Building the Starbucks Brand So far, Starbucks has spent very little money on advertising, preferring instead to build the brand cup by cup with customers and depend on word-of-mouth and the appeal of its storefronts. The company was, however, engaged in a growing effort to extend the Starbucks brand and penetrate new markets. In addition to expanding internationally, venturing into ice cream with Dreyer's and into Frappuccino with Pepsi, partnering with licensees, and developing specialty and mail-order sales. STARBUCKS MISSION “To inspire and nurture the human spirit— one person, one cup, and one neighbourhood at a time. EXPERIENCE is about these 3 P’s: 1. People- the baristas and their connection with customers. 2. Place - the physical stores, their design and aroma 3. Product – the beverages, food, and merchandise 4. Price - 5. Promotion - 6. Physical Evidence - 7. Process - •(People & Product) Customer connection and a fresh, hand-made beverage. The newer automatic machines that replaced the La Marzoccos are faster, but blocked the visual sight line the customer previously had to watch the drink being made, and for the intimate experience with the barista. It seems that the personal connection between the baristas and the customers is the core of their experience. •(Place) The Aroma. “... The loss of our people scooping fresh coffee from the bins and grinding it fresh in front of the customer, …” Some say the sale of hot food has detracted from the coffee aroma that customers attach to Starbucks stores. •(Place) Store Design. Design of their stores has taken on a more streamlined feel to gain efficiencies. But that resulted in the stores losing their charm and uniqueness. Starbucks has “stores that no longer have the soul of the past and reflect a chain of stores vs. he warm feeling of a neighborhood store. Some people even call the stores sterile, cookie cutter, no longer reflecting the passion their partners feel about our coffee. ” •(Product) Coffee related merchandise. As a purveyor of fine coffee and tea, Starbucks has struggled as of late to get their merchandise to reflect their brand and their history. “Some stores don’t have coffee grinders, French presses from Bodum, or even coffee filters. ” A more focused approach would be: (a)Participating in social media and (b) Gathering customer suggestions would be easier for a company with no meaningful social media experience to manage.
It would also make it easier for Starbucks customers to follow-along. The current MyStarbucksIdea website is already unwieldy — lots of wayward ideas have been suggested and many of the ideas suggested are repeated numerous times in various categories. This website will only get more unwieldy. Points of difference: 1. Starbucks provides its customers with a Starbucks Card through which they can have an easy and fast access to the menu items and discounts. These cards are customizable and can be designed by the customers themselves as per their likings. 2.
Starbucks follows an environment friendly drive in which every time a customer brings a reusable travel mug gets a 10 cent discount on any Starbucks beverage, anytime. Starbucks passion for reducing cup waste did not start with the Green Project. Since 1985, they have offered a discount to customers who bring in a reusable travel mug and will continue doing so. This is just one of the ways they are fulfilling their commitment to environmental stewardship while working towards a long-term goal of 100% reusable or recyclable cups by 2015. 3. It also offers its customers with various coffee and tea gifts.
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Customers can register and participate in a 3 months program in which they are sent special exotic flavors of coffee from around the world. BARISTA As of today, Barista exists in over 22 cities, and operates over 140 outlets nationally. In the last 2 years, Barista has opened over 100 outlets in the country and with a new outlet opening nationally every 14 dates, Barista is currently experiencing phenomenal growth. With outlets opening in Sri Lanka and Dubai, Barista is looking at potential growth opportunities in Asia, making it highly competitive international brand.
Product Source: Barista sources its coffee beans from around the world, but a major supplier is TATA Coffee, part of the TATA Group that owns a large stake holding in Barista. These coffee beans are then sent to Venice, Italy where they are roasted into a blend exclusively for Barista. The food and desserts at Barista is exclusively catered to by the Taj, who ensures a high standard of quality with all its products. Barista also sells merchandise through its store, all of which is imported. The merchandise accounts for nearly 1/6th of Barista’s overall sales.
Barista has a check on the quality of its products every 14 days. Barista also incorporates TQM at its headquarters in Delhi. Since Delhi is the base for all its distribution, quality control measures are adopted there to avoid any poor quality products being distributed. Pricing: Barista has a ‘Skim Pricing Policy’. They began with a higher price, and skimmed the cream for the market. With the sudden spurt of growth in number of outlets, came the benefits of economies of scale. Because of this, they have been able to gradually lower their prices, and appeal to different segments of their target market.
Currently, their prices are the lowest they have ever been, and they can competitively match their prices against Cafe Coffee Day’s prices. The prices are constantly changing though, and the last 1-year has seen 3 changes (mostly reductions) in prices. This gradual price reduction meant that Barista could maintain its profit- maximization policy until it could earn large cost savings because of the benefits of high volume. The main factors that affect their pricing are their cost of goods sold. The costs are quite high because imports a majority of its products and product- sources. ? Process:
The order and delivery process at Barista is based on self-service, where a customer goes up to the counter to place his order, and goes back to the counter to pick his delivery once it is prepared. Brand Image: Barista positions itself as a brand for anyone who loves coffee. Their products, services and outlets are more like the traditional European cafes, where people would meet for the love of coffee, and for an intellectual appealing time. They position their outlets as a place “where the world meets”, and they look to appeal to anyone in the 14- 60 age group that loves good coffee and looks for a nice quiet time.
Products: Barista’s product mix constitutes a wide range of products that appeal primarily to traditional coffee lovers. Their products themselves are traditional products with traditional names. Food items like croissant, pastas, and sandwiches are complimentary to their coffee, and project a very classic image of Barista. Their merchandising also consists of primarily coffee related products like coffee beans, coffee machines, etc. Prices: Considering that Barista is trying to target a market whose age range is between 18 and 60 years, a pricing policy appealing to this segment is difficult.
Extremely low prices act as a deterrent to some customers who might regard it as an indicator or quality, while very high prices cannot be afforded by most of the youth. But since Barista’s current consumer profile is quite young, their prices are mostly inexpensive, and at par with their competitors. People: The people at Barista are characteristically trained to be Pleasant, Polite and Positive. They ensure you have a quiet, uninterrupted visit and provide an escape from the daily pressures of life. Their uniforms are in sober shades of brown and orange, and contribute to the overall laid-back feeling of the cafe. Physical Evidence: Logo, Colors, Images: Barista, since the beginning has looked to use colors in its cafe interiors, logos and images; to project a “warm, earth glow, synonymous with coffee”. Barista uses shades of Orange & Brown to good effect to promote its “laid- back” atmosphere. The logo is a combination of Brown, Orange and Light Yellow; with the word “Barista” written in an upward curve, and the word “Coffee” underneath. A simple logo that perfectly expresses Barista’s brand image, A traditional cafe for coffee lovers. Decor and Architecture:
Barista’s internal decor and architecture expresses the simplicity you would normally associate with traditional cafes. The furniture is made of light shades of wood, and there are comfortable sofas in bigger cafes. The walls are shades of orange, with various photographs of the love for coffee spread around each outlet. Literature: The literature provided by Barista is indicative of its brand image. The menus, posters, pamphlets are all traditionally designed, with a classic and simple look. One aspect of particular note is their magazine, which is privately circulated in the cafes.
The magazine encourages customers write, draw, make etc anything creative; and this is then published in the magazine. The magazine not only provides an avenue for advertising, but also an opportunity for Barista to express its brand image. ? Place: Barista looks to cater to their target market with strategically located outlets. Their outlets are generally located at High Street/ Family Entertainment Centers. Considering their generic appeal, there are Barista outlets in and around Malls, Cinemas, Colleges, and Offices etc. his endorses their brand image of a cafe that appeals to coffee lovers of all ages. Promotions: Barista currently carries out mass promotion campaigns. This is mainly in the form of promotions in the Press, TV and Radio Medias. At present, they do not rely heavily on advertising, but rely more on sponsorships and strategic alliances with other corporations. Barista also takes part in various sales promotion activities to help increase sales at their outlets. a) Sponsorships: Barista sponsors various events and festivals, which provides them valuable promotion directed at strategic markets.
The sponsorships are mainly in kind, although major events are sponsored in cash also. b) Sales Promotion: Barista uses a special “Barista Coffee Card” for its sales promotion activities. Barista Coffee Card entitles you to one complimentary hot beverage when you are done sipping seven. It is available to all Barista coffee regulars. No membership fees, no references required. Fill out the card and you are a member. As a Coffee Card holder, you earn one stamp on the card every time you purchase a beverage. Simply present the card to the cashier when you place your order at any of their outlets.
Once you have collected seven stamps, you can hand over the card to receive your complimentary hot beverage. Barista hopes this card can help drive sales growth, and increase customer retention. COSTA COFFEE When you walk into a Costa store you'll notice it's different to other coffee shops. First of all, there's the warm and welcoming atmosphere. Then the great range of authentic coffee drinks. Next the Ferrari of coffee machines. And finally, the most passionate and well trained baristas around. It's this unique combination that makes them stand out from the others.
Costa believes that Hand-making a cup of coffee is an art. It takes time and skill to perfect. That's why every single barista, in every single Costa store is professionally trained in the art of coffee by experts. It's a little thing, but it makes a big difference, because it means you'll get a perfect cup of Costa coffee every time. •Costa Coffee has overtaken Starbucks as the leading coffee chain in the UK •The company has reported strong sales due to aggressive expansion •Costa now has more UK stores than Starbucks •Costa aims to double store numbers by 2013 Costa is to boost its UK growth through tie-ins with retailers and grocery stores •The company is planning an aggressive global expansion strategy, focused on under-represented countries •The company is expanding its India-located stores, aiming to make the country its third largest in terms of store numbers •Costa trains its coffee roasters at a special academy, highlighting its aims to create a premium coffee drinking experience •The company markets its traditional roasting methods as a key point of difference •The company has addressed ethical consumer concerns through new coffee sources and a coffee foundation •Costa is set to become the first major coffee chain to source its coffee through the Rainforest Alliance ? CCD CAFE COFFEE DAY VALUES- PRISM PRIDE - I take pride in my work and in my organization. RESPECT - I respect my customers, my subordinates, my peers and my superiors. INTEGRITY - I will show the highest level of integrity towards my work and my company under all circumstances. SELF - DISCIPLINE - I will imbibe and practice self-discipline in all my daily activities. MOTIVATION - I will always be motivated to give the best for my organization, my team and my customers. ? MISSION STATEMENT INTRODUCTION
Coffee Day sources coffee from 5000 acres of coffee estates, the 2nd largest in Asia, that is owned by a sister concern and from 11,000 small growers. It is one of India’s leading coffee exporters with clients across USA, Europe & Japan. With its roots in the golden soil of Chickmaglur, the home of some of the best Indian Coffees and with the vision of a true entrepreneur nurturing it, Coffee Day has its business pning the entire value chain of coffee consumption in India. Its different divisions include: Coffee Day Fresh n Ground (which owns 350 Coffee bean and powder retail outlets), Coffee Day Xpress (which owns 251 Coffee Day Kiosk), Coffee Day Take away (which owns 7000 Vending Machines), Coffee Day Exports and Coffee Day Perfect (FMCG Packaged Coffee) division.
Cafe Coffee Day (CCD) pioneered the cafe concept in India in 1996 by opening its first cafe at Brigade Road in Bangalore. Till about the late 1990’s coffee drinking in India was restricted to the intellectual, the South Indian traditionalist and the five star coffee shop visitor. As the pure (as opposed to instant coffee) coffee cafe culture in neighbouring international markets grew, the need for a relaxed and fun “hangout” for the emerging urban youth in the country was clearly seen. Recognizing the potential that lay ahead on the horizon, Cafe Coffee Day embarked on a dynamic journey to become a large organized retail cafe chain with a distinct brand identity of its own.
From a handful of cafes in six cites in the first 5 years, CCD has become India’s largest and premier retail chain of cafes with 251 cafes in 58 cities around the country. Cafe Coffee Day introduced the cafe culture in India with its first cafe at Brigade Road in Bangalore in 1996. There has been no looking back for their company from then till now, in fact they have grown from strength to strength. Cafe Coffee day is the regular meeting place for 18 to 35 year olds, both male and female, who are waited on by friendly and informed staff, and are offered the best made, hot or cold , in an invigorating ambience. They provide invigorating ambience and excellent customer service clubbed with excellent coffee to their customers. About the Logo
For a brand to stand out and be successful there has to be a personal commitment from staff at all levels. The target customers must identify with it. It should be vibrant and have a “life” of its own. Liveliness, growth, fun and passion depicts the brand, the customers, the staff and the future– this is embodied in this design and colour. Cafe Coffee Day, has unveiled its strategy to strengthen its leadership position with an all new brand identity that syncs with its vision to be the friendly and stylish social hub. Developed from in-depth dialogue with customers, coffee lovers and stakeholders, the new change entails an all new smart menu, changes in furniture design and placement, new uniforms, new cutlery and total cafe rebranding.
The famous Cafe Coffee Day squared logo in its fresh new avatar – a ‘Dialogue Box’ - with the words Cafe Coffee Day written in a distinct, specially created font. The new trendy dialogue logo symbolizes the essence of what a Cafe Coffee Day cafe is all really all about – a perfect place to ‘relax and dialogue’. And as we all know, a lot does happen over coffee! ? BUSINESS ASSOCIATION CCD has emerged as an interactive alternative media for brands to communicate with the ‘young at heart’. Other media, such as electronic, print and outdoor, offer brand communication through visual and audio modes to a large section of the populace, both relevant and irrelevant.
Cafe Coffee Day offers a much more interactive, targeted communication, sometimes adding even a taste dimension to a brand idea! Various in-cafe collaterals used to impart visibility to a brand inside a cafe or to add the element of interactivity to a campaign are Posters, Tent Cards, Danglers, Leaflets, Brochures, Coasters, Drop boxes, Contest Forms, Stirrers, Standees etc. Over the years, CCD has successfully promoted a number of brands/products/events through various innovative tactics and promo ideas. Cashing in on its mass captive audience. ? DEPARTMENTS AT CAFE COFFEE DAY BUSINESS DEVELOPMENT: The team decides upon a suitable site where the cafes can be set up. They identify, shortlist, and finalize a site by negotiating with property owners.
A significant effort is involved in getting legal clearances and statutory compliances. After all formalities are completed, the site is handed over to the projects team. The projects team comprises of some of the best designers who ensure that the coffee culture is spread across the country through beautiful outlets, They are in touch with a lot of property owners who are interested in franchising and licensing CCD. They normally take up places on long lease. All new cafes are built with a standardized design and the look of the cafe is in sync with the brand positioning. They aim to build cafes in the shortest possible time, at the least possible costs to capital outlay. OPERATIONS:
This team achieves their sales objectives and is responsible for the daily running of their cafes in a profitable manner. Customer interaction is very important for this team, as they are the ones who interface with the customer and provide them with a satisfactory service and product experience. Cafe managers train all their employees who are involved in day-to-day operations. The cafe staff is their brand ambassador. The brand image of cafe coffee day is and will be reflected through them by the way they dress, behave and carry themselves , both within the organization and outside. They are the face of the company since they will be the first point of interaction with the customer. FOOD AND BEVERAGES (F & B):
CCD are a lot more than coffee. Apart from serving the best coffee in the country they also serve a wide assortment of savories and desserts. The various coffee concoctions that they serve are the creations of their F&B team. They also ensure the highest level of hygiene and food quality. They impart training to the team on the preparation of the best quality of coffees and food at their cafes. The F&B team sources and manages vendors who supply food to the cafes. •Quality checks Quality checks take place all the time and in several aspects. The operational in-charge will go around checking business, record keeping, service and check the feedback forms.
The food in-charge will look at the way food is being stored, coffee is being made, what is the time take to extract the coffee and so on. Marketing person will go about checking displays, how the merchandise are displayed. MARKETING: The marketing team is responsible for the brand positioning and all brand building activities that result in increased sales and greater visibility. They are also responsible for the various sales promotion activities and tie-ups. This team designs and manages the merchandise category, which is displayed and sold at their cafes. They constantly track loyalty programs and promotions at the cafes to help maximize sales. HUMAN RESOURCE AND TRAINING:
The HR team deals with all matters pertaining to people within their team. They are responsible for recruitment and selection at all levels from team members to the management staff. They are responsible for employee salaries, career development and counseling. Constant efforts are made for employee up gradation in terms of improving skills and job satisfaction to meet the aspirations of all employees. FINANCE / ACCOUNTS: They look after the day to day accounting and financial activities and also provide them with the financial reports, which will help them, find out the profitability of the outlet. They help them reduce the costs and ensure compliance and fiscal discipline at the cafes. ?
QUESTIONNAIRE Name: Age: Occupation: Gender: Question 1: Name any three Cafe Chains that you know. 1. ________________________ 2. ________________________ 3. ________________________ Question 2: How often do you visit a Coffee Shop? ?2-3 times a week ?Once a week ?Once a Month ?Very Rarely Question 3: How much money do you spend on an average visit to a Coffee Shop? ?Less than Rs. 70 ?Rs. 70-120 ?Rs. 120-150 ?Greater than Rs. 150 Question 4: How much time do you spend at a Coffee Shop? ?Less than ? hours ?? to 1 hour ?1 to 2 hours ?Greater than 2 hours Question 5: Why do you go to a Coffee shop? ?Only for the Coffee ?To enjoy and have a Fun filled time To catch up with friends ?For group activities ?Specify if any Other:____________________________ Question 6: What do you look for when you choose a Coffee Shop to go to? ?Convenience ?Ambience ?Service ?Quality of Food ?Price Question 7: What factors according to you are applicable in case of Cafe Coffee Day? ?Convenience ?Ambience ?Service ?Quality of Food ?Price Question 8: Mark the Cafe brands known to you. ?Cafe Coffee Day ?Costa Coffee ?Starbucks ?Barista ?Beans And Brews Question 9: Rank the factors in order of your preference for the following Brands. COSTA COFFEESTARBUCKSBARISTA CONVENIENCE / ACCESSIBILITY AMBIENCE SERVICE QUALITY OF FOOD PRICE
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