Starbucks Marketing Strategy In Vietnam

In the marketing strategy of product, the adaptation is critically needed for the difference in local tastes and customs (Kotler and Armstrong, 2008). Therefore, Starbucks has modified its menu to suit Vietnamese taste and cater to local customers’ many needs and demands.

Besides keeping its famous Frappuccino or Espresso beverages, Starbucks has brought in “cà phê sữa đá” and included on its menu the usual bakery items like muffins, cakes and blended-frozen coffee drink. In addition, it also celebrates the special holidays, such as Valentine Day, Mid-Autumn Festival and Christmas by introducing seasonal beverages and pastries. For example, during Mid-Autumn Festival, Starbucks has created its own mooncake for approximately $25 per set of 4 pieces. Even though the cost is high, the combination of great product and chic appearance have made this product an instant hot seller in Vietnam.

6.3.2 Price Starbucks is considered a luxury in Vietnam ever since they first came to the country and so far it has no intention of lowering the prices. Vietnam is the world’s second largest producer of coffee but it produces and

As a net exporter of coffee beans globally, Vietnam imposes very high duties for importing coffee beans into the country. In addition, the high rental cost also poses another drawback for Starbucks. Like other foreign coffee chains, Starbucks prefers to stay in the central business districts of Vietnam’s largest cities and this has caused their products’ price to go up quickly. Higher costs translate into higher coffee prices for local consumers. Starbucks coffee’s price ranges from 55,000 – 85,000 VND ($2.42- $3.74). Some of the most expensive drinks can cost as much as 105,000 dong ($4.62). When compared with Starbucks’ price across the world, the price in Vietnam is in similar range with most developed countries such as UK and