The Marketing Strategy of Starbucks

The Global Marketing Strategies of Starbucks

    Over the past few years, marketing is no longer only domestic or even international. More specifically, global marketing is a key success factor for multinational firms. On the other hand, it is necessary to know that today's main emerging markets impact our domestic market. This essay will follow each step of the marketing approach, including the analysis of foreign market's environment and global marketing strategy development. Finally, we will discuss the issues and problems which Starbucks has to face the particular coffee markets and varies the strategy of benefits in the future and give some specific examples.

In the beginning, marketing can divide into domestic and global marketing. One of the main things to consider that domestic marketing means selling products in own country. More specifically, companies attempt to develop the first region for their goods and service. In this market, we are probably familiar many things such as customer needs, geography, distribution methods and tendency. It shows that companies are much simpler to deal with economic issues. On the other hand, there are no language problems. It helps to communicate with customers easier and faster. In addition, making decisions and developing marketing strategies are more efficient. Thus it can be seen that companies take lower risks in domestic marketing.

Secondly, global marketing is a company’s ability to market to almost all countries on earth. If firm does global marketing correctly, it can extend market to next level. In other words, company should base on the areas to make certain strategies. For instance, McDonald’s varies the menu that depends on marketing popular items within the location. It is extremely important to point out that company has to understand the demand of the whole world, and provides goods or services exactly such as vehicle and food. (Gillespie and Hennessey 2008)

Nowadays, global brands are a new trend. (QUELCH and DESHPANDE 2004) show that people used to think that globalization means we can see it easily on every corner. But following an international business becomes strong and stability in the weak economic markets, people are more likely to accept these global brands. For brands attempt to join it, there are some useful strategies that companies must take into account.    

Next, we are discussing that the global marketing strategy of Starbucks coffee. It is necessary to expand the overseas market after expanding the domestic market. Starbucks coffee international department employs multinational managers and multilingual to develop the worldwide expansion. These people take responsibilities for finding suitable location, training international managers and developing new businesses and so on. (STARBUCKS COFFEE COMPANY, 2013)

On the other hand, a global marketing mix development designs for effective global growth and impact. It means that the product offerings are according to the local flavor. Furthermore, Starbucks implements the advertising strategies specially. It does not follow any example and rule. Therefore, the strategy of advertising is adaptation rather than standardization. It believes that the shop expansion quickly can avoid other local businesses imitating their ideas. Tewell et al. (2006) point out that “Starbucks Everywhere”. Starbucks follows this way that give the partners entire responsibility and selection work, but it still keeps the right to endorse the location. After entering the new market, it tries to seek the differences and start to establish brand for Starbucks. (UW Business School 2003)

After that, one thing to consider that Starbuck cultural diversity follows the rule and culture to connect people and coffee more closely. For example, it matches up local festival and community to celebrate all the cultures, and take place the promotion. As a result, that is why Starbucks can create the special coffee according to local taste in about 50 countries. Another main point is developing loyalty and highly motivation to create the most prolific employees. More specifically, giving employees trusts, respects and welcomes warmly. Secondly, it is providing worker training to regular as well as part timers at all ranks. Consequently, that company can reduce the turnover of employees effectively. (Cooper 2010)

The last thing to consider is that advantages and disadvantages of strategies. Starbucks has to face the anti-globalization activists. The reason why they are against is Starbucks aims to pay fewer salaries to workers in developing countries. In addition, these protestors charge the company that Starbucks pushes native competitors out of business and take them sacrifice for market. Then it is blamed of hiring child employee for several times. However, if we see the positive effects on the economy, it offers more job chances and pay their worker good salaries which are better than the local company. The most important thing of these multinational organizations is that they share their market with their partners and follow the native labour laws and environment rules completely. Finally, Starbucks is ongoing to progress partnerships with unofficial organizations and corporate social responsibility. (MARKETING STRATEGIES OF STARBUCKS 2013)