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A strong brand influences the choices made and products bought by customers. Once a company has built a strong brand, it must maintain a positive reputation. Premium Price Companies with strong brands can charge more for their products and services because the brand is valuable in the eyes of consumers. Some customers won't even consider purchasing alternative products because they do not believe they will receive the same value. For example, a customer may choose to buy a premium cup of coffee from a national coffee chain instead of buying coffee at a local corner store.
HD 220 Consumer Culture & Behavior Paper Topic 1: Starbucks Growth in Asia Nicole Gutzmann Sep. 20th, 2012 Starbucks is a worldwide beacon for coffee lovers. This is because of their genuine customer service and their high-quality roast coffee, along with a variety of other tea and juice options. Their sales include hot and cold drinks in an assortment of flavors, salads, hot and cold sandwich panini’s, and snacks. The company is very adaptable in that they pride themselves on very seasonal and location specific drinks at each of their stores. Starbucks has retail options as well, for instance, coffee mugs and tumbler cups, in addition to coffee brewing interments.
This is a good decision because the company’s overall market penetration in Canada exceeds that of McDonald’s in the US. B. Success to Tim Hortons would be to increase their market share in America and increasing the market while keeping their reputation for reasonable products at a low price. I think that the business should do some market research in America because there may be different preferences in the different countries and also coffee makes 46% of revenues in Canada while only 32% in America. However this could change if they produce good quality and a speedy service.
Rings of dough are raised into yeast balls which are then baked, deep fried, flipped and lastly glazed for perfection. Krispy Kreme's competitors include Dunkin Donuts and Starbucks. Krispy Kreme has had a stable reputation for providing a high quality and original product since 1937. One can say the great taste of a glazed sugary treat it what keeps customers coming back for more. However in a declining economic it is hard to predict how Krispy Kreme will fair epically when so many have become heath conscious in all areas of eating.
Starbucks FDI Case: Q 1: Initially Starbucks expanded internationally by licensing its format to foreign operators. It soon became disenchanted with this strategy. Why? Ans: Because this strategy did not give Starbucks the control needed to ensure that the licensees closely followed Starbucks’ successful formula. Note: “Starbucks successful formula” refers to its basic strategy, which was: To sell the company’s own premium roasted coffee, along with freshly brewed espresso-style beverages, a variety of pastries, coffee accessories, teas, and other products, in a tastefully designed coffeehouse setting also providing superior customer service.
While the economy is still low, sales of these retail products will likely remain high as consumers purchase lunch meats and other foods rather than eating out and frozen desserts rather than purchasing from a more expensive local bakery. Food service will also likely remain an attractive industry as most of the national chains listed as consumers in the case study are directed at value-conscious consumers who also desire quality. International beverage is a growing industry, as consumers move toward making their favorite coffee (and other) beverages at home rather than spending $5 a cup at their favorite chain. With the development of single serve coffee makers, this industry has grown even further and it no longer takes special skill to make a decent cup of coffee. The two remaining industries, North American and International bakeries seem less attractive, but these may pick up again down the road.
Starbucks offers innovative products that sets it apart from small coffee shops. Instead of offering basic lattes, cappuccinos, or plain muffins, Starbucks offers seasonal flavors and unique food items. From a glance at their menu, one can see that they are broadening their offerings in order to gain more profit. An example is when the cake pop craze first began to pop up, Starbucks introduced their line of cake pops to their stores to partake in the popularity and profits from cake pops. Starbucks knows their customers and knows how to respond to market demands.
Afternoon Kaffee-Trinken is a social ritual Germans cherish, partly because the custom includes the richest, most beautiful pastries (Hazleton 177).On Saturdays, when the family is together, coffee and cake will be served at the dinning table (Hazleton 37). The size of the cake varies at Kaffee-Trinken, because it is said to be more proper and elegant to eat smaller pieces, or even get rid of cake all together and serve lemon cookies. During Mittagessen a lemon cream and cookies are often served. To complete Kaffee-Trinken, a plate of cookies is usually brought out and set in the middle of the table by the cake bases. In the past Kaffee pastries could be more ceremonious (Hazleton 70).
• Compare to international market, North American consume coffee out of home averagely higher than most of the countries. The values Starbucks provides to its customers are: • Starbucks gives customers a central point to relax, read books and meet friends • It became a gathering place for neighbors • Starbucks being as a third place away from home and work for friends circles and co-workers teams • An experience of uplifted, pleasant and diverse for customers to spent time 2. Starbucks market entry strategy were generally joint ventures and licensing agreements. • From Austria to Taiwan, Starbucks connected locally with best possible partners as joint ventures and they set forward basic strategies expectation from its possible partners. Such as financial solvency, knowledge of local market conditions, prior retail experience, and creative ability.