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Comparison of Starbucks With The Coffee Bean
Comparison of Starbucks With The Coffee Bean
0 Introduction
1.1 Starbucks Company Introduction
1.1.1 Starbucks Companys Background
Starbucks Coffee Company was founded in 1971. The first store of this company
was in Seattles Pike Place Market. At that time, this company was roaster retailer of
whole bean and ground coffee, tea and spices.
countries with 17,000 retail stores and serves the uncountable customers. It was count in
2011. This companys name was built after the first mate in Herman Melvilles Moby
Dick.
In 1982, Howard Schultz was the director of retail operations and marketing, and
Starbucks began to provide coffee to those fine restaurants and espresso bars. Since 1983,
Howard was travelling to many countries and he was finding out the population of the
certain countries such as Italy, Canada, and so on. He found those countries population
had the potential market to develop the coffeehouse culture. Furthermore, Starbucks
Coffee Company had provided full health benefits for the employees no matter those
employees were full-time or part-time employees.
Today, many international airports have Starbucks Coffee Company. This market
was developed since 1991; which the first licensed airport store was at Seattles Sea-Tac
International Airport.
In 2000, Howard Schultz was promoted as chairman and chief global strategist
and Orin Smith was the president and chief executive officer. In the same year, they had
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deal with an agreement about issued a license of TransFair USA to conduct the business
of Fairtrade certified coffee in U.S. and Canada. Over the years to extend Starbucks
Coffee Companys market, in 2010, there have started to provide service of free unlimited
Wi-Fi.
to keep their loyal customers. For the regular customers, they provide them Total Quality
Experience and hire Simply the Best.
1.2.3 Services
The Coffee Bean & Tea Leaf is providing different kind of services to
customers. This company has provided specialty sales services. They are provided the
interest form for those who are interested for the sales of product in their special website.
Secondly, there have the grocery retail program. It means that supplier can supply
to the customers with the right option of offer to them. This company brings the products
with high-quality, taste and varieties of option to the customers.
As a reward for employees and show impression to the clients, The Coffee Bean
& Tea Leaf has provided Office Coffee Service Program which are variety of coffee
bean with the premium standard and the ground portion pack coffees which can feature
the new pack coffees with FlavorLock Valve. Other than that, this program includes the
premium all-natural exotic teas, branded merchandisers and marketing materials.
The other service provided by The Coffee Bean & Tea Leaf is Food Service.
This program is keeping the loyal customers and highly satisfies customers wants with
the compliment menu. With this program, this company is able to provide the varieties of
premium coffee bean, natural exotic iced and hot teas, green environmental idea with The
Coffee Bean & Tea Leaf paper products and branded merchandisers.
2.0 Discussion
2.1 Product Personality of the Brand
2.1.1 Starbucks Coffee Company Logo History
Today, when people look at the logo of Starbucks, they may feel proud of this
brand because the retail stores of Starbucks almost can be found everywhere.
The company is not only focusing about their own business, but they want to put effort to
influence the society by associate the company itself with the societal activities.
2.2.1 Positioning of Starbucks and The Coffee Bean & Tea Leaf
Products
Perceptual Map of Starbucks And It's Competitors (Coffee Shop Market)
The graph below illustrates customer perceptions regarding various brands:
Starbucks
TheCoffeeB
ean
The perceptual map above is showing that Starbucks and The Coffee Bean & Tea
Leaf for the price, quality and comfortable environment. Both of these two companies are
at the high price. However, when look at the quality and comfortable environment, The
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Coffee Bean & Tea Leaf has the more higher percentage than Starbucks which according
the research had state Starbucks has a little lower of luxurious for relax and
comfortable environment.
2.3.2 The Coffee Bean & Tea Leaf Social Class Targeted
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This company is targeted the working class and middle class of customers. In this
companys strategy plan, they are more targeted the market on youth and working class of
people who are between 18-35 years old.
Furthermore, this company is more focusing foreign countries market. Their
retail stores mostly are placed on the high traffic city which is large population. They
want to have this kind of target market because they find that concentrate the large
populations countries can help them to keep achieve and expand their market.
set is younger and less educated people. Since the packaging of Starbucks Coffee
Company was targeted towards a high-end market. However, it seems like the lower
growth rate in the market that may shift to low-end. In the potential market, this company
does not concern about the needs of market. It can be observed through the company
provides the products and services which were not really meet the market they targeted.
2.4.2 Strength and Weakness of The Coffee Bean & Tea Leaf
This company has the regional office in Singapore. It is the first strength can be
found from the SWOT analysis. This strength can provides the recruitment and training
programs to the regional countries which have the retail caf.
Second, this company has its own marketing strategy to attract the customers and
well-known from the customers through the different location. The strategy used by The
Coffee Bean & Tea Leaf is franchising and company own-stores. Besides franchise
strategy, franchise communication is another marketing strategy. This company
communicates between franchisee and franchisor to allow franchisor collect information
and find out what is the problem facing by the franchisee.
Other than marketing strategy, there have the business strategy too; which is
standardization. Due to the regional countries might have the different cultures, The
Coffee Bean & Tea Leaf must keep the standard level which can keeps the image of the
company in the market. Besides to keep the image in the market, the company must also
keep the higher standard of the products quality.
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The weakness of The Coffee Bean & Tea Leaf is the company is more focus to
youth and working adults as their target market. This may causes the company has some
lose of the potential market. Besides that, the share of market for this company is very
limited.
3.0 Summary
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Each company has its own way to conduct business. Either business or marketing
strategy, company must apply those strategies in order to keep their business in the
market.
Starbucks and The Coffee Bean & Tea Leaf have conducted in the same business;
which are selling coffee and beverages. Both of the companies have established many
stores over hundreds of years.
Although both of these companies have the competitive advantage, there still have
the weaknesses which the companies must find and solve it. If not, then there will be
more competitors come in the potential market and attacks both of these companies.
The research for Starbucks and The Coffee Bean & Tea Leaf are telling us the
scope of the market and the effort the companies had put into it to keep their image and
brand alive in the market.
An analysis had been done which can be found from Website is the Porters five
forces using by Starbucks. There are the treats of substitution, new entry, competitive
rivalry, the bargaining power of suppliers and bargaining power of buyers.
There are some suggestions for Starbucks to renew the brand name through
advertising and promotion and product differentiation. Besides that, the strategies to keep
the loyal customers which are provide the privilege card and rewards program and
Starbucks Drive-Through.
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Generally, Starbucks and The Coffee Company & Tea Leaf are successful
companies. Today, the stores they established are uncountable. Both of these two
companies have their own loyal customers. This is why they must continue to improve
their business either customer services, product line, pricing system, management system
and so on. These are the basic elements which companies must always concern about it.
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4.0 Reference
1. Starbucks Coffee Company, 2011. Starbucks Company Timeline Viewed on 26
June 2012. Available from:
<http://assets.starbucks.com/assets/576b394e057542a5bc78618bef7d15e3.pdf>
2. Starbucks Coffee Company, 2011. Starbucks Company Profile Viewed on 26 June
72012. Available from:
<http://assets.starbucks.com/assets/5739ef83a25444af98bd14ba1034eb50.pdf>
3. G Serrano, n.d. The Starbucks strength Viewed on 29 June 2012. Available from:
<http://trendsupdates.com/the-starbucks-strength/>
4. G Serrano, n.d. The Starbucks Weakness Viewed on 29 June 2012. Available from:
<http://trendsupdates.com/the-starbucks-weakness/>
5. International Coffee & Tea, LLC. 2012. About Us Viewed on 26 June 2012.
Available from: <http://www.coffeebean.com/About-Us.html>
6. Starbucks is in The House blog, 2010. Re definition of Starbucks
Mission Statement Viewed on 29 June 2012. Available from:
<http://harriscassie.blogspot.com/2010/02/re-definition-ofstarbucks-mission.html>
7. International Coffee & Tea, LLC. n.d. About Us Viewed on 1 July 2012. Available
from: <http://www.coffeebeanhawaii.com/about_us/index.php>
8. International Coffee & Tea, LLC. n.d. Specialty Stores Viewed on 3 July 2012.
Available from: <http://www.coffeebean.com/Specialty-Sales.html>
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History Viewed on 9 July 2012. Available from: <http://gourmet-coffeezone.com/starbucks-logo.html>
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10. AWI Licensing Company, n.d. Case Study The Coffee Bean & Tea Leaf Viewed
on 10 July 2012. Available from:
<http://www.armstrong.com/commflooringna/coffee-bean-case-study.html>
11. eCheat.com, n.d. Which marketing approach works best? Starbucks, Coffee Beans
Viewed on 10 July 2012. Available from: <http://www.echeat.com/freeessay/Which-marketing-approach-works-best-Starbucks-Coffee-Beans27607.aspx>
12. WordPress.com, n.d. Starbucks Case Study: Great Customer Relations + Good
Coffee = Success! Viewed on 10 July 2012. Available from:
<http://marketingmonster.wordpress.com/2006/04/28/starbucks-case-study-greatcustomer-relations-good-coffee-success/>
13. Bhaskar C. 2009. Starbucks Target Market Viewed on 12 July 2012. Available
from: <http://blogs.indews.com/marketing/starbucks_target_market.php>
14. Oxbridge Writers, 2012. The Coffee Bean & Tea Leaf Viewed on 12 July 2012.
Available from: <http://www.oxbridgewriters.com/essays/marketing/the-coffeebean-and-tea-leaf.php>
15. WordPress.com, n.d. Brand Positioning Viewed on 12 July 2012. Available from:
<http://cuppacoffeebean.wordpress.com/assignment-one/brand-positioning/>
16. Zack H. Chen Y L. Calvin T. Kevin T. and Michelle T. n.d. Future of Starbucks
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