Case Study Of Starbucks In South Africa

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Starbucks is the global leader in the coffee house industry. With it primary market in the US, Starbucks hinges its competitive advantage on the quality of its products and services. In addition to a globally recognized brand, the company has achieved wide-ranging success in spite of the implementation of a premium pricing strategy. Although the company has diversified its coffee brands, specialization in coffee stands as a strength and weakness in the enterprise. However, based on the performance in the market, the marketing, and operational strategies are suited for the various market segments. Entry into South Africa presents a unique challenge to the company owing to the difference in the social, cultural and economic characteristics of …show more content…
Although implicated in the 7Ps of marketing mix indicated in the following figure, the market mix provides a summative depiction of the marketing strategies that Starbucks applies in other locations. Prior to acquisition of strategic partnerships, Starbucks will rely on its corporate distribution channel. Although this will limit the access to customers, it will provide the company with the opportunity to learn the intrinsic characteristics of the market. Consequently, Starbucks will be able to determine the most opportune approach to establishing strategic partnerships with the institutional entities in South …show more content…
In the case of Starbucks S. A, measurement plans will revolve around growth in market share, sustainability and returns to investment. The specific measurement plans shall include the following. First, growth in market share in the country as a measure of competitiveness. As a quantity-oriented metric, market share provides an indication of the competitiveness of a company in comparison with other market players. A growing market share indicates increase in the number of customers and superiority of value propositions. It is also an indication of the viability of business and corporate strategies in the market. Second, revenue-based metrics will provide the financial viability of the venture, depending on time. Revenue measures are important elements of operations since they denote sustainability, suitability in pricing and viability of cost structures. These two approaches rely on quantitative perspectives. Last, measurement plans will focus on qualitative aspect of the presence of Starbucks in S.A. The qualitative aspects depend on the feedback from customers and consumers of the products. The feedback is an integral element in the success of Starbucks elsewhere, and S.A will be no exception. Social media measurement plans will be measured on a monthly basis for the first year, then quarterly thereafter.
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Product Customized coffee

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