This company founded in the UAE in 2000, it is especially brand for coffee with Coffeehouses. Starbucks features a variety of coffees, hand-crafted beverage, teas, water, freshly baked pastries, sandwiches and salads. It is including also in their product compilation of music CDs ranges for all testes. Starbucks have very friendly employees make the customers feel comfortable to visit them again. The qualities of the products Starbucks provide make them reach this level of popularity. 1 Target Market.
Starbucks focus on the demographics, psychographics and lifestyle of their customers. Also with the information that Starbucks collected regard the target market segment for the better to its customers. The demographic helps Starbucks to locate its target market. It is target the both male and female, around 18-30 years old, but you can see thats it provide product for everybody. Starbucks provide non-coffee beverage for children to supply for the whole family. It is customers primarily in their final years of high school, in university or just working.
Most of them have a good education, and the people who have job, it include a high salary. The psychographic of Starbucks based in charity and the arts. Also it is sponsored the different kind of events. Starbucks aims to target people who are generous and charitable, also people who like fun and enjoy their time. It sells a lifestyle to both customers and employees, it appeals a new style to its coffees an age-old beverage, so thats today it is one of most famous coffees around the world. 3.
Competitor Company The Coffee Bean and Tea Leaf It is an international coffeehouse company, founded in 1963 in California. They provide a variety of hot/cold coffee and tea drinks and related. Beside snacks like sandwiches, salads, muffins, cakes and a selection of pastries. There are 11 branches in the UAE 9 in Dubai (Sahara Shopping Center, Ibn Battuta Shopping Center, Zayed University ¦). The Coffee Bean provides its customers with a well trained friendly customer service to satisfy them and ensure their loyalty.
4. Major Finding of Competitive Analysis 2 SWOT analysis |SWOT analysis |Starbucks |Coffee Bean & Tea Leaf | |Strengths |-Brand name recognition |-Changing the menu and adding new products regularly | | |-Good reputation |-Providing variety of products coffee & tea products | | |-coffees bottled beverages sold at retail (Frappuccino|-Breakfast meals & light lunch meals | | |bottles sold in petrol stations) |-On-line store at www.coffeebean. com | | |-Location (significant markets / crowded shopping malls/| | | |airports) | | | |-Free internet wireless access | | | |.
-On-line store at www. starbucks. com | | |Weaknesses |-Little promotion / offers |-Locations (little number of branches in less crowded | | |-Considering more on coffee products than other products|places) | | |(Tea & juices) |-Small awareness ofbrand name | |Opportunities |-Widen Product Range to reach new target market.
-Expand branches in the market | | |-Improve the speed and efficiency of service |-Apply marketing strategy to increase brand awareness among| | |-Increase promotions & offers |customers | | |-Internet wireless access grabs new market (Students and| | | |tourists) | | |Threats |-Change in consumer tastes and interest |-Customers prefer recognized brand | | |-Increase in competition |-Local competition | 3 Competitive Advantage.
By searching the two organizations we got a clear knowledge about them and the tools they use to grab customers and reach success. Referring to table1 the SWOT Analysis table; it shows the differences between the two coffeehouses in the Strengths, Weaknesses, Opportunities and Threats areas. The major different which make Starbucks stronger than Coffee Bean is the recognized brand name and the reputation that Starbucks have. These make Starbucks more known and preferred from customers who look for famous places that sells good quality products.
Also the location and number of branches plays a significant impact in this case. This is because Starbucks is more spreading in the market in strategic and core places like the airport (see appendix 1). 5. Strategic recommendation: Even though Starbucks is more popular than Coffee Bean and Tea Leaf for its high quality coffee and products, it has more than 40 branches in UAE, but it need to achieve its competitor advantage to maintain its market leadership. However Starbucks has some weakness that covers its strengths that needs to be looked at and improved.
One of the most noticeable difference about Starbucks and other competitor is its menu that is rarely changed and its prices that the competitor has trampled them by their less price and good quality. Even that there are promotions done in Starbucks but not as much as others, for that they need to increase their promotion to rout their competitor who has attractive promotion threw their advertisement that Starbucks has some weakness in.
They should focus on creating their own way of advertisement that can be shown everywhere which advertise their promotions and not relay on Starbucks name popularity only. Also one of the significant weaknesses that Starbucks has is their products that are more specified on coffees more than other kind of products such as tea and Fresh juices for this they have to widen their products range to grab new market and win customers. 6. Conclusion As it shown and known Starbucks in one of the biggest companies in the whole world that has its own reputation in its products.
Starbucks has its own way of rousing it sales and improving its organization. However, they are special than other coffeehouses by their brand name, products and services, but they have some weaknesses at the same time, which can be overcome by reaching their competitors strengths. Even more Starbucks is well known of their spreading in the market by the number of branches which is increased daily approximately one by day in the world. Appendix 1 Marketing Mix Analysis (7 Ps).
|Marketing Mix elements |Starbucks |Coffee Bean & Tea Leaf | |(7ps) | | | |Product / Service |Coffee, hand-crafted beverage, tea, ice blended drinks, freshly|hot and cold coffee and tea beverages, sandwiches, salads and a | | |baked pastries, fresh sandwiches, salads, cakes and cookies. |selection of pastries and cakes | | |Plus coffee related accessories | | |Price |-The prices are in a middle range not too different from other |-Middle range prices | | |coffeehouses.
Example : |-lower a little than Starbucks | | |(Frappuccino = 15 AED) |Example : | | |(Cappuccino = 12 AED) |(Ice blended drink = 14 AED) | | |(Cheesecake = 14 AED) |(Cappuccino = 11 AED) | | | |(Cheesecake = 10 AED) | |Promotion |-Advertise for new products in newspaper |.
Special promotion for Breakfast Meal | | |-Seasonally products (summer / winter) |-Free drink after 12 purchases | | |-Promotion banners and brochures in the shop |-limited Belgium coffee for this season | | |-on-line website |-Promotion banners in the shop | | | |-on-line website | |Place |41 branches around the UAE in significant & crowded places |11 branches in the UAE | | |like the air port |9 in Dubai | | |27 in Dubai |1 in Al Ain | |.
|5 in Abu Dhabi |1 in Sharjah | | |5 in Sharjah | | | |2 in Al Ain | | | |1 in Ajman | | | |1 in Ras Al Khaimah | | |People |-Most of Starbucks employees are educated and special trained |-Staff are well trained to serve customers | | |to work in Starbucks |-Employees are welcoming and friendly dealing with customers | | |-Starbucks apply a friendly polite customer service to comfort |-Coffee Bean apply a great customer service to win the customers | | |its customers | | |.
|-Employees are trained to satisfy customers wants by asking | | | |their preferred taste and providing information on each product| | | |plus giving some suggestions | | |Process |Order, pay and get the order |The process of ordering takes normally maximum 4 minutes as branches are| | |.
This process takes 2 3 minutes normally, but in busy branches|usually not too busy | | |customers will have to wait more | | |Physical evidence |-Starbucks apply an international uniform and decoration for |-Coffee Bean apply a relaxing atmosphere for their customers decorating | | |all its branches around the world |the branches in light colors like beige and soft music | | .
-Starbucks trade mark is appearing all over the Cafe from the |-Employees working in Coffee Bean, ware practice uniform | | |decoration to the cup of coffee and tissue |-The Coffee Bean logo appears everywhere in the cafe letting the | | |-Starbucks atmosphere is unique and comfy, they provide |customer recognize it | | |customers with different choices of seating from chairs to | | | |couches while playing music that suites different tastes .
Table 2: Marketing Mix Analysis Table 1: SWOT Analysis.