Case Study Of Starbucks In Taiwan

Improved Essays
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
…show more content…
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

Related Documents

  • Improved Essays

    The established customers were purchasing a cup of coffee for the uplifting service experience and upscale atmosphere, but now Starbucks was not much different. In the mind of the consumers, Starbucks became a place which was widely available, with good coffee and consistent…

    • 994 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Starbucks Coffee facing competitors as other brands but as they are able to provide unique taste to their customer where the satisfaction levels of customer are high with Starbucks. ➢ Large number of companies. ➢ Low switching cost. ➢ Variety of partnerships. The company is facing a large number of competitors which different size, specialties and strategies For example Starbucks faces the competitive force of McDonald’s, Costa coffee, Burger King, Café Nero, M c cafe and Dunkin Donuts, as well as other specially coffee companies the strong force of competition is also due to the low switching cost means that it is easy for customer to shift from Starbucks to other brands available on the market.…

    • 751 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    As we know that nowadays the tea culture in China still growing deeper in Chinese’s minds when compare to coffee culture. Although Starbuck has become a famous brand in China, but the influence of coffee culture still consider low. For example, most of the Chinese in China like to seek a certain kind of experience in coffee shop but coffee-drinking is not their habit, it doesn’t have the pervasive coffee culture in western countries. So this University of Coffee in Beijing will give Chinese a new experience to know the nature of coffee culture, sharing the passion for excellence promoting the awareness of quality. And the latest coffee research will be also promoted by them.…

    • 1373 Words
    • 6 Pages
    Decent Essays
  • Decent Essays

    Introduction Trung Nguyen Coffee, introduced to the market in 1996. In today, Trung Nguyen Coffee has become the household name in Vietnam. Not only the leading coffee brand in Vietnam coffee industry, Trung Nguyen Coffee also expanded in many other countries in Asia Pacific as well as Western coffee markets. 1 what are the roles and benefits of branding for sellers and buyers in the coffee market? Roles of branding Brand is a logo or a name, sometimes can be a tagline that used by the organizations to differential their products or services from other competitors in the market.…

    • 987 Words
    • 4 Pages
    Decent Essays
  • Improved Essays

    When entering the global market, there are few important factors that Starbucks has to concentrate in order to increase their sales. Those factors include quality of the product, taste and preferences of the consumers. Therefore Starbucks has customized their products according to the preferences of the customers all over the world. Their main overseas business stations are Japan, Italy, Germany and Spain. Starbucks has been able to keep their brand name in top ranks in terms of customer satisfaction by providing a standard service while fulfilling customer preferences When it comes to price, Starbucks can decide whether to increase or decrease the price of their products in other countries depending on the external circumstances.…

    • 834 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Starbucks has taken people away from the everyday hustle and bustle. Just as Starbucks connects with their customers, they value their employees, society and environment as well. Starbuck does this by sharing its economic success by supporting educational, health, and social service projects. The most important Starbucks contribution is to its coffee growers. Starbucks has the money to pay its coffee farmers, who in turns can uses traditional methods of farming, which helps preserve tropical forest.…

    • 1019 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Juan Valdez Coffee can make a huge impact in the market since consumers require high quality and varieties when it comes to coffee. The focus on the welfare of Colombian coffee growers and country of origin branding strategy it is evident that Juan Valdez cafe has created an impact amongst the consumers mind. And with the right quality of products they are ensuring their stand amongst heavy…

    • 1126 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Coffee In Japan Case Study

    • 1818 Words
    • 8 Pages

    Therefore, the market for coffee products like coffee bags, canned coffee are full of potential and opportunities for coffee producing companies (both domestic and foreign firms) to target. Brief overviews of some biggest producers and suppliers in Japan will be provided below. 1. Nestle Japan Nestle Japan holds the leading position in supply of coffee in Japan with a retail value share of 34% in 2015 (Euromonitor, 2016). High sales amount of instant (soluble) coffee, together with the increasing popularity of product branches like Dolce Gusto, Nespresso, and Barista contributed to the continuous success of Nestle Japan.…

    • 1818 Words
    • 8 Pages
    Superior Essays
  • Improved Essays

    c) Consumers enjoy moderate sensitivity in high-end coffee retail sales because they pay premiums for higher quality products, but pay attention to product quality is too high. 4.4 Bargaining Power Of The Suppliers (low to moderate) Starbucks suppliers have a strong bargaining power. This is because the world's interest in coffee is high. At the same time, concentrated coffee beans are also transported from a variety of specific terrain areas. Important associations with major suppliers will also give you a better view of each other (Booth, 2014).…

    • 789 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Starbucks Research Paper

    • 1847 Words
    • 8 Pages

    This gave Starbucks full control and used better experienced expatriates to better implement their strategies. Afolabi, (n.d) explains starbucks international (which is their international division) is comprised of mostly partnerships as oppose to subsidiaries with Japan and asia as their main targets. They choose these markets as they resembled their aims, had multiple market networks and valuable expertise. Some coffee bars have been localized in order to better fit the consumer and have resulted in store differentiation within a single…

    • 1847 Words
    • 8 Pages
    Improved Essays