An Analysis of Starbucks Marketing Strategy and Innovation in the Chinese Market

Abstract

As the number of Starbucks shops in China continues to increase, Starbucks focus on creating high-end products has neglected some of the basic needs of the consuming public. With negative press, the emergence of more and more peer competitors, and the impact of the new crown pneumonia epidemic, Starbucks should change its current status quo, improve its reputation, make corporate innovations, and change marketing strategies. This paper will analyze Starbucks current internal and external environments as well as its marketing strategy using a combination of theory and practice, using SWOT analysis theory and a comparison with competitors such as Luckin Coffee and %Arabica Coffee to elaborate, and give some feasible suggestions for corporate innovation. Through SWOT analysis, Starbucks should adopt a coffee + strategy to bundle sales, increase the variety of coffee derivatives, expand partner brands, and take advantage of the Internet to create a Netflix brand to drive traffic.