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Case 2-1 “Starbucks Keeps It Brewing in Asia”

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Assignment #1: Case 2-1 “Starbucks Keeps it Brewing in Asia”

N’kengie Best

Dr. Karen Mountain

Consumer Behavior-MKT 510

October 16th, 2011

1. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. China is well known for its love of tea, therefore, it is amazing how excited Starbucks is about entering the Chinese market. One executive of Starbucks stated “China is clearly a tea-drinking society-unlike Japan, which we think of as a tea-drinking society but they also drink a lot of coffee. In China, that really isn’t true (Hawkins,Del I & Mothersbaugh,David L, 2010).” There is reason for the excitement about adding Starbucks to the Chinese market. China is known for its consumer market with a population of approximately 1.3 billion, rising incomes, and increase in the outlook of global attitudes; many companies are looking to tap into the China gold mine. However, in actuality China’s coffee market is still far behind other countries in regards to coffee consumption. There was a 90 percent growth in coffee sales in China in recent years; however, the per capita consumption is still less than one kilogram per person. In the United States the per capita consumption rate of coffee is four kilograms. Tea is clearly still the number one beverage in China (Hawkins,Del I & Mothersbaugh,David L, 2010). Tea is part of China’s national heritage and is strongly rooted in their culture. It is very hard to change the routine of someone’s beverage of choice that is deeply rooted in their culture (Hawkins,Del I & Mothersbaugh,David L, 2010) One expert on the food market stated that some marketers are wary of the difficulty of transforming a tea-drinking society into a coffee-drinking society. Tea is the Chinese national drink and deemed to have medicinal

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