Case Study Of Starbucks In Hong Kong Marketing Essay

Case reputation Of Starbucks In Hong Kong foodstuffing EssayChapter 1 Introduction1.1 Research understate and MotivationHong Kong is a cosmopolitan metropolis, it embodies both Eastern and Western traditions. repayable to its rich ethnical diversity and transnational life style, the city offers a simple variety of international catering which is served in more than ten kelvin deep brown shops and sustenance let onlets.In recent years, the rapid growth of food and drinkable industry in Hong Kong draws more attention from public. According to the results of the 2011 yearly Survey of Economic Activities Restaurant Sectors amounted to HK$89,300 million in 2011, representing an increase of 6% over 2010, and 12% over 2009.( Appendix A)Analysed by Food services, in 2010 total receipts of fast food shops increase in cheer by 8.4% over 2009, this amounted to HK$18,719.6M. Other eating and drinking services increased by 7.4% in value, this amounted to HK$35,100.8M in 2010. (Append ix B) This result obviously shows that snack and beverage industry continues to expand in the foodstuff.Coffee is a very political commodity, Roseberry says. Among coffee men, there is a growing interest in mixer and environsal issues by the coffee roasters of these organizations. Coffee-consuming-world represents a figure of social lifestyle as it is rooted in centuries in the Western countries. Coffee stinting consumption in Hong Kong is 1.1 kg per capita (World Resource Institute). Nowadays, coffee is not unsloped a pure drink for this modern generation, it is in like manner a symbol of saucily ghostlike lifestyle. Eating or drinking in a cafe is not only a necessary for coffees quality, taste and convenience, but also pursuit of fashionable leisure and elegant lifestyle. In the popular cultural discourses, Starbucks is give awayd as driving bulge out local coffee shops. It imposes a standardized culture on local communities, and invites consumers into a social hooku p place. This culture presents the values, beliefs, customs and tastes nurtured or practiced by this group of people. (Solomon, Marchall Stuart, 2008)Snacking with colleagues or friends after accomplishment provides a major socializing opportunity in Hong Kong. Young clients elect to visit coffee shops for leisure cartridge clip. Even workings people be likely to use the coffee shops as their work places. Coffee shops provide an informal particulariseting for social encounters, and more importantly these structured environments do not command a great superintend of time or funds from the customers, this is a small but large move to redefine this modernistic lifestyle in Hong Kong. Starbucks Coffee phoner is the leading retailer, roaster and tick off of specialty coffee in the world. There is a total of 17,003 farm animals in the world (as of 02 Oct. 2011) and 115 stores in Hong Kong, since its first store launched in Centrals Exchange Square in May 2000. (Appendix C) Starbucks brings the coffee relieve oneself a go at it to you This is what Starbucks commits, and indeed, it has established as the linchpins of a desirable coffee shop have a go at it, a systematic influence on the socio-cultural. (Craig J. Thompson,2004) In Starbucks stores, people evict be immediately associated with a relaxed and intelligent experience, this is just the image of Experiential branding which Starbucks make outs. Every aspect from the posters to the Starbucks logo gives the experience it intends to portray. It is the calm atmosphere which the brand presents that not only draws people into the store, but also makes people bulk large and return more regularlyWhat is Experiential Branding? It is a purify of how consumers understand and define the brands in terms of the experience they deliver and the lenses through and through which they are evaluated. Experiences are a fourth economic offering. Pine and Gilmore describe in the Experience Economy in 2003, if the consumer buys the experience, he testament take place time to enjoy a series of memorable regular(a)ts and engage himself in his personal way. Good examples are Ritz-Carlton which offers new value to its customers in hospitality experiences by its welcome gifts and Apple which provides in-store Genius Bars to build a remarkable experience for its customers.Yet in 2006, Robert Passikoff argues in his book Predicting Market Success that the 4P Marketing immingle cannot work effectively without client engagement, node stomachations and Customer the true(3C). These initiatives have conspired dramatically to take place of 4P Marketing Mix in todays economic world. Nowadays more and more people steering on quality of life as they are not just living for food and warmth(Pine Gilmore,1998), they are now looking for a high spiritual experience which is a kind of environmental service to reduction their stress from work.Many researches on merchandise management are for strateg ies, results, services, customer dedication, customer satisfaction, and so on, but not too many on experiential marketing and branding. Although there are a lot of studies and researches on Starbucks, some other well-known companies are even less researched on Customer Experience in Hong Kong. This research will further the antecedent study structure to investigate the connections among Customer Experience, Brand Image and Customer Loyalty, and hope to find out how Starbucks carries out its commitment and how it strives to win the customers faithfulty in this militant market.1.2 Research purposesWestern lifestyle has been popular in Hong Kong for decades due to its special historical background. The new generation especially, eats out more often than their parents, and these new consumers have pass waterd a huge demand for leisure and carefree consumption places. As a pioneer in most new markets in the world, Starbucks seized the new information in Hong Kong and set up its firs t store in 2000. By May 2008, it had expand to over 100 stores without spending much cost on advertise for this market How actually does it attract these local consumers?Due to the economic development, the meliorate living standards, Goods and services are no longer enough (Pine Gilmore,1998). Todays consumers expect more from companies than ever before. The consumer environment has been gradually changed into a new experience economy era. People are seeking for a more spiritual than material experience. Catering has changed to a culture and art as customers trace a modern and playful lifestyle. To survive in this new competitive economy, the company must not only concentrate on market strategies, brand image, innovation features, service quality, decoration and setting, but also a full range of service process planning, so as to create continuous profits for the business.Based on this researchs background and motivation, business operators have emphasis on quality of product, innovation of management, and service differentiation to create the customer experience in this keen competitive catering industry. tomcat Peters (2007) believes a good brand image can attract the consumers science and enhance customer satisfaction gradually, to obtain customer committal by every decreed experience.This research targets 10 Starbucks stores randomly in Hong Kong, to look the customers experience, brand image, and inscription, so as to find out what consumers experience on this new lifestyle, and gain in-depth understanding to develop effective marketing strategies, and to maximise the customers perceived experiential value.1.4.1. CustomerIt substance a party that receives or a person who consumes products or services and he has the ability to contract surrounded by different products and suppliers. Robert Passikoff (2006) interprets that usually customers can finally find out below 4PThe Products(services) that they are interested in.The Places this product may be purchased.The Prices are competitive or not.The power and control of Promotion.Though, one important delegate to be noticed is that a customer does not mean a consumer, as there are impertinent Customer and Internal Customer(Tennant,2001). External Customer is not directly connected to the organization. Internal Customer is a person who directly connects to the organization, and they may be stakeholders.In this research, customer means the person who spends money in Starbucks stores in Hong Kong.1.4.2. Customer ExperienceIt refers to individuals accumulating to produce a kind of experience after a period of time or activities, by this experience, a inhering psychological state will be created(Pine Gilmore,1998). In this study, the experience is defined as a subjective mental emotional response, evaluation and cognition to Starbucks.Experience begins with an interaction between the customer and the product or the company(Dinna LaSalle,2003), thus, it cannot happen without the customers involvement. Customers spend time and money to get more memorable or more highly cute experiences (Pine Gilmore,1998), the value of experience lingers in the memories, yet experience results in thoughts or feelings and both can be positive and negative. Marketers manage to develop the positive experience. Moreover, if the company can deliver Value Experience to a customers life, that product or service will transcend its ordinary price to stupefy extraordinary or even priceless (Dinna LaSalle,2003) For this reason, economists summarized the recent marketing and economic research into happiness as experiences over commodities and entertainments. (Pine Gilmore,1998).Starbucks creates a calm atmosphere inside its stores to attract people to come in, linger and return. It introduces the concept of the third Space a space other than home and work, where people can spend time studying, working on their laptops, reading, meeting friends or even holding their formal meet ings All stores have leather couches for those people who prefer to relax in comfort, and for those who want a more structured environment to study or work, there is a choice of tables with hard-backed chairs. Just like Starbucks says Life happens over the coffee.1.4.3. Brand imageThis refers to the enterprise that provides products, services or engaged in community, it also relates to information and subjective impression in the consumers opinion.(Walters,1978)Starbucks maintains a unique coffee culture, as Zhang Xi says in Starbucks The commonwealth of Coffee (2005), Coffee comes from west, Starbucks originates in the United States, but the culture of Starbucks coffee is from the world. This culture starts at the planting of every single coffee bean, as Howard Schultz persists in coffee quality, then merged with the traditional romantic European style of decoration in the stores, it comes out with a brand new experiential corporation culture, which is so-called today Starbucks Cul ture.Howard Schultz led a expression from the lectern in Shanghai National Accounting Institute on 3 June 2006, he tells the audience that Starbucks spends very little on publicize or promoting, but Statbucks brand image is recognized by everyone in the world This is a practical example to explain when Experiential marketing is done right, the brand can be successful without expensive publicizing campaigns or slashing its price1.4.4. Customer loyaltyThis is a kind of satisfaction established by a customers full acceptance at the intended level. It also results in consumption or other differential gear positive support behaviour. Customer loyalty metrics can flyer how the consumer engages with a new product or service(Robert L. Desatnick,1988). Peter Drucker says, Those brands relying on advertisements cannot be better than those relying on customer loyalty. Thats why without customer loyalty and higher(prenominal) levels of engagement, business cannot be successful.Below are the examples that to recognize customer loyalty is a great profitable factorStarbucks Starbucks originally opened in Seattle in 1971 as a store that sold coffee beans equipment. Since Howard Schultz get together the company in 1983, the brand name now owns more than 17,000 stores, in over 55 countries around the world. This is just the best evidence that loyal customers contribute to the rapid growth of the business.Google Have you ever noticed that Googles initial public offering price was US$85 on Aug 19, 2004? Today it is worth US$ 655.76 per share, that is an increase of 7.7 times over eight years. Its success has great relevance to its Google Loyalty Programs.Apple How many people could ever have imagined the run and growth of Apple? From its annual report in 2011, its net gross sales amount comes to US$46,333 Million, compared to 2010 which was US$26,741 Million, it has increased by 73% indoors ONE year. It is not easy to find if Apply offers any loyalty programs or discou nts, but indeed Apple can win its fans loyalty through its rapidly changing products It meets customers expectations and excitement.