CHAPTER 1
INTRODUCTION
1.1 Research Background
The food service industry has gone through a virtual revolution since past two decades. New type of soft drinks, juices, tea and hot chocolate and dairy dispenser were introduced. In general, beverage industry is large compared to other industries. For example, coffee accounting for trade worth approximately US$ 16.5 billion in 2010, when some 97 million bags of 60kg were shipped. Coffee is one of the most widely consumed beverages and internationally most traded commodity in the world (Weinberg & Bealer, 2001). Huang & Dang, (2014), state that the beverages industry is the largest industry especially coffee beverage industry. It is one of the world’s most popular beverages and most widely consumed liquid aside from water. Coffee is an important beverage in the economy and society. it contributes to economic growth, developing countries and the relationship are more valuable to consumer in society (Chapagain & Hoekstra, 2007). According to Talbot (2004), over twenty-five million people are sustained by the production of coffee and are linked to billions of consumer who drink it on a daily basis.
Malaysia coffee culture grows by commercializing kopitiams and branding of local café to upgrades services including adopting technology as part of the marketing plans to attract younger generations (Nurbaya & Rahman, 2010). Coffee shop start to enter Malaysian’s society in the late 1990 's as one with some other fast food chain and
In John Standage’s book, A History of the World in Six Glasses, the history of the world is told through the history of six beverages; beer, wine, spirits, coffee, tea, and Coca Cola. The effect that each has had on the world is profound and immeasurable, however, of the six beverages, I have found that coffee has played the largest and most significant role in world history. One way that coffee affected world history is that establishments that served coffee created a social venue for members of the community to bond over various topics. Standage wrote that coffeehouses were hotspots for “gossip, rumor, political debate, and satirical discussion.”, similar to what they are in the present day. These topics led to Kha’ir Beg, ruler of Egypt, as well as his superiors worrying about coffeehouses being a popular meeting place for those wishing to overthrow the government.
This drink originated in the Middle East, heavily influenced by Arabian culture. Over the course of many years, coffee made its way to Europe through trade and helped Europe to come out of its drunken and alcohol induced haze that has lasted for centuries. This, in of itself, is a huge impact to history, despite the fact that Europe had been drinking mostly alcohol for the past few centuries and the people 's initial dislike of coffee, the drink somehow managed to take over the Western World. Those who drank coffee instead of alcohol in the morning began the day alert and stimulated, rather than relaxed and mildly intoxicated, making the quality of their work better. Coffeehouses became a social center to discuss current events, philosophy and science.
Starbucks and Tim Hortons Nowadays, the number of coffee drinkers are increasing. As the demand for coffee grows, the number of coffee chains is also increasing. Of that, the representative coffee chains in North America are Starbucks and Tim Hortons. Starbucks has the highest brand awareness amongst the world coffee chains. It started in Seattle, the United State in 1971.
Also impacting per capita coffee consumption, another industry driver. • Consumers switching to competing lower priced substitutes or
INTRODUCTION Burger KAMI fast food restaurant which served to prepare the burgers were different from those found in Malaysia. Burger was necessarily meet the aspiration of the people of Malaysia for meat produced meat to make hamburgers come from fresh meat. We produce our own beef burger with certain processes to be used as a meat burger. We have the concept of serving fast food to suit local tastes with fast and efficient service in a comfortable and relaxing environment. Our company will also sell fast food service, eco-friendly appeal to the price conscious, health-minded consumers.
The brand has created an unique market segment for itself in quick-service coffee house sector. It caters to the customers of every major segment of family life cycle with variety of food and beverage options. The result of U.S. Census Bureau in 2012 gives the number of household at least one child under 12 years old is 25,596 which corresponds to 31.8 percent of all households (Population Characteristics,2012, p.8, table 2). These numbers show the magnitude of the segment.
Introduction Every business organization is using a marketing concept which is used as a tool to identify customer’s needs. And further try to meet them by making right decisions in line with customer’s needs. In line with meeting customer’s needs the ultimate goal of every business is to gain profit. That’s why they make use of different marketing strategies to meet not only the need of the customer but as well as the goal of the company. We know for a fact that marketing strategies comprises everything from developing a product, to introducing it to the market, to selling and improving it as the need of the target market changes.
I. The world consumes about 2.25 billion cups of it every day, it is also the world’s second most valuable traded commodity, and drinking it can improve blood flow. A. This valued commodity is coffee. B. Americans alone drink 54% of coffee every day. II.
Coffee is one of the most popular drinks in the world. In fact, it is estimated that every year, more than 400 billion cups of coffee are consumed all across the world. For many, it is the choice of drink early in the morning before work while for others it is the drink of choice when they want to burn the midnight oil. Well, whatever the case, there are many benefits in drinking coffee and some are quite shocking and unexpected too! 1.
PORTER’S ANALYSIS New Entrants: In general, there are few barriers to entry in the smoothie industry, which would make this force very strong. • Economies of Scale: There are no considerable decreases in average costs as output increases. Smoothies are generally high margin products, which means that new companies could be profitable without having to sell too many products. • Capital Requirements: In the smoothie industry, there are few fixed assets that would need to be purchased in order to operate.
1.0 Introduction The name of the business that we investigate is Sugarbun. This business provides the consumer the fast food and delivery services. The food provided are vary from sandwiches to broasted chicken to Eastern Cuisine such as nasi lemak classic, sambal eco fish, chicken curry and else and also varieties of beverages. SugarBun is the first Malaysian homegrown fast food restaurant to internationally.
Secondly, the geographic location of Starbucks’ target audience is the urban city of Malaysia, where Starbucks outlets are often regarded as the third location besides their home and workplace for urban professionals to work or to spend some downtime alone or with their peers. Teenagers would spend time at Starbucks as well for meet-ups with friends and as a place to study. Thirdly, there are several psychographic and consumer insights involved.
We enjoy market leadership and are fast expanding. We have the largest franchise network of outlets within the country, having presence in all major urban centres, and are prepared to explore market potential in Gulf, UK, USA and Europe soon It’s a long history of 40 years of hard work, perseverance and passion. The idea of establishing Cafe Students was conceived and materialized by Haji Mohammad Ali (Late) in 1969 with very humble beginnings. It all started from home cooked Biryani and a few other dishes served from a small eatery located in the middle of the city, Saddar, Karachi.
Winter was just around the corner. It was my first time in the biggest coffee shop in town. I could see the cheerful and brilliant lighting of the shop as I walked across the vast parking lot. There were tables outside the shop each with a brown vintage style umbrella. This particular coffee shop is not a cafe, it’s a coffee shop literally.
In this section, we use the Porter’s 5 forces model to evaluate the attraction of the industry when focus on the following 5 forces, Calm coffee faces the impact of the 5 forces, as outlined in Porter’s model. These five forces have different intensity or advantage based on Calm coffee position, as follows: This part of the 5 Forces analysis shows that competition is one of the most important of Calm Coffee need to concern. The businesses have many competitors, which have different sizes, specialties and strategies. For example, Calm faces the competitive force of McDonald’s and Starbucks, as well as other specialty coffeehouse. The strong force of competition is also because of the low switching cost, which means that the customers can easy