However, potential threats do exist from growing chains of retail coffee shops including Panera Bread, Diedrich Coffee, and Caribou Coffee Company. 3. Threat of substitutes: The treat of substitutes is moderate. Comparing to premium coffee, soft drinks such as soda, energy drinks, and water are cheaper and easier to get. But it is hard for customer to change the buying habit.
Answer 2) The Differences between 90’s and 2002 Communicates a different Brand Image: In the 90’s Starbucks was associated as a comfortable place to hang around in with their value proposition based on customer experience. However, in 2002 the brand image of Starbucks has been of a commercial/ corporate like entity. The brand moved from “Premium Quality” to “To-go Coffee”. Profile of the customers The profile of the consumers in the 90’s was individuals with high-income, college degrees with a consumer demand skewed towards high quality. However, a typical 2002 consumer had lower income and had lesser education.
Financial Statement Analysis Starbucks Vs. Caribou Coffee By: Dan Polak 2/21/11 Which is the better investment? When choosing a company to invest in, it is best to avoid brand name bias and choose the company that, according to its books, is the most efficient and profitable. While Starbucks is the famous brand name, it is also clearly the better company. Not only is it the international fresh brew behemoth, but, year by year, it never ceases to prove just how much the world, especially Americans, love their fresh cup of coffee and how much they’re willing to pay for it. When analyzing the four financial statements, it is easy to see that Starbucks triumphs over Caribou in almost any statistic or ratio.
2. The major sources of risk: (1) Saturation in the U.S. market and crowded stores makes Starbucks harder to grow in U.S.; (2) Challenge of attracting the next generation of customers; (3) Dissatisfaction with the employees. Potential solutions: (1) Expanding into international market; (2) Providing new coffee products with lower price, and supplying customized food and other non-coffee items with a special atmosphere, such as a high-speed wireless Internet service; (3) Creating a better environment for employees to work and
Roy Fultz, Student ID 103332, Unit VII Scholarly Activity: 1. Avon went global because they felt that there was a slow growth in the United States market, because they felt that they had no market for cosmetics and toiletries. They needed to go global because it would mean they could take the sales that competitors and that is what makes the United States so successful in beauty markets and that is what makes the market so competitive. In the domestic area it will determine how sales will do for population of women that uses the cosmetics for certain ages and the Avon company uses a direct sale and this has proven to have its advantages by doing this Avon will allow them to pay for the space in all the stores. 2.
Executive Summary This diverse media plan is anticipated to reach out to Lipton tea current target market and help Lipton tea to remerge back into the young age group market, which include both male and female, ages 18-39. The campaign’s mediums will focus primarily on print Ads. Most of the research found points to the dominance of soft drinks and coffee in the young generation market. With Lipton tea having difficulties staying in this market since the1990’s, their main competition will be Soft drinks Company as coke-cola and another famous tea producer Nestle. The target audiences for this media plan are young consumers who used to non-traditional media.
The primary ingredient that gives coffee its stimulatory effect is of course, caffeine. Since 1820, caffeine has been one of the most widely used psychoactive drugs and is often found in everyday beverages such as tea, energy drinks, and‐ most commonly‐ in the aforementioned coffee. According to a study conducted by the National Coffee Association of the USA, university‐age students are the fastest growing demographic in terms of coffee consumption. In 2005, about 26% of university‐age students claimed to be regular consumers of coffee. However, one year later that percentage grew to 37%.i While regular consumption of coffee is not necessarily detrimental to one’s health, the next question that arises is how many cups of coffee constitute as “regular”?
How are the trends of health concerns, the ageing population and anti-globalization likely to affect the continued growth of the company? SWOT analyses of Starbucks. Strengths: 1. Starbucks is a famous brand around world which offers good tasting coffee which is widely needed and it offers music with its coffee, so it has a broad market especially in BRIC. 2.
Starbucks tries to make its’ image as the high end café by offering the comfortable sofa, a selection of leading newspapers and free WIFI. Even its’ primal target customer is everyday customer, not broad customer would choose Starbucks because its’ level. Obviously, determining the number of coffee drinkers is very important. The customer who have the habit of drinking coffee most have a certain economic strength, number of customer drinking coffee who live in central business area, shopping malls, office buildings is larger than the customer live in the others areas. That’s why Starbuck’s located in this kind of area, because these people are its’ primary target customer.
But there is a weakness that the organization normally focusing on retailing their product with coffee. The external factors or forces that affect the Old Town White Coffee are demographic forces, economic forces, natural forces, technological forces, political forces, and cultural forces. These forces are not controllable by the organization. In demographic forces, we can know that , the company targeted all ages of people which are students and youth, workers and senior citizen. In the economic factors, the economic trend is easily affecting the company by capital availability and cost and demand.