Sunday, February 12, 2012

why is Starbucks invisible in Italy?

Starbucks the world wide coffee company got its humble roots in Italy but it still does not yet have a store in Italy. The marketing man behind the empire Howard Schultz got his idea for the company by walking around the streets in Italy. Starbucks is such a large global company that their marketing plan obviously works but not in italy. He keeps saying he will eventually put one in italy but has yet to do so.  I think it is because the coffee Shops in Italy are breed from the history of the country, but Starbucks has separated from the traditional Italian design and went Global, so the Traditional coffee shops view Starbucks as a sell out.

Do you think Starbucks is a sell out? Also do you think Starbucks would have to develop a custom marketing plan for Italy?

http://www.businessweek.com/magazine/grounds-zero-a-starbucksfree-italy-02092012.html

Response to The Popularity of the Produce Aisle

The primary purpose of this trend is the Halo effect, the placement of products around products of interest in the hopes that the products in question will be pulled in by the gravity of the products interest. The risk of this philosophy is that stores are combining items that are not fresh produce with fresh produce, but also consumers buy more items here because they associate them as being "fresher" because they are so close to the fresh produce. The risk for competitors is they can lose sales because since the produce is located so close to the front of the store impulse buys can take place here. Also since the average shopping budget is spent within the first 20 minuets of the trip the risk of losing business to the halo effect is much higher. For consumers they could be losing out on quality of goods due to the Halo effect, the items could possibly be not as healthy as the items around them. When layouts of stores become slightly underhanded such as the halo effect, it seems as if the companies are relying not only in their products but the gravity of an entire section to sell said items. It seems the Halo effect is here to stay because the problem is a social constraint not a physical one. If people knew that it was simply for this reason that they feel compelled to buy lesser products then it might change the perception of the halo effect and the produce isle.

Does this Halo effect lead to an unfair competitive edge?