Marketing Analysis : The Coffee Industry

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

The caffeine in coffee become an ethical increase over alcohol and have become a fashionable social beverage. It was interesting to see how it started off as this very exotic drink only for the upper class and then turned into what it is now. Coffee is a very fashionable drink that does not cost much that many have led their days with in today’s society.

Thesis/Review of Main Points: We are going to explore a brief history of coffee along with the negative and positive effects that it has on us.

The first opportunity is that over 50% of eighteen year olds and older drink 3 or more cups of coffee per day in the United States. This group of coffee drinkers consists predominately of college students and career professionals who adding the morning cup of joe to their study time or work schedule. Currently in the coffee industry, competition is minimal for Starbucks, which has allowed Starbucks to capitalize on one of the biggest industries in the world behind crude oil. This

A coffee industry is a growing market as recent studies show that the world coffee demand growth are considerable potential for more dramatic increases. ‘An initial estimate of world coffee consumption in calendar year 2014 comes to 149.3 million bags. This represents an average annual growth rate of 2.3% over the last 4 years. The strongest growth over this time has been found in emerging markets, averaging 4.6% since 2011, with particularly strong demand in Russia, South Korea, Algeria and Turkey’1 .Nespresso company is one of nestle group which is located in Switzerland. An employee of Nestle invented the Nespresso machine. The Nespresso Company manufactures both machines and the capsules they use, and makes most of its revenues from these capsules. Nespresso sells their pure coffee in capsules which has been

Starbucks is known for their Frappuccino’s; unfortunately they are on a downward spiral in sales due to competitors such as McDonalds. In 2008 Starbucks admits to its losses due to their competitors. “Company executives now freely admit that such thinking is largely to blame for the woes that led to Tuesday’s announcement that Starbucks will close 600 U.S. stores and eliminate thousands of jobs. The coffee giant’s missteps have come at a spectacularly bad time, hitting as the economic slump deepens and consumers are seeing their discretionary spending eaten up by rising gas prices and grocery bills (Linn).”

When Howard Schultz launched Starbucks, its main targets were the competitors and the customers. Schultz’s brand aimed at gaining dominance in the coffee industry in addition creating a Italian coffee shop feel in the United States (Buchanan & Simmons, 2009). The strategy of Starbucks was based on new products, listening to customers wants and ensure future expansion (Buchanan & Simmons, 2009). In creating convenience for customers, Starbucks created stores almost on top of eachother. They hinged on the idea that, they did not want to lose out on a sale if a line was too long. This action, of placing stores in heavy populated areas, basing need on projected growth of an area caused some decline in sales during economic trouble with the economy. The 2007 recession, failure of subprime mortgages, increased competition from McDonald 's McCafe brand, and Dunkin Doughnuts all led to a decline in sales for Starbucks in the fourth quarter of 2007 (Buchanan & Simmons, 2009). To attempt to regain market share and recover after the

Waking up drowsy, struggling to get out of bed and the difficulty to mentally prepare for the day is a common problem that many individuals deal with day in and day out. Consuming one particular caffeine-filled drink can almost always solve the morning grogginess and lack of motivation for the majority of people. Coffee has become part of the daily routine for the majority of people all around the world, and due to the constant demand for coffee, there are numerous multi-million and multi-billion dollar successful coffee chain companies that can be found internationally and all over the globe. When considering all of the major coffee corporations, a few well-recognized names that are frequently mentioned are Dunkin’ Donuts, Saxby’s and

As for other coffee consumption facts, brewing coffee at home declined from 2006-2011 with 75% of total coffee sales made “away from home” (High Beam Business, 2012). Furthermore, an interesting study revealed the growth in this target market: “another new and large growing target market within the coffee industry is college-age students and post graduate individuals residing in urban areas. These two segments account for the largest portion of coffee drinkers” (Scribd, 2012, Marketing

Having more than two hundred seventy three company owned stores, Caribou Coffee is the second largest company- operated premium coffeehouse and retailer in the United States. Although it’s one of the largest coffeehouses it still has to compete with not only national coffeehouses like Starbucks but local ones as well.

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?

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.

Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop

The drink was no longer just a utilitarian morning stimulant and has a satellite pastime very European style: the windows from floor to ceiling, special atmosphere, soft music, dozens of varieties of coffee. However, besides all this, coffee is a business not only successful, but also has today a huge potential for development.

Abstract this study focuses on the unique coffee drinking culture, the specialty coffee industry, and the behavioral patterns of coffee drinkers. Coffee drinking in specialty coffee shops is compared with coffee drinking behavior at home, in school or in the office. the results are based on two consumer surveys, each involving three hundred respondents. One survey was conducted among current in-store coffee shop customers and the other among consumers aged sixteen to thirty, randomly picked among store/mall visitors, residential subdivisions and offices.