With Starbucks 2008 US sales performance forcing the return of founder Howard Schultz to the company, we are seeing a similar performance for Starbucks in the European marketplace.
Although Starbucks is seeing profits grow in other markets, it is having difficulties meeting the needs of European consumers, which is evident in its lower sales over other markets.
In response, Starbucks has many plans for the European market to revitalise its stores. Soon we may see Starbucks products on planes, trains and vending machines. The brand will also open 300 new stores in the UK alone over the next five years. But what is most impressive, is Starbucks recognition of the importance of brand localisation. According to Louise Lucas in her recent FT article (5 Feb 2012), offerings will include “a lighter espresso in France, cheaper cappuccino in Greece and a double shot of espresso in lattes for the UK.”
Poppy Trowbridge from Bloomberg Television also recently reported on Starbuck’s plans for “European domination” as they try to bring the Starbucks experience to European consumers.
But Starbucks isn’t the only one who is increasing efforts to localize product offerings in the European market. McDonalds will be offering a McBaguette starting this April in France. According to Daily Mail’s Jill Reilly, the Fast Food Brand is trying to “appeal to more upscale diners by mixing their famous beef burgers with French-made Emmental cheese and mustard.”
Posted in Allyson Stewart-Allen, BrandTravel, Uncategorized
Tagged Allyson, Allyson Stewart-Allen, brand localisation, brand travel, BrandTravel, Britain, cross-cultural insights, insights, International Marketing Partners, localisation, localization, Starbucks
Last night I was asked on BBC’s Newsnight, its influential current affairs television program, what Rupert Murdoch should do wearing his corporate diplomat hat given he’s now being pursued by a high-profile range of interested parties — UK Parliament’s Culture/Media/Sport select committee, London’s Metropolitan Police and the FBI who all are very interested in the extent of his company’s phone hacking and police bribery practices. Is Rupert Murdoch’s defiance going to be seen as a Tony Hayward moment, the former BP executive wanting his life back? Clearly his newspaper brands in the US and UK have a lot more defending to do, with the mere whiff of wrongdoing taking the shine off both News International’s share price and the levels of trust in its brands. The UK impact of this drama hopefully will result in not only a change in the privacy laws and regulation of the media, but will shine a bright light on the nature of British news media ownership and the dysfunctions that imbalances of market power bring. Stay tuned!
Posted in Uncategorized
Tagged Allyson Stewart-Allen, America, analysis, brand, BrandTravel, Britain, business, corporate diplomacy, crisis management, marketing, media, Rupert Murdoch, transparency
This article was just published in the Summer 2011 issue of Market Leader magazine (the house mag of the Marketing Society), showing the power of the “Will & Kate” brand and how well it travels across cultures, even before they were married… their effectiveness in opening the doors for British business around the world will be impressive if this is what brands have done before their marriage… (click here to read the full article)
“Who’d have thought a former British colony of 320 million people which declared UDI in recent history (well, recent by British standards) would so keenly want to rediscover their Britishness, embracing the idea of Royal weddings, calamari hats and pageantry with such gusto, such preoccupation, such envy, such marketing opportunities?
A number of Americans and their local brands celebrated the British milestone marriage of the Duke and Duchess of Cambridge in various ways – some tasteful,
- Diet aid Slim-Fast launched a tweet campaign to capitalise on the excitement of the event by spending $120,000 to tweet anyone interested in William and Kate. The Royal Wedding enthusiasts found the #royalwedding delivering tweets from Slim-Fast
with the message “look good for your own wedding with the Slim-Fast diet and check out our Facebook page.” At the start of the actual ceremony, 11% of all tweets on Twitter contained the #royalwedding hashtag. A very successful strategy for the brand, as from the day before the wedding until early-May, its followers increased from 930 to 1,356 while their Facebook page fans jumped from 16,000 to 21,400 by 2 May. Not a bad ROI from the investment despite this untargeted tactic.
- Sign the giant Royal Wedding congratulations card in LA at Madame Tussauds in Hollywood, where you can write your personal best wishes to Will and Kate. The oversized greeting card “… (read more)
HOW READY ARE YOU TO WORK WITH THE WORLD?
Today Wednesday, 8th September, I’m leading the Marketing Academy’s Faculty for its International Marketing curriculum. The Marketing Academy provides a great forum for industry leaders, marketing gurus, academics, entrepreneurs and marketing practitioners to inspire, develop and coach an entire generation of future business leaders. This is an overview of the program highlights I’ll be covering in my half-day seminar:
How Can You Win in Overseas Cultures?
To hit the ground running – saving yourself time, money and embarrassment while you build your overseas client base and networks – you must be fluent in the business cultures of your overseas business partners if you’re going to be an effective business developer.
Whether you’re encountering these other business cultures while traveling the globe or at your desk via e-mails, this highly-practical and relevant help gives you actionable information about yourself and your international colleagues’
business practices and cultures, making you a more fluent corporate diplomat. The objective: to enable you to succeed in the ambiguous, unsettling and diverse international business environments which you are now targeting.
This program is based on the principle that understanding the environments and contexts in which international business partners operate develops executive citizen diplomats who can operate successfully while representing their companies and their countries.
Marketing Academy Programme Objectives
- to reveal how individual behaviours/actions affect the perceptions of executives in a variety of other business
- to provide participants with frameworks, insights and tools to be able to create action plans and directly apply the
learning to their business activities
- to offer participants insights necessary to create effective communication within international colleagues and/or team
- to reduce the levels of stress, frustration and conflicts based on simple misunderstandings
- to deliver valuable knowledge concerning what makes other business cultures “tick”
- to raise the probability of building long-term, profitable business relationships that are fruitful and lead to the
achievement of business and professional goals
- to help participants begin the learning journey toward being true global diplomats
This ½ day Marketing Academy interactive session is infused with small group activities to provide frequent opportunities for the Marketing Academy Scholars to share personal experiences, ask questions and try out ideas and new behaviours in a safe and confidential setting. The process is engaging, fun, experiential and effective.
The Scholars will be working in small groups to actively debate and network while expanding their global business competence.
The Scholars will apply a variety of learning methods and materials during this “Working with the World” programme while exploring first-hand, real-life examples of business situations to clarify the concepts presented.
Session topics include:
- What are “global mindsets” and “business cultures”?
- Models to describe business cultures
- Managing cross-cultural dilemmas
- Role plays: Communicating across cultures
- Leading complex international teams
- Assessing and developing your global mindset
- Lively presentations of core material
- Question and answer sessions
- Large group discussions and small group exercises and report-backs
- Learning workbook including copies of the presentation materials
So Newsweek has recently issued it’s “World’s Best Countries” ranking based on education, health, quality of life, economic dynamism, political environment. The UK weighs in at 14th place – behind Germany’s 12th – but ahead of France’s 16th and Italy’s 23rd rankings. Guess where the US is? The United States ranks in 11th place – behind Canada’s 7th place and Japan’s 8th place – putting it in the middle of the G7.
Maybe one reason for the US’ mid-level ranking is the severity of this recession and how different it is from the past few — how chronically it has affected white-collar professionals, especially those in California which has an unemployment rate approaching 13%. This one State, the world’s 7th largest economy, would displace Canada in the G8 if allowed to be admitted. As a key driver of technology innovations and economic renewal, this is very bad news indeed.
What this recession has done, interestingly, is make American companies even hungrier for business, finding creative ways to retain custom more than ever before. This is good news for consumers – customer service keeps improving – if evidenced only by my dry cleaners phoning me to extend a hearty thanks for my custom (can’t see that happening in European settings somehow!).
I also observed American department stores & supermarket retailers pushing their ‘value’ and own-label ranges which is a growing and lucrative source of income.
For more about Newsweek’s ranking: http://www.newsweek.com/2010/08/15/interactive-infographic-of-the-worlds-best-countries.html