Starbucks in South Africa

Goal for this assignment: Apply analytical skills and tools gained from the text book discussions to thoroughly analyze foreign business markets. Describe the economic environment and target culture by using relevant indicators. Suggest strategies how to succeed in a foreign market.

Rules: Address the points below in essay format. Write your analysis in sections and use the suggested headings for each section listed below. Your assignment should be 8-10 pages double spaced (not counting title, reference pages or appendix). You must use proper grammar and proof read your paper. Use Times New Roman 12 point font, 1” margins all around. This is an individual assignment. Plagiarism is against University policy; do not copy and paste from sources. You may use graphs and pictures if they help to explain your point. Do not use them as page fillers.

Submit through the Turn It In drop box “Marketing 495 final paper”. No email or late submission accepted after May 4, 11.59pm. Points will be deducted if you do not follow these guidelines.

Grading: You will not be graded on whether I think your plan is successful in real life. Instead, I will grade on your correct application of text book material, chapter concepts, terminology and definitions, and most importantly, depth of analysis and logical reasoning for your steps.

Case for analysis: Starbucks is fast food’s second most known brand with coffee outlets in 78 countries. Consumers generally think of Starbucks as successful venture anywhere it sells its coffee. But Starbucks has unanticipated challenges in some markets. Taste, the South African brand holder of Starbucks, launched Starbucks coffee distribution in 2016 but reported its operation an unprofitable venture. Taste is considering a new strategy to optimize meeting its markets. For this, you must become an expert on Starbucks, and its South African venture and strategy. Further, you must learn much about the coffee consumer and eventually apply and suggest strategies that help Taste to succeed.

Your task is to explore the shortcoming of Starbucks in South Africa. Name and describe in depth at least three major contributor/reasons for the lack of success and suggest an alternative strategy to the Brand holder.

Starbucks in South Africa: Describe the marketing situation Starbucks faces in South Africa! Use facts to highlight the problem and name three preliminary reasons for failure in South Africa. (10 points)
Environment: Describe the marketing environment Starbucks faces in South Africa! This includes ‘painting’ a picture of the (a) economic landscape, (b) offer basic consumer facts, (c) describe the political and regulatory climate. (15 points)
Cultural Influences: This section must describe the cultural forces at play. This includes general cultural forces and those pertaining to the product at hand; in other words the consumer culture. Describe the consumption of the product What, Where, When, How the product is consumed. Be thorough as these details will and must feed into your segmentation analysis. (20 points)
Research Methods: What type of research are you currently conducting (primary vs. secondary) and explain each and advantages and disadvantages of this method. (10 points)
Entry Mode Selection: Describe the method of entry Starbucks utilized in South Africa? Compare this method to other methods of entry in terms of control and risk over the marketing mix! Make sure you understand your method before you write. (10 points)
Market segmentation and target market: Conduct an STP analysis. (S) This means you must perform a segmentation analysis based on market knowledge you acquired. In an ideal case you would integrate knowledge from findings on consumer culture. (T) After that, describe your target market in your country and give a logical explanation for selecting this target market. Describing your market by using age only would appear insufficient, so you must go deeper. (P) Suggest a possible position strategy! (20 points)
Conclusion: Conclude and summarize your strategy suggestions (5 Points)
References: use proper references in APA style. Include at least 5 references from reputable and reliable sources. I.e. pasting a web link will not count. (n.d.) references may be used but do not count. Use in text citations! (5 points).
Clearly proof read the paper and use proper grammar. (5 points).
Your similarity index in Turn-it-in must not exceed 15%. Each percentage point above 15% will reduce your score by 1point. Ex. If you submit 18% similarity, you will be deducted 3 points. 19%=4 points, etc.