ABSTRACT
Since the signing of NAFTA many U.S.-based companies have eyed Mexico’s market with great interest. Thanks in part to the rising purchasing power of women, Mary Kay, a Dallas-based manufacturer of cosmetics, has watched Mexico become one of its top foreign markets. Wal-Mart has become Mexico’s number one retailer. But for latecomer Starbucks, Mexico presented an enigma. Mexico was the fifth largest producer of coffee in the world, yet Mexicans rarely drank coffee. The average Mexican consumed less than two pounds of coffee a year, compared with the ten pounds consumed by the average American and the 26 pounds consumed by the average Swede. Could Starbucks create a greater demand for coffee among Mexican consumers? Could its upscale coffee shop format offer a product that was attractive to customers in a developing country? 1
To begin to develop an effective strategy for global markets, a firm must first consider the type of market in which it competes. Markets can comprise consumers, businesses or governments.
