Wednesday, October 23, 2013

Starbucks's Prices Boiling Over

Centel Media,,  Online Reputation Management, Online Reputation Repair, Remove Rip Off Reports
Coffee shops are a way of life for many Americans. The smell, the caffeine, and the atmosphere are enough to perk up even the worst case of the Mondays. The most notable chain of coffee shops is Starbucks. Starbucks distinguishes itself from its competitors by offering premium quality coffee with a price to match. While the prices are a tad high, many people in America don’t seem to mind, as the shop is one of the most popular destinations for coffee.

However, it seems that in China a report by the official China Central Television or CCTV news agency uncovered that Starbucks was making rather large profit margins on its sales there by taking advantage of unsuspecting Chinese customers. Apparently, their coffee is more expensive than in a majority of other markets. This negative report is not something any company would want, and the best way to counter it is by spreading the right information to fill in the gaps.

While it is true that Starbucks charges more in China than it does elsewhere, there are several factors that are responsible for premium price tags. In this Eastern country, the cost of food tends to be higher than in the United States due to differing regulations, which forces Starbucks to ramp up their prices. Additionally, the Chinese tend to behave more casually in cafés than they do in America: instead of taking their coffee on the go, Chinese people hang around inside the café more often. This has the side effect of forcing Chinese Starbucks to build larger shops in order to accommodate all of the customers. And finally, China has higher import rates and tariffs, which certainly doesn't help this whole situation.

Most interestingly, there is a lot of support for Starbucks online from Chinese users. This is quite a departure from traditional Chinese views on this sort of Western lifestyle. Like Apple, Starbucks is seen as a premium brand, and many are willing to pay a higher price in order to maintain that standard in their lives.

If your company needs to deflect damaging content, Centel Media™ can provide plenty of strong support in your endeavor. In a case like this, we would create a negative article suppression campaign. To give your brand more exposure, we can also create press releases that will boost the legitimacy of your side of the story in defense of your company. If you need more online support, social media might be the way to go. Centel Media™ has services to make the most out of social media by optimizing your pages.

We want your company to be in charge of your own image, not the media.

Jonathan Wong,
Creative Writer,

Matthew Shaffer,