International Marketing a Situation Analysis Is Termed Research Paper

International Marketing

A situation analysis is termed as a foundation to be used for a marketing plan. A situation analysis normally includes an examination of both the internal and external factors that can affect a business. A situation analysis creates an overview of the organization that acts as a guide to understanding the factors that influence the future of an organization (Lorette, 2010). The paper will look at the situation analysis for Starbucks's coffee for entry into India as the target market.

Starbuck's international profile

Starbucks Corporation is a global coffee chain house and companies which started in 1971 as a roaster and a retailer of ground coffee, whole bean coffee and tea in Seattle. The mission of the company is "to inspire and nature the human spirit-one cup and one neighbor at a time." Over the years Starbucks has undergone a rapid expansion and now it is the largest coffeehouse company in the world with close to 149,000 employees (Speiser, 2003). The Company operates in 61 countries all over the world. Today the company connects with millions and millions of customers all over the world providing them with close to 30 blends and single-origin premium coffees in a family type environment with brilliant customer service. Starbucks boosts of a brand portfolio that includes Starbucks coffee, Seattle's best coffee, LaBoulange, Evolution fresh and so many more (Paunikar, 2012). This clearly shows that Starbucks is a company that has an international presence and is therefore well-known. Despite its international presence Starbucks still needs to expand more especially in cities in India. This is especially due to the fact that there has been a revolutionization of the coffee consumption as well as the economic growth in the country. The rational for this further internationalization is so that the company can grow and at the same time increase its profit taking advantage of the economic development of India.Assessment of the potential of the target market

When it comes to making an assessment of a potential target market there are various factors which have to be considered.one of these factors is the potential which the target market holds. There will be no need of venturing into a new market if that specific market does not have potential. Therefore when assessing a target market one has to ensure that they decide on a target market which has the greatest potential in terms of customers and hence the company will stand a chance of getting good returns. Therefore India is a country that has a high potential for Starbucks to venture into. The probability of Starbucks introducing the coffee bar culture in India is very high due to many reasons. This therefore makes India a good choice for Starbucks to further expand into.

Analysis of the target market

India is a very lucrative market for any international company to assume or overlook especially a company such a Starbucks which has been quite successful in making its presence felt in countries that are traditionally tea drinking nations such as Japan and China. India has a great potential as a target market due to various reasons. First of all there is a new consumer culture that is coming up in India. The young people in India're becoming are now becoming world class consumers. This can be attributed to various factors such as the fact the India economy underwent a massive liberation that opened the economy for foreign investors and trade. These new policies have enabled multinational companies to take advantage and invest into the country (Parikh, 2009). There are also increased job opportunities in India as a result….....