STARBUCKS CASE STUDYUNITED ARIB EMIRATESUAE MAGGIE BRYANT JORDAN

STARBUCKS CASE STUDYUNITED ARIB EMIRATES(UAE) MAGGIE BRYANT JORDAN COUTURE MEAGAN ROSE

Introduction Starbucks Entertainment unit can contribute a significant amount to Starbucks bottom line by offering a unique in store experience that will generate repeat customers. . Increasing sales to increase the bottom line is essential for any business, and Starbucks wants to achieve this by offering a new selection of products that incorporates music from local artists.

Analysis of the United Arab Emirates The strengths are that they have a stable economy with most of their profits coming from the large amount of oil reserves they posses Rising education and income level only gives Starbucks more opportunity for growth. There weakness is that they are geographically located in the desert, which could be an obstacle to overcome when serving steaming hot beverages. Competition from other coffee shops would be a threat.

• Incorporating Music with Coffee • Featuring music in stores • Making use of travel and the coffee mugs • Tying it in to local holidays and festivals

Music Inside the Starbucks Stores Starbucks can play music in the stores by modern artists from the UAE as well as traditional music of the UAE. CDs and Gift Cards i. Tunes and Music Master Music will enhance the consumers experience by making them want to stay in the store longer which will lead to the purchase of more items Loyalty Punch Cards

• Promotional Ideas Starbucks and Music Popular music artists, traditional musical instruments, and traditional names of dances and images of the dances can be placed on the mugs. The names of the dances with images or a brief history of the dance could be included on the mugs. Another way to incorporate music and coffee would be to be involved in local holidays and festivals.

Music of the UAE Internationally • The music offered through Starbucks in the UAE will be a mix of modern artists as well as traditional music and there is an audience for both. • The UAE has a strong music heritage and there were songs for everyday tasks as well as historic battles and milestones.

Why Starbucks will sell in the UAE • The UAE culture is male dominated so targeting products to men will bring in the most revenue. The UAE has a high per capita income and a high standard of living which works well for Starbucks since its coffee is higher priced than other competitors.

Why Starbucks will sell in the UAE • The urban population is 84% which works for Starbucks stores because there is a lot of places to have stores and the consumers will be technologically savvy

Music Festivals Dubai International Jazz Festival, Dubai Desert Rock, Desert Rhythm, and the Abu Dhabi

Strategies to Opening stores in the UAE -Glocalization By determining in what key ways your customers and products are different, you can target your product offerings and marketing efforts more tightly

Target Market • Starbucks can offer music, products, and even beverages that have a Middle Eastern flavor so that they connect to their consumers. • Men from the ages 15 -64. Approximately 78% of the population fits into that age category, and there are three times as many men as women.

Sales Forecast • Starbucks wants to increase profits, as Dunkin Donuts has, by continuing to expand throughout the UAE. • Starbucks can open 125 stores in the UAE within approximately 5 years, with a minimum of twenty locations built a year.

Sales Forecast cont. . Dunkin Donuts planned to open around 120 stores in the same amount of time, so Starbucks should be able to top their competition, especially when they have many successful locations already up and running. The entertainment provided should account for at least 25% of profits made, and simultaneously increase sales for coffee as well.

Where to Build the new stores? They can start to add locations in the most populated cities in the Northern region, and focus on expandion down into the Southern region, prominently in Abu Dhabi because it is the wealthiest Emirate.

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