Starbucks failture in Australia

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Background:
For decades Australians enjoyed a variation of the 'lifestyle coffee experience' that Starbucks created from scratch in the USA. Australians did not need to be introduced to the concept of coffees as many other countries did. It is fair to describe Australia's coffee culture as mature and sophisticated.This established culture saw Australians typically patronise smaller boutique-style coffee shops,with people willing to travel out of their way for a favoured cup of coffee.
Main issue:
In recent times however things have started to go wrong for Starbucks in Australia. Starbucks announced that it would be closing 61 of its 84 stores in Australia. These closures saw 23 stores kept in prime locations in Sydney, Melbourne and Brisbane. Why do this thing to happen? According to this case, it is clearly to see Starbuck’s strategy of global domination cannot adapt to the local Australian market. Because Starbucks lack of consumers need in services and respect the Australian coffee culture.
Theory:
The fact is that consumers experience and the Australian coffee culture analysis need to join the CRM system to develop business strategy and create value for the enterprise.
In the Australian consumer habits and value, cafe as the third place to attract people’s attention. Starbucks was not even delivering on its core promise of serving superior coffee in comfortable surroundings. Australians aren’t just buying coffees, they also buying a lifestyle experience in the cafe. Also, a thriving urban cafe culture was already in place before Starbucks entered Australia. Australian like to talk face-to-face with staff in cafe and want to see their coffee made that way and has also had implications for taste. CRM systems can identify consumer and develop products specifically to meet the needs of individuals consumers with mass customisation.
CRM programs that allow them to talk to individual customers and adjust elements of their marketing programs in the light of how each customer reacts to elements of service marketing mix.
Recommendation:
1.Identify customers and get to know as much detail as possible;
2.To differentiate customers in terms of both their need and value;
3.Should to customise some aspects of services they offer to customer.。

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