Diversification is the primary strategy which have been taken by this company. To attract a greater
number of customers around the world, they have been introduced the evening meal package system.
This product mix came forward with new kind of products which link with the beverage business. Both
quality of service and the growth have been concentrated in this expansion. They have different kind of
food which was suitable for evening gathering. They have partnered with other companies likes Ethos
water, Pepsi to display variety of products in the shelves. Tea and snacks brought more revenue into the
company. Pastry introduced in Europe and current food market earns about 20 % of company’s retail
sales particularly in the U.S. As a results there are new plan to introduction of “grap and go “meals with
more menu include like soup so that company can meet the current trend in the market. I believe the
more towards selling meals and other snacks attract more people into the shop. This also generated a
certain amount of sales profit all over the word. This diversification strategy worked well in start bucks
history.
“[Growth Study] Starbucks Marketing Strategy.” Dejan Gajsek, 2020, dgajsek.com/starbucksmarketing-strategy/. Accessed 22 June 2021.
Market entry strategy was not a big support for Starbucks in the beginning in Italy. They must face
several challenges for doing business in Italy first they are the high consumers of caffeine almost 75% of
peoples drink coffee. This may affect the business with less customers and more competition in the
market sales. They most not prefer chain store which sale coffee according to the report shows only
0.6% of sales in overall market. The brand image in US and UK may not be work in Italian coffee lovers.
Most of the Italian don’t prefer to try foreign brand coffees due to robust Italian tradition and customs
in habit of food. The pricing of Starbucks is not suitable in that country because cappuccino in Pave
Milano café only $1.52 but Starbucks sells small size coffee about $4.01. These are the main reason
which can make the start bucks to be fail in Italian market.
Sola, Katie. “Six Challenges Starbucks Must Address to Succeed in Italy.” Forbes, 8 Jan. 2021,
www.forbes.com/sites/katiesola/2016/03/01/six-challenges-starbucks-must-address-tosucceed-in-italy/?sh=6bbc276f35b3. Accessed 22 June 2021.
tarbucks has positioned itself as a premium coffee brand offering a premium coffee experience. Apart
from great quality coffee, the brand’s value proposition also includes a great and unequaled customer
experience. The store design and environment of its retail stores are meant to drive fatigue away and
offer the guests, premium space to relax and enjoy their coffee.
Global diversification is the main marketing strategy which this company used from the beginning of the
period. First positioning strategy has been used to provide premium coffee to experience premium
coffee. The prime location of the store, design and surrounding environment are intended to relieve
stress and provide exceptional space for clients to relax and enjoy their coffee time with friends and
families. Segmentation and Target Market are primarily highly earned working professionals, business
peoples, or other top level peoples between the ages of 22 and 50. People who live fast-paced lives
desire delicious coffee and a quiet place to unwind after a long day. The regular customers age was in 42
years, whose average income $90,000 per year in 2018. An Ethical Brand is another type of strategy
which is use by this company. Starbucks concentrated on building a long-term reputation mainly for best
in quality, customer preference, and even following ethical in suppliers’ company around 99% of their
source used in shops. This helps them to being more loyal customers and to the company name itself
Identifying and Targeting the right customer and Placing introduce a new product suitably is the primary
key for success in new markets but Starbucks have been failed to follow this strategy in Australia.
Starbucks unsuccess in Australia because of wrong understanding about the established coffee culture
Even though star bucks are names as a premium supplier of coffee in Australia, they didn’t improve their
preexisting coffees to be suitable for Australian coffee lover’s. They rapidly developing strategy in
Australia gave a negative impact to the company because they opened many store in quick means and
created a view of easily availability which made them to feel different from others. Slow integration
might have work instead of rapidly opening markets. There are many other options available to the
peoples in that country.
Starbucks had a few basic list of menu which contain high volume of sugary drinks were Australians
didn’t like to consume it daily.