VALUES: “Serving our communities means more than offering great coffee and baked goods”. For example, their Children’s Foundation and other minor sports programs PROUCT INDUSTRY: Tim Hortons is a coffee based industry. Specially focused on different type of coffees and teas. Also, now serving food along with baked goods. They sell their products at their locations and provide take home facility.
If the cultural trend changes to a coffee-consuming trend, this will highly boosts Starbucks’ sales. 4. Technological Factors Technologies are a major factor for Starbucks. The current technological factors that are affecting Starbucks company are the improvement of mobile applications and the rising availability of coffee machines for home use. The recent improvement of mobile applications allows Starbucks to add its payment option and also allows Starbucks to expand its distribution channel with the food delivery applications.
Starbucks was founded in 1971 by three partners who had met in college. They wanted to make a dark roast coffee that people could enjoy and they also knew what college students liked and didn’t like. They also stressed quality which brings me to my next point of why I believe people come into Starbucks. They come because of the quality. On their website, it says that they target beans from higher altitudes and that’s how they get the best quality in their coffee and I can say that that is true.
Secondly, Starbucks believes that "Eating well is as important as living well" (Starbucks Nutrition, 2015). There are number of improvements Starbucks has implemented in order to serve the needs of their vast customers. For example, high fructose corn syrup, artificial Trans fats, flavor and dyes were removed from their snacks. In order to meet the needs of their customers they now also offer a variety of "Milk" products such as Coconut, Almond and Soy. They have also worked to establish relationships with organically grown coffee farmers and implemented an incentive program to build and strengthen their long-term relationships with their
Individual Case Study: Starbucks Red Cup Controversy Phase 1: Introduction: • Starbucks is recognized for its superb service and customized drink orders o Mission: “To inspire and nurture the human spirit—one person, one cup and one neighborhood at a time.” o Good customer perception of value, relevant brand, presents desired benefits, and consistent • Starbucks red cups are a sign that the holiday season is drawing near o 1997—served holiday beverages in a unique cup Contests to support creativity Inviting customers to rejoice in the holidays o Pattern: Oct. 22 until late January o Has been brought every holiday season for the past 19 years Historical Background: • Various critics (publics) accuse the company of waging a war on Christmas
Strong brand identification or high capital requirements can minimize the threat for competitors. As a brand Starbucks holds very strong reputation in the market. For people Starbucks is like second home as when they get tired of being home or workplace they can sip a coffee there and feel relaxed, which can relate in a bad manner for the new entrants. For Starbucks the threat of new entrants is modest as they have their own standards that are very high to compete with by the other firm. Locally there are many other coffee shops that are developing.
Since they see how it works and how it is packaged, every time they see it they will be psychologically reminded of their desire to have it. Advertising itself has been around for many years now, in various forms. When people think of advertising, however, television is the primary medium recalled (JinLutz, 2013). Over the years, television has gained tremendous power to alter cultures prevalent in societies hence; the images depicted advertisement also influences the viewer’s mindset. Even if advertisers decide to run ads over other media, such as in magazines, or on the radio, television ads may be the most powerful in reaching and influencing consumeperceptions (Jin & Lutz, 2013).
Thirdly, I will explain some of the health risks when consuming coffee. A. Drinking coffee can be beneficial in moderation, but when consumed in immoderation, it can be harmful. 1. For example, “ researchers have found a 21 percent higher risk of death among people younger than age 55 who drank…more than four cups of coffee a day” (“Drinking More Than 4 Cups,” 2013).
Unless, for some reason, consumer preferences/tastes were to change drastically, it seems that Starbucks has successfully created a winning strategy that is both profitable and sustainable –based on this analysis. Starbucks can continue to fight against the threat of substitutes by establishing a welcoming atmosphere at each location, selling products at grocery stores/supermarkets to appease home brewers, and providing a drive thru (when possible) at locations to accommodate the “in-a-hurry/on-the-go”
The latest findings have shown significant results. The massive observational study found coffee drinkers appear to live longer, compared with people not drinking this beverage (Drayer). Sportsmen also encourage the consumption of the beverage. A cup of coffee before exercises improves athletic performance, helping to burn fat for fuel. Furthermore, people consuming around three cups a day have the largest reduction in relative risk of early death than non-coffee drinkers (“Coffee”).