When you think of Starbucks, what do you think of? Its ever-changing drink menu, the Red Cup controversy, or maybe even the inviting atmosphere each location has? When I think of Starbucks, I think of a massive corporation and global brand that is rapidly expanding. But, I am a PR student, so that may be why.
According to ABC News, Starbucks will expand to Italy, Germany, France and Spain. The corporation already has locations in Thailand, Dubai and Saudi Arabia. Starbucks is fastly aiming to be recognized as an international brand.
With coffee being the second largest traded commodity in the world, behind oil, the brand may stand a chance in new countries. According to Starbucks, with over 21,000 stores in 65 countries, the service and connection the company creates “transcends language and culture.” But first, for the brand to expand, there will be an extra emphasis on how changes will be made to fit the new varying cultures.
In 1996, Tokyo was the first international location for Starbucks. In fact, despite this appearance 10 years ago, Starbucks has made an easy transition and is favored by many including the author behind Texan in Tokyo. Howard Behar, president of Starbucks International in 1996 told The Seattle Times that the company was aiming to gain popularity for the Tokyo locations by word of mouth. At the time, the brand had loyal customers and was able to strive in locations like San Fransisco, a location that had battling competition for coffee houses.
After seeing success in a city like Tokyo, it leaves people questioning whether it would survive in countries like Italy, Germany, France and Spain. From studying abroad in Italy, I feel Starbucks may be a tough brand to pick up by locals but because it is such a tourist targeted country, it may survive.
In Italy, I took International Marketing, a class geared towards looking at how business practices are different across the world. In fact, we spoke often about American brands coming to Italy. One we spoke of a lot was Starbucks. It was always argued that Starbucks wouldn’t survive in Italy because of the culture. Think of it this way: in Italy, Italians on average pay about a euro for a shot of espresso or a simple cup of coffee and they like to sit down to enjoy it. Starbucks has a fast paced environment where to-go cups are commonly seen and the menu is often complex.
When I traveled to countries like the Czech Republic or the United Kingdom, Starbucks locations were common and could be compared to having similar atmospheres to the United States locations. But in Italy, citizens still admire a simpler way of living like family owned businesses rather than chain stores. They simply value their traditions more than most countries these days. Countries like the U.K. have seen a turn towards the more advanced stages of life and away from tradition. In fact, the U.K., to me, is so oddly comparable to the U.S.
With that being said, will Starbucks stand a chance in these new countries? Will minor cultural changes like bars where customers stand or smaller proportions be enough to bring in revenue? This week I invite you to challenge your brain on a brand that many Americans know and love and how or if it will succeed as a growing international name.
Global PRessroom 