International Marketing Strategy

Abstract

Starbucks is ranked the number one in the coffee retailer. Starbucks owns about 9000 coffee shops in different countries. Its president and CEO, Mr. Howard Shultz, follow a philosophy that a company should value its employees so that employees will value its customer. The Starbucks Experience aims to provide quality coffee in a relaxed atmosphere for those seeking a break between home and work. It is all about the coffee drinking and the coffee house experience, that builds customer loyalty and intimacy that structures Starbucks' brand image. This assignment is based on the international marketing strategy of the Starbucks, which is divided into three sections.

Table of Contents

Abstract2

PART 1: COMPANY UNDERSTANDING - BASE4

Background of the Company4

Home Market Situation4

International Marketing Strategy5

PART 2: OVERSEAS MARKET UNDERSTANDING7

Cultural Analysis7

Economic Analysis7

Market Audit8

Competitive Market Analysis9

Preliminary Marketing Plan9

Marketing Mix of Starbucks Filter Coffee for China9

Segmentation and Targeting for China11

Positioning of Starbucks in China12

Key Risk Factors13

PART 3: INTERNATIONAL MARKETING STRATEGY - PROPOSED/RECOMMENDED14

Strategic Marketing at China14

Moving Strategy15

References16

Appendix18

SWOT Analysis18



International Marketing Strategy

PART 1: COMPANY UNDERSTANDING - BASE

Background of the Company

Starbucks Corporation is the ranked number one in the coffee retailer. Starbucks own about 9000 coffee shops in different countries. Starbucks president and CEO Mr. Howard Shultz, follow a philosophy that a company should value its employees so that employees will value its customer. The future of Starbucks is heading towards expansion in the rest of the world. One possible way of expansion can be establishment of co-ops restaurants. The original idea of creating the Starbucks coffeehouse giant came from three men from Seattle in 1971 (Starbucks Annual Report, 2007).

Global expansion is the best opportunity for Starbucks. Starbucks should move into emerging markets such as India, as these markets not only provide new market but also provides low cost of labour. Consider the advantages and disadvantages of market development strategies.

Home Market Situation

The Starbucks Experience aims to provide quality coffee in a relaxed atmosphere for those seeking a break between home and work. It's all about the coffee drinking and the coffee house experience that builds customer loyalty and intimacy that structures Starbucks' brand image. In 2007, Starbucks' brand image was ranked #88 in the Business Week Top 100 Global Brand Scoreboard, raking in $3,631m in brand value.

The goal is to build the most well known and demanding coffee in the globe, and Starbucks indeed has been successful for last many years because of its market share and prime location. It has various agreements and contracts with many retailers, hotels, and airlines to increase its own recognition. It uses license strategy to maintain quality and high standards in its operations. It is also honoured as the place where people would love to chat and relax. They have the best online programs and customers from their homes select various types of coffee from their homes. It has excellent compensation and benefit management, and employees are considered as their major stakeholders.

Starbucks did leverage its global coffee leadership, they share its coffee knowledge and best practices to help Yunnan become a ...