Consumer behavior - Case Study Example

ID Lecturer Consumer Behavior What are the barriers facing Starbucks as they try to “teach” people to engage their consumption habits from tea to instant coffee? The barriers that Starbucks is faced up with currently are that it is unable to make the cut as far as the Chinese market is concerned. It is doing its best to break inside the Chinese market but little success has been achieved to date. The right mix of people is not being tapped and this is one of the reasons why Starbucks has failed as a brand in entirety.

Since the consumption habits are not that comprehensive for the Chinese people, there have been problems that the brand has faced in essence. The consumption habits have also moved on but the people have generally detested the idea of consuming coffee within their day to day lives. 2. To what extent can/should Starbucks customize their offerings to local tastes and preferences? What are the risks of extreme customization? There is a dire need to customize the offerings of Starbucks because the Chinese preferences are not suited towards the needs of the brand which is willing to make its best mark upon the Chinese market.

The customization could be carried out but the biggest problem is that there is a fear of dilution of the Starbucks’ offerings if more changes are brought about. Hence what is required now is a vision to set things right within a proper equation and customization be managed in an amicable fashion nonetheless. The risks of extreme customization are apparent through the dilution of brand’s own preferences and thus working to negative effects over the equity that it has built over a period of time all over the world. 3. What values are involved in the Starbucks “experience?

” The values that are involved within the Starbucks’ experience include the strong adherence to coffee and its related products. The Starbucks experience is such that people enjoy being a part of this coffee chain around the world and for that Starbucks is ready to provide the best possible value in the form of superior services, products and the bundle of both of these offerings. It banks on high commitment with the customers in terms of enriching services and facilities which have far-reaching ramifications, as it builds positive linkages with the customers all over the world.

This is an important value proposition that has come to the fore as far as the Starbucks is concerned. 4. Examine the 10 factors that influence the spread of innovations using table 7-2 (thinking now that Starbucks is still quite novel and an innovative concept as is coffee to many in China), and create a grid for the Chinese market relative to coffee and Starbucks. The 10 factors that influence the spread of innovations within Starbucks include the following: 1. Creativity 2. Advertising messages 3.

Exploring new tangents 4. Making use of skills to tap new markets 5. Bringing coffee as a need rather than as a want 6. Lowering the price of coffee 7. Bringing bundle packages within coffee production and delivery at Starbucks 8. Reaching out through new locations 9. Touching new investors and stakeholders 10. Redefining new perspectives and angles These 10 factors represent the need for Starbucks to be as innovative as it can be to achieve success in the long run. 5. Based on your analysis in question 4, what can Starbucks do to successfully encourage greater coffee consumption in general, but also more demand for Starbucks?

Specify key themes, copy points, and visuals. Starbucks can make giant efforts in the form of reaching out to the people through social awareness programs where need is established with regards to the coffee consumption. What this will do in essence is to tell the audience that coffee consumption might be a new habit for them, but is one that brings in a whole new taste at the end of the day. They will feel enriched and privileged when they consume coffee through Starbucks. What is most important here is to make them realize that coffee is a good drink for them and that they should first consume it to become dedicated consumers of the Starbucks chain which is expanding within the Chinese market.

The key themes are on establishing the need, while the copy points are set on getting the right message easily and without much fuss. The visuals which shall be used must be appropriate with the relevant target market and Chinese personalities should be depicted as much as possible. 6. Develop a marketing strategy for taking Starbucks into smaller Chinese cities and communities. What barriers would be faced? Could they be successful? The marketing strategy which could be used here for Starbucks comprises of establishing the need for consuming coffee first before hitting on the premise of the globally acclaimed coffee house – Starbucks.

The Chinese cities and communities would be advertised upon with the Starbucks message which shall tell all and sundry that Starbucks is coming within their country, and that they need to become more receptive to how they will maneuver their relevant basis in the coming times. The barriers that could be faced include the age-old myths of the people that tea is better than consuming coffee and it would require real efforts to ask of these people to start consuming coffee for their own good taste.

If Starbucks brings in honest efforts, the success aspects will surely be achieved. 7. Discuss the demographics, cultural, and media factors that make India more attractive for Starbucks than it was 10 years ago. Compare and contrast India and China in terms of the key elements Starbucks must address. India is a more attractive market for Starbucks because people are not health conscious and open to consuming taste rather than minerals, herbs and tea related elements. The demographics of India are such that the people are distinctive, hail from diverse backgrounds and believe in being hip and trendy – aspects which are in line with the Starbucks philosophy (Author Unknown, 2007).

The culture of India is such that people remain innovative and outgoing and this is where coffee comes in. The media also plays the significant role here and this is the reason why Starbucks can be propagated across the board on all media channels, vehicles and platforms. China and India are different because the people are distinctive. While Chinese concentrate more on health and fitness, the Indian people believe in having a good time with food being their sole criterion for festivity. References Author Unknown, 2007.

India-China Growth Rate Comparison. The Futurist, Retrieved from URL: http://futurist.typepad.com/my_weblog/2007/02/indiachina_gr ow.html