Starbucks Going Global Case Study (Answer)

In: Business and Management

Submitted By chongpg94
Words 1169
Pages 5
Case Study : Starbucks- Going Global Fast.
Question 1
Identify the controllable and uncontrollable elements that Starbucks has encountered in entering global markets.

Answer: Starbucks have encountered various controllable elements while going global. Controllable elements in marketing is the 4Ps – Product, Pricing, Promotion and Place. Starbucks have localised product for different regions where Starbucks have expand its business to. Localised product means products are created to suit the taste and culture of a particular country or region. Example in the case study, Starbucks developed espresso and latte which is less sweet than US counterparts to match with Asian taste. Starbucks in Asian region also serves green tea latte to suit Asian habits of drinking tea, especially green tea.

The next controllable element Starbucks encountered is the pricing factor. Since Starbucks is going global, Starbucks have to have a good pricing strategy to suit every market. Pricing strategy can be in various forms like bundle pricing or discounts and rebates. Pricing also determine the target customer of the business. Starbucks in this case does not compromise on the price. Starbucks are adopting high end pricing rather than competitive pricing. Starbucks is confident that the coffee they serve will certainly worth the price customers pay for. Therefore Starbucks never lower the price as doing so will reduce its brand value. Instead Starbucks continue with the same price and serve superior quality coffee to people that values Starbucks.

Promotion is a controllable factor to Starbucks. Promotion includes advertising and media selection and positioning. Promotion should not just focusing on the product, instead should be focus on the branding. This is because a particular product can have many sellers. Therefore it is the branding and positioning that differentiates…...

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