Updated December 21, 2022

Three Reasons that why Starbucks Successful in China Case Study

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Three Reasons that why Starbucks Successful in China Case Study essay
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First reason that why Starbucks is successful in China is that launch a perfect approach that they combine Chinese unique tea culture. As a matter of fact, coffee is more considered as Western drink compared with tea. However, a majority of Chinese are enjoying and loving tea for their whole time and a lot of them are not familiar with coffee culture before the Starbuck was introduced to China.

The Starbuck win the competition since they realize the importance of marketing strategies when they entry a new market. Starbucks would conduct a through pre-survey that study the local culture and local consumers needs. More important, they would study local purchasing power and purchasing habits and every factor that may effects the local customer’s purchasing choice.

With the survey results that Starbuck conducted, the Starbucks is smart enough to use Chinese unique tea culture. The Starbuck launch drinks that combine green tea and other Chinese unique ingredients. The strategy is successful that new drinks with Chinese ingredients become popular in a short time.

The second reason that why Starbucks is successful in China is that the Starbucks. In 21th century, Starbucks is more than a choice of drink and it is more considered as a fashion choice. In other words, different generations go to the Starbucks store and order the coffee because they think it is a fashionable choice.

After a decade, having Starbucks coffee is becoming a culture even though the Starbucks coffee flavor is not all in a good taste to its customers. All in all, drinking in Starbucks is considered a culture, which is a part of modern culture.

In addition, the Starbucks make their store’s atmosphere relaxing, which makes their customers tend to sit down and have a drink. The atmosphere of Starbucks is applying an emotional appeal to draw a standard that Starbucks respect their customers and they would try their best to provide a perfect place for their customers to order drinks and relax a little bit.

Third, Starbucks try their best to attract more customers and keeping them as loyal customers. The Starbucks carefully choose their store location in order to attract customers. For instance, they would choose a crowded business districts since there might be a large number of potential customers based on the large population. Otherwise, the Starbucks would choose a less crowded district yet has a number of potential high-income customers.

Furthermore, the Starbucks has different strategies to apply to different areas. Starbucks would put the weather into their consideration of opening the new stores. For instance, the Starbucks choose the northern part of China then they would consider the cold weather that happened a lot in the northern part China. The Starbucks would open a new store at the northbound direction.

The road easily freezes at lower temperature and it is hard for people to walk on the frozen street. However, the sunshine would come from the south side and the frozen ice would easier to melt compared with the frozen ice on the south side street. As a result, people tend to walk on the street without any frozen ice, which would the Starbucks easily get more customers.

Three Reasons that why Starbucks Successful in China Case Study essay

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What did Starbucks do in China to encourage success when entering the market?
Once Starbucks decided to enter China, it implemented a smart market entry strategy. It did not use any advertising and promotions that could be perceived by the Chinese as a threat to their tea-drinking culture. Instead, it focused on selecting high-visibility and high-traffic locations to project its brand image .
What makes China an attractive market for Starbucks?
Starbucks is one of the largest coffee chains in the World. The company has a unique style and atmosphere in their coffee houses. We chose China because it is the world's most populous country with over 1.3 billion people live there and second-largest country by land area .
Why Starbucks has been successful?
It is so successful because it was able to provide an experience that changed how much of the world thought about coffee shops and how many of us drink coffee outside of our homes . Starbucks created a third place between home and work where people can relax, enjoy a cup of coffee and experience the inviting ambience.
Why was Starbucks so successful in China?
Starbucks' global success was based on being the "third place" between home and work and brought that ethos to China -- but with a modern, Western, upscale sensibility . Since those early days Starbucks has meticulously organized its efforts in China around three key pillars of Chinese society.
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