Having a good brand name is not enough to make Starbucks Coffee successful in terms of profitability in countries outside the United States.
The first few Starbucks International retail stores opened in Tokyo back in 1996; U.K. market in 1998; London and Manhattan in November 2005. (Mercer, 2005) Starbucks was able to penetrate the U.K. market through the acquisition of roughly 60 Seattle Coffee Company outlets and re-branding the stores as Starbucks. In September 14, 2006, Diedrich Coffee, the rival of Starbucks Coffee announced selling 40 of its company-owned retail stores to Starbucks. (Juice Caster, 2006; Breitbart.Com, 2006) Despite the company’s aggressive behavior in terms of its expansion in the global market, Starbucks is not present in the Italian market.
Aiming to give the readers a better understanding of the subject matter, the origin of Starbucks will be provided followed by discussing the company’s product-line, the importance of knowing the basic marketing concept and the cultural analysis on international marketing. Upon analyzing the market environment of coffee retailing industry in Italy, some of the most controversial environmental and marketing factors that made Starbucks unable to penetrate the Italian market including the consumer behavior of Italian coffee drinkers will be thoroughly discussed.
The establishment of Starbucks Coffee that we see in the market today originated in Italy. Back in the early 1980s, Howard Schultz visited Milan’s espresso bars which gave him the idea of the coffee market potential in the United States (Starbucks, 2009a).
Although Starbucks was able to adopt some of the Italian culture, the company had no choice but to redesign the whole coffee experience based on the preferences of the U.S. target consumers. The cultural differences between the U.S. and Italian market is probably one of the main reasons ...