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.
SITUATION ANALYSIS Company Starbucks is acclaimed for its superior value proposition in the early 1990’s by creating an experience around the consumption of coffee, a ‘third place’. The brand is positioned to offer the highest quality coffee, close customer intimacy, and warm atmosphere or ambience.
• As more and more coffee shops are Existing Competitor 2’s strengths and weaknesses: (CBD Café) CBD Café strengths CBD Café weakness • Highly skillful staffs and staff loyalty rates. • Flexible product and service prices applied due to the different business seasons and timeslots. • The business is fully dependent on the sole and single supplier • Increasing amount of leasing costs and it is a huge financial burden for the company
Bazaar Arts Ceramics Technical Requirements Report (website) Prepared by: Ian Saunders 1100614611 Submission Date 10/11/12 Executive Summary This purpose of this report is to provide an analysis of the business and user requirements for the Bazaar Ceramics website. Bazaar Ceramics has been operating for 20 years and have grown to a point where they need to reach a wider audience
1) The Problem(s)/Opportunities/IssuesShould Roots Canada Expand to the EU market?There are many possible outcomes for this measure if Roots Canada does expand in the European Union (EU) some of the problems and opportunities, which can state the desired outcome. A major problem concerning the EU is the competition laws they
The right aviation assets are critical to the Army's ability to maintain battlefield mobility. Especially important are the maintenance and repair of highly complex aircraft. Aviation maintenance unit play an important role in the readiness of aircrafts whether in peacetime or combat operations.
Running head: CASE STUDY: SECOND CUP Case Study: Second Cup Audrey Fortin, Joshua Hartson, Ashley Jardine, & Andie Walker Turner St. Lawrence College Marketing Principles Kip Tuckwell November 28th, 2011 Case Study: Second Cup Second Cup’s strengths are: * They offer a unique coffee experience. Second Cup focuses on the atmosphere of their shops and pays a great attention to detail. Unlike their independent counterparts, Second Cup has the resources to create a universal ambiance throughout all of their retail stores. Their stores are very well designed, but have more of an exclusive feel than other coffee shops.
1. Easy to Navigate The website is easy to navigate as the company divides all the merchandise into separate departments such as:
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
Dependent upon equity & debt financing (p20). 5. Effectively leveraging its brand-name and size (p20). Opportunities 1. Reinforcing its brand-image (p8). 2. Global expansion. a. Higher coffee consumption in foreign markets than in the U.S. b. Already has contact with foreign exporters. 3. Marketing in higher echelon restaurants and day-part chains (p16). 4. “Concretely defining its brand-image” (p20). Threats – 1. Adequate number of “A” sites in “A” markets nationally (p13). 2. Individual and small chain competitors overshadowing Starbucks’ brand in local markets. Issue Analysis 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?
7. Double-Double Source: Pixabay This is a coffee with two sugars, and two creams. You’ll most likely hear this at Tim Horton’s, one of Canada’s most popular coffee chains. Tim Horton’s is also known for its doughnuts. Canadians seem to have a bit of an obsession with doughnuts, myself included, as we have the most doughnut shops per capita. So when you stop by Timmy’s (Tim Hortons), be sure to try a doughnut with your double-double. Or if you’re like me and you hate coffee, have a hot chocolate instead.
Summary 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.
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 provide a large in store seating with free wi fi and a take-out service which only a few retail shops offer. The main target customers for Starbucks are office workers, with enough income, whom are able to afford the high prices of their products (Gaudio, 2003). The company has worked hard to establish itself as the brand leader with its branding as the most frequently drank coffee and noticeable brand logo. Introduction of promotions like the Starbucks Card, allows a more convenient way for a person to pay for your drinks and earn rewards for your purchase (Starbucks Coffee Company, 2011). Furthermore, in‐store promotions accompanied by new products and amenities like free internet use are all strategies that Starbucks use to maintain their position in the market (Vasudha, 2011).
NEW MARKET BACKGROUND Economic Background The openness of the 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.