The paper highlights issues relating to the international business and in specific the international marketing environment. There is a situational analysis created on Starbucks and how they would conduct business internationally. It looks at their mode of operation, their competition, potential customer and potential positioning in the market as well as the macro and micro conditions in the market.
International Marketing
A situation analysis is termed as a foundation to be used for a marketing plan. A situation analysis normally includes an examination of both the internal and external factors that can affect a business. A situation analysis creates an overview of the organization that acts as a guide to understanding the factors that influence the future of an organization (Lorette, 2010). The paper will look at the situation analysis for Starbucks's coffee for entry into India as the target market.
Starbuck's international profile
Starbucks Corporation is a global coffee chain house and companies which started in 1971 as a roaster and a retailer of ground coffee, whole bean coffee and tea in Seattle. The mission of the company is "to inspire and nature the human spirit-one cup and one neighbor at a time." Over the years Starbucks has undergone a rapid expansion and now it is the largest coffeehouse company in the world with close to 149,000 employees (Speiser, 2003). The Company operates in 61 countries all over the world. Today the company connects with millions and millions of customers all over the world providing them with close to 30 blends and single-origin premium coffees in a family type environment with brilliant customer service. Starbucks boosts of a brand portfolio that includes Starbucks coffee, Seattle's best coffee, LaBoulange, Evolution fresh and so many more (Paunikar, 2012). This clearly shows that Starbucks is a company that has an international presence and is therefore well-known. Despite its international presence Starbucks still needs to expand more especially in cities in India. This is especially due to the fact that there has been a revolutionization of the coffee consumption as well as the economic growth in the country. The rational for this further internationalization is so that the company can grow and at the same time increase its profit taking advantage of the economic development of India.
Assessment of the potential of the target market
When it comes to making an assessment of a potential target market there are various factors which have to be considered.one of these factors is the potential which the target market holds. There will be no need of venturing into a new market if that specific market does not have potential. Therefore when assessing a target market one has to ensure that they decide on a target market which has the greatest potential in terms of customers and hence the company will stand a chance of getting good returns. Therefore India is a country that has a high potential for Starbucks to venture into. The probability of Starbucks introducing the coffee bar culture in India is very high due to many reasons. This therefore makes India a good choice for Starbucks to further expand into.
Analysis of the target market
India is a very lucrative market for any international company to assume or overlook especially a company such a Starbucks which has been quite successful in making its presence felt in countries that are traditionally tea drinking nations such as Japan and China. India has a great potential as a target market due to various reasons. First of all there is a new consumer culture that is coming up in India. The young people in India're becoming are now becoming world class consumers. This can be attributed to various factors such as the fact the India economy underwent a massive liberation that opened the economy for foreign investors and trade. These new policies have enabled multinational companies to take advantage and invest into the country (Parikh, 2009). There are also increased job opportunities in India as a result of many companies venturing into the country. The attitudes that are held by Indians are now changing and they are now spending as opposed to only focusing on saving. Another factor is that of India's pop culture which shows a great desire to follow the trends in western countries. The young Indian buyers now want everything that is associated to the western trend .therefore these young people will run to Starbucks and buy coffee since it is western and opt not to buy coffee from the local coffee stores. Without any doubt Indian consumers will welcome the internationally popular coffee company Starbucks just as other countries in the world have done without so much trouble.
Industry/competitor analysis
The coffee industry can be seen as one that has high competition but one that has low barriers to entry for new entrants and also customers switching to other brands or substituting brands is a rare thing. Since the inception of the coffee revolution in India there has been an expansion of the local chains such as Barista and cafe coffee day .these local chains have mushroomed in almost all parts of the country and with almost a new cafe being opened every single day. However Starbucks is still expected to gain a reasonable portion of the market share for various reasons. First of all Starbucks is an internationally popular corporation which will help the company step into the industry in India despite the existing competition. Another reason is the fact that Starbucks has reasonable and superb prices which neither Barrista coffee and Cafe coffee day is bale to provide. Starbucks will therefore easily take over the market and the industry in general and since it has an assurance of quality and commitment to giving back to society then the company will definitely gain brand loyalty.
You’re 83% through this paper. Sign up to read the full paper.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.