Adaptation of Marketing Strategies in International Organisations Across Cultures : The Case of Starbucks in Italy and China

Sammanfattning

Background: In this globalised world, organisations are entering new markets across borders. However, globalisation operations come with the challenge of understanding and making strategic marketing decisions to succeed in new markets. Organisations have a strategic tension between standardisation and adaptation. Regarding this, organisations have the challenge of keeping global identity or adjusting marketing strategies to align characteristics with the local market. Culture plays a crucial role in shaping strategic decisions, since culture significantly influences how consumers evaluate, engage, and perceive brands. For international organisations, understanding culture is crucial, especially for operating successfully in markets where there are deeply rooted cultural traditions and expectations. Purpose: The purpose of this thesis is to analyse for what reasons Starbucks adjusts its marketing strategy when entering contrasting cultures, focusing on Italy and China. Additionally, how these strategies are affected by the differences in culture. Method: A qualitative method, an interpretive and inductive approach was applied to allow us to understand Starbucks’ consumers’ perspectives. The case study of Starbucks was chosen due to the marketing strategies across culturally contrasting markets of Italy and China, which explain how culture shapes adaptation strategies. Primary data was gathered through semi-structured interviews with a total of 10 participants selected in consideration of their connection to the two countries. Conclusion: The findings show that depending on the cultural context, consumer behaviour varies across countries. Therefore, international organisations have to take both individual identity and social identity into account, creating an emotional connection with local consumers on top of brand promotion. The study further pointed out the connection between culture, consumer behaviour, self-congruity, and the marketing strategies international organisations must consider regarding standardisation and adaptation. From the study, it was found out that a balance between the two approaches is necessary while putting more attention to cultural adaptation to meet preferences and expectations, as international organisations compete with local competition, where there is an advantage over cultural identity. Ultimately, by focusing on all these factors, long-term success can be achieved in culturally contrasting markets.