Smart Starbucks

I clearly remember that when the first Starbucks opened in my city, there were a great number of people waiting on line. It seemed that no one cared about the price of coffee at that time. However, recently, Starbucks in china under fire due to the high price of coffee compare to other places. Nevertheless, there are still many people purchasing coffee in Starbucks. As we can see, Starbucks has already gotten into the mind of the consumers in China. It is the almost first western coffee brand in China. Lots of blind faith consumers regard drinking Starbucks coffee as a fashion trend. Although nowadays, more and more western coffee brands expand their markets in China; however, it is more difficult to remember who is second.

Starbucks established its unique position in some Chinese consumers’ mind; this is one of the reasons that although its coffee is much expensive than other brands’, Starbucks still attracts and has more loyal consumers. In the news, “Starbucks under fire in China over its Coffee Pricing Policies”, one user said, “The prices are competitive and the quality makes people feel safe.” This certainly illustrates that some still support Starbucks due to the high quality of coffee and they are willing to pay such high price. Without doubt, the power of Starbucks name and logo cannot be ignored in China. Whenever people think about coffee, Starbucks comes the first place, which shows how memorable it is. Also, once people have Starbucks’ bottle; it seems they are fashionable. Starbucks successfully became the leader of the coffee markets in China. Surly, it is the first brand in the coffee category. Also, the difference in income between China and other countries emphasizes the high price of coffee. All in all, Starbucks uses brand positioning to target customers in the Chinese crowded market.

http://www.quickmba.com/marketing/ries-trout/positioning/

http://www.bbc.co.uk/news/business-24619544

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