This includes marketing items such as their Via® Ready Brew instant coffee product, and their Seattle’s Best Coffee brand (Starbucks, 2011). Their strategic plan also includes a focus on innovating appropriate new products, such as the coffee brewing machine mentioned earlier. Another component of their strategic plan is to increase their global products line. In order to do this they had to dissolve a distribution agreement with their former distributor. They are also focused on advertising.
Customer expectations for the service and/or product Customers expect an environment that is tailored to their coffee and or tea needs. They expect the employee to focus on getting their orders made and served. This goes without saying that the customer also sometimes expects to be waiting in line due to the popularity of it all. Because Starbucks prides itself on efficiency, customers are their number one priority. “They don’t just talk customer service, they deliver it.
Companies with smaller profit margins must create a larger following of loyal customers because they need to rely on the quantity of customers, not the markup, for their profits. Caffe Umbria will charge $2.00 per 16oz cup of coffee to keep it below the national average cost while not compromising quality of the product. Packaging needs to stay small for purchase in store and online for home brewers so that the customer still gets the same fresh taste at home as they do in the cafes and extra care should be taken to ensure the freshness of the coffee, safety of the packaging, and the shrink in the packaging process. The lower the costs in shrink of packaging and
Answer: A long with the changing demand of customers and developing technology, coffee roasters need to catch up industry trend and adjust the change to ensure stay and continuing success in the coffee industry. Since Keurig introduced a new technology which serves speed and provide fresh taste at the same time, coffee roasters will need to put more effort on develop a new way to package their products to compete with K-Cup and open up their market and consolidate market position. Q1-3: how attractive is the Keurig system to Keurig? Answer: Keurig is providing easier and efficient way to consume fresh coffee. Considering the number of cups consumed in offices per year which are approximately 20.8 billion (1,937,000*43*250), making $0.04 profit on every K-Cup will bring 832million profit to Keurig per year (not considering time value of money, tax and etc.).
Therefore, he put more effort in providing benefits for employees. He shared his dream, thoughts, and vision to every member of Starbucks. He showed his appreciation to the contribution of each employee of Starbucks by listening and operating every potential idea of his co-workers and employees in expanding Starbucks, such as adding skim milk to choices, practicing the ideas of Frappuccino drinks, ice cream, and coffee bottles. Moreover, he provided bean stock options and health care benefits for both part-time and full-time employees. Because of the great relationship between employees and manager, Howard slowly closed the gap
Additionally, Starbucks has distribution agreements with office coffee supplier, hotels, and airlines. Using a variety of distribution channels allows the company to reach a wider market, however the company needs to be careful with this approach due to the potential channel of conflict. Implementation of Pricing Strategy Starbucks is the leader of the coffee market. As an individual company, it controls several times more market than any of its competitors. More than just a high priced coffee shop, Starbucks offers a combination of quality, authority, and relative value.
When someone says they are going to get a drink from Starbucks, without thinking, you automatically are filled with images of a high-end coffee shop and can maybe even smell the brewed coffee. Without even realizing it, every aspect of Starbucks has been carefully chosen to persuade customers to enter the store, and to buy their coffee (Ruzich 433). In this rhetorical analysis/commentary of Starbucks I will be going in depth on the authors article about Starbucks. Not only does Starbucks persuade a person to buy their coffee, but also the warm, cozy atmosphere makes a person feel at home so it gets them to stay in the coffee shop even longer. Purpose: Ruzich’s purpose in this article is to inform the reader of the reason why Starbucks has become such a sensation.
With this recognition, Starbucks partners (employees) and customers reflect their gratitude by supporting the organization (Katrinli, Gunay & Biresselioglu, 2011). Starbucks provides excellent benefits to their employees. They offer discounts and savings for education and provides a culture that values and respects diversity and inclusion (Working at Starbucks, 2013). Starbucks has a strong culture. They built their company on values.
They could collect their competitor’s sales figures. This is an example of written communication used within the business. The main purpose of collecting this information would be so that Tesco would get an Idea of what type of sales figures they them could expect. One other purpose of collecting this type of information could be to set self a target for their own café. Costa Coffee and Starbucks make a lot of money and have a high market share.
With a solid financial plan, the organization can tackle initiatives without the organization finding itself in so many debits they cannot recover. Initiatives can also affect a company’s financial planning, just as it affected Starbucks initiatives. Howard Shultz, the CEO of Starbucks stated, Starbucks has initiatives and plans that include increased stores, operating efficiencies, decreases in cost, and even more long time growth for Starbucks (Starbucks, 2011). In order for Starbucks to increase stores, decrease cost and increase operating efficiencies, they had to create a financial plan for this initiative. When a company, such as Starbucks, starts financial planning, it begins with a firm’s working capital to achieve the company’s goals and initiatives.