...Business Research for entry of Global Specialty Coffee Chains in Indian Market Submitted to Dr. Arun Abraham Elias BRM RESEARCH PROPOSAL by Abhishek Rehan PGP16/301 Email id: abhishekr16@iimk.ac.in 2/28/2013 CONTENTS ABSTRACT……………………………………………………………………………………….3 INTRODUCTION………………………………………………………………………………...4 PROBLEM STRUCTURING…………………………………………………………………….5 STAKEHOLDER MAP…………………………………………………………………………..7 LITERATURE REVIEW…………………………………………………………………………8 RESEARCH OBJECTIVES AND RESEARCH QUESTIONS………………………………...10 PROPOSED METHODOLOGY AND METHODS…………………………….………………11 SIGNIFICANCE OF STUDY…………………………………………………….……………..12 LIMITATIONS OF STUDY…………………………………………………………………….13 REFERENCE…………………………………………………………………………………….14 2 ABSTRACT India has witnessed a rapid social and cultural transformation in the past decade, mostly due to substantial western influence in every sphere of life. Coffee not only evolved from a mere commodity to a competing brand across companies, but there also has been a significant shift in its consumption pattern. Consumption of coffee at a coffee chain has grown at a rapid pace and has almost outgrown the consumption in our living rooms. Global giants like Barista and Costa Coffee have opened up retail outlets in India, though the café market is mostly dominated by Café Coffee Day in India. Through this research, I would try to evaluate the industry attractiveness of a new global coffee chain trying to enter Indian market and set up outlets here. In order to do that...
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...Agriculture and Rural Development Discussion Paper 3 The World Bank Coffee Markets New Paradigms in Global Supply and Demand Bryan Lewin Daniele Giovannucci Panos Varangis First printing or Web posting: March 2004 ©The International Bank for Reconstruction and Development Agriculture and Rural Development Department 1818 H Street, N.W. Washington, DC 20433 Agriculture and Rural Development Discussion Papers is an informal series produced by the Agriculture and Rural Development Department of the World Bank. These papers raise concepts and issues for discussion in the broader development community and describe ongoing research and/or implementation experiences from the Bank. The findings, interpretations, and conclusions are the authors’ and should not be attributed to the World Bank, its management, its Board of Executive Directors, or the countries they represent. Some of the numbers quoted are estimates or approximations and may be revised at a later stage. About the authors Bryan Lewin was previously the Economist of the Association of Coffee Producing Countries and now works in the Agriculture and Rural Development department of the World Bank on commodities and risk management. Daniele Giovannucci is a former corporate executive and market strategies expert. He advises international agencies and governments and is a senior consultant for The World Bank Group. Panos Varangis is a Lead Economist in the Agricultural and Rural Development department of the World...
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...Entry into the Coffee Shop Market – Starbucks establishes in Gothenburg The demand and supply of the domestic coffee shop market Ylva Bruzelius & Hanna Johansson 2012-01-25 Fall semester of 2011 Supervisor: Lennart Hjalmarsson Master Thesis in Economics – Industrial Economics (15 hp) The Department of Economics at the School of Business, Economics and Law Table of contents Acknowledgements ................................................................................................................................. 2 Summary ................................................................................................................................................. 3 1.0 Introduction ....................................................................................................................................... 4 1.1 Method and demarcation ............................................................................................................... 5 2.0 Starbucks‟ history .............................................................................................................................. 7 2.1 Starbucks‟ growth and expansion.................................................................................................. 9 2.2 Corporate social responsibility (CSR) ......................................................................................... 11 2.3 Starbucks‟ vision .......................................................................
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...Country Analysis Economics Like many Eurasian states, Turkey struggles to find a balance between new capitalistic markets consuming its larger cities and the agricultural sector of its economy that still accounts for 25.5 percent of employment. Its influence in the global market has been slim; however, technology and automobile markets are growing significantly and have helped raise real GDP by over five percent per year. Turkey’s main priority is to maintain the stability of growth in GDP and reduction in inflation (“Turkey”). Since the 1980s, Turkey has struggled to reform its economic policy through the ups and downs of military coupes and competing government parties. Turgut Ozal, finance minister at the time, is responsible for Turkey’s economic reforms. Ozal focused on the reliance of market forces; he devalued the Turkish lira, reduced exchange rates, increased incentives for exports, increased the price of goods produced by public sector companies, and abolished price controls (Rivlin, 212). The policy was successful, driving down inflation and increasing GDP. By the mid-eighties, however, inflation rates skyrocketed due to outside spending that increased national debt, an increase in unemployment rates, and unstable trade agreements (213). Throughout the next decade, the rollercoaster of inflation and increased debt continued to plague Turkey’s economy. A 1989 reform allowed capital movements in and out of the country and high interest rates encouraged investment...
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...Coffee market in china Insert name Institution affiliation Abstract This research paper aims to explore coffee market in China. It will focus on finding the quantitative analysis, consumption patterns, and development of the market relations to that of average income. It will utilize data of both urban and rural areas because of the distinct consumption patterns, show the development analysis and potential markets through supply constrain approach and regression analysis. Coffee in china is more of a habit. People drink it to feel good and not out of necessity. Coffee culture in China appeals to the adventurous, young, affluent, urban consumers in cities like Guangzhou, Beijing, and Shanghai. The paper will look at the consumption patterns and its demand that looks more of a successful lifestyle and culture of the western people. Out from the traditional tea- drinking country, China seems to become one of the largest coffee consumption countries in future (Bantiwalu & Demisse, 2010). Keywords: Coffee market, Quantitative analysis, Coffee consumption patterns, Average income, Regression analysis, Chinese potential market for coffee Introduction Coffee has enormous economic, social, and environmental importance in China. Most especially the Ethiopian coffee grows demand to the Chinese potential markets. Ethiopia continues to produce quality coffee reaching to international markets, like China. People around the world, drink up to a total of 7.4 billion cups of...
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...Analysis of the Coffee Industry History of Coffee The coffee industry provides its customers with coffee and sometimes other beverages (tea, soft drinks, snacks, etc.) According to Myers, coffee is the world’s most valuable agricultural commodity. Coffee consumers drink different types of coffee, including cappuccino, espresso, mocha, and latte. The coffee industry is in high demand, and the more people drink coffee, the more the quality and value of coffee become more important. Starbucks is in this coffee industry because it meets the consumers demand for a quick way of energy to get their day started. 69% of Americans consider coffee to be an “affordable luxury”. It is available in a variety of beverages and flavors to satisfy the most discriminating tastes. Starbucks missions statements states “Our mission: to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” Starbucks coffee has always been and always will be about quality, according to them. In the five years to fiscal 2013, Starbucks revenue is expected to grow at an average rate of 7.5% per year, with an increase of 11.9% in fiscal 2013 to total $14.9 billion. In the Ethiopian highlands is where coffee trees were originated. The Arabs were the first to cultivate coffee as well as to start its trade. It was then brought to Europe, then in the mid 1600’s coffee was brought to New Amsterdam, which is now called New York by the British. In 100 years, coffee was established as...
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...Stuck in the middle of the market segment No clear position- More expensive than competitors like McDonalds but less expensive than xxx. Support Graph: showing the Starbucks pricing compared to competitors. Problem 2: Long term viability of the industry Stagnant market for Coffee? Main business model under threat due to declining/stationary daily coffee consumption. Support graph- Showing the change in trend of coffee consumed SLIDE 2- Recommendations/Solutions Solution to problem 1 Create a Premium Brand -We move upscale by developing a new upmarket brand (photoshop a classy looking logo; show chart similar to Matra with the range of Starbucks-owned brands) Advantages: -Starbucks’ current brand does not get diluted. -Variation in store aesthetics will reinvigorate interest- New upmarket stores should have classier and more stylish/suave renovations & furnishing, older/classic machines, better-trained baristas. (Currently only 4 variations of store designs and lack of depth in barista training) -tap into the higher end/upscale market segment currently ignored. Problem 2 Why is coffee consumption reducing? 1.Greater health consciousness/awareness 2.Customers moving on to substitutes- Tea, Redbull etc. 3.(We discussed it but I cant remember!) 4. Economy downturn (spending on coffee declined- 2008 shows a big decline in consumption) 5. A rise in Coffee beans and dairy products?? Solutions a) Grow market share -Sell complementary...
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...1.0 INTRODUCTION 1. Starbuck is a coffee Shop and a largest coffee shop in the worlds based in Seattle, Washington, USA. Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. Starbucks is the leading specialty coffee retailer in the nation, with over 5,000 locations in 22 international markets. The Starbucks ensuring the extraordinary potential of coffee is discovered , revealed and delivered- helping to bring great pleasure to millions of people each day. 2. Old Town White Coffee, founded in 1999, made history when the company became the first, the pioneer white coffee producer to manufacture and launch the famous Malaysia Ipoh White coffee as a 3in1 instant Blend. Old town White Coffee 3in1 classic together with the original recipe from 1958 spearheaded a breakthrough in the coffee industry. The company single-handedly captured the original authentic taste of an otherwise localized white coffee, turning in into a mobile commodity a fast moving consumer good (FMCG), capturing the South East Asia market. 1. STARBUCK 2.1 LOGO, VISION & MISSION [pic] Starbucks logo designed by Terry Heckler of Heckler Associates .New Starbucks logo will be displayed on the product starting...
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...Current business market environment and competitor’s analysis 6 Management dilemma against new product 7 Product offering and market strategy 9 Product Offering 9 Market Strategy 9 Research design and analysis 10 Research design and testing 10 Research findings 11 Business Strategy development and implementation 12 Business strategy development 12 Business strategy implementation 13 Conclusion 14 Introduction To keep itself competitive and ensure long-term sustainability of the business, companies keep on making effort to innovate and revitalize their product and service portfolio. Such practices require substantial efforts in researching the consumer demands or expectations, assessing product feasibility and identification of potential market opportunities. The insights derived from such efforts plays critical role in developing and supporting various strategic decisions taken by company to expand its business scope and explore new business opportunities. The market research is performed by the companies to solve certain specific business objectives, among which the exclusive purpose can be mentioned as: assess the revenue generation prospect of the business opportunities, evaluate the competitiveness of the company, identification of the expectations or demand of customers and corresponding capabilities of the company. Corresponding to such objectives, this specific paper intends to perform an exclusive market research for assessing the market opportunities for...
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...Green Mountain Coffee Roaster Company Content KEURIG Green Mountain Coffee Roaster Company 1 KEURIG Green Mountain Coffee Roaster Company 3 1. Introduction 3 1.1 Product and operation 3 1.2 Stock price 4 1.3 Financial data 4 The revenue from 2009 to 2013 7 Net sale and operating income for each area segments 8 Net sale and operating income for each product catalogs 9 The cost from 2009 to 2013 10 SG&A trend 10 Components of SG&A 11 Comparison: Enterprise R&D Spend 11 Comparison: Enterprise Advertising Spend 12 1.4 Competition 13 1.5 Target market 14 2. The KEURIG Green Mountain Coffee Roaster Company’s Story 14 3. The problems 16 3.1 Problem in the supply 16 3.2 Competition from the distributions 16 3.3 Problem in innovation and successful development 16 3.4 Single experience 17 3.5 Narrow direction for sale 17 3.6 Quality of unlicensed 17 3.7 Narrow market for sale 17 4. Change of Strategy 18 4.1 Increasing the supply chains 18 4.2 Varying the distributions 19 4.3 Improving the business model 19 4.4 Building the relationships 20 4.5 Strength the experience 20 4.6 Expending away from home business 21 4.7 Converting unlicensed 22 4.8 Sharpening marketing message 22 4.9 International expansion 23 Appendix: Extracts from KEURIG Green Mountain coffee Company 10-K report. 24 1. Operating Free Cash Flow 24 2. Long Term Debt-to-Equity Ratio 24 KEURIG Green Mountain Coffee Roaster Company ...
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...world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the following years. By the end of 2001, there are already 24 branches and 60 by the end of 2005. As of today, the company...
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...Company’s Background Starbucks Coffee Company was founded in 1971. The first store of this company was in Seattle’s Pike Place Market. At that time, this company was roaster retailer of whole bean and ground coffee, tea and spices. This company established over 55 countries with 17,000 retail stores and serves the uncountable customers. It was count in 2011. This company’s name was built after the first mate in Herman Melville’s Moby Dick. In 1982, Howard Schultz was the director of retail operations and marketing, and Starbucks began to provide coffee to those fine restaurants and espresso bars. Since 1983, Howard was travelling to many countries and he was finding out the population of the certain countries such as Italy, Canada, and so on. He found those countries’ population had the potential market to develop the coffeehouse culture. Furthermore, Starbucks Coffee Company had provided full health benefits for the employees no matter those employees were full-time or part-time employees. Today, many international airports have Starbucks Coffee Company. This market was developed since 1991; which the first licensed airport store was at Seattle’s Sea-Tac International Airport. In 2000, Howard Schultz was promoted as chairman and chief global strategist and Orin Smith was the president and chief executive officer. In the same year, they had deal with an agreement about issued a license of TransFair USA to conduct the business of Fairtrade certified coffee in U.S. and Canada. Over...
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...Starbucks Entry Mode in India Executive Summary: The following report consists of the entry mode chosen by STARBUCKS to enter the Indian Market of Coffee House. This Report will give you a better understanding about an organization’s require to expand globally. Globalisation plays a very important role for any organization. It helps the company to expand over different areas and connect with different people. The report depicts about the entry mode chosen by STARBUCKS to invade the Indian market. It also briefs about the competitive Environment faced by STARBUCKS to gain the desired market share. It also consists of the Political, Economical, Social and Technological Analysis faced by STARBUCKS and the Corporate Strategy used to survive among the rivalry. This report clearly discusses the Strength, Weakness, Opportunities and Threats faced by STARBUCKS in the Indian Economy and how they have been successful to overcome them. Followed by the conclusion part which states how successful was the chosen entry mode and growth of STARBUCKS in its new market. Vanessasong.(2012).Retrieved from http://blogs.ubc.ca/vanessasong/2012/11/15/doesnt-matter-what-starbucks-sells-india-loves-it/ Table of Contents: Assignment Cover Sheet…………………………………………….………………………………………………………………………………1 Assignment 1 – Research Report…………………………………………….………..………………………………………….…………...2 Project Starbucks India...…………………………………………………………………………………………………………………………….3 Executive Summary……………………………………………………………………………………………………………………………………...
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...1. INTRODUCTION The history of Starbucks starts in Seattle in 1971. Three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who all had a passion for fresh coffee, opened a small shop and began selling fresh-roasted, gourmet coffee beans and brewing and roasting accessories. In 1981 Howard Schultz first walked into Starbucks as a sales representative for a Swedish kitchen manufacturer. He immediately wanted to work for the company as he got so inspired by Starbucks but it took him a year to finally persuade the owners to hire him. The owners were reluctant initially to hire Schultz because they thought his style and high energy might not blend with the existing culture of the company. However in 1982 Starbucks hired Schultz as the new head of retail operations and marketing and shortly thereafter was sent to Milan to attend an international housewares show in Italy. When he arrived, Schultz found himself infatuated with the exciting coffee culture of Italy. Schultz went to Verona and had his first caffe latte. But he observed something more important than the coffee. The cafe customers were chatting and enjoying themselves while sipping their coffees in the elegant surroundings. That’s when Schultz was struck with an inspirational idea. In 1987 the owners of Starbucks Coffee Company decided to sell their coffee business, along with the name for $3.8 million. Schultz raised the money by convincing local investors of his vision. Now with over 17,009 stores in 55 countries...
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...research report is to analyze the coffee shop market in the Greater Houston area to give Joe Brown a better understanding of the industry before investing in Cup of Joe coffee shops. Mr. Brown has 4 specific marketing research questions he is wanting answered through this analysis: What consumer segments can be identified in the Houston area coffee-drinkers market? What are the attitudes and behaviors of each segment with respect to coffee and coffee shop visits? How do the segments above evaluate the 4 potential competitors (Starbucks, Dunkin’ Donuts, McDonalds, and Burger King)? Is there a segment that is currently underserved by the existing 4 competitors and what type of coffee shop would this segment most likely demand? Before building a competitive national coffee shop brand, Mr. Brown needs information from primary, secondary, and qualitative research in order to be successful. Starting research in the Greater Houston area is a convenience for Mr. Brown since he is from Sugarland, TX which allows him to supervise operations of the business. Secondary research indicated that 54% of Americans over the age of 18 drink coffee daily. Research has found that coffee purchases are relatively recession-proof; meaning that consumers were willing to spend money on their coffee no matter the economy’s effect on their household income. Three coffee consumers were interviewed to provide qualitative research and provided varying opinions towards coffee. Each interviewee noted that taste...
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