Analysis on the Network Marketing and Strategy Optimization of Starbucks in China

Citation

Gao, Heng. (2019). Analysis on the Network Marketing and Strategy Optimization of Starbucks in China. (Independent study, Master of Business Administration). Bangkok: Siam University.

Abstract

Starbucks has become a fashion consumer pronoun in China because of coffee.  With the rapid development of China’s economy and the spread of the Internet and 4G mobile phones, the online marketing of the Starbucks system has magically created a unique “China model.” The penetration rate of smartphones among the 15-50 age group in China has reached 95.7%, and the Internet has also changed the way people live and shop. Internet marketing has already occupied a larger market share in traditional marketing. China’s GDP has doubled several times in just a few decades, the national living standard has gradually improved, and the consumption transformation and upgrading trend are apparent. Apart from the increasing basic material needs, people’s pursuit of spiritual and quality of life has reached an unprecedented height. One of the most successful cases is Starbucks’ online marketing model suited to fit the Chinese flavor to adapt to the upgrading and transformation of major enterprises in the Chinese market.

Starbucks has taken a leading position in the industry through online marketing, creating high-speed expansion for Chinese consumer groups, impacting customers’ cognition with the environment and service of its stores, and making Starbucks stand out among numerous brands with paralleled online marketing strategies. At a time when various goods and services industries are rising, Starbucks has developed coffee into a long-term brand with a higher added value.  What are Starbucks’ marketing plans in China? What are the advantages? What are the disadvantages? Based on the investigation and research of Starbucks’ existing network marketing strategy and effect analysis, this paper proposed an optimization of Starbucks network marketing strategy, and according to the SURE network marketing theory, it current proposed four aspects: word-of-mouth diffusion, relationship integration, path marketing and precision marketing. This study concluded that Starbucks should update and optimize its market strategy design plan.

Keywords: Starbucks, Chinese Model, Marketing Strategy, Online Marketing.

Analysis on the Network Marketing and Strategy Optimization of Starbucks in China

Master of Business Administration (International Program), Siam University, Bangkok, Thailand

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