Case Study on Marketing Strategy: Starbucks Entry to China

Starbucks is one of the largest coffee chains in the World. The company has a unique style and atmosphere in their coffee houses. We chose China because it is the world’s most populous country with over 1.3 billion people live there and second-largest country by land area. After 1978, the country’s economy were underwent dramatic changes which involved such relief as permission for entrepreneurs to start up their own business and opening the country for foreign investment. It is obviously that Starbucks managers decided to take advantage of such opportunity to expand their business into new region. To evaluate Chinese market the company used several steps of analyses.

Who might be interested in buying coffee in China?

To introduce the Starbucks brand the company begun to distribute coffee for free to guests in several Beijing’s hotels in 1994. This initiative indicated that there was a strong demand for their products, particularly among foreigners in China. Local people, who strived to imitate the Western lifestyle, also showed interest for coffee drinking. In addition young generation were enchantment by brands and products from the West. These factors led Starbuck’s managers to learn and understand more about business climate in that Asia country.

Next step for Starbucks was to determine financial and economic conditions of China. Company’s managers were aware that Chinese Gross Domestic Product (GDP) continuously grew approximately 9 % on an average and a GDP per capita was US$3.800. All these factors led to rising income of middle class. That was undoubted advantage for entering Chinese market for Starbucks.… Read the rest

Guerrilla Marketing – A Case of Non-Traditional Marketing

When some starry-eyed startup or a small company takes on the big budget corporate in the marketing domain with an underground marketing campaign that costs nothing but causes shock-waves for months, its called guerrilla marketing. Guerrilla marketing is a different kind of marketing which does not involve big budget but it is about out of the box thinking; it is about using anything around to market a product, an idea or a social message virtually anything under the sun. It believes in entertaining and engaging the target customer. It does not involve preaching or educating but it is about exciting the viewer to find out a secret or solve a puzzle. Guerrilla campaigns purely depend on creativity, intensive word of mouth campaigns and its oddness like using unconventional locations. Some guerrilla campaigns are so brilliant that it has made bystanders feel lucky to be there to witness them.

AMA defines Guerrilla Marketing as “Unconventional marketing intended to get maximum results from minimal resources”.

The goals of guerrilla marketing are relatively simple: use unconventional tactics to advertise on a very small budget. It is based on the idea that one does not need radio or TV ads to market something. Make a campaign so shocking, funny, unique, outrageous, clever, or creative (even controversial) that people cant stop talking about it thus create intense word of mouth publicity. Guerilla marketing involves approaches like interception in public, giving free products, PR stunts basically any unconventional marketing approach intended to give maximum result from minimum investment. … Read the rest

Case Study: The Body Shop’s Ruby Ad Campaign

In 1976, when the cosmetics industry was making exaggerated claims about scientific advancements in skin care, Anita Roddick opened a store, The Body Shop, in a seaside town on the southern coast of England. Her product line, based on natural ingredients and age-old beauty secrets from Polynesia and the Amazon rain-forest, was a vast departure from the patented laboratory-created, animal-tested products that promised to stop the aging process, eradicate dark circles under the eyes, and otherwise correct a woman’s flaws. The products were plainly packaged, and they were not tested on animals and not promoted through extravagant advertising campaigns. Her company’s refusal to test products on animals, along with an insistence on non-exploitative labor practices among suppliers around the world, appealed especially to upscale, mainly middle-class women, who were and have continued to be the company’s primary market.

Part of the secret of The Body Shop’s early success was that it had created a market niche for itself. The company was not directly competing against the traditional cosmetics companies, which marketed their products as fashion accessories designed to cover up flaws and make women look more like the fashion models who appeared in their lavish ads. Instead, The Body Shop offered a line of products that promised benefits other than appearance—healthier skin, for instance—rather than simply a better-looking complexion. During the 1980s, when The Body Shop dominated the niche it had created, it avoided the kinds of traditional marketing used by the more fashion-driven cosmetics companies. This ‘‘antimarketing’’ strategy defied conventional wisdom in several important ways: the company had no advertising agency, it did not hire fashion photographers to photograph beautiful women wearing its products, and it did not advertise in the usual women’s magazines.… Read the rest

Case Study: Starbucks Social Media Marketing Strategy

With more than 17000 Starbucks stores in the world, spanning throughout 49 countries , and with significantly higher prices than the market average, the Starbucks enterprise is a tale of success, and a direct result of a genius social marketing and branding strategy. At the core of the business their signature fresh, dark-roasted, full-flavored coffee brews and beans consorting with specialty teas and blended beverages, the special ambiance, its principles and its sense of connection and community; it’s all about creating the ‘Starbucks Experience’, which is the soul of the business, a place to gather, talk and enjoy the allures of their savory brews, a ‘Third Place’ in people’s lives between home and work, for customers to feel perfectly comfortable and imbued with familiarity. Connecting and engaging with the customers is a very important aspect of Starbucks philosophy and one of the reasons why they have been so successful in their social media strategy.

It has been established the company’s conscious efforts towards building a relationship and creating interaction with its customers, but it took the company a few years of trial an error to finally get the formula right and assimilate the prowess of social media. It wasn’t until 2008 that Starbucks finally started to get things right and to follow the path that will endow them with the very impressive feat of becoming the number one brand on Facebook. In 2008 Howard Schultz made a comeback as CEO, refocusing the brand efforts into reigniting the emotional attachment of its customers.… Read the rest

Case Study: Marketing Strategies of IBM

International Business Machines Corporation, better known as IBM, is a multinational IT company involved in the manufacture and retail of computer hardware and software applications, and IT consulting services. The company has established itself as one of the selected information technology companies since 19th century. Adoption of marketing strategies for IBM has been a planned structure since 19th century and by means of these strategies it has earned enough success all over the world. With its growth in the manufacturing as well as marketing domains of computer hardware and software, it has gained the nickname of “Big Blue”. On marketing grounds, IBM follows strict infrastructural services, added by hosting provisions and consulting services in various areas from mainframe computers to the persuasion of nanotechnology.

Well – devised and efficient marketing strategies have been the key to IBM’ global success. The company strongly believes that devising effective marketing strategies requires making appropriate decisions that can well enhance all kinds of competitive advantages and can create all kinds of new sources of value for the purpose of improving the organisational revenue growth. According to Luq Niazi, Leader of Strategy and Change at IBM, “when the leaders of an organisation think about their business as components, it becomes clear which ones they need to own – and which they do not”. This clearly indicates the great emphasis that IBM places on the performance and decision making capabilities of leaders in devising effective marketing strategies. In addition, the firm also considers understanding the requirements and needs of customers as crucial for developing effective marketing strategies.… Read the rest

Case Study: Cisco “Self-Defending Network” Ad Campaign

Besides being one of the NASDAQ’s fastest-growing stocks during the late 1990s, Cisco was also the world’s leading producer of switches and routers that directed traffic across the Internet. In 1998 Cisco released advertising that encouraged Internet usage, which in turn increased the demand for Cisco’s hardware. Two years later Cisco’s ad agency, Hill, Holliday, Connors, Cosmopulos, Inc., introduced a $43.8 million campaign with the tagline ‘‘Empowering the Internet generation.’’ The campaign’s television spots, including one titled ‘‘Factory,’’ featured Cisco’s hardware increasing businesses internet usage, which indirectly boosted the businesses profits. After the technology sector plummeted in late 2000, Cisco did not release a campaign for almost three years. In June 2002 Cisco awarded its advertising account to DarkGrey, the technology unit of Grey Global Group. For its first few months doing business with Cisco, DarkGrey developed a campaign with the tagline ‘‘Advancing the human network.’’ None of the DarkGrey advertisements were actually released, however. When Marilyn Mersereau became Cisco’s new vice president for corporate marketing in late 2002, she turned Cisco’s advertising account over to Ogilvy & Mather, an agency she had worked with as vice president of global advertising at International Business Machines Corporation (IBM).

In 2003 Ogilvy & Mather released the largest campaign in Cisco’s history, the $10–$150 million ‘‘This is the power of the Network. Now’’ campaign. With the goal of positioning Cisco as a leader in networking technologies for businesses and individual consumers, the campaign focused on associating Cisco’s brand with ingenuity. In a television spot titled ‘‘Olive,’’ the CEO of an olive distributor was humorously shown reducing his company’s costs by optioning for an Internet-based phone system.… Read the rest