|
ISSN 1923-841X [Print] |
International Business and Management |
ISSN 1923-8428 [Online] |
Vol. 12, No. 1, 2016, pp. 29-32 |
www.cscanada.net |
DOI:10.3968/8197 |
www.cscanada.org |
Starbucks VS Chinese Tea—Starbucks Brand Management Strategy Analysis in
China
YANG Qian[a],*; TU Xing[b]
[a]School of Applied Foreign Languages, Shenzhen Polytechnic, Shenzhen, Guangdong, China.
[b]College of Art and Design, Shenzhen University, Shenzhen, Guangdong, China.
*Corresponding author.
Received 30 November 2015; accepted 25 January 2016 Published online 29 February 2016
mainly focuses on the wealthy class. They offering expensive tea drinks, food and service (Mintel, 2012). The lacking of features will endanger their places in the market and cannot compete with coffee shops. Meanwhile, the loss of brand image cognition is a critical defect.
Abstract
As the worldrsquo;s largest coffee retailer, Starbucks coffee is the leading roaster and retailer of specialty coffee. Since it entered Chinese market in 1999, Starbucksrsquo; trademark of a green and white mermaid has been featured in more than 1700 outlets in China. Starbucks puts the customersrsquo; feeling and experience at the top of priority. It promotes a lsquo;Starbucks Culturersquo; value and emphases on “culture oriented” influence. Starbucksrsquo; success in China—a country with five thousands yearrsquo;s history of tea drinking is a classic profile of the international brand localization management.
Key words: Starbucks; Chinese tea; Marketing strategy; Brand management; Culture cognition
Yang, Q . , amp; Tu, X . (2016) . Starbucks VS Chinese Tea —
Starbucks Brand Management Strategy Analysis in China.
International Business and Management, 12 (1), 29-32. Available from: http://www.cscanada.net/index.php/ibm/article/view/8197 DOI: http://dx.doi.org/10.3968/8197
INTRODUCTION
According to the Mintel consumer research-Teahouses and coffeehouses-China report in 2012, the coffeehouses in China have doubled in the past 5 years. From 15898 in 2007 increased sharply to 31783 in 2012 while the teahouses raised 4% only with the number of 50,000 (Mintel, 2012). Though the teahouses are superior in numbers, the main consumers are the elders, which can be predicted that teahouses will experience recession in the future.
The report shows, the market target of tea houses
1. THE SUCCESS OF STARBUCKS
Established in 1971 in Seattle, Washington, U.S.A. It started its first small coffeehouse lsquo;Tea and Spicersquo; owned by three men—Jerry Baldwin, Zev Siegel, and Gordon
Bowker, which mainly offered professional coffee knowledge, and taught customers how to make fine coffee at home. The company took the name of the chief mate in the book Moby-Dick: Starbuck, after considering “Cargo House” and “Pequod” (Time Out, 2011). Howard Schultz bought the original Starbucks franchise in 1987 and named as Starbucks Corporation (The Daily Telegraph, 2011). From then on, Starbucks changed into a coffee chain from being a small coffee bean retailer. Now Starbucks Coffee Company is North Americarsquo;s leading roaster and retailer of specialty coffees. Sales have climbed an average of 20% annually since the company went public in 1992 with total stores of 162 while profit bounded ahead average of 30% per year (Wu, 2009). As of June 28, 2015, Starbucks owns 22,519 store worldwide, and was awarded most ethical company 2015. (Starbucks, 2016a)
The company has demonstrated rapid growth for over a decade, and is continuing to grow profitably through the current recessionary environment. In January 1999, Starbucks entered Beijing, and in May 2000, many of its branches began to appear in the financial capital of China, Shanghai. It has become the leading brand in inland China coffee industry currently.
2. THE DEVELOPMENT OF STARBUCKS
IN CHINA
It is well known that China is the origin country of tea.
29 Copyright copy; Canadian Research amp; Development Center of Sciences and Cultures
Starbucks VS Chinese Tea—Starbucks Brand Management Strategy Analysis in
China
There is a long history of tea drinking in China. Although it is difficult to ascertain when the tea-drinking culture started exactly, there are evidences showing that the habit of tea drinking in many countries was spread from China.
Since the beginning of China boom in the last decade, foreign drinks such as coffee and coke are becoming popularity among youth in China. Coffee is gradually relative to taste and fashion, and it becomes a way to show social status. This country has represented an attractive potential market for international coffee chains. Nowadays, the omnipresence of coffee shops on the streets of many Chinese cities mentioned as an example of Chinarsquo;s growing taste of foreign food and drink. Young people become fans of coffee. For many Chinese, coffee is an inseparable part of life now.
In some large cities like Beijing, Guangzhou or Shanghai, the coffee consumption can be amazing. China, with its strong tea culture is becoming a huge potential market for coffee brands.
Starbuckrsquo;s China has experienced a notable growth since opening its first store in Beijingrsquo;s China World Trade Center in the year of 1999. Now, Starbucksrsquo; trademark of a green and white mermaid has been featured in more than 1,900 outlets in 99 cities with 30,000 staff in China (Starbucks, 2016b). Starbucks saw a 30% year- over-year jump in revenues f
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