...1 2.0 Coffee industry in the world 1 2.1 Driver and trend 1 2.1.1 Porter’s five forces model 2 2.1.2 PEST analysis 4 2.2 Growth of coffee industry 7 3.0 Coffee industry in the China 7 3.1 BCG matrix analysis 8 4.0 Conclusion 10 5.0 Reference 12 1.0 Introduction Currently, coffee has been a very popular product in the world as well as become a daily item in people’s life. They usually drink coffee in order to relax their mind and refresh themselves. Therefore, coffee industry produces a significant development in the market. This essay will illustrate the situation of coffee industry in the world market, including driver and trend. Also, it will talk about some coffee companies in China like Starbucks, Costa and so on. Some models will be applied to analyze the industry and companies. 2.0 Coffee industry in the world 2.1 Driver and trend The most important driver of coffee industry is the continuous developing technology. If an industry applies the new technology and produce a new product that people may like, other industries would find advanced technology and use it to produce their products to attract people because the competition between industries is stiff. What is more, the healthy idea of people is an important driver for coffee industry as well. The idea may reduce consumption of coffee as people pay attention to their health and do not want to buy the drinks that are harmful to health. Therefore, coffee enterprises...
Words: 3103 - Pages: 13
...This memo provides insight into the gourmet coffee industry and helps to outline a few of the primarily topics our group plans to explore in our final report. “The United States imports in excess of $4 Billion worth of coffee per year” (Coffee Statistics, 2014). This means that there’s a massive amount of individuals drinking this beverage. This is a very broad statement because the coffee industry, if compartmentalized, proves to be an industry with a numerous amount of outlets, as it is sold in many markets; can be prepared in a multitude of forms; and is served up for consumption in many different venues. According to Karen Fernau, the coffee industry is a $30 billion dollar per year industry that is still growing” (2013). This statement is applicable to the U.S. but, coffee’s appeal is not just limited to Americans. “90% of the world’s coffee production takes place in developing countries; whereas, most of its consumption is in industrialized nations” (Goldschein, 2011). Distributers are greatly benefiting the most from the explosion of coffee drinkers, with gourmet coffee houses leading the competition. However, this is the only place that consumers can grab a cup of their favorite roast. Retailers stock their shelves with both instant and brewed varieties; many individuals opt for a quick cup on-the-go from McDonalds or Dunkin Donuts; others enjoy gourmet coffee right in the comfort of their homes through use of a single cup Keurig brewing system; and many...
Words: 400 - Pages: 2
...The future of the coffee industry The Canadian market The Canadian market is relatively small compared to other countries in the world; however it is quite sophisticated and well served by local distributors, retailers and shops in each major city. In this context, the competition will continue to be strong, posing challenges for all companies. The trend will evolve into more specialization, with companies offering premium blends, ethical “fair trade” products and exotic flavours to attract new consumers. Fast-food chains such as McDonald’s will continue to focus on improving the quality of coffee served, to gain more market share. Restaurants are also major purchasing points for coffee that will continue developing private labels and branding. The battle for market share appears to focus, not on the area of cost reduction or mass production, but rather through the marketing of new products tailored to the consumers’ particular tastes. Consumers Consumers, both young and old, have rediscovered coffee, being exposed to premium coffee products, single-serve formats and iced coffees. Iced coffees in particular have captured the interest of the youth market and have introduced these young consumers to coffee, increasing the chance that they will continue to be consumers throughout their lives. Although coffee has historically been identified as a morning beverage, these new consumers will likely contribute to expanding traditional consumption patterns in the future. On...
Words: 365 - Pages: 2
...The Effects of Globalization and the Coffee Industry Assignment #5 ECON 401 December 30, 2014 Globalization has had an effect on many aspects of our lives, socially, economically, politically, and culturally. Since the 1970’s trade barriers have been minimized and the coffee industry has been a high import and export for many countries being the second most traded commodity in the world behind crude oil (Chapman, Hodges, 2011). As the industry evolved and large corporations fed on the increasing demand for coffee, it has become a commodity many countries rely on; 20 million people depend on coffee for their livelihood (AAFC, 2010), whether it be the north American coffee retailor to the small farmer, we can say that globalization has and will continue to affect every aspect of the coffee chain. Supply, Demand & Price It is evident today that people need to have their coffee. In the 1960’s and 70’s half of the worlds coffee came from Columbia and it was about $3.00 per pound (Lewis, 2014). The industry was booming and protected by the Columbia Coffee Federation. This was a regulatory party who acted as a mini union for the coffee farmers who basically had no voice to the state. At this time it was good business to be in agriculture in Columbia. Since then demand has only risen as the large coffee retailors such as Starbucks and Seattle’s best have made coffee drinking a major social pastime. The shifts in the coffee supply and demand are not predicted by...
Words: 3373 - Pages: 14
...How many people can say they’ve never had a single cup of coffee in their entire life? In response to that, I say, “To live without coffee, is to not live at all.” Personally, I adore coffee, but with all the misfortunes of the coffee workers, it’s plain to see that they need to revolt in order to obtain better working environment and benefits. Many Americans assume that since an average person drinks approximately1.6 cups of coffee daily, that the coffee industry has and always will be thriving. The truth of the matter is, no, coffee industries suffer just as much as any other industry, and all because workers have failed to fight for better working conditions. Zamora (2013) states, they are given the ability to house their families on the farm during harvest, but like the industrial revolution age here in America, they were to stay in large warehouses that housed 30-40 other families...
Words: 984 - Pages: 4
...PESTEL analysis of the global coffee industry. Corporate strategy is the way a company or organization creates values through the configuration and co-ordination of its multi-market activities (Collis, 1997). Coffee is the most widespread drink in the world with approximately half-a-trillion cups consumed every year. There are two fundamental types of coffee: espresso and regular, or non-espresso. Espresso is the variety of coffee available in cafés and restaurants, whilst regular coffee is generally meant for the home. Nearly 70% of the world's coffee is produced by the Americas of which Brazil contributes 30% to the global production. The coffee industry of the world employs nearly 25 million people while approximately 5 million people work in the coffee industry in Brazil. Brazil has in excess of 3 billion coffee plants. The three major kinds of commercially produced coffee bean are Arabica, Robusta in addition to Liberia. Brazilian Coffee production figures rose by more than 12 million (60kg) bags to an amazing 46 million during 2008 – making the country streets ahead of the other two top world coffee producers of Vietnam (19.5 million bags) and Colombia (13 1 million bags). Political/Legal: High standards relating particularly to coffee producing methods are becoming more important in the industry and may gain political prominence. There is increasing pressure for businesses to trade ethically, that is, socially, environmentally, and economically responsible. This is...
Words: 734 - Pages: 3
...Analysis of the Coffee Industry History of Coffee The coffee industry provides its customers with coffee and sometimes other beverages (tea, soft drinks, snacks, etc.) According to Myers, coffee is the world’s most valuable agricultural commodity. Coffee consumers drink different types of coffee, including cappuccino, espresso, mocha, and latte. The coffee industry is in high demand, and the more people drink coffee, the more the quality and value of coffee become more important. Starbucks is in this coffee industry because it meets the consumers demand for a quick way of energy to get their day started. 69% of Americans consider coffee to be an “affordable luxury”. It is available in a variety of beverages and flavors to satisfy the most discriminating tastes. Starbucks missions statements states “Our mission: to inspire and nurture the human spirit- one person, one cup, and one neighborhood at a time” Starbucks coffee has always been and always will be about quality, according to them. In the five years to fiscal 2013, Starbucks revenue is expected to grow at an average rate of 7.5% per year, with an increase of 11.9% in fiscal 2013 to total $14.9 billion. In the Ethiopian highlands is where coffee trees were originated. The Arabs were the first to cultivate coffee as well as to start its trade. It was then brought to Europe, then in the mid 1600’s coffee was brought to New Amsterdam, which is now called New York by the British. In 100 years, coffee was established as...
Words: 1903 - Pages: 8
...Analysis- Starbucks Introduction One of the most competitive industries in the world is the food and beverages companies. Being one of the shopping and tourist capitals in the world, Hong Kong has many competing companies in these industries. The coffee market in Hong Kong has been markedly flourishing in the past decades leading to the sprout of the number of coffee shops in the country. the sprout of the number of coffee shops in the city. The coffee drinking culture in the said country has been one of the most eclectic from ‘gourmet’ to the local blends served in coffee houses. In Hong Kong, there exist different competing coffee shops and this includes Starbucks Coffee shops. It can be said that this type of industries can be considered to have a strong competition in the market. Primarily, of this paper is to analyse the strategies used by Starbucks through SWOT Analysis and Porter’s Five Forces Model. From this analysis, optimistic and pessimistic scenario for the next ten years will be considered. Company Overview Starbucks Coffee is known as one of the fastest growing brands in the international level, the company made its debut in May 2000 as it opened its first store in Hong Kong at launched at Central's Exchange Square. The second store was opened at Hysan Avenue in Causeway Bay (Ho, 2002). At the end of 2000, Starbucks had already nine coffee houses in Hong Kong and continue to grow in the following years. By the end...
Words: 2648 - Pages: 11
...years depending on the popularity of the product. The gourmet coffee industry is one such area where the popularity of the product with consumers extends its life cycle over many years. The coffee industry as whole brought in total sales in excess of $4 billion in 2011. Sponsored Link DAM SIMPLE Document management made for teams. Try the free plan now!www.dam-simple.com Introduction Stage The introduction stage in a product's life cycle features low sales with high retail prices for goods, high advertising costs and very selective distribution across limited markets. In the modern gourmet coffee industry, the introduction stage occurred in the years before widespread gourmet coffee chains when consumers could only purchase specialty coffee drinks and artisan coffee varietals from specialty shoppes and independent coffee houses. According to NetMBA, a business information website, the introduction stage in a product's life cycle is a period of low to negative profits due to the high costs of advertising and growing a customer base. Coffee Growth Stage Rapid increases in earnings characterize the growth period of a product or brand. Price can stay at its high level during this period if demand for the product remains high, or it can drop to capture more consumer attention. With gourmet coffee, the growth stage occurred during the late 1990s through the early 2000s, when chain coffee shops offering specialty coffee beverages appeared on every street corner across the United...
Words: 503 - Pages: 3
...The industry of premium coffee production has had a shadow cast over it by the coffee juggernaut, Starbucks. As any American who has been out of their home in the last fifteen years knows, Starbucks has virtually taken over the coffee retail business all over the US. It would prove quite difficult to go to any relatively large city or town and not see at least two Starbucks retail stores or find their products in the local grocery store. With such a formidable competitor present in the industry, it seems improbable that any other producer of premium coffee would be able to compete. A small, Vermont based coffee brewer by the name of Green Mountain Coffee Roasters (GMCR) has managed to carve out a piece of the market for itself and has begun spreading all over the northeast United States. Originating in 1981, Green Mountain Coffee was originally supplied to customers of a small café but once word spread of their high quality coffee beans and unique selection and roasting process, their product began to spread to different venues. Restaurant and hotel demand boost Green Mountain into the wholesale industry. Within the next fifteen years they had opened twelve company stores that were responsible for ten percent of their income. However, they noticed a steady decline in the returns they were seeing from these retail stores and decided to close its stores; a risky move considering that they had always been an important means of providing samples of their product to the consumer. Despite...
Words: 2500 - Pages: 10
...will want it and therefore you have a high demand for it. Look at the coffee shop industry and the coffee business. The market for specialty coffees has become very popular since consumers are more knowledgeable of espresso drinks and how they are made. This paper will explore the basis for these trends in consumption patterns, to include the effectiveness resulting from coffee, changes in demand, market prices and the elasticity of demand for coffee. The paper will also define economics, the law of demand and supply, and discuss factors that can lead to a change in supply and demand. Each year, the National Coffee Association of the USA publishes a report on National Coffee Drinking Trends. This report is known one of the bibles of the coffee industry. According to First Research coffee shops businesses grew to 20,000 shops in the U.S. having combined revenue of $10 billion as reported in 2011. Over half of the adult population drinks coffee at some point. It is known that 66 percent of Americans buy their coffee outside of the home but more than 75 percent of the cups that are brewed daily are consumed at home. One very important thing that is known about Americans and that is we like our coffee. The 2012 statistics for the coffee drinker is that according to the latest National Coffee Drinking Study from the National Coffee Association at least 40 percent of age’s 18-24 drink coffee every. This is...
Words: 1212 - Pages: 5
...Introduction Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 20,891 stores in 62 countries, including 13,279 in the United States, 1,324 in Canada, 989 in Japan, 851 in China, 806 in the United Kingdom, 556 in South Korea, 377 in Mexico, 291 in Taiwan, 206 in the Philippines, 171 in Thailand and 10 in India. Starbucks locations serve hot and cold beverages, whole-bean coffee, microground instant coffee, full-leaf teas, pastries, and snacks. Most stores also sell packaged food items, hot and cold sandwiches, and items such as mugs and tumblers. Starbucks Evenings locations also offer a variety of beers, wines, and appetizers after 4pm. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of the store. Starbucks-brand ice cream and coffee are also offered at grocery stores. From Starbucks' founding in 1971 in Seattle as a local coffee bean roaster and retailer, the company has expanded rapidly. Since 1987, Starbucks has opened on average two new stores every day. The first store outside the United States or Canada opened in the mid-1990s, and overseas stores now constitute almost one third of Starbucks' stores. The company planned to open a net of 900 new stores outside of the United States in 2009, but has announced...
Words: 1138 - Pages: 5
...Coffee market in china Insert name Institution affiliation Abstract This research paper aims to explore coffee market in China. It will focus on finding the quantitative analysis, consumption patterns, and development of the market relations to that of average income. It will utilize data of both urban and rural areas because of the distinct consumption patterns, show the development analysis and potential markets through supply constrain approach and regression analysis. Coffee in china is more of a habit. People drink it to feel good and not out of necessity. Coffee culture in China appeals to the adventurous, young, affluent, urban consumers in cities like Guangzhou, Beijing, and Shanghai. The paper will look at the consumption patterns and its demand that looks more of a successful lifestyle and culture of the western people. Out from the traditional tea- drinking country, China seems to become one of the largest coffee consumption countries in future (Bantiwalu & Demisse, 2010). Keywords: Coffee market, Quantitative analysis, Coffee consumption patterns, Average income, Regression analysis, Chinese potential market for coffee Introduction Coffee has enormous economic, social, and environmental importance in China. Most especially the Ethiopian coffee grows demand to the Chinese potential markets. Ethiopia continues to produce quality coffee reaching to international markets, like China. People around the world, drink up to a total of 7.4 billion cups of...
Words: 5339 - Pages: 22
...Options 4/17/2008 Brown University Economics Department Ryan C. Larson 08’ 1 Contents Introduction ......................................................................................................................... 4 Michael Porter’s 5 Forces Analysis (Past) .......................................................................... 7 Industry Rivalry ............................................................................................................................ 8 Potential for new entrants ........................................................................................................ 10 Substitute Products ................................................................................................................... 12 Bargaining Power of Buyers ...................................................................................................... 13 Bargaining Power of Suppliers................................................................................................... 14 Summary: The Five Market Forces in Specialty Coffee in 1987 ..................................... 15 Specialty Coffee Industry Attractiveness.......................................................................... 16 Starbucks’ Original Generic Strategy ............................................................................... 19 Starbucks’ Success Factors ............................................................................................... 22 First-mover...
Words: 22564 - Pages: 91
... | |[pic] | |Service Marketing Project Report On Café Coffee Day | | | | | |Submitted by :- Nandita Sadani | |Enrollment No. :- A30601909048 | PREFACE Marketing strategies are methods followed by most successful and well known companies to improve their scope in any market. It is a means by which we determine whether one company is better than the other or not. Food chains are a growing industry in the modern world with an increase in the number of working hours of the average working person. Hence, even food chains need to improve their marketing strategies to appeal to the middle-class consumer. The main aim of this project is to make the reader understand the various strategies...
Words: 9340 - Pages: 38
