This case study looks at what the company did right to achieve this turnaround. This was one of the reasons why the company took a hit during the economic slowdown of as customers opted for cheaper options for their everyday coffee. Starbucks was forced to shut shops that were not making profits. By March 30, , its profit had fallen 28 per cent compared to the same period in
Why did Starbucks fail in Australia? Is it the Coffee or the Marketing Strategy?
STARBUCKS (Failure in Australian Market)
Starbucks Australia and the lesson of knowing your target audience
But situation was totally different from Asia market, Starbucks reached their great success in Asia. Taking a lot factors. Starbucks Failure in Australia Introduction There are a number of different reasons why Starbucks failed in Australia and will be spoken of in more detail over the course of the report. Since World War II, Australians have developed a taste for coffee that many of the European migrants that moved to Australia brought with them.
One might think that simply having a top brand name will enable businesses to reach and be successful in any market. Then why do some top brands fail in some markets? Identifying and Targeting the correct customer segment and Positioning the product correctly is the key for success of these global brands in new markets STP in marketing framework. Customer requirements have become sophisticated and consumer involvement in many purchases is increasing. Therefore, success of a brand in a new market depends on how efficiently it identifies and targets the potential customer group and how effectively its product or service is positioned within that group.