...date: | February 4, 2015 | cc: | Michael mandel | | | Mr. Peyser, you have requested me to perform this competitor analysis in order to help you analyze how our competitors are doing in comparison to our Green Mountain Coffee Brand. While Starbucks and J.M Smucker and Company are corporations as well, they lack the power that we do in the market, however, because they are two other major players, I decided they would be the subjects of comparison. So far, I have gathered much information and done many hours of research. Here are the results of what I have found. There are many competitors in the industry ranging from small independent business to large corporatized companies that have an established presence in the market. The major threat comes from Starbucks because the idea of getting cheap store-made coffee is becoming more appealing in today’s corporate society. If one had a large amount of disposable income and had to choose between roasting coffee in a Keurig or getting store bought coffee at a Starbucks every morning, they would hands down pick option number two at least 80 percent of the time. Going to Starbucks involves less effort and still gives you the same product. J.M Smucker is another corporation that produces a sizable amount of coffee, which they then sell to supermarkets and grocery stores. If we can beat both of these companies in those markets, it could potentially add much more revenue. The closest resemblance to our own product comes from J.M Smucker...
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...Caffeine is most widely known for its use in the coffee industry. Many Americans are dependent on their early morning Latte. Caffeine stimulates the central nervous system, which is why many people love this morning pick me up. Each caffeine molecule contains eight carbon atoms, ten hydrogen atoms, four nitrogen atoms, and two oxygen atoms. It has a molar mass of 194.19 grams per mol. The molecular formula for a caffeine molecule is C8H10N4O2. Caffeine can be found naturally in fruits and leaves of particular plants. The most popular of course is the coffee plant. Two main plants are used today for most coffee production. “Coffea arabica, known as Arabica coffee, accounts for 75-80 percent of the world's production. Coffea canephora, known as Robusta coffee, accounts for about 20 percent,” (“Arabica and Robusta Coffee Plant”). After harvesting the round fruit, we call coffee beans, they are ground up and filtered in hot water to make coffee. Coffee takes many forms in the industry. There are espresso shots, mochas, lattes, Frappuccino’s, and of course straight black coffee. Lattes, mochas, and Frappuccino’s are usually coffee or espresso shots mixed with milk, sugar, and other flavors to mask the taste of coffee,...
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...Introduction Central Perk is the name of a theme coffee house located at 616 building A, Chaowai SOHO, Beijing. The interior is an identical recreation of the coffee house of the same name in an American TV show called Friends. Founded in 2009 and currently staffing 42 employees, Central Perk provides coffee drinks and dessert fare. History Owner Du Xin is passionate about the TV show Friends, so much so, that he decided to open a coffee house as an identical recreation of the fictional coffee house in Friends. He describes the show as his religion, and he started the themed restaurant in 2009 to cater to fans of the show as well as fans of coffee. Many visitors to the cafe are students, who come for cheap coffee and the constantly looping Friends episodes with Chinese subtitles, which are helpful for learning English. However DuXin also suffered immediate hardship: In the weeks after opening he said “no body came in”. The shop is physically identical to the coffee house on the TV show Friends. Owner Du Xin watched hundreds of the show’s episodes to get the details correct, including having a custom made couch to match the one in the show. Strengths and weaknesses: Coffee shops are popular destinations, and Central Perk attracts additional customers because of the popular theme. Within 500m of Central Perk there are 9 other coffee houses; An informal survey of several coffee shops in this area revealed a steady stream of customers, from college students...
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...Discussion Question 1. Where did the original idea for the Starbucks format come from? What lesson for international business can be drawn from this? -First of all, Starbucks’s strategy was to provide their own premium-roasted coffee and freshly brewed espresso-style coffee beverages, along with a variety of pastries, coffee accessories, teas, and other products. When they spread to Japan coffee market, they used Japan’s local retailer, Sazaby Inc. Even Starbucks joined with Japan Venture Company, they didn’t lose their own coffee shop style. Finally they could get the success in the Japan market. In the international business, companies who want to invest to other country have to research and get a lot of information because they don’t know about foreign rules and regulations of business. 2. What drove Starbucks to start expanding internationally? How is the company creating value for its shareholders by pursuing an international expansion strategy? -Starbucks expects the foreign opportunities. At the 1990’s, Asia didn’t have any coffee shop markets. Moreover, coffee culture is not friendly to Asian. Someone thought Starbucks’s adventure doesn’t achieve. However, Starbucks used the “Starbucks experience” in North America, which coffee stores became places for relaxation, chatting with friends, reading the newspapers, holding business meeting, or browsing the web. This experience smashes to Asian customers. 3. Why do you think Starbucks decided to enter the Japanese...
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...automatically think of strong coffee; Starbucks is more than just coffee. This company offers an appealing atmosphere and friendly helpful staff to assist customers with various services. Not only does Starbucks offer exceptional customer service they also pride themselves in offering an excellent working environment and benefits to their employees. Starbucks’ mission statement states: “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow. The following six guiding principles will help us measure the appropriateness of our decisions: - Provide a great work environment and treat each other with respect and dignity. - Embrace diversity as an essential component in the way we do business. - Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee. - Develop enthusiastically satisfied customers all of the time. - Contribute positively to our communities and our environment. - Recognize that profitability is essential to our future success.” In order to maintain this mission many steps are taken to enhance each store within the vast company.” (Starbuck Corporation, Fiscal 2011 Annual report) Starbuck’s main competition is McDonald’s McCafe and then Dunkin Donuts Coffee. McDonald’s McCafe is marketing its low price strategy, while Dunkin Donuts, is offering that it simply has a better coffee and more on its menu to go with its coffee. Starbuck’s known...
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...equipment I chose is a coffee maker by Mr Coffee. I did some research into the coffee maker, and found the technical user manual. I found the manual easily understandable, and comprehensive. The manual is very informal, and topics covered in the manual are easy to locate with the table of contents. In the front of the manual, the warnings are present, and clear to the reader. With a triangle shape with an exclamation point to depict that there is present danger, or will damage the equipment if the caution is not read. With symbols present throughout the manual in areas the manufacturer deems necessary that potential risks pose a threat to the consumer. If these risks do not inform the consumer, the manufacturer would be set up with lawsuits, and money unnecessarily spent among employees will be costly. The company understands these potential circumstances by the way the user manual is wrote. Contact information documentation in areas that detail certain parts of the coffee maker is helpful to the consumer. If the consumer has any questions regarding the part details of the coffee maker, then the consumer does not have to search for the contact information. With extra parts shown on the page as the documentation, the manufacturer makes it easy for the consumer to contact, and order the extra parts for the coffee maker. With the step-by-step instructions clear, and concise in the coffee maker user manual, the reader can comply with the directions to operate the coffee maker. The pictures...
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...Demand of Coffee ECO/365 Consumption of Coffee Introduction Coffee is a household staple that makes it very difficult for some individuals to go without in the morning, afternoon, and at night. It is not surprising that individuals do not care how much they have to spend on a cup of coffee to get fulfill their much needed caffeine fix. When prices of coffee beans drop this may seem to be music to a person’s ear, but the reality of it is that many consumers may not see any benefit of the drop of coffee beans in their pockets. Demand For Coffee Coffee is enjoyed by individuals all over the world and individuals will go through great lengths to ensure that the need for this good is met. Utility is derived by consumers drinking coffee because their satisfaction of having their want or need met. Consumers will go through great length to get their daily fix of coffee. As stated in the article, even though the cost of coffee beans has dropped this does not necessarily mean that consumers will see a decrease in the amount they pay for coffee (Cho, 2013). People do drink more coffee because there are a lot more varieties of coffee available, this means that total utility of coffee will rise. Supply The supply of coffee beans coming from Brazil and Columbia has been plentiful and these countries are able to produce more coffee beans. This has been very helpful to the coffee market because...
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...STARBUCKS AS AN INTERNATIONAL BUSINESS 3 Abstract The researcher examines a detailed synopsis of the specialty coffee industry and the role that Starbucks plays in it. Starbucks is in a growth market, and it has a good relative overall position. The researcher will examine the business structure of Starbucks and the future implications of its current business strategies. By examining the strategic imperatives such as how to expand abroad and understanding the international context, the researcher will determine strong and weak business strategies of the company. Starbucks has overcome organizational and managerial implications that will serve as a strong model for international businesses. The researcher will then give strategy and implementation recommendations on how Starbucks can grow as an international business. STARBUCKS AS AN INTERNATIONAL BUSINESS 4 An Analysis of Starbucks as a Company and an International Business Introduction Millions of people all over the world walk into Starbucks every day for their cup of coffee, but it is more than the overpriced coffee that brings people in day after day to the Starbucks stores across the world. Starbucks offers an upbeat environment and friendly and helpful staff to assist customers in any question or problem they might have with the coffee or service. People buy Starbucks for what it represents and the status symbol that comes along with it. Although various business...
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...and classic. Pricing Reduce the price by, say, 20% to 30% to make it more competitive. Hence, it represents affordable brand. Advertising Hire a prominence individual to be brand ambassador. Give trial version at hypermarkets as a promotion for new flavors suggested above. Run a new advertising campaign that create awareness of brand’s new look and flavors. Multiple Brand Give minor product changes, under different brand names at lower prices. Own label products Makes an agreement with hypermarkets to sell Caferoma’s coffee under their own labels. A new product Create a new product either coffee or decaffeinated product under the Caferoma brand. Stretching the brand Selects few manufacturers of coffee equipment such as cafetieres, percolators, coffee machines, etc to use Caferoma brand on their goods. As a Marketing Manager, I would like to hear your feedbacks from the suggestion above. A quick response will be helpful for Marketing department to implement this project....
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...economic downturn Starbucks offers a unique experience, high-end speciality coffee and beverages, friendly and knowledgeable servers and customer friendly coffee shops. This was the winning formula for many years and enabled Starbucks to charge premium-prices. During the economic downturn, customers complained that the company had lost its hip, local feel and had become more like a fast food chain. The company also realised that its profits had reduced, and there was a need for major changes. Starbucks had to use different business strategies simultaneously in order to remain at competitive level. First, Starbucks revamped its in-store technology which sought to integrate its business processes with wireless technology and mobile digital platform. Starbucks engaged in the mobile digital platform when the company realized that over a third of its customers were smart phone owners. Knowing this, Starbucks implemented a technology that allows customers to pay using the smart phone application. This application allows regular customers to top up their Starbucks pre-paid cards and use them at any Starbucks branch to pay for their drinks by scanning the bar codes displayed on their phones. Using this application to pay was much faster than the traditional forms of payment. Starbucks also pursued a more aggressive product differentiation strategy by emphasizing on high quality of their drinks, efficient and helpful customer services, at the same time focusing on reducing operational cost...
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...Custom Coffee & Chocolates Company analyzes of the internal and external environment, identifying its strengths, weakness, opportunities, threats and develop strategies for the matches. Coffee drinking is one of the most world spread and consume habits of all time. Americans consume 400 million cups of coffee per day, equivalent to 146 billion cups of coffee per year, making the United States the leading consumer of coffee in the world. The Huffington Post (February 11, 2011). These consumed routine and behavior led many people to start up their own occupational in the coffee business. One such sample is close friends and ex roommates Bonnie Brewer and Stacy Kim, who decided to open a café which will offer coffee and fine chocolates. Holding a cafeteria is certainly an occupational who offers plenty of possibilities; on the other hand it is a business with an exceptional high competition. Necessary strategies, for successful story In the modern competitive business if you want to be the best you should be the first among all, offering customers something new, something different or you should be competitive by offering low-priced services. Although sounds that simple, those are the basic rules. Logically, you could not become the greatest overnight because it needs many years of time and resources. However, in imperative of more successful business story, Kim and Brewer definitely must implement the following strategies. Their USP products, precisely the coffee and chocolates...
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...database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com). 2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between. 3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate. 4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is available for purchase. A trained observer records the reactions of those customers who order and drink the new coffee brand. 5. A semantic...
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...Xavier Institute Of Management, Bhubaneswar | Content Analysis of Facebook Data Costa Coffee | Submitted to Prof. Sandip Anand | By | Rubinderjit Singh Randhawa | U112164 PGDM 2012-14 Marketing Management – III Date: 5th March, 2013 Xavier Institute of Management, Bhubaneswar Contents Introduction 3 Facebook Data for COSTA COFFEE 3 Summary 19 Overall Attitude towards Costa Coffee 19 Key Insights 20 Managerial Action Imperative 20 Introduction Consumers choose brands on basis of following benefits. These benefits may be either positive or negative. They can be further categorized as:- * Functional criteria or M1 e.g. Apple iPhone 5 have smooth finishing, slim (M1 +ve), Apple iPhone 5 aluminum back get scratch marks easily (M1 –ve) * Emotional criteria or M2 e.g. iPhone 5 is a status symbol (M2 +ve) Android users consider iPhone users as isheep (M2 –ve) * Social or M3 e.g. iPhone parts are ISO 14000 certified (environmental) (M3 +ve) iPhone parts are produced in factories where workers are forced to overtime (M3 –ve) Most brands have started using Social Media to reach their customers. These social platforms are also used by customers to provide their appreciation and criticism of the brand. The comments and feedback by the customers reflects their benefits being derived from the brand. By content analysis of the comments and feedbacks, we can classify...
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...Opening Statement Broadway Café is a family owned coffee shop located in Greenville, NC . The coffee shop specializes in many different products including: coffee, tea, a full service bakery, and a homemade sandwich, soup, and salad shop. My grandfather has ran the business for 59 years using no technology this process worked up until five years ago now business is steadily declining now it is time for change. The first step to insure success is to invest in computers to store recipes, payroll, inventory, ordering, and marketing coupons. A valid website will also be helpful. So, I came up with many ways to make our family coffee shop better. Our new website is http://broadwaycaf.webstarts.com this should help us to reach a wider range of people. Our company name will also be put on popular search engines such as Google, Yahoo, and Bing this process will make it easier for our customers to find. A suggestion page will also be added to the website to get feedback from our customers. To obtain new customers I would need to advertise and set a grand re-opening. This will allow customers to view the changes being made with products, staffing, and procedures while still keeping the environment traditional. Competitive Advantage It is very important for us to have competitive advantage because it helps us to be in a better position in the business environment. This process will allow us to have high quality good at a reasonable price for the market. We will use bargaining...
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...and Starbuck’s are direct competitors in the store front coffee shops. They are in a board market scope as of right now no other new entrant’s coffee shops are in the business of making their own coffee. They both have unique suppliers because no other company makes products like Starbucks’s and Dunkin Donuts. Both have a customer base for some people will want either Starbuck’s or either Dunkin Donuts coffee. The Substitutes are coffee customers can buy inside of a grocery store like Maxwell house or Folgers. However, there will be no place to enjoy a cup of gourmet coffee inside of the grocery store or service station. The Strategic implication for Dunkin Donuts will have to begin with a good (SWOT analysis) of the corporation. They should examine their strengths, weaknesses, opportunities, and threats. 2. In what ways is Dunkin' Donuts presently using strategic alliances? How could cooperative strategies further assist with its master plan for growth? Dunkin Donuts has come up with a brilliant new strategy for growth within the coffee industry. In 2002 the company formed an alliance with Stop & Shop Supermarkets. The agreement allowed Dunkin Donuts to have a full service coffee shop in over 5,000 stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. This partnership benefitted the Stop & Shop Supermarket’s business because it added value for the customers to drink gourmet coffee during grocery shopping. The use of cooperative strategies...
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