...will want it and therefore you have a high demand for it. Look at the coffee shop industry and the coffee business. The market for specialty coffees has become very popular since consumers are more knowledgeable of espresso drinks and how they are made. This paper will explore the basis for these trends in consumption patterns, to include the effectiveness resulting from coffee, changes in demand, market prices and the elasticity of demand for coffee. The paper will also define economics, the law of demand and supply, and discuss factors that can lead to a change in supply and demand. Each year, the National Coffee Association of the USA publishes a report on National Coffee Drinking Trends. This report is known one of the bibles of the coffee industry. According to First Research coffee shops businesses grew to 20,000 shops in the U.S. having combined revenue of $10 billion as reported in 2011. Over half of the adult population drinks coffee at some point. It is known that 66 percent of Americans buy their coffee outside of the home but more than 75 percent of the cups that are brewed daily are consumed at home. One very important thing that is known about Americans and that is we like our coffee. The 2012 statistics for the coffee drinker is that according to the latest National Coffee Drinking Study from the National Coffee Association at least 40 percent of age’s 18-24 drink coffee every. This is...
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...that (Porter-1980) identifies as having an impact on a company’s behaviour in a competitive market are as followed: * The threat of new entrants to the market * Bargaining power of suppliers * Bargaining power of buyers (customers) * Threat of substitute products * Competitive rivalry Starbucks have the real threat of competitive rivalry by competing with some major competitors like McDonalds, Dunkin Donuts, Costa and other small coffee shops and cafes. With competitor’s low prices and the opportunity to break into the speciality coffee market pose a real risk to Starbuck’s. Substitute products such as tea, juices, water and energy drinks pose a real threat to Starbucks as with pubs and bars because of the threat of being a substitute place for customers to meet outside of the home and work environments. Customers buying power also poses a threat to Starbucks due to the wide abundance of offers that are available for them. Suppliers to Starbucks have high bargaining power as the demand for coffee beans are high on a global level. Also as...
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...habits from tea to coffee. Firstly, tea is one of the common beverages in China. According to the history, China peoples start to drink tea before four thousand years ago. In China, tea has become a unique cultural phenomenon. The Chinese view tea to be both medicinal and beneficial whereas coffee does not have the same value to the Chinese. Other than that, having a cup of tea after meal will help to digestion. When feel upset, Chinese also believe a cup of tea will help to quiet down the mind. Moreover, when a Chinese family have guess come to their house, the owner will always treat the guess a cup of tea and can enhance the friendship. But to the coffee, Chinese do not get the benefits of drinking coffee and believe coffee are does not have the same value compare with tea. It will become one of the barriers facing Starbucks as they try to “teach” Chinese to change their view towards the coffee. In addition to this, one has to take into consideration the vast area of china. China consists of 1.3 billion of peoples. Even china is keep improving and economic start to growth up, but china is still having largely rural areas and lots of lower income family. Other than that, they have less familiarity with coffee and don’t have as much money spend on the more expensive beverage. Therefore, it will be other barriers to the Starbucks who want try to “teach” people to change their consumption habits from tea. Lastly, the vast majority of the Chinese market who drink coffee are accustom to...
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...INDIVIDUAL ASSIGNMENT Topic: Analyze a culture-specific case study in which a coffee brand (of your choice) in the US, Europe, or Asia has been successfully built. Coffee is big business. The world’s love for coffee has formed some of the most popular globe’s food and drink businesses . Starbucks is one of the most famous chain of coffee shops in the world, mainly making bussiness in selling special coffee beans and other various kinds of coffee or tea beverage. Through out several decades of development, Starbucks is now a global Starbucks logo brand and presents in 64 countries and territories, as of March 2015. Among those regions, Asia is one of the biggest markets that Starbucks has built up its coffee brand sucessfully. (Source: http://Wikipedia.com/Starbucks) One of the big questions is what are the factors that makes Starbucks become an successful global coffee leader. Well, there are a lot of factors. However, in my point of view, the most important thing that makes them to be successful is they are able to adapt and localize if it’s required. According to Hofstede’s national culture theory, Starbucks perfectly suits the cultural characteristics of the host country’s customer. The following paragraphs shall analyze how Starbucks succeeds in Asia, especially aiming to specific countries in that region. Firstly, China is one of two biggest countries having a massive polulation about 1.4 billion in Asia that has Hofstede’s cultural dimension...
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...The crisis took the form of a decline in coffee prices at world wide levels since 2001.All farmers who grew coffee suffered income losses; especially small farmers in poor and low developed economies like latin America, Asia and Africa. Almost 25 million farmers were hit financially leading to more urgent, negative social consequence. Prices of coffee are based on the composite price index of the International Coffee Organization. It uses prices of two main types of coffee-arabica and robusta. This shows a decline from 141 cents to 52 cents per pound between 1984 to 2003. EQUILIBRIUM / MARKET PRICE FOR COFFEE This is found where the demand curve intersects the supply curve. The equilibrium price occurs at P* and the quantity traded is Q*. What happened in early part of the decade of 2000 was that supply was high but demand was falling. We illustate this on the diagram below CAUSES FOR DEREASE IN DEMAND The main reason for a fall in demand for coffee was the decline in cosumption in USA. This nation consumes 20% ofthe total world coffee. Its per capita consumption of coffee fell from 36 gallons to 17 gallons per person between 1970 and 1990. The rise of alternatives like soft drinks and others like tea can be the cause. However demand was somewhat rescued bythe rise in consumption from UK and other developed nations. CAUSES FOR RISE IN SUPPLY • Brazil and Vietnam are major coffee producers. After the frost years of 1990s Brazilians developed new techniques...
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...The impact of globalization on the coffee farmers in Guatemala is very significant between making a living and surviving. The farmers are being exploited by the third person (middleman) who has become wealthy without doing the work. The farmers take a loan out to buy the land, buy the coffee seeds, and work the fields using family labor, and are still poor with no luxuries. Prices for the coffee is not set by the farmers who gets 1% of what is paid for a cup coffee, leaving the middleman and the buyer wealthy. Guatemala is now working on a fair trade Market, where farmers are getting together selling their coffee for fair price by eliminating the middleman. Those that have joined the fair trade market has seen 40% rise in their profits. Starbucks are working with the farmers to improve the coffee and their way of life, Starbucks is a fair trade market manufactures, they also have farmers support centers, and long programs. What Starbuck is doing is helping globalization by boosting worldwide economic and cultural interconnectedness of societies with fresh money and agriculturalists support, so that the farmers and their families can have a better life. Due to what I saw in the video and what I’ve read in the book I will be more watchful for manufacturers that are involved in fair trade markets and purchase their products. Instead of drinking Starbucks every now and then due to the high price, not drinking one soda a day can buy a large hazelnut latte every Friday. I know I cannot...
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...capitalize their brand of coffee on China, which is rich in history of being tea drinking country. China has a massive consumer market with a population of around 1.3 billion (Hawkins, 2010). The culture of the Chinese has a strong tradition of consuming tea, as it is still the number one beverage in China which the Chinese have enjoyed tea for millennia (Hawkins, 2010). The first topic that will be discussed is to determine and discuss barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Recommendations will also be made to help Starbucks successfully encourage greater coffee consumption. Next an advertising campaign will be constructed that would not only encourage greater coffee consumption in general, but also increase the demand for Starbucks; while identifying key themes, i.e. copy, points, and visuals. I will then develop a marketing strategy for taking Starbucks into smaller Chinese cities and communities; while outlining the barriers and determining if they have a chance to be successful. Lastly, a demographic will be outlined with the cultural and media factors that make India more attractive for Starbucks than it was 10 years ago. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. Though China represents great opportunities because of its big population and impending growth, coffee is never of Chinese traditions...
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...Coffee Supply and Demand It was always well known that there is very high demand of gas in United States! After gasoline the next product that is high in trade with other countries is coffee. It grows in more than 55 countries across the world and supports lives of around 23 million people in farming sector. More than 115 million people in the world have their involvement in business of coffee. Growth, process, trade, and retail of coffee are the different stages all these people are involved in. In 2002, people around the world bought 14 million lbs of coffee, while around 17 million lbs was grown. This over production isn’t usual and leads to variation of price in the entire coffee industry. A world wide known firm, Starbucks, is the most popular corporation in today’s market. It is known for controlling a major part of coffee that’s being produced. In fact, Starbucks is the lead corporation in retailing of this product. It offers people a special braded coffee. They start by purchasing, roasting and then finally selling whole coffee beans and rich brewed coffee, espresso drinks, cold-blended drinks, and a variety of fresh made items, equipments, and a wide variety of high-quality teas. They have more than 9000 retail locations worldwide. When people consider coffee, Starbucks has gained a worldwide name by leading with high success. It was mentioned in a news article that Latin America is where Starbucks has been producing huge amounts and quality of coffee for ensuring...
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...1. Di Bella Coffee’s Company Di Bella Coffee was established in Brisbane in 2002 and has become one of the largest coffee specialists in Australia and channels to market. Di Bella Coffee have distributed their product to China, India, and New Zealand markets in recent years (Australian Food News, 2014). Di Bella Coffee developed a new category of coffee called Espresso Martini. They have now tailored their coffee products to be sold through internet. Further, digitalisation within Di Bella Coffee is being used to support the international aspirations of the company through the recent development of an online store that sells products such as Espresso Martini direct to wholesalers and consumers worldwide ( Fletcher and Crawford, 2014). Espresso Martini is made from freshly brewed A Grade coffee beans sourced via their Crop to Cup programme and premium vodka. This Espresso Martini is sold in Australia as a 4 pack - $19.95. On the other hand, Di Bella Coffee have to compete with other competitors. There are other coffee suppliers and retailers in Australia, for instance, Merlo, Mokador, Zaraffas, Gloria Jeans, and Campos Coffee. Also, international coffee retailers and franchises like Starbucks. Di Bella Coffee is directly related to farmers, which is dedicated to supporting sustainable agricultural practices.In addition, the company continues to expand various store formats, including stores Drive Thru, to provide a level of access and convenience for customers...
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...S.W.O.T. Analysis of Coffee Bean & Tea Leaf STRENGTH * Company’s marketing strategy All the stores of The Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason is to choose master franchise as its form of franchising is because of that the master franchising was the most popular mode of entry into distant band cultural dissimilar market such as Asia. The Coffee Bean & Tea Leaf found that the sale of a master franchise as a quick method of establishing a franchise operation. Instead of sub-franchising the units, the master franchisees prefer to own and run the entire unit. The reason also is too attributed largely to be limited size of the marketplace as the products are targeted at specific niche rather than the general public. It entered Singapore, Malaysia, and Taiwan by master franchising. In the other hand, the coffee shop prefers to use company-owned stores in Hong Kong, Australia and United...
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...supplier of milk products. It has 450 employees and more than 30 fleet of refrigerated delivery trucks that guarantees the integrity of the cold chain is not broken. Milk are sold in 236ml single-use and 946ml single-use paper box. Kowloon Dairy also sold other functional milk and coffee milk from Australia. Kowloon Dairy was established in 1940. It has prospered to be the concept of everyday fresh milk, and production in Hong Kong. Further expansion of its products like ice cream and other kinds of milk. The company independently purchases the material milk from different source, after packaging and production from the factory, which are offered as the affordable, good, fresh, everyday drinking milk. The dairy industry in Hong Kong is very competitive, especially for a big company like Kowloon Dairy. To ensure sustainable, Kowloon Dairy is looking to extend its product line to attract more customers in Hong Kong, based on the availability of cheap, good quality and fresh milk. Strategies to achieve this are set out below. Current marketing situation Market analysis Kowloon Dairy is concerned with the overall state of the drinking milk market in Hong Kong. Following is an overview of the drinking milk market: • About 1.3 million people in Hong Kong drink...
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...BRAND PERCEPTION OF CAFÉ COFFEE DAY (CCD) IN REGARD TO CONSUMER TASTES AND PREFERENCES ACKNOWLEDGEMENT In performing my assignment, I had to take the help and guideline of some respected persons, who deserve my greatest gratitude. The completion of this assignment gives me much Pleasure. I would like to show my gratitude to Mr Anish Yousef, Mentor, Q1410 for giving me a good guideline for assignment throughout numerous consultations. I would also like to expand my deepest gratitude to all those who have directly and indirectly guided me in writing this assignment. In addition, a thank you to Varun Sir, who introduced me to the Methodology of work, and whose passion for research methodology has long lasting effect Many people, especially my classmates and team members itself, have made valuable comment suggestions on this proposal which gave me an inspiration to improve my assignment. I thank all the people for their help directly and indirectly to complete my assignment. AMBUJ VERMA DECLARATION I hereby declare that the project entitled “BRAND PERCEPTION OF CAFÉ COFFEE DAY (CCD) IN REGARD TO CONSUMER TASTES AND PREFERENCES” submitted for the CA 2 is my original work and the project has not formed the basis for the award of any degree, associate ship, fellowship or any other similar titles. (AMBUJ VERMA) Place: Date: Table of Contents INTRODUCTION 5 Literature Review 6 THE DEFENDING CHAMPION 7 UPHILL TASK 8 TREND FORECAST 8 TARGETING DIFFERENT...
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...Marketing Final Project Team 1 Ryan Marshall, Manuela Antonova, and Joshua Booth Mr. Coffee Smart Optimal Brew WeMo Enabled Marketing Plan Executive Summary A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey). Mr. Coffee is a part of American iconography appearing in movies, books, and other arenas of pop culture. It appeared in loosely translated interpretations in the Back to the Future movie trilogy of the as 1980’s as “Mr. Fusion”, it was referenced in the TV show Seinfield, and in the title of the short story by Raymond Carver, “Mr. Coffee and Mr. Fixit.” According to a recently conducted survey Mr. Coffee was the most identifiable home coffee brewer. Brand recognition is not a problem in the current marketing environment. Mr. Coffee has many entries into the home coffee making market. Most of the devices are on the lower end of the price scale and easily obtained at every local big box store. These devices are sold alongside similar devices presented by direct competitors with very little differentiation. Recent...
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...Marketing Plan Assignment 2: Goals & Objectives, Customer Analysis, and Target Market & Positioning Nan Zhang, Thai Tran, Hollyann Joyner I. Marketing Goals and Objectives A. Have largest market share in US coffee Industry * Objective 1: opening 3000+ net new stores in America by 2017 Starbucks will open more than 3000 stores in 48 states in US depends on population density. High population area like New York and Washington should open more than other states. And US is the largest market for Starbucks, and it’s brand name is well known, open more stores, and have an intensive distribution, so when consumer thirsty or tired, they can find a Starbucks next to them. * Objective 2: US market revenue grow by 12% in 2014. At least half of the new stores are expected to be in the strong, rapidly growing U.S. market, and in 2012, the new store revenue grew by 9 percent. Starbucks should focus on their loyalty program and advertising activities, so people could always see it in TV or internet. So sale will increase gradually. So Starbucks expect higher revenue 12 percent in 2014 is reasonable and possible. B. China on track become second-largest market in 2014 * Objective 1:opening 1000 new stores in different provinces of China by 2016 China had an 8 percent growth in 2013, almost the same as America, Starbucks has a really good brand name, currently there are more than 3,000 stores in China, and they all located in major big cities, so...
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...Madmug Coffee Business Plan General Company Description So, picture walking into a coffeehouse that is full of taste, full of warmth, full of belongingness, and full of passion. A place that not only offers your favorite drinks, but a place that offers you something to look forward to. When you walk into the coffeehouse you are inspired by the opportunities that are to come. As you order your special drink you feel welcomed and are aware that you are exactly where you are supposed to be. If you are in need of a study break, a study place, or meeting up with an old friend, this is exactly where you belong. So stop in for a bit or stay for a while. Madmug is where you will find your peace. Madmug Mission: To use our cup of coffee to motivate individuals to become better than they were when they woke, to inspire with friendship, enthusiasm, and creativity. We want to be the coffeehouse that takes individuals beyond just coffee. Madmug values: We aspire to create a culture of warmth and belonging, where everyone is welcome. We promise to deliver our very best in all we do, holding ourselves accountable for results. Within every cup we promise to satisfy your needs at that very moment. Madmug coffee is 100% committed to buying, roasting, retailing, and wholesaling specialty coffees. We believe that, to do this, we must build strong relationships with all of the people who are involved in bringing coffees to our roasters. We will respect and foster those relationships...
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