Market Research Case Study – Starbucks’ Entry into China
Market research is a key part of developing your marketing strategy. It’s about collecting information to give you an insight into your customers’ mind so that you understand what they want, how they gather information and where they come from. You can also do market research to get a better idea of market trends and what is happening in your industry sector.
Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. Market research is at the core of many of the market entry strategies Starbucks is employing. This case study will consider how market research has strengthened Starbucks entry into the Chinese markets.
Case Study about Motivation and Teamwork: Starbucks Corporation
Because of rapid globalization over recent years, competition around the world becomes more intense, especially for the service industry with similar products. The most critical point for business to achievesuccess is not only the quality of products they supply, but the atmosphere of cooperating and the amount yielded from teamwork in retail sales. Therefore, it turns out to be essential for companies to motivate, reward and train their employees to be the best quality personnel. Starbucks Corporation, the most famous chain of retail coffee shops in the world, mainly benefits from roasting and selling special coffee beans, and other various kinds of coffee or tea drinks. It owns about 4000 branches in the whole world.
Moreover, it has been one of the most rapid growing corporations in America as well. The reasons why Starbucks is popular worldwide are not only the quality of coffee, but also its customer service and cosy environment. Starbucks establishes comfortable surroundings for people to socialize with a fair price, which attracts all ages of consumers to come into the stores. Besides, it is also noted for its employee satisfaction. The turnover rate of employees at Starbucks was 65% and the rate of managers was 25% a year However, the rates of other national chain retailers are 150% to 400% and 50% respectively. Compared with them, the turnover rate of Starbucks is much lower than other industries on average. As a result, Starbucks is one of the optimal business models for strategies of employee motivation, customer satisfaction and cooperation of teamwork.
Introduction: Starbucks is a dominant multinational coffeehouse chain based in the United States. Starbucks is the largest coffeehouse company in the world,with 7,521 company-owned and 5,647 licensed stores in 40 countries,making a total of 13,168 stores worldwide. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks,snacks and items such as mugs and coffee beans. Read more..
Tully’s Coffee is a specialty coffee retailer and wholesaler based in Seattle, Washington, United States. Its stores serve specialty coffees, espresso, baked goods, pastries, and coffee-related supplies. It also has overseas licensing agreements in Japan and South Korea where its brand name is used for Tully’s coffee houses in those countries.Establish awareness of Tully’s blended drinks,especially in the shadow of Starbucks’ Frappuccino. Clcik here for more information on Tully’s Coffee
In 1971, English teacher Jerry Baldwin, History teacher Zev Seigel and writer Gordon Bowker who shared a love of fine coffee and exotic teas invested US$ 1,350 each and borrowed another US$ 5,000 from a bank to open up a store called Starbucks Coffee, Tea and Spice in the tourist’s Pikes Place Market in Seattle. Later the name was changed to Starbucks Coffee Company. Starbucks is named after coffee-loving first mate in Herman Melville’s Moby Dick and also because the thought of the name evoked the romance of high seas and the seas faring tradition of early traders. The Starbucks logo is a two-tailed mermaid encircled by the store’s name. The store was an immediate success, with sales exceeding expectations. Stores opened in different parts of the US. Entrepreneur Howard Schultz joined Starbucks as a marketing executive in the early 1980s and acquired the company in 1987. Continue reading about Starbucks Corp
This is but a sampling of the selection of caffeine fixes that are presented to the American public on a daily basis. It is by making these beverage choices that we define a little bit about who we are and what we stand for. To quote a great American movie ͞The whole purpose of places like Starbucks is for people with no decision-making ability whatsoever to make six decisions just to buy one cup of coffee.Short, tall, light, dark, caf, decaf, low-fat, non-fat, etc. Click here to read more…
Since starting as a little known café in a long-abandoned Lansing Arby’s location in 1995, BIGGBY Coffee has grown to 115 franchised stores, open or in development, in five states (Walsh College; BIGGBY). Thirty of these franchises are in Metro Detroit (Skid).
In the last 15 years, BIGGBY Coffee has become the fastest growing franchise in the Midwest (Lane), boasting a 50 percent annual growth rate (Davidson). While Starbucks and Caribou coffee consolidated stores, BIGGBY persevered (Aho: Part 1), even overcoming a name change that could have been detrimental to the growing brand. Click here to read more…
With operational costs rising and sales declining, the global coffee purveyor implemented a three-step plan to improve supply chain performance, cut costs, and prepare for the future.
It takes a well-run supply chain to ensure that a barista pours a good cup of Starbucks coffee. That’s because the journey from bean to cup is a complicated one. Coffee and other merchandise must be sourced from around the globe and then successfully delivered to the Starbucks Corporation‘s 16,700 retail stores, which serve some 50 million customers in 51 countries each week.
But in 2008, Starbucks wasn’t sure that its supply chain was meeting that goal. One clue that things were not quite right: the company’s operational costs were rising even though sales were cooling. Between October 2007 and October 2008, for example, supply chain expenses in the United States rose from US $750 million to more than US $825 million, yet sales for U.S. stores that had been open for at least one year dropped by 10 percent during that same period.
In part, Starbucks was a victim of its own success. Because the company was opening stores around the world at a rapid pace, the supply chain organization had to focus on keeping up with that expansion. “We had been growing so fast that we had not done a good enough job of getting the [supply chain] fundamentals in place,” says Peter D. Gibbons, executive vice president of global supply chain operations. As a result, he says, “the costs of running the supply chain—the operating expenses—were rising very steeply.” Click here to read more…
Starbucks Corporation is an internationalcoffeehouse chainbased inSeattle,Washington,United States. Starbucks is the largestcoffeehousecompany in theworld, with 16,120 stores in 49 countries, including around 11,000 in the UnitedStates, followed by nearly 1,000 inCanadaand more than 800 inJapan.Starbucks sellsdrip brewed coffee,espresso-based hot drinks, other hot andcold drinks, snacks, and items such as mugs and coffee beans. Through theStarbucks Entertainment division andHear Musicbrand, the company alsomarkets books,music, and film. Many of the company’s products are seasonal or specific to the locality of the store. Starbucks-brandice creamand coffee arealso offered at grocery stores. Starbucks’ Italian style coffee, espressobeverages, teas, pastries and confections had made Starbucks one of thegreatest retailing stories of recent history and world’s biggest specialty coffeechain. In 2003, Starbucks made the fortune 500.
In 1971, three academics, English Teacher Jerry Baldwin, History Teacher ZelSiegel and writer Gordon Bowker opened Starbucks Coffee, Tea and Spice inTouristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet(whom they knew personally) to sell high-quality coffee beans andequipment. The store did not offer fresh brewed coffee by the cup, but tastingsamples were sometimes available. Click here to read more…
In March 2003, Fortune came out with its annual list of “Fortune 500 companies”. For Howard Schultz (Schultz), Chairman of Starbucks Corp. (Starbucks), this list was special as Starbucks [was] featured in the list (position 465). It was a dream that come true for the Seattle-based entrepreneur.
Though the U.S. economy was reeling under recession and many retail majors were reporting losses and applying for bankruptcy, Starbucks announced a 31% increase in its net earnings and a 23% increase in sales for the first quarter of 2003. Analyst felt that the success of Starbucks showed that a quality product speaks for itself and the fact that Starbucks spent less than 1% of its sales on advertising and marketing strengthened this view. In addition to be a popular brand among customers, Starbucks was also considered the best place to work due to its employee friendly policies (Starbucks was the first organization in the U.S. to offer stock options and health coverage to part-time employees also)…click here to read ahead