International Marketing

Semester 5 Unit 2

Dr. Driss FADDOULI

Chouaib Doukkali University | National School of Commerce

and Management
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READING

Coffe Culture comes to Coffee Growers

By John Authers and Mark Mulligan

In Chile, they prefer tea to coffee and instant rather than freshly brewed. In argentina, by

contrast, breakfast is with a frothy cappuchino, a heart starting expresso, or a caffé latte. In

Brazil, after-dinner coffee is served free at any self-respecting restaurant.

That Latin America is not one great homogenous culture often surprises travellers.

However, even the most subtle differences in the consumer profile of a Colombian and a

Venzeulan will not have been lost on Starbucks, one of the fastest-growing global brands.

After seraches for local partners and a trial run in Mexico city, Starbucks arrived in South

America. With no convential advertising, the Seattle-based company opened stores in Lima and

Ssantiago withing 24 hours of each other. Neither Peru nor Chile has a mass-market café culture,

although European and US-style coffe houses have begun springing up in the upmarket districts

of both their capitals.

Despite this cultural peculiarity, a Starbucks survey found that Chileans on average drink

only 150 cups of coffee a year, compared with 345 in the US and more than twice that number in

many European countries. Of the 800g of coffee per capita bought in supermarkets an from

speciality shops each year, 90 per cent of it is instant. In Argentina per capita consumption is

about 4kg a year, mostly n whole or ground coffee beans. Despite being a coffee-grower, Peru

has a similar pattern of coffee consumption.

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The irony is not lost on Julio Gutiérrez, head of Latin America at Starbucks Coffee

International. "We’ve been doing business in Latin America for decades," he says. "We haven’t

had any stores but we’ve been buying Latin American coffee since the beginning." "Expansion

will depend entirely on how long it takes to find he right partner in each of those countries," he

syas. "If we don’t find anyone, we may think about going in ourselves."

Anyone who knows the Starbucks story can alrady visualize potential outlets in the most

fashionable neighbourhoods of the region’s capital cities. From a single store in Seattle’s Pike

Place Market in 1971, Sstarbucks today owns 3907 stores in North America and licences a

further 1378. They also own 437 and franchise 1180 outlets in the rest of world. It first expanded

from its home market to Japan in 1996 and is now present in more than 30 countries. Last year

alone, the Starbucks’ living –room-in- a coffee house fromat was introduced to Mexico,

Germany, Spain, Austria, Puerto Rico, Oman, Indonesia and southern China. Starbucks

"corners", or mini-outlets, are found in airline offices, sports staduims, airports, hotels and

bookshops. Copy-cat coffee-bar chains have emerged, only to be swallowed by Starbucks or

forced to merge with competitors.

Fortune and fame, however, have not come without their critics. Some analysts say that

the company was forced to globalize because it had saturated its home market. Others say that

the Japanese experience has one been a happy one. Security concerns forced the company to

retreat from Israel, and the anti-globalization movement now has Starbucks stores on its hit list.

In aspiring societies such as Chile and Mexico, American companies are generally well

regarded and any novelty from abroad is guaranteed to arouse curiosity. Both the Lima and

Santiago Starbucks have been packed since opening their doors, and the company has rolled out

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15 stores in Mexico City since launching its first-cleverly located beside the US embassy- a year

ago. Roman Perez- Miranda, head of Latin America for Interbrand, agrees. "Mexico is the closet

Latin America gets to the US, both geographically and culturally," he says. "It was an obvious

starting-point for Starbucks in the region."

Financial Times

Questions:

A/ Read the article quickly and identify the country or countries where the statement is

true.

Argentina Peru Chile Brazil Colombia Venezuela Mexico US

1. People in this country would rather drink tea than coffee. ________________________

2. People in this country would rather drink instant coffee. ______________________

3. In this country coffee is usually free after dinner in restaurants. ____________________

4. In this country people drink 345 cups of coffee a year. ________________________

5. In this country people drink 4kg of whole or ground coffee beans per year.

_______________________

B/ Answer these questions.

1. Where and when did Starbucks begin?

2. How many stores does it own in a/ North America b/ the rest of the world?

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________________________________________________________________________
3. How many stores does it allow others to operate in a/ North America b/ the rest of the
world?
_______________________________________________________________________
4. Which overseas market did Starbucks enter first?
_______________________________________________________________________
5. In what sort of places can you find Starbucks’ sales-points?
________________________________________________________________________
6. According to the article what four problems has Starbucks had?

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VOCABULARY
Markets and Marketing

1/ Complete these statements with suitable expressions from the box.

Buying habits economic situation

Government bureaucracy income distribution
Monetary regulations political stability

1. Because of tight________________________company profits could not be taken out of

the company.

2. Red tape and other examples of__________________________hinder a company’s entry

into a market.

3. The country is attractive to exporters because it has enjoyed _______________________

for the last 50 years.

4. The purchasing behavior of consumers can be described as their

_____________________

5. The _____________________________ is improving leading to a rise in employment.

6. ______________________ is a term used by economists to describe how wealth is

shared in a country.

2/ Look at the words and phrases below. Underline the odd one out.

1- a/ growing market c/ expanding market

b/ developing market d/ declining market

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2- a/ questionnaire c/ promotion

b/ focus group d/ survey

3- a/ market sector c/ market segment

b/ market search d/ market niche

4- a/ international market c/ domestic market

b/ overseas market c/ worldwide market

5- a/ launch a product c/ bring out a product

b/ withdraw a product d/ introduce a product

6- a/ slogan c/ discount

b/ free sample d/ special offer

7- a/ retailer c/ wholesaler

b/ distributor d/ manufacturer

3/ Write each of these words next to its best definition: advertising, marketing, promotion,

publicity.

1- All the ways used to encourage demand for a product (the most general word).

________________________________

2- An activity that attracts people’s attention to a product. ___________________________

3- Telling people about a product (on TV, in magazines) in order to persuade them to buy it.
____________________________________
4- Any information that makes people notice a product (this may be unplanned, out of the

control of the company, not part of its marketing strategy). _______________________

4/ Write 5 words which best collocate with the two key words. Check any unknown

words in a dictionary.

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agency- campaign- forces- leader- mix- price- sector- share- strategy- tool

Market Marketing

1- 1-

2- 2-

3- 3-

4- 4-

5- 5-

5/ Complete each sentence with a word partnership from the previous exercise.

1- If the government does not interfere, then prices are set by ______________________

2- The four P’s give the _____________________ for a particular product.

3- The percentage of the market that you have is _________________________

4- Sponsored links on Google (when a customer searches for your product type) is

_____________________________

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ASSIGNMENT 1

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