Success in USA and Asia
What did Starbucks do to achieve success in China?
Introduced drinks to suit local tastes (e.g. Teavana series which combined China's traditional tea culture with modern innovations - green tea + cheese foam)
List the THREE main reasons why Starbucks had failed in Australia
rapid expansion, failure to adapt to local tastes, australia's strong cafe culture
Since 2015, which customer group has Starbucks in Australia focused more on? And why?
International tourists and students -> they are familiar with the Starbucks brand, spend more, and enjoy coffee and cold drinks. Keeps Starbucks profitable without competing directly with local cafes.
What emerging consumer segment does the campaign suggest Starbucks should focus on in Australia?
Generation Z, especially university students.
Which city is often considered the “coffee capital” of Australia?
Melbourne
What concept did Starbucks create in the U.S. to attract customers?
Starbucks was known as a 'third place', a space between home and work for people to relax, meet friends, study or work.
Why did Starbucks’ menu fail to connect with Australian consumers?
Because it focused on sweet, milk-heavy drinks like frappuccinos instead of the strong, espresso-based coffee Australians prefer.
Name ONE risk that can impact Starbucks' current tourist-focused strategy?
Global pandemic -> COVID-19
What established food brand was suggested for collaboration with Starbucks?
Breadtop
What is a “babycino”?
Frothy milk served in an espresso cup, usually with chocolate sprinkles
What are some Asian-inspired food or drink items sold at Starbucks?
1. Green Tea with Cheese Foam
2. Osmanthus Latte
3. Red Bean Frappuccino
4. Chai-based drinks
5. Paneer Tikka Sandwhich
How were Starbucks’ food offerings perceived in comparison to those of local cafés?
They were seen as generic, pre-packaged, and overpriced compared to fresh, locally made options
What are TWO strategies that can help attract more local customers?
1. localise the menu -> e.g. reduce the availability of sweet drinks, add Aussie treats such as Tim Tams or Anzac cookies (more local flavour)
2. Redesign the store as a community space
3. Reconsider pricing strategies -> e.g. offer student discounts or local bundles
What key Gen Z habits does this campaign tap into?
1. Social media use + trends
2. Emotional/social connections through consumption
What’s the difference between a flat white and a latte?
A flat white has less froth and a stronger coffee-to-milk ratio than a latte.