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. Financially, if they continue to expand without having enough customer growth Starbucks could go into bankruptcy or
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
In-N-Out also seems to have a more customer loyalty basis, while McDonald’s seems to be just a pit stop fast food joint and is known to not be fresh and gross. 4. How would you
Liberty University Final Group Paper BUSI520 –B21 Jeffrey Wietholter, Nathaniel Martin, Richard Oros, John Rafoss, Kevin Staples March 7, 2012 Executive Summary Keurig is today’s fastest growing home and business single cup coffee maker. Their invention of the single K-Cup coffee roasting product has revolutionized the coffee industry. Keurig today is a subsidiary of Green Mountain Coffee Roasters (GMCR). GMCR prides itself on producing premium all natural coffee beans and is now providing the coffee for Keurig’s K-Cups. Written below is an integrated marketing analysis of Keurig’s current business.
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.
Q1-1, how attractive is the Keurig system to the typical Office Coffee Distributor? Answer: Since K-Cup represents a new means of packaging coffee which increase shelf life of and assures the freshness of coffee, distributors may able to reduce the frequency of supply and reduce the pressure from delays in transportation. Above features may lead distributors save money on distribution process, thus they may prefer distributing K-Cups over their currently supplying coffee. Q1-2, how attractive is the Keurig system to the coffee roaster? 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.
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. Executive Summary Starbucks Corporation has arguably been the most successful coffee chain in the past few decades, using their aggressive expansion strategies to push out much of its competition. Through its expansion, Starbucks has focused on creating a dense network of stores all around America, while also opening up new locations all around the world. By leading the retail coffee market, Starbucks is able to sell its coffee for a premium price and increase their profitability. Its success can be seen in the gradual rise of its stock prices from 1992 till 2011.
Running Head: Starbucks Strategic Initiative Starbucks Strategic Initiative Introduction Starbucks Coffee Company has not been immune to the current economic downfall. Once basking in unwavering success, Starbucks now faces the challenge of retaining its customer base, which in the wake of economic struggle, has begun purchasing their coffee from less expensive competitors. Starbucks Coffee Company has wisely taken steps in their most recent annual meeting to address the issues of losing business and customers via numerous strategic planning initiatives. In the following paper, we will briefly detail two strategic planning initiatives enacted by Starbucks Corporation, as well as how such initiatives impact the company’s financial planning. Strategic Planning During Starbucks Coffee Company’s annual meeting, a series of innovative customer-facing initiatives were unveiled.
Introduction: I am investigating the social norms of coffee and how it is affecting the younger generation. It has become a substantial part of our everyday lives; it has become its own culture. In a young adults life they can become addicted early on because coffee isn’t just milk and sugar anymore. There are pumpkin spice lattes and peppermint mochas in order to lure in younger consumers. With infinite drink variations, it leaves people’s mouths yearning for more.
Sales may be higher in zones where coffee is more popular versus where tea is the main selection. (Gurufocus.com) The rollout of alcohol and wine sales in some locations of Starbucks was a big risk to take for the company. Which is why they chose limited stores to partake in this venture. It started with one location in Seattle and then moved on to Atlanta, Southern California and Chicago. Out of all of the locations, Seattle saw the biggest and strongest sales trend.