Starbucks: Buck-Up in Japan

A very well-known example of ingenious marketing for the Japanese marketplace is the success of
Starbucks Coffee Shops in Japan. Starbucks is able to market cups of coffee at high-level prices,
which was inconceivable before Starbucks began with a shop in Ginza, Tokyo, in 1996. Starbucks
Coffee Japan, Ltd., is a U.S./Japan joint venture, which has achieved success through store design and
constant branding to create a sophisticated atmosphere attracting sophisticated, modern Japanese
women, who generally didn’t go to coffee shops. Starbucks’ success, of course, comes from its
accurate understanding of the intricate marketing issues at stake by conducting marketing research.
When Starbucks entered the Japanese market, it wanted a detailed assessment of its options. Intage
Inc. (www.intage.co.jp), a Tanashi-Shi, Tokyo-based full-service marketing research and consulting
firm, conducted analyses on consumer behaviour and preferences. The survey utilized Intage’s Central
Location Testing Facilities in downtown Tokyo and also mail survey methodology, as well as
resources from the research company’s Business Information Services. The survey provided some
important information to Starbucks. They understood that their intended customer segments were
willing to pay in the ballpark of 250 yen (US$2.08) for espresso and 280 yen (US$2.33) for caffe
latte. The survey also revealed that the customers wanted plenty of food items on the menu, including
sandwiches and salads. The survey in general gave the company an idea of acceptable consumer price
range, differences in prices, and packaging. This played an important part in the success of Starbucks
Japan. As of 2009, Starbucks operated more than 4,500 coffeehouses in 47 countries.
Information in These Diaries (Panels) Is No Secret

The NPD Group (www.npd.com) is a leading provider of essential market information collected and
delivered online for a wide range of industries and markets and has over 1600 clients, ranging from
Fortune 100 leaders to smaller businesses as of 2009. NPD combines information obtained via
surveys with that recorded by respondents about their behaviours to generate reports on
consumption behaviours, industry sales, market share, and key demographic trends. NPD consumer
information is collected from their Online Panel about a wide range of product categories, including
fashion, food, fun, house and home, tech and auto. Respondents provide detailed information
regarding the brand and amount purchased, price paid, whether any special deals were involved, the
store where purchased, and intended use. The composition of the panel

is representative of the U.S. population as a whole. For example, a recent study conducted by NPD
revealed that women actually like shopping for swimwear. According to the survey, women rated
their overall shopping experience for swimwear as excellent or very good, with 69 percent of
satisfied shoppers being in the age range of 35–44. The results also showed that the biggest
purchasing influences for a retail buyer are point-of-purchase display and the hang-tag description on
the suit, while for a catalogue buyer the catalogue layout is important. These findings have obvious
implications for the marketing of swimwear. Another recent study identified the top five women’s
accessory purchases as (1) handbag/purse, (2) costume/fashion jewellery, (3) fashion hair accessory,
(4) sunglasses, and (5) gloves/mittens. Such findings help department stores in determining the
product mix for women’s departments.