Starbucks Marketing Strategy in Turkey: Growth Analysis

Introduction: Starbucks Enters the Turkish Market

Drinking coffee in Turkey has long been a way of life. Turkish people in general — and men in particular — savor the social time they spend with friends in coffee shops across the country. It is not surprising, then, that Turkey appeared on Starbucks' marketing radar nearly 20 years ago, and the company has experienced sustained success in growing this market ever since. Nevertheless, Starbucks still faces many familiar marketing challenges, as well as some new ones, as it seeks to expand its business in this Middle Eastern country even further.

The purpose of this paper is to assess how well Starbucks has performed in Turkey over the past two decades and to identify the company's core, actual, and augmented product benefits offered in Turkey today. A description of Starbucks' marketing strategy in the Turkish market is followed by an analysis of the growth opportunities available to managers in the country. Based on the findings that emerge from this research, several marketing recommendations are provided concerning how Starbucks Turkey can sustain and improve its future sales growth while remaining competitive. A summary of key findings concerning the future potential for Starbucks in Turkey is presented in the conclusion.

Growth Drivers and Market Entry Strategies

Coffee shops are ubiquitous in Turkey, and the market might appear saturated — yet Starbucks has effectively leveraged its entry and marketing strategies to grow its business there. 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 presence in the Turkish market (Linnskog 2008).

Some measure of this success is evident in the fact that Starbucks recently opened its 500th store in Turkey, the Narmanli Han, designed with a traditional ambience. The company notes that the store "epitomizes Starbucks' 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 in Turkey

Although traditional Turkish coffee is consumed in great quantities across the country, some consumers still prefer the smoother taste of the coffees and other beverages served at Starbucks. Traditional Turkish coffee is typically served in comparatively small cups containing just a few ounces of the beverage. As Taviloglu (2021) explains, "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).

Starbucks differentiates itself by offering larger serving sizes, a wide variety of beverage options, and a comfortable, community-oriented store environment — benefits that collectively represent the company's augmented product offering and help distinguish its experience from that of a traditional Turkish coffeehouse.

Hybrid Marketing Strategy in the Turkish Market

The marketing strategy used by Starbucks in Turkey can best be described as a hybrid approach that combines the company's standardized global marketing practices with strategies specifically tailored to the Turkish market. 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 consumers, emphasizing the 'Starbucks experience'" (Starbucks Turkey 10).

This was an important element in achieving success in Turkey, since the "Starbucks experience" was fundamentally different from the experiences consumers received in traditional Turkish coffeehouses. By communicating its brand identity clearly while adapting to local preferences, Starbucks found an effective balance between global consistency and local relevance.

Conclusion

While success was not guaranteed, the research showed that the Starbucks leadership team made the right decision when it expanded its international market to include Turkey. The country's fondness for coffee is world-famous, and the Starbucks brand proved a fitting match for this culture — notwithstanding the continued preferences for traditional coffee among some older Turkish consumers. Based on the findings that emerged from this research, it is reasonable to conclude that future analyses will note continued growth and will credit the company's focus on aligning its product offerings with Turkish cultural preferences as a key driver of that success.

Works Cited

Linnskog, Leif. "Entry Modes of Starbucks." School of Sustainable Development of Society and Technology, 3 June 2008. Available:

"Starbucks Turkey."

"Starbucks Surpasses 500 Stores in Turkey." Starbucks, 2020. Available:

Tavilaglu, Elizabeth. "Turkish Tea and Coffee Culture." The Spruce Eats, 9 June 2021. Available:

"Turkey Population." CIA World Factbook, 2021. Available: https://www.cia.gov/the-world-factbook/countries/turkey/#people-and-society.

Yucelt, U. "Product Choice in Different Cultures: An Empirical Investigation among Turkish Consumers." Journal of International Marketing & Marketing Research, vol. 25, no. 2, June 2009, pp. 59–68.