a. Industry Background
Coffee is an extremely popular beverage worldwide and has a market that is segmented into three categories: growers, roasters, and retailers. Aside from oil, coffee is the most popular item in the world. South America has been ranked as the #1 coffee producing region in the world. The top producer in that region is Brazil. 50% of people aged 18-24 in the U.S. would consider themselves to be coffee drinkers. Out of all American coffee drinkers the amount consumed is 1.96 cups of coffee per day, and 87% of these people typically drink their cup of coffee at home. Retail sales of coffee has amounted to $5.17 billion in the United States. 58% of people reported that they typically drink coffee because they need to wake up. “Coffee-related economic activity comprises approximately 1.6% of the total U.S. gross domestic product” and the coffee industry alone provides jobs for over 1.5 million people.
Duncan, Eric. “Topic: Coffee Market.” Www.statista.com, Statista, 2017, www.statista.com/topics/1248/coffee-market/.
NCAUSA. “The Economic Impact of the Coffee Industry.” NCA - National Coffee Association USA - Est. 1911, NCAUSA, 2017, www.ncausa.org/Industry-Resources/Economic-Impact.
Lombardo, Jessica. "Starbucks Coffee SWOT Analysis." Panmore Institute. Panmore Institute, 31 Jan. 2017. Web. 12 Feb. 2017.
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According to statistics, Finland is the country with the highest per capita consumption of coffee, and China is the lowest one, but in Finland there are nearly five million residents only, which means Finland will consume a million bags of coffee every year, but the 1.3 billion residents of China will provide approximately 200 million potential coffee consumers, and this will make China becomes a major coffee market. On the other hand, under the same culture background, compare to Japan and Korea, Chinese average annual per capita consumption is only around 20 Cups, but this also means Chinese consumer coffee market has a big room for future growth.
For specialty coffee beverage services, including coffee, espresso, tea, chai and granite the leading drinks in 2004 were espresso-based beverages with
In the US, specialty coffee is a $5-billion industry with a 20% growth rate (House, 2013)
Starbucks is a “premier roaster, marketer and retailer of specialty coffee” (Marketline 2012). This company is globally recognized because of their vast amount of stores, consisting of more than 17,000 retail stores in over 55 countries. Most retail stores are in highly populated areas, like “downtown and suburban centers, office buildings, university campuses and in select rural and off-highway locations” (Marketline 2012).
External Environmental Analysis of Starbucks and the Coffee Industry Harold Brown Strategic Management March 3, 2011
Coffee, the bean we love. To many it is known as the magic elixir, brain juice, or nectar of the gods, while others see it as the devil in a cup. America is a country that is obsessed with its coffee, now more than ever before. Although coffee has spanned generations, the craze did not exist like it does today. According to anthropologist William Roseberry of UBC, coffee was on the decline in the 1960’s and hit an all time low in the 90’s with only half the country drinking about a cup a day (D’Costa). However, with coffee being the world’s most commonly traded commodity, second to crude oil, much money is at stake when people stop drinking it. Thus the coffee empire was rebuilt, coffee revamped, and redefined to suit the needs of the “me
People love to drink coffee. Coffee shops, independently owned or chains are every corner. Statistics show that people are taking more coffee every day. It is a very profitable business.
Peet 's Coffee and Tea is a well-known and loved coffee shop with three stores here in Colorado. Although the prices and work space isn 't the best they offer great, quick drinks served by friendly employees. The store is a place for a comforting, warm place to sit. Peet 's Coffee was started by Alfred Peet in 1966 and his coffee was unlike any other coffee shop. He brewed in small amounts, always had fresh beans, a great quality, and a dark roast. This all produced a coffee that was rich and complex, and still is today.
All the stores of The Coffee Bean & Tea Leaf were located at high traffic, high visibility locations in each market. The market entry strategies use by the coffee shop in managing their foreign franchisees when expanding into Asia including master franchising and company owned-stores. A master franchise is a person or entity that provides services to franchisees in a specified territory, typically a major market, geographical region or even one or more countries. The marketing approach is essential to gain a competitive advantage in the foreign market. The construct included market entry, site location, and market positioning. The reason
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
Statistics show that over half of the American population consumes coffee on a daily basis. You may drink coffee hot, cold, mixed, or even in a frappuccino. Individuals are able to make coffee at home, or buy it on the go. Coffee provides people with caffeine, which ultimately gives energy for hardworking people all around the world. The main focus for this paper will cover the following topics, with coffee as the basis: causes for shifts in supply and demand, how coffee supply and demand influence price, quantity,
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.
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.
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.
The purpose of this project is to identify the retailing techniques, processes, systems and practices used by Coffee Island which may not be visible to the regular customer in order to increase its profits. This project will begin by presenting the company and how it operates in the Greek and International market but it will specialize on its operations in Greece. The next step after introducing the company will be to analyze Coffee Island retailing strategy and its retailing mix. In order to attain information about both the retailing strategy and retailing mix an interview was conducted with the store manager of “Coffee Island” Alimou Mr. Theodore Tziaros. The specific store is a franchise store so pieces of information about certain systems, practices, processes and techniques may differ from those that the company officially uses.