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
Perform a detailed Porter’s Five Forces analysis for The Broadway Café. Buyer power: The Broadway café has and increased loyalty with its customers because they have been coming to the restaurant for many years. The Café should allow the customers to access the internet through a wireless capability at the café. This will make the Café more possible more attractive to some people that have never been to the café. Offer a coffee card to the customers that give repeat business, for every 10 cups of coffee that they purchase they will get one on the house.
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.
I think the biggest advantage of the broadway café is that it has been running business over 60years. Therefore I want to address my staff that there are a lot of regular customers in broadway café and the reason why they keep coming our coffee shop because they like our coffee and customer service. Making good coffee, providing high quality of customer service, be confidence about that ourselves and Offering loyalty card or discount card to customer, so they continue to come to our coffee shop. Moreover, advertise local newspaper or social network, so more connect with local community. Making Business Decisions I Michael Porter’s Five Forces Model is a useful tool to aid organizations facing the challenging decision of entering a new industry or industry
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.
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.
Starbucks provides a variety of coffees and es pres s os as well as fres h food items including pas tries , s andwiches , s alads , and other items . Additionally, it s ells branded bottled co ffees and ice cream. Starbucks als o owns s everal brands including Seattle’s Bes t Coffee and Tazo tea. Starbucks Corporation was given a weighting of 20% becaus e of its brand image and appeal to its target market. Starbucks offers a s imilar fres h ingredien t environment and values its employees highly.
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.
This is a good example of a first-mover advantage because customers will come to my store to try out a new product that is only offered at the Broadway Café. Making Business Decisions 1: The Buyer Power for the Broadway Café is very high because they offer many of the same products that their competitors, such as Starbucks, offer. Therefore, customers have many other coffee shops to choose from for their products at all different price points. The Supplier Power for the Broadway Café is low because there are many other supplies of coffee that can be chosen from. If there are any supplier issues, then the customer can quickly choose another supplier.
Mccafe equipment is small, inexpensive and easy to setup Drive-through option for fast food delivery for the busy customers Mccafe positioned for working adults who enjoy coffee Mccafe had a positive initial customer response allowing a 30% increase in coffee sales in the 1st 6 months of operation from the previous year WEAKNESS: Fast food industry is more often perceived as unhealthy due to its high in calories. There is growing competition in the coffee business with Tim Horton’s restaurant having the greatest market share followed by Mccafe (e.g., Wendy’s merger with Canadian coffee and doughnuts, via Tim Horton’s, is expanding into the coffee business. Mcdonald’s was also recovering from a loss of market share in breakfast sales There is still much to be learned about Mccafe’s products in terms of which items are successful and which items are not. Opportunities: 29% of the industry’s coffee consumed is purchased from drive-thru’s and has grown fourfold since 1995 Annual retail coffee consumption had increased by 15 percent in Canada There is a decrease trend in the fine dining segment and an increase trend in the quick service