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. Hire a subject expert to help you with Entry Strategy for Starbucks in China. After Howard Schultz took over the reins of the company, Starbucks experienced exponential growth expanding all over the US and also spreading to international markets like Japan, Europe and China. The case is about Starbucks' pricing strategy in China under which the company charged higher prices for its products than in Western countries. The company currently have locations in 90 Chinese cities and employ over 25,000 people in China. Plog (2005) explains how Starbucks in China has levelled the tea and coffee drinking culture by increasing the number of coffee drinkers and using the company’s worldwide branding, despite the critics’ assumptions of the company’s collapsing after its introduction into the market. Starbucks incorporates another localize strategy in every country they go, by modifying the name of Starbucks to suit the local language, like in China they Changed the name to ‘Xing Bake’ where ‘Xing’ represents ‘Star’ and ‘Bake’ was pronounced as ‘bucks’. As Starbucks struggled with its entry into China it focused on attracting more customers as it offer increased outstanding roast of high quality whole coffee beans that was highly recommended by its consumers. The answer may come as something of a surprise! Figure 4.3: Marketing Mix Quantified of Starbucks in the UK (Author 2014). 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. To compare the marketing entry strategy that gives competitive advantage to Starbucks over its competitors in China and in the UK. Certainly, Starbucks choice of location remains an essential factor just as other entities in the food and beverage industry as exhibited in the Chinese and UK market thus influencing consumer choice of specific coffee shop. 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. More so, Starbucks Association meet community needs through promotion across China through coffee ground environment program, construction of school buildings and participating in beach cleaning. Starbucks Pricing Strategy - Introduction The pricing strategy of Starbucks has become dynamic in the recent years as it attempted to adjust its pricing to meet changes in the cost of raw materials as well as shifts in the purchasing power of the market during the … Even as, the management decided to maintain its standardised coffee blends as it faced competition from Costa coffee as it introduced other flavours than the Americanised coffee drinks (Witkowski 2005). In this blog entry we explain in more detail Starbucks growth strategy in China. Describe Starbucks use of international marketing strategies to gain competitive advantage in the new markets? In January 1999, Starbucks opened its first store in mainland China at the China World Trade Building located in Beijing. In most cases, it is necessary for business to consider the selection of their location to ensure that it is easily accessible to its customers. Starbucks stock slipped earlier this week despite a strong earnings report as the company said more than half of its stores in China were closed and that the closures would have a … 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. Starbucks pricing strategy can be described as a hybrid of premium pricing, geographical pricing, psychological pricing strategies. China is currently the second largest market for Starbucks outside of the U.S. As a remarkable company, Starbucks Coffee Company has grown into a global brand since its founding in 1970 in Seattle, the United States, concentrating on increasing customer satisfaction by treating each customer with respect and dignity. 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. Notably, there is establishment of over 570 business stores, in different cities within China depict Starbucks use of most successful market access approaches it has ever applied. Kotler (2000), explains how marketing mix ensures use of product, price, promotion and price as marketing tools to engage target consumers ensures successful market growth. 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. In 1970s, the first Starbucks coffee shop opened. As a result, Starbucks remains highly considered as an entity that focus on its niche market based on the values of quality and purchasing behaviour. “Starbucks Entry to China” Starbucks modified its menu and tried to localize its brand name by selling some food items. Considerably, use of multi-method research strategy focuses on use of different strategies in the research ranging from, case study and secondary research. As a result, Starbucks management and staff portray very strict principles of service delivery and quality management has flexibility to suit customer satisfaction because it allows for the customer to receive full satisfaction. Ho: No changes with the international marketing strategies used by Starbuck Corporation internationally. Starbucks’ pricing strategy in China, which the company estimates will be its second-biggest market after the United States by 2014, is tied to local business costs such as labour and commodity costs, infrastructure investment, currency and real estate, the company said in a statement emailed to Reuters. 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. To literally investigate Starbucks international marketing entry strategy used both in China and in the UK. 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. West Yorkshire, 2003). More significantly, this research seeks to provide a critical explanation on the international marketing strategies used by Starbu… More significantly, existence of French and Italian coffee markets made it essential for suitable location it is through Starbucks Corporation marketing channel in the UK that its products in the conveniently located stores remained accessible and available to its consumers in the UK market (Giddens 2002). As an analysis, this study is qualitative in society. Considerably, the choice of market location depends on the nature of the business based on proximity and strategic location for customers to access products and services. They added that each Starbucks market is unique and has different operating costs and that it would be inaccurate to draw conclusions about one market based on the prices in a different market. Starbucks responded that its pricing strategy was based on local market costs, including infrastructure investment, real estate and labour costs. Ho: No impact can be learnt from model of Starbucks ideas in its expansion globally in China and UK. Starbucks has positioned itself as the premium coffee brand in China. Additionally, research shows the inductive approach is mostly used in exploratory studies, because it provides more understanding of a successful marketing mix used by Starbucks in the UK and Chinese markets. 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. More remarkably, the increased levels of establishing a strong brand loyalty allows for the company to sustain competitive advantages as compared to its competitors and give them the market opportunity to charge a premium price for its coffee products to their clients. Hire verified expert. Indeed, Starbucks expansion in the UK ensured that the global brand remain competitive in the beverage industry as, Starbuck’s management always continuously seek to provide high quality products with increased provision of affordable cost, timely delivery and flexibility amongst its competitors. As a result, the entire research will focus on marketing strategies thus allowing for consequent conclusions based on the research questions. 2007). Indeed, market expansion of Starbucks in China and the UK is a great opportunity to learn how embracing cultural diversity leads to increased success and expansion. 1, Issue 2, PP. As a company that seeks to establish strong international market, Starbucks entry into UK uses a pricing strategy that makes its products affordable for its consumers ranging from high level income and low level income earners. More so, Starbucks market strategies seek to attract an increased number of customers considering that it targets those from both the wealthy elite high class customers and middle class consumers. The company’s strategy to enter the UK market can be described as one that provide latest trends in the coffee market to meet changing needs and demands of their consumers through Starbucks adopted marketing mix in the UK. During the company entry into the UK market, the market was highly potential as Britons prefer coffee contrary to alcoholic drink thus, Starbucks gave a suitable substitute to the market (MacDonald 2007). 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