Business Plan For Vanilla Bean Coffee Shop

Coffee consumption in China is highly concentrated in large cities such as Beijing, Shanghai and Guangzhou. Also other cities like Wuhan coffee culture seems to expand. Recently coffee appeals to adventurous young, rich, and urban consumers. This is just because originally coffee is considered as a Western concept to most Chinese consumers. According to Subhuti (2003), the Chinese do not consume coffee because of its potential health value either in terms of modern medical data or traditional Chinese medical concepts. Rather, it has been consumed until now as part of the fascination with western culture that has grown during the past few decades. However the coffee culture is getting well known in China nowadays. Chinese

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.

In the US, specialty coffee is a $5-billion industry with a 20% growth rate (House, 2013)

A recent primary research survey has found that 70% of occasional coffee drinkers view the Mr. Coffee brand as an inferior or budget coffee brewing device that does not make a superior cup of coffee (Appendix, Opinion survey). Brands such as Keurig, Cuisinart, and DeLonghi inspire more thoughts of quality coffee than Mr. Coffee. Other consumers are opting to spend several dollars per cup of coffee at coffee houses such as Starbucks, Caribou Coffee, Dunkin Donuts, and even McDonalds (Appendix, Opinion survey).

Within the coffee industry Starbucks Corporations has grown from a small shop to a leading coffee distributor, proving to have financial strength and determination to continue growth. With the weakening economy the continued success of Starbucks

Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).

I set out to find a place to begin my observations, not knowing what to fully expect, what I may find. So I decided to look around at what is close to my home that isn’t a place I frequent or have even visited at all. Then it came to me, the Starbucks that is only about a mile away is a perfect place for me to observe subjects that I would consider different from myself, seeing as how I consider such obscene prices for coffee ridiculous. Starbucks is a very popular chain of coffee vendors that describe their product as more about quality than what Americans are used to in typical coffee joints.

The growing chained coffee shops culture in the on-trade has inspired manufacturers to launch specialty coffees in the off-trade. This has led to an increase in both volume and value sales of coffee in the Netherlands. Dutch consumers are becoming more adventurous when it comes to coffee, as is illustrated by the growing popularity of espresso, cappuccino, single origin coffee and flavored coffee.

People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.

Starbucks’ lead in the specialty coffee industry exemplifies the result of deftly executing a well-planned business strategy. Moreover, Starbucks is well positioned for what is expected to be a continuing rise in the popularity of specialty coffee products. The question before Starbucks’ leadership, however, is what avenues will lead to Starbucks’ goal of remaining true to its core, the highest quality coffee products while providing a “total coffee experience” for its customers?

The larger known coffee businesses were beginning to show signs of stagnation in the 1970’s and 1980’s. Unlike Proctor & Gamble other large manufacturers, specialty coffee producers were small independent distributors. According to the Harvard Business School report on Howard Schultz; During the early 1980’s the average American consumed less than two cups of coffee per day, with almost one of every two men , women and children over the age of 10 does not drink coffee at all. The large coffee business started to compete for market share in a shrinking market. The smaller independent specialty coffee producers were selling only high quality Arabica beans. Arabica beans have less caffeine, less

In general the coffeehouse industry in the United States was experiencing an increase in coffee consumption per capita due to the “Starbucks effect”. At this time Starbucks was operating approximately 20,000 stores in the United States and was living a fast expansion strategy worldwide.

The demand for coffee shops is born from the increased number of individuals seeking coffee brewed outside of the home. This creates a larger market for coffee shops. An increased amount of people are starting their mornings off by purchasing breakfast and a cup of coffee away from home (Tuttle 2014), more people are enjoying gourmet coffee (NCA National Coffee Drinking Trends 2015 Infographic), and younger generations are demanding more coffee and coffee drinks from coffee shops (Tuttle 2014, S&D Coffee and Tea inc. 2014, Statista 2015). Coffee shops must compete with at home coffee, work place coffee, and teas for the caffeinated beverage markets (LN 2015). Demand for coffee within different markets varies, and provides competition for coffee shops. Single cup coffee makers, increasingly qualitative instant coffees, and gourmet beans are all sources of competition that could satisfy the demand for coffee. However, coffee shops are becoming more ingrained in social

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.

I would like to propose a marketing plan for opening a coffee shop in the city of Moscow. Over the past two or three years, a coffee shop in Russia managed to grow in a socio-cultural phenomenon: at once there was like a house of cards, the Soviet culture of consumption of coffee.