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Marketing blunders : Starbucks in Australia

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documents in English
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case study
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4 pages
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General public
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  1. What happened?
    1. Why did the company introduce the product?
    2. Why did the product fail?
    3. What was the consumer's characteristics mislead by the firm?
  2. Explain the role
    1. Culture
    2. Communication
    3. Consumer Behavior
  3. Lessons learned in consumer behaviour

The blunder is about Starbucks Company which globalize its business on the Australian coffee's market in 2000 with a great ambition. Starbucks grew up quickly by installing their coffee shop in 90 locations until 2008. However, Australian decided Starbucks was not their cup of coffee. Thus, the caffeine peddler closed almost all of his coffee, meaning millions dollars in losses.

Starbucks decided to penetrate the Australian market as they are already present in many
countries all around the world. First, in general Australians act the same as Americans people. Consequently, according to Starbucks, they should have the same coffee drinking habits than in the United States where Starbucks has the most shops open. Moreover, Australia has this reputation to be deep coffee lovers, drinking on average 3 to 4 cups a day. Thus, it seems to be inconceivable that Starbucks would not be a success on this continent.

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