Swot Analysis Of Canned Coffee Product Development

An online retailer of coffee beans maintains a long list of unique coffee flavors. The company purchases beans from a number of suppliers; however, each specific flavor of coffee is purchased from only a single supplier. Many of the customers are repeat purchasers and typically order at least five flavors of beans in each order.

Almost everyone drinks coffee. Most people view it as part of their basic needs. It is normally the first to be consumed whenever a day starts. It is commonly believed that a cup of coffee makes someone brighter and so able to perform his or her duties actively. This is therefore my chosen product. The following sections describes the path the product takes from the producer to reach me as well as to another consumer in another country which will be Brazil in this case.

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.

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.

A number of analytical techniques can be used to evaluate a company’s environment. Starbucks will be analyzed using the following marketing techniques:

Every human being having to start the morning with a cup of coffee or tea with hot and delicious breakfast, and mid-morning or afternoon. The great hot coffee or tea is sharing with family, friends and co-workers. Some people are like to drink coffees or teas as taste bold to medium and mild with any types of products. In 19th centuries to now, there are so many food businesses open in the market such as coffee stores, food restaurants, retail grocery stores and food industries. There are different country’s coffees or teas with flavors find in the coffee or cafe stores. The coffee businesses are open such as Starbucks coffee, Dunkin Donut, McDonald, Panera, Caribou café etc. All these coffee businesses have the own corporate stores,

Starbucks has created a competitive advantage with their product quality by setting themselves apart from their competitors. “The Company has stayed with the upper-scale of the coffee market, competing on comfort rather than convenience, which is the case with its closest competitors, McDonald’s and Dunkin Donuts” (Mourdoukoutas, Panos). Consumers believe they are receiving a better product and experience when they purchase from a Starbucks as opposed to another large food service company that may sell coffee.

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).

Cameron’s Coffee was founded in 1978 by Jim Cameron and was later on purchased by Jim Kirkpatrick in 1999. The company specializes in ‘…premium flavored coffees, teas and powdered cocoa and cappuccino mixes (Petersen).’ Even though the coffee market is almost saturated, Cameron is looking to expand its operations not only in the United States, but in Europe and other continents. The company currently has a great advantage in this tight market, due to its dedication to quality. But in order to increase the probability for success, Cameron’s Coffee will need to expand its knowledge and involvement in technology and communication.

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?

Relative Performance – Varies (different dimensions for which specialty coffee is patronized by the consumers, these needs can be fulfilled by different substitutes – for e.g. tea can compete on flavors and caffeine and pubs can offer the drinking and socializing experience.)

The second major flaw in the coffee taste studies is the existence of external variables. It is evident that the first and third studies had underlying variables that may have significantly affected their outcomes. The first study notes that “the author of this study personally purchased coffee to go at four places, took them to his office, tasted them, made notes and drew conclusions” (pg. 63). This indicates a major flaw of this particular study because the time frames for which each cup of coffee was obtained and then consumed are inconsistent.

There was an emergence of different consumption patterns and distinct brand perceptions. Satisfying both customer segments was tough as their needs contradicted each other. In 2002, its customer base changes. The brand was accessible through various non-coffee products and places. The service metrics were contradictory to each other. A SWOt analysis is performed.

I would like to propose a marketing plan for opening a coffee shop in the city of Moscow. Over the past two or three years, a coffee shop in Russia managed to grow in a socio-cultural phenomenon: at once there was like a house of cards, the Soviet culture of consumption of coffee.

The consumer market is segmented according to age as well as preferences. People working in offices located close to the coffee bar and on sophisticated teenagers. Younger consumers are often willing to spend more on fancy coffee blends and signature drinks; the health-conscious would be willing to pay extra for “healthier” substitutes such as organic products; My market research shows that these are the customer groups that are most likely to buy coffee products. Since coffee consumption is universal across different income categories and mostly depends on the level of higher education.