International Marketing

Controllable elements is which management control the internal forces, for example the factors of production and the activities of the organization. (Ball et al., 2008). The controllable elements that Starbucks has encountered in entering global markets are price, product and promotion.

  One of a controllable elements that Starbucks encountered in entering global markets is pricing strategy. Starbucks using premium pricing strategy to entry global market. Starbucks using premium strategy because they are using high-quality Arabica coffee beans and selling specialty coffee to consumer they also provide a pleasant environment and wonderful service to consumer. In Starbucks not only selling a cup of coffee, they also providing an experience to consumer (Bordalo, Gennaioli and Shleifer, 2015). For example in china, Starbucks set a higher price compare with their competitor McDonalds. Starbucks sell a medium size latte is 27yuan and McDonalds sell the same size latte is only 20.80 yuan. The reason Starbucks set higher price because they using the high quality arabica coffee beans and provide a good environment and good service to consumer. Its outlets in China provided larger sitting area, plush chairs and music to consumer. In this ways, the brand was widely accepted and become a symbol of status (Patterson, Scott and Uncles, 2010).

Besides that, product also one of a controllable elements that Starbucks encountered in entering global market. Before Starbucks entering a country, they will do market research to determine and understand weather their product can fit into the country, culture and taste. Not only that, Starbucks also localize their product and menu to fit the country (Seaford, Culp, and Brooks 2012). For example, in Japan Starbucks creation matcha frappucino with matcha green tea and sweet red beans and providing smaller drinks and pastries to fit into local taste, in India Starbucks had sold Murg Tikka, a chicken dish sold at their outlets (Rajasekaran, 2015). Moreover, in China Starbucks will celebrate Chinese traditional day with local people, for example they sold mooncake during Chinese moon festival, it strategic maintaining Starbucks branding advantage (Han and Zhang, 2009).

Seaford, B, Culp, R, & Brooks, B 2012, 'STARBUCKS: MAINTAINING A CLEAR POSITION', Journal Of The International Academy For Case Studies, 18, 4, pp. 35-49, Business Source Complete, EBSCOhost, viewed 1 December 2017.

Ball, D., Geringer, J., McCulloch, W., McNett, J. and Minor, M. (2008). International business. Boston, Mass. [u.a.]: McGraw-Hill/Irwin.

BORDALO, P, GENNAIOLI, N, & SHLEIFER, A 2016, 'Competition for Attention', Review Of Economic Studies, 83, 2, pp. 481-513, Business Source Complete, EBSCOhost, viewed 29 November 2017.