They tried to maintain the prices to make it affordable to everyone. Starbuck price their products based on the number of tea bags or how many coffee beans is needed to make a drink more than how much water is needed as water is fairly cheap. They uses premium pricing strategy. Customers paid a high price for premium coffee beans/tea bags. This does help in giving Starbucks a high-end speciality image.
Founded in London in 1971, Costa is the nation’s favorite coffee shop and the largest coffee shop chain in Britain. Costa Coffee is also the leading retailer and roaster. According to Costa’s official website, they are the only coffee shop business in the world that source 100% of their beans from Rainforest Alliance certified farms. Unlike Starbucks that uses automatic coffee machines, each and every cup of Costa Coffee is made using the beans that have been slow roasted for 22 minutes in Costa Roastery in London and handcrafted by Costa’s baristas. This is to ensure a smoother flavor, which can produce a bitter taste (Dana, 2010).
They manage the majority of their lives through the use of technology, and appreciate anything that makes their lives easier or more "connected.” They are active on social media and enjoy the ability to connect with brands online. They are informed about current events and care about their community. They value their time and welcome the opportunity to multi-task. Internal Motivations When someone visits a Starbucks, they go for more than just a cup of coffee; they are looking for an experience. They value quality and the ability to customize their order to their specific preferences.
Despite being comparatively new in the local breakfast industry, these fast food giants have become big players and have been gaining increasing popularity as most people look for less time consumption and convenience. R & H Café R & H Café’s business concept lies in offering quality products and services at affordable prices while preserving the coffee shop tradition. Their target customers are adults and professional working people as they serve alcoholic drinks and business meetings can be held in the café through appointments. Kennington Lane Café From a full English breakfast to special lunches and kebab dinners, this family-run Kennington café serves everything handmade. High-quality food is available at an affordable price.
There are countless flavors of Starbucks coffees available in “k-cups” for, giving the consumers more choices for their morning cup without having to wait in line. Due to the international presence of the Starbucks brand, consumers can travel to another country and still be able to order their favorite cup of coffee. There are other brands, like Biggby, that have tried to copy the Starbucks business model by offering similar products (coffee, scones, bagels, etc. ), but Starbucks is at an advantage due to their early presence in the market. Consumers are more than willing to wait in line, listening to countless complicated orders just to get their coffee.
Starbucks gets badmouthed a lot by people who feel it is an unjustifiably expensive bad habit. But, really, a cup of coffee is hardly the end of the world and it is not some Sodom and Gomorrah level of debauchery. Additionally, there is more to Starbucks than just coffee. But, like any expense, if you do it habitually, it can really add up. Making it a habit Join Starbucks Rewards Program This is the single biggest thing you can do to save money on your Starbucks habit.
Targeting Despite the similarity in segmenting methods that both Dunkin’ Donuts and Costa Coffee adopt, we can see the same pattern in their targeting strategy. The two brands pursue concentrated marketing strategy in their ads, targeting the two segments that they have chosen during the segmentation phase. Nonetheless, with the introduction of customization for their beverages, the brands also show a level of one-of-one marketing. On the side Dunkin’ Donuts, the target market is the large segment consisting of normal coffee drinkers who need coffee everyday such as students, office workers, or drivers. In the third panel of their ads, Dunkin’ Donuts talk about how their coffee is the solution to a “crazy morning”, “commute”, and “life’s daily chaos”.
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
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.
Thus, most often coffee is associated with smell, freshness, cigarette, waking up in the morning, something exotic, relaxation, bitter taste, cream, foam. Consumers tend to include hot chocolate in the same category with coffee. Coffee is a very popular product consumed daily in a large variety of occasions. Usually it is consumed throughout the day, the responders stating that they drink at least two cups of coffee per day. The aspects influencing consumption are related to: mood (stress, physical or mental fatigue), time of day (morning, afternoon, only rarely in the evening and in small quantities), events (visits, meetings etc.).