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.
Panera offers their customers the chance to come in the café to order breakfast, lunch, daytime and the “chill out”- time between the breakfast and lunch and between lunch and dinner. Panera Bread’s growth strategy was by opening both company-owned and franchised Panera Bread locations, the franchising has been a key competent of the company’s efforts to broaden it markets penetration. Panera Bread’s strategies can be categorized under the Best-Cost Provider strategy. Panera Bread provide a fairly common café beverages around the country, but they have manage to offer their products at lower cost to its rivals and still gives customers more value for their money by incorporating good to excellent product attributes. Panera Bread tries to achieve a type of competitive advantage that is a lower cost than its rival with a market that targets a broad cross-section of buyers.
Coffee Roasters operates in the niche market of Fair Trade Coffees. Just Us! Coffee Roasters is wishing to expand their company, thus profits, which means that they face more competition from outside their niche market. As a result, Just Us! Coffee Roasters now must compete on a large scale against strong mainstream competition and well established local and international brands.
At the start, was having created a successful brand strategy coupled with their rapid growth of new store openings in “high-traffic, high visibility settings”. As well, selling premium priced coffee in addition to whole beans. They were particularly skilled at choosing and catering to their target market of “primarily affluent, well-educated, white-collar patrons”. Their competitive differentiation came in creating an “experience” for their customers and specializing in ambience at their locations to encourage a place where the customers would want to stay and hang out. Schultz vision was to create a “third place” (other than home and work) for its patrons to want to be.
Starbucks has some distinctive competencies which differentiates itself from other coffee: • Product Quality and variety: Starbucks’ trademark is the unique features of the coffee-based beverages. Customers get to experience luxury coffee drinks at affordable prices, in a very cozy environment. Starbucks created a coffee culture, educating its customers on the coffee types, origins, and the roasting process. This in turn helps them to build brand credibility • Consistency: Starbucks coffee of a particular variety tastes’ the same no matter in which part of the world it is being sold. • Customized and Seasonal Products: Consumers have the choice of extra whipped cream, caramel syrup, etc.
This strategy was best captured by the phrase “live coffee.” This phrase reflected the importance of keeping the national coffee culture alive. From a retail perspective, this meant creating an experience that people would want to incorporate into their everyday lives. First of the three components to the branding strategy was simply the coffee. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help insure that. Starbucks worked directly with growers to purchase green coffee beans, it oversaw the custom-roasting process, and it controlled distribution to retail stores around the world.
BUSI 520-D06, Group 2 Liberty University Starbucks Blonde Roast Coffee May 11, 2012 Introduction Provide a description of your product/service and a brief history of the firm that produces your product/service. Starbucks Corporation is a leader in the coffee industry with coffeehouses around the world. Since their inception in 1971, their goal has consistently remained to “share great coffee with our friends and help make the world a little better” (Our Heritage, n.d.). Starbucks is widely known for their retail stores; however, the company has plans of becoming a brand known for their consumer-products as well (Jargon, 2012). Starbucks offers a variety of coffee and coffee products in their retail stores and in grocery stores worldwide.
The Production Concept – Companies focusing on this concept will primarily focus on achieving high production efficiency at low costs and mass distribution as they believe the consumers are primarily interested in widely available products at low prices. This concept makes sense when the consumers are more interested in obtaining the product than features. The Product Concept – Companies will study a product concept before they market the product to their customers are a lot of time and money is spent on research to ensure they reach their target market, in order to do this they must fully understand and know the product to ensure they can present the products best qualities and features. 2. Britvic’s micro and macro environment.
Starbucks was one of the first to create a product with such distinction and the product was sold both in the cafes as well as grocery chains. Another factor was the excellent customer service that they provided and finally, the atmosphere. People came to the café to buy coffee however; they were also drawn in by the atmosphere. Starbucks success rest on the facts that they: Started with a good business concept, thought big, thought outside of the box and partnered smart The most compelling thing about Starbucks value proposition was that Starbucks wanted to create an experience for customers that they could “weave into the fabric of their everyday lives”. This was important for top managers at Starbucks because instead of just having customers come in and out for a cup of coffee they can also think of Starbucks as a place to relax and meet with friends.
* Service-It provided emotional benefits and tried to enhance the national coffee culture through its offerings. Recommendation Starbucks can convinently increase it sales by converting its satisfied customers into loyal customers. However, that will require better handling of customers and shortened service time. So, they