international marketing- starbucks

8/17/2019 International Marketing- Starbucks

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UNIVERSIDAD INTERNACIONAL DEL ECUADOR

FACULTAD DE CIENCIAS ADMINISTRATIVAS

DIEGO ROSERO

29/04/2016

Marketin E!trat"i#$

Star%k!

1'( E)*+ain t,e interre+ati$n %et-een .r$t/Market an t,e tie rae

Product

Starbucks tried to position themselves in the coffee industry as a premium product

through creating a high standard, providing an excellent service and introducing

innovative products. Schultz knew that his coffee was perishable making them so

fanatical about quality control, and thus they monitored each and every coffee production step very carefully. They purchased darkroast, whole bean coffee from

!enya, Sumatra, "thiopia, #osta $ica and "thiopia. They roasted coffee in their own

plants and later sold it through companyowned stores. They applied Total %uality

&anagement 'T%&( that all company)s people are constantly involved in improving the

products) quality.

*se of introduction of +rappuccino and nonfat milk made a significance presence in theStarbucks) balance sheet. &oreover, they gave seasonal offerings, such as cream

+rappuccino and strawberry in the summer and gingerbread latte was introduced during

#hristmas. radually, food items such as pastries, cookies, salads and sandwiches made

their way into the stores. They later developed new products with other companies,

which show how cautious they were in maintaining their premium quality image and

keep their standards high.


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Place

Place is where the service will be received by customers. Since services production is

inseparable from its consumption, it becomes even more important for service

companies to make a decision where the service will be located as part of strategic

marketing planning process. -ecision on place for service providers includes finding of

suitable location, with regard to its accessibility, availability, as well as decision on

distribution channels and distribution coverage.

-istribution decisions for services companies include choice of physical location and

intermediaries to provide the service. ccessibility can be referred to as relative ease of

acquiring the service for customer. vailability for consumers means that the services

are on hand when consumers want to receive them. /n international business, the aim of

selecting future distribution channels is building effective international supply channels

and logistics. The process of building supply channels requires to identify and to select

distributors that company wants to use, and then building relations, establishing

contracts and further cooperation with them. /nternational logistics

%uantitative &arket Segmentation

There are four types of qualitative and quantitative market segmentation tools used to

determine the factors affecting buying decisions when identifying target markets0

demographic, psychographic, geographic and behavioral influences. -emographic and

geographic factors such as age, location, family income, occupation, education

attainment and ethnicity help to identify market segments. 1bservable influences help in

making inferences about social, lifestyle and cultural influences that drive consumer

behavior.


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%ualitative &arket Segmentation

2ehavioral and psychographic influences are qualitative, emotional factors explaining

why target markets behaves as it does. Psychographic influences include attitudes,

beliefs, personality, opinions, values, selfimage and interests. 2ehavioral influences

relate to the customer)s relationship with brands in terms of experience, knowledge,

perceptions and usage. These include perceived brand benefits, brand attributes, usage

rates, brand loyalty and usage occasions. They are essential in terms of assessing

cognitive levels versus intuitive involvement in buying deliberations.

2'( E)*+ain t,e *r$t *enetrati$n *r$#e!! an t,e e)i!tin arket! an ne-

arket!

#ompany)s international marketing strategy should be built focusing on taking the

advantages of different markets and, on the other hand, should help company to meet

new global consumers) demands. /nternational competition also forces companies to

enter new markets in a short period of time. -uring company)s internationalization

stage, strategic decisions should be made regarding three key dimensions of

international market entry strategy0 standardization3adaptation,

configuration3coordination and strategic integration.

The first dimension standardization or adaption refers to uniformity of company)s

activities across markets. &anagement of the international company has to choose

whether and to which range to standardize or to adapt the core of its product or service,

pricing policy, marketing communication and distribution channels in order to win

consumers across borders. Second dimension, configuration or coordination, describeshow companies organize their activities through all their valueadding chain, from

downstream to upstream activities.

vailable options are to disperse activities across borders and to concentrate value

adding activities within certain country or region. /n case of particular company, both

approaches will have advantages and disadvantages, as well as will affect the design of

valueadding chain and, consequently, organization of marketing activities. nd the

third dimension, called strategic integration, refers to how international companies


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respond to crossboarders competition. +or a company)s success it may be crucialto be

present in all ma4or markets of the world in order to enhance its competitive advantage

and to multiply the effect of performed marketing campaigns. +urther decision should

be made regarding the mode of entry that company will exploit in order to enter the

market. -ifferent types of modes of market entry can be divided into three broad

groups0 export, nonequitybased cooperation and foreign capital investments. The

decision regarding mode of entry is influenced by the amount of resources that company

has and wants to spend on acquiring new market, various risks it is facing in foreign

environment, available infrastructure in targeted country and the core business of the

company. The first group, export modes, includes nonintensive forms of investment

that

international marketing- starbucks

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