Benchmarking With Costa Coffee And Caffe Nero Marketing Essay

Benchmarking With Costa Coffee And Caffe Nero Marketing Essay The organisation chosen for the report is Starbucks Corp. and the report would compare it with two similar companies, one being Costa Coffee and the other being Caffà © Nero. The report would highlight the frameworks underpinning the competitive position of Starbucks and also would identify and asses the economic and the competitive position of the firm. A financial model using appropriate ratio analysis would also be presented in a spreadsheet format identifying the industry trends and their impact on the performance of Starbucks vis-à  -vis Costa Coffee and Caffà © Nero. Both quantitative and qualitative data would be made available so as to provide an insight into Starbucks sustainable performance and prospects. Analysis of Starbucks operational, financial, organisational and marketing capabilities would be made available through application of PESTEL analysis, Porter’s 5 forces model, the Ansoff Matrix and the BCG Matrix. The report would also discuss the issues, the p roblems, the opportunities and the options available to Starbucks for future business growth, followed by conclusions to draw together all the variables identified. Recommendations would be provided for the company highlighting the direction it needs to take to ensure business profitability with comments on the suitability, acceptability and the feasibility of the options made available. INTRODUCTION The Starbucks Company was founded in Seattle in 1971 by Gordon Bowker, Jerry Baldwin and Zev Seigel with a vision to educate American consumers about the fine coffee drinking experience. In 1987 Howard Schultz took over the Starbucks Group. Starbucks is the number one in the industry, with more than 12,000 shops in more than 35 countries. Just within a couple of years they grew from a small coffee business house to a multi-million dollar player in the coffee industry by buying the best coffee available and providing the people with an unmatched store experience. Freshly brewed coffee is the main product offered by Starbucks along with other drinks which include cold and hot teas, cakes and pastries. The Starbucks coffee comes in a many varieties each possessing a different taste, aroma and flavour. INDUSTRY TRENDS AND MARKET ANALYSIS The market right now for gourmet coffee business is hot. All the multi-national fast food chains and street-corner shops want in on the boom. Many big companies are focused on the supply of specialty branded coffees and the economic stage is heating up. Specialty coffee industry is one of the fastest growing financial services globally. Growth in the coffee industry is continuously peaking, with many new overseas companies entering the market using policies offering exclusive perks and special discounts, despite the questionable quality of the coffee being used to increase the market share. A notable trend seen is that often a significant increase in sales occurs every time a cafà © starts to use branded consumables. The consensus is that these coffee drinks would be a long-term trend, with focus on elevating the customer’s taste for a product that they are familiar with and then leading them to the coffee stores to buy it. Many companies are also tinkering with expanding the food menus as well including an in-store display of sandwiches, fresh baked goods and many confectionary items.