First, the Starbucks was inattentive when it came to the product optimization. They just copied the marketing strategies that worked in United States in Australia. The product features of the coffee that work in Unites States has been with the use of syrups of sweet flavour, huge quantities of milk, which augmented a weak and bitter coffee. There is very little product range included mostly hot smoothes that are coffee based, but not a good product breadth of coffee. However, the consumer preference of the Australians has been the real espresso. They are raised on such coffee types which made it harder for the Starbucks to sell their products. It is prudent to describe the coffee culture in Australia as sophisticated and mature. Therefore, with the entry of Starbucks in Australia in the year 2000, it already got an urban coffee culture thriving that was already in place. However, the culture that was established in Australia was the patronization with respect to the small coffee shops in boutique style with the will of the people to travel out of their way for their favoured cup of coffee, particularly in Melbourne where coffee enjoys a cult following. To the Australians, coffee can be related to the extent of being like a relationship as its relationship with the product.
This suggests that global and an impersonal global chain such as Starbucks would face trouble to replicate the familiarity, personalization, and intimacy with a suburban boutique café. Moreover, with years of drinking coffee, a large number of Australians, unlike Asians or Americans had then development of a palate that was sophisticated with enjoyment of sugar stronger and straighter, without having the need of disguising the flavouring the taste with syrup shots.There is easy quantification with regards to the love for coffee. The worth of Australian market is about $3 million. Out of this, $1.8 million is in relation to the retail market of coffee. The ratio between the coffee that has the consumption out of home to the coffee that has the consumption at home is about one is to two (Austral Asian Specialty Coffee Association, 2006). The coffee’s consumption per capita has been estimated at 2.3 kg more than what the consumption was thirty years ago. Although in terms of instant coffee, Australians are one of the highest consumers in the world, there is increasing trend that they are having their coffee outside home.