Case Study Of Starbucks In Taiwan

769 Words 4 Pages
For Starbucks in Taiwan, they are targeting the high to middle income earners, those who appreciate high quality drinks in a comfortable place. Beside these cliché niches of the market, Starbucks is able to reach out to customers who are environmental-friendly and health conscious.

Firstly, Starbucks provide a wide variety of drinks, ranging from its traditional brew of coffee (includes café latte, vanilla latte, hazelnut latte, caramel macchiato, café mocha, and cappuccino) to specialty Taiwanese Tea (jinxuan oolong, bi luo chun and oriental beauty) and, healthier choices such as low calorie coffee and fruit juices. With drinks beside coffee, it enables Starbucks to attract customers who may not like the taste of coffee and those who are
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An example of their efforts for protecting the people and environment is the Starbucks™ Shared Planet™ and Coffee and Farmer Equity (C.A.F.E.), which can be found from their official Taiwan website. Not only did these practices earn the hearts of the environmental-friendly customers, it also helped to justify the high prices (US$2.95 to US$5.90) of their coffee drinks since protection of the environment comes at a high cost. Therefore, Starbucks in Taiwan is able to target multiple market niches with different preferences for …show more content…
How do Starbucks and City Café position themselves in the market and what do they communicate to their target customers?

Product positioning is the way a product is defined by customers on important attributes such as price and product quality relative to competitive products. Differentiation positioning is used to seek a less competitive and smaller market niche to locate their brands while head-to-head positioning involves direct competition with competitors on similar product attributes in the same target market. Starbucks engages in differentiation positioning while City Café engages in the both types differentiation and head-to-head positioning.

With Starbucks initial entrance into the Taiwanese coffee market, it is engaging in differentiation positioning. Product-wise, Starbucks is selling premium Arabic coffee beans to its customers and this has given Starbucks a competitive edge against the existing Taiwanese coffee retailers who offer lower quality coffee. Moreover, Starbucks is positioned as a premium Western brand in the coffee market. By communicating to its customers about its Western origin, Starbucks managed to attract Taiwanese customers who adore the Western culture and this was what the native Taiwanese café could not compete with. Price-wise, Starbucks continued its high pricing strategy in Taiwan, as with other countries. Due to their high prices, Starbucks is seen as a premium brand compared to others and hence, drinking Starbucks coffee is a portrayal

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