Starbucks is an international coffee business from the United States and has over 20000 shops over 62 countries. The business first shop opened in 1971 in Seattle, Washington. The business has started by Jerry Baldwin, Zev Siegl and Gordon Bowker. The Starbucks sell a variety of cold and warm drinks. They have different types of warm and cold coffee, lemonade, sandwiches, salads, pastry, candy and they also sell cups that they designed.
When one needs to get an energy boost, they will usually turn to coffee. In past years, coffee was a slow product to make unless one wanted to pay for a premade cup brewed at a store. According to The Keurig Story (2012), since 1998, Keurig has changed the market by offering an at home single cup coffee maker with speed and efficiency that the consumer market demands. Product Description Single cup coffee brewing systems are the leading technology in the coffee industry today. Keurig, Inc. is among the top producer of the single cup coffee brewing systems.
One of these innovative new products is the Single Serve Coffee Pod (SSP), a machine that can brew one cup of coffee at a time. The pod was first conceived in 1978 in Italy, and was originally targeted at office users. Kraft redesigned the pod and retargeted it to home users in Switzerland in 1982. By 2003, the pod had been introduced to 10 European countries, and coffee pods were about 15% of all coffee makers sold. By 2008, European SSP sales were expected to exceed $150 million, and by 2010, they would draw for 10% of European home coffee maker market.
Starbucks locations serve hot and cold beverages, whole-bean coffee, micro- ground instant coffee, full leaf teas, pastries, and snacks. Most of the stores also sell
Starbucks has a good sustainability plan, excellent leadership and motivated stakeholders that will follow the organization well into the future. Starbuck’s Background Starbucks has been a household name for over 20 years. It is the largest coffee house in the world with over 17,000 stores in 50 countries (Wikipedia Website, 2011). Starbucks was founded by two teachers in Seattle, Washington with $1,350.00 each and a $5,000.00 bank loan (Kline, 1998). In 1987, Howard Schultz acquired Starbucks and ran with the idea that a barista-type coffee house was going to be the wave of the future.
Starbucks provides a variety of coffees and es pres s os as well as fres h food items including pas tries , s andwiches , s alads , and other items . Additionally, it s ells branded bottled co ffees and ice cream. Starbucks als o owns s everal brands including Seattle’s Bes t Coffee and Tazo tea. Starbucks Corporation was given a weighting of 20% becaus e of its brand image and appeal to its target market. Starbucks offers a s imilar fres h ingredien t environment and values its employees highly.
The customers can be classified into two kinds: the long-standing customers like residents and faculties, and temporary customers like students and visitors. In September 2009, Tim Hortons will open up its first store in the West Mall Complex (WMX) of SFU, replacing Raven's Cafe and Chartwells. Tim Hortons is a fast-serve coffee franchise that serves coffee, espresso products, cold beverages, sweets such as donuts, and breakfast, lunch and dinner meals. The company’s quality products, combined with a strong reputation for service and reliability, allow them to attract and maintain a large and loyal customer base nationwide. Although Tim Hortons and Renaissance Coffee operate in different segments of the coffee market, and differ strongly from atmosphere and business structure, to product quality and product pricing, Renaissance's sales level may still be strongly affected by this opening.
Kraft Foods The Coffee Pod Launch Problem Geoff Herzog, product manager for coffee development of Kraft foods Canada needs to decide whether or not to launch the single serve coffee pod in Canada simultaneously with the United States launch of the product. SWOT Analysis Strengths Kraft Foods is recognised globally as being a leader in coffee sales. Kraft’s two existing coffee brands in Canada lead the market in retail sales. There is already a well established distribution system. Weaknesses Financial constraint with a limited budget for a marketing strategy for the launch.
In addition to these two geographical divisions, Kraft's products are divided into one of five categories: snacks & cereals, beverages, cheese & dairy, grocery, and convenient meals. Kraft Food was the world leader in the coffee sales with 15% in the global market. In Canada, Kraft’s Maxwell House and Nabob brands enjoyed a combined 32% share. B. Strategic Issues and Problems: One of biggest challenge for Kraft Foods Canada was to make the decision if they should launch their coffee pods in Canada simultaneously with its launch in USA.
Memorandum To: Dr. Gordon Date: September 9 2012 Re: Keurig Case Analysis Strategic Question: Which product and pricing strategies should Keurig follow to move into the home market. Facts about the case: Keurig Inc. was founded to develop an innovative technique that would allow coffee lovers to brew one perfect cup of coffee at a time. It developed and patented single portion pack and a revolutionary new coffee brewer. Its first brewers were initially targeted towards the office coffee service market. In February of 2002, however, its ownership structure changed enabling it to raise $10 million in capital to expand into the at-home coffee service business.