...MEMORANDUM Date: May 28, 2011 To: VJ Mirsa, Manager From: Ericka Bell, Dionne Blackwell, Steven Harper, Thomas Lentz, and Paul Breen Re: Roasted Delivery – A New Starbucks SBU Product Line INDUSTRY OVERVIEW The coffee industry is one of the fastest growing industries in the world with an annual growth rate of 7% (Griffin, 1999). As of 2011 Americans consumed approximately 400 million cups of coffee per day, which is equal to about 146 billion cup of coffee per year. When put into the perspective of caffeine coffee represents 75% of all the caffeine consumed in the United States. While there are several different species of different coffee plants the two main species of coffee that are cultivated today are Arabica and Robusta coffee beans. Coffea Arabica also known as Arabica coffee accounts for approx. 75-80% of the current world’s production coffee. Coffea canephora also know as Robusta coffee currently accounts for 20% of all production in the world (Coffee Statistics, 2011). The specific café that Roasted Delivery chooses around the coffee industry was Starbuck. MISSION AND STRATEGY OVERVIEW Starbucks was first opened in 1971 as a single store in the Seattle’s historic Pike Place Market. In 1981 Howard Schultz (Starbucks chairman, CEO) joined Starbucks after first tasting a cup of their coffee. Starbucks with their current mission to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time has now found themselves with 15,000...
Words: 3108 - Pages: 13
...Problem Statement Retailers are upset that Foxy is selling their products at festivals for a lower price. Retailers believe this is tarnishing their image and cannibalizing their sales during the summer. The decision that needs to be addressed is the partners need to decide whether to continue selling at festivals and to retailers at different prices or to focus on a single distribution method. Situation Analysis Background: Opportunities: * To distribute product at higher end festivals * Develop a third line for festivals * Expand the target market as trends grow Strengths: * Background experience in the business and in design/production of jewellery * Unique product in the industry * Cost effective products * Small production costs * Direct relationship to customers through festivals and retail clients * They represent their own company/products * Low cost allows high mark up for retailers (industry avg 150%) Weaknesses: * Young, minimal life experience * Low end festivals can damage the brands image * A Tarnished retail product, occurring from cheaper sold products at Foxy’s festivals * Conflicting methods of distribution Current Financial Situation Alternative #1 Sara and Julie have the option to attend only three festivals during the summer months instead of the seven that they currently attend. From this they can focus more on increasing sales with their retailers. Qualitative: Pros | Cons | ...
Words: 896 - Pages: 4
...dropping prices and increasing product range, is Woolworths diluting its value proposition? No, Woolworths is not diluting its value proposition by dropping prices and increasing its product range. Own-brand products bring great value and perceived quality, synonymous with the Woolworths brand. Reduced input costs do not result in a product quality alteration and therefore I suggest that no negative impact exists. Reduced pricing to remain competitive during tough economic conditions is a necessary move. Lost revenues due to margin erosion can be replaced via additional product lines. Retail strategy continues to be aimed at the niche high-income market. Entry into the ‘black diamonds’ new market opportunity does not dilute the value proposition. - Represents a new market development and extension of product range within the higher LSM market. - Purchasing power of the new segment is relevant and cannot be ignored. - Value proposition supports offering within the new market. 2. When the economic conditions change for the better, should Woolworths withdraw some of the added products? Please Explain. No, Woolworths must not withdraw any of the added products. Before Woolworth introduced the added products, research and developments studies were conducted and it became apparent that there was the market for product range introduced New product lines shall never be seen as the cheaper substitutes, instead product line extension. Woolworth’s strategic...
Words: 588 - Pages: 3
...In a Bind Peak Sealing Technologies Product Line Extension Dilemma Table of Contents Introduction 3 Customer Analysis 3 Who are the customers? 3 Buying Processes 5 Relationships 6 Company Analysis 7 Networks 8 Recommendations 9 Conclusion 9 References 10 Peak Sealing Technologies Product Line Extension Dilemma Introduction Peak Sealing Technologies are a Texas based, leading manufacturer of high quality and innovative adhesive products. Their lines are heavily focused on premium industrial strength tapes, carton sealant and other packaging products. PST are steadily expanding their net sales and have experienced huge growth over the past 5 years. One of their product lines is known as K-2 tape, a pressure sealing tape of which there are nine variations. Recently Tensile, a competitor in the industry, released a new economy line tape of which PST believe may quickly become a threat to them. Now, PST are debating the consequences and outcomes of releasing an economy line tape to reduce the likelihood that Tensile’s cheaper Ecoslim and Ecoslim-wide will replace two variations of K2 tape in consumer minds. However, as this contradicts their established reputation as a premium brand, careful analysis of the industry, end customer and distributor forces, and company relationships and needs is required. PST must use this analysis to address two key challenges – retaining their current customer base, and ensuring their premium reputation remains untarnished...
Words: 1997 - Pages: 8
... COLGATE TOOTH PASTE The premium toothpaste market in India is a market that many players are aspiring to be a part of and Colgate has been trying for gaining a more and more market share of this market from a very long time and this is evident from the launch of a new and improved version of Colgate Sensitive Original, known as Colgate Sensitive Pro-Relief. Earlier this premium segment of the market consisted of a lot of players like Colgate's very own Sensitive, Pepsodent's Sensitive, Miswak and a few more players in the market who were already charging a premium price from the consumers as compared to the other variants of toothpastes available in the toothpaste market i.e. the prices in this segment were at a premium of around 30 percent than the other toothpaste variants present in the market. Also, if Pepsodent was already present in this segment then why did it launch a new product using the product line extension strategy to come out with a new and an improved version of the Colgate Sensitive? The answer to this question lies in the fact that a few months back Sensodyne entered into this market and decided to occupy a place into a smaller niche segment and took the competition to an all new level and since Colgate did not want to leave the...
Words: 1125 - Pages: 5
...1. Review the list of factors that may contribute to building positive brand equity (list one). Which factors do you think would be the main contributors to a firm’s brand equity? 1. Product range 2. Relative product quality 3. Word-of-mouth 4. Social ‘status’ of the product 5. Visibility of the product 6. Market share (extent of popularity) 7. Success of new products 8. Target markets 9. Competitive set 2. Now review the second list of brand equity benefits. Which ones do you consider to be the main benefits? 1. Increased sales 2. Price premium 3. Customer loyalty 4. Perceived popularity and real visibility 5. Point-of-sale merchandise uptake 6. Supplier bargaining power 7. New product success 8. More product line extensions 9. Significant competitive advantage 10. Point-of-sale merchandise uptake 11. Easier market development 12. Stable cash flow and easier planning 3. Looking at the two lists, do you think that there is a relationship between the two? That is, does a strength/performance in one list contribute to a better result for a similar factor in the other list? (Example, a strong brand can be built by social media, yet strong brands will generally have a greater social media presence and uptake.) Yes, I imagine that there is a relationship between the two records. According to my perspective I surmise that is does quality in one rundown add to a superior result for a comparable...
Words: 492 - Pages: 2
...What type of consumer product is Terra Cycle’s plant food: convenience, shopping, specialty, or unsought? Why? The products that are manufactured by the Terra Cycle plant food manufactures for the customers can be categorized as the specialty product. Specialty products are commodities that are mostly bought by the customers from the shopping centers. Since the plant products manufactured by the Terra Cycle firm satisfy the desires and preferences of the customers, the products are usually intensively searched by the customers. The end products of the Terra Cycle are bought in bulk by the customers since the products are unique and effectively suite the consumers. The customers are also keen about any change that is made to the food products that are manufactured by the Terra Cycle. Any slight change that is made to the plant flood staff attracts the attention of the customers. This has made it almost impossible for the Terra Cycle to make any sudden changes to the food products produced by the firm. 2. Go to www. terracycle. net and look at the types of products the company sells. Describe their product mix. How wide is it? Which basic product lines does it sell? How long are they? The TerraCycle manufactures various diverse products that are made readily available to the customers through distributing the products to the marketplaces. Since the company manufactures numerous products, it is better for the company to purchase all the related products together. This is very...
Words: 700 - Pages: 3
...Warner is one of the largest media companies in the world, but faces tight competition from industry giants like Disney and Viacom. While the company is required to adhere to the restrictions by the Federal Communications Commission, the FCC has been loosening the reigns slightly with regards to the diversification and size of the main media players. The regulation goal of the FCC is to prevent one company from solely influencing the information passing through the airways and entertainment outlets into the mind of consumers. Porter’s Five Forces: In order to carefully formulate the strategies to be employed by Time Warner, a comprehensive examination of each of its business areas needs to be evaluated. Time Warner has five main business lines: AOL, film entertainment, publishing, programming networks and cable systems. We will begin the analysis of T.W. and its merge with AOL, including the consequent benefits and shortcomings. As a basis for this analysis, we will be using the most applicable forces in each situation out of Porter’s Five Forces: bargaining power of buyers and suppliers, threat of entry, threat of substitutes/compliments and industry rivalry. The following link shows the business segments of Time Warner and their contributions....
Words: 3479 - Pages: 14
... This segment of the cash flow is budgeted for capital investment in new equipments and new facilities, as well as adding more workers and managers. Shao’s Children Wear weights the priority in selection of the portfolio on alignment of strategic objective and equally with return on investment as we want to expand to US market and targeting to increase additional $50 million worth of company capital and assets. With the new Product D introduced, the total budget of $25.5 million would exceed current funding of $24 million from the Strategic Business Unit. To reduce budget allowance and avoid over expanding Chao’s Children Wear capacity, it is important to review current portfolio to establish the best value for the company. There are a number of ways to consider. The portfolio selection process was re-evaluated. Project priorities were reclassified (see below). Product line D is recommended to include as the second in project priority in the product portfolio with Line B, which was at the second level and now moved to the fourth level in project priority. Additional ideas with streamlining processes or cut down expenses using Six Sigma/Kaizen methodology for allowing more product lines in the portfolio to maximize future return are some of options Chao’s Children Wear are considering. Overview of existing Portfolio Project A The aim of this project is to bring the existing costume line of apparel into the United States market. This project is already 9 months...
Words: 870 - Pages: 4
...premium products. Tupperware is a member of the Direct Selling Association (DSA) and pledges to abide by the codes of standards and procedures as a condition of admission and continuing membership in the DSA as it relies very heavily on direct selling model. It is the seventh largest direct selling company in the world. The company’s direct sales in the U.S. account for approximately $30 billion and its worldwide sales account for approximately $100 billion. Tupperware Brands Corp. Core Products Tupperware: Tupperware’s principle product line consists of design-centric preparation, storage and serving solutions for the kitchen and home. It also has an established line of kitchen cookware and tools, children’s educational toys, microwave products and gifts. The company has expanded over the years with products such as Modular Mates, FridgeSmart, One Touch canisters, the Rock ‘N Serve microwave line, OvenWorks and silicon baking forms for microwave or oven use, Open House, Elegant and Outdoor Dining serving lines, the Chef Series knives and cookware, Flat Out, Stuffables, CheeseSmart and BreadSmartstorage containers, and Quick Chef and Lil’ Chopper Prep Essentials, Ultra Pro ovenware plus many specialized products for the kitchen and home. About two-thirds of sales are under the Tupperware brand, and include design-centric preparation, storage and serving solutions for the kitchen and home. Beauty: The Beauty businesses manufacture and distribute skin care products, cosmetics...
Words: 1012 - Pages: 5
...Product Development at DELL Since its founding in 1984, Dell corporation had enjoyed tremendous success in the desktop computer industry. Their strategy was to eliminate the middleman by directly servicing the customers through mail orders . Dell grew from obscurity to a fortune 500 company in 1992, making its founder Michael Dell one of the youngest highly successful entrepreneurs of his time. At the core of Dell’s business model was Spartanism which inspired informality in processes and low R&D costs allocation. This worked with their desktop business and their imitators such as Gateway 2000 and CompuAdd were always playing the catching-up game. However moving ahead this philosophy, their foray in to the portable computer business was not as successful. This was an industry that revolved around several technological breakthroughs and required higher workmanship & quality control to manufacture products. Here, Dell fell short of delivering quality portable computers. Their brand suffered a major setback when their first line of portables were reported to have technical problems and about 17,000 units had to be recalled just one day before the launch. Soon after, Dell’s percentage sales in portable computers went to 2% from 17%, and their stock plunged by $7 in a single day. The portable computer industry was growing fast [Exhibit 1] and was deemed to spark a new wave of consumer demand. The major problems staring Dell in face were regarding quality and management...
Words: 1668 - Pages: 7
...Unit 2 – Marketing and Brand Management Nissan is currently considering expanding its product line to introduce a new product. This product will complement the current products offered to consumers. The company would like to provide consumers with a differentiated innovation that will increase both sales of current products as well as the new product line. Nissan is involved in the transportation industry, namely the sale of various automobile models. The company earmarks 4% of sales to research and development, which is high for the industry. With the high prices of fuel, environment concerns throughout the world, the rising costs of automobile production as well as the rise of automobile insurance rates, the ability to provide a targeted group of consumers with an alternative to the automobile would be a benefit to the company and its shareholders. I am recommending that Nissan research the feasibility of producing electric scooters to complement the current product line. This product would appeal to the millennium generation in that it would provide them with affordable transportation, a new mode of travel that is not saturated in the USA and Canada, as well as a product that alleviates parking problems, pollution, and high costs. Currently in Canada, new drivers are required to wait 12 months before they can be road tested in order to obtain a driver’s license. This means that new individuals out of school that do not have a driver’s license must find alternative ways...
Words: 1758 - Pages: 8
...Chapter 12 Global Products Outline * The pros and cons of global product standardization * Localization vs Adaptation * Global product lines * Developing global new products Do Not Read (Unless Noted) Page 401 list 1-5 Page 401-403 Ford’s Global Car Drive, all Page 407 para 3 and 6 Page 408-409 Pitfalls of Global Standardization, all Page 410 Getting the Picture Page 411 para 3 Page 413 Sales Forecast, all Page 416-425, all Introduction * Market coordination * Product standardization * Marketing Mix uniformity Global products/brands have coordination between markets, standardization of products and uniformity of marketing, across all markets. Regional products and brands are unique to a particular trading region. Note: * The difference between Global and Regional products is of degree not kind/type. That is, the issues are the same (kind/type), but the number of countries (degree) to which the marketing analysis applies is different. * Regional products can be thought of as latent global products. Localization vs Adaptation Localization: * Changes that are required for the product to function in a new market. Without localization the product cannot compete because it will not be able to function properly. It will be rejected immediately. NOTE: A standardized product still needs to be localized to function properly. Adaption: * Changes that are required to match customers’ preferences...
Words: 937 - Pages: 4
...Francis Shirriff. Over the years, a number of Ontariobased wineries were established, eventually amalgamating into three large companies. In 1993, these companies; Cartier, Inniskillin and T. J. Bright, merged together to form Vincor. As of 2004, Vincor was the world’s eighth largest producer and distributor of wine and wine-related products. Case Background Vincor: Project Twist details the decisions that Vincor’s marketing team had to make in order to create a new alcoholic beverage to bring to the market. This task was challenging due the fact that “what’s trendy today may not be trendy two years from now,” as stated by Vincor’s marketing manager Kelly Kretz. Key Issues and Decisions The key issue in this case was coming up with a concept for a new alcoholic beverage product. Decisions to be made in regard to the product included: product characteristics, positioning, target market, branding, packaging and distribution strategy, pricing, and promotional strategy. Vincor was already a well-established player in the wine industry, holding 16% of the refreshment market in 2004 with their VEX and Growers Cider brands. Creating a successful new cooler could help Vincor gain an even larger share of the $230 million refreshment industry; however, reaching success in such a highly competitive market was a significant hurdle to...
Words: 5261 - Pages: 22
...development attitude, management long-term vision, situation in a particular market, and competitors’ strategy, to name a few. This condition occurs in Gillette, the leader in razor and blades market in the world, where they currently face the maturity of the industry and get stuck in the old-fashioned strategy. Many times, they commit a product innovation on continual basis as a means to position Gillette as a leading company in the razor and blades market. Unfortunately, their main competitor, Schick-Wilkinson Sword, also responds the competition by innovating products in terms of number of blades in a single razor. As Gillette makes more profits from the blade sales rather than initial razor purchase, the company needs marketing innovation rather than product innovation. Concerning this issue, this paper will elaborate Gillette’s product innovation, the battle with Schick, and recommendation for improving its leadership in razor and blades market. Product Innovation at Gillette One common strategy in facing competition is to nurture product innovation. Sometimes, the idea to develop a new product comes from an observation of previous products and...
Words: 1141 - Pages: 5
