More than just a high priced coffee shop, Starbucks offers a combination of quality, authority, and relative value. The company sets it price on a simple idea: high value a moderate costs. Starbucks also spends a lot of time and energy on differentiating itself from the competition.
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.
Starbucks aims to give good quality products to theirs customers and that with those products they could make their business known. With fair trade products and good quality beans from Ethiopia, India etc. they bring different kinds of flavors for their drinks. And for objective since they have started from a small coffee house in Seattle, Washington, USA they would open more shops in the USA and make their business
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. This issue is worsened by the fact that Tim Hortons is already highly popular off campus; students familiar and loyal to the brand may automatically be inclined to take their business from Renaissance to Tim
Robusta is primarily used in blends and for instant coffees. Coffee is one of the key traded commodities for developing countries. Coffee is known to be grown in frost-free economical areas and the production of coffee is crucial to non-arid countries in the tropics. Coffee is the vital source of foreign exchange, main source of cash income for about 25 million farmers, mainly small land holders in Latin America, Africa, and Asia. Although the coffee business is progressing in consuming developed countries, the current fallen rock prices have been causing an immense hardship to countries where coffee is the key economic activity and the farmers who produce it.
Although Starbucks does face much competition, one of their biggest threats seems to be themselves. They have grown quickly which means they had to spend numerous amounts of money to open new stores and expand their products. “The company had its success through baby boomers in the 90’s, but now the Generation X is not liking the environment of the shop and the young generation feel out of place in the coffee shop, above all the price of coffee seems to be little expensive to them ("Case: Starbucks- Going Global Fast", 2012)”. With Starbucks wants to grow r rapidly and business oriented, it could be possible that they forget how to give customers that one on one customer service. Starbucks was a coffee shop that allowed friends to come together over a cup of coffee and now it has expanded with Wi-Fi in stores, and online stores.
In this essay, coffee selections, food selections, and interior and design of Starbucks and Tim Hortons will be compared and contrasted. Coffee is a popular choice of beverage no matter what the time of day it is – morning, noon, and night people want their coffee. Tim Hortons and Starbucks both offer great coffee options, though they are extremely different. Tim Hortons sticks to simple, regular ground coffee for a reasonable price. On the other hand, Starbucks offers exotic and different types of coffees for a higher price.
Bargaining power : Customers have low bargaining power since they typically can't bargain for the price of their coffee. Customers also have more options due to the large variety of products offered by number of competitors Switching cost : Based upon the low switching cost, buyers are extremely powerful in this situation. There are several coffee shops/cafes in our area, all offering similar products to customers. Discount reusable thermos and/or mug : By giving a discount to those who bring in their reusable thermos and/or mug into the store (aim to be as eco-friendly as possible) Complimentary products and services: These range from merchandise sold at our cafe to different types of good that are offered • Mugs/thermos with our logo • Paper Cups • Coffee beans/Coffee grounds • Sugar • Cream Loyalty program : The café rewards customers based on their spending.This is aimed at attracting and maintaining customers at Broadway Cafe. Through this program we will develop a competitive advantage by implementing an IT solution specializing in customer relationship management as well as other databases and interfaces that ultimately increase efficiencies, while optimizing operations Loyalty programs reduce
Not only is this changing its economic strategy, as coffee gets more expensive to buy for the company, but it more importantly improves the image of the brand on the social stage. Indeed, this presents Starbucks as a company which is concerned with the quality of the production, which employment conditions etc. Be careful! This marketing strategy tends to be misleading: Starbucks is not a fair-trade company! Only the majority of the coffee it purchases comes from fair-trade
Formulate strategies 9. Implementation plan 10. Evaluation plan Introduction In my previous assessment I have started to look and analyze one of the most popular and know coffee shops in the world “STARBUCKS”. At this period and economical situation company is issuing a big competition in the market and there has to be changes done within all the company to make sure that company is able to hold it’s place within the market. That is why in my assessment I will try to look closely to the company, see how it operates as well as will try to implement company strategic plan while comparing it to other similar brands in the market.