All the Tea in China and Starbucks

In: Business and Management

Submitted By woodzzy
Words 1241
Pages 5
All the Tea in China and Starbucks
Starbucks is a globalized organization that began by selling coffee, tea, and spices. The first store opened in 1971 in Seattle, Washington’s Pikes Peak Plaza. Howard Schultz joined as a marketing director in 1983 and during a trip to Italy was impressed with the coffeehouse and wanted to try this concept in Seattle. The concept and business flourished, and by 1996 Starbucks opened the first international coffeehouse in Japan. Since 1983 Starbucks has expanded globally with 18,000 retail stores in 60 countries. The first Chinese Starbucks was built in China in 1999 and is currently operating in more than 500 locations in China and plans to expand to 1500 locations by 2015. Starbuck’s mission statement: “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks, 2013, p. 1).
Starbucks not only sells premium coffee and teas, Starbucks sell a culture of excellence in customer service, and brand with the expertise of the partners (employees). Starbucks sells a lifestyle, an ambiance of the tranquil coffeehouse environment for the busy professional, student, or coffee connoisseur. So how has Starbucks, mainly known for the premium coffee sales by the cup been such a success in China where the more than one billion people drink and export tea? Starbucks success in China is a testimony to understanding the importance of globalized intercultural communication, marketing, and branding strategies. Starbucks’ corporate managers recognizes how to assimilate into the Chinese culture, and convince the Chinese people that they too want to be a part of the Starbucks culture just like a Westerner.
According to Varner and Beamer,” It may be in the national interest to promote trade to improve employment and living standards at home” (Varner & Beamer, 2010, p. 381). Starbucks has improved the…...

Similar Documents

China and Starbucks

...following report will discuss the impact of Starbucks initiative to capitalize their brand of coffee on China, which is rich in history of being tea drinking country. China has a massive consumer market with a population of around 1.3 billion (Hawkins, 2010). The culture of the Chinese has a strong tradition of consuming tea, as it is still the number one beverage in China which the Chinese have enjoyed tea for millennia (Hawkins, 2010). The first topic that will be discussed is to determine and discuss barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Recommendations will also be made to help Starbucks successfully encourage greater coffee consumption. Next an advertising campaign will be constructed that would not only encourage greater coffee consumption in general, but also increase the demand for Starbucks; while identifying key themes, i.e. copy, points, and visuals. I will then develop a marketing strategy for taking Starbucks into smaller Chinese cities and communities; while outlining the barriers and determining if they have a chance to be successful. Lastly, a demographic will be outlined with the cultural and media factors that make India more attractive for Starbucks than it was 10 years ago. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Though China represents great opportunities because of......

Words: 1649 - Pages: 7

Why Starbucks Succeeds in China and Others Haven't

...Why Starbucks succeeds in China and others haven't By Shaun Rein, Contributor Updated 2/10/2012 3:03 PM • Comments • • • • [pic] • [pic] • [pic] About 14 years ago, I met an entrepreneur who wanted to open up coffee shops around China. I never thought the coffee business would work there. The Chinese would not easily give up their tea-drinking culture for a bitter, overpriced drink, I told him. • [pic] By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Enlarge By Greg Baker, AP A worker cleans the sign outside one of the many Starbucks outlets in Beijing. Sponsored Links Starbucks has proven me wrong. Howard Schultz, the CEO of Starbucks (SBUX), announced that China will soon become its largest market outside the United States. It has opened over 500 outlets in the country, which are more profitable per outlet than in the U.S. even though sales per outlet lags its U.S. counterparts considerably, according to the chain's chief financial officer, Troy Alstead. What did Starbucks do to succeed in a market where so many other Western food and beverage brands such asDunkin Donuts, Krispy Kreme, and Burger King have failed to live up to their own expectations? What Starbucks did right in China is a textbook case study in how food brands can succeed despite rising labor and real estate costs and increased competition on the Mainland. • PHOTOS: 10 fake......

Words: 909 - Pages: 4

Tea Culture in China and Japan

...Introduction In China, there is a famous legend of “Shen Nong Tasting Hundred Plants”. Shen nong who is a famous botanist. He tasted various kinds of plants to test them as food or medicine. One day, after walking for a long time, he felt tired and thirsty, so he rested under a tree and started a fire to boil water in a pot. Suddenly some leaves fell into the pot from a nearby tree. He drunk the water and found it not only sweet and tasty, but refreshing as well. Shen Nong felt less tired, so he went on to drink all the water from the pot that was how tea is found (Liu, 2012). In Tang Dynasty, the Chinese tea and tea culture was spread to eastern countries, especially Japan. Though tea originated in China, but it was carried forward in Japan. Nowadays, tea has become a famous drink in the world. There are many types of tea in China and Japan. The main Japanese tea is Sencha, Genmaicha and so on. (Stevens, 2013). In China, the Green tea, Black tea, Oolong teas are very popular. There can be various mixtures of flowers with green tea, black tea and oolong tea (Liu, 2012). In China, tea can be used as a gift for business and etiquette. However in Japan, tea is a kind of art. Japanese tea art is famous all over the world. In my portfolio, I will compare and contrast the Chinese and Japanese tea types. The quality of tea and tea arts. As I am a tea lover, I would gain more tea knowledge about the two types of tea and its culture. 2. Background information At first,tea was......

Words: 1572 - Pages: 7

Current Market Situation of Herbal Tea in China

...Current Market Situation of Herbal Tea in China New product help to reduces internal heat (燥熱). For example, one product mention it use the nature herbals and lemon to solve this health problem. This product holds many events to promote their product in Southern China and Shanghai. Also, there are more and more herbal tea brand had been established in the market. SWOT Analysis Firstly, for the strengths, in the market of herbal tea, JDB has always been the market leader and its market share reached a high percentage of over 70%, its can be explained by the high recognition of the red can from the public good reputation of the quality and taste. Also, JDB gain a well brand image after success of PR campaign in 2008 Beijing Olympic Games and contribution for earthquake. Moreover, it is the world Heritage Convention Organic Recipe of Herbal Teas. Lastly, they had did well brand building after they had changed the name to JDB, because of 99% of people in China had heard about JDB and about 70% of people in Chins had brand recognition about JDB. Secondly, for the weakness, it is lack of promotion of standing out the differences between JDB itself and the competitors also JDB do not have their unique benefit. Therefore, with a premium price, it cannot provide a strong reason that why the consumer need to choose JDB. On the other hand, it has a narrow range of products which are JDB herbal tea and Kunlun Mountains water. Thirdly, for the opportunities, there are......

Words: 1040 - Pages: 5


...facing Starbucks as they try to “teach” people to change their consumption habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese. Other than that, having a cup of tea after meal will help to digestion. When feel upset, Chinese also believe a cup of tea will help to quiet down the mind. Moreover, when a Chinese family have guess come to their house, the owner will always treat the guess a cup of tea and can enhance the friendship. But to the coffee, Chinese do not get the benefits of drinking coffee and believe coffee are does not have the same value compare with tea. It will become one of the barriers facing Starbucks as they try to “teach” Chinese to change their view towards the coffee. In addition to this, one has to take into consideration the vast area of china. China consists of 1.3 billion of peoples. Even china is keep improving and economic start to growth up, but china is still having largely rural areas and lots of lower income family. Other than that, they have less familiarity with coffee and don’t have as much money spend on the more expensive beverage. Therefore, it will be other barriers to the Starbucks who want try to “teach” people to change their consumption habits from......

Words: 2428 - Pages: 10

Tea from All Accross America

...lottery would make America as a whole be more involved and care more about the war. 6. That americans don’t care as much about wars as they used to, and that the wars wouldn’t drag on as long if there was a draft and more families were involved. 7. A good amount, he does give a lot of numbers and other logic, but in the end he is mostly appealing to pathos. 8. It would matter a lot, because he is giving quite a very controversial argument and it needs to be coming from a credible person. 9. He shows how he understands the draft and the feeling of being a soldiers parent by explaining his fathers military background and talking about his 2 children’s military experience. 10. He uses quite a bit of pathos, but it’s mainly all at the end of his argument. 11. “In the Vietnam Era”, “In today’s military”, “In contrast to” 12. He uses the word combat over and over throughout his argument to emphasize the issue at hand as much as possible. 13. “If you were unfortunate enough to be drafted, you at least knew that the nation drew the line at one year of combat” is an example of an analogy because they didn’t literally draw a line. 14. In this argument I feel there not many times he draws a word’s multiple meanings. 15. When he starts to get deeper into the argument of bringing back the draft lottery, when an overwhelming percentage of the American population does not agree with that. 16. I do agree that if the draft lottery was......

Words: 534 - Pages: 3


...I.Branches in the world and Vietnam: Starbucks is the largest coffeehouse company in the world ahead, with 21,160 stores in 63 countries and territories, including 12,067 in the United States, 1,570 in China, 1,451 in Canada, 1,070 inJapan and 793 in the United Kingdom. From Starbucks' founding in 1971 as a Seattle coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day. Starbucks had been profitable as a local company in Seattle in the early 1980s  but lost money on its late 1980s expansion into the Midwest and British Columbia. Its fortunes did not reverse until the fiscal year of 1989-1990,  when it registered a small profit of $812,000. By the time it expanded into California in 1991 it had become trendy.  The first store outside the United States or Canada opened in Tokyo in 1996. Starbucks entered the U.K. market in 1998 with the $83 millions USD acquisition of the then 56-outlet, UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. In September 2002, Starbucks opened its first store in Latin America, at Mexico City. Currently there are over 250 locations in Mexico, about 100 of them are located in Mexico City alone. In August 2003, Starbucks opened its first store in South America in Lima, Peru. In 2007, the company opened its first store in Russia, ten years after first registering a trademark there. In 2008, Starbucks continued its expansion, settling in......

Words: 1457 - Pages: 6


...Starbucks Corporation: An Extensive Analysis By: Muhammad Almuhanna Andre Johnson-Payne Jessica Pope Natalie Schiefer Jordan Sprague Management 429 – Dr. Yu Liu April 16, 2012 Table of Contents Brief Introduction & Key Issues 3-4 External Analysis 4-5 Internal Analysis 5-7 Analysis of Business Level Strategy 7-8 Analysis of Corporate Level Strategy 9-11 Recommendations 11 References 12 Appendix 13 Brief Introduction & Key Issues Starbucks opened their first location in Seattle, Washington in 1971. Since then, the company’s main focus has been to ethically source and roast the highest quality Arabica coffee beans in the world. The company’s mission is “to inspire and nurture the human spirit, one person, one cup and one neighborhood at a time.” They achieve this by having more than 17,000 locations around the globe and being the world’s largest premium specialty coffee retailer (Starbucks Corporation, 2012). Starbucks was founded by three acquaintances: an English teacher, a history teacher, and a writer. The three were inspired by entrepreneur Alfred Peet, Dutch American entrepreneur and the founder of Peet's Coffee and Tea in Berkeley, California. The name Starbucks is taken from Moby Dick, after the name Pequod was rejected by one of the cofounders. Therefore, the company was named after the chief mate on the Pequod, Starbuck. Their logo is inspired by the sea featuring a twin tailed siren from Greek myths (Starbucks......

Words: 5844 - Pages: 24


...Huoming Su/MBA 671/CW#1 Starbuck Strategy Industry/Competitive Environment Industry Environment Coffee industry is a highly competitive industry. Almost every restaurant and all supermarkets provide coffee at any time. And also a more convenient and cheaper way to get a cup of coffee is brew it at home. But Starbucks is difference by offering higher quality coffee, which also charges higher than its competitors. Although its price is much higher, Starbucks also has a strong brand loyalty; it has been able to consistently make sure they are butter than other cafes. Starbucks also has to compete against home coffee producers such as Nestlé’s and the K-Cup system. With high concentrations of competition, Starbucks still the largest and most successful coffee company in the world due to them provides high quality products, and high brand loyalty. Starbucks has an offer from both ends of the spectrum range of coffee flavors to differentiate themselves from their competitors. This allows them to create a unique taste, which can only be found at Starbucks. Starbucks also offers baked goods, sandwiches, with such a wide variety of characteristics of goods available for sale Starbucks to stand out from the competition. For the industry trends of Starbucks, to keep the leading position in the coffee industry, they can keep increase the number of their stores in America, and also they can increase the size of the store, provide more seats to their customer that can make......

Words: 1186 - Pages: 5

Marketing Strategies of Starbucks China

...Case Study of Starbucks in China 姓 名 (中文) 李佩琪 (拼音) LiPeiQi 学 号 20100301336 所在学院 国际商务英语学院 年级专业 国际商务管理 指导教师 侯香勤 职称 讲师 完成时间 2014 年 2 月 28 日 A Research on the Marketing Strategies of Coffee Chain Business --- A Case Study of Starbucks in China Li Peiqi School of English for International Business Abstract In this article, the writer summarizes the marketing strategies of Starbucks by applying the basic theories of marketing, the SWOT analysis method with the theory support from a lot of reading and information searching. This article argues that the factors which distinguish Starbucks from its competitors in the market positioning are: the pursuit of coffee quality, the well-trained staff, the enthusiasm for making the world better, the attention to it pays to the community and the environment, innovation and the one and only “Starbucks Experience”. Starbucks puts coffee business in primary place, its core competiveness is its culture and values. Since the company locates the business in inspiring human’s spiritual beauty, it is necessary for their marketing means to come from the mental and psychological level. One innovative side of this article is that in addition to using the most basic marketing theory to the analysis of Starbucks' marketing strategy, the writer analyzes the success factors of Starbucks’ marketing......

Words: 6771 - Pages: 28

Tea Trends

...Two trends about tea consumption and selling Tea is a popular beverage in the world. Tea accounts for 36 percentages of global hot drink markets. In some places like Asia-Pacific, tea even take up 67 percentages of the whole market value. European countries, like England, are also fond of tea. As the middle class in the world is increasing, demand for tea will also increase. Nowadays, there are two important trends about tea that tea merchants and tea companies should take note of. First, Chinese people are more and more likely to drink in western-culture coffee houses. Second, many coffee selling shops tend to add tea into their menu. In China, drinking coffee is becoming more and more popular among people and the coffee houses are now very common to see. Chinese people, especially young one, like to sit at coffee house and drink coffee for a whole afternoon because that will make them feel good about themselves: buying a cup of expensive coffee makes them feel they are wealthy (Anber, 2013). Other than this, drinking coffee in coffee house also represents a modern life style as Henning said coffee house is “a necessary site for men and women sporting a modern lifestyle and a means of personal expression and distinction”. In addition, Anber remarks that Chinese are fond of western culture and value the association that coffee has with western countries. Last but not least, the service in coffee bars is good. The waiters in coffee houses all have been trained before and...

Words: 662 - Pages: 3

Histoty of Starbucks in China

... [pic] 星巴克国际成功 Yakimova Alexandra (萨莎) 二零一四年六月 Starbucks (星巴克)是美国一家连锁咖啡公司。 星巴克销售各种产品,包括高品质的全豆咖啡,新鲜煮咖啡,意式浓缩咖啡饮料和冷饮料,食物,优质茶和饮料相关的配件和设备。 根据Mintel全球消费调研公司星巴克有美国的咖啡馆销售73 %的市场份额 (2012年, ),这是显著的,因为大部分的收入来自国内市场(21亿美元),相比只6.4亿美元是海外份额( )。星巴克当中的许多成就是在快餐店和快速的茶点行业# 1的咖啡和世界最商业道德公司之一的位置。星巴克被称为“每一个街角有的一间咖啡厅”。 1.星巴克发展历程 1971年3月30日,星巴克在美国西雅图开了第一家店。Jerry Baldwin, Zev Siegel和Gordon Bowker合作开了第一家星巴克。他们三人开店是受到Peet’s Coffee的影响。在开业的第一年,他们从Peet’s购买咖啡豆,而后,他们就直接从咖啡豆产地购买。1980年Siegl 把星巴克股份卖掉。1982年星巴克录用Howard Schultz作为营销和零售销售部门的经理。Schultz受到意大利米兰咖啡厅的影响。他爱上了意大利咖啡店的文化,并认为它可能在美国取得成功。可Baldwin与Bowker以为这样的营业策略市场风险的能力很高,所以解决了Schultz的想法。结果Schultz自己开了新的咖啡店Il Giornale。1988 Schultz和其他的Il Giornale投资者以370万美元代价收购了星巴克。 此后,星巴克变成了美国版的意大利咖啡屋,1994年,聘请Wright Massey替全球连锁店进行店内设计后,如今星巴克在全球范围内已经有近12,000间分店遍布北美、南美洲、欧洲、中东及太平洋区 。优质的产品和服务,明确的市场定位以及积极的营销策略使得星巴克迅速成长为全球知名品牌。 在早期到90年代中期,星巴克开始了显著国内扩张。1991年,他们进入邮购目录业务。他们也大到机场。星巴克在Sea-Tac国际机场在西雅图开了第一个机场店。 下一个大的成功是星冰乐。星冰乐也带来了与百事合作:百事将装瓶和分销星巴克星冰乐遍布全国各地。 1998年,星巴克签署了分销协议,允许他们扩展到杂货店全国。 1992年,星巴克又与公众的首次公开募股。到这个时候,他们有165店,并很好地建立起来。他们获得了三亿美元,每股17美元。而此时,星巴克已经达到了国内成功,从这次开始可以们考虑国际扩张。 2. 星巴克为什么要国际扩张? 星巴克还打算调低在全球开设4万间店的长期计划,迄今已开了逾1.6万间。 第一星巴克的全球扩张的原因是扩大其品牌的愿望。Schultz寻求星巴克成为一个全球性品牌,并给世界带来“星巴克体验”。有星巴克尚未达到一个可观的市场。在这些市场,他们有可能取得成功。其中包括一个强大的,有竞争力的欧洲市场和东南亚,亚洲市场,星巴克可能是先发。作为一个在任何国际市场的先行者提供了​​巨大的优势。日本的咖啡市场成长以及年轻一代开始看到美国文化作为新的和酷的。 ......

Words: 732 - Pages: 3


...economy of East Asia especially in China, has grown vigorously and attract a massive amount of global corporations, such as Starbucks to invest by adapt their localization strategy. The diversity of regional culture such as lifestyle, value, religions are complicated, the essay will refer to Starbucks stores and their successful localized marketing campaigns illustrating examples within China. Localization plays an essential role to help business gain access to the local market, catering customer’s tastes, adapting local culture in order to boost profitability, improve brand identity, retention, prestige and brand loyalty, as well as better customer service. These localization strategies result in successful prospects for the global corporations. Firstly, localization mainly helps the business to increase in profitability through customizing the corporation’s products and services so that appeal to the local tastes. The higher the local demands matches, the higher value of customized products. It is commonplace that the preference is distinct from country to country. For example, there is a traditional tea-drinking culture that deeply influences their food culture in China. To preserve and adapt the Chinese taste, Starbucks attempted to discover new Chinese-inspired flavors to gain recognition of local people. In addition to the classical coffee sold in the Starbucks, it also has introduced the bean frappuccinos, green tea latte, oolong tea and red bean scone (Cheung Kong......

Words: 1687 - Pages: 7

A Marketing Plan for Twg Tea to Enter China Market

...A marketing plan for TWG Tea to enter China market Table of contents Executive Summary 3 1.0 Introduction 4 1.1 Product background 4 1.2 Company background 4 1.3 Country background 4 2.0 Business Evnrionment 5 2.1 PESTEL analysis 5 2.2 SWOT analysis 6 2.3 Market analysis 8 3.0 Marketing strategy 8 3.1 Objectives 8 3.2 Target market 8 3.3 Positioning 8 3.4 Marketing mix 8 3.4.1 Product 9 3.4.2 Price 9 3.4.3 Place 10 3.4.4 Promotion 10 4.0 Implement and control 11 4.1 Implement 11 5.2 Control and evaluation 12 5.0 Conclusion 12 6.0 Reference 14 Executive Summary This marketing plans aims to help TWG Tea, a well-known tea brand operating in Singapore, to enter tea market in China. Through using PESTEL and SWOT analysis models, it finds that China is a high potential market for TWG to earn new growth. However, fierce competition and poor advertising performance of TWG and other limitations all can be big barriers to the entry of the brand. Considering the strong demand and satisfied purchasing capacity, TWG can target upper income groups who have strong beliefs in the health effects of tea to make greater sales. 1.0 Introduction 1.1 Product background TWG Tea is a premium and luxury team brand provided by The Wellness Group. As a well-known tea brand in the international world, this brand provides...

Words: 2785 - Pages: 12


...Introduction The history of Starbucks started in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1987, they sold the Starbucks chain to Howard Schultz, which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, pastries, snacks, and items such as mugs and tumblers. . Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. Starbucks' position its Starbucks outlets as a place where consumers can spend time other than that of their home or work. Their mission statement is “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time”. This was done by making each of its stores as comfortable and relaxing as possible. The coffee giant achieved these through its comfortable furniture and relaxing music. Starbucks first......

Words: 3605 - Pages: 15