Costa Coffee , is a company that is founded in 1995 by an italian brothers (Sergio Costa & Bruno Costa) in England. They first started as a Coffee Bean wholesale business , catering to the needs of local cafes and coffee houses. With their Italian background and experience in mixed roasted coffee beans that Sergio learnt in Parma, Italy, The Costa brothers gradually established their own unique style of roasting coffee beans. They go through a low temperature , slowly roasting the coffee beans, so that the final product has a fragrant and bitter less taste. Shanghai And Beijing.
Today, Costa have stores all across the United Kingdom, and other retail stores also include Ottakar 's Waterstones Bookshop, WHSmith and Homebase stores , Marriott
Instead , the company should aim to introduce Coffee as a relaxing and common activity for the chinese population. The best way for the company to achieve this is to give the customers the impression that coffee is a part of their life , and this can be done by increasing more shops and advertisements in the community. However , it is very exhausting and time consuming for Costa Coffee to try and manage all the coffee chain outlets in China. And so , The master franchise program is introduced in the China region.
Costa Coffee have adapted to a master franchise rights program , in which Costa signs a franchising contract that hands over the control of franchising activities and rights in a specified territory/province to a person or an organisation. Costa is an ever-changing , highly competitive coffee industry leader , it not only has the status of industry leader , but also has a worldwide business network. In this industry that faces many challenges and opportunities , with extraordinary vigor and hopes to become a global organization but at the same time with many rooms for
Most coffee shops are operated at locations where population is dense and income is high. However, as a result, the rental prices are very high. Costa Coffee could consider opening new shops at bus stations / other busy intersections where rents are lower but traffic is big. The marketing strategy that will be followed to China is very significant since it also influence neighboring countries like South Korea which is also a new coffee consuming country. If Costa Coffee fails to change the public opinion of the highly expensive coffee , it will be a matter of time before the consequences will be similar to Taiwan and Hong Kong where there is a negative trend in coffee business growth.
In China , it is rather difficult for overseas corporations to introduce their business into the domestic China market , The government hold many restrictions to them such as limiting their capital investment and cash flow. The government tend to encourage local businesses to do well , and is afraid that international organisations will pose a threat to them. However , this is not specified in joint venture
The larger serving size of Great Cups of Coffee is perhaps the most apparent gage that will improve appeal for the company’s customers. Receiving extra of a proportionately quality product for a comparable price obviously works as an enticement for customers to prefer Great Cups more than the opposition. While customers identify with a better quality and superior taste with fresher coffee, Great Cups supports its effective model of serving coffee that has been roasted no more 72 hours ago and that is blended and ground right at the store. Great Cups also provides as an unintended marketing method community bulletin boards and assists with book club gatherings as well as
Tim’s Coffee Shoppe is a well established business that has been running as a sole proprietorship for over 30 years. The business needs to improve on its management strategy in order to perform optimally in its present environment. The purpose of this paper is to provide the owner Tim with suggested improvements on managing the human as well as financial resources of the coffee shop so as to remain competitive and increase profits. The Coffee house is conveniently located close to several metro stations, ensuring a steady flow of traffic. It is also situated near a University, presenting the business with a steady clientele of college students. The business is facing stiff competition from Queequeg’s coffee with 7 shops located near Tim’s. However, the restaurant seems able to hold on to its market share judging from the reported sales revenue of $ 400,000, and increasing sales. The Shoppe recently underwent a remodeling of its interiors and exteriors, and has purchased several new equipment including computers and a freezer. Tim’s is however facing challenges in staff management.
In this part we will show the coffee chain industry conditions in Canada, and analyze the coffee market structure to compare the several largest coffee chains, then analyze some significant data to check Tim Hortons’ operation situation.
Coffee is a growing part of people’s daily lives. Just before the 9-5 weekdays, and even during the 9-5, it is common for the working class to drink a cup of coffee. To support this accustomed part of our culture, it involves a complex supply chain that allows those coffee beans to turn into a cup that can be consumed. This paper is structured on how Starbucks, the top coffee supplier in the world, can supply its stores, from raw materials to manufacturing, right to the start of someone’s day.
“Coffee has become more than just a shot of caffeine. It 's a $30 billion-a-year national industry, a foodie fixation, an affordable luxury, a boost of disease-fighting antioxidants, a versatile ingredient, an intoxicating aroma and a beverage that brings people together.” Because of all these factors, Starbucks has a very diverse audience and numerous competitors in the industry. As of 2011, coffee shops have maintained an average growth rate of 7% a year, and Starbucks alone is the third most recognized restaurant chain in America. The specialty coffee industry will continue to grow because of the variety of drinks and the appeal of specialty coffee
Starbucks is one of the largest coffee franchises in the world. With over 26,000 stores in 64 countries, the company has the right to brag about this. One of the problems which Starbucks is currently being faced with is the brand being watered down by over expansion and a too diverse product mix. With McDonalds and Dunkin Donuts entering into the specialty coffee market, Starbucks needs to alter the path which it is going in order to remain competitive in this industry.
In terms of machinery or technological suppliers, suppliers to the restaurant industry enjoy moderate power, as suppliers are few. This applies to suppliers of coffee, latte and espresso machinery as well due to the small number of organizations servicing the industry. Due to their success in differentiating themselves as providers of premium coffee, Starbucks faces little bargaining power from their customers around the globe. However, a lesson from their entry into the Chinese market has been that an organization needs to clearly understand their target consumers and price their products accordingly to avoid demand challenges.
This case study revolves around Starbucks ability to launch an aggressive expansion in China, a coffee frontier steeped in nearly 5,000 years of tea, Starbucks location-scouting skills and marketing savvy will be put to the test. This case study involves three questions: 1) Should Starbucks continue its expansion in China? 2) Will the Chinese be persuaded to drink coffee instead of tea after 5000 years of no consumption of coffee? 3) Will Starbucks current marketing plan work in China without advertising?
Coffee is a worldwide cash crop of which demand has exponentially increased over the years. “Coffee is (after oil) the world’s second most important traded commodity” (Cleaver 61). Competing coffee brewing companies wage war on offering the freshest, best tasting coffee the market has to offer. With such stiff competition there must be enough coffee beans deemed to be good enough in quality to supply the increasing demand. Starbucks can be considered one of today’s top competitors if not thee top coffee manufacturer presently in business. This successful company has had a huge impact on the coffee industry as well as the world. They have gone through great length to provide consumers with an excellent product as well as create a legacy that shows how to best go about running a massive corporation while keeping the environment clean and healthy.
Many people start his or her day with a cup of coffee. Coffee franchisees are growing around the world with coffee being one of the most popular drinks. A Colombia franchisee Juan Valdez is a growing franchisee in the United States specializing in coffee.
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
Caf? Expresso, as the first mover in the coffeehouse marketplace, which has expanded quickly and become one of the ?big three? players in the global coffee shops chain. However, recently this company is continuously facing a lot of problems in terms of its staff, easy-copied business model and product range, resulting this company lost its leading position to the number three. Therefore, its adjusted visionary goal is ?return Caf? Expresso to the number one position in the marketplace? (Beardwell, 2010). To achieve this goal, Caf? Expresso identifies ?the coffee drinking experience? is significant to achieve competitive advantage and customer value-added, which was delivered through three key elements (graph 1),
One of the main problems that Starbucks is facing at the present time is the ability to maintain national competitive advantage (Monash South Africa, 2014). Due to their local demand conditions, Starbucks tries to satisfy all customers by trying “to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time” (Starbucks Corporation, 2014). Local demand conditons consist of a company trying satisfy needs of their closest customers and expanding their competitive advantage by upgrading their strategic management policies (Monash South Africa, 2014).
Starbucks has identified high value opportunity in China, India, Brazil and Japan. The large expansion opportunity of twelve billion in China alone is enough to drive Starbucks to expand globally. The organization has planned to double its footprint to 3000 stores in China by 2019 ("Starbucks Details Five-Year Plan to Accelerate Profitable Growth", 2014). Starbucks realizes that eventually there will be a diminishing return on their existing market within the US due to market maturity and there are only two ways to expand through diversification in their offerings and entering new markets. Given the international opportunity for growth and expansive tea market in Asia, the company will enjoy the benefits of the growth opportunity. Management’s decision to continue to grow globally is a driving force that has yielded