The Starbucks in Australia was doomed from the very first day, because of the following two reasons. First, the Starbucks was inattentive when it came to the product optimization. They just copied the marketing strategies that worked in United States in Australia. The product features of the coffee that work in Unites States has been with the use of syrups of sweet flavor, huge quantities of milk, which augmented a weak and bitter coffee. There is very little product range included mostly hot smoothies that are coffee based, but not a good product breadth of coffee. However, the consumer preference of the Australians has been the real espresso. They are raised on such coffee types which made it harder for the Starbucks to sell their products.
Failure to provide organic growth
There is one more mistake Starbucks made which proved to be very crucial. Starbucks could not deliver the consumers of Australia an organic experience. This can be considered as critical tactical error.
The Starbucks started its operation with the opening just one store in Seattle, USA. The nation at that time was bereft of true coffee culture. The imagination of the coffee consumers in Seattle captured the imagination provided by Starbucks. The second store was opened with the same coffee culture that was imposed by Starbucks on the Seattle’s consumers. By the time, the third Starbucks store came up in the city; a demand pull was already created in the local area.
Earlier, in the same way McDonald’s grew in Australia. They opened only one store in each city. The demand could not be met by the supply. This created something of an artificial scarcity, which created huge brand awareness and good brand perception and excitement around the brand experience (Clark, 2008). But the approach of the Starbucks in Australia has been quite the opposite.
They immediately opened a number of stores in each city. They tried to impose themselves in the market. As a vital error in mapping the place, Starbucks chose Lygon Street in Carlton for its first store in Australia. Much of the luster that chose Lygon Street once had been lost. However, the people of Melbourne in their collective consciousness, still holds the place. This place was the birthplace of coffee in Melbourne. However, the culture that Starbucks represents is very the contrary of what Lygon Street stands for in terms of coffee culture. This was in fact an insult to the senses of the people of Melbourne who are regular coffee drinkers. Therefore, while the growth of Starbucks in US was designed organically, it was tried to be imposed upon the Australians. The marketing tactics of Starbucks in Australia had been with huge hoardings, and even tried upon the consumers in ordering coffee in sizes like something of popcorn at the multiplex.