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Marketing

Marketing:Starbucks in Africa

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Marketing:Starbucks in Africa

Question 1

One of the main features of the market is the influx of investment in major cities in South Africa. As such, locating Starbucks in Johannesburg, which is one of the posh cities in the country, has helped in increasing product sales. People from different parts of the continent shop in the city, thus, expanding its market.  Secondly, the city infrastructure is also well-developed concerning roads, which have led to an increase in retail business in the region, therefore the number of customers.

Question 2

Slow economic growth in South Africa poses a challenge to Starbucks. Its growth rate is characterized by a very minimal range of 0.1%. Nonetheless, the country has been experiencing inflation. The country’s currency has been trading strikes in quite low as compared to the British pound and US Dollar.  As such, the consumers have less money to spend on sweeteners traded by Starbucks.

Question 3

Due to inflation and slow growth rate in South Africa, Starbucks should use purchase situation analysis in their research (Longbottom, David & Lawson 115). Such will provide information regarding the purchasing decisions of the consumers. Starbucks will use the information in launching other stores.

Question 4

The store manager should be aware of the brand of goods offered by Starbucks. Such will aid in staying up-to-date with the firm’s products. One should be aware of retail operations since it helps in serving the customers and provide support to sales personnel. One should also be aware of the physical count of the product for data comparison. The store manager should be mindful of the operations of the firm for decision-making purposes.

Question 5

Continuous growth emphasis is among companies is for long-term success and growth. Profit is essential in ensuring the firm survives financially, thus forming the basis for its long-term corporate survival.

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