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Essay on the development of the coffee industry
Essay on the development of the coffee industry
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America runs on Dunkin.” – Dunkin’ Donuts It’s impeccable how much impact a cup of coffee has on society. After all, it is supposedly what keeps America running every day. But, it’s not just one cup of coffee. It’s a series of excellent products, positive experiences, consistency, great service, affordable prices, location accessibility and more that help Dunkin’ Donuts provide 40 countries with coffee and its side-kick of donuts (Dunkin' Donuts, 2014). As a low-cost consumer good, coffee providers have some strong competition like Starbucks, McDonald’s and Tim Hortons (Hawley, J., 2015). The coffee industry is so diverse that competition for brand-name coffee is a constant battle. Plus there are various producers and styles of coffee around the world, like Cuban coffee, French press coffee, American specialty coffee drinks and more, not to mention local coffee shop competition as well. Competition is …show more content…
Location: 11,300+ stores in 40 countries (Dunkin' Donuts, 2014)
Demographic Age: All ages (families, students, working class, elderly)
Social class: middle class, affordable for lower class
Income: All ranges, lower-middle income
Gender: Not geared towards a certain gender
Race and ethnicity: Many cultures, expanded internationally, room for growth
Occupation: student, working class, retired, parents/families
Psychographic Activities: people who work, pursuing education, traveling or need boost of energy
Interests: Coffee-fanatic, donut-fan
Motivation: need energy and caffeine fast, quick service
Behavioral Benefits: quick service, efficient, good for on-the-go people, additional items for purchase, family-friendly, open early/open late/some 24 hours, frequent promotions
Usage patterns: more coffee drinkers in the morning, caffeine pick-me-up, tourists, businesses (morning meetings)
Target
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.
Wandering in Seattle, you can see a lot of people holding a cup in their hands. What are they all drinking? Coffee! The smell of coffee may represent one of the Seattle’s tempting scent. People in Seattle have a great fancy of coffee. It might because of the rainy days in Seattle, coffee might be seen as an element to enliven the dank life. Also, it might because people here are really relaxed. Coffee has already entered into the spirit of Seattle. Coffee shops scatter in every corner of Seattle. People always like to bring magazines, newspapers, and laptops there for reading, chatting, surfing the internet, and working. Enjoying the wonderful atmosphere in coffee shops after the busy work is a wonderful way for people to relax themselves. The coffee culture has promoted economic consumption level in Seattle. The annual coffee consumption in Seattle is huge, and Seattle is the origin of the world’s largest coffee shop chain, Starbucks. It was first opened in Seattle in 1971 with an invisible shop in the Pike Place. But nowadays, Starbuck owns more than 6000 branches all over the worl...
Drinking coffee has been a popular tradition for many years and will always remain a timeless convention. For coffee consumers, that first sip of caffeine in the morning is the highlight of their day, the boost they need to keep going, or the simple pleasure of enjoying a moment of peace. Coffee can be made with several different devices, comes in many different flavors, and can be enjoyed almost anywhere. Despite the various options offered by coffee companies, there is one thing that remains common among users – many are dependent on this addictive brew. Dependency is important for companies when it comes to their product because it produces consistent sales. Keurig Green Mountain not only produces coffee which is already a reliant product
Starbucks and Dunkin Donuts are two similar companies, and have two similar products, but took two different paths to advertisement based on different company mottos and ideals. It is clear that both companies have excelled in the market and have many similarities and differences due to their marketing advertisements. In the end, neither advertisement was better than the other, because they both produced an appeal to their chosen customer base which they initially intended, thus pushing sales through the roof with both measures. Starbucks versus Dunkin Donuts does not really exist. They
Foreign policy with foreign nations that host the Starbucks brand. Import and export tax is an expenditure that may and can become costly and profits can be lost. Other companies like McDonalds, Dunkin Donuts, and the Coffee Beanery provide consumers with an ambient environment and some specialty coffee flavors. Proximity may be the only thing required for the consumer to select the services of the rival coffee dispensing businesses.
One of its biggest strengths is it is one of the top coffee companies in the world. Dunkin Donuts has built a strong brand for itself. The company has over 1000 selections of doughnuts, and its stores are a perfect place for having breakfast and coffee. They have worldwide franchisees, totaling to more than 10,000 locations across 32 countries (Marketing Coach). Dunkin’ Donuts uses the fixed price but yields more which lets it to sell at a lower price because fixed costs are spread over a larger number of components. Dunkin Donuts has standardizations for each location so where ever the customer goes they can expect the same thing. They have control over the supply chain which contributes to lower costs. This is achieved by bulk buying to quantity markdowns, talking suppliers down on price, establishing competitive bidding for agreements, and working with sellers to keep inventories low. Dunkin Donuts has a strong customer loyalty rate, which it cost less to keep customers than to gain new ones. Dunkin has good partnerships with JetBlue, Smuckers, and Keurig. Dunkin does a lot of charity work like feeding the hungry, supporting children’s health, and making sure that neighborhoods are safe and secure ("Brand Power"). Dunkin Donuts has recently launched a green campaign that will building green certified program designed to help franchisees build sustainable, energy-efficient
"America runs on Dunkin". This is a familiar phrase across all of America and it could
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...
...healthy environment, economy, or political state is left up to those who buy and distribute coffee. While the model that Starbucks follows to come by and sell their coffee may not be perfect it is at least a step in the right direction.
The first Dunkin Donuts was opened in 1950 by founder Mr. Bill Rosenburg in Quincy, MA. Five years later the very first franchised branch was licensed. Sixty years later, under “Dunkin Brands Inc.”, there are now over 10,000 stores including more than 7,000 franchised locations, all in 36 of the United States. There are over 3,000 Dunkin stores internationally in 32 countries other than the United States. Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Dunkin Brands is head quartered in Canton, MA (Company Snapshot).
In the United States, coffee is the second largest import (Roosevelt, 2004). Furthermore, the United States, consumes one-fifth of all the worlds¡¦ coffee (Global Exchange, 2004). The present industry is expanding. It is estimated that North America¡¦s sector will reach saturation levels within 5 year (Datamonitor. n.d.). According to National Coffee Association (NCA), 8 out of 10 Americans consume coffee. In addition, it is estimated that half of the American population drinks coffee daily. The international market remains highly competitive. It is estimated that 3,300 cups of coffee are consumed every second of the day worldwide (Ecomall, n.d.). The latest trends included dual drinkers, an increase in senior citizens...
Koehn, N.F., Besharov, M.A., & Miller, K. (2008). Starbucks Coffee Company in the 21st Century. [Case study]. Boston, MA: Harvard Business School Publishing.
Starbucks is an international coffee house and it was created in 1971 when they opened the first store in Seattle, Newcastle. Currently, they own 21,000 stores in 65 different countries of the world, and their passion for the great coffee, excellent service and community interaction exceeds cultures and languages (Starbucks, 2014). This company is the number 1 brand coffeehouse chain in the world due to the best roaster, marketer and seller of speciality coffee. Its main slogan: “Our mission: to inspire and nurture the human spirit – one person, one cup and one neighbourhood at a time” (Jurevicius, 2013).
Krispy Kreme’s mission statement is [verbatim]: “to touch and enhance lives through the joy that is Krispy Kreme.” The vision is to be the worldwide leader in sharing delicious tastes and creating joyful memories.” Dunkin-Donuts mission [verbatim] is: “to Increase Customer Satisfaction and Loyalty by providing the Fastest and most Accurate Service, the Freshest Products, in the Friendliest and Cleanest Environment. We accomplish this through teamwork, communication, honesty, fun and sharing experiences as we all grow
According to IBIS World Report the major players in the US coffee and snacks retail market are Starbucks and Dunkin’ Brands at 36.7% and 24.6% market share respectively with other competitors occupying the remaining market share of 38.7%. The industry is at the mature stage of its life cycle, has low barriers to entry and intense competition and rivalry between the players. The regulation and technological change within the industry is medium (IBIS world report)