Starbucks’ Post

Today I was going through my old files, and I found the final group project for my Market Research class at Universidad San Francisco de Quito about the "Feasibility of Implementation of the American Franchise Starbucks Coffee in Quito, Ecuador." I conducted extensive background research, including a full demographic study of the target market, exploration of Ecuadorian consumption patterns, SWOT analysis, industry research, competitors' analysis, and data from other countries in the region. Then, to gather primary data on the topic, we conducted a survey using a sample of 150 people from their main target market. Some of the findings included: 🌟More than 50% of the population drink coffee frequently, and only 30% prefer to consume it at home 🌟More than 50% of the respondents said it is indifferent for them if the coffee they consume is local. They value aroma and flavor more 🌟When they go to a coffee establishment, they value customer service, a good environment, and a variety of product offerings 🌟People prefer to consume coffee in the morning (6-9 am) and in the afternoon (3-6 pm) 🌟 Starbucks already has great positioning, with almost 90% responding that they are familiar with the brand, and less than 10% mentioned they would not want the brand to enter the market 🌟Price-wise, 17% are willing to pay a higher value for its products, but 75% would pay the same value compared to its competitors. Therefore, we concluded that the project is feasible for the reasons mentioned above (plus other findings and a financial analysis). Fast forward four years, and now it is happening! I conducted a sentiment analysis on social media about people's perception and reaction to this news, and there are certainly some mixed feelings, but I am looking forward to seeing the strategy and tactics they will use to gain market share! Starbucks you might already know all of that, but it doesn’t hurt to share it anyway, right? 🤗 #starbucksecuador #starbuckslatam

Interesting read on the highly competitive coffee space in China right now. While Western chains certainly have to be concerned with all of the many coffee upstarts on the mainland today, I think the real question will be to see how things shake out as many of these brands--Luckin, Cotti, Lucky, etc.--turn to other parts of Asia and even the U.S. and Canada for expansion opportunities.

🔔Canadian Tim Horton to open its first SG store through help of Japanese trading firm, Marubeni. Pickup: - TH’s third SE Asia foray - TH will be running several promotions; the first 100 customers daily from Friday to Nov 19 will enjoy a free regular cafe latte every week for six months - The next outlet will be launched at Nex in December, followed by Suntec City in January and One Raffles Place in April, TH aims to have 10 to 15 outlets in SG by the end of 2024 “According to International Coffee Organization, the increase in coffee consumption has become a well-established global trend. In SEA coffee consumption is expected to grow faster than this trend, driven by economic development such as rising income levels and increased urbanization, and shifts in consumer behavior. Especially among Millennials and Gen Z consumers, coffee shops are increasingly used as a social spot and online ordering and delivery services support customers’ desire to drink fresh coffee anytime and anywhere. Coffee shops are also now the “third-place” for social congregation, beyond work and the home.” - Marubeni https://lnkd.in/dWF9eW9F https://lnkd.in/dZh46Tsy

Positive momentum from Jollibee, one of the Philippines’ flagship and most recognized consumer brands. First-half growth, supported by demand in China and the US, and expectations for a buoyant second half, suggest continued momentum worldwide. The company plans to add between 550 to 600 new stores worldwide, adding to its 2022 global network of 6,542 stores. The company is also rapidly expanding in Vietnam with its eye on market dominance in the near future. The JFC Group's worldwide brand awareness, expansion opportunities, and growth potential serve as a model for the next generation of Philippine consumer brands seeking to expand globally. Neome Mancao Victor Allan Diola Jazzy Pangasian Jennifer Dela Cerna #philippines #foodandbeverage #globaleconomy #philippinerealestate #asean #poultry https://lnkd.in/gCtxATGY

☕ Tech Startup or Coffee Chain? ☕ A Chinese brand has surpassed Starbucks in the number of outlets in China... And it did so in just 6 years! Meet Luckin Coffee, the tech-savvy local coffee chain with over 10,000 stores, giving Starbucks a run for its money. 🇨🇳💨 Founded in 2017, Luckin Coffee serves its brews at affordable prices and thrives on an app-only order and checkout system, even if you're inside of the actual store. I admit I prefer to actually speak to a person when I actually go to a cafe or restaurant as part of the experience, but it surely beats queueing. 🚶♂️🚶♀️ They also recently went viral by partnering with the famous and exclusive alcohol brand Moutai to create a baijiu-flavored coffee. Talk about diversification! 🍻☕ Their success isn't just about being affordable; it's about understanding the local palate. Brands that go global need to localize to truly resonate—something we've discussed often at Darling. Think about KFC or adidas in China, or DJI and SHEIN globally. 🌍🎯 Luckin's model relies on high-density, small-format stores and heavy discounts, making it more accessible than Starbucks. Is this the new era of coffee culture in China, blending tech and tradition? 📲🍵 What do you think of tech replacing service in the hospitality industry? And how do you see the role of local brands challenging international giants in their home market? Share your thoughts in the comments below ☕👇 #LuckinCoffee #ChinaTech #starbucks #innovation #GlobalBrands 🌟 Want the pulse of China's creative and tech industries? Follow me and also keep tabs on the China Advertising Association and the China International Advertising Festival (CIAF). 🚀 💡 Ready to elevate your brand or decode China's complex market? Let's talk—reach out for an inspiring keynote or tailored consultancy. 🌐

Ever wondered about the IP strategy behind the scenes before foreign brands launch in Singapore? We unveil the trade mark foresight behind a successfully planned launch. Find out more in our 5-min read: https://lnkd.in/g22RgfVX #IPstrategy #LetsTalkAboutYourChallenge #THATistheway

Australian roaster Toby’s Estate was acquired by conglomerate UCC Holdings Co. and is now scaling up global expansion by entering the Gulf Cooperation Council market. With an expected annual growth rate of 9.6%, it looks like the GCC market could be the next big stop for expanding brands, and #coffee conglomerates like UCC seem to be aware of that. In today’s article, Gabriela Oakley speaks with Osamah A. and Bogdan Prunila about how specialty coffee chains scale up, the opportunities for expansion in the GCC market, and how #multinationals are tapping into #emergingmarkets with a strong demand for specialty. Learn more: https://lnkd.in/epcaXhn4

Thi expansion strategy should be understood by the growers countries.

“As a price war intensifies in China’s coffee market, Starbucks Corp. Founder Howard Schultz said the U.S. coffee chain isn’t joining in with local affordable brands’ steep discounting. Starbucks has to ‘recognize that competition is happening,’ but ‘I’m not spending one minute of my time worrying about’ it and will strictly focus on the business itself, Schultz said Saturday at a forum hosted by the School of Management of Fudan University in Shanghai. Acknowledging that customer preferences are changing, Schultz, former CEO of the company, said ‘adjustments won’t be dramatic.’ Customers will upgrade their preferences from low-end and discount coffee over time, so what Starbucks needs to do is ‘continue to earn the respect of the marketplace,’ he said. ‘We believe that if you play the long game and you continue to innovate on the edges, the marketplace will take care of itself,’ Schultz said. Starbucks lost its crown as China’s biggest coffee chain in annual sales last year to domestic rival Luckin Coffee Inc..” “Luckinhas been aggressively expanding its store count across the country, while leading a year-long price war with upstart Cotti Coffee that has seen prices as low as 8.8 yuan ($1.20) per cup of coffee. In response, Starbucks is accelerating its push into China’s smaller cities, Belinda Wong, chairwoman and co-CEO of Starbucks China, said during an earnings call in January. Since opening its first Chinese mainland store in Beijing in 1999, its strategy had long been centered on the country’s first-tier cities, offering relatively expensive coffee to the urban middle class and businesspeople. However, many consumers have tightened their belts following the pandemic, as a weak economy, real estate slump and high unemployment rattle confidence. All of this is driving the U.S. brand to expand its customer base across the country. Schultz also highlighted the importance of staying innovative to attract customers.” “‘In today’s marketplace, the worst thing that you can do is embrace the status quo,’ he said. He also weighed in on China-U.S. relations, putting Starbucks forward as an example of how the two countries can coexist in harmony. ‘Starbucks holds a unique position,’ he said, explaining that while the coffee brand is American, it has developed significant operations in China. The company employs more than 60,000 people in the country while serving millions of Chinese customers, he said. The vast majority of Americans have never been to China and only know about it from what they read and hear, Schultz said, promising that when he returns home, he will do everything he can to tell a true story about China. By doing so, people can ‘calm down and believe the truth and get the disinformation aside and not listen to all the things that are creating this kind of rhetoric, propaganda and fear both here in China and in the U.S.’”