Business Model of Nespresso

The specialty coffee industry had seen steady growth for years and the trend was expected to continue until at least 2015. Of the various segments within the specialty coffee industry, most of the growth was attributable to beverage retailers “Coffee and kiosks”. In 1979 there were approximately 250 specialty coffee retailers. The number quadrupled by 1989 to approx 1000 outlets, and it exploded to roughly 15000 by 2002. Nationally, specialty coffee sales totaled over $ 10 billion in 2005.

As the world’s number one specialty coffee retailer, Starbucks sells coffee drinks, food items, coffee beans, and coffee-related accessories and equipment. In addition, Starbucks sells whole-bean coffees through a specialty sales group and grocery stores. Starbucks has grown beyond coffee into related businesses such as coffee-flavoured ice cream and ready-to-drink coffee beverages. The purpose of this paper is to analyze Starbucks business strategy, customer value proposition, company’s operations and the risks to financial results and reporting in the short term.

With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.

Starbucks is dominant coffee brand in North America, which also is well-known worldwide. Established in 1971 as coffee shop oriented to a niche of coffee purists, in late 1980’s it turned to be a constantly growing chain of stores that sold whole-beans and premium-priced coffee to mostly affluent, well-educated customers. In years 1992-2002 company was showing at least 5% annual growth. And by 2002 Starbucks was serving already 20M customers in 5886 stores (both operated and licensed) around the globe, had $3.3 billion net revenues and was opening 3 new stores a day in average.

Portola Coffee Lab first started as a Portola Handcrafted Coffee Roasters in Irvine in 2009 by Jeff Duggan. Jeff and his wife created Portola Coffee Lab in 2011 with the goal of creating 100% single-cup craft brew coffeehouse designed and constructed as a nod to craft, quality, and freshness. There are four locations currently operates in Costa Mesa, Tustin, Santa Ana, and Old Towne Orange, while Huntington Beach and Mission Viejo are under constructions.

Starbucks Corporation, generally known, as Starbucks Coffee is the leading retailer and a brand of world’s forte coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim, wherever in this world where premium quality coffee is in demand. Starbucks is the largest coffeehouse company in the world ahead of UK rival Costa Coffee, with 20737 stores in 63 countries and territories, including 11910 in the United States, 1496 in China, 1442 in Canada, 1052 in Japan and 772 in the United Kingdom. The first Starbucks was open in 1970. The name was inspired from Herman Melville’s Moby Dick, a definitive American novel regarding the 19th century whaling industry. The nautical name matches seamlessly for a store that imports the world’s finest coffees to the cold thirsty people of Seattle. In May 1998, Starbucks have finally successfully entered the European market through its acquirement of 65 Coffee Company stores initially originated from Seattle in the UK. Both companies shared a common culture, focusing on a great commitment to customized coffee, similar company values and a mutual respect.

By 2003, the number of retail specialty coffee shops, cafes, kiosks, coffee carts, and roasters in the United States reached over 17,000, equating to nearly $9 billion in sales. According to the Specialty Coffee Association of America, 16 percent of adults in the United States drink coffee from one of these specialty outlets daily. (“Organo Gold”, 2008).

Nestlé has to face huge competition from broad range of product categories. The competition, all the rougher as, Nestlé has to deal with multinational organizations competitors with similar range of products. Moreover, the company

Coffee House uses market penetration by giving out coupon and offers where Nintendo only uses advertisement for their product.

Logano was born in Palermo, Sicily. His father, Ricard is the owner of a resort, luxury hotel and casino on the Sicilian coast. He obtained the business by killing the previous owner because of betrayal and completely took over. He’s also the underboss of the Mansocti crime family. His mother was a well-known burlesque dancer, who's performed all over the world. Clearly, he grew up pretty wealthy, alongside his younger sister Cicciolina.

Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.

Starbucks first opened its doors in Seattle’s Pike Place Market with the name being coined from that of Moby Dick’s first mate (Schultz & Yang 1999). It has spread its shops across North America, all over Europe, the Middle East, Latin America as well as the Pacific Rim with an estimated 35 million customer weekly (Michelli, 2008). With tremendous growth from a small time coffee shop, the company has matured to an international icon that today it is one of the world’s leading retailer, roaster and brand specialty coffee (Story, 1971). The company offers whole bean coffees, espresso beverages, and confectionery and bakery items.

Question 1: Has Starbucks done well in Turkey? What are some of the common growth drivers in terms of consumer characteristics, market characteristics, and entry strategies across the USA and Turkey that might account for Starbuck’s success?

The Nespresso story began over 30 years ago with a simple but revolutionary idea: enable anyone to create the perfect cup of espresso coffee just like skilled baristas. The company would provide the coffee and the machine, giving home grown coffeemakers the total coffee making (brewing) experience. The Nespresso concept has redefined and revolutionized the way millions of people enjoy their espresso coffee today. It has shaped the global coffee culture from growing, manufacturing, distributing and

The objective of this project has been to understand the marketing mix of Barista and Café Coffee Day and compare the two firms in terms of their operations and other aspects. We took up organized coffee retailing as we wanted to understand what it takes to sell not only a coffee but a whole experience in a country where coffee is not as preferred & popular as tea. The firms that have ventured into coffee retailing business in the country are Café Coffee Day, Nescafe Café, Café Mocha, Georgia Coffee, Chimayo Chains owned Qwiky’s brand of coffee pubs and Barista to name a few. Out of these we chose Barista and Café Coffee Day for our study because of their popularity and wide