Introduction
Back to 1971, Starbucks’s story began in the Pike Place Market in Seattle (U.S.), as a roaster and retailer of whole bean and ground coffee, tea and spices in a single store. Time to 2015, after 44 years running of their businesses, they totally have 12,235 company-operated stores and 10,808 licensed stores in over 68 countries, which welcome millions of customers through their doors in each day (Starbucks Fiscal 2015 Annual Report). Therefore, it is clear that Starbucks involves a large number of customers from hugely different cultural backgrounds and tastes. Also, apart from huge cultural and habitual differences, operating in 68 different countries means that Starbucks needs to face …show more content…
Secondly, we will examine Starbucks’s marketing strategy by looking at the external environment analysis through Porters Five Forces analysis; then looking at the company analysis (internal factors) and brought together with the external environment analysis to build up a SWOT analysis in order to critically and strategically evaluate their international marketing strategy. Finally, by looking at the marketing mix perspective; we will explore that how Starbucks implemented their international marketing strategy in the real practices and evaluate how Starbucks has entered international …show more content…
Meanwhile, these two appendixes also illustrated the combined use of their targeting and segmentation strategies on different segments, as they stated that their sub-brands: Teavana, Evolution Fresh and Seattle’s Best Coffee etc. are now serving in other segments rather than in their major segments. Also, it indicates that most of their customers in major segments would not give their sub-brands a positive respond or the sub-brands will not generate a huge demand in the major segments. Because, Kotler and Armstrong (2011,78) found that “ a market segment consists of consumers who respond in a similar way to a given set of marketing effort.” However, the targeting strategy would be explained in the next section. Back to the Appendix 1and 2, Starbucks segmented its international markets initially according to what regions they belong to. As Brassington and Pettitt (2013) pointed out, geographic segmentation is particularly useful in retail or service sector; because “operating on limited resources may look firstly for custom within its immediate locale, even for multinationals.” Also, they further explained that there are two major benefits for this type of segmentation. Initially, “ in order to create a manageable organizational structure in a world range”; and secondly, “ in recognition that on a global scale, geographic