• Home
  • /
  • Topic
  • /
  • Other
  • /
  • Coffee
  • /
  • International Organization Subsidiaries Countries. Coffee International Inc.  Research Paper
Verified Document

International Organization Subsidiaries Countries. Coffee International, Inc.: Research Paper

¶ … international organization subsidiaries countries. Coffee International, Inc.:

Starbucks' international strategy

Coffee International, Inc.:

Starbucks' international strategy

Mission Statement

From a small, Seattle-based coffee shop to an international corporate powerhouse, Starbuck's growth has a company has been a genuine international phenomenon. "Established in 1971 as a neighborhood retailer of gourmet coffee beans and fresh roasted coffee, the Seattle-based coffee superpower now boasts 15,012 stores in 44 countries around the world" (Levenstein 2010). Yet its mission statement is as follows: "Our mission: to inspire and nurture the human spirit -- one person, one cup and one neighborhood at a time" (Mission statement, 2010, Starbucks). Starbucks emphasizes community responsiveness. One of the hallmarks of the franchise was that, although it was part of a chain, every store had a slightly different character, depending upon its location, customers, and layout. However, when it expanded to other areas of the world, Starbucks had to even more radically think its core product, marketing, and presentation.

Product strategy

Starbucks markets itself as an affordable luxury in the U.S. It is often said that Starbucks was the first company to 'figure out' that people were willing to pay three dollars for a cup of coffee so long the drink was called a latte. While three dollars is considerably more than what Americans were used to paying for coffee pre-Starbucks, the price was still low enough that middle class people could enjoy relaxing in the store.

Distribution strategy

Even internationally, Starbucks tries to tailor its distribution strategy to the needs of the local market. Until recently, to...

However, the launch of its new Via coffee, which is marketed as tasting so good as to be indistinguishable from fresh-brewed Java, has caused Starbucks to change its approach to Japan and stress instant coffee. "Japan's instant coffee market was worth about $2.3 billion in 2009, roughly the same size as the fresh coffee market…By comparison, the U.S. instant market came to about $640 million, against $7.6 billion for fresh coffee" (Layne & Sloan 2010:1). The most popular instant coffee brand in Japan is Nestle, so the Japanese are used to buying foreign instant coffee brands.
Pricing strategy

In 2003, Starbucks' Japanese sales were flagging. However, Starbucks was able to rebound by reducing store expansion and raising its prices, emphasizing quality over quantity. It continues to use this strategy. "Starbucks will sell a box of three Via sticks for 300 yen, or 100 yen per cup. A box of twelve sticks will sell for 1,000 yen. ..That will make it considerably more expensive than rival offerings on shelves in Japan, where a Nescafe box of 15 sticks of ready-mix for cafe au lait sells for just under 300 yen" (Layne & Sloan 2010:1-2). However, in the U.S., although it has been forced to raise the prices of some drinks, it has also tried to offer more specials and 'deals' such as $1.50 brewed Java (Rohrlich, 2010).

Even in Japan, cost-consciousness of more of a concern than in the past. For customers who covet the Starbucks brand at home, Via still a third the price of a regular cup of coffee in the store. Starbucks' success in East Asia is manifest in the fact that, now that Starbucks has established a winning formula in its in-store locations,…

Sources used in this document:
References

Layne, Nathan & Daniel Sloan (2010, April 13). Starbucks eyes Japan growth, India market.

Reuters. Retrieved December 6, 2010 at http://www.reuters.com/article/idUSTRE63C1NG20100413

Levenstein, Steven. (2010). Coffee Breaks? Investor Spot. Retrieved December 6, 2010 at http://inventorspot.com/articles/starbucks_japan_grows_while_american_stores_close_15672

Mission statement. (2010). Starbucks. Retrieved December 6, 2010 at http://www.starbucks.com/about-us/company-information/mission-statement
Retrieved December 6, 2010 at http://www.minyanville.com/businessmarkets/articles/starbucks-starbucks-coffee-mcdonalds-burger-king/3/23/2010/id/27422
Cite this Document:
Copy Bibliography Citation

Related Documents

Coffee Shop Industry Overview a
Words: 1174 Length: 4 Document Type: Thesis

Today, the company makes it clear that it is a baker of bread. Founder Ron Shaich has served at Panera's Chief Executive Officer for more than 25 years. Panera currently has 1,264 bakery-cafes in 40 states and Canada, delivering what the company refers to as fresh, authentic artisan bread and cafe foods. The company's mission, "a loaf of bread in every arm" sounds more like a tagline. However, the company

Costa Rica Chiquita Banana Production
Words: 2052 Length: 7 Document Type: Term Paper

Costa Rica & Co. Strategic analysis of the global agricultural economy Competitive Financial Landscape Dole Food Co. & Competitors "Costa Rica used to be known principally as a producer of bananas and coffee, but pineapples have surpassed coffee as the number two agricultural export. Manufacturing and industry's contribution to GDP overtook agriculture in the 1990s, led by foreign investment in Costa Rica's free trade zone. Well over half of that investment has come from

Marketing Analysis for Mcdonald's Corporation History and
Words: 4955 Length: 10 Document Type: Term Paper

Marketing Analysis for McDonald's Corporation History and Scope of Business No one will argue that the golden arches is as much of an American icon as apple pie and baseball. The McDonalds sign is one of the most recognized logos in American and now it is quickly becoming one of the most recognized in the world. McDonald's got its beginning in the late 1940s when Dick and Mac McDonalds were searching for

Portfolio Management Project
Words: 4930 Length: 17 Document Type: Term Paper

Stock Portfolio Management Project Selected 10 companies Company Symbol purchase date purchase price Apple, Inc. APPL Industry/Sector: Technology/Personal Computer -- Investment Style: Large Growth Brocade BRCD Communications Systems Inc. Industry/Sector: Technology/Data Storage -- Investment Style: Small Growth Joy Global Inc. JOYG Industry/Sector: Farm/Const/Mach -- Investment Style: Large Growth Ctrip.com CTRP Industry/Sector: Consumer Services -- Investment Style: International Gerdau SA GGB Industry/Sector: Steal & Iron -- Investment Style: International Gol Linhas GOL Aereas Inteligentes SA Industry/Sector: Regional Airline -- Investment Style: International Green Mountain GMCR 10/21/2009 Coffee Roasters Inc. Industry/Sector: Processed Pkgd gds -- Investment Style: Small Growth Rio Tinto PLC RTP 10/21 /

Soft Systems Techniques in the Preparation of
Words: 20187 Length: 73 Document Type: Dissertation

Soft Systems Techniques in the Preparation of Information Technology as a Systems Manager Company Systems Consulting process and model Systems approach, client relationships Company Culture Client defenses, attachments to existing systems Interaction with the company culture in order to facilitate change System and Culture working together Dependancy issues Lewin Company Systems Consulting process and model Systems approach, client relationships Company Culture Client defenses, attachments to existing systems Interaction with the company culture in order to facilitate change System and Culture working together Dependency issues Lewin's model of

Krispy Kreme Donuts 2004 Determine
Words: 1445 Length: 3 Document Type: Term Paper

There is abundant opportunity in the western U.S. that KKD has yet to address. Each aspect of the strategy plan is now addressed by functional area: Market Development Over the next three years, KKD needs to first concentrate on competing more effectively in those regional markets where Dunkin' Donuts to this point has dominated the sale of donuts and related food and beverage items. This must begin with a build-out of

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now