The Secret of Starbucks’ Success in China - 1180 Words

Article Review and 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,†¦show more content†¦In addition, due to the higher price, it completely cut off the low consumer groups, which improve its environment level. Moreover, owing to the brand personality of â€Å"the third life space†, Starbucks focus more on its service instead of the product. And the article says that the Sta rbucks require its operators to identify with the idea and the brand of the corporation, and also emphasizes the consistency of the operation, discipline and quality (Guang, 2011). Lastly, Starbucks has a unique promotion idea according to the article, which says that it thinks in service industry, the most important marketing channel is the branch store itself, not the advertisement (Guang, 2011). Therefore, Starbucks does not spend lots of money on advertising, instead, it persist in training its employees to be knowledgeable and enthusiastic, which has become a unique feature of Starbucks’ promotion. However, because Starbucks expands rapidly in the global market in order to pursue the financial numbers, it causes a reduction of the brand value, which is one of the major problems that Starbucks Corporation encounters in the process of expanding Chinese market. Furthermore, in China, there is a large gap between economic strength of the large cities and small cities. Because the price of Starbucks coffee is too high, therefore it is hard for Starbucks’s market development in the medium and small cities in China. The last majorShow MoreRelatedThe Most Important Starbucks Marketing Strategy951 Words   |  4 PagesThe most important Starbucks’ marketing strategy is culture and experience strategy, supplying unique experience and sharing coffee culture. Starbucks thought 90% of feelings to coffee came from smell while 10% are from taste. So, Starbucks focused on aroma of its coffee shop, making sure that costumers would be attracted by coffee aroma once they came in a ny shops. 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