Nabob is Canada’s leading premium coffee, offering a variety of different types and flavours, initially they should offer their highest volume products in pods before adding more selections later on. They should follow their U.S. price points for Maxwell House, and undercut rival brands to gain consumers. Kraft can afford to offer lower prices due to their low production costs. The lower price than competitors would not significantly affect brand image, consumers know the quality that they are getting. Kraft should choose its traditional distribution method to deliver its product to retailers.
Small coffee retailers are providing more to the people of the towns that they are located than Starbucks does as those small local coffee retailers offer reasonable priced for their coffee. People would prefer to have a reasonable priced coffee to Starbucks’ overpriced coffee. Even though, there might be some people who would be happy to have Starbucks instead of their small coffee retailer but the majority of the people still enjoy their local coffee (Katie , 2013). Small coffee retailers provide more happiness to the local people than Starbucks
Whereas, Starbucks has the biggest strength of its brand name value in the world coffee industry. It is not comparable with the others. It helps to boost the customer’s credibility for the brand. Therefore, the company is started from the United State, but they would be able to have had lots of coffee chains across the globe. Besides, as mentioned above, Starbucks give star points depending on your purchasing price and the result of the reward events.
Whereas, Starbucks has the biggest strength of its brand name value in the world coffee industry. It is not comparable with the others. It helps to boost the customer’s credibility for the brand. Therefore, the company is started from the United State, but they would be able to have had lots of coffee chains across the globe. Besides, as aforementioned, Starbucks gives star points depending on your purchasing price and the result of the reward events.
I chose to do my research and observation at Starbucks. I 've always been a fan of coffee and have come to enjoy coffee from Starbucks. For many years, I perceived this place as a spot for people who liked buying expensive yet not that good coffee. I thought I would be observing just a place where people meet up and study, but I didn 't really think I would be going into so much depth. However, mainly I chose this place because I thought there was a lot of potential for good research and I 'm very happy in what I found.
However, the company must work to address the identified threats, especially the threat of substitution linked to the increased availability of home-use specialty coffee machines. On the other hand, Starbucks cannot do much but to avoid the threat of bureaucratic red tape. Overall, the PESTEL/PESTLE analysis framework indicates that Starbucks Coffee has plenty of room for further global growth. The preceding analysis proves the point that Starbucks is operating in a relatively stable external environment. The main reason for this is the fact that it operates in the Food and Beverages space which means that despite the recession, consumers cut down on the consumption to a certain extent and not completely.
The Industry demand has changed due to a shift in consumers’ attitudes towards healthier products. This placed Starbucks’ coffee culture at risk and threatened the company’s future. Starbucks has tailored their menu to include more organic and healthy product mixes, venturing into tea, bread and fresh juice products (Geereddy, n.d). Starbucks’ cornerstone product differentiation strategies and Human Resource Management are the main impacts to strategy formulation. Starbucks’ is a premium valued brand; costly to imitate.
Opportunities Rad Coffee provides its customers with a unique experience that isn’t duplicated anywhere else. Rad Coffee, unlike its competition, created an environment that caters to every individual with everyone’s favorite coffee beverages and some new, fun, creative creations that are unique to Rad Coffee such as the Frankenstein and Cookies & Scream blended drinks. With their off-the-wall personality and their “cater-to-all” styled beverage menu, Rad Coffee has created a brand for itself that is sure to stand above the competition. Furthermore, as a small coffee shop, it could be easier to maintain the business. They have a high potential to expand to more locations with different radical themes to attract more diverse types of people with different personalities and interests.
This shows a major difference between the US and the UK coffee market. In the US, the market is more divided with Dunkin’ dominating the low-price, fast-food coffee segment, leaving Starbucks at the higher quality segment. On the other hand, the UK coffee market is all about the competition in the specialty coffee segment between Costa, Starbucks, and Caffe Nero. Moreover, brands who compete in coffee market tend to stick to one market segment that fits their image instead of trying to appeal to multiple
1) Starbucks is a company that has been in the coffee industry for a long time. It continues to enjoy a leading position in the United States, which is its home country where it sells approximately 50% of the specialty coffee that is sold in the United States for many years. The company has continued to dominate the industry as well as its local competitors. Its generic competitive advantage emanates from its high-quality coffee, which helps to differentiate it from its competitors. The company is very keen on ensuring that its coffee is different from the rest of the competitors.