Changing consumers’ preference can also affect the sales of coffee and the business of Starbucks. The company needs to focus preferences of customers, where they strive to serve the best coffee possible at the highest standards of quality to its customers in order to provide a delightful customer experience. According to (Morrison, 2013) ‘’they provide more than 30 blends of coffee and a variety range of exceptional products to the customers’’, such as cold and hot coffee, salads, sandwiches and other snacks. They can enjoy their products at stores, home, and on the go. Starbucks attracts a wider range of customers including people of different ethnic backgrounds and ages.
This is to ensure a smoother flavor, which can produce a bitter taste (Dana, 2010). Costa defines itself as the ‘Real Coffee’; lesser choice, higher price but their coffee is smooth, aromatic and delicate. Although this could reduce the production of the coffee beans, Costa still insists on its way to retain the coffee oil and aroma of the coffee. As a consequence, their target market is limited because the lack of flexibility. In contrast to that, Starbucks always try to integrate to local cultures in different country.
Product: Starbucks mainly specialized in coffees and but also sells other beverages such as premium quality teas, ice-blended beverages, pastries and some of their merchandise like for instant tumbler and mugs. They still continued to innovate more of their products to cater to attract more people to buy their product. For example, in 1994, Starbucks starting selling Frappuccino at their store. Price: Starbucks announced in 22nd September 2010 that there will be an increase of prices for their beverages due to the increasing prices of raw materials such as coffee beans. They tried to maintain the prices to make it affordable to everyone.
The company has more than 12,000 restaurants in 45 countries worldwide. Every day Dunkin' Donuts is ready to offer its guests, who stop for coffee and baked goods next items: 1. A high-quality coffee from 100% Arabica coffee beans, hot and cold drinks on its basis. Dunkin’ Donuts uses a secret coffee recipe that people love because it’s a consistent, smooth, never bitter, rich tasting cup of coffee that they can get every
Central distribution centers make more than 70,000 deliveries per week to Starbucks 25085 stores located in 75 countries. Starbucks is also exploring opportunities to grow its own coffee. Such a shift in the sourcing of products can increase the effectiveness of new product development initiatives for the business as the company will have a chance of experimenting with developing new sorts of coffee. Strategic relationships with suppliers is one of the main sources of value for Starbucks inbound logistics. The company operates farmer support centers staffed with agronomists and sustainability experts who work with coffee farming communities to promote best practices in coffee production designed to improve both coffee quality and yields.
“Nespresso: What Else?” With the world drinking 2.25 billion cups of coffee a day it has become a competitive field for retailers trying to find their niche and maintain customer loyalty to a single brand of coffee. However, in 1986 after 15 years of research, Nestlé had developed Nespresso. During this same time period companies like Starbucks and Costa Coffee we becoming popular, with multiple chains popping all over. None the less these coffee shops and similar bistros were reinforcing an espresso trend of the 80’s. Instead of following in similar footsteps Nespresso was based on the concept of single serve cup of coffee at home with the highest quality ingredients.
Rising prices of coffee beans and dairy products. Health conscious consumers Cases over illegal use of the Starbucks trademark Recommended Solutions / Actions Starbucks’ product pricing is expensive compared to their competitors. They should reduce their product prices by using cheaper beans to produce new type of coffees. Starbucks can offer promotions and special discounts to their customers as well. Such as buy one free one, or buy one and get 50% off for the second cup.
However, the quality of the coffee Café Nero has the same quality with Starbucks coffee. 4P Product - Premium Italian coffee - Best espresso taste (best tasting coffee by Independent consumer magazine) - Offering Italian food in coffee shop - Wide range of products diversify the risk of the firm Price Caffe Nero sell reasonable price of coffee with high quality coffee. The price is very sensitive; it could affect the total revenue of the company. Café Nero seems to have reasonable price cheaper than their competitors. Price skimming strategy can be use to increase sales, since Café Nero already doing well on their reputation and quality product Table2: Price Comparison Starbucks, Costa, and Café Nero Caffe Nero sells most of their products in a lower price compared to the main competitors Starbucks and Costa
To accelerate the cooling process a colander, ventilation, cooling, etc. can be used When toasting a thin film is separated from the grain, especially depending on the process of the coffee in origin will have more or less husk. There are several ways to collect and contain that skin. It is important to remove the film and pick it up but if a little gets mixed with the grains is not a problem as it has no
Internal Analysis Strength & Competency - Convenience: High percentage of takeaway for specialised coffee shops - Experienced staff is hired to grill toast over charcoal and help provide quality health products to the customers - Wide food menu: New, different and healthy (coffee & tea-based beverages can easily be positioned as healthy) varieties of items have been introduced which will give Ya Kun benefit of product differentiation Organisational Weakness - Condiments i.e. Kaya jam, bread, are perishable items hence needs to be sold as soon as possible to gain maximum profit. Customers will also prefer fresh products - Lack of experience in a new market: will face stiff competition from local players - Shortage of manpower due to sudden increase