Oct 162012

It is quite amazing that such a large and well-known coffee company did not notice the world’s top coffee consumers. The Nordic Region consumes more coffee than Germany, Italy, France, Spain, the U.S, Japan and the U.K. combined. In total, the amount of coffee consumed by Nordic citizens was 85.2 pounds in 2010: that’s a lot of coffee that Starbucks has overlooked. The long, dark, cold nights of winter are the building blocks of the coffee culture that is religiously held in the Nordic Region. These coffee-loving nations even have annual conventions in which coffee shops exchange recipes and baristas compete in contests.

But can this new global market pay the price for Starbucks’s coffee? Nordic countries boast some of the strongest economies in the world, and they have a healthy appetite for American products, which can be assumed that they can pay for the pricey grande macchiatos that Starbucks sells. Starbucks also stands out because the company prides itself on delivering fair-trade coffee to its customers, along with other sustainable practices within the company. These sustainable practices could be positive attributes to the potential Starbucks consumers in the Nordic nations, because the Nordics applaud ethical business practices. These qualities illustrate that Starbucks has a high chance of succeeding in the Nordic Region.

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Apr 302012

Starbucks, along with many other US  companies, think that China is a pretty hot market, as explained in a recent Wall Street Journal article. Starbucks pursued a market development strategy by “invading” China as early as in 1999. The first Starbucks store located in mainland China opened in Beijing in January 1999 through a licensing agreement. Since then, the interest in and appreciation of high-quality arabica coffee, personalized handcrafted beverages and the unique Starbucks experience offered in China has grown rapidly among Chinese consumers. The article mentions that Starbucks currently has about 10,000 employees working in more than 500 stores in China and will continue to accelerate the new store build up and go from 500 stores today to over 1,500 by 2015. To facilitate the strategy, the company plans to triple the size of its work force and network of shops in China over the next three years. Additionally, the article mentions that Starbucks recently raised coffee-drink prices in China to offset higher costs. While the increases add to prices that are already higher than what similar coffee drinkers pay in the U.S., they haven’t deterred customers. And despite the rapid expansion, there is still room to grow.

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Mar 022010

This is a blog entry written by Francesco Wesel, a graduate IMC student, in his blog Brand New Times:

Picture 2.pngStarbucks uses the catch phrase “third place” to promote the ambiance of their stores, indicating that “there is home, there is work, and there is Starbucks.” There are two Starbucks coffee shops around Emerson College in the center of Boston. Recently a friend of mine suggested to drink coffee together at a new local coffeehouse around the corner, Boston Common Coffee Co., which is supposed to be much cozier than anything around. What happened to Starbucks? Aren’t they supposed to be the “third place,” everybody’s favorite hang-out? Well, at least in this area the answer would be a clear “no.” Many Starbucks stores have become fast-paced, to-go places, not any different from the Dunkin’ Donuts from across the street, with doors opening every other second and baristas becoming stressed out in rush hours.

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May 042009

IMC-Reading-Room.gifStarbucks is responding to recent economic hardships by creating an integrated marketing campaign. With people cutting back on their daily luxuries, Starbucks hopes to get back their coffee customers with a new caring campaign.
Starbucks Fights Back With Major Campaign
by Karlene Lukovitz, Friday, May 1, 2009
Starbucks has launched an integrated marketing campaign to counter the coffee competition from McDonald’s and Dunkin’ Donuts and their claims that Starbucks’ brews are overpriced.

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