2006). Indeed, Starbucks remain as one of largest and most recognized coffee industry in the global scale because of its efficient expansion and management approach, specifically in their market mix to suit the locations. Notably, there is establishment of over 570 business stores, in different cities within China depict Starbucks use of most successful market access approaches it has ever applied. More significantly, this study wants to emphasize the strategic thinking about all the factors involved in applying and analyzing the increasingly enthusiastically satisfied customers served by Starbuck’s management unlike its competitors in the international market. Noticeably, the choice of market location by Starbucks in the UK depended heavily on the high degree of management control based on the nature of the business as it determines the most critical aspects for business enterprise success in highly competitive market based proximity and strategic location for customers to access products and services. As a result, proper referencing of the information within the texts will be cited to avoid cases of plagiarism. Nevertheless, the establishment of clear distribution channels with more efficient and effective order processing time limit ensures that the Corporation achieves increased level of customer satisfaction because Starbucks gain easy access through its coffee shops within different locations. More significantly, location decisions in China remain closely tied to expansion to the Southern and Northern areas based on organization’s strategies, especially the increased convenience to attract market share, based on the increased levels of capacity and flexibility, operating costs, revenues, operations, competitive advantage, and importance to supply chains (Fackler et al. Starbucks pricing strategy can be described as a hybrid of premium pricing, geographical pricing, psychological pricing strategies. More so, analysis of Starbucks management in China shows adoption of market mix strategies focused to reduce cost and increase customer accessibility in different locations. As a result, Starbucks Coffee globally has been able to competitively stay as a preferable brand in business catering specifically to middle-class to high class consumers in UK. More significantly, the use of semi structured research methods in carrying out this research would be feasible as compared to other research methods in analysing of the international marketing strategy of Starbucks in China and in the UK. H1: There are expected changes with Starbucks competition in its expansion globally in China and UK. More so, the organization’s strategies have seen Starbucks Corporation expand to the Far East and United Kingdom being the key business driver as it established a foothold in China. More so, distribution channels influence placement of products through retailers wholesalers, as the end consumers access the goods easily. Considerably, Starbucks stands out as a distinct outlet internationally that allows various people in the different market segment to choose freely from the stores broad range of coffee products. More significantly, case study research methodology give a high degree of depth of research as it is conducted on feasibility of focused data analysis of the research. Loading... Unsubscribe from Linyan Wu? Notably, there are peer reviewed journals that focus on Starbucks expansion market strategy in China and UK, which has led to the creation of competitive advantage. (2003), describes Starbucks entry into China has one influenced by increasing disposable income leading to viable competitive leads in the intermediate to prolonged term. Considerably, the increased selection based on the right approaches in making decisions based on choice of suitable markets have made Starbuck Corporation one of the most recognised and respected brand in the world. Considerably, Starbucks marketing efforts, increased customer satisfaction in the Chinese market and made consumers choose Starbucks as the coffee outlet of their choice. Some brands, such as Starbucks can charge a premium price because their entire brand image is based around luxury.Starbucks sets its prices on a simple idea: high value … As a company that seeks to establish a strong regional market, research on Starbucks Corporation is based on its consumers ranging from high level income and low level income earners. It also added that its Asia-Pacific profit margin was for 14 countries, not just China. With the analysis of Starbucks entry into UK we can conclude that Starbucks has used top-notch standardisation of the marketing mix in order to achieve increased market expansion. Starbucks Coffee Outlet, which focused on building its market share, competitiveness and efficiency, started in the 1970s as a single shop offering high-quality coffee and brewing goods. As differences in geographic location, culture, tradition and other factors affect market profitability, it is necessary to adjust and adapt diversified strategy in each country. More significantly, Starbucks Company priced its blended speciality coffee at an affordable price that is lower thus affordably both low and high income earners as compared to that offered in competitor’s shops at an average mark price of £2, (Farra and Bell 2006). Their knowledge, organized way of business left a good impression on customers’ mind. Carry out research on Starbucks international marketing entry strategy used both in China and in the UK? Starbuck‟s Store sales International Journal of Business, Economics and Management Works Vol. Plog (2005) explains how Starbucks in China has levelled the tea and coffee drinking culture by increasing the number of coffee drinkers and using the company’s worldwide branding, despite the critics’ assumptions of the company’s collapsing after its introduction into the market. For example, the Grande size latte is sold at 30 RMB in China but only $3.95 in the state, and the Starbucks cup sold at 10-14US in us but 18 US in china. Considerably, use of secondary research, remain viable in this research as it gives valuable information in the marketing strategies used by Starbucks. This research paper aims to provide a basis for the effect of Starbuck Corporation’s international marketing policy in its global expansion into China and the UK by looking at market share, competitiveness and productivity-based management strategies. Figure 4.2: Rossiter and Percy grid – Starbucks (Kotler 2009). Starbucks marketing strategy in China was based on customization in response to diverse Chinese consumer target segmentation. The establishment of a unique product as Starbucks expanded its operation into the UK was essential even as it maintained its main product which is premium blended coffee. It is usually used to boost profits in areas where the customer is happy to pay more. This is because, the choice of the coffee outlet by the customers is based on the variety of coffee offered, the experience gained in the stores and the employees who give the customers exceptional services. Kotler (2000) describes place as the final location of the goods to the end consumer. As a remarkable company, Starbucks Coffee Company has grown into a global brand since its founding in 1970 in Seattle, the United States, concentrating on increasing customer satisfaction by treating each customer with respect and dignity. More so, Starbucks operates globally through it branches and store that are widely distributed using standardized prices while it offers services that suits its promise of providing high quality and increased value of its coffee products and service through suitable price strategy towards its goods. Considerably, the inductive approach is suitable because it involves development of theories by increasing understanding of a particular topic. More so, Starbucks Association meet community needs through promotion across China through coffee ground environment program, construction of school buildings and participating in beach cleaning. Cooper and Schindler (2003), indicate that positivism research philosophy is suitable as it remains factual based on law about the relationships between different extremes. More than often, use of promotional strategy ensures attraction of new customers and maintenance of the continued customers especially as Starbucks seeks to be service-scape offering experience and quality service. Uniquely, Starbucks as a business entity seeks to attract more customers as it provides the community an opportunity to share in the coffee drinking experience and variety of choices in services at its stores. They also changed their marketing and pricing strategies based on the needs of the Chinese market. However, Starbucks Coffee Outlet has grown to be the largest international roaster with more than 19,000 outlets, as it offers a high standard of excellence in all areas of buying, fresh coffee distribution and roasting, as it provides improved customer satisfaction. Despite increased criticism in 1999 during Starbucks entry embracing of strategies to handle cultural and structural issues lead to fulfilment of the company’s mission, vision and objectives. Promotion through advertisement introduces brand awareness and induces consumers as a way of retaining its customers and attracting new customer (Kotler, 2000). In this blog entry we explain in more detail Starbucks growth strategy in China. Indeed, market expansion of Starbucks in China and the UK is a great opportunity to learn how embracing cultural diversity leads to increased success and expansion. As a result, the company seeks to increase its revenue through adoption of different strategy that makes its brand as premium in the market. For the purpose of achieving qualitative analysis of internalisation and market entry strategy, the research on Starbucks expansion to China and UK has used the case study methodology. As a result, Starbucks focus has been moving from being a profit-making business as it engages in corporate social responsibility within China in corporation projects in the country and district parts. In addition, qualitative secondary research study remains favourable in the collection of quantifiable data than quantitative comparative analysis of the research as it gives more in depth information (Saunders et al., 2007). More significantly, Starbucks penetration to Chinese market seeks to establish increased market presence through increased customer awareness as, the company carries out advertisement of its product in its diverse target market to increase its market presence. As a result, the operations manager’s decision in the choice of an outlet location in the entire UK market was also influence by operations management costs, rent costs, transportation cost, as well as human resource accessibility within the area. Figure 1.5: Number of Starbucks stores in the United Kingdom from 2005 to 2013 (The Statistics Portal 2013). $35.80 for a 2-page paper. Starbucks began to offer $1 bottomless 8 oz. As of May 2016, the world’s … 2007). Starbucks charges 27 yuan ($4.42) for a Grande Latte (16 ounces) in China but the price for it in the US is about $3 including consumption tax, Shanghai-based China Business News reported Monday. Starbucks business strategy is based on the following four pillars: 1. (2007) defines case study methodology as one suitable such research study as it gives an in-depth understanding of Starbucks international market entry strategy. Starbucks created extensive consumer taste profile analyses that are sufficiently agile to enable them to change with the market and to create an attractive East meets West product mix. As a research study, which seeks to be rational on seeking an independent opinion on the international marketing strategies used by Starbucks, the research methodology and procedure should remain unbiased. Starbucks is known for its premium service and premium products. Notably, in 1998 market entry of Starbucks showed increased accomplishments in the European market which lead to take over of 65 Seattle Coffee Company shops in the UK. With increased strong link with the local coffee production, effective management within Starbucks lead to the expansion of the company operations to the rest of the Europe as it found market location effectively and efficiently without depending on the consultancy of local third party assistance. In addition, the company has developed a positive effect on its clients by influencing customer choices from its brands as compared to that of other competitors in the industry by use of the sales promotion strategy thus retaining its customers and attracting new customer. Starbucks stock slipped earlier this week despite a strong earnings report as the company said more than half of its stores in China were closed and that the closures would have a … Considerably, Starbucks management decision to locate in high footfall and high visibility regions in China’s major cities is based on customer accessibility, rent costs, transportation cost, as well as human resource accessibility within the area. More significantly, combination of localisation of Chinese national characteristics and the U.S corporations provides suitable products because Starbucks business enterprise’s success is based on the high quality, reliable products and service. Starbucks has come a long way since it established its first store in China in January 1999. 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