I z Internationalmarketing

questions. Q Answerthese rcCoffeecutture I 7 Whichhot drinks are popular in your country? 2 Whatis your favourite hot drink? 3 Whichfive words do you associate with coffee?

Coffeeculture comesto coffee-growers By JohnAuthers and Mark Mulligan In Chile, theY Prefer tea to speciality shoPs each Year, coffee and instant rather 90 per cent of it is instant. than freshly brewed' In Argentina, Per caPita In Argentina, bY contrast, consumption is about 4kg a I breakfast is with a frothY 55 year, mostlY in whole or cappuccino, a heart-starting ground coffee beans. espresso,or a caffd latte. In Despite being a coffee- Brazil, after-dinner coffee is grower, Peru has a similar served free at anY self- pattern of coffee to respecting restaurant. 6o consumption. That Latin America is not The ironY is not lost on one great homogeneous Julio Gutidrrez, head of culture often surPrises Latin America at Starbucks travellers. However, even Coffee International.'We've 15 the most subtle differences t,s been doing business in of a Latin America for decades.' in the consumer Profile 'We Colombian and a he says. haven't had anY Venezuelan will not have stores but we've been been lost on Starbucks, one buying Latin American -o 20 fastest-growing coffee since the beginning.' of the 'Expansion global brands. will depend Rico,Greece, Oman, t3o American comPanies are searches for local entirely on how long lt tales Puerto After and southern generalty well regarded and partners, and a successful to find the right Partner in Indonesia Starbucks'corners', any noveltY from abroad is in Mexico CitY, each of those countries,' he China. trial run 'If are found in guaranteed to arouse 25 arrived in South 75 says. we don't find or mini-outlets, Starbucks offices, sports curiosity. America. :rnyone, we may think about ro> airline airPorts,hotels 135 Both the Lima and With no conventional going in owselves.' stadiums, and bookshops.CoPY-cat Santiago Starbucks have advertising, the Seattle- Anyone who knows the coffee-bar chains have been packed since oPening based company oPened Starbucks storY can alreadY emerged, only to be their doors, and the 30 stores in Lima and Santiago ao visualise potential outlets rro swallowedbY Starbucksor company has rolled out 15 within 24 hours of each in the most fashionable forced to merge with r ro stores in Mexico CitY since other. neighbourhoods of the - coryrpetitors. launching its first cleverlY Neither Peru nor Chile region's capital cities. From Fortune and fame, located beside the US has a mass-market caf6 a single store in Seattle's however,have not come embassy-aYearago. Js culture. although European ss Pike Place Market in 1971, without their critics. Some Roman Perez-Miranda, and US-style coffee houses Starbucks today owns 3,90?rr; analysts say the company r<: head of Latin America for have begun sPringing uP in stores in North America was forced to globalise Interbrand, agrees.'Mexlco upmarket districts of and licences a further 1,378. the it had saturatedits is the closest Latin America caPitals. They also own 437 and because both their Others saY gets to the US, both 10 this cultural qo franchise 1,180 o-utlets in home market. Despite exPerience geographically and peculiaritY. a Starbucks the rest of the world. rzothe JaPanese 'It beena haPPYone. rso culturallY,' he saYs. was found that Chileans It first expanded from its has not survey concerns forced an obvious starting-Point drink onlY 150 home market to JaPan in Security on average to retreat from for Starbucks in the region" coffee a 1996and is now Present in the company cups of Year, the anti- 4l 95 more than 30 countries. Israel, and comparedwith34SintheUS movement Fr om theFinancial Times and more than twice that Last year alone, the rzrglobalisation has Starbucks stores number in many EuroPean Starbucks' livin g-room-in-a- now on its hit list. countries. Of the 8009 of coffee-house format was aspiringsocieties such coffee per caPita bought in introduced to Mexico, In FINANCIAL TIMES Chile and Mexico, 50 supermarkets and from roo Germany, SPain. Austria' as

A z_.Inteinationql marketing I

G) n:{ thearticte quickty and identifu the country or countries where the statementistrue. 'l Argentina t'l Peru chite Brazit corombiaVenezuera Mexico us

I r Peoplein this country would rather drink tea than coffee. z Peoplein this country would rather drink instant coffee. 3 Inthis country coffee is usualty free after dinner in restaurants. 4 Inthis country peopte drink 345 cups of coffeea year. 5 Inthis country people drink 4kg of whote or ground coffee beans per year. j Q lnswer thesequestions. il 7 Whereand when did Starbucks begin? 2 How manystores does it ownin a) NorthAmerica? b) therest of the wortd? Howmany 3 storesdoes it allowothers to operatein a) NorthAmerica? b) the restof theworld? 4 Whichoverseas market did Starbucks enter first? 5 Inwhat sort of placescan you find Starbucks'sales_points? 6 Accordingto thearticle what four problems has starbucks had? wtrictr @ of the foltowingverbscan form a wordpartnership with a) a product, b) a market? r retreat from 4 breakinto Z saturate ro rollout z launch 5 penetrate 8 withdraw tt [icense puttout of I 6 introduce 9 geta footholdin rz phaseout wtrictr 1$ of the verbsin ExerciseD areconnected to a) enteringa market,b) leavinga market?Use a gooddictionary to hetpyou.

O n 2.1Listen to thefirst part of the interview with paut smith, a marketing Adaptingto specialist.what questions should you consider before entering an oversea-s market?

n @ 2'2Listen to the secondpart of the interview.what problemsor challengesdoes paul Smith mention?

wn.t problems @ mighta foreignproducer of thefottowing products have in tryingto markettheir goods in yourcountry: a) tuxury.irr, u) shampoos, c) breakfastcereals?

A PaulSmith