Porter's Model - Starbucks

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).

Starbucks main competitors are quick-service restaurant and specialty coffee shops. They are serving the same or similar core product as what Starbucks providing to their customer.

Marketing is a competitive field that companies outdo each other to make a profit. Café Campesino is a retail-based company that assists farmers to sell their products in a fair and profitable trade. The American coffee industry is that which is on growth with more than 64% of American drinks an average of a cup of coffee a day. The coffee industry just like other agricultural products is affected by a host of factors from climatic variations to fluctuation of prices. This paper seeks to look at Café Campesino's marketing plan in the coffee industry. The paper appreciates the effect

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.

The specialty coffee market is intensely competitive, including with respect to product quality, innovation, service, convenience, and price, and we face significant and increasing competition in all these areas in each of our channels and markets.

To pick our pricing strategy we conducted face-to-face surveys with potential customers. In total, we surveyed over one hundred students and we asked questions about flavors and pricing. For pricing, we asked specific questions about how much they pay for drinks at our competitors, Starbucks and Common Grounds, to help us gage a starting price. In the beginning, we found that people tend to spend upwards of five dollars per drink.

The analysis section will require me to evaluate each of the strategic options that we might have. I am going to layout the pros and cons for: heavy users, all energy drink users and the adult segment, as shown below in the appendices as figure 1-1. Single-serve energy beverage drink retail prices have generally settled at roughly $2.00 per single-serve package, regardless of size. As a consequence, larger single-serve packages are priced lower on a per-ounce basis than smaller packages. Shown in figure 1-2, it shows that our drink Rush NRG will need to come down a little bit in prices to be competitive and make margins meet.

quality of the products connected with a fair price attracts many coffee lovers. Starbucks also

We decided to do premium iced coffee with extras added to enhance flavour and uniqueness. With a unique product, and the ability for a simple transaction, my group had a competitive advantage over different groups with a similar product. My group’s product was more convenient as it was easily accessible, and better priced. In order to come up with a fair price that made my group’s product stand out, we benchmarked the product to other successful, big name corporations, like Starbucks and Tim Horton’s to make sure that our product was the best ‘bang for your buck.’

In recent decades, coffee has flooded the market with an abundance of flavors as specialty coffee shops arose on almost every street corner. There used to be minimal choices in flavors such as dark roast or light roast, but now there is almost every flavor imaginable. These specialty flavors have been tailored for niche markets such as women and even young children. After visiting three different market tiers of coffee, I was amazed at vast variety, the differences in price and the various countries of origin. The low price market I visited was King Soopers, the mid price market was Starbucks Coffee, and the high price market was Boxcar Coffee.

To identify and define Brew 4 U’s competitive advantage, Porter’s Five Forces model will be used to analysis Brew 4 U’s position.

The major competitors will be the other coffee shops with special mini cinema service. Other indirect competitors could be expanded to include any other kind of retail coffee shops, as well as famous café or milk tea chain. To better understand our competitors, we analyze the strengths and weaknesses of the major competitor in the market.

Business can at times be challenging to the owners because of varied reasons. One major challenge the Donkey Coffee is facing is the issue of higher prices. Price objections can take any business off guard more so when the owner thought that the sales were already closed. Most people look at three elements of a product before they can decide to purchase it. The three elements are price of the product, quality and value. The elements are arranged from the highest influence which is the price. It may sound funny that many consumers do not consider the quality and value of most products at large but rather consider the price. Before checking on the content of a product, consumers first check the price. Therefore, many products may

There were many substitutes to alternative beverages, including any other type of beverage (e.g., tea, soft drinks, fruit juices, and bottled water) and tap water. Students are likely to suggest that other beverages represent a strong competitive force since there are many types of beverages that can satisfy one’s thirst. Consumers were familiar with substitute beverages and likely consumed substitute beverages on a regular basis. In addition, and most substitute beverages sell at price pointss much lower than alternative beverages, which leads to switching if consumer income is limited.

Coffee to Cocktails bar serves Starbucks coffee and tea and a variety of alcohol beverages.