Their knowledge, organized way of business left a good impression on customers’ mind. Saunders et al. Indeed, it is choice of suitable strategy determines reliability and feasibility of the study as multi-method strategy, remains the best strategy for the nature of this study. This study offers an in-depth analysis on the closedown of a Starbucks café, a foreign firm, and its penetration in the China. By 2007, many factors converged against the coffee shop chain exposing serious shortcomings, vulnerabilities, and problems derived from the way Starbucks was conducting business. As a result, the operations manager of Starbucks not only takes into consideration the availability of supply but also consider cost-effective as well as product placements, time efficiency and storage approach in the achievement of the enterprise’s achievements to become one of the most recognized coffee market industry. More so, the organization’s strategies have seen Starbucks Corporation expand to the Far East and United Kingdom being the key business driver as it established a foothold in China. Starbucks responded that its pricing strategy was based on local market costs, including infrastructure investment, real estate and labour costs. As a result, Starbucks has increase market opportunities as it invested five million US dollars in the year 2005 spent on China Education Project through corporate social responsibility in China western and central areas in September 2005. More significantly, the company’s new pricing was decided during the rebranding of the coffee stores as it faced competition within the popular Kings Road, and Chelsea area in London. Starbuck‟s Store sales International Journal of Business, Economics and Management Works Vol. More so, Starbucks management both in the UK and China mark seek to reduce cost and increase customer accessibility by exploring suitable market mix strategies applicable in different locations. Starbucks pursues premium pricing strategy and its products are generally more expensive compared to the competition. Figure 1.4: Number of Starbucks stores in China from 2005 to 2013 (The Statistics Portal 2013). The corporation has plans to open 500 new stores in China by the end of the year. The premium pricing strategy of the company aimed at improving its brand positioning in the Chinese … More so, distribution channels influence placement of products through retailers wholesalers, as the end consumers access the goods easily. On the other hand, research interpretivism remains more aligned to social science as it is based on the assumption that reality is created inter-subjectively, thus requires the better understanding of different variables and entities (Saunders et al. As a result, majority of Starbucks coffeehouse are strategically located within the reach of its customers especially in distinct locations within, Taiwan, Beijing, Hong Kong, and Macau in China within shopping malls and areas near the commercial centres. As a company that seeks to establish strong international market, Starbucks Corporation has a pricing strategy that makes its products affordable for its consumers ranging from high level income and low level income earners in their different market segment. Figure 4.1: Marketing Mix Quantified of Starbucks in China (Author 2014). Even so, Starbucks Corporation seeks to carry out pricing differentiation because of its varied target market as it faces increased strong price competition from the other competitors and substitute. Considerably, as the fastest growing brand in the food and beverage industry Starbucks Coffee, management establishment in China seek to maintain its unique and modest brand in the market. More so, Starbucks management offers a guaranteed promise to its customers to offer fully satisfying services as its promise states that the customers can get a coffee drink the way they want it (Knowles 2000). Ho: No changes with the international marketing strategies used by Starbuck Corporation internationally. Jim is a well-known Business writer and presenter as well as being one of the UK's leading educational technology entrepreneurs. Nonetheless, the use of research study based on secondary sources assists in exploration of new insights, through carrying a detailed deductive and explorative study that can be structured more suitably to suit the research. This research study focuses on Starbucks’ ambitious goals focused on international market expansion research on the international marketing entry strategies used by Starbucks both in its successful China and UK market to remain essential. As a research study, which seeks to be rational on seeking an independent opinion on the international marketing strategies used by Starbucks, the research methodology and procedure should remain unbiased. Brand Focus: Starbucks Premium Pricing Strategy. As a result, Starbucks strategy seeks to reduce cost and increase customer accessibility as the management selection of their location of coffee shop ensure they remain accessible to its customers. More importantly, the use of secondary data analysis in carrying out this research would be viable as compared to other research methods. H1: There are expected changes with Starbucks competition in its expansion globally in China and UK. The China-Asia Pacific region led sales for Starbucks in 2012, and company is considering opening 600 new outlets in the region this year, targeting 1,500 stores in China alone by 2015. With the analysis of Starbucks entry into UK we can conclude that Starbucks has used top-notch standardisation of the marketing mix in order to achieve increased market expansion. More significantly, the company has used competitive market mix strategy of market entry into the markets in China and the UK. Loading... Unsubscribe from Linyan Wu? More significantly, location decisions in China remain closely tied to expansion to the Southern and Northern areas based on organization’s strategies, especially the increased convenience to attract market share, based on the increased levels of capacity and flexibility, operating costs, revenues, operations, competitive advantage, and importance to supply chains (Fackler et al. Kotler (2000), defines product as tangible and intangible product produced  to fulfil the needs of consumers. More so, Starbucks Coffee consideration of the availability of supply but also consider cost-effective in its different market locations as well as product placements, time efficiency and storage approach has led to its achievement of increased market expansion and profitability. As a result young, urban Chinese, who solely started to associate visiting Starbucks or being seen with a Starbucks cup, as a symbol of social status. More significantly, this study wants to emphasize the strategic thinking about all the factors involved in applying and analyzing the increasingly enthusiastically satisfied customers served by Starbuck’s management unlike its competitors in the international market. Indeed, an analysis on secondary sources for the purpose of understanding the topic of this research meets the aim and objective of the study, as it critically analyses best practices of market entry strategy used by Starbucks in its internal and the external business environment. Deresky (2006) indicates the company’s general promotional strategy based on increased low and high participation in the market using transformational motivation. More significantly, Starbucks Company priced its blended speciality coffee at an affordable price that is lower thus affordably both low and high income earners as compared to that offered in competitor’s shops at an average mark price of £2, (Farra and Bell 2006). More so, Starbucks will always increase in market share, profitability and productivity as it provides suitable products because of its business enterprise’s success based on the high quality, reliable products and service leading to fulfilment of the company’s mission, vision and objectives. As a company that seeks to remain competitive in the beverage industry and ensure marketability, Starbucks shifted focus to Chinese buyers, who had been interested in good quality coffee as a norm led to shop extensions all over China. ... Growth Strategy and China - Duration: 7:37. It is therefore essential to use research data collected comes from peer reviewed journals because they are audited before publication, and this improves the reliability of the research. Cooper and Schindler (2003), indicate that positivism research philosophy is suitable as it remains factual based on law about the relationships between different extremes. 2003). For example, the Grande size latte is sold at 30 RMB in China but only $3.95 in the state, and the Starbucks cup sold at 10-14US in us but 18 US in china. Indeed, the objective of this study is to examine critically Starbucks operations in China and the UK based on designing an international marketing strategy by undertaking comparative analysis. (2007) explains the necessity of using an effective method in research methodology as being critical in achieving reliable and authentic findings of the investigation. Starbucks has positioned itself as the premium coffee brand in China. Boston House, As a result, the operations manager’s decision in the choice of an outlet location in the entire UK market was also influence by operations management costs, rent costs, transportation cost, as well as human resource accessibility within the area. Starbucks is considered a success story in China as it was able to convert the traditional tea drinkers of the nation to coffee lovers through its premium offerings. Considerably, the choice of market by Starbucks is based on the suitability of the location, which depends on the favourable nature of the business and strategic location for customers to access products and services. More considerably, promotion uses public relationship campaign as a way to build strong brand as it seeks to influence customer choices from competitor brands through sales promotion strategy. More significantly, it is through the establishment of marketing channel that the company seeks to make its products accessible and available to its consumers in the growing market. Saunders et al. Considerably, Starbucks stands out as a distinct outlet internationally that allows various people in the different market segment to choose freely from the stores broad range of coffee products. Much cheaper & more effective than TES or the Guardian. (2003), describes Starbucks entry into China has one influenced by increasing disposable income leading to viable competitive leads in the intermediate to prolonged term. In January 1999, Starbucks opened its first store in mainland China at the China World Trade Building located in Beijing. Carry out research on Starbucks international marketing entry strategy used both in China and in the UK? Price determines the negotiable value between the seller and buyers against the cost. Add to that a sales tax of 17%. As of May 2016, the world’s … Howard Schultz, CEO of Starbucks, saw China as a primary growth market and had ambitious growth plans at a time when there was worldwide anxiety over the country’s sluggish economy and market turmoil. Offering ‘third-place’ experience.Starbucks stores are effectively positioned as a ‘third place’ away from home and work, where people can spend time in a relaxed and comfortable environment with their friends or alone. Research studies always increases the reliability of the findings and improve authenticity of the research finding thus, the choice of research methodology leads to research limitation. As the leading coffee outlet in the UK, Starbucks enjoys a high level of brand awareness and recognition even for its new coffee brands to suit customer needs. Indeed, Starbucks uses the cost of the products, location, promotion and packaging in targeting the consumers as it increases the company’s capacity and capability process. As a result, proper referencing of the information within the texts will be cited to avoid cases of plagiarism. Furthermore, price is an adjustable component of marketing because it can increase or decreased based on the break even point and quality of product offered. Starbucks Corp. has a unique perspective after having gone through the same thing in China. The customers were willing to pay a higher price for the brand name. In addition, the company has developed a positive effect on its clients by influencing customer choices from its brands as compared to that of other competitors in the industry by use of the sales promotion strategy thus retaining its customers and attracting new customer. Saunders et al. It was mostly depended on the people to spread goodwill through word of mouth than commercial advertisements and media products. More so, Starbucks operates globally through it branches and store that are widely distributed using standardized prices while it offers services that suits its promise of providing high quality and increased value of its coffee products and service through suitable price strategy towards its goods. As a business entity that seeks to continuously attract more customers and grow its market size and profitability, Starbuck Corporation choice of innovation of some of their coffee products in the market to suit its customers needs as compared to their competitors remain essential. As a company, focused on building increased customer satisfaction the operations of Starbucks Coffee outlet internationally seeks to provide great work environment and treat every customer with respect and dignity. $35.80 for a 2-page paper. More significantly, this research seeks to provide a critical explanation on the international marketing strategies used by Starbu… Save my name, email, and website in this browser for the next time I comment. Increased success was achieved through company efforts to introduce coffee drinks faced stiff competition from tea consumption, which is an immediate substitute for coffee. As a result, the company seeks to increase its revenue through adoption of different strategy that makes its brand as premium in the market. As differences in geographic location, culture, tradition and other factors affect market profitability, it is necessary to adjust and adapt diversified strategy in each country. As a result, this paper will discuss the way Starbuck Corporation in China and UK was created and how it changed over time especially with increased competition in a marketing environment based with cultural differences. Starbucks International Marketing Strategy in UK and China, Starbucks Marketing Entry Strategy in China, Starbucks Marketing Entry Strategy in the UK, Telstra Organizational Change Management Analysis, Restaurant Industry Business Challenges in the USA, Common Online Identity Fraud and Theft Crimes, Working Capital Management Research Paper Example, Comparison Between Apple iPhone and RIM Blackberry, Tourism Company Critical Analysis and Recommendations. Considerably, the approach used at Starbuck seeks to reinforce the concepts of control and management of quality, service reliability, and efficient operations in action as its key strategic aspect in operations management. 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