prices are helping to nab Starbucks loyalists Ed Alcock PARIS — The Left Bank café is furnished with sleek wood paneling and leather armchairs. Patrons sip espresso from china cups and nibble on croissants and pastries. So what are those golden arches doing on the sign outside the door? The coffee shop on rue Linois is one of 200 "McCafés" McDonald's is opening in Europe this year. By yearend, McDonald's (MCD) hopes to have some 1,100 of the cafés across Europe. The cafés are located inside existing restaurants but with a separate counter, comfy furnishings, and nary a Big Mac in sight. Next year, the company plans 200 more, with an eye toward becoming "the No. 1 coffee seller in Europe," says Jerome Tafani, the company's chief financial officer for the region. That's a grande order. Starbucks (SBUX) is currently Europe's top coffee chain with nearly 1,200 stores. But McDonald's strategy of opening McCafés in existing franchises gives it a leg up over the Seattle-based java king. A stand-alone Starbucks in Europe requires an investment of $350,000-plus, at least triple what a McCafé costs, says Jeffrey Young, managing director of London management consultancy Allegra Strategies. "McDonald's finally woke up and smelled the coffee," says Young. "With the number of outlets...
Words: 2055 - Pages: 9
...Starbucks Corporation in China Company overview Starbucks Corporation is one of the most famous coffee retailers in the world. According to Starbucks Corporation (2012), it runs over 55 countries in many regions including North America, Asia Pacific, Latin America and so forth. Starbucks headquarter is located in Seattle, Washington, USA. It has approximately 149,000 employees. According to Starbucks Corporation (2012), its company verified the income of 11,700.4 million dollars during the fiscal year of 2011, which is an increase 9.3% over the fiscal year of 2010. In addition, the net profit of the firm was 1,245.7 million dollars in fiscal year of 2011, which rose 31.7% over the fiscal year of 2010. This Company is considered as a great business, which grows rapidly in past two decades. To illustrate this, in 1987 Howard Shultz and David Olsen bought Starbucks Company, and then five year later, it expanded from 6 shops to 165 retail outlets in Pacific Northwest. In 2001, Starbucks has more than 7,500 retail stores (Harrison et al. 2005). Nowadays, this company operates more than 17,000 stores over 55 countries (Starbucks Corporation, 2012). In the past decades, Starbucks Company has expanded globally comprising open branches in Republic of China. Starbucks Company first opened in China, found in Shenzhen in 2002. It is held by Coffee Concepts, which is a joint venture between Starbucks Company and Maxim group from Hong Kong (Harrison et al. 2005). In order to acquire...
Words: 4932 - Pages: 20
