Innovative Marketing Strategies for Starbucks Turkey

Marketing Strategies Used by Starbucks in Turkey

Drinking coffee in Turkey has long been a way of life, and the Turkish people in general and men in particular savor the social time they spend with their friends in coffee shops across the country. It is not surprising, then, that Turkey appeared on Starbucks’ marketing radar nearly 20 years ago, and this company has experienced sustained success in growing this market since that time. Nevertheless, Starbucks is still faced with many of the same types of marketing challenges as well as some new ones as it seeks to expand its business in this Middle Eastern country even further. To this end, the purpose of this paper is to provide an assessment concerning how well Starbucks has performed in Turkey over the past 2 decades as well as to identify the company’s core, actual and augmented product benefits offered in Turkey today. In addition, a description of Starbucks marketing strategy in the Turkish market is followed by an analysis of the growth opportunities that are available to managers in this country. Further, based on the finding that emerge from the foregoing research, several marketing recommendations are provided concerning how Starbucks in Turkey can sustain and improve its future sales growth while remaining competitive at present. Finally, a summary of the research and important findings concerning the future potential for Starbucks in Turkey are presented in the paper’s conclusion.

Has Starbucks has done well in Turkey? What are some of the common growth drivers in terms of consumer characteristics, market characteristics, and entry strategies across USA and Turkey that might account for Starbucks’ success?

Coffee shops are ubiquitous in Turkey and the market would appear to be saturated but Starbucks (hereinafter alternatively “the company”) has effectively leveraged its entry strategies and its marketing strategies to grow its business in this Middle Eastern country. Depending on the unique characteristics of its target destinations, Starbucks has used three different international entry strategies, joint-venture, wholly-owned subsidiary and licensing, to grow its business in the Turkish market: (Linnskog 2008).

Some indication of this success can be readily discerned from the fact that Starbucks recently opened its 500th store in Turkey, the Narmanli Han, with a traditional ambience. In this regard, the company reports that, “Epitomizing Starbucks [sic] continued growth in the region, the unique store design combines historic architecture with the familiarity and sense of community the Starbucks Experience is known for” (Starbucks surpasses 500 stores in Turkey 2). This “sense of community” has been central to Starbucks’ continued success in the Turkish market.

Core, actual and augmented product benefits offered by Starbucks in Turkey

Although traditional Turkish coffee is consumed in great quantities across the country today, some consumers still prefer the smoother tastes of the coffees and other beverages that are served at Starbucks. Moreover, Turkish coffee is typically served in comparatively small cups which offer just a few ounces of the beverage. In this regard, Taviloglu (2021) reports that, “Turkish coffee is like a rough version of espresso. Each cup is prepared individually in a small hand-held kettle and served in elegant little cups and saucers” (6).

Is Starbucks using a standardization, localization or hybrid marketing strategy in Turkey?

The marketing strategy used by Starbucks in Turkey to date can best be described as a hybrid approach that combines the company’s standardized marketing strategies that are specifically tailored to the Turkish market. For instance, according to the case study, “When entering a new city, a series of public relations, marketing and sales events would take place to build awareness in the community. For example, free coffees were distributed on the opening day and the newest drinks were presented for tasting. The philosophy of Starbucks was explained to the consumers, emphasizing the ‘Starbucks experience’” (Starbucks Turkey 10). This was an important element in achieving Starbucks’ success in the Turkish market since the “Starbucks experience” was fundamentally different from the experiences consumers received in traditional Turkish coffee shops.

Using the product/market expansion grid shown in Figure 2, apply the growth opportunities available to managers in Starbucks Turkey.

Existing Products New Products

Existing

Markets

Market Penetration: There are approximately 62 million+ potential coffee consumers in Turkey today (Turkey population 2021) and the Turkish market has readily embraced the Starbucks brand, suggesting that there are still opportunities available for additional growth in the future.

Product Development: Starbucks Turkey benefits from the ongoing product development in the parent company, but there appears to be an opportunity for the company to fine-tune its Turkish offerings through product development that specifically appeals to the Turkish culture and beverage preferences.

New Markets

Market Development: Although the company’s primary market in Turkey has focused on densely populated urban areas such as Ankara and Istanbul, there is a potential for expansion into more rural but heavily populated regions of the country as well (Yucelt 2009).

Diversification: Not only is there growing demand for caffeinated beverages in Turkey, many Turkish consumers are also eager to purchase Western brands. These trends mean that the potential for marketing a more diverse line of products in Turkey, including most especially Starbucks merchandise (Yucelt 2009).