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.
But the main way that Wal-Mart offers such low prices is by buying their products from companies who make their products in other countries such as China. In places where minimum wage can be as low as 10 cents an hour, these companies can afford to sell their products for less than what the American companies can produce them for. This drives the American companies to open factories in other countries as well. The producers of Wal-Mart, for example the company that makes the beds that will be sold at Wal-Mart, are at the mercy of the superstore. As the largest company in the world, Wal-Mart is obviously the largest customer for all of their producers.
Term Project Marketing Clif Bar to China Abstract Clif Bar is a family owned private business that was formally launched in 1992 by Gary Erickson. In deciding where to introduce Clif Bar, we debated between India, China, Brazil, Spain, and Egypt, before finally deciding on China as our launch country. Looking at indicators such as GDP, household income, family structure, cultural foods and traditions, transportation, advertising options, and competition, we projected that China would give us the greatest return on our investment. The existing snack bar market in China is also favorable for Clif Bar, as the number of competitors is low and market saturation is also lower than in most countries. Using Porter’s Five Forces as a guide, China offers relatively low competition and threat of substitutes and entrants.
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.
A comparison of net revenues (excluding specialty operations, which are broken down in Exhibit 1) and store growth reveals a pattern of diminishing returns (Exhibit 2). This might contradict Day’s view that “significant cannibalization…was more than offset by the total incremental sales associated with the increased store concentration. Caribou Coffee, a competitor, differentiated itself from Starbucks by focusing on store environment, whereas Peet’s Coffee and Tea positioned itself as the freshest coffee on the market. Evidently there were thousands of independent specialty coffee shops which were in a position to provide “highly personalized service to an eclectic clientele.” Furthermore, Dunkin Donuts, a 3700 store chain, was generating half of its profits from coffee and positioned itself as a fast service coffee-to-go brand. Despite this intense competition Starbucks is estimating that by 2005 would own approximately 20.5% of the US retail coffee market (Exhibit 6 in Case Study).
1 - What is the nature of the opportunity in China and why would Wal-Mart seek to expand there? The opportunity for Wal-Mart in China is huge due to the shear number of potential consumers and growing middle class ready to spend money on retail products. However, its economy is very different from most other large countries for many reasons. The P.E.S.T. analysis provides a macro level view on the environment in China.
Schultz saw the opening in the U.S. market to capitalize on the coffeehouse experience that was undervalued at the time. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? Starbucks had over 700 stores in the United States at the time that they decided to expand internationally.
McDonalds and Starbucks have locations in China already, and both have a great breakfast selection paired with a wide variety of gourmet coffees. Therefor breakfast will be key into acquiring a loyal customer base and becoming a successful competitor. More research will be required in order to develop ways to satisfy our target markets needs. Students and businessmen are usually in a hurry, meaning employees must be quick and still able to provide a high standard of customer service. To attain such a standard, strong training will occur as well as training for making
4. The case of Starbucks: ethics and marketing Starbucks changed its main supplier in terms of coffee, and now its major coffee producer is the global organization Fairtrade (“commerce equitable”.) Starbucks has always presented itself as a fair-trade company: it presents itself as an ethical corporation, claiming that it pays higher than market price for its coffee, thus distancing itself from other coffee houses. By doing so, by adhering to fair-trade movement, Starbucks partakes in the helping of 100,000 coffee farmers and communities. 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.
Its no surprise that China is one of the most Industrialistic country with over 1, 330, 044, 544 people ( as of July 2008 Source: www.google.com ) which in my scientific analysis says nearly 700, 000, 000 are in the work force and within nearly 100, 000, 000 or less (much, much less) are in agriculture or livestock. Thus this is how China has become one of the worlds super powers. When you look at the numbers it makes no sense. But to a economist (or a really smart person ) the meaning is clear. More people = more workers = more money.