Study Document
Coffee Industry Analysis Coffee Retailing Thesis
S. versus the loyalty to Dietrich's Coffee in Southern California. Differentiating on specific types and flavors of drinks, smaller coffee shops and larger, more globalized chains seek to define their brand and unique value proposition primarily through the use of unique drinks. Despite these efforts however, new product development is a weakness in this industry. The lack of new product development expertise often leads coffee retailers to offer enhanced services including WiFi internet access (Clark, 19-20). In summary the customer for retail coffee is changing to be more discerning regarding service while also being loyal not so much on price but on the total in-store experience.
Strong Dependence on the Supply Chain for Profits
The entire retail coffee industry is highly dependent on the very volatile commodity of green coffee beans, which routinely have tariffs imposed on their export by South American nations. In addition to this dependency on coffee beans, the industry is highly dependent on the price of dairy products and milk specifically, which is used in many of the industry's higher-margin drinks including cappuccinos and lattes. Raw milk prices globally are expected to rise significantly this year due to the economic downturn, which will directly impact the profitability on a per-drink basis.
Summary
Despite a global economic downturn coffee consumption continues to grow at an 8% rate through 2008 (Perlik, 43). The industry's dynamics are being redefined through the increasing expectations of customers who now want services such as free WiFi in addition to new drink products, and dependence on global supply chains directly impacting the industry's profitability as well. The bottom line is that the industry continues to experience global growth yet must manage its supply chains, retailing operations and value-added services effectively if it is to stay profitable globally.
References
Ken Clark. "Hooking Customers on Wireless. " Chain Store Age: Retail Technology Quarterly 1 Oct. 2003: 19-20. ABI/INFORM Global. ProQuest 10 Jan. 2009
Danny Pimentel Claro, Priscila Borin de Oliveira Claro. "Coordinating B2B cross-border supply chains: the case of the organic coffee industry. " the Journal of Business & Industrial Marketing 19.6 (2004): 405-414. ABI/INFORM Global. ProQuest. 8 Jan. 2009
Elizabeth Fuhrman. "Coffee changes the playing grounds. " Beverage Industry 1 Dec. 2008: 10,12-13. ABI/INFORM Global. ProQuest. 7 Jan. 2009
Starbucks and Pepsi form partnership
Elliot Maras. "Research points to growth for ready-to-drink coffee. " Automatic Merchandiser 1 Apr. 2008: 42-44,46,48. ABI/INFORM Trade & Industry. ProQuest. 8 Jan. 2009
Joseph Ogando. "Engineering a Good Cup…
Sample Source(s) Used
References
Ken Clark. "Hooking Customers on Wireless. " Chain Store Age: Retail Technology Quarterly 1 Oct. 2003: 19-20. ABI/INFORM Global. ProQuest 10 Jan. 2009
Danny Pimentel Claro, Priscila Borin de Oliveira Claro. "Coordinating B2B cross-border supply chains: the case of the organic coffee industry. " the Journal of Business & Industrial Marketing 19.6 (2004): 405-414. ABI/INFORM Global. ProQuest. 8 Jan. 2009
Elizabeth Fuhrman. "Coffee changes the playing grounds. " Beverage Industry 1 Dec. 2008: 10,12-13. ABI/INFORM Global. ProQuest. 7 Jan. 2009
Starbucks and Pepsi form partnership
Related Documents
Study Document
Retail Supply Chain Analysis Company X Is
Retail Supply Chain Analysis Company X is a well-established online retailer based in Great Britain. It sells a variety of food and non-food related products and delivers them to the consumer's doorstep. In an era in which consumers are increasingly turning to online retailing as a convenient way to shop and "add more hours to the day," a number of online retailers are becoming even more aggressive in the UK market,
Study Document
Coffee Industry: Economics and Investment an Interesting
Coffee Industry: Economics and Investment An interesting industry to consider in terms not only of investment, but also in terms of history, socio-cultural and economic influences, is coffee. It appears that, although the industry has recently experienced a world-wide crisis in sales, prices and quality, the industry is still flexible enough to provide opportunities for small companies and even coffee-producing individuals. Indeed, it appears that the crisis has brought about
Study Document
Coffee Industry Economic Environment: The
Minimum Wage: Since employment levels in the coffee industry will recover in the short-term and experience minimal growth, the minimum wage will also recover slightly because of greater automation. Currently, the minimum wage for every worker in this industry is $12,589 and is expected to increase to $13,197 in the next five years. The automation of the food-preparation process is considered as the major factor for the long-term trend of declining
Study Document
Organizational Environment Starbucks In-Depth Analysis of Organizational...
Organizational Environment Starbucks In-depth Analysis of Organizational Environment - Starbucks Starbucks Organizational Culture and Environment Global Perspectives of Starbucks Social Responsibility embraced by Starbucks Starbucks Planning Process Decision Making Process of Starbucks Starbucks Corporate Strategy Organizational Structure of Starbucks Starbucks uses a mechanistic structure as a contemporary design Starbucks Organizational Culture and Environment Starbucks Corporation is considered as one of the leading coffee house chains that offer best quality coffee to its customers. This retail corporation is based in the United
Study Document
Starbucks Coffee Marketing Plan Industry Overview Competitive
Starbucks Coffee Marketing Plan Industry Overview Competitive Landscape Target Markets Product Price Promotion Marketing Strategy Starbucks is a global coffee powerhouse that has had a success record that nearly any company would die for. It has never undertaken much a traditional route in regards to marketing and advertising. Starbucks specialty is using word of mouth, tribal, and viral social formats to promote its products and services. It is recommended in the wake of global populist movements that Starbucks further
Study Document
Starbucks Management Analysis Company Overview
This strategy was combined with the company's focus on CAFE-based compliance and support for Fair Trade-based trading practices with coffee suppliers. This renewed focus on managing their supply chains to tighter levels of profitability and performance metrics including increasing quality standards has led to a significant reduction in operating expenses and control of variable costs (Starbucks Investor Relations, 2011). Starbucks was also able to manage costs of closing locations