Buyer Power Broadway Café is no longer unique commodity. With the Starbucks being on just about every corner and McDonald’s even offering specialty coffees; the buyer is overload with choices and availability. In order to save my business, I must create a competitive advantage by developing a loyalty system. My loyalty system will need to attract the buyer to my business more often that my competitors. Since I am small business, my loyalty program cannot be large scale.
Linh Vu 1) What factors accounted for the extraordinary success of Starbucks in the early 1990ies? What was so compelling about Starbucks’ value proposition? Describe Starbucks product. - The long time vision: Starbucks created a chain of coffeehouse that would become American’s “third place” besides home and work. A place where they could go to relax and enjoy others, or just be by themselves.
Starbucks offers a variety of coffee and coffee products in their retail stores and in grocery stores worldwide. Recently, Starbucks has added value to their retail stores with the expansion of their breakfast and lunch food selection, as well as with the arrival of the Starbucks Blonde Roast Coffee. Through value exploration, the avenue by which a company identifies new opportunities (Kotler & Keller, 2012, p. 58), Starbucks discovered there was a large group of consumers who preferred a milder roast coffee, when compared to the traditional dark roast coffees. In hopes of meeting consumer preference, the Starbucks Blonde Roast was developed and introduced as the newest brewed coffee by Starbucks. It is a “lighter, mellower roast coffee developed to meet the demands of consumers who requested that Starbucks create a lighter-roasted coffee.” According to Smyl & Edelman (2012), Brad Anderson, master roaster for Starbucks, said of Starbucks customers, “They told us they wanted a flavorful, lighter-bodied coffee that offers a milder taste and a gentle finish.
Starbucks started with one single coffee shop but has developed much more over the years. They highly regard their employees, who they refer to as partners, and that is the first step in measuring their success as an organization. Starbucks owns and operates its own factories, warehouses and retail stores and they are in charge of their own merchandising as well. Starbucks’ vision is apply its name to more than just coffee products. These goals have allowed Starbucks to achieve such success in both the domestic and global markets.
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.
Implementing the loyalty program and creating a database with our customers would allow us to be competitive with other cafes and coffee shops. Supplier power, the second of the Five Forces Model, is also high for the Broadway Café as there is no competition in the area and has not been since the café opened in 1952. With talk of a new, popular café opening up in the area, our supplier power will decrease so we have to come up with ideas, such as a coffee or tea of the month, to keep our customers coming back to the café. In
Starbucks 1. The factors that made Starbucks so successful in North America: • The location selected for the Starbucks cafe’s was strategically implemented for ready access to consumers and also right in the strategic location where densely populated areas. • Starbucks cafes started in many crowed unified areas such as grocery stores, airports, united airline flights, barnes and noble bookstores where costumer can relax and spend a piece of pleasant time. • Starbucks’ success attainable and reliable on the environment and the method how they positioned Starbucks cafes; the Starbucks cafes is a comfortable center to have a good time. • Compare to international market, North American consume coffee out of home averagely higher than most of the countries.
This strategy was best captured by the phrase “live coffee.” This phrase reflected the importance of keeping the national coffee culture alive. From a retail perspective, this meant creating an experience that people would want to incorporate into their everyday lives. First of the three components to the branding strategy was simply the coffee. Starbucks offered the highest-quality coffee in the world and controlled much of the supply chain as possible to help insure that. Starbucks worked directly with growers to purchase green coffee beans, it oversaw the custom-roasting process, and it controlled distribution to retail stores around the world.
Coffee Roasters operates in the niche market of Fair Trade Coffees. Just Us! Coffee Roasters is wishing to expand their company, thus profits, which means that they face more competition from outside their niche market. As a result, Just Us! Coffee Roasters now must compete on a large scale against strong mainstream competition and well established local and international brands.
Customer value proposition is leveraged around serving the coffee experience into everyday lives. Quality Coffee, great service and atmosphere combine for a completing value proposition. Working directly with growers to purchase green coffee beans, overseeing the custom-roasting process, and controlled distribution ensure a quality product. While extensive training confirms excellent customer service, clean and well-maintained worldwide stores that reflect the personalities of each community, thus building a high degree of customer loyalty. (Starbukcs Corporation, 2012) In 2010 Starbucks declared a dividend for the first time and key