Case Study Of Costa And Starbucks

The coffee served in Second Cup is also high quality and the drinks available strongly rival those in Starbucks. In the past decade there has been an explosive growth of 157% in the area of coffee shop market. Canadian coffee market share, new companies have limited to no space for growth in North America. Second Cup’s market share at the Canadian market is about 8%.Upon these facts and analysis there is an unlimited growth possibilities in the coffee market in Canada. There are different factors that do influence in the purchase of coffee from these outlets and the the way these coffees are priced. Customers are reluctant to get coffee from these outlets as the prices are too high than the coffees that could be made at home. There is a huge conflict between the pricing of coffees at these places and homemade ones. Coffee shops are determined to serve the best quality coffees which are been imported from South America and Africa, due to the rise in oil prices transportation charges have also been increased. And also due to different global climatic conditions the prices of these gourmet coffee beans have been increased.

Nowadays, there are many coffee shops that are very successful in the world of business. There is the Starbucks, Gloria Jeans, Coffee Bean and Tea Leaf, Bo’s Coffee, Figaro Coffee Company, and many more. These companies have different stories to share and that story made a mark in the world of business. Some people tell that “why there are businesses like this instead we can buy our own coffee that has lower cost.” The difference is, buying coffee in the coffee shops is there is a quality in the beverage you buy. The taste is different than the coffee in a sachet because in coffee shops the quality of the coffee bean is processed perfectly unlike in sachet, the coffee is just a pulverize coffee bean that is sometimes mixed with other products like milk, sugar, and

The “Coffee Wars – The Big Three: Starbucks, McDonald’s and Dunkin’ Donuts” article focuses on the company analysis of the Starbucks brand and how its main competitors, McDonald’s and Dunkin Donuts, has affected their brand and driven competition higher. Even though there are many companies trying to enter the specialty coffee market, these three companies own the majority of the market share. With Starbucks’ top quality and above average prices they hold a different market than the fast coffee/food market of Dunkin’ Donuts and Starbucks; yet the competitive moves Dunkin’ Donuts has made over the years in order to compete with Starbucks and surpass McDonald’s has driven competition up between all three companies. The competition has stiffened ever more in the past ten years due to the changing economy. This led to “the big three” to come up with different techniques to gain competitive advantage over the other. Although the competition between these companies is to gain most of the market share, consumers are still loyal to a certain brand; this makes it difficult to gain each other’s clientele. McDonald’s continues to appeal to customers who want value and speed, Dunkin’ Donuts focuses on the middle-class, while Starbucks a customer who desires a higher quality product along with being recognized for using the brand.

The survey questions mostly consisted of multiple choice questions, two open-ended questions, allowing written responses, and one qualitative response question. These questions were chosen to establish consumers differences and comparative perspective of Starbuck’s competitors, their daily usage of the social media platforms, the coffee shops visited frequently, and their opinions on consumers who frequent Starbucks. The survey contains one matrix/rating scale question ( Appendix I, Question 5) based on how important qualities are when choosing a coffee shop. Lastly, there were two demographic questions. The demographic questions are for a general understanding on consumers behavior based on age group and gender. For an overview of the survey, see appendix I.

There were many contributing factors to Starbucks’ success in becoming the leading coffee brand worldwide. Starbucks value proposition was to provide a ‘live coffee’ culture. The primary value included providing high quality coffee to consumers all around the world. They controlled the greater part of the Supply chain from the growth of coffee beans to the dissemination in retail stores. This was done to ensure superior quality as compared to other brands in the market. The second value was to provide the befitting atmosphere keeping interior design as a critical factor. With most of their coffee stores located in high-visibility places, it proved to be convenient and provided the inviting environment to ordinary customers who wanted to escape

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).

The gourmet coffee industry has continued to grow for the Great Cups of Coffee company since it began in the year 1997. It seems that gourmet coffee has become in great demand for the American workforce and for people who love it. Coffee shops can serve as place to relax, read, socialize, work and study. Some coffee shops even provide wireless hot spots. The current trend seems to be spending five dollars on a cup of gourmet coffee. Some coffeehouse competitors of Great Cups of Coffee Company are Starbucks, Panera Bread, Dunkin Donuts and McDonalds.

The Starbuck Corporation is considered as the one of the leading firms across the globe in specialty coffee consumption. Since its inception and launch in a market in Seattle, Washington, the company has developed to extent with which it offers quality premium coffees with an excellent level of customer service and at reasonable prices worldwide. The growth and profitability of this company is attributed to its development and use of an effective marketing strategy. Actually, the firm is renowned for successfully adopting a differentiation focus strategy designed to offer high quality, focused product, and premium prices, which is in essence no object to its customers. Throughout its marketing initiatives, Starbuck Corporation does not market its product or the firm aggressively but drives its sales through the image and reputation it has developed (Larson, 2009).

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.

There is nothing like a hot cup of Joe in the morning. From the Coffea plant humans have masterly crafted multiple types of coffee to drink. In our modern era, coffee is all around the world. People tend to prefer certain coffee companies over others. What is the difference? All the coffee comes from a Coffea plant. So, which coffee company do people prefer most? Starbucks? Dunkin’ Donuts? McDonalds? Why do people prefer one company to another? As a common coffee drinker, the researcher is very curious of other people’s preference. With all of the coffee choices, is the more expensive brand the best?

Consumers are less inclined to buy coffees and teas in supermarkets due to the wide variety of coffees that are available in coffee shops today. Hi-tech equipment and premium ingredients are now easily accessible and are used to make a variety of hot and cold beverages that are sold in coffee shops; from cappucinos to the ice blended coffees. As a result consumers are becoming more knowledgeable about the ranges of specialised fresh coffees and premium teas that are

Starbucks which from small businesses to todays global cafe, has managed to become one of the best coffee chain and suppliers in the world. As early as in 1971, three friends (Jerry, ZEV and Gordon) sell fresh coffee beans and accessories in Seattle are the idea of passion. Things started to change; Schultz wanted to sit environment friendly coffee service development the business. Schultz provides coffee spread the idea of sitting together in a culture, and since that time, Starbucks is in a fast way to start a unique development way. According to survey that Starbucks has 16706 stores in more than 50 countries around the world also has 8850 companies to operate 7856 licensed stores. (Starbucks material, 2010). People want to drink a cup of coffee at Starbucks and they real want a place to have a rest, relaxed and talk. For the generation Y, they want to talk and drink coffee with Wi-Fi and friends. Additionally, that is what Starbucks is trying to create in the near future: coffee and the newspaper, a hyper local niche sites nationwide Wi-Fi. (Stefanie, 2010) Meanwhile, Stabucks’s Products are not only is the coffee but also is a kind of carrier. In addition, Starbucks want to send customers a unique style by the carrier coffee. Coffee consumption is a largely cultural consumption level, cultural communication need coffee shop to help people feel the culture of Starbucks and infect customers by this unique cultural and let the customer enjoy the

This case assignment discusses the history of Starbuck’s accomplishments as they entered the American coffee culture heritage. In 1983, The chairman and CEO Howard Schultz traveled to Italy and had a dream to carry the Italy coffeehouse ritual back to the United States. Schultz was focused on creating an environment meeting company that makes good coffee but also be a social experiment. Starbucks today opened more than 19,000 stores functioning in 62 countries. Starbucks has numerous rewards that globalization has offered and they have significantly benefited from it, while in the coffee industry. Starbucks has a wide-range in marketing strategies to benefit the customers. During the different obstacles that Starbucks has encountered, they must stay reliable in quality and uphold to adjust to different customer values.

Module 1: The organization that I am going to use is Starbucks. This is an interesting company because of a few factors. It dominates its industry, is able to charge premium prices, and some of its inputs are priced on the world market. Also, as a retail operation, Starbucks should fit fairly neatly into economic concepts.

Giving customers a high quality coffee experience along with comfortable and spacious facility where they could spend their time with friends and family. According to a research report on coffee chain, “Very few of Indian consumers order a