Starbucks vs Valdez

In: Business and Management

Submitted By gisagrec
Words 320
Pages 2
An unusual market
Now, the two companies will be competing over a coffee frontier whose peculiarities might seem unusual to outsiders, if potentially lucrative. Colombia, with a population of about 46 million, is far bigger than some of the other countries where Starbucks operates. And it’s an increasingly influential country, where a rising middle class can afford a $3 specialty cappuccino.
But chains continue to face an uphill battle. Colombians have only recently begun to enjoy the high-end, high-quality coffee brewed by baristas in New York or Rome. Colombians consume far less coffee than other top coffee-growing nations, such as Brazil. And the coffee they drink is often weak and blended with low-grade beans from Peru and Ecuador.
Méndez said one of Procafecol’s biggest problems was getting Colombians interested in, and willing to pay for, Juan Valdez’s high-end brew.
Starbucks — long one of the biggest buyers of Colombian coffee — has promised that all of the drip, espresso and packaged Colombian coffee it sells will be locally roasted and sourced. The company also says it will invest $1.5 million to help teach coffee farmers more sustainable farming practices
A point of national pride

Juan Valdez knows its biggest selling point over Starbucks is its direct connection to coffee growers, who have ownership stakes in Juan Valdez Café and receive royalties and other benefits from each cup of coffee sold.

Still, the company says it needs to make sure consumers know that connection. ¨We have to learn to better communicate what we are all about and differentiate ourselves,” Samper said.

At Juan Valdez cafes across Bogota, several drinkers said Colombians view coffee as a tasty source of national pride.

“If I want Colombian coffee, I’m going to go to Juan Valdez, for sure,” said university student Steffany Serebrenik as she sipped coffee with friends.…...

Similar Documents

Starbucks

...consecutive year seemed to support Schultz’s belief that Starbucks was close to a recession proof product, however market research findings appeared to portray a different picture. According to research findings, Starbucks was not always meeting customers’ expectations in terms of customer satisfaction. Planning to take corrective action in order to improve speed-of-service and thereby increasing customer satisfaction Day and her colleagues were evaluating whether investing an additional $40 million annually in the company’s 4500 stores was a profitable plan. Starbucks’s success is attributed to their successful focus on their brand strategy, which is to create an everyday experience around coffee. This strategy consists of three brand components namely offering high-quality coffee, establishing an intimate relationship with their customers and creating an atmosphere that makes customers feel that they are part of a community. Distribution plays a big role in their success and this statement is supported by the variety of third parties with whom they have built relationships in order to reach the diverse range of consumers, such as retail centres, office buildings (i.e., company-operated stores) and hotels, airlines (non-company-operated channels). Starbucks believes that employee satisfaction leads to customer satisfaction and therefore they empower their employees (i.e., partners) in different ways. As a result Starbucks’ employee satisfaction rate range between 80%-90% and......

Words: 935 - Pages: 4

Starbucks- Growth vs Dividends

...Strategy case study: Starbucks-sacrificing dividends for growth Starbucks has grown a lot since it's opening in Seattle in 1985. It went from 17 stores, to over 15.000 stores all around the world in 2010. But they are changing their strategy, and purpose. They started closing down shops, and refocused on the Starbucks experience, which would increase customer's willingness to pay and also increase profitability. They even payed their first dividend 2010. That ment a huge change of purpose. But is growth bad ? It has it's benefits and dangers. Warren Buffet states, that ‘Growth benefits investors only when the business in point can invest at incremental returns that are enticing – in other words, only when each dollar used to finance the growth creates over a dollar of long term market value.’ We can say that it worked for Starbucks in the beginning, when growth also meant growth of the share price, and even though no dividends were paid, the company was still profitable over the years, but with the emerging of new competition (ex. McDonalds coffee shops,…), and the loss of some of the Starbucks Experience, in 2008 the company didn’t see any share price growth, and still hasn’t paid out any dividends. From this, we can see focusing strongly on growth is not always a good idea, and while it can bring the company market share in the beginning and can even prove the be more profitable in the long term, it should not be the only purpose of the company. And when Starbucks......

Words: 517 - Pages: 3

Starbucks

...Case Study 1: Starbucks- Going global fast 1.) An example of a controllable element that Starbucks has experienced when entering the global market is the mod and trendy designs of stores. According to the article, Starbucks overseas still seems new and hip; this benefits the company because in places such as Italy, consumers want more modern coffee houses. Another example of a controllable element that hurts the company is their lack of food options vs their Italian competitors, as well as their very expensive pricing. An example of an uncontrollable element which Starbucks faces in other countries, such as Israel, is the preconceived prejudice that the company is greedy. 2.) One major risk the company is facing is cannibalism from their own stores. Although Schultz claims that they self cannibalize their stores at a rate of 30% a year, this is an issue that can worked on. I believe by closing down some stores which may be affected by self cannibalism Starbucks will be able to save money not only from eliminated the issue, but also on normal costs of running a business. Another issue they seem to be having is the newer generations in the US no longer enjoying the environment Starbucks has been famous for. I believe a solution to this problem would be to obtain more customer input on what their preference may be. Starbucks is known to be innovative when dealing with customer service and satisfaction. I feel they should do a quick survey and see who their market is......

Words: 438 - Pages: 2

Exxon Valdez

...Exxon Valdez & Prince William Sound November 16, 2012 1. What has happened to the key players since the events in this case? Since the events occurred in this case, there were many victims including wildlife & marine life, the environment, the fishermen, and the economy of the region. This event devastated the wildlife in the Prince William’s Sound by covering the natural habitat with over 11 million gallons of oil. Many wildlife species had perished during the oil spill and some have still not returned. The natural resources still have not recovered from the disaster. The fishermen, who have relied on the Prince William Sound, are still not able to make a living due to restraints placed on them by the federal government. The federal government has banned the fishing of certain species of marine life due to their slow recovery from the oil spill. Despite the money that was awarded to the victims, there still is not enough to cover the debts of the fishermen and to recover the economy. Even though Exxon agreed to plead guilty of criminal charges and to pay restitution for the damages caused, the litigation had reached the Supreme Court. This disaster had no effect on the company’s profits or stock price despite the large fines imposed. Even when damages were imposed on Exxon, with $5 billion in punitive damages, the company still continued to grow. The Supreme Court had outraged the victims by cutting the punitive damages amount of $5 billion to a......

Words: 1013 - Pages: 5

Starbucks Colombia

...Starbucks goes to Colombia Starbucks the biggest coffee shop in the United States decided to expand their business to Colombia. Starbucks goal is to open around 50 stores by 2019. This is bringing a lot of positive and negative feedback to the Company Starbucks and to the country Colombia. This is happening because Starbucks will be competing with the biggest company shop of coffee in Colombia. According to the article Starbucks to Invade Colombia, Home of Juan Valdez, the Iconic Coffee Man by John Otis, says “Starbucks’ decision comes at a low point for Colombia’s coffee industry. Growers are struggling to recover from massive flooding, diseased trees, diminished yields, cratering international prices and an overvalued Colombian peso that reduces the value of coffee exports.” So this might help the country economies. At the same time the competition might also have a high risk of failure to take their market to the biggest country of coffee because Colombians are not so happy with the decision of taking an American coffee to their country while they already have a great one. Also according to the article As Starbucks heads to Colombia, growers have grounds for regret says that 18,000 coffee farmers, declined the offer of Starbucks which according to the University in Miami might be a big mistake to the Colombia coffee farmers. The article also mentions the comments from the CEO of Juan Valdez, he says that he welcomes the company Starbucks to the country, he mentions that......

Words: 1298 - Pages: 6

Mcdonald's vs. Starbucks

...Written Communications McCafe Experience vs. Starbucks Experience In the past, McDonalds has tried to steal customers away from various competitors by marketing similar products that seem to be of similar quality but are cheaper, mass produced, knock-offs of the original. Once again McDonalds Corporation is trying to steal customers from other business and this time their target is Starbucks Coffee. McDonalds has failed to capture the atmosphere of Starbucks cafés, quality of beverage preparations and quality of coffee beans. McCafe is a poor attempt to usurp Starbucks from it’s rightful place as the world’s finest purveyor of coffee. McDonalds McCafe’s experience is a two dimensional, superficial, photo copy “like” rip-off of what has made Starbucks a special place. In the corner at some McDonalds you may find some overstuffed modern furniture, some bistro tables and chairs and walls clad with trendy looking artwork. There may also be a Starbuck’s look-alike pastry case filled with McGoodies. However, a few feet away there are still the institutional, resin seating areas filled with burger gobbling parents, and play areas rampant with their sugar laced, manic children, screaming with glee because this “is their kind of place.” There too, the atmosphere is enhanced by the aroma of over processed meat sizzling and greasy potatoes browning in overworked deep fryers. McWiFi is available if you want to surf the internet, but only if you can endure being there. ...

Words: 1196 - Pages: 5

Starbuck

...จาก University of Tennessee, สหรัฐอเมริกา ผ่านประสบการณ์สอนด้านการตลาดทั้งระดับ ปริญญาตรี และโท ที่ George Mason University, สหรัฐอเมริกา, อาจารย์ใน Department of World Business ที่ American Graduate School of International Management (Thunderbird) สหรัฐอเมริกา นอกจากนี้ ยังได้เก็บเกี่ยวประสบการณ์ด้านงานวิจัย ร่วมทำวิจัยกับอาจารย์ทั้งในและต่างประเทศ เช่น งานวิจัยเรื่องโอกาสและ อุปสรรคของผู้ส่งออกไทย SME แก่ Asia Productivity Center ของประเทศญี่ปุ่น และยังเข้ารับการฝึกอบรมจาก โปรเฟสเซอร์ ไมเคิล อี พอร์เตอร์ มหาวิทยาลัย Harvard เพื่อเป็นอาจารย์สอนในวิชา Microeconomics of Competitiveness (MOC) ที่นิด้า และยังมีผลงานด้านการเขียนกรณีศึกษาเรื่องการพัฒนาเศรษฐกิจของไทย ที่มีผลกระทบต่อการพัฒนาความสามารถในการแข่งขันคลัสเตอร์ของไทยในตลาดโลก 1 Starbucks Coffee CSR ในหลากมิติ ความรับผิดชอบต่อสังคมของบริษัท (Corporate Social Responsibility : CSR) เป็นสิ่งที่มีการกล่าวถึงกันมากในวงการธุรกิจของสหรัฐ ยุโรป และเริ่มแผ่ ขยายมาในภูมิภาคอื่นของโลก รวมถึงไทย ว่าเป็นแนวทางการทำธุรกิจที่เหมาะสมในโลกที่เต็มไปด้วยปัญหาสังคม และวิปริตทางธรรมชาติเกิดบ่อยขึ้นจากการทำลาย สิ่งแวดล้อม บริษัทที่แสวงหากำไรก็น่าจะมีส่วนร่วมรับผิดชอบในเรื่องนี้ Case Study 41 ในอดีตนั้นบริษัทมีจุดมุ่งหมายหลักคือ การ ทำกำไรให้กิจการและผู้ถือหุ้น การช่วยเหลือ สังคมของธุรกิจเป็นเพียงแค่ผิวเผินและหวัง ผลทางการประชาสัมพันธ์มากกว่า แต่เมื่อ ผู้บริโภค และ NGOs สามารถติดตามการ ทำธุรกิจของบริษัทโดยผ่านสื่อต่างๆ รวมทั้ง ทางอินเตอร์เน็ต ทำให้บริษัทถูกตรวจสอบ อย่างใกล้ชิด ไม่ว่าจะทำธุรกิจในประเทศใด เช่น กรณีของ Nike และ......

Words: 1972 - Pages: 8

Starbucks

...Starbucks’ Company History Starbucks was formed in 1971, in a single store in the state of Seattle. From just a small store, it offers the world best quality coffees with stores across the globe. The Chairman, Howard Schultz in 1981 had his first coffee Sumatra and has been drawn ever since. A year later he joined the company and went to Italy to see how their coffee shops operate and the varieties it offered. The owners back then did not agree to his ideas because he wanted to change things to be same like in Italy. He then left the company and three years later in 1987 he bought the company from its owners. From the start he set out a different tradition. One that will let customers enjoy coffee from different parts of the globe and they would interact while enjoying coffee. Today the company has over 16000 stores around the world and it’s operating in 63 countries. Starbucks is known to have specialty coffee from different parts of the world. Our mission  To inspire and nurture the human spirit – one person, one cup and one neighborhood at a time. Identifying Consumer Base Identifying consumer base is the most important goal in marketing. This is done through market segmentation. Stabucks company is a peoples- oriented company and this is important for their success in the long-run. Understanding and knowing who they are trying to reach is important. This is because not everyone is interested in the company product or service, (Grewal, p.245). There are a number......

Words: 1336 - Pages: 6

Starbucks vs. Exxon Mobil's Ethical Standards

...with each day bringing a new controversy as to who to work for and who to avoid. The present paper seeks to compare Starbucks Coffee Company as a more favourable company to work under when compared to the controversial ExxonMobil on the ethical grounds of employee rights, supply chain regulations, and environment and community engagement STARBUCKS – SUPPLY CHAIN With an increasingly important mandate, the issue of Supply Chain Management is quickly becoming a prime question of transparency and respect for human dignity. For any corporation, both consumers and employees demand to know how their products are sourced, whether the process is sustainable, and if it gives producers their due. The alarming incidents in recent history regarding various production sites of the world has shed more light on this subject and underscores the importance sustainable thinking for companies who do not want to estrange their ever more globally-aware clientele. Since 1994, Starbucks has actively taken its stance on this issue by doing what it believes to be right, which is “always working to buy [their] coffee in a way that respects the people and places that produce”. As future employees who deeply understand the human element and the repercussions involved behind these channels, we see tremendous value in a business going out of its way to obtain their products ethically. Starbucks, in particular, has worked with Conservation International to develop what they call their “Coffee and Farmer......

Words: 2263 - Pages: 10

Starbucks

...America especial in America with 11,962 stores which kept increasing from 2011 (Statista , 2014). Starbucks is proving that it is a master of using model marketing, specifically in term of consumer behavior, and to establish their position in customer mind. Since the first coffee shop of Starbucks was settled down in Seattle, America in 1971 by English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. It had been 43 years which is a long time to create a brand loyalty, a brand awareness, brand image for Starbucks which becomes a national brand, “In fiscal 2013, Starbucks had more than 3 billion customer visits to our more than 19,000 stores in 62 countries” (Starbucks, 2013). The truth about Starbucks have paid a lot of money to do research on international consumer behavior are paid off with a thousand of franchise stores have been spread out the world. In business perspective, Starbucks can be called a master of Marketing, and why that term is made up for Starbucks. In this project, our group would like to figure out the best marketing strategy of Starbucks based on the consumer behavior aspect which are in store environment element, product line extension, image of company, customer service, staffs’ communication way, using customers’ ego such as environment friendly, and sponsorship for local community. Store Environment When consumer think about Starbucks, the first mage which comes to consumers’ mind is the fresh coffee smell mix with the......

Words: 2757 - Pages: 12

Exxon Valdez

...Exxon Valdez - Historical Development On March 24, 1989 an oil tanker bound for Long Beach, California—the Exxon Valdez—struck the Bligh Reef located at Prince William Sound (PWS) in the state of Alaska. The result of this event caused upwards to 38 million gallons of crude oil to spill into Prince William Sound and eventually spreading out to 11,000 square miles of ocean as well as 1,300 miles of coastline (Newton, Dillingham, & Choly, 2006). Through a later investigation it was learned that the ship’s captain had not been at the control of the ship due to the previous night spent drinking; the Exxon Shipping Company failed in its supervision as well as a failure to provide a rested crew sufficient in numbers to operate the ship; a failure of the ship’s third mate to appropriately maneuver the ship, which may have been due to an excessive workload or fatigue; and a failure on the part of the Exxon Shipping Company to maintain the ship’s Raytheon Collision Avoidance System (RACAS), which would have warned ship’s crew of an eminent collision (Newton, et al., 2006). As noted by Peterson, et al. (2003) the consequences of the spill were largely predictable and based upon lessons learned from previous oil spills, “Because marine mammals and seabirds require routine contact with the sea surface, these taxa experience high risk from floating oil” (p. 2082). However, the ecological damage inflicted upon animal life within PWS was no less than devastating. Approximately 250,000......

Words: 1499 - Pages: 6

Exxon Valdez

...The Exxon Valdez Oil Spill The book is about the Exxon Valdez oil spill that happened in Valdez, Alaska on March 24th 1989. Although no human was harmed,thousand of fish,birds, otters and deer were harmed from consuming the oil in the water. Many alaskan natives depended on the fish to earn a living. The author’s argument is to show what can be done to reduce the risk of human disasters and how we can prevent them in the future.The author, I think, made his point very clear on the important topic of what happened, how it happened, were it happened, and how we can prevent future predicaments and human caused disasters. This issue is important to environmental science because it shows what happens if oil spills into a body of water that contains wildlife. The author covers the subject in good detail even includes pictures.The author does elaborate evidence in good detail, especially when needed.The writing of the author is very clear his point gets across very well,and I think this is a well put together,the author is a good writer, good quality.This book is different from the weekly news articles that we have done,because it’s a broader topic and elaborates more. This book is a decent contribution, because those who read it will feel informed, those who don’t read it won’t care at all. I recommend this book to other students, and environmental science activists trying to get the word out....

Words: 252 - Pages: 2

Exxon Valdez

...I. SUMMARY/SYNTHESIS • The Exxon Valdez tanker tore itself open in a reef in Alaska’s Prince William Sound and spilled more than 10 million gallons of crude oil on March 24, 1989. • Lawrence Rawl, the CEO of Exxon, stayed out of the public’s view for nearly a week which caused the publics to be antagonized and cause him to be seen as just an insensitive spoiler in the environment. • At the Exxon’s shareholder’s meeting on May 1989, he faced angry stakeholders and demonstrations that some demanded for resignation and suggested that he donate some of his $1.4 million annual salary to the clean-up. • Trying to limit the damage to its corporate image, the public relations staff of the company found itself playing catch-up with the press. They disseminated pictures showing Exxon volunteers rescuing sea otters and birds affected by the oil spill. • Exxon tried to win friends and influence but they were just criticized, which ended them to make life more difficult for the company because of the strategies. Networks also refused to at least create the impression of conflict of interest for the company. II. ANALYSIS The inappropriate and negative response Exxon did was that they did not take the full responsibility of the damage they have done. Exxon did not show compassion, as if the crisis was not important at all and just sent some other representative to speak for the company rather than the CEO. They failed to show a good public relations...

Words: 1056 - Pages: 5

Starbuck

...biggest coffee system in the world with named “Starbucks – a character in Moby-Dick novel” and take siren become their logo. In 2014, Starbucks has more than 20,000 stores on over the world and return 8.8 mil of USD in 2013. To reach this success, Howard Schultz had to go through a restless labor and he turned coffee into passion instead of simple drink. This make Starbucks become a number 1 brand. II. The story about a giant in coffee industry - Starbucks Source: Design Observer 3.1 Understanding a process – Create more profit Customers think it simple but Starbucks knew it’s the art of understand. All of us purchase every day but we just think that is very simple such as when we wake up for a new day and go to school, you hungry and want to buy something to eat, then you buy a bread for breakfast and that all. This is thinking of customers. However, as the marketers or as a company, they cannot think like this. There is a process called “The consumer purchase decision making process” which help the company or the marketers to understand more about their customers to have influence on decision of them to gain more profit. Having 5 steps through this process and in some cases, no need to apply all these steps because each consumers have their own experience, cultural, characteristics…Let see what miracle things which Starbucks did with this process to take benefit from their consumers. Actually, Starbucks Sources: ladysovereign – weheartit......

Words: 2315 - Pages: 10

Costa Coffee vs Starbucks -Marketing

...How Costa Coffee would benefit and create additional value for their coffee store clients by using elements of Starbucks marketing strategy? Contents Introduction 3 Coffee Market in the UK 3 Market Leading Coffee Shops in the UK 4 Costa Coffee 4 Identifying competition 6 Starbucks 6 Conclusions 8 Recommendations 9 References 11 Appendix 1 13 Appendix 2 14 Appendix 3 15 Introduction Competitive marketing strategy is described by Kotler and Armstrong (2012) as a strategy which positions company against competition giving it the strongest possible strategic advantage. I have chosen Costa Coffee as it currently is the market leader in terms of most coffee retail outlets in the United Kingdom as demonstrated on appendix 1. Kotler and Armstrong (2012) point out that competitor analysis includes assessing competitions objectives, strategies, strengths and weaknesses, reaction patterns and selecting which competitors to attack or avoid. For he purposes of this assignment, I have identified competition based on the market share and customer view. Competitive marketing strategy is selected on the basis of it creating further value for the customer. Blythe (2009) concludes that competitive advantage is the outcome of......

Words: 2664 - Pages: 11