Case study - Starbucks (1)

docx

School

Niagara College *

*We aren’t endorsed by this school

Course

9503

Subject

Marketing

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by ProfessorRatPerson1043

Starbucks – Case Study Question 1: Coffee has a Global Consumer Culture. What does it mean for Starbucks as it expands to countries like Italy? Italy’s coffee culture is widespread and considered an integral part of its culture. Lavazza and Illycafe coffee beans are considered the premium, traditional beans that were widely consumed by Italians. In a culture like this, coffee cultures like Starbucks with filter coffee were frowned on and disapproved. These can be seen as challenges entering into markets like Italy for Starbucks where they will initially gain negative, slow responses in the market. Starbucks however tackled this situation by opening in one of the most famous landmarks in Milan and also by introducing Frappuccino, knowing that Italians can be persuaded for ice cream as a drink due to their love of gelato. Question 2: Nestle is the market leader in its segment and its buying of Blue Bottle was part of what kind of strategy? Blue Bottle was an artisanal brand that was like fine wine in the coffee industry. Their speciality coffee was introduced as premium and upscale, and Nestle saw the opportunity to acquire a rising star in the industry where freshly ground coffee creates more appeal than Starbucks. By acquiring the Blue Bottle, the food giant company was able to push the product to a fast- growing, out-of-home market. Question 3: Describe Italy on Hofstede’s five dimensions of culture. Individualism/Collectivism: Italy falls under the category of a collectivistic culture. This means that people in Italy tend to expect the group to look after and protect them. The society is integrated into cohesive in- groups, emphasizing relationships and concern for others. Power Distance: Italy is characterized by low power distance. This suggests that there is a tendency to play down inequalities, and employees are not afraid to approach or question those in authority. Italy does not have a strong hierarchical structure, and there is a relatively flat organizational design. Uncertainty Avoidance:

Italy is characterized by high uncertainty avoidance. This implies that people in Italy may feel uncomfortable with unclear, ambiguous, or unstructured situations. There might be a preference for clear guidelines, and there may be a lower tolerance for risk and different opinions. Achievement/Nurturing: Italy leans more towards nurturing values. This suggests that relationships and concern for others prevail over assertiveness, acquiring money, and competition. The social roles of men and women may overlap, and there may not be an overly ambitious or competitive behavior. Long-term Orientation/Short-term Orientation: Italy might lean more towards short-term orientation, valuing tradition and the past. Italian culture tends to prioritize immediate concerns and established customs over long-term planning. This short-term orientation implies a preference for quick results and decisions based on immediate needs. Additionally, the mention of valuing tradition and the past indicates a strong appreciation for historical practices, cultural heritage, and maintaining a connection with the country's rich history. In business and social contexts, Italians may prioritize maintaining established relationships, traditional business practices, and cultural rituals. This cultural emphasis on the present and the past contributes to the perception that Italy leans towards a short-term orientation. In summary, Italy is described as a collectivistic culture with low power distance, high uncertainty avoidance, a preference for nurturing values, and a likely inclination towards short- term orientation. Question 4: Given the above dimensions, what should Starbucks focus on to succeed in Italy? 1: Power Distance Power distance is about how much people accept unequal power in a society. In Italy, people respect authority and hierarchies. To succeed, Starbucks should pay attention to the Italian preference for clear hierarchies. Ensuring efficient management practices, providing personalized service, and showing respect for customers and employees are crucial aspects for alignment with this cultural dimension. 2: Individualism vs. Collectivism Italy leans towards a collectivist society, emphasizing family and community ties. To succeed, Starbucks should integrate its stores into local communities by promoting cultural traditions and engaging in social activities. Encouraging regular customers and employees to feel part of a larger Starbucks family can create a sense of belonging and foster loyalty.

3: Masculinity vs. Femininity Italy adopts a balanced approach towards masculinity and femininity, valuing assertiveness and nurturing qualities. Starbucks should aim for a balance between a professional and friendly atmosphere. Providing quality products while offering a warm and welcoming customer experience will appeal to Italian cultural values. 4: Uncertainty Avoidance Italians prefer stability and predictability. Starbucks can succeed by ensuring consistent quality and a stable working environment. Being transparent with pricing and sourcing can build trust and loyalty. 5: Long-term Orientation Italy values tradition and immediate gratification. Starbucks can include traditional Italian coffee practices in its offerings. Providing local favorites while keeping the Starbucks experience can bridge cultural gaps. 6: Indulgence vs. Restraint Italy has an indulgent culture. To succeed, Starbucks should focus on offering premium and indulgent products that match Italians' love for high-quality coffee. Offering unique flavors and variations to cater to local tastes can drive customer satisfaction and loyalty.  Does Starbucks need to avoid the self-reference criteria? Why or why not? For Starbucks entering Italy, avoiding self-reference criteria involves understanding and adjusting to Italian cultural expectations, especially regarding coffee and consumer preferences. This adaptation is essential for successful integration into the local market. - To succeed in Italy, Starbucks should adapt its menu to reflect the simplicity and quality emphasized in the traditional Italian coffee culture, focusing on classics like espresso and macchiato instead of extravagant drinks like, like Frappuccinos and caramel lattes, might not resonate with Italian customers who value traditional flavors. - Additionally, Starbucks needs to create an ambiance that aligns with the Italian coffee experience. Italy is famous for its intimate and warm coffee shops, where people can enjoy their coffee standing at the counter or sitting down with friends for a leisurely chat. Starbucks, on the other hand, is known for its spacious and modern interior designs, often promoting productivity or providing a space for remote work. To succeed in Italy, Starbucks may need to adopt a cozier and more traditional atmosphere, reminiscent of the classic Italian coffee bars, where customers can truly embrace the Italian coffee culture.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Question 5: How are the target markets (consumers) for Nestle and Starbucks different in social attributes? Nestlé:  Diverse Demographics: Targets a wide range of consumers with different demographic profiles.  Affordability: Appeals to individuals seeking affordable and convenient food and beverage options.  Global Reach: Caters to a global market with a broad product portfolio. Starbucks:  Premium Positioning: Positioned as a premium coffee brand with a focus on quality and experience.  Affluent Consumer Base: Targets a more affluent customer segment willing to pay for premium coffee products.  Social Experience: Emphasizes the social aspects of coffee consumption, including ambiance and community. Both:  Global Presence: Both Nestlé and Starbucks have a global presence, but their market positioning differs.  Product Range: Offer diverse product portfolios, but with different emphases on quality and pricing.  Ethical Considerations: Starbucks emphasizes ethically sourced products, appealing to socially conscious consumers.

Related Documents

MKT 5243 Nature Jerky Case One.docx

Social Media Marketing Audit and Strategy.docx

Practice Marketing! Term Project Guidelines W24.docx

MRKT 2016 -Module 7 - Case Study 2 - Spire and Locate in Scotland.docx

Chapter 5 Projective and Elicitation Techniques.docx

Case Study Mktg8.docx

Zoetis Marketing Report.docx

analysis01.docx

Week 5 L9.pptx

consumer decision discussion .docx

spt 208-6-2 journal entry.docx

MKT 337 Final Project .docx

Recommended textbooks for you

Marketing

ISBN:9780357033791

Author:Pride, William M

Publisher:South Western Educational Publishing

Foundations of Business - Standalone book (MindTa...

Marketing

ISBN:9781285193946

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:Cengage Learning

Management, Loose-Leaf Version

Management

ISBN:9781305969308

Author:Richard L. Daft

Publisher:South-Western College Pub

Principles of Management

Management

ISBN:9780998625768

Author:OpenStax

Publisher:OpenStax College

MARKETING 2018

Marketing

ISBN:9780357033753

Author:Pride

Publisher:CENGAGE L

Contemporary Marketing

Marketing

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Cengage Learning

SEE MORE TEXTBOOKS

Recommended textbooks for you

Marketing
Marketing
ISBN:9780357033791
Author:Pride, William M
Publisher:South Western Educational Publishing
Foundations of Business - Standalone book (MindTa...
Marketing
ISBN:9781285193946
Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
Publisher:Cengage Learning
Management, Loose-Leaf Version
Management
ISBN:9781305969308
Author:Richard L. Daft
Publisher:South-Western College Pub
Principles of Management
Management
ISBN:9780998625768
Author:OpenStax
Publisher:OpenStax College
MARKETING 2018
Marketing
ISBN:9780357033753
Author:Pride
Publisher:CENGAGE L
Contemporary Marketing
Marketing
ISBN:9780357033777
Author:Louis E. Boone, David L. Kurtz
Publisher:Cengage Learning