Upload
minh-anh-nguyen-le
View
395
Download
3
Tags:
Embed Size (px)
Citation preview
International Marketing
Group 1:-Nguyen Thu An
-Nguyen Khac Thuy An-Nguyen Le Minh Anh
-Huynh Minh Tam-Nguyen Thanh Phu
• Background
• Controllable and uncontrollable elements
• Sources of risks and potential solutions
• Starbucks with its corporate strategy
• Certain context: Japan
• 1971, Jerry, Zev, Gordon open a small coffee shop.– Sold fresh roasted coffee beans and brewing
equipment.
• 1983, Schultz sold coffee by the cup.
• 1987, sell Starbucks name for $3.7 million.– Schultz believed that they could open 125 outlets
within the following five years.
• Saturation of US market within 2 years.
• Going global, profit reduced to 20-50%.
• Problems of changing generation.
• Employee dissatisfaction on odd hours, low-pay.
• Maintaining the growth rate.
• All company owed outlets.
• 1% of revenue in Advertisement.
• Design and open a store in 16 weeks.
• Initial investment recovered in 3 years.
Price:
– Higher price in Korean
Product:
– Italy serves non-coffee items too
Promotion:
– In local Word of mouth
– 1% of revenue on Advertisement of new launches
Economic Force:
– Economy down turn results by 14% in Japan
Competitive Force:
– Similar fare by local rivals in Japan
– Imitators Coming in to grab the market share in England
Cultural Force:
– The youth is more enthusiastic in embracing new things
Political/ Legal Force:
– Secret regulations and Labor Benefits in France
What are the major sources of risk facing the company? Discuss potential solutions.
The market:
• The saturations of United States market.
• The crowding of many stores so close.
The customer:
• Changing the generation
• 20 years old group vs 30 years old group
The employee:
• Odd hour – low pay.
• Over worked and underappreciate.
3 m
ain
so
urc
es o
f ri
sk
• The market:
– Eight states of US that no Starbucks stores.
– Prevent Self-cannibalism (location of the stores).
– Licensing and franchising for foreign investors.
– Go global.
• The customer:
– 30 years old group and older use coffee more often.
– Do market research to determine consumptions habits for younger consumers.
– Upgrade the Wi-Fi connection.
• The employee:
– Improve the employee satisfaction.
– Increase the salary.
• Faults:
– Eight cities in U.S. remained untapped.
– Relying on word of mouth, Starbucks spends just 1% of revenues on advertising.
– Low payment to employees.
– “Predatory real estate” strategy—paying more than market-rate rents to keep competitors out of a location.• Not only it is claimed as an unfair attempt to drive out small, independent
competitors who could not afford to pay inflated prices for premium real estate, this also leads to monopoly and then leaves customers annoyed with fewer choices.
• Faults:– Stores Expansion in the U.S.
• Growing continuously rapidly, Starbucks has done clustering several locations in a small geographical area. Doing so eventually will inevitably act to cannibalize existing locations same store sales.
– Stores Expansion Globally
• Stores expansion in other countries too rapid to concern the real preferences and habits of local consumers and competitors.
• Faults:– Predatory real estate strategy
• Buying out competitors' leases
• Not only it is claimed as an unfair attempt to drive out small, independent competitors who could not afford to pay inflated prices for premium real estate, this also leads to monopoly and then leaves customers annoyed with fewer choices.
• Faults:
– Labor Disputes & Involvement in Lawsuit.
• Because of Starbucks’ payment and policies toward its part-time and full-time employees do not compatible with working hours and duties.
• 470 Frustrated store managers sued Starbucks in 2001 for allegedly refusing to pay legally mandated overtime.
Competitors
Mt. Rainier Georgia
What Starbucks did?
Ready-to-drink beverage
Sandwich and less – sweet desserts
Result The largest market
722 stores opened since 1996
Drive through service
Language adaptation
. Product: Japanese flavor adaptation Japanese ingredients:
Sakura, Hokkaido milk, YuzuCha Shake
Healthy beverage: sugar beet
Fresh products: Coffee in sachet and other ingredients in package
Understanding Japanese culture
. Place: School and work Vending machine at metro
station