...Mr. Howard Schultz, the chairman and CEO of Starbucks Corporation is faced with some immediate and long term challenges in the year 1996. He needs to keep up the brand image of Starbucks, beat the competition, foray into new horizons for expansion, improve on the real estate strategy while maintaining the ‘coffee ‘ experience Starbucks is known for. Immediate issues 1. MacDonald is petitioning for a contract to serve Starbucks coffee. Mr. Howard is sceptical that granting this contract will dilute the brand image of Starbucks. While this can boost revenue in the shorter term, this can also lead to loss in clientele and reputation. Should Mr. Howard agree to the proposal? 2. Starbucks has a goal of having 2000 stores by the year 2000. The number of ‘A’ sites in market has decreased and the task of “street sniffers” is becoming increasingly difficult. The immediate challenge is to expand in different regions of the city. Should he put laser focus on Doppio strategy ? Basic Issues 1. Given Mr Howard’s bad experience at the University store , Starbucks needs to take an active look at the speciality agreements with retailers , restaurants and service providers. They are a big source of revenue generation but any compromise either on the coffee quality or coffee ‘experience’ could lead to loss in clientele, loss of brand and a hard earned niche market segment. 2. The regional competitors such as Second Cup in Canada and Best coffee in Seattle are eating the Starbuck’s...
Words: 1447 - Pages: 6
...such a fast pace. Therefore, coffee has become one of the most favorite kinds of drinks. Many people drink coffee to be able to work or study more effectively. When they feel so tired, some employees or students will need a five or ten minutes break just to drink a cup of coffee. Moreover, someone even have drinking coffee as one of their hobbies. Therefore, in these days, it is quite easy for consumers to buy a cup of coffee at one coffee shop, a can of coffee from the vending machine, or just get some instant coffee sachets at the supermarket. When people think about coffee, they will think of some popular brands, such as, Nescafe, Starbucks, Gloria Jeans, etc. However, it is the fact that, according to the BBC News in 2012, Vietnam has just surpassed Brazil to be the world’s largest coffee exporter. (BBC , 2012). Furthermore, G7 Coffee– the major product from Trung Nguyen Group – the greatest coffee company in Vietnam – also has high quality like the coffee of those brands. And thus, there are some questions arising from this fact, “Why doesn’t the G7 Coffee from Vietnam become as famous as the coffee from those popular brands, in all over the world?”, “Can it be?” and “How can it?” Background Trung Nguyen Group was established in June 16th, 1996. At that time, it was just a small company in Buon Me Thuot, which is one of the three main highlands for growing coffee in Vietnam. Nowadays, according to Trung Nguyen’s home page, Trung Nguyen Coffee has been available in over 50...
Words: 3826 - Pages: 16
...successful launch of its single serve coffee pod system in Europe has led to the company’s decision to release the same product in North America. Greg Herzog, Product manager of coffee development for Kraft foods Canada will be the ultimate decision maker in the situation. Mr. Herzog will determine whether to launch the product to the Canadian market at the same time as the United States launch or wait results from the Unites States launch to gain more market insight. In order to make an informed decision Mr. Herzog needs to analyze four key components: a suitable branding strategy for Maxwell House and Nabob, wholesale and retail pricing, distribution methods, and an effective advertising and promotional strategy. Lastly, Mr. Herzog must make these decisions within a 1 million dollar budget and determine if he will be able to meet his market share objective of an initial 35% and still breakeven. As a company, Kraft enjoys a worldwide reputation of leading edge innovation and has a stated company mission to achieve leadership in the markets it serves. Currently, Kraft holds a leadership position in market share for coffee sales worldwide as well as in Canada. Kraft sells its coffee in Canada under the brands, Maxwell House and Nabob which enjoy a combined market share in Canada of 32%. Maxwell House holds the largest market share in Canada, with top sales in both roast and ground coffee. Nabob coffee is Canada’s leading premium brand of coffee and leads with the largest market...
Words: 509 - Pages: 3
...study of Starbucks, the world-leading coffee chain. The information presented indicates how Starbucks performances while they were lunching the new product Via for entering the instant coffee. Also, the report shows how the Starbucks’s CEO, Mr. Schultz, made decisions to help Starbucks reverse the decline. At last, the report showed how the new product Via help Starbucks gain a competitive advantage in the instant coffee market and recover from their economy recession. Introduction The story of Starbucks coffee company began in 1971 when the first Starbucks store opened at Pike Place Market, which is Seattle's oldest farmer's market. Today, Starbucks coffee company is the world-leading coffee bean retailer and roaster. (www.starbucks.com). This report will consider the problems and issues which have occurred during the commercial expansion of Starbucks. Findings Visit the Starbucks website and comment on the company's performance in the most recent period compared to an earlier one. A piece of Starbucks news named "Starbucks drops its name and the word coffee from logo” was updated on BBC on 6th January 2011(www.bbc.co.uk), shows that Starbucks, in promulgating a new logo, is still intends to move beyond its core product. The new logo is still the firm's white on green image of a twin-tailed siren, however the words "Starbucks" and "coffee" have removed. Additionally, anther news...
Words: 2684 - Pages: 11
...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...
Words: 4681 - Pages: 19
...Nguyên coffee By Morgen Witzel The story. Coffee cultivation in Vietnam began under French colonial rule in the 19th century and soon became a staple industry. By the mid-1990s, the country had become one of the three biggest coffee producers in the world. Much of it, however, was low quality and sold at cut prices overseas. Vietnamese-American entrepreneur Dang Le Nguyen Vu believed high-quality Vietnamese gourmet coffees could be produced and sold profitably. So, in the mid-1990s, he launched Trung Nguyên, a coffee manufacturer and café chain. The challenge. Vietnam is an emerging market. In 1995, per capita income was only $250 (the 2010 figure was $1,200). This was one reason why Mr Vu chose to develop a luxury brand that would appeal to both domestic and export markets. To do so, he would have to persuade the home market that his expensive product offered value, and convince overseas customers that Vietnam could produce gourmet coffee. The home market. As the owner of a coffee-processing business, Mr Vu could improve the quality but there was no efficient distribution network. The answer was to set up a chain of coffee shops, modelled in part on Starbucks, that would also sell coffee beans for home consumption. The branding of Trung Nguyên was carefully planned. To counter competition from big multinationals, whether coffee shops or brands such as Nescafé, Mr Vu positioned it as part of a Vietnamese tradition. A Trung Nguyên museum tells the history of coffee-making...
Words: 653 - Pages: 3
...8/14/13 OLDTOWN White Coffee - Our Business Company Profile Investor Relation Social Responsibility Our Laurels News Business Opportunity Join Us Contact Us Franchising International Licensing outlets in Hong Kong. In 2000, we commenced our first export of the ‘OLDTOWN’ brand of 3-in-1 instant coffee mix to Singapore. In 2001, our subsidiary, White Cafe Marketing commenced operations as the marketing arm for our Group’s beverage products. During the same year, we also expanded our product line to include different variations of our instant coffee mix and have also expanded our export markets to Hong Kong for our instant coffee mix. In year 2002, White Cafe obtained a HALAL certification from the Islamic Religious Department of Perak for the Group’s beverages. This is part of our Group’s intentions, which is to produce our beverages in accordance with the Islamic law. In the same year, we successfully expanded our nationwide retail distribution of our 3-in-1 instant coffee mix to cover East and West Malaysia through major hypermarkets and supermarkets. In 2003, we also successfully commercialised our own formulated blend of 3-in-1 instant milk tea for the retail market under the ‘OLDTOWN’ brand name. Site Map | Find a Store In view of expanding our manufacturing activities, we incorporated Gongga Food in 2003 and commenced operations in 2004 manufacturing roasted coffee powder for the food services sector using the Group’s proprietary bean roasting process. We distributed...
Words: 928 - Pages: 4
...(0828114) Tahir Badruddin (0828135) Wasif Ghaffar () CLASS: MBA ‘X’ DATE: 20th July, 2009 EXECUTIVE SUMMARY Something beyond the Coffee The tradition and culture of coffee in Pakistan has its way on, it now moving from elite class to upper middle and therefore the Coffee House in areas like Zamzama and Defence are becoming fruitful investment. Visualizing this opportunity we have come up with the ultimate mix of entertainment, taste and quality. KLATCH a coffee house which is traditional in eastern sense and modern in western style, it will be a blend of both the worlds. KLATCH is a partnership firm, an IDEA of qualified professional from different field of works combining together to use up their experience and utilize their entrepreneurial skills with ultimate goal of prosperity and growth. Every department of KLATCH has an expert to manage. We will serve the variety of Pakistani Tea form Kashmiri tea to Khava along with the distinct flavors of coffee from latte to mocha and this is not all, other mouth watering items in our menu would include desserts, muffins, donuts and sandwiches. KLATCH is not just a Coffee House but its beyond the boundaries of a traditional Coffee House it’s a two floor coffee house, on first floor we will be providing a place for a combine study along with wifi services plus printing and scanning so that they can do projects and assignment and chill at a place of likeminded...
Words: 5022 - Pages: 21
...Submission: 26th November, 2011 Mid Town Cafe Business Plan . Table of Contents 1. Business overview...................................................................................4 2. Product/Services..........................................................................................................6 3. Business structure and management...........................................................................8 4. Market analysis...........................................................................................................9 5. Competition...............................................................................................................12 6. Marketing Strategy....................................................................................................14 7. Finances.....................................................................................................................16 8. Action Plan................................................................................................................18 9. References.................................................................................................................19 10. Appendix 1: Strategic SWOT Analysis....................................................................20 11. Appendix 2: Trading and Profit and Loss Account..................................................22 12....
Words: 5222 - Pages: 21
...company celebrated their 40th anniversary. Worldwide, approximately 35 million customers visit a Starbucks coffeehouse each week. Starbucks Coffee Company was founded in 1971 with its first store in Seattle´s Pike Place Market. (Starbucks Company Profile, 2012). The company was established by three partners: the english teacher Jerry Baldwin, the history teacher Zev Siegl, and the writer Gordon Bowker. The three coffee lovers were inspired by coffee roasting businessman Alfred H. Peet, whom they knew personally, to sell high-quality coffee beans and equipment. (Starbucks Company Profile, 2012). Alfred H. Peet was a Netherlands - United States businessman and the founder of Peet's Coffee & Tea in Berkeley, California, in the year 1966. Mr. Peet is most famous for introducing custom Coffee roasting to the United States (Marshall, 2007). The original name of the today well known company “Starbucks” was “Starbucks Coffee, Tea and Spices”, which was later changed to Starbucks Coffee Company. The name “Starbucks” was originally named after the first mate in Hermann Melville´s Moby Dick Baldwin. Mr. Siegel and Mr. Bowker chose the name Starbucks in honor of Starbuck, the coffee-loving first mate in Herman Melville's Moby Dick, and because they thought the name evoked the romance of the high seas and the seafaring tradition of the early coffee traders....
Words: 4554 - Pages: 19
...MBA 6012 Integrated Global Marketing Value on Integrated Marketing Starbucks Coffee Starbucks History Jerry Baldwin, Zev Siegl and Gordon Bowker created Starbucks; they met coffee roasting entrepreneur Alfred Peet who inspired the three novices to open a coffee shop to sell roasted coffee at their first location in Pike Place, Seattle. Their goal was to sell high quality coffee beans. This venture has certainly paid off, as Starbucks has become a well-known name brand both locally and internationally. They met Howard Schultz an entrepreneur who suggested the idea of selling coffee drinks in European style cafes. He later went on to purchase Starbucks and expanded the coffee chain. Starbucks Corporation (NASDAQ: SBUX) is a global coffee company with an Italian-style coffeehouse which started its chain in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,972 stores in 60 countries, including 12,937 in the United States, 1,273 in Canada, 971 in Japan, 790 in Great Britain, 657 in China, 453 in South Korea, 356 in Mexico and 276 in Taiwan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and Panini, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the...
Words: 2187 - Pages: 9
...M512 MARKETING STRATEGY Starbucks: Delivering Customer Service Alkis Marangos I have neither given nor received unauthorized aid on this assignment 1. What factors accounted for the success of Starbucks in the early 1990’s? What was so compelling about the Starbucks value proposition? The success of Starbucks in the early 1990’s can be attributed to Howard Schultz’s vision of the Starbucks brand. Schultz inspired of a company which would make the customer the centre of its success and would change the coffee drinking experience in the U.S. In order to achieve this, Schultz successfully utilized his human resources by establishing benefits that would force those resources to create value in the process of the coffee drinking experience. Starbucks was successful because it placed value to the customers first in its value proposition. Following is a number of factors that accounted to Starbucks success in the early 1990’s: a. Atmosphere: Schultz’s idea was to make Starbucks America’s “third place”. By recreating the Italian coffee culture he met in Milan, he managed to make Starbucks a place where people can enjoy their social interactions, relax, or just spent some time by themselves. In essence, the Starbucks idea changed the norm from “buying coffee as a drink” to “the experience of enjoying coffee”. People viewed Starbucks as a place they wanted to be at and they spent as much time as they could in the stores...
Words: 4635 - Pages: 19
...1. Introduction Starbucks distinguishes itself by focusing on creating and sustaining its own ‘coffee culture’. It has long been known as a ‘third place’ other than home and workplace. It serves not only quality coffee products but distinctive customer experience. With considerable research on the strategic positioning of Starbucks, this paper will introduce the history and the present of Starbucks as well as its corporate achievements before analyzing its brand value and strategic positioning, with focus on its competition and marketing strategies. Subsequently, the influences of external factors on Starbucks will be examined through PEST analysis and Porter's Five Forces Model analysis. Next parts will be concerned with the question of how Starbucks boost the value of its strategic position. Finally, the paper will be reviewed and the comments on the sustainability of Starbucks’ strategic positioning provided. （不需要改） 2. Basic facts regarding Starbucks 2.1 Developmental History In 1971, a business called Starbucks that sold coffee and other spices was set up by several people whose names have long been basically forgotten. Howard Schultz, the most important figure in Starbucks’ history, became part of Starbucks in 1982. In a business trip to Italy, he was inspired by some famous Italian coffee brands to the idea that the lucrative coffeehouses could cultivate a sense of emotional and cultural attachment among customers. In 1986, he managed to raise sufficient venture capital...
Words: 2728 - Pages: 11
...order, though, and Chairman Howard Schultz has expressed worries that moves to improve same-store sales with automatic equipment and off-brand merchandise could be turning consumers off. The return on investment (ROI) for Starbucks in 2010 was 22.50%. The market share was $27.33 billion while the profitability was at 30.4% (Donald, 2007). B. Strategic Posture Starbucks has an impressive mission statement because it addresses their product as a whole and their mission for different relationships. “The Starbucks Mission Statement-To inspire and nurture the human spirit - one person, one cup, and one neighborhood at a time. Here are the principles of how we live that every day: Our Coffee-It has always been, and will always be, about quality. We’re passionate about ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this; our work is never done. Our Partners-We’re called partners, because it’s not just a job, it’s our passion. Together, we embrace diversity to create a place where each of us can be ourselves. We always treat each other with respect and dignity. And we hold each other to that standard. Our...
Words: 7814 - Pages: 32
...www.FASTBusinessPlans.com BUSINESS PLAN (CAFÉ BUSINESS PLAN) THE RUSSET CUP 13351 MISSION STREET (OVERLAND PARK, KS) (DATE) Use and Reprint Rights for Your FAST Business Plan Template This template has been written to include instructions for creating your final business plan. You are free to edit and use the material within your organization. However, please do not distribute this template online or elsewhere publically without explicit permission from us. www.FASTBusinessPlans.com Café Business Plan Template TABLE OF CONTENTS 1.0 Executive Summary ................................................................................................................ 4 1.1 1.2 1.3 1.4 Business Objectives .....................................................................................................................................4 Mission Statement ........................................................................................................................................4 Guiding Principles ........................................................................................................................................4 Keys to Success ............................................................................................................................................5 2.0 2.1 2.2 2.3 2.4 Company Description ........................................................................................................ 5 Ownership ...
Words: 6723 - Pages: 27
