...progressively narrower categories, and the more digits in the code signify greater classification detail. The first two digits designate the economic sector, the third digit designates the subsector, the fourth digit designates the industry group, the fifth digit designates the NAICS industry, and the sixth digit designates the national industry. Section II—Game Theory and Hypothesis 2a In the set-up to Hypothesis 2a, the authors discuss the notion that players learn from past experiences and have a perfect memory. They discuss a “tit-for-tat” strategy that should over time result in an attenuation of the competitive moves between players. This interaction over time should make it easier for a firm to predict the direction and nature of their rival’s next (competitive) move. The authors suggest in Hypothesis 2a that the volatility of the relationship between Coke and Pepsi’s competitive moves...
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...Marketing strategy is the mantra through which the company hopes to create customer value and achieve profitable customer relationships. A company’s heart beat can be measured by the sales it makes which by definition, is the amount of purchases made by customers. For this very reason, companies need to be customer centered. A market share is only captured by acquiring customers and maintaining them by delivering greater value. However, the customers are diverse individuals of different tastes and thus, it is required to divide the total customers in optimal segments that are expected to yield greatest results. This process involves, market segmentation, market targeting, differentiation and positioning. Market segmentation is dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs. For instance, a more modern, hip and artsy McDonald’s branch at Union Square in NYC would appeal to the Yuppie customers in the region as opposed to the average American taste that demands the plain and original McDonald’s feel as seen in a branch in White Plains. Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. Market Targeting is the process of evaluating each market segment’s attractiveness and selecting one or more segments to enter. A company with limited resources might decide to serve only one or...
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...coffee industry has boomed in recent years. While fast food chains are growing at a rate of 2% each year, coffee shop chains grow more than 10% annually. According to the National Coffee Association Annual Drinking Trends Survey, “Even though 75% of the cups of coffee brewed daily are consumed at home, 66% of Americans buy their coffee outside of their homes.” This creates a strong demand in the coffeehouse market. Statista defines coffeehouses as “small establishments selling prepared coffee, tea, and other hot beverages.” In recent time, many coffeehouses started competing with other restaurants in the limited-service category by offering baked goods, sandwiches, salads, and other snack items. For instance, Starbucks has been battling Dunkin Donuts and McDonald’s for the top position as coffee king. In order to compete, each company has expanded their menu options and...
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...project which allowed us the opportunity of creating a proposal for a specific company. Due to the fact that Dunkin’ Donuts is already successful company with many loyal customers, our group decided to make your company the topic of our choosing. Because of the current success of the company, we realized that Dunkin’ Donuts already has an effective marketing strategy. Instead, we wanted to create another aspect to this current marketing strategy to take Dunkin’ Donuts to another level. We have spent a great deal of our semester researching your company and effective advertising methods. Because of this, we hope that you will find this proposal to be beneficial for the marketing department and could possibly incorporate it into your marketing strategy in the future. Since your company is very successful currently, we did not feel it was necessary to change any of the current marketing strategies and techniques. However, we do feel it is time to incorporate some new and young ideas. Through our research we noticed that Dunkin’ Donuts is lacking in the many college communities. As a result, we are concerned that college students will support companies that have a strong presence on campus. Because many people quickly become loyal customers after one positive experience, these students are likely to remain loyal to the companies on campus. This can potentially be a problem for Dunkin’ Donuts, but with the simple marketing campaign we have designed this problem could be resolved. As...
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...customers * Membership * Brand image high-end * Brand experience that extends beyond products * Customer service * Unique drink names * Elegant looking stores * Premium quality coffee & related products * Company ideals of social responsibility towards the community and the environment * Progressive personnel policies * Cons: * Lack of food choices * No one goes to Starbucks for a meal * Prone to image distortion because of the large number of stores * Prone to lawsuits because it is a large company * Must work hard to maintain its place as the largest coffee shop chain * Dunkin Donuts- * Founded in 1950 in Quincy, Massachusetts * Originally focused on doughnuts and other baked goods * Half of business comes from coffee sales * More than 10,000 stores worldwide (6,700 in US) * Often paired with...
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...Contents 1 Introduction 2 2 Starbucks Vision, Mission and Objectives 3 2.1 Vision statement 3 2.2 Mission Statement 3 2.3 Environmental Mission Statement 3 2.4 Objectives of Starbucks 3 3 Financial Analysis 3 3.1 Profitability and Revenue 3 3.2 Efficiency and Debt ratio 4 3.3 Product Mix Revenue 4 3.4 Global stores growth 4 3.5 Starbucks SWOT Analysis 5 3.5.1 Strengths 5 3.5.2 Weaknesses 5 3.5.3 Opportunities 5 3.5.4 Threats 6 3.6 Ansoff’s matrix analysis for Starbucks 6 4 Specialty Coffee Market Competition 7 4.1 Overview of Starbucks competitors 7 4.2 Financial analysis between Starbucks and Dunkin Donuts 7 4.3 Starbucks versus Dunkin Donuts strategies 8 5 Analysis of specialty coffee market 9 5.1 Industry overview 9 6 Future Market Challenges 10 6.1 Factors in favor of the industry 10 6.2 Challenges derived using Porter’s Five Forces 10 6.2.1. The Threat of Substitution 10 6.2.2. The Threat of New Entry 10 6.2.3. Competitive Rivalry 10 6.2.4. The Bargaining Power of Suppliers 10 6.2.5. The Bargaining Power of Buyers 11 6.3 Recommendation 11 6.4 Conclusion 11 Bibliographic 11 Appendix 11 Company Name : Starbucks Corporation (NASDAQ: SBUX) Headquarters : Seattle, Washington, U.S. Number of Employees : More than 200,000 employees Revenue (FY2013) : USD14.9 billion Total number of store : 19,767 stores in 62 countries worldwide Market Capital (FY2013) : USD41.44 billion Chief Executive Officer : Howard Schultz ...
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...Business Description (Size, Geography, Product, service, market) Dunkin' Brands Group is a leading franchiser of quick service restaurants (QSRs), possessing two well-established brands: Dunkin' Donuts and Baskin-Robbins. Dunkin' Donuts is the U.S. leader in serving hot and cold coffee and baked goods. As of December 28, 2013, there were 10,858 Dunkin' Donuts points of distribution[1], of which 7,677 were in the U.S. and 3,181 were international. Baskin-Robbins is the market leader in the U.S. for ice cream. It develops and sells a full range of frozen ice cream treats[2]. As of December 28, 2013, there were 7,300 Baskin-Robbins points of distribution, with 2,467 in the United States and 4,833 in international markets. Corporate History and evolution of competitive and corporate strategy The first Dunkin’ Donuts store was opened by William Rosenberg in 1950 in Quincy Massachusetts. The first Dunkin’ Donuts franchise was opened in 1955, The corporate headquarters of the Dunkin’ Donuts Franchise is located in Canton, Massachusetts. Nearly 100% of DNKN locations are franchised. The company believes its franchised business model provides several advantages. One of the main advantage is the lower capital requirement, because franchisees fund the vast majority of the cost of new restaurant development. As a consequence the company should be less affected by store-level operating margins and fluctuations in commodity costs than other QSR operators since it derives a large percentage...
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...“Case Study: Opening Your New Dunkin’ Donuts Locations” KO Management for Organizations Professor BA August 24, 2015 Introduction: As the rising District Manager for the new Dunkin’ Donuts stores, many factors must be presented, analyzed, promoted, and executed. Opening new stores requires innovative ideas, being ahead of the game with the newest trends, and stabilizing the stores for the least amount of turnovers. Managing stores also means maintaining respect while coaching is vital. This requires feedback on both upward and downward channels of communication. For the purpose of this paper, Dunkin’ Donuts will be assessed and evaluated based on its job and organizational designs, criteria for recruiting and selecting for optimal efficacy, and appropriately training and appraising employees. Job Design: The job design of an organization includes the job analysis, job description and the job specification. As described in “The Five Functions of Effective Management”, the purpose of a job design is “organizing tasks, duties, and responsibilities into a productive unit of work” (As quoted by Baack, 2011, Section 4.2). Analyzing the job requires the human resource department to identify these tasks, delegate who will execute them, and to match the employee to the task. Human Resources collaborate with Dunkin’ Donuts department mangers to figure out what will work in the organization design. Often times, this will mean comparing the company with other similar quick...
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...Executive Report—Internal Management The acquisition of Starbucks will offer those opportunities necessary to expand Dunkin’ Donuts. Currently, Dunkin’ Donuts’ main target market is aimed at adults 25-55 years of age, working class. Our strategy is to increase market share by broadening the target age groups. A significant strategy of Starbucks is the barista training program. Starbucks accommodates their innovation and fast growth by putting in systems to recruit, hire, and train baristas and store managers. Their dedication is what makes the Starbucks’ leadership team the best in the business when it comes to leading the company into the global market. Financial Statement Highlights In past years Starbucks has shown marked improvements in key financial indicators. The company was able to increase their operating income by $857.4 million and operating margin by 7.6% since 2009. Starbucks increased their cash flow from operations from $1.4 billion in 2009 to $1.7 billion in 2010. Earning per share (EPS) increased by $.72 and Starbucks issued the first dividend in company history. In addition, the Board of Directors has authorized an extension of the share repurchase program. Since 2007, Starbucks has authorized the repurchase of 55 million shares. At present, all but 20 million have been repurchased. Altogether, Starbucks was able to return roughly $460 million to their shareholders (Starbucks 10-K). Much of the financial improvements seen are the result of a global...
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...“Case Study: Opening Your New Dunkin’ Donuts Locations” MGT 330: Management for Organizations Professor Bryan Aylward August 24, 2015 Introduction: As the rising District Manager for the new Dunkin’ Donuts stores, many factors must be presented, analyzed, promoted, and executed. Opening new stores requires innovative ideas, being ahead of the game with the newest trends, and stabilizing the stores for the least amount of turnovers. Managing stores also means maintaining respect while coaching is vital. This requires feedback on both upward and downward channels of communication. For the purpose of this paper, Dunkin’ Donuts will be assessed and evaluated based on its job and organizational designs, criteria for recruiting and selecting for optimal efficacy, and appropriately training and appraising employees. Job Design: The job design of an organization includes the job analysis, job description and the job specification. As described in “The Five Functions of Effective Management”, the purpose of a job design is “organizing tasks, duties, and responsibilities into a productive unit of work” (As quoted by Baack, 2011, Section 4.2). Analyzing the job requires the human resource department to identify these tasks, delegate who will execute them, and to match the employee to the task. Human Resources collaborate with Dunkin’ Donuts department mangers to figure out what will work in the organization design. Often times, this will mean comparing the company with other...
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...VIDEO GUIDE Advertising: Principles and Practice, 8th Edition Moriarty/Mitchell/Wells Segment 1: AFLAC Summary That wacky, quacky duck brought AFLAC to a high spot among most-recognizable ads and brand names. The insurance company is growing quickly as a result of this greater name recognition. It achieved 89 percent brand recognition in a relatively short time, resulting in $10 billion in sales and about a 25 percent compound growth rate. AFLAC had spent millions of dollars on advertising with little or no effect and almost no market awareness. Clearly, the current strategy was not working. This led the management team to decide to try something bold to increase market awareness. The advertising agency came up with many different ideas, but one crazy one—a duck. AFLAC tested the ad concepts and, as we know today, the duck yielded the highest results. The goal of advertising is to create awareness, while the actual sale comes from the agents selling the complicated insurance products. Discussion Questions 1. What other industries, products, or brands have used humor in advertising to help position themselves in the marketplace? Do you think the strategies have worked? Where wouldn’t humor work? Humor wouldn’t work all that well with serious purchases (e.g., health), but one might think it wouldn’t have worked with something as serious (boring?) as insurance. Might that be because the humor is associated only with the name and not the insurance company’s attributes...
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...main purpose of the current paper was to develop strategic plan for Starbucks for the future and to analyze the alternative strategic directions compared with the existing strategy. The paper starts with brief description of the company profile and the product line that company successfully offers during their operations history. The second part of the strategic plan analyzes the external environment of the company by analyzing the industry current situation. From the Five forces model we able to move on to ascertain that the industry generally is attractive that lead to a growth of strategy. The external environment analysis identify that company faces a strong competition from competitors from other industries like case of McDonalds and Dunkin Donuts. Also, from the external analysis was identified the success factors of Starbucks that led them to leading position in the industry. The drivers of change are describing the external environment in which the company operates and to which factors company need to pay attention for the future avoidance of challenges. The third section of the assignment analyzes the internal environment of the company there is given high attraction to SWOT analysis in order to understand the company’s opportunities for growth and strengths that could increase the strategy’s success and implementation. Moreover, in this section was analyzed the strategic issues of the current strategy and capabilities that company contain in order to redesign the operations...
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...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 Starbucks should open more in second or third major cities in different provinces...
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...Tim Horton’s [Type the document subtitle] [Pick the date] PNC Bank pt24581 Target Market Adults Tim Horton’s primary target market is men and women aged twenty five to forty. According to scottrade.com, this group accounts for almost half of its total business (forty nine percent). Tim Horton’s attract this group through contemporary design and consistency in its advertising and décor, and the drive to keep their products current to avoid the “lost in time” negativity that can arise in small businesses. According to a personal interview with my relative John R. Moses, who is a senior manager at one of the shops in Canada, claims “our consumers tend to be urbanites with relatively high income, professional careers and a focus on modern social lifestyles. This target audience grows at a rate of three percent annually. Young Adults This category consists of individuals aged eighteen to twenty four, total forty percent of Tim Horton’s sales. (Scottrade.com) Tim Horton’s positions itself as a place for college students can relax, study, work in groups, and network. The company appeals to this consumer directly through free internet services, such as Wi-Fi, focusing on social networking and actively cultivating an “energizing” image. According to John R. Moses this group grows four point six percent each year. Kids and Teens Through Tim Horton’s friendly environment, they appeal to kids that come with their parents. They do not cater directly towards kids;...
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...different groups: analytical marketing research group, new product development group, and a promotional development marketing group. This has created a major problem for Starbucks because, as stated in the case, “We tend to be great at measuring things, at collecting market data, but we are not very disciplined when it comes to using this data to drive decision making.” This is a problem because although they have a vast amount of data about their customers, they don’t know how to turn it into money. One of the most obvious problems that I see with Starbucks is the amount of market left untouched. There are currently eight states, and 150 of the nearly 300 metropolitan areas in America left open for grabs. As competition is on a steep rise, occupying these markets is more vital now than ever before. Dunkin Donuts is one of the biggest competitors to Starbucks. As they gain brand awareness, the market share they hold steadily grows, taking away from the...
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