Starbucks vs. Dunkin Donuts vs. McDonalds Coffee, one of the world’s most known beverages. Seen being drinking at work places, colleges, or in the convenience of your own home. There are a variety of companies that provide us the people with coffee. It can be your local market, bakeries, or even fast food places. 3 places that stand out and our known very well for supplying Americans with coffee is Starbucks, Dunkin Donuts, and McDonald’s. From their strategic advertising, deals, and even straight down to the design of their cups, they meet the definition of marketing. We will be examining these 3 companies using the marketing mix which consist of product, price, place, promotion and also cover value based marketing and see how these companies meet these definitions and how they satisfy their customers as well. …show more content…
As a customer you pay for what you get, meaning the money and time you put into these goods or service you seek to have the product you believe to be a good value and fulfill your needs, while also having quality service. Now that we have the definition we can show how these companies exhibit value based marketing. McDonalds, which was founded in 1955 is one of the world 's largest chain in fast food. Seen on television commercial, bulletin boards, newspaper, and even on your local bus. Their products consist of hamburgers, fries, nuggets, breakfast sandwiches, and drinks. They were not really recognized for coffee until they introduced their McCafes. McCafes are a variation a hot drinks, from espressos, smoothies, milkshakes, and lattes lattes. McDonald 's provides customers with deals of if make a purchase of 5 McCafes drinks you get 1 free in the app. With doing this you have now introduce customers to an app where they can also explore other McDonald products and get deals as well. This encourages customer to buy more products because of how affordable they
When people walk into a coffee shop the powerful aroma of coffee beans and delicacies fill their nostrils. The monotone walls and chestnut brown tables fill their sight. Soft hushed whispers heard above smooth jazz music fill their ears. Millions of people enter a coffee shop in the morning to function throughout the day. Amongst the shops where the coffee lovers go to, Dunkin Donuts and Starbucks are by far the most popular. Dunkin Donuts and Starbucks are two largest chains that specialize in coffee. They have many competing factors that compel customers to purchase coffee and food items at each place. Overall, Dunkin Donuts is less superior in its products, appearance, and services compared to Starbucks.
Starbucks is the world’s largest coffee roaster and retailer of specialty coffee in the world. We have enjoyed great dividend returns over the past 5 years, and our growth has been on the rise. We are currently saturating the US market, while the emerging markets of developing countries offer many possibilities for growth and increased revenues. In our US market we should look at offering more items on the menu that complement our long-standing tradition of pleasing our customers. 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.
Dunkin Donuts is one of the most recognizable names in the fast food industry. It dominates the Northeast market. One of its most popular slogans is “America runs on Dunkin”. Their prices are unbeatable for the quality of coffee; all the coffees are mostly under 3 dollars unlike their rival star bucks which can go over 5 dollars for a large coffee. Baskin-Robbins ice cream parlor has been around since the 1940’s and its 31 different ice cream flavors made it stick out. Another one of Dunkin Donuts strengths is brand loyalty. Most Dunkin Donuts customers are repeat, loyal customers. These customers value the convenience that Dunkin offers and the low prices that everyone can afford. These have drive-through stores which helps people get their food and coffee at a quick rate.
Starbucks Coffee, Tea, and Spice opened its first store in April 1971 in the Pike Place Market in Seattle, by owners who had a passion for dark-roasted coffee that was popular in Europe, but hard to find in the U.S. (Harrison et al., 2005; Venkatraman & Nelson, 2008). The company’s mission was to provide Seattle with the best access to dark-roasted coffee, and sought to educated customers about the product. As a matter of customer education and acceptance of the product, Starbucks grew and expanded into the successful domestic market it is today. Much of this success can be attributed to a focus on the total customer experience and s...
As it is demonstrated in the previous factor, the coffee purchasing strategy is quite important for the company’s development due to they must do big efforts in factors such as marketing with the objective to attract new customers, and the company must investigate carefully the market where it is operating to analyze their competitors and their different
Consumer motivations to branded coffee shops are most influenced by three factors which is past experience or familiarity, convenience of location or travel and friends or family or with friendly staff, high quality of coffee and food, good atmosphere and good reputation the most important aspects for branded coffee shops.
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).
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),
McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 118 countries serving 46 million customers each day. It is one of the most well-known and valuable brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which it does business. Problems Faced By McDonalds And The Public Opinion Of McDonalds For many years, McDonalds enjoyed worldwide success built on a few well-known, highly standard conditions. The company with the Golden Arches served a simple menu- hamburgers, French fries, and milkshakes or soft drinks. The food was priced low, its quality was consistent, and it was served speedily from establishments that all looked alike and were extremely clean. However in recent years, McDonalds has seen its growth rate slow down and its dominant market position slip. There are various reasons for this. The main reason is the several allegations made against them by environmentalist and health experts. These allegations are: Destruction Of Rain Forests McDonalds sells beef. Many beef suppliers get their beef from Central and South American countries. These cattle farms are usually placed on rainforest land that had been cut and cleared. The poor soil of the rainforest can only sustain life (grain for the cattle to fed upon) for up to a decade (although the mean is 2 years). The beef suppliers must move their farms every few years and consequently destroy more rainforest. Rarely does the forest re-grow, even if replanted. 70% of the moisture that makes a rainforest a "rain" forest originates from the transpiration of the leaves on the vegetation. Once that vegetation is removed for a few years and...
Starbucks is a major corporation that focus is on coffee beverages. In order to market effectively along with efficiently the right advertising method must be considered. A new advertisement will be presented and the means for its marketing will be examined. In order to keep the company profitable the pricing objective and strategy will be announced. Starbucks can use the strategy of integrate marketing communication to reach the maximum amount of consumers without spending the maximum amount of money.
McDonald’s McCafe, offers new products to the traditional menu of McDonalds. McCafe specializes in a variety of different types of coffee as well as smoothies, which attracts new customers that might not otherwise come to McDonalds for its burgers and fries, and gives McDonalds an edge over the competition by offering products that are different than the competition. McCafe is its own entity as well as it holds its own specific area in most McDonalds restaurants.
In 2002, unexpected findings of a market research showed problems regarding customer satisfaction and brand meaning for Starbucks customers. The situation was unacceptable for a company whose overall objective is to build the most recognized and respected brand in the world. Starbucks was supposed to represent a new and different place where any man would relax and enjoy quality time, alone or with others. But the market research showed that in the mind of the consumers, Starbucks brand is viewed as corporative, trying to expand endlessly and looking to make lots of money. This huge gap between customers' perception and Starbucks' values and goals called for immediate action.
The Marketing Mix of McDonald’s consists of the various elements in the marketing mix, which forms the core of the company’s marketing system, and hence helps achieve marketing objectives. The 4 P’s which are followed by McDonald’s are as follows:
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
Strategic management is the way of implementing different business strategies and plans to attain certain specific aims and objectives. It involves collection of decisions and different rules and policies that tend to define the results that are generated in the form of better business performance. For undertaking these activities, management should possess an in depth understanding and be able to assess the general and competitive external and internal business environment to take proper business decisions (Cornelis, 2010). McDonalds is an organization that offers a range of products and services in a very effective manner that makes it a market leader in providing fast food services all over the world. By enforcing suitable strategies, McDonalds can increase its level of sales and will also help in upgrading as well as sustaining the market by acquiring competitive advantage (Schoenberg, Collier and Bowman, 2013).