Starbuck

Topics: Coffee, Starbucks, Espresso Pages: 23 (6405 words) Published: October 6, 2011
GROUP ASSIGNMENT CASE STUDY: STARBUCKS ENTRY INTO CHINA

TEAM MEMBERS: ANURAGINI MONAGRAN NEDA MOTTAGHI GOLSHAN NIK MOHD FAIZ B. NIK MOHAMED AMIN ALEYZAR BT. AZMI AIRIN NIZA BINTI ZA'BA MR091179 MR091241 MR091271 MR091185 MR091200

PROF. ABDUL HAMID MOHAMED MARKETING MANAGEMENT MRC 2023 SEM II 2009/10

INTERNATIONAL BUSINESS SCHOOL UNIVERSITI TEKNOLOGI MALAYSIA

STARBUCKS ENTRY INTO CHINA

Table of Contents: 1. 2. 3. Introduction Executive Summary Situational Analysis 3-1. External Environmental Analysis 2 2 3 3

3-1.1. General Environmental Analysis (Economic, Social, Political, Technological) 3-1.2. Industry Analysis (Economic, Social, Political, Technological) 3-1.3. Market Analysis 3-2. Internal Environmental Analysis 3-2.1. 3-2.2. 3-2.3. Evaluation of the Mission Evaluation of the Objectives Evaluation of the Functional Areas I. II. III. IV. 3-2.4. Marketing Finance Production Human resources 5

Evaluation of Marketing Strategies I. II. III. IV. V. Target Market Product Strategies Pricing Strategies Distribution Strategies Promotional Strategies a. b. c. d. Advertising Strategies Selling strategies Public relations Sales Promotion strategies 11 14 14 16 17 17

3-3. SWOT Analysis 4. 5. 6. 7. 8. Identification of the problem Development and Evaluation of Strategic Alternatives Recommendations & Implementations Conclusion References

JANUARY 2010

| Pa g e

STARBUCKS ENTRY INTO CHINA

1. INTRODUCTION Starbucks Coffee International, a subsidiary of Starbucks Coffee Company, recently celebrated its first step into southern China by opening a new store in the country, the first one in Shenzhen. The store is owned by Coffee Concepts, a joint venture between Starbucks and Hong Kong s Maxim Group, who together opened 32 Starbucks in Hong Kong between 2000 and 2002. Starbucks success in Asia has surprised many people. But the executives at Starbucks have been surprising critics for many years. How did a small coffee company from Seattle with 11 stores in 1987 grow into an international company with nearly 16,000 stores worldwide? In this report we will first study the Situational analysis, and exploring more about China as Starbuck s new market, and discussing the industrial and market factors. China, as third largest growing economy in the world, is considered as a tea drinker country. Tea, the classic Chinese beverage, represents more than 40% of total market volume. Next we will focus on the Starbucks Internal Environment, and its strategies to become one the most known coffee companies in the world. On the second part by having the Situational analysis, we will focus on the Strengths and weaknesses of Starbucks and discussing about the opportunities and threats that Starbucks deals with them. Finally we will discuss the strategic alternatives for Starbucks and elaborating more on them, which will bring us to the recommendations for Starbucks and briefly discussing the implementations. 2. EXECUTIVE SUMMARY Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment -- primarily through its company-operated retail stores. In addition to sales through our company-operated retail stores, Starbucks sells whole bean coffees through a specialty sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line of premium ice creams through its joint venture partnerships and offers a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company. The Company's objective is to establish Starbucks as the most recognized and respected brand in the world. Starbucks Coffee Company was founded in 1971, opening its first store in Seattle s Pike Place Market. Starbucks, named after the first mate in Herman Melville s Moby Dick, is the world s leading retailer, roaster and...

References: CHINESE BEVERAGE MARKET (2003
2007)
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