Sunday, January 26, 2020

Case Study Of Starbucks In Hong Kong Marketing Essay

Case Study Of Starbucks In Hong Kong Marketing Essay Chapter 1: Introduction 1.1: Research Background and Motivation Hong Kong is a cosmopolitan metropolis, it embodies both Eastern and Western traditions. Due to its rich cultural diversity and transnational lifestyle, the city offers a wide variety of international catering which is served in more than ten thousand coffee shops and food outlets. In recent years, the rapid growth of food and beverage industry in Hong Kong draws more attention from public. According to the results of the 2011 Annual Survey of Economic Activities Restaurant Sectors amounted to HK$89,300 million in 2011, representing an increase of 6% over 2010, and 12% over 2009.( Appendix A) Analysed by Food services, in 2010 total receipts of fast food shops increased in value by 8.4% over 2009, this amounted to HK$18,719.6M. Other eating and drinking services increased by 7.4% in value, this amounted to HK$35,100.8M in 2010. (Appendix B) This result obviously shows that snack and beverage industry continues to expand in the market. Coffee is a very political commodity, Roseberry says. Among coffee men, there is a growing interest in social and environmental issues by the coffee roasters of these organizations. Coffee-consuming-world represents a kind of social lifestyle as it is rooted in centuries in the Western countries. Coffee consumption in Hong Kong is 1.1 kg per capita (World Resource Institute). Nowadays, coffee is not just a pure drink for this modern generation, it is also a symbol of new spiritual lifestyle. Eating or drinking in a coffeehouse is not only a demand for coffees quality, taste and convenience, but also pursuit of fashionable leisure and elegant lifestyle. In the popular cultural discourses, Starbucks is described as driving out local coffee shops. It imposes a standardized culture on local communities, and invites consumers into a social gathering place. This culture presents the values, beliefs, customs and tastes produced or practiced by this group of people. (Solomon, Marchall Stuar t, 2008) Snacking with colleagues or friends after work provides a major socializing opportunity in Hong Kong. Young customers prefer to visit coffee shops for leisure time. Even working people are likely to use the coffee shops as their work places. Coffee shops provide an informal setting for social encounters, and more importantly these structured environments do not command a great deal of time or money from the customers, this is a small but significant move to redefine this new lifestyle in Hong Kong. Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world. There is a total of 17,003 stores in the world (as of 02 Oct. 2011) and 115 stores in Hong Kong, since its first store launched in Centrals Exchange Square in May 2000. (Appendix C) Starbucks brings the coffee experience to you! This is what Starbucks commits, and indeed, it has established as the linchpins of a desirable coffee shop experience, a systematic influence on the socio-cultural. (Craig J. Thompson,2004) In Starbucks stores, people can be immediately associated with a relaxed and intelligent experience, this is just the image of Experiential Branding which Starbucks creates. Every aspect from the posters to the Starbucks logo gives the experience it intends to portray. It is the calm atmosphere which the brand presents that not only draws people into the store, but also makes people linger and return more regularly! What is Experiential Branding? It is a discipline of how consumers understand and define the brands in terms of the experience they deliver and the lenses through which they are evaluated. Experiences are a fourth economic offering. Pine and Gilmore describe in the Experience Economy in 2003, if the consumer buys the experience, he will spend time to enjoy a series of memorable events and engage himself in his personal way. Good examples are Ritz-Carlton which offers new value to its customers in hospitality experiences by its welcome gifts; and Apple which provides in-store Genius Bars to build a remarkable experience for its customers. Yet in 2006, Robert Passikoff argues in his book Predicting Market Success that the 4P Marketing Mix cannot work effectively without Customer engagement, Customer expectations and Customer loyalty(3C). These initiatives have conspired dramatically to take place of 4P Marketing Mix in todays economic world. Nowadays more and more people focus on quality of life as they are not just living for food and warmth(Pine Gilmore,1998), they are now looking for a higher spiritual experience which is a kind of environmental service to decrease their stress from work. Many researches on marketing management are for strategies, products, services, customer loyalty, customer satisfaction, and so on, but not too many on experiential marketing and branding. Although there are a lot of studies and researches on Starbucks, some other well-known companies are even less researched on Customer Experience in Hong Kong. This research will further the previous study structure to investigate the connections among Customer Experience, Brand Image and Customer Loyalty, and hope to find out how Starbucks carries out its commitment and how it strives to win the customers loyalty in this competitive market. 1.2 Research purposes Western lifestyle has been popular in Hong Kong for decades due to its special historical background. The new generation especially, eats out more often than their parents, and these new consumers have created a huge demand for leisure and carefree consumption places. As a pioneer in most new markets in the world, Starbucks seized the new information in Hong Kong and set up its first store in 2000. By May 2008, it had expanded to over 100 stores without spending much cost on advertising for this market! How actually does it attract these local consumers? Due to the economic development, the improved living standards, Goods and services are no longer enough (Pine Gilmore,1998). Todays consumers expect more from companies than ever before. The consumer environment has been gradually changed into a new experience economy era. People are seeking for a more spiritual than material experience. Catering has changed to a culture and art as customers pursue a modern and playful lifestyle. To survive in this new competitive economy, the company must not only concentrate on market strategies, brand image, innovation features, service quality, decoration and setting, but also a full range of service process planning, so as to create continuous profits for the business. Based on this researchs background and motivation, business operators have emphasis on quality of product, innovation of management, and service differentiation to create the customer experience in this keen competitive catering industry. Tom Peters (2007) believes a good brand image can attract the consumers recognition and enhance customer satisfaction gradually, to obtain customer loyalty by every positive experience. This research targets 10 Starbucks stores randomly in Hong Kong, to explore the customers experience, brand image, and loyalty, so as to find out what consumers experience on this new lifestyle, and gain in-depth understanding to develop effective marketing strategies, and to maximize the customers perceived experiential value. 1.4.1. Customer: It means a party that receives or a person who consumes products or services and he has the ability to choose between different products and suppliers. Robert Passikoff (2006) interprets that usually customers can finally find out below 4P: The Products(services) that they are interested in. The Places this product may be purchased. The Prices are competitive or not. The power and control of Promotion. Though, one important point to be noticed is that a customer does not mean a consumer, as there are External Customer and Internal Customer(Tennant,2001). External Customer is not directly connected to the organization. Internal Customer is a person who directly connects to the organization, and they may be stakeholders. In this research, customer means the person who spends money in Starbucks stores in Hong Kong. 1.4.2. Customer Experience: It refers to individuals accumulating to produce a kind of experience after a period of time or activities, by this experience, a subjective psychological state will be created(Pine Gilmore,1998). In this study, the experience is defined as a subjective mental emotional response, evaluation and cognition to Starbucks. Experience begins with an interaction between the customer and the product or the company(Dinna LaSalle,2003), thus, it cannot happen without the customers involvement. Customers spend time and money to get more memorable or more highly valued experiences (Pine Gilmore,1998), the value of experience lingers in the memories, yet experience results in thoughts or feelings and both can be positive and negative. Marketers manage to develop the positive experience. Moreover, if the company can deliver Value Experience to a customers life, that product or service will transcend its ordinary price to become extraordinary or even priceless! (Dinna LaSalle,2003) For this reason, economists summarized the recent marketing and economic research into happiness as experiences over commodities and entertainments. (Pine Gilmore,1998). Starbucks creates a calm atmosphere inside its stores to attract people to come in, linger and return. It introduces the concept of the Third Space a space other than home and work, where people can spend time studying, working on their laptops, reading, meeting friends or even holding their formal meetings! All stores have leather couches for those people who prefer to relax in comfort, and for those who want a more structured environment to study or work, there is a choice of tables with hard-backed chairs. Just like Starbucks says: Life happens over the coffee. 1.4.3. Brand image: This refers to the enterprise that provides products, services or engaged in community, it also relates to information and subjective impression in the consumers opinion.(Walters,1978) Starbucks maintains a unique coffee culture, as Zhang Xi says in Starbucks: The Kingdom of Coffee (2005), Coffee comes from west, Starbucks originates in the United States, but the culture of Starbucks coffee is from the world. This culture starts at the planting of every single coffee bean, as Howard Schultz persists in coffee quality, then merged with the traditional romantic European style of decoration in the stores, it comes out with a brand new experiential corporation culture, which is so-called today Starbucks Culture. Howard Schultz led a speech from the lectern in Shanghai National Accounting Institute on 3 June 2006, he tells the audience that Starbucks spends very little on advertising or promoting, but Statbucks brand image is recognized by everyone in the world! This is a practical example to explain when Experiential marketing is done right, the brand can be successful without expensive advertising campaigns or slashing its price! 1.4.4. Customer loyalty: This is a kind of satisfaction established by a customers full acceptance at the intended level. It also results in consumption or other derivative positive support behaviour. Customer loyalty metrics can measure how the consumer engages with a new product or service(Robert L. Desatnick,1988). Peter Drucker says, Those brands relying on advertisements cannot be better than those relying on customer loyalty. Thats why without customer loyalty and higher levels of engagement, business cannot be successful. Below are the examples that to recognize customer loyalty is a great profitable factor: Starbucks: Starbucks originally opened in Seattle in 1971 as a store that sold coffee beans equipment. Since Howard Schultz joined the company in 1983, the brand name now owns more than 17,000 stores, in over 55 countries around the world. This is just the best evidence that loyal customers contribute to the rapid growth of the business. Google: Have you ever noticed that Googles IPO price was US$85 on Aug 19, 2004? Today it is worth US$ 655.76 per share, that is an increase of 7.7 times over eight years. Its success has great relevance to its Google Loyalty Programs. Apple: How many people could ever have imagined the speed and growth of Apple? From its annual report in 2011, its net sales amount comes to US$46,333 Million, compared to 2010 which was US$26,741 Million, it has increased by 73% within ONE year. It is not easy to find if Apply offers any loyalty programs or discounts, but indeed Apple can win its fans loyalty through its rapidly changing products! It meets customers expectations and excitement.

Saturday, January 18, 2020

Most Power In Modern Western Societies Essay

Assess the view that most power in modern western societies is held by people who have not been democratically elected. It is believed that people who have not been democratically elected hold most power in western societys, however how true is this? Throughout history people have been born into positions of power, if your father was a lord, you would most likely also be a lord. Marxists believe that this division of power still exist in modern society today. Unlike Functionalists who believe in a fair merocratic society, Marxists believe that the social class you are born in is where you’ll most likely end up staying. However this theory is critised for being far to deterministic as many people from the working classes are able to make there way up the social ladder. Marxists believe that everything designed in society is there to favour the bourgeois, from the State to the legal system. Althusser believes that economic determinism needs to be rejected. According to Althusser, societies comprise of 3 levels: The economic, the political and the ideological. Although the economy is ‘determinant’ in the last instance’, the political and ideological levels are not mere reflections of the economy but have ‘relative autonomy’ and don’t have effects on the economy. Stephen Lukes identified three ways in which sociologists have approached the study of power. Each involves studying a different dimension or ‘face’ of power. He argues that an understanding of power requires an awareness of all three faces. The first face of power is success in decision-making (this has been adopted by pluralists). The second face of power is managing the agenda and the third is manipulation the views of others. Weber is usually considered the starting point in the study of power. Unlike Marx he believed that power was not automatically linked to ownership of wealth. Ordinary people with little or no money could exercise power by joining parties, not only political parties but pressure groups. He defined power as ‘the chance of a man or a number of men to realise their own will in a communal action even against the resistance of others’. Weber defined 3 types of authority: Charismatic Authority (The type of authority based on charisma), Traditional Authority (The type of power based on established customs) and Rational-legal authority (The type of authority devised from impersonal rules). Weber saw rational-legal authority as the dominant form of authority in modern societies, not only armies but also political, religious and educational organisations. He believed that they were organised on bureaucratic lines with structures of authority and rational rules designed to ensure that power is used to achieve the goals of organisations. Weber’s work has been critised as the types of authority he described are ideal types. Ideal is a model of the purest type and in reality ideal types do not exists. Political scientist Robert Dahl developed Weber’s ideas into what has become classical pluralism. Classical pluralism represents the way in which many people believe liberal democrats such as the UK and USA operate. It suggests that such political systems are truly democratic and that power is distributed throughout society. Classical pluralists except that they have very little direct involvement in political decision-making however this doesn’t mean that these societies are undemocratic. They are seen as representative democracies where citizens elect political leaders who are charged with carrying out the wishes of those who elected them. Pluralists see political parties and pressure groups as crucial for the democratic process, as through political parties we seek to gain power by putting up candidates into elections with the aim of forming a government and through pressure groups seek to influence those in government to follow policies which individual groups favour. Robert Dahl conducted a study of local government in New Haven and found that no-one group is seen to actually dominate the decision-making; power is therefore shared among a range of groups. The idea is rejected by pluralists that democracy is possible in a one-party state, since there must be opposition parties and a range of pressure groups to represent the views of those who disagree with the governing party. Pluralists claim to have solid evidence for their view of the distribution of power from case studies of decision-making on a local level (Dahl) and at a national level (Hewitt) There have been many criticisms of pluralism, first of all it is believed that measuring power by examining decisions ignores non-decision making. It also ignores the fact that that people may accept and even welcome decisions which are against their interests and its is shown that some groups exercise more power than others and so is an unequal representation of interests and many interests may not be represented at all. Marxists also argue that the pluralists’ focus on the decisions taken by local and national governments ignores the possibility that the real centre of power is elsewhere. As a result of the criticisms of pluralism many classical pluralism supporters modified or changed their positions. Robert Dahl has accepted that the unequal distribution of wealth and income in the USA makes equal political influence impossible. David Marsh describes this position as elite pluralism. Elite Pluralists accept that many political interests are under represented. However, since they constitute a significant number of voters the government will eventually be forced to take note of their interests. It is accepted that some groups have greater access to the government than others, however they point out that governments must minimise conflict by consulting with a range of interest groups. Elite Pluralism answers some of the criticisms of classical pluralism. It acknowledges the existence of under-represented interests and accepts that power is to some degree concentrated in the hands of a few elites. However there are also criticisms of this theory. It’s said to undermine the pluralist position that power is widely dispersed in capitalist societies. Also the assumption that elites or leaders act in the interests of their members is also open to question. Finally Elite pluralism like Classical pluralism fails to take into account the third face of power the ability to shape and manipulate the desires of others. Elite theorists reject the pluralist view that power in liberal democracies is widely dispersed. They argue that power is concentrated in the hands of a small minority called the elite. The elite theory was originally developed as a response to Marxism, which claimed that democracy was only possible under communism. They asserted that rule by elites was inevitable in all societies, even communist ones. However not all views of elite theory are so pessimistic. Many modern elite theorists argue that rule by elites results from the way in which societies are organised, rather than being n inevitable feature of human society. Vilfredo Pareto and Gaetano Mosca rejected the idea that real democracy was possible in either liberal democracies or under communism. They argue that in all societies and elite, a minority of individuals with superior personal qualities, would monopolise power. While Pareto and Mosca saw the elite as an inevitable thing Wright Mills saw the elite rule as a result of the structure of society which allowed a disproportionate amount of power to be held by a few individuals who occupied what he called the command posts. These individuals are called the power elite. He identified 3 key institutions as the centres of power, The Federal government, the major corporations and the military. Mills believed that these 3 elites are closely related because of their similar origins, education and kinship and because there interests are in twined. Critics of Mills argue that he only showed that the elites in the USA have potential for control, he failed to show that they had actual hold control. In addition pluralist disagree with this theory and argue that there are many other elites such as pressure group leaders, religious, trade unions and so on, who can provide a counterbalance to these more powerful elites. Marxists also reject the notion of a power elite, arguing that real power in capitalist societies derives not from positions in institutions but from ownership and control of the means of production. In conclusion it seems as though there are many different approaches to the view on power in society, whether the people are in power because they were democratically elected or whether there, there because they were born into it. However many of the views tend to ignore the problems with black people and women. Why are there only 25% of women in parliament and why are there only 6 black MP’s? Although functionalist believe we live in a fair merocratic society it’s becoming fairly obvious that we don’t. Though many views have may have some truth behind them it extremely hard say that one person’s opinion of power in society is wrong. It really depends if you believe in the power of the people or not.

Friday, January 10, 2020

Motorcycle Diaries Character Growth Essay

â€Å"The enormity of our endeavor escaped us in those moments; all we could see was the dust on the road ahead and ourselves on the bike, devouring kilometers in our flight northward. †-pg. 33 â€Å"The Motorcycle Diaries† is a story of a motorcycle trip made by 23-year-old medical student Che Guevera and 29-year-old biochemist Alberto Granado across the South American continent. Along the way, Che is exposed to extreme events of poverty, vulnerability, and overall suffering. Originally, Che’s only goal in life was to become a famous doctor who would help fight off the leper disease invading South America. During the course of the journey, however, Che transforms from an innocent, simple-minded young man to a knowledgeable traveler, and finally to a powerful revolutionary that has his sights set much, much higher. Here are the events that helped to trigger this transformation in Ernesto Che Guevera. At the beginning of the journey, the only thing Che can focus on is the thought of becoming a doctor. â€Å"In the shade of the immense trees, we made plans to build a laboratory in this place, when we finished with our trip. Keep in mind, that at this point in the journey, he wasn’t even close to crossing the border of Argentina, let alone his final destination. This is the simple-mindedness of young Che Guevera coming out. He is constantly thinking about the final result, and by doing so, he isn’t able to fully appreciate what is going on around him. At this time, Che is only thinking of himself. But as he continues on his way, a few distinct events help begin to transform Che into the revolutionary that he is today. As Che progresses further to his destination, he begins to title himself as a leprosy doctor. As he stop sin towns along the way, he begins to provide medical assistance to those in need. At this time, it was mostly to practice for when he was to become famous later in life. But one town he stopped in began to change his whole perspective on what â€Å"helping people† was. â€Å"Soon the whole family was gathered around the article. And so, like this, basking in their admiration, we said goodbye to those people we remember nothing about, not even their names. †-pg. 59. He is basically saying that once he did what he needed to do, that was that. There were of people suffering in South America at the time. And he had helped only a few people. This event started to make Che think on a bigger scale, and gave him a little push in the direction of really making a difference in the lives of ALL those suffering people. As he reaches the end of his journey, Che has reached the final step of his transformation. Che has finally arrived at the leper colony, the much-anticipated end to his amazing journey. But Che has experienced things along the way that have changed his way of thinking. He doesn’t want the journey to end right here. He has figured out the way to truly make a difference in the lives of the South American people. Here is a quote that demonstrates what he has learned and how much he has transformed. â€Å"We must begin to erase our old concepts and come ever closer and ever more critically to the people. Not in the way we got closer before. Everybody has done that. But they have done it practicing charity, and what we have to practice today is solidarity. We should not draw closer to the people and say: Here we are. We come to give you the charity of our presence, to teach you with our science, to demonstrate your errors, your lack of refinement and knowledge. We need to go humbly to learn from the great source of wisdom that is the people. †-pg. 173 Che Guevera has gone from a narrow-minded individual to someone who is capable of caring for an entire population. He has grown into someone who can see through they eyes of the people who are suffering. He can see where things need to be improved. Che Guevera became the person he wanted to be at the beginning of the journey-a difference maker. But he has done so in a much different and more effective way. This is how Che Guevara grew over the course of the Motorcycle Diaries.

Thursday, January 2, 2020

Macbeth, By William Shakespeare - 1246 Words

Hubris is a Greek word that means overwhelming pride, as stated by the Merriam-Webster dictionary. Thus, a person that is hubristic is one that is arrogant and has lot of pride and self-confidence. Holy teachings from the Christian church condemn hubris and emphasize that hubristic behaviors lead to eminent and disastrous downfalls. Various examples of teachings of anti-hubristic behavior can be found on the bible such as â€Å"God opposes the proud but gives grace to the humble† (Proverbs 3:34) and â€Å"Everyone who is arrogant in heart is an abomination to the Lord; be assured, he will not go unpunished† (Proverbs 16:5). Consequently, Marlowe’s Doctor Faustus and Shakespeare’s Macbeth are two stories that clearly depict the hubristic behavior that is condemned by the Christian church since both focus on human pride and thirst for power. Macbeth portrays more hubristic behavior than Doctor Faustus, although Doctor Faustus initially seems to be more hubri stic than Macbeth. Shakespeare’s Macbeth begins by showing Macbeth as a heroic warrior that fought to protect Scotland and honor King Duncan. This portrays Macbeth as a character that is selfless, worthy and humble. Moreover, Macbeth is so modest that when the witches refer to him as he is as the Thane of Cawdor and tell him his prophecy of his future title he is completely shocked and mesmerized. On the contrary, Marlow’s Doctor Faustus begins with an emphasis on Doctor Faustus’ â€Å"know-it all† attitude and his continuous search forShow MoreRelatedMacbeth by William Shakespeare770 Words   |  3 PagesThe play Macbeth is written by William Shakespeare. It is believed to be written between 1603 and 1607 and set in eleventh century Scotland. It is also believed to be first performed in 1606. It is considered to be one of the darkest and most powerful tragedies. Macbeth, set in Scotland, dramatizes the psychological and political effects produced when evil is chosen to ful fill the ambition of power. 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