European Marketing in Poland - Polish Markets of Starbucks Coffee

Polish Markets of Coffee

Coffee shops are another quick service entity that have been booming globally. The coffeehouse segment is the fastest-growing of the dynamic culinary sector in Poland. According to horecanet.pl, a restaurant industry report, average annual revenue growth of the Polish coffeehouse market between 1997 and 2007 was estimated to be approximately 40 percent. (http://news.starbucks.com/news/store+opening+poland.print)

Starbucks, Inc. is a well-known brand all over the world. Polish customers have been able to enjoy this company's "cup o' joe" since 2009, when the first Starbucks opened its doors in Warsaw. Starbucks International set up a joint venture with a subsidiary of AmRest Coffee to run their stores in Poland. "We believe that the café market in Poland is growing faster than other segments of the HoReCa sector," said Magdalena Frątczak, director of retail at CB Richard Ellis. (http://www.wbj.pl/article-55344-new-warsaw-starbucks-part-of-firms-global-expansion-plans.html) Magdalena was absolutely correct! According to Anne Applebaum of Slate.com, when the first store opened in Nowy Świat, there were "lines that would twist around the shop and out the door." Their customers ranged from students to stockbrokers, waiting in line to get a cup of coffee. Some might ask why it became so popular, when you could just go across the street and get a similar cup of coffee for half the price. The arrival of the famous brand signifies the entry of Central Europe not just into the capitalist world, but into the world of 21st-century-style prosperity. http://www.slate.com/id/2217593/. Since they entered the Polish market in 2009, Starbucks has successfully opened over 11 stores around Poland successfully. During summer 2011, they have plans to open their twelfth store and there is no doubt that they won't succeed.

Starbucks has always had a wide range of beverages, pastries and sandwiches to offer to their customers, so the big question stands to ask whether this company has an ethnocentric approach to internationalization. The answer is yes. If you were to walk into a Starbucks in New York City or Warsaw, you would not be able to point out any major differences. As a company, Starbucks wants to create an experience for their customers that combine their on-the-go schedule, as well as a place to relax, and this is something that customers in Poland are used to. (http://www.franklincollege.edu/pwp/BOdom/SampleWorkStarbucks.pdf) This idea in itself is an important marketing tool. Starbucks is recognizing that in Europe, their customers are more willing to sit down and enjoy their beverage, trying to escape the fast paced world that we live in today. Coming into a store, you can read the menu in Polish and English, once you order your beverage, you are asked if it is for here or to-go. When I was asked this question, I was taken aback. The answer I gave them determined whether my coffee was going to be prepared in a to-go cup, or a porcelain mug. The same question followed my order of a muffin. When I said for here, I was asked if I would like it warmed up. Again, I was shocked. An immediate feeling of relaxation came over me knowing that I could sit down, enjoy my warm muffin and my hot cup of coffee. In America, it seems that we rarely have time to drink our coffee, let alone a hot coffee. Looking around the café and seeing their customers working on their computers, having meetings or just enjoying the music made me realize that Starbucks had done a great job introducing their product to customers who wanted to dedicate time to their coffee breaks.

The beverages that are offered at the Starbucks in Poland are made the same with the same ingredients and presented the same way. A perfect example of Starbucks being ethnocentric was when the "have it your way" Frappuccino was introduced. This allows customers to customize a frozen beverage with the amount of coffee, the type of milk, and the flavor to satisfy their standard and liking. This is an important marketing strategy to bring in more customers by showing them that you can customize any beverage and "have it your way."

Coffeheaven is a brand new name to learn. The name is obvious, but how does this company even come close to competing with the beloved Starbucks that as stated previously, had customers waiting in lines out the door?