Case Starbucks.docVIP

Market Research Case Study - Starbucks Entry into China The Fine Art of Market Entry - Coffee for Tea-Drinking China Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. Market research is at the core of many of the?market entry strategies?Starbucks is employing. This case study will consider how market research has strengthened Starbucks entry into the Chinese markets. Starbucks articulated an entry strategy that would address the dominant Chinese markets and that was designed to be as inoffensive with respect to the Chinese culture as possible. Instead of taking the?conventional approach with advertising and promotions?- which could have been seen by potential Chinese consumers as attacking their culture of drinking tea-they positioned stores in high-traffic and high visibility locations. Moreover, Starbucks very deliberately began to bridge the gap between?the tea drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local tea-based ingredients. Market research supported the development of Starbucks competitive internationalization strategy. The overarching competitive strategy was to create an aspirational brand. Prospective Starbucks customers in China could look forward to what Starbucks refers to as?The Third Place?experience. The Starbucks experience?conveys status that is highly appealing to those aspiring to Western standards or to climbing the ladder in their own culture. Market research indicates that brand consistency is important to Starbucks customers. When Starbucks opens a new store in an emerging market like China,?the best baristas?are sent for the launch and to conduct training of the baristas who will carry on when once the launch has completed. Market Research Addresses the Emerging Market Political Environment Market research helped to identify the attributes of capitalism in the?Peoples Republic of C