Introducing Starbucks to Hungarian market
INTRODUCTION
This report is written and analyzed using a detailed marketing research and comprehensive view of the Hungarian coffeehouse market. Our aim is to introduce Starbucks coffeehouse to Hungarian market and reflect to the benefits we provide for our potential customers and investors. Starbucks is an international coffee and coffeehouse chain based in Seattle, Washington, United States and it is the largest coffeehouse company in the world. Opening a new coffeehouse in Hungary is a new option to gain more satisfied customers and bring American coffee culture to Hungary.
MARKETING RESEARCH
As I mentioned above Starbucks is the largest coffeehouse company in the world with 16,635 stores in 49 countries, including 11,068 in the United States, nearly 1,000 in Canada and more than 800 in Japan. Coffee plays a large role in much history and literature because of the large effects the coffee industry has had on cultures where it is produced or consumed. Coffee is often mentioned as one of the main economic goods used in imperial control of trade. Nowadays the coffee drinking habits changed and people wants their coffee to take away. People usually drink coffee when they need energy to be awake or just simply want to relax with a cup of coffee and have a relaxing time in a friendly environment. This is the basic idea of Starbucks worldwide. In Hungary one can find lot of places where they sell coffee but there is not such as big coffeehouse chain as Starbucks with its typical wide range products and services. It is known that worldwide, Europeans drink the most coffee. Almost every adult in Hungary drink minimum 1cup of coffee every day. This fact lead us to conclusion that Starbucks could provide high quality products and services to Hungarians.
PRODUCTS AND SERVICES
When talking about coffee, Starbucks is a well-known coffeehouse brand on the market if not the most well-known. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and paninis, pastry, snacks, and items such as mugs and tumblers. Many of the company’s products are seasonal or specific to the locality of the store. When people drinking coffee they usually drink any other beverages and cold drinks due to the fact that coffee dehydrates the body. Starbucks offers a wide range coffee products, beverages and snacks which quality is guaranteed.
Starbucks offers to his customers not only high quality products but high quality services as well. As technical improvements such as laptops and smart phones became part of our life Starbucks also tries to make their coffeehouses compatible with these devices. Who wants to sit in a coffee house where there is no internet connection, where you cannot browse your mails or even work online? Starbucks has agreed to a partnership with Apple to collaborate on selling music as part of the “coffeehouse experience”. Apple announced that customers would be able to browse the iTunes Store at Starbucks via Wi-Fi in Hungary (with no requirement to login to the Wi-Fi network), targeted at iPhone, iPod touch, and MacBook users. The iTunes Store will automatically detect recent songs playing in a Starbucks and offer users the opportunity to download the tracks. Some stores feature LCD screens with the artist name, song, and album information of the current song playing.
These technical details could also lead to a big success of Starbucks in Hungary.
PRICE
Prices of Starbucks coffeehouse compared to other coffeehouses are almost at the same level. It is a new brand in Hungary that sets new standards in the field of coffee market. Taking this into consideration, the price is really an important feature in ensuring the reception of the coffee and also making sure the Starbucks products garners a reasonable market share when comparing it to existing coffeehouses. When introducing Starbucks products there should be discounts for some products which are not popular in Hungary to let people know about them and as the time passes new consuming habits can develop. The main aim is to bring high quality products and services on affordable price.
PLACE
The best location for a new Starbucks will be in capital of Hungary, Budapest. The reason is that capital cities are densely populated and also lot of foreigners lives there. It should be located in a place which everyone knows and is easy to reach by car and also by public transportation. Pedestrian zones and large shopping malls are preferred. The building of Starbucks needs to be unique that everyone know about it and also can attract people who never heard about Starbucks. V�ci street looks like the best option where to open Starbucks. This street has historical background and is one of the well-known streets in Budapest. After a long sightseeing tour in the city or a never-ending shopping Starbucks will be the best solution to refresh our customers bodies and mind.
PROMOTION
Starbucks can be advertised in television, radio, newspaper, on billboard, in cinema and via Internet. “Premium games” should be organized in medias. It means that a game is organized in some sort of media and somebody can win a gift, in this case, the gift would be Starbucks coupon with a date when the winner can drink and eat as much as he wants, thereby creating awareness.
CONCLUSION
In conclusion, there has been a thorough market research, in making sure this new coffeehouse being introduced to the Hungarian market becomes a success. The demand is already present, people will be willing to consume our products once they know the quality. With the price and all necessary logistics set in place, this new coffeehouse will surely be in contention for a huge market share of the Hungarian market.
RECOMMENDATION
The Budget for distribution, promotions and marketing in general should be calculated well in advance. This way financial constraints can be avoided and thus making sure all the strategies set in place are fulfilled with no hindrance.