Marketing in a global economy
Star bucks (SBUX) faced a reputational risk in Italy. One of these risks was the fact Star bucks merely roasted coffee. This was not quite competitive enough compared to the Italian cafes that had a smell of chestnuts and a sound of opera. On his mission to venture into the Italian market, Schulz noted how the Italians take coffee in the coffee shops. Schulz realized that how much the Italians valued coffee (Faris, 2012). The Italians valued coffee such that they did not just drink it in restaurants, dinners or kitchen tables like the Americans do it. The Italians went to another level by making cafes as part of their societies. They would come with their families while taking coffee. Schulz noticed that, according to the Italians, coffee would not just be a drink; it would be an experience. This is one critical point that the Americans and the American market lacked (Faris, 2012). The Starbucks only limited its coffee to roasting, and this was a major challenged that would bring a lot of competition amongst the Italian cafes. Starbucks was subjecting itself to immense risk by limiting itself to roasting coffee. Schulz pointed out that coffee was like epiphany according to the Italians. Once he had noted the point that Starbucks lacked, he almost begun to shake. The Italian coffee shops inspired Schulz.
Italy represented the point of inspiration for Schulz, which made him expand Starbucks to other countries across the globe. However, Schulz was reluctant to venture to Italian market after the coffee shops in Italy had heavily inspired him. Schulz even dodges the question that Ryssdal asked him (Faris, 2012). He refuses to admit that he is afraid to venture into the Italian market. Perhaps he fears that the strategy might to work well in Italy since it is already in use. The Italians have already adopted the marketing strategy that Schulz is using to venture into other markets across the globe. This is an idea that Schulz had from the Italians, and he is afraid the idea might not work excellently in Italy as it has in other countries. Schulz is a schemer in marketing because he knows that the Italian coffee shops pose a threat to Starbuck business since the Italians are familiar with the marketing strategy (Faris, 2012). While he says that he does not think he is afraid to venture the Italian market, he knows very well that it is a lie. He prefers to apply the same marketing strategy to other countries that are not familiar with the adaptation of the coffee shops.
Schulz is also reluctant to mention the cafes that he visited during his 1983 trip. This is because he does not want to reveal his secret of inspiration. An example of a coffee shop that inspired him was Caffe Miani. This is Schulz’s marketing strategy. It is critical for businesspersons to be secretive of the strategies that they use to achieve their goals. This scheming strategy is a weapon that Schulz used to bring Starbuck to the limelight of a global competition. Schulz is not ready to reveal this to anyone. He is also not ready to venture into the Italian market because he is afraid he might not succeed.
References
Faris, S. (2012). Grounds zero: A Starbucks-free Italy. Bloomberg Businessweek. Retrieved
from ProQuest
