Patrick BiddiscombeNew Breed · Founder & CEO of New Breed | HubSpot-Led Growth | Advisor to HubSpot & FinQore

Starbucks vs. Australia - Huh?

Name: Starbucks vs. Australia - Huh?
Uploaded: 2023-01-23T12:00:06+00:00
Duration: 46 s
Channel: Patrick Biddiscombe
Description: Starbucks lost $105 million in Australia because it entered the market without understanding local coffee culture or preferences. The chain had succeeded…

23 Jan 2023 · 1 min

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0:46

Starbucks lost $105 million in Australia because it entered the market without understanding local coffee culture or preferences. The chain had succeeded globally but ignored that Australians already had strong espresso traditions and weren't willing to pay Starbucks prices.

Questions this video answers

Patrick Biddiscombe

January 23, 2023

Approximately $6 billion

$105 million

Chapters

This is why Starbucks failed in Australia. Throughout the 90s, the Seattle based caffeinated giant attained monster success becoming a billion dollar brand within the decade. They had so much success domestically that they started spreading the brand internationally, opening up successful stores in both China and Japan. They then set their sights on Australia in their six billion dollar coffee market. But upon launching there, they ran into some problems that resulted in $105 million in losses. They had a poor go to market plan, didn't speak with local customers or plan for local taste, the product didn't align with customer expectations, and pricing made the product unattainable. What can we learn from all this? Conduct thorough market research, Invest in running customer surveys, focus groups and SWOT analysis. Click the link below to download our Market Research Kit to start figuring out what your customer actually wants. For full length email marketing insights and case studies, subscribe to the channel.