Adam Simpson new WCE coach (now to end of 2019)

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Pretty much all the above points are valid contributors, but i would argue the main issue was a lack of understanding of Australian consumer preferences.
The advertising is a bit of a stretch, who knows what effect increased marketing would have had, could have just been more money down the drain, trying to sell a product Australians would never be interested in.
As you mentioned they charged premium prices for coffee that Australians found to be inferior to what local cafes etc where offering at the same or lower price. At the end of the day aussies weren't willing to pay premium prices for starbucks coffee because Australian consumers preferences are different to what starbucks was expecting. We prefer stronger, less sweet, less watered down and milky coffee.
If Australian consumer preferences were different we would have been more likely to accept their premium pricing. We just don't like sugar water.

Well, if it's your assertion that is what Starbucks sell, how do I say this? Ummm... You're full of s**t ...



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By the way, Starbucks set up in Oz in 2000.

How old were you guys in 2000? What do you remember of Australia's "sophisticated coffee culture" at that time?

Remember the biggest retail seller of cafe coffee is mcCafe - have you tastes their stuff?


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Eagle87 Can i still borrow some money? Seriously though how much do lady boys cost?

You went ladyboys? Wow, you are sooooo original! That's the first time anyone's pulled that one out on this board.

Answer to 1 is yes. Subject to terms.

Answer to 2 is no idea. But if you walk down Sukhumvit Road about 600-700m from my place in the dodgy direction you could ask them ...


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You went ladyboys? Wow, you are sooooo original! That's the first time anyone's pulled that one out on this board.

Answer to 1 is yes. Subject to terms.

Answer to 2 is no idea. But if you walk down Sukhumvit Road about 600-700m from my place in the dodgy direction you could ask them ...


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Mate I have already been there.

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Well, if it's your assertion that is what Starbucks sell, how do I say this? Ummm... You're full of s**t ...



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Obviously there are multiple items on every menu at every cafe etc. but on a scale of espresso to milshake compared to the average Australian coffee shop i think its pretty hard to argue starbucks menu sits closer to the espresso side of the scale than an Australian counterpart.
 
Eagle87 Ok maybe my questions where a bit unfair, you know talking about someones speciality might while the other has no idea might be a bit unfair.
Here is one you might be able to help me with though, srs question.
Why is IBM losing market share in Australia?

No idea.

Coffee isn't my specialty. Not close. But it's a business operation and we've done some work in that area ...

Why do you think they have? Assuming they have...


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Obviously there are multiple items on every menu at every cafe etc. but on a scale of espresso to milshake compared to the average Australian coffee shop i think its pretty hard to argue starbucks menu sits closer to the espresso side of the scale than an Australian counterpart.

Probably. And I'm no fan of Starbucks TBH. Although one does seem to end up there a lot here in Asia as they are quite prevalent and easy meeting spots...

If you're into coffee and interesting coffee culture head to Saigon. For some reason Vietnamese coffee travels quite badly but in Vietnam it's great. But it's everywhere ... which can be bad for sleep patterns


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By the way, Starbucks set up in Oz in 2000.

How old were you guys in 2000? What do you remember of Australia's "sophisticated coffee culture" at that time?

Remember the biggest retail seller of cafe coffee is mcCafe - have you tastes their stuff?


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Completely different market to Starbucks though, Starbucks was attempting to compete in the premium market whereas mcafe is cheap as chips, they were not direct competitors, Gloria Jeans was.
 
Obviously there are multiple items on every menu at every cafe etc. but on a scale of espresso to milshake compared to the average Australian coffee shop i think its pretty hard to argue starbucks menu sits closer to the espresso side of the scale than an Australian counterpart.

Couldn't help but chuckle when I was in beautiful Seattle and could eye off 3 shops from one spot in the town square, not even joking.
Eagle87 how does this even work yo?
 

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Completely different market to Starbucks though, Starbucks was attempting to compete in the premium market whereas mcafe is cheap as chips, they were not direct competitors, Gloria Jeans was.

Agree and Dome in WA.

Starbucks never hit the market right. IMO they got store layouts wrong, they felt lower end and charged a premium price and they were never in the right spots - or rarely..

I honestly think they thought they'd just open and everyone would come. That happens here in Asia. People are so brand focused here - which tends to support a view of lack of sophistication in the market - that the brand power of Starbucks hands them market share. And oddly their competitors seem to have copied Starbucks pricing.




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Strange, not heard of him, is he an economics professor out of Tel Aviv University?

Oh Adam Simpson hey, that coffee drinking, economics loving guy.. what a good egg.

But more Mac than IBM ... although with the recent strategic alliance maybe it's the same thing


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