Marketing Strategy: Dutch Bros. Coffee Strategy

The world has a lot of coffee drinkers and many coffee shops to accommodate these people’s needs. There are so many coffee shops that sometimes it’s hard to choose where to go. I have personally experienced many different coffee shops and they are all the same, calm music, sit down places, with the same variety of coffee. I have found a shop that is different, it’s now my favorite place to go for coffee. It just so happens to be Dutch Bros Coffee.

-To consistently provide our customers with impeccable service by demonstrating warmth, graciousness, efficiency, knowledge, professionalism and integrity in our work.

Starbucks mission is a visionary statement that outlines the company’s objectives as follows: “to inspire and nurture the human spirit – one

When you first arrive at a Dutch Bros. Coffee Company location, it is usually slightly overwhelming, especially if you are used to the typical coffee shop atmosphere; a cozy indoor place to sit in peace and quiet while you sip your preferred drink. The line of cars at the drive-thru only coffee shop is typically long, since it is such a popular place, and the initial thought is that you will encounter a long wait, annoyed employees, and thoughtlessly made drinks. What else could you expect with such a small building and a multitude of customers waiting in line? Dutch Bros. is anything but your typical coffee shop, so all of these assumptions, while accurate for some places, are completely off base for this particular company. If you are looking for a coffee shop that is convenient, offers a high level of customer service, and has specialty items such as White Coffee, you need look no further than your local Dutch Bros coffee shop.

Many multinational corporations in the coffee industry have succeeded tremendously such as Starbucks. Each of these corporations has strategies that helped them continue to expand to nations of different cultures, ethnicities, governmental practices, and locations.

starbucks Corp., an international coffee and coffeehouse chain based in Seattle, Washington, has expanded rapidly since its opening in 1971. These outrageous success was due to its well-developed strategy vision which lay out the company's strategic course in developing and strengthening its business. Starbucks is a global corporation that sells authentic coffee in 30 countries, reporting revenues of nearly $5.1 billion in 2006. The main goal of Starbucks is to embrace diversity by applying the highest standards of excellence. Starbucks strives to perfect the relationship with the working class by making the service as fast as possible because they believe that every customer has their own personal rate. One

coffee in the world. The goal of Starbucks is to establish the company as the premier purveyor of the finest coffee in the world while maintaining the organization’s uncompromising principles. In addition, Starbucks wants to develop its brand beyond being the preferred outlet from which to purchase coffee to becoming the preferred consumer brand.

The mission for its customers is to promise. Managers firmly believe that sellers should have a good relationship with their customers, and always put their customers in the first place. The mission for its stores is to have sense of home. Hopefully, stores can help customers get out of their busy world, and relax for a moment with friends. The mission for its neighborhood is to lead with responsibility. Having a good connection with the neighbors benefits the partners, the customers, and the community. The mission for its shareholders is meeting profitable. The success of a company is due to its shareholders. “To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Our Starbucks Mission Statement). One person represents people; one cup represents Starbucks; one neighborhood represents friend. Starbucks brings people a feeling of connection.

Starbucks advertises two essential mission statements. First and foremost, it strives to “establish [ourselves] as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while [we] grow(s).” (Starbucks) Reflective of its mission, Starbucks bases its strategic campaign and communications on six indispensable philosophies; structuring a pleasant work environment in which employees are treated with “respect and dignity,” incorporating diversity in all business aspects, purchasing, roasting and delivering fresh coffee, retaining satisfied customers, giving back to the community and environment, and developing

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.

Mr. Coffee is best known for pioneering and leading the market in the automatic drip coffeemakers. The brand was established in 1968 by Vincent Marotta and Samuel Glazer and was then part of the North American Systems, Inc.

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

Because of the Netherlands’ geographic advantage, Starbucks has set up a brewing plant and distribution center in Amsterdam in 2002 distributing coffee beans in the region of Europe. A headquarter is also set up is Amsterdam to take in charge of its European market. Interestingly enough, no single Starbucks store was opened in the Netherlands until mid 2007. From the 3rd quarter of 2007, finally two Starbucks stores opened—the first one is in Hilversum inside the Nike HQ, and the second one is in Terminal 1 at Amsterdam Schiphol Airport (European departures). However, only a Nike employee can buy a drink in Hilversum, and in order to buy a drink at Schiphol Airport, customers would need to have a flight ticket to a destination in Europe. In the year-end of 2007, Starbucks again opened two more stores at Schiphol Airport but were before the customs, so that customers would not have to buy an airplane ticket to taste the Starbucks coffee.

While the leading drinks in 2004 were espresso-based beverages with sales averaging $50,395 per store, drip-brewed coffee beverages – which Expresso Espresso does not offer – came in second at $33,336 per store. It is understandable that Todd insists on providing quality products, but refusing to add drip-coffee beverages to his menu is the equivalent of refusing to cater to his customers’ needs. Unlike any of the local competitors, Expresso Espresso and the eventual Starbucks are the only Mobile coffee shops that offer a drive-through service. The drive-through contributes to 40 percent of Expresso Espresso’s total revenues, so needless to say, it’s a very important contributor to the business. If Todd hopes to stand a chance against Starbucks, his biggest competition, he will need to add drip-coffee beverages to his menu. Otherwise, it will be just as easy for a customer to drive off 400 feet east to Starbucks and request a drip coffee there instead.

Research showed that 54% of the Americans over the age of 18 drink coffee everyday and 62% of the regular coffee was purchased from a coffee shop, rather than homemade. For corporation coffee house chain, Dunkin’ Donuts is developing very well in home base country and has its chains everywhere including Asia. That is why it is chosen to study within this industry for its financial performance.