Starbucks marketing and culture

Introduction

people are paying more attention to brand because it is the support for the long standing of businesses.To this project, I am going to analysis starbucks marketing and culture.

  1. waht has made starbucks rapid growth in the world? what is successful business in

starbucks? what forms of media to use in the campaign as well as the budget?

  1. starbucks "culture" spread every corner of the world.Starbucks decided to enter the Asia Pacific rim markets first. Growing consumerism in the Asia Pacific countries and eagerness among the younger generation to imitate western lifestyles made these countries attractive markets for Starbucks.why did Starbucks close 600 stores in USA,but still enter the Asia Pacific rim markets?

In the 1980s,No unified global coffee brand, It just have instant coffee brand in the world. but from that time,starbucks become to strong coffee brand in the world. Schultz,He was the founder of starbucks. He just use thirty years developed starbucks from small coffee shop to 4500 coffee chain.The company went to great lengths to make sure the store fixtures, the assortment displays, the colors, the design, the music, and the coffee aromas all blended to create a consistent, inviting, stimulating environment that evoked the romance of coffee, that signaled the company's passion for coffee, and that rewarded customers with ceremony, stories, and surprise.To build a romantic spaces and beautiful sceneries in the city.

The core starbucks marketing strategy is based on the coffee history culture to produce a good taste, good quality coffee. Moreover, the success of Starbucks is not only attributed to its innovation, but also to aggressive expansion,both in the US and worldwide. As it began to expand worldwide form 1996, Starbucks is a leader within corporate globalization,considering itself to be a global company. The company has a three-pronged strategy-joint ventures, licensing and wholly owned subsidiaries-to expand globally. Starbucks has total more than 10, 000 outlets worldwide now, while the number in its ambition is around 30, 000. Starbucks is the world's largest multinational chain of coffee shops without major competitors. However, it still encountered competitive, collaborative and cultural challenges in the process of its global expansion.

The company, the world's largest coffee chain, said that it would close 600 stores in the United States beginning at 2008.but at the same time,Peter J. Bocian, the company's chief financial officer said, Starbucks would continue to focus on expanding internationally.

This decision let me think the case about starbucks move out of the imperial palace in Beijing.It still have problem in the international strategy, some people underestimate the risks of the enterprise.cause it have culture problem in it.every country have different custom, Is it starbucks need plan to different program enter Asia market?

Methodology

The topic of Statbucks culture and International Expansion asks for an approach which combines theory with practical examples.Therefore I intend to give the reader the theory as Starbucks culture.

How they build the romantic and good environment.I am via four ways to analysis their culture.

product and design decision

Starbucks has effects on much of the transformation process by determining operation cost as well as services and products quality.Moreover Starbucks provides a great range of beverages and complementary food items, directly to customers through stores. Starbucks is an innovator with consistency in same store sales. It launched new Frappuccino Blended beverages in fiscal and Iced Shaken refreshments product. In 2004, Starbucks introduced Frappuccino Light blended coffee. Moreover, Starbucks expended its categories by developing Starbucks branded coffee liqueur drink with Jim Beam Brands.Indeed,the core of Starbucks is its premium branded coffee, but it offers much more. It has become a second gathering place outside of work and home. The Starbucks CDs, created from the Capitol Records library, proved a significant addition to the company's product line.

Quality

Providing high quality product is essential for corporation into this industry and considered as source of competition. Starbucks is famous for selling the highest quality coffee beans and other related coffee products. It goes to great lengths to get coffee beans only with highest quality. They also set new precedence by outbidding the European buyers of an exclusive crop of coffee beans, which produces one of the best in the world. Starbucks trains its rosters for extensively one year. It has the distinction to educate public on Expresso. There are no other coffee bar competitors in the same scale as Starbucks. Starbucks has gained a recognized brand for its high good products and services.

Layout

Layout design is another critical decision for operations managers to make appropriate decisions influencing use of specific technology, to procure resources and also develop maintenance strategies. Basically, the store should set a mood to stimulate and soothe the customers.Starbucks had physical facilities that are visually appealing. Much attention has to be attached to create such kind of atmosphere, from the intensity of the lighting, the height of the counters as well as the interior painting. Starbucks layout is not a successful one at the beginning since it was designed to cause line-ups to attract crowds. They redesign store layout with restaurant designers involved. It new store layout is designed to be cosy and intimate, while at the same time providing customers with their own personal space. It caters customers' needs of looking for quiet away from home as well as intimate place to meet friends.

Service

So far, Starbucks had spent very little money on advertising.How can they make the famous brand without advertising? It is there service.employees that are well dressed and neat in appearance,and employees promising to do something by certain time,and doing so.their employee giving prompt services to user.the good service make users feeling safe in their transaction with their employee.That is why they spent little money on advertising,cause customer as a kind of advertising propaganda it.There is no easy way to do business, and only those who do their best to win cilenta can win business,as they said: "we are committed to our customer experience and to our coffee.

International Expansion

Starbucks stores operate in most metropolitan areas of USA. However, with the continuous globalisation trends, and also part of reducing dependence on US market, Starbucks increase its worldwide offering. For International Expansion, this is the topic that attracts the most attention. As we know, Starbucks plan close 600 stores in USA,but still enter the Asia Pacific rim markets. Starbucks faces the keen competition.culture difference , it is one of the problem to open the Asia market, they need more feedback from the consumer in order to improve their goods. Moreover,It must understand the culture for each country.40% people hope Starbucks can pay attention to their foods,and 45% people hope Starbucks can produce more new drinks.this is the initiative from Internet. It seems Starbucks has lots space to develop.

Bibliography

Books

  1. Alex Wipperfurth (2005) Brand Hijack: marketing without marketing, (Penguin Group,Ltd)

This book is a good introduction the brand hijack,across the globe, millions of insightful,passionate,and creative people are helping optimize and endorse breakthrough products and services-sometimes without the companies' buy in. In addition,The scope about how do you market to an audience that rejects marketing.the consumer collective .the funny business of earning consumer devotion.Also talk about what is brand hijacking.this article helps me identify brand how-to guide to marketing that finally engages the maketplace.the one topic I am really interesting in is the consumer collective ,"Starbucks quest as an opportunity to do something no one has done before"this part let me understand how consumers relate to brands.

  1. Naomi Klein (2000) No Logo,(Clays Ltd)

"NO LOGO"describe how is brand influence on the society,It can group this article into three types. No space,No Choice,No jobs,No Logo.It is clearly tell the reader how brands like Nike, The Gap, became revered symbols worldwide, author argues that globalization is a process whereby corporations discovered that profits lay not in making products , but in creating branded identities people adopt in their lifestyles.No Logo shows why brands developed rapidly in the world. It also draws attention to the democratic resistance arising globally to challenge the hegemony of brands.This book helps me to know what is global branding definition,and some of company how to become a strong brand.

  1. John Philip Jones (1999) How to Use Advertising to Build Strong Brands,(USA)

In this article provides the relationship between advertising and brand.John introduce brand is a product or service used by consumers.and a successful brand will build a preference-a psychological predilection-in the minds of its users that encourages them to buy the brand repeatedly.from this book,Let me realized Advertising was significant in brand.what is real advertising in consumer mind.there include psychology,marketing.there information give me many new viewpoint for my work.

  1. Thames & Hudson (2003)Wally Olins ,On Band,( Thames & Hudson Ltd )

brands are the cultural phenomenon of our time,This book shows What happens when a brand goes global.Advertising,Design and business is indispensable to brands.how brand can make more and more people trust and buy it. also Why the National 'branding' is one of the most contentious political concepts of our time.In this book,I realized the brands system,and really helpful of my research about branding's future.

Internet sites

  • http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html
  • This website talk at large about Starbucks Corporation from1971 to 1992.It shows Starbucks background and how to becomes a public company.Let me easily to understand Starbucks development programme.
  • http://www.globalexchange.org/campaigns/fairtrade/coffee/662.html
  • I choose this page because it examines Starbucks plans global expansion,and they looking for new countries on which to set up shop.Moreover,how they development of the company internationally in the future.
  • http://joshbersin.com/2008/02/27/starbucks-nationwide-training-day-did-it-work/
  • This page make mention of Starbucks Nationwide.describe what is relationship between customer and employee.The 'good attitude of services' is very important in their business.
  • http://www.thirdwayblog.com/category/starbucks/
  • This website shows how via instant coffee completes the transformation of Starbucks into a convenience brand. The creative design make a succession of financially successful Starbucks innovation.These information supplies me with the details of how a Starbucks develop their business marketing.
  • http://www.deadprogrammer.com/starbucks-logo-mermaid
  • The website describe Starbucks the place of origin.the background of their logo.
  • http://www.btimes.com.my/Current_News/BTIMES/articles/20090114020036/Article/
  • I chose this page cause these information talk about Starbuck brews growth in China.How they chose the place,and find the potential in China.these information supplies me research the international expansion for Starbucks
  • http://www.globalpolicy.org/component/content/article/162/27615.html
  • This page shows Starbucks wants to open Asia market,and analysis that case about Starbucks move out of the Imperial Palace in Beijing.
  • http://www.usatoday.com/money/industries/food/2006-05-18-starbucks-usat_x.htm
  • The page talk about How Howard Schultz open Starbucks market and build the good environment for customer.also they sale the CDS in their stores. Furthermore, the company went to great duration to make sure the store fixture,the design,the colour,the artwork,and the music.the excellent design is a important way build the casual atmosphere to people.that is the reason as Schultz said:"I am not a coffee expert,but I have been told that making a perfect espresso and delivering the perfect steamed milk is a bit of an art."

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