Because, they focus in one market it was either to have broad or narrow market coverage. Also, the competitive advantage was either to have a low cost or differentiating strategy. While Starbucks can implement an ideal strategy, which is best cost provider strategy that give Starbucks the best of the two the affordable prices and the quality differentiation. Starbucks should not advertise cause advertising is costly. Advertising might increase Starbucks’s revenues but it will increase Starbucks’s costs for sure.
This plan is a much safer choice, as we will not be expanding into a new foreign country. Our first goal that we need to satisfy is profit increase. The one new addition that plan two brings is the expansion into Canada, which will cost upwards of $140,000,000. If we expand into Canada, we have no certainty that we will succeed in a new country, as there is already coffee competition that Canadians like more. In addition, by expanding into Canada, it would take at least a year for us to generate enough publicity and presence to gain a major profit.
The company had to raise their price in drinks in order to compensate the increase in price of their products. 2) The company should change advertising channels. Most of the company’s advertisement is by word of mouth because customers are very content with the product or service. VIII. Conclusion: Currently Starbucks Coffee Corporation is a public company that has been highly profitable while maintaining international market share.
Not only will these two pipelines transport about 520,000 barrels of oil to a marine terminal in Kitimat, but they will also create jobs, and contribute to the gross domestic product and tax revenue. In addition, the pipeline will create economic opportunities, and a bright future ahead for all. As one of the few countries that produce oil, Canada will be able to increase international production and meet global demand. Many believe the oil should be sold on the open market to generate wealth for Canadians instead of leaving the oil untapped underground, where it benefits no one. The pipeline is the key to the world market.
In fact, it was predicted that this industry has a potential of growing over the next 10 years (Ofek & Norris, 2013). This was due to the recorded trends of coffee consumption as well as opportunities presented by emerging markets. However, despite the growth, the only problem that remained for the industry managers and leaders is the issue of non-recyclable coffee cups. The fact that the coffee cups could not be recycled meant that more people would be consuming coffee as the industry con... ... middle of paper ... ...mers. In the case at hand, it is recommended that the management of coffee companies should strive to make reusable travel mugs that will largely solve the environmental problem and satisfy consumer need.
Exotic Juices, and snacks served with the same service could add a nice margin to the bottom line. In addition, the ability to offer a drive through service for the consumer that loves fine coffee but does not have the time to stop and visit should be on our “trial” market plan for the next few years. Our large purchasing power allows us the opportunity to consolidate our purchases and create futures contracts for a better price. This can help sustain our margins in a weaker economy, or hedge against a great increase in coffee purchases driving the demand and price of beans up. Our largest opportunity for growth lies in the emerging economies of China, India, and Thailand.
Kraft Foods is the largest confectionery, food, and beverage corporation headquartered in the United States and the second largest in the world, marketing a vast number of brands in over 155 countries (NYSE, 2010). A big reason Kraft Foods has been so successful over the years is that they are always trying to remain current and creative when they market their products, and really have developed a firm grasp on their target markets. In 2008 Kraft changed the way companies will market their products, when they introduced their new Brand of instant coffee, and created a platform to connect themselves with their consumer at the point of purchase, all the while showing the world the future of marketing by taking both promotional ideas mobile (Wirelessfederation, 2010). When Kraft Foods, launched Jacobs 3in1/2in1 instant coffee, they were introducing a product into an already very competitive and dense instant coffee market. Therefore, Kraft had to find a cheep and affective way to get their product samples out to the current market and a target market that would be open to change and innovation and act as catalysts to promote their new product (primarily young coffee drinkers).
It was created by the merger of Maple Leaf Mills Limited and Canada Packers Inc. in 1991, and these companies consisted of subsidiaries. By providing the highest quality, nutritious and innovative products to excess customers’ needs, Maple Leaf Foods is pursuing its vision to become globally admired food processing firm. It was gotten honor awards such as “Product of the Year 2011”; “Canada’s 10 most admired corporate culture”; “Best New Product Award”; “Canadian Family 2010 Food Awards”. Its total asset of 2013 was $ 3,599,092, compared with $ 3,243,696 in 2012. Net earnings of this enterprise were $ 512,163 in 2013, compared with $ 96,562 in 2012.
Cathy Siskind-Kelly and Rob Kelly founded Black Fly Beverage Co. to meet the growing demand for premium coolers in the Ontario market. They wanted to differentiate their product from other spirit coolers by using natural ingredients and chemical free sweeteners, economically friendly packaging, and a brand name that represented northern Canadians. Furthermore, the final product would be less saccharine than competitors. Black Fly established a micro-distillery in the heart of downtown London, Ontario for maximum exposure and promotional opportunities, unlike many competing manufacturers due to the higher cost of real estate. To further capitalize on this competitive advantage, Black Fly partnered with a nearby sporting and special events arena to open a lounge in their facility that would market Black Fly products.
At that time, Schultz instituted retraining, sharing best practices, a renewed emphasis on product innovation and differentiation and other initiatives to elevate customers’ experience. Starbucks primary competitors, Dunkin Donuts and McDonalds, do not deliver the same type experience to their customers that Starbucks strives for. This is its area of differentiation Starbucks must work on maintaining and improving . Since Starbucks was able to establish these reforms when the economy was poor, it should have no trouble in its current financial position of constantly raising revenues to once again revive its brand.