question 3

Question 3

3.1. Expanding to the Italian market is a challenge for Starbucks because Italy is country where drinking coffee in cafes originated from. Despite the love for coffee by Italians, the market is fragmented with many competitors (Fellner, 2008). Breaking into this competitive market will be a risky venture by Starbucks. The other main reason is that it will be a challenge is that Italy represents the height of coffee culture and produces the benchmark that others are judged. Starbucks can incorporate two concepts in an advertisement that it can use to create a favorable image in the Italian market.

The firs concept that it will be incorporated in the advertisement is that strabucks uses Arabica coffee instead of Robusta coffee. Most Italian coffee brewers use Robusta coffee beans that give a bitter and astringent taste, but Starbucks is known for using Arabica beans that give intricate flavors. Starbucks has evolved by adopting Italian coffee culture and improving it, and this may be a competitive advantage in entering the market because some regions such as Northern Italy prefer Arabica coffee albeit with a lighter roast (Faris, 2006). Starbucks can mould its practices to suit the demands of the Italian market and coupled with its other strengths such as strategic locations and visible display of its products, it can break into the Italian market.

The second concept to be conveyed in the advertisement is that Starbucks infuses leisure into the coffee culture. It is evident from an Italian visit that most cafes do not have places where one can just relax with a laptop or read a book. This has made Starbucks more than a coffee selling place in that it offers opportunities to relax away from the office or home, chat with friends or just sit and while the day away (Fellner, 2008).

3.2. Although Starbucks relies on “word of mouth” to promote itself, a television commercial targeted for the Italian market must incorporate the following concepts. The first concept for the advertisement is product quality. The advertisement must contain the message that Starbucks offers a delicious aroma and rich taste to its consumers. The second message that the TV commercial must convey is that Starbucks offers a place between work and home for its customers. A distinct atmosphere where individuals can meet, relax and surf the web. This will serve as a strong branding message for Starbucks. Customer satisfaction is the other concept that the advertisement will convey. The advertisement must portray the company as offering superior customer service from the time a client enters their store to the last drop of coffee. It should focus on customization, where individual choices are allowed and their needs taken care of. Lastly, the TV advertisement should convey the message that Starbucks is a value driven company that addresses environmental concerns as part of its social responsibility (Fellner, 2008). An example of such a message is showing that Starbucks uses recyclable tissue.

Reference

Fellner, K. (2008). Wrestling with Starbucks: Conscience, capital, cappuccino. New Brunswick, NJ: Rutgers University Press.