STARBUCKS IN THE CITY OF WHITE CLOUD: A STUDY OF THE MARKET PENETRATION OF STARBUCKS IN GUANGZHOU CITY

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1 STARBUCKS IN THE CITY OF WHITE CLOUD: A STUDY OF THE MARKET PENETRATION OF STARBUCKS IN GUANGZHOU CITY

2 Main Topic: Market Penetration of Starbucks in Guangzhou Studying a foreign firm which entered a country with a different environment Studying a foreign firm which penetrated the Chinese Market, particularly, the Guangzhou market

3 Statement of the Problem To what extent has Starbucks penetrated the Guangzhou market? What are the profiles of the Starbucks consumers in Guangzhou? What's the current positioning of Starbucks in Guangzhou?

4 Significance of the Study People who can benefit Data we can provide Students Researches Foreign Investors Businessmen Economists Some data about the coffee industry in Guangzhou, China A glimpse of the situation of a foreign firm in Guangzhou, China The positioning of Starbucks in the Guangzhou-Chinese Consumer The efficiency of Starbucks s Marketing Efforts in Guangzhou

5 Methodology

6 Survey 46 Starbucks consumers in three Starbucks outlets (Haizhu, Tianhe & Yuexiu).

7 Findings how many times do you visit Starbucks per month? Starbucks has Regular customers

8 Findings why do you go to starbucks? starbucks attract its customers in Guangzhou mainly by creating a nice environment

9 Findings do you go to starbucks on purpose or by chance? Starbuck really enter Guangzhou market

10 Findings how much do you usually spend in a starbucks store? environment helps to promote the sales.

11 Findings how did you know this Starbuck store? Starbucks attract people mostly by the design and location of the store

12 Findings How would you rate Starbucks? Most of people give Starbucks a high score, but it still has space to improve

13 Findings Gender and the way to learn about Starbucks Girls tend to learn by ads and the experience of former customers Boys tend to learn by seeing the store

14 Findings Age and times of visit Young people just drop by the store The middle age go there maybe more a place to work The old man go there the most frequent because they develop a loyalty to Starbucks

15 Findings Age and preference For the young and middle age, they like the environment most For the old, they like coffee most.that means they are more loyalty to Starbucks

16 Findings Age and the score The young and the old are more satisfied with Starbucks but the middle age are more particular with Starbucks.

17 Conclusion

18 Conclusion To what extent has Starbucks penetrated the Guangzhou market? They have entered the Guangzhou market and their penetration is slowly improving. However, they have not yet fully explored the market.

19 Conclusion What are the profiles of the Starbucks consumers in Guangzhou? Market Segment based on Age Group Young consumer (1-21) Middle-aged Consumer (22-40) Old-consumers (41 and above) Description Mostly male students and young managers; young college girls hanging out with friends Professionals, Meticulous, not yet loyal to Starbucks; largest consumer age group Professionals, still at the peak of their careers, intellectual, brand loyalists, willing to spend money on coffee

20 Conclusion What's the current positioning of Starbucks in Guangzhou? Starbucks is patronized not for its brand and coffee but for the environment it offers to its customers.

21 Recommendations Since most Guangzhou consumers rated Starbucks only 8 out of 10, the main recommendation of this group is to improve its marketing strategy by considering these specific suggestions based on our findings. Market Segment Recommendations Female customers Male customers Young consumers Middle-aged consumers Old consumers Advertisements catered to the female Not much recommendations because they are already effective in attracting the male consumers Train baristas to recommend drinks to the young adults to make them loyal to Starbucks in the future Improve the environment to cater to them more since they are the largest consumer group of Starbucks Train baristas to recommend healthy alternatives to the old consumers favorite coffee

22 END