MKT744 (21427): GLOBAL MARKETING AND SALES DEVELOPMENT
International Marketing Evaluation & Strategy Adopted by
Starbucks in China and Brazil
Prepared by:
Sabbir Ahmed
B00891494
i
,Abstract
This article examines a comprehensive summary of the specialty coffee business and
Starbucks' involvement within two emerging markets in the world and how it holds a
relatively favorable position. The paper focuses on the international marketing tactics
that Starbucks use in two culturally different countries and the marketing decisions
made by Starbucks in those countries.
The paper also analyses the PESTLE framework and the competitive scenarios in
China and Brazil and focuses on how it has entered these markets and survived.
Starbucks’ market entry plan in both countries, in addition to the company's
segmentation, targeting, positioning strategies, and other marketing aspects, were
thoroughly discussed in the report.
ii
,Table of Contents
1.0 Introduction ............................................................................................................... 1
2.0 International Outlook and Image of Starbucks....................................................... 1
3.0 Marketing Environment of China and Brazil .......................................................... 2
3.1 Macroenvironmental factors of China and Brazil ................................................... 2
3.2 Microenvironmental Factors in China and Brazil.................................................... 7
4.0 Market Entry Strategy ............................................................................................ 8
4.1 Starbucks’ entry strategy in China ......................................................................... 8
4.2 Starbucks’ entry strategy in Brazil.......................................................................... 9
4.3 Entry mode evaluation ........................................................................................... 9
5.0 Segmentation ...................................................................................................... 10
6.0 Marketing Mix ...................................................................................................... 11
6.1 Product Proposition ............................................................................................. 11
6.1.1 Starbucks' Product Proposition in China ....................................................... 11
6.1.2 Starbucks' Product Proposition in Brazil........................................................ 12
6.2 Pricing Strategy ................................................................................................... 13
6.2.1 Starbucks' pricing strategy in China .............................................................. 13
6.2.2 Starbucks' pricing strategy in Brazil............................................................... 14
6.3 Place.................................................................................................................... 15
iii
, 6.3.1 Placement of Starbucks in China .................................................................. 15
6.3.2 Placement of Starbucks in Brazil................................................................... 16
6.4 Promotion ............................................................................................................ 16
6.4.1 Starbucks’ promotional activities in China ..................................................... 16
6.4.2 Starbucks’ promotional activities in Brazil ..................................................... 17
Conclusion .................................................................................................................... 18
References .................................................................................................................... 19
Appendices ................................................................................................................... 27
iv
International Marketing Evaluation & Strategy Adopted by
Starbucks in China and Brazil
Prepared by:
Sabbir Ahmed
B00891494
i
,Abstract
This article examines a comprehensive summary of the specialty coffee business and
Starbucks' involvement within two emerging markets in the world and how it holds a
relatively favorable position. The paper focuses on the international marketing tactics
that Starbucks use in two culturally different countries and the marketing decisions
made by Starbucks in those countries.
The paper also analyses the PESTLE framework and the competitive scenarios in
China and Brazil and focuses on how it has entered these markets and survived.
Starbucks’ market entry plan in both countries, in addition to the company's
segmentation, targeting, positioning strategies, and other marketing aspects, were
thoroughly discussed in the report.
ii
,Table of Contents
1.0 Introduction ............................................................................................................... 1
2.0 International Outlook and Image of Starbucks....................................................... 1
3.0 Marketing Environment of China and Brazil .......................................................... 2
3.1 Macroenvironmental factors of China and Brazil ................................................... 2
3.2 Microenvironmental Factors in China and Brazil.................................................... 7
4.0 Market Entry Strategy ............................................................................................ 8
4.1 Starbucks’ entry strategy in China ......................................................................... 8
4.2 Starbucks’ entry strategy in Brazil.......................................................................... 9
4.3 Entry mode evaluation ........................................................................................... 9
5.0 Segmentation ...................................................................................................... 10
6.0 Marketing Mix ...................................................................................................... 11
6.1 Product Proposition ............................................................................................. 11
6.1.1 Starbucks' Product Proposition in China ....................................................... 11
6.1.2 Starbucks' Product Proposition in Brazil........................................................ 12
6.2 Pricing Strategy ................................................................................................... 13
6.2.1 Starbucks' pricing strategy in China .............................................................. 13
6.2.2 Starbucks' pricing strategy in Brazil............................................................... 14
6.3 Place.................................................................................................................... 15
iii
, 6.3.1 Placement of Starbucks in China .................................................................. 15
6.3.2 Placement of Starbucks in Brazil................................................................... 16
6.4 Promotion ............................................................................................................ 16
6.4.1 Starbucks’ promotional activities in China ..................................................... 16
6.4.2 Starbucks’ promotional activities in Brazil ..................................................... 17
Conclusion .................................................................................................................... 18
References .................................................................................................................... 19
Appendices ................................................................................................................... 27
iv
