What are the 3 Different Types of Coffee Grinders and the best type to Buy? As a coffee Afficionado or even the average coffee drinker. So long as you love homemade coffee and like to make yours at home to your taste. You’re going to rely heavily on coffee grinders as grinding your beans is the first real step you have to take to make coffee at home.
Here are the articles to explain, The 3 Different Types of Coffee Grinders and the Best Type to Buy
When you use a good grinder, you get even grounds and consistent grinding. Which leads to more flavorful cups of coffee with consistent tastes. We have this luxury today, but it hasn’t always been this way.
In the distant past, pestle or stone mortars were used to grind coffee beans before the advent of grinders. Over time, grinders came into existence, and they increasingly became more and more efficient. While incorporating advanced features to make grinding as easy and fast as possible.
Today, we have coffee grinders with different features and methods of grinding, some with simple features, some with advanced features, and commercial-grade super-expensive models with top-of-the-range features.
There’s a huge variety of grinders available today, but they can all stand grouped into two categories. These are the various types I intend to explain to you in this article.
Types of Coffee Grinders
Burr grinders:
This is a type of grinder that uses two burrs to grind beans into fine particles. Burr grinders produce the best results due to the way the burrs work. When the burrs are close to each other, they produce fine grounds and when they are apart, they produce coarse grounds. The grounds get coarser the farther they are from each other.
Burr coffee grinders let you customize your grind settings and pick the number of grounds you want basing on the number of cups of coffee you wish to brew. This type of grinder is usually run by an electric motor, but there are manual models available on the market being sold at cheaper prices.
There are two types of burr models – flat and conical. These only differ by the type of burr they have, which results in several more differences between each type.
Blade grinders:
As the name implies, blade models use blades to crush coffee beans into smaller particles for brewing. Because they use blades, the results they produce are inferior to that of burr models. They produce less evenly sized particles, which means some particles are larger than others, and this can affect the taste of your coffee unfavorably.
Also, with blade grinders, you can’t select a grind size or customize your grind settings. You just keep grinding and grinding until you get the result you want. If you want to find grounds, you may need to grind your beans multiple times.
That said, blade models are cheaper than burr ones because they cost less to produce and offer fewer features. Just like their burr counterparts, they are available in electric and manual models.
Built-in Grinders:
Depending on the type of coffee you like to brew, you may or may not need a separate grinder. For most brewing methods, you’ll need one, but if you love espresso or espresso-based drinks like cappuccinos, there are espresso machines that come with built-in burr grinders. If you haven’t already bought an espresso machine, you can save some money and buy a model that comes with a built-in grinder. There are drip coffee makers with in-built grinders too.
The Best Type of Coffee Grinder to Buy
If you read without skimming, you probably already know what type is the best to buy. Burr grinders are vastly superior to blade ones if you’re serious about making great homemade coffee. This is the only type you should be considering unless you’re limited by your budget.
If you don’t really care about the quality of your brews and just want to have your coffee fixed every morning and get on with your life, then a blade grinder should be good enough to meet your needs.
The case study on the multinational brand Nestle, which occurs to be an FMCG international large displays the techniques and well-designed plans of the corporation whereby it tries to shift its photo from a meals organization to that of a diet fitness and welfare company. The motto of the enterprise has been that of correct food. The top existence has similarly prolonged the place the corporation appears ahead to coming into the area of fitness. And vitamin merchandise that will embody merchandise such as baby food, and weight loss plan food. And additionally that of healthcare products.
Here are the articles to explain, A Case Study on Nestle a Multinational Brand Company
In the process, we see that the business enterprise in its system of diversification of its merchandise has additionally at instances failed to attain its targets. However, the customary shape of the enterprise occurs to be massive and adequate to assist the enterprise in holding. Its function as the main healthcare enterprise in the world with some of the most mentioned and profitable brands.
Main Essay:
The case study reveals the well-calculated plans of the company Nestle. Where it had made conscious efforts that would change its very image in the market. It has been reflected through the case study that the then ongoing image where Nestle happened to be a leading brand worldwide in the field of food products looked forward to entering the field of healthcare food products and also dominating the market in the coming period. Hence Nestle soon embarked upon a marketing strategy through which it could extensively change its image. And develop an image of a nutrition, health, and welfare fostering company through the tool of its products.
Hence quite Nestle set forward to take up various measures to effect the same. In the process, Nestle did and tried several different tactics to achieve the same. It changed the composition of its products by eliminating excess sugar and salts and fats and by incorporating more healthier nutrients into its products. Once again we also see that Nestle embarked upon a method or business pattern of a large number of acquisitions. Through these acquisitions, Nestle tried to buy over certain reputed names in the healthcare product industry and enter the arena on a global scale. It made some very huge investments in the process of these mergers and acquisitions.
Essay Part 01:
In this context, one point that can mention could have been a pressing concern for the company. Especially during the years that immediately preceded the financial crisis era. The case study reveals that in the year 2005 Nestle did make drive the market for healthcare products and nutrition food. Which was when the company had to make some huge investments. However as even mentioned by the experts the company could not expect any immediate returns or profits from these investments. The company had to struggle considerably to push the volume of its sales. And face stiff competition from the already existing big layers of the said industry.
Another point that happens to be an addition to the mentioned point is that in the effort of being a world player in the NHW segment the company did make huge and well-diversified investments. This also could have posed a challenge to the company, especially during the recession period. We also see that as mentioned by the then CEO Bulcke, maintaining the company’s position in those challenging times happened to be quite critical. In those times we see that the company had taken a strategy that tried to maintain. Its market index also increases the sales and business volume as far as possible.
Essay Part 02:
We do see that in the strive of being a world-renowned NHW segment company and of changing the brand image of the company. The management of the company had invested heavily in various measures of entering the industry of NHW and of fortifying its market position in the company in the said industry segment. In comparison, the same not as aggressive stance stood taken by the company in boosting its sales vigor. And taking equally dynamic marketing endeavors. As result, we see that the company even failed to achieve its said initial targets. Which it had set for itself when it entered the NHW sector.
Once again we also see that the company at least to some extent did digress away from it. Its path of being an NHW company when it also bought some fast food chains. This the company said was a calculated measure. Since it could not do away with the strategy of being a diversified company. However, the company did induce certain health measures into the fast food items. And did incorporate some healthy items into the menu preparations.
It can say that the mission of the company happened to be of providing its customers with good taste and a healthy lifestyle through its products. To implement the same to an excelled level and to make a mark in the market in the long run the company did embark. This journey of entering the health and nutrition products. In doing so we see that the company stood faced with a series of advantages that arose. Its strengths and also disadvantages arose from its weaknesses. In the following part of the discussion we take a look at both of the considerations:
Advantages:
The company that is Nestle happens to be a big name. Which ensures that the brand already has an acknowledgment in the market. And the consumers or the retailers do not need to be brief regarding the profile of the company. This facet was a particular strength of the company that enabled a certain percentage of market penetration.
The company had enough capital power which could enable the company to indulge in strategies of acquisition and elaborate R&D endeavors.
Nestle was already in the food industry, which gave it considerable leverage.
Disadvantages:
The company went into a very elaborate process and method of acquisition and mergers. Which ate into a considerable amount of its financial resources of the company. This could have posed a challenge during the financial crunch period.
Nestle in its strive to be a world leader in the arena of the NHW sector did not put enough stress on the marketing part. Which led to the loss of target achievement.
It did pose a contradictory figure when the brand bought over fast food item chains. It helped its critics criticize its image as an NHW company.
Finale:
Quite surely the strategy of Nestle to enter the NHW sector was a well-tailored plan that will yield high returns in the future, nevertheless, a more profit-oriented endeavor could have helped the company overcome the revenue issues that did surface during its transition phase.
Suggestion:
It could recommend to the company that the brand instead of trying various products in the NHW field could single out a more streamlined array of products on which the company will try to concentrate during its initial period of entering the NHW industry or market segment. This would also help the company streamline its marketing procedure and the company can adopt more aggressive marketing endeavors that will help the company achieve better sales volumes. With time these returns could again be profitably used in the R&D endeavors that will help the company come up with better and improved brands and also at the same point establish itself as a global, market leader.
Starbucks Mobile Payment Application App Case Study; Starbuck’s innovative value proposition includes a wide variety of mostly coffee-based menus along with other types of drinks that catered to a wide range of audiences; who are willing to pay top buck for the luxurious and relaxed interiors that are the perfect environment for socializing with friends and relax. Starbucks successfully created an aspirational brand that created highly loyal; and, delighted customers who repeatedly come to Starbucks for the unique experience it is offering. Do you study to learn: If Yes? Then read the lot. Let’s Study: The Case Study of the Starbucks Mobile Payment Application App.
How to achieve the SUCCESS of the Starbucks Mobile Payment Application App? So read the case, The Case Study of the Starbucks Mobile Payment Application.
Starbucks redefined the highly competitive coffee shop business and successfully created an uncontested market by turning the simple coffee drinking experience into a way of life experienced by drastically redefining the coffee shop environment by adding music, Wi-Fi, relaxed seating, and luxurious interiors. Till Starbucks disrupted the traditional coffee shop market most of the focus was on the price, location, and quality of coffee shops. Another important aspect that Starbucks focused on was the quality of customer service with an exclusive aim of maximum customer delight and they meticulously recruited; and, trained the best talent in the industry that has added huge value to their brand reputation.
Starbucks customers loaded more than $1.2 billion on its Starbucks app – that’s more money than some banks! The Starbucks app has strategically outcompeted mobile payment offerings from tech giants such as Apple and Google so far. The reason behind the app’s success is simple: Starbucks combined their gift card; and, loyalty programs into an app optimized for mobile payment. Instead of trying to keep payment exclusive to a particular phone or operating system or brand. The Starbucks mobile app is widely available on both iOS and Android, a Case Study. Automatically this opens up the potential market share and user base to everyone with a smartphone.
History:
The Starbucks coffee shop for the year has been successfully maintaining its dominant position in the market; although the market is becoming highly competitive with many players offering to offer similar products and services similar to Starbucks. Strong competition has also increased with fast-food chains such as McDonald’s and Dunkin Donuts; which now offer premium coffee, threatening the market share of established players. To capture its competitive advantage and to create a new value proposition for its customers; Starbucks has started focusing on information technology, mobility, and the use of social media in particular. What is the Growth Strategy for Case Study Starbucks?
App services:
Such an innovative price proposal by Starbucks is a mobile payment application. Starbucks launched its mobile card app in 16 stores at the beginning of 2009; and, after the adoption of the customer, Starbucks expanded it across the nation in the United States. The main feature of the app allows customers to scan 2D barcodes on their mobile device; and, use them as a store payment. The app is expanding Starbucks’s existing, tangible, prepaid reward cards for loyal customers.
The app market bases on its benefits in saving time and facilitating shopping for customers. Starbucks refers to the app as “the fastest way to pay”. With this app, customers can check their balance; reload the card with any major credit card or PayPal; see the transaction, and easily track your stars in the MSR (My Starbucks awards) Can, program. The advantages are speed for consumers and there is a low card in their pocket. Customers using the app can also find a mobile payment Starbucks near their location.
Payment Services:
The Starbucks mobile payment system is extremely successful base on the fact that in the US; the US $ 1.5 billion average weekly transactions that are responsible for a full 15% of the transaction make in US Starbucks-powered stores; many digital wallets Service providers are struggling according to BI Intelligence. The innovative mobile app has digital tipping options; the dashboard is showing current reward or loyalty points level; available points with current transactions, weeks of coffee selection, recent transactions, and messages.
Social Media:
The Starbucks mobile payment application can also integrate with social media sites like Facebook, Twitter, where customers can proudly show their reward level milestones with their friends and family. Important Case Study in Corporate Social Responsibility of Coffee Starbucks. This will further enhance their brand reputation and brand loyalty. By shaking the phone, customers can select the barcode of coffee; which they want to buy and want to pay accordingly. The app model on the social media site interface where customers can see the regular purchase of Starbucks coffee and reward-style history and award points in the timeline.
By developing mobile marketing programs it seems to present a further opportunity for Starbucks to fortify the targeted long-term relationships with its customers. Customers allow Starbucks to gain access to their mobile phones in exchange for improved experience and convenience. Thus, perceived benefits have to exceed perceived risks such as the safety of personal data; as well as, the security of financial transactions via mobile phones.
Markets:
Starbucks’ disruptive mobile strategy integrated its highly successful loyalty program called My Starbucks Rewards with payments by customers. Starbucks further incentivizes the customers who habitually buy and pay through the mobile app and more reward points are the award that is redeeming for free drinks and food. The app’s success is not due to the ease of payment with a phone compare to cash or debit or credit card but the fact the customer can see the incentives and rewards he is going to get that will further increase his loyalty with Starbucks. In a way, Starbucks is locking the customer for the near future. Starbucks loyalty program was diligently crafted over the years and it has been the best in the coffee shop industry or any other industry. Also, learn about – Market Research Coffee of “Starbucks” Entry into China.
With more than 12 million active users in the United States and Canada, Starbucks has added one more new feature where customers can preorder their coffee using the mobile app and pick up the coffee later. “A prime example of this is our forthcoming mobile order and pay initiative that will allow customers to use their phones and MSR (My Starbucks Rewards) accounts to order ahead of arriving at a store where we plan to pilot in a major U.S. market later this year,” said Howard Schultz, Starbucks CEO.
Customer Need:
Customers wanted this functionality of preorder through mobile for the past few years, particularly since the mobile-based cab hailing service Uber huge success. The Coffee company is able to offer this service right now as the company feels its technology and in-store operations are well equipping to handle such requests. Also, expanding the number of drive-through express service outlets that are the best suite for the preorder system. Starbucks is also, talking to partners and other businesses like retail outlets that will also allow the customers to use their mobile application payment system, rewards system, and loyalty programs in non-Starbucks outlets.
Through its mobile payment system Starbucks eliminated the need to carry cash, coin change issues, tipping problems, reduced the time spent on ordering and making coffee, understanding the menu and coffee types, offers and rewards available, raised the customer delight, loyalty and rewards, number of visits, new customers and created a new revenue source for the company, helped in acquiring new customers and also created a uncontested space in the digital wallet market.
Case Study of the Starbucks Mobile Payment Application App.
Case Study Starbucks Growth Strategy; Today, Starbucks coffee shops and Kiosks can found in a variety of shopping centers, office buildings, bookstores, and other outlets. Starbucks is capitalizing on taste changes that predate the company’s founding. In the early 1960s, American adults consumed an average of three cups of coffee each day. Today, consumption has declined to less than two cups, with only half of American adults as coffee drinkers. Also learn, Starbucks’Entry to China, What is the Growth Strategy for Case Study Starbucks?
Studies, Learn, The Growth Strategy for Case Study Starbucks!
During this time, decaffeinated coffee sales soared. In addition, a new category of intensely loyal coffee drinkers was born. This group of adults consumes “specialty” or “premium” coffees, including regular and decaffeinated versions with a variety of origins and flavors. Sales of specialty coffee have climbed from about $45 million annually to more than $2 billion today, accounting, for about 20 percent of all coffee sales.
Because Starbucks markets whole beans and coffee beverages, its competition comes from two distinct groups of firms. A number of regional coffee manufacturers distribute premium coffees in local markets, while several large national coffee manufacturers such as Nestle, Proctor & Gamble, and Kraft General Foods market and distribution specialty coffees in supermarkets. Coffee beverages are distributing by restaurants, grocery stores, and coffee retailers. Seattle’s Best Coffee is a fierce competitor.
The case of History!
In 1971, three academics, English Teacher Jerry Baldwin, History Teacher Zel Siegel, and writer Gordon Bowker opened Starbucks Coffee. Tea and Spice in Touristy Pikes Place Market in Seattle. The three were inspired by entrepreneur Alfred Peet (whom they knew personally) to sell high-quality coffee beans and equipment. The store did not offer freshly brewed coffee by the cup, but tasting samples were sometimes available.
Siegel will wear a grocers apron, scooped out beans for customers. While the other two kept their day jobs but came by at lunch or after work to help out. The store was an immediate success, with sales exceeding expectations, partly because of interest stirred by the favorable article in Seattle Times.
Other things:
Starbucks ordered its coffee-bean from Alfred Peet but later on, the three partners bought their own used roaster setting up roasting operations in a nearby ramshackle building and developed their own blends and flavors. By the year 1980s, the company had four Starbucks Stores in the Seattle area and had been profitable every year. Later on, Siegel left the company and Jerry Baldwin took over day-to-day management of the company. Gordon Bowker remained as an owner but devoted most of his time in his Design Firm.
In 1981, Howard Schultz, the vice president of U.S operations for Swedish Maker of stylish kitchen equipment and coffeemakers decided to pay Starbucks a visit. He was curious about why Starbucks was selling so many of his company products. He was impressing with the company management and the quality products they make. Schultz asked Baldwin whether there was any way he could fit into Starbucks and it took a long time to decide his request. He tries many times until one day he was given a job of heading marketing and overseeing the retail stores.
The case of Challenges:
What are some of the challenges associated with Starbucks aggressive growth strategy?
Could an unanticipated change in coffee consumption patterns disrupt Starbucks in the same way that it paved the way for the company’s growth in the 1980s?
What problems might arise from Starbucks’ efforts to expand rapidly into nations such as India?
Comment on the pricing strategies of Starbucks.
How would you see the competition of Starbucks in India, with players like Costa Coffee, Mc Donalds, Barista and Café Coffee Day? Draw out a competitive strategy for Starbucks.
Here are Some More Knowledge these Case for better Understand.
Howard Schultz spent most of his working hours in the four stores learning the retail aspects of the company business; Schultz was overflowing with ideas for the company. His biggest inspiration and vision for Starbucks future came during 1983 when the company sent him for an international housewares show to Milan, Italy. There he spotted an espresso bar and went to take a coffee.
H. Schultz was impressed with the coffeehouse services and decided to stay at Milan for a week to explore. All coffee bars and learned as much as he could about the Italian passion for coffee drinks. He made a decision to serve fresh brewed coffee, espressos, and cappuccinos in its stores and try to create an American version of Italian coffee bar culture.
Schultz shared his idea with Baldwin and it took nearly a year to convince Jerry Baldwin to let him test an espresso bar. In April 1984, the first espresso bar was opened and it was a success too. Yet Baldwin felt something is wrong. After Schultz failed to convince Baldwin for the expansion of business, he left Starbucks in 1985. Schultz started the “Il Giornale” coffee bar chain in 1985 and the coffeehouse was very successful.
In 1987 Starbucks owner Jerry Baldwin and Bowker decide to sell the whole Starbucks chain to Schultz’s Il Giornale. Which rebranded the Il Giornale outlets as Starbucks and quickly began to expand. Starbucks opened its first locations outside Seattle at Waterfront Station in Vancouver, British Columbia, and Chicago, Illinois, that same year. At the time of its initial public offering on the stock market in 1992, Starbucks had grown to 165 outlets.
The growth of Coffee Stores!
In 2009 The Company plans to open a net of 900 new stores outside of the United States. Chairman Howard Schultz projects that the Starbucks mobile app will grow from its present 6,000 stores to more than 20,000, 75 percent of which are in the United States. Also, The company added 280 intentional locations in 2001 and is targeting. With an additional 650 stores in Europe by 2004 and 900 locations in Latin America predominantly Mexico by 2005, Starbucks is also moving into China.
Retail stores account for more than 80 percent of revenues, with specialty operations accounting for the remainder. Starbucks Corporation is an American coffee company and coffeehouse chain. Starbucks was founded in Seattle, Washington in 1971. As of 2017, the company operates 27,339 locations worldwide. Also, Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s.
Location:
The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. Also, The company opened an average of two new locations daily between 1987 and 2007. Starbucks considers the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee.
Since the 2000s, third wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons. On December 1, 2016, Howard Schultz announced he would resign as CEO effective April 2017 and would replace by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017.
What is the Growth Strategy for Case Study Starbucks?
Starbucks Case Study; It is the world’s largest and most popular coffee company. Case Study; Since the beginning, this premier café has aimed to deliver the world’s finest fresh-roasted coffee. Corporate Social Responsibility of Starbucks Coffee, Case Study; Today the company dominates the industry and has created a brand that is tantamount to loyalty, integrity, and proven longevity. Starbucks is not just a name, but a culture.
Case Study in Corporate Social Responsibility of Coffee Starbucks!
It is obvious that Starbucks and its CEO Howard Shultz are aware of the importance of corporate social responsibility. We try to explain the case study of Corporate Social Responsibility of Starbucks Coffee; Every company has problems they can work on and improve in and so does Starbucks. As of recent, Starbucks has done a great job showing their employees how important they are to the company. Along with committing to every employee, they have gone to great lengths to improve the environment for everyone.
Ethical and unethical behavior is always a hot topic for the media, and Starbucks has to be careful with the decisions they make and how they affect their public persona. The corporate social responsibility of the Starbucks Corporation addresses the following issues: Starbucks’ commitment to the environment, Starbucks’ commitment to the employees, Starbucks’ commitment to consumers, discussions of ethical and unethical business behavior, and Starbucks ‘ commitment and response to shareholders. The following Corporate Social Responsibility of Starbucks Coffee few explain below are;
Commitment to the Environment.
The first way Starbucks has shown corporate social responsibility is through its commitment to the environment. To improve the environment, with a little push from the NGO, Starbucks’ first main goal was to provide more Fair Trade Coffee. What this means is that Starbucks will aim to only buy 100 percent responsibly grown and traded coffee. Not only does responsibly grown coffee help the environment, but it also benefits the farmers as well. Responsibly grown coffee means preserving energy and water at the farms.
In turn, this costs more for the company overall, but the environmental improvements are worth it. Starbucks and the environment benefit from this decision because it helps continue to portray a clean image. Another way to improve the environment directly through their stores is by “going green”. Their first attempt to produce a green store was in Manhattan. Starbucks made that decision to renovate a 15-year-old store. This renovation included replacing old equipment with more energy-efficient ones.
To educate the community, they placed plaques throughout the store explaining their new green elements and how they work. This new Manhattan store now conserves energy, water, materials, and uses recycled/recyclable products. Twelve stores total plan to be renovated and Starbucks has promised to make each new store LEED, meaning a Leader in Energy and Environmental Design.
LEED improves performance regarding energy savings, water efficiency, and emission reduction. Many people don’t look into environmentally friendly appliances because the upfront cost is always more. According to Starbucks, going green over time outweighs the upfront cost by a long shot. Hopefully, these new design elements will help the environment and get Starbucks ahead of their market.
Commitment to Consumers.
The second way Starbucks has shown corporate social responsibility is through their commitment to consumers. The best way to get the customers what they want is to understand their demographic groups. By doing research on Starbucks’ consumer demographics, they realized that people with disabilities are very important. The company is trying to turn stores into a more adequate environment for customers with disabilities.
A few changes include: lowering counter height to improve ease of ordering for people in wheelchairs, adding at least one handicap accessible entrance, adding disability etiquette to employee handbooks, training employees to educate them on disabilities, and by joining the National Business Disability Council. By joining the National Business Disability Council, Starbucks gains access to resumes of people with disabilities.
Another way Starbucks has shown a commitment to the consumers is by cutting costs and retaining loyal customers. For frequent, loyal customers, Starbucks decided to provide a loyalty card. Once a customer has obtained this card, they are given incentives and promotions for continuing to frequent their stores. Promotions include discounted drinks and free flavor shots to repeat visitors.
Economy talk:
Also, with the economy being at an all-time low, Starbucks realized that cheaper prices were a necessity. By simplifying their business practices, they were able to provide lower prices for their customers. For example, they use only one recipe for banana bread, rather than eleven!
It doesn’t end there either! Starbucks recognized that health is part of social responsibility. To promote healthier living, they introduced “skinny” versions of most drinks, while keeping the delicious flavor. For example, the skinny vanilla latte has 90 calories compared to the original with 190 calories. Since Starbucks doesn’t just sell beverages now, they introduced low-calorie snacks. Along with the snacks and beverages, nutrition facts were available for each item.
Also, one big way to cut costs was outsourcing payroll and Human Resources administration. By creating a global platform for its administration system, Starbucks is able to provide more employees with benefits. Plus, they are able to spend more money on pleasing customers, rather than on a benefits system.
Commitment and Response to Shareholders.
One way Starbucks has demonstrated its commitment and response to shareholder needs is by giving them large portions. By large portions, Starbucks is implying that they plan to pay dividends equal to 35% or higher of net income. For the shareholders, paying high dividends means certainty about the company’s financial well-being. Along with that, they plan to purchase 15 million more shares of stock, and hopefully, this will attract investors who focus on stocks with good results.
Starbucks made its commitment to shareholders obvious by speaking directly to the media about it. In 2004, Starbucks won a great tax break, but unfortunately, the media saw them as “money-grubbing”. Their CEO, Howard Shultz, made the decision to get into politics and speak to Washington about expanding health care and the importance of this to the company. Not only does he want his shareholders to see his commitment, but he wants all of America to be able to reap these benefits.
In order to compete with McDonald’s and keeping payout to its shareholders high, Starbucks needed a serious turnaround. They did decide to halt growth in North America but not in Japan. Shultz found that drinking coffee is becoming extremely popular for the Japanese. To show shareholders there is a silver lining, he announced they plan to open “thousands of stores” in Japan and Vietnamese markets.
Commitment to Employees.
The first and biggest way Starbucks shows their commitment to employees is by just taking care of their workers. For example, they know how important health care, stock options, and compensation are to people in this economy. The Starbucks policy states that as long as you work 20 hours a week you get benefits and stock options. These benefits include health insurance and contributions to the employee’s 401k plan.
Starbucks doesn’t exclude part-time workers, because they feel they are just as valuable as full-time workers. Since Starbucks doesn’t have typical business hours like an office job, the part-time workers help to work the odd shifts. Another way Starbucks shows its commitment to employees is by treating them like individuals, not just number 500 out of 26,000 employees. Howard Shultz, a CEO, always tries to keep humanity and compassion in mind.
When he first started at Starbucks, he remembered how much he liked it that people cared about him, so he decided to continue this consideration for employees. Shultz feels that the first impression is very important. On an employee’s first day, he lets each new employee know how happy he is to have them as part of their business, whether it is in person or through a video.
His theory is that making a good first impression on a new hire is similar to teaching a child good values. Through their growth, he feels each employee will keep in mind that the company does care about them. Shultz wants people to know what he and the company stand for, and what they are trying to accomplish.
Ethical/Unethical Business Behavior.
The last way Starbucks demonstrates corporate social responsibility is through ethical behavior and occasional unethical behavior. The first ethically positive thing Starbucks involves itself in is the NGO and Fair Trade coffee. Even though purchasing mostly Fair Trade coffee seriously affected their profits, Starbucks knew it was the right thing to do. They also knew that if they did it the right way, everyone would benefit, from farmers to the environment, to their public image.
In the fall of 2010, Starbucks chose to team up with Jumpstart, a program that gives children a head start on their education. By donating to literacy organizations and volunteering with Jumpstart, Starbucks has made an impact on the children in America, in a very positive way.
Of course, some negatives come along with the positives. Starbucks isn’t the “perfect” company like it may seem. In 2008, the Starbucks mobile app decided to close 616 stores because they were not performing very well. For Starbucks to close this many stores in one year, they had to battle many landlords due to the chain breaking lease agreements. Starbucks tried pushing for rent cuts but some stores did have to break their agreements.
Other thing:
On top of breaching lease agreements, Starbucks was not able to grow as much as planned, resulting in their future landlords were hurting as well. To fix these problems, tenants typically will offer a buyout or find a replacement tenant, but landlords are in no way forced to go with any of these options. These efforts became extremely time-consuming and costly, causing Starbucks to give up on many lease agreements.
As for Starbucks ethical behavior is a different story when forced into the media light. In 2008, a big media uproar arose due to them wanting to re-release their old logo for their 35th anniversary. The old coffee cup logo was basically a topless mermaid, which is Starbucks’ opinion is just a mythological creature, not a sex symbol.
Media critics fought that someone needed to protect the creature’s modesty. Starbucks found this outrageous. To end the drama and please the critics, they chose to make the image more modest by lengthening her hair to cover her body and soften her facial expression. Rather than ignoring the media concerns, Starbucks met in the middle to celebrate its 35th anniversary. Maybe you definitely understand above the information and case study of Corporate Social Responsibility of Starbucks Coffee.
Case Study in Corporate Social Responsibility of Coffee Starbucks!
Starbucks’ Entry into China: How to Starbucks Corporation is an American coffee company and coffeehouse chain? Market Research Coffee of Starbucks‘ Entry into China, Starbucks was founded in Seattle, Washington in 1971. As of November 2016, it operates 23,768 locations worldwide. Also, Starbucks considers the main representative of “second wave coffee”, initially distinguishing itself from other coffee-serving venues in the US by taste, quality, and customer experience while popularizing darkly roasted coffee. Since the 2000s, third-wave coffee makers have targeted quality-minded coffee drinkers with hand-made coffee based on lighter roasts, while Starbucks nowadays uses automated espresso machines for efficiency and safety reasons.
Here is the article to explain, Market Research Coffee of Starbucks’ Entry into China!
Starbucks locations serve hot and cold drinks, whole-bean coffee, Micro ground instant coffee known as VIA, espresso, caffe latte, full- and loose-leaf teas including Teavana tea products, Evolution Fresh juices, Frappuccino beverages, La Boulange pastries, and snacks including items such as chips and crackers, the article defines how to Entry into China; some offerings (including their annual fall launch of the Pumpkin Spice Latte) are seasonal or specific to the locality of the store. Also, many stores sell pre-packaged food items, hot and cold sandwiches, and drinkware including mugs and tumblers; select “Starbucks Evenings” locations offer beer, wine, and appetizers. Starbucks-brand coffee, ice cream, and bottled cold coffee drinks also sold at grocery stores, Market Research.
Starbucks first became profitable in Seattle in the early 1980s. Despite an initial economic downturn with its expansion into the Midwest and British Columbia in the late 1980s, the company experienced revitalized prosperity with its entry into California in the early 1990s. The first Starbucks location outside North America opened in Tokyo in 1996; overseas properties now constitute almost one-third of its stores. The company opened an average of two new locations daily between 1987 and 2007. On December 1, 2016, Howard Schultz announced he would resign as CEO effective in April 2017 and will replace by Kevin Johnson. Johnson assumed the role of CEO on April 3, 2017.
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Starbucks has developed an internationalization strategy to enable the company to open stores and franchises in countries across the globe. Market research is at the core of many of the market entry strategies Starbucks is employing. Also, This case study will consider how market research has strengthened Starbucks ‘ entry into the Chinese markets.
Market Research: Starbucks International Business Strategy.
Starbucks entry into emerging and developed markets inform by market research.
Starbucks conducted market research to enable a deeper understanding of the Chinese markets, and the way that capitalism functions in the People’s Republic of China (PRC). Also, China contains a number of distinct regionally-based markets, a factor that makes market research crucial to launching new stores and franchises in China. A deep understanding of intellectual property right laws is critical to successful market entry in emerging markets.
Starbucks articulate an entry strategy that would address the dominant Chinese markets and that was design to as inoffensive concerning the Chinese culture as possible. Instead of taking the conventional approach with advertising and promotions — which could have seen by potential Chinese consumers as attacking their culture of drinking tea –, they position stores in high-traffic and high visibility locations.
Moreover, Starbucks very deliberately began to bridge the gap between the tea-drinking culture and the coffee drinking culture by introducing beverages in the Chinese stores that included local tea-based ingredients. Also, Market research supports the development of Starbucks’ competitive internationalization strategy. The overarching competitive strategy was to create an aspirational brand. Prospective Starbucks customers in China could look forward to what Starbucks refers to as The Third Place experience.
The Starbucks experience conveys status that is highly appealing to those aspiring to Western standards or to climbing the ladder in their own culture. Also, Market research indicates that brand consistency is important to Starbucks’ customers. When Starbucks opens a new store in an emerging market like China, the best baristas are sent for the launch and to conduct training of the baristas who will carry on when once the launch has completed.
Market Research Addresses the Emerging Market Political Environment.
Market research help to identify the attributes of capitalism in the Peoples’ Republic of China (PRC). Also, The middle class in China has rapidly accepted Western standards as an acceptable standard of the bourgeois class. Moreover, Chinese consumers accept purchases of luxury goods as a means of pursuing quality lifestyles. Under the influence of Communism, the Chinese considered conspicuous consumption to be decadent or indicative of a lack of a nationalistic orientation.
Capitalism in The Peoples’ Republic of China supports the status-conscious population that manifests its interest in keeping up with the Jones’ through excessive luxury consumption. The Chinese government’s support of luxury consumption is particularly apparent in certain cities in China. The second-tier city of Chengdu serves as a market research case study in Chinese governmental support of capitalism.
Chengdu promotes capitalism at a level evidenced by the presence of stores like Louis Vuitton and Cartier in its downtown. According to the Chengdu Retail Industry Association. Also, The stores selling 80 percent of international luxury brands are located in Chengdu. And the city ranks just third in luxury sales after Beijing and Shanghai. It is easy to see how this national orientation toward luxury goods extends to the Starbucks mobile app brand. Which is characterized by a certain degree of exclusivity.
Market Research Reveals Attributes of Emerging Market Legal Environment.
It is essential to understand the intellectual property rights laws and licensing issues when planning market entry in an emerging market. Also, Starbucks has used intellectual protection laws to prevent its business model and brand from being illegally copied in China.
Four years after opening its first café in China – in 1999 – Starbucks had registered all its major trademarks in China. A number of Chinese businesses have overstepped legal bounds in their efforts to mimic the successful Starbucks model.
The organization and structure of Starbucks’ global operations were informed by market research. The organizational strategies employ by Starbucks were derive from Starbucks’ experiences in other emerging markets support an early recognition that China is not one homogeneous market. Also, The organizational strategies employed by Starbucks addressed many Chinese markets.
The culture dominant in northern China differs radically from the culture in the eastern parts of China. As reflected in the differences in consumer spending power inland which is considerably lower than the spending power in coastal cities.
Starbucks market area:
The complexity of the Chinese markets led to regional partnerships to aid in Starbucks’ plans for expansion in China; the partnerships provided consumer insight into Chinese tastes and preferences that helped Starbucks localize to the diverse markets.
Northern China: Joint venture with Beijing Mei Da coffee company
Eastern China: Partnered with Taiwan-based Uni-President
Southern China: Worked with Maxim’s Caterers in Hong Kong
Starbucks’ competitive advantage is built on product, service, and brand attributes. Many of these have shown through market research to important to Starbucks’ customers. Western brands have an advantage over local Chinese brands. Because of a commonly accepted reputation for consistently higher quality products and services. A factor that establishes the Western brands as premium brands in the minds of consumers.
When Western brands attempt to increase market share by cutting prices. They erode the very competitive strategy that gives them an edge in consumer perceptions. Moreover, Western brands cannot effectively maintain a lower pricing strategy than local Chinese brands. Maintain brand integrity in new markets. Also, Starbucks’ global brand is valuable, and maintaining brand integrity is a fundamental focus in Starbucks’ internationalization efforts.
Starbucks brand ambassadors:
The baristas in China acted as brand ambassadors to help embed the Starbucks culture in the new market. Ensure, that high standards for customer service and product quality maintain at each new and established local store. Also, Starbucks’ ability to address changing markets hone by effective and ongoing market research. Establishing and maintaining a global Starbucks brand does not mean having a global platform or uniform global products.
Their marketing strategy in China was base on customization in response to diverse Chinese consumer target segmentation. Also, Starbucks created extensive consumer taste profile analyses that are sufficiently agile to enable them to change with the market. And to create an attractive East meets West product mix. Moreover, the localization effort is sufficiently flexible to permit each store, the flexibility to choose from a wide beverage portfolio.
Market Research Coffee of Starbucks’ Entry into China!
The Starbucks Entry to China; Starbucks is one of the largest coffee chains in the World. A Case Study of Starbucks Entry to China, so, the company has a unique style and atmosphere in its coffee houses. We chose China because it is the world’s most populous country with over 1.3 billion people live there and the second-largest country by land area. After 1978, the country’s economy underwent dramatic changes which involved such relief as permission for entrepreneurs to start up. Their own business and opening the country for foreign investment. Starbucks managers decided to take advantage of such an opportunity to expand their business into the new region. To evaluate the Chinese market the company used several steps of analysis. Also learn, What is the Growth Strategy for Case Study Starbucks? Case Study of Starbucks Entry to China with Marketing Strategy!
Case Study on Starbucks Entry to China with Marketing Strategy!
The following case study explain below are;
Who might be interested in buying coffee in China?
To introduce the Starbucks brand the company begun to distribute coffee for free to guests in several Beijing’s hotels in 1994. This initiative indicated that there was a strong demand for their products, particularly among foreigners in China. Local people, who strived to imitate the Western lifestyle. Also showed interest in coffee drinking. Also, the young generation was enchantment by brands and products from the West. These factors led Starbuck’s managers to learn and understand more about the business climate in that Asia country.
Next step for Starbucks:
Starbucks was to determine the financial and economic conditions of China. The company’s managers were aware that the Chinese Gross Domestic Product (GDP) continuously grew approximately 9 % on average and a GDP per capita was US$3.800. All these factors led to the rising income of the middle class. That was an undoubted advantage for entering the Chinese market for Starbucks.
Third level of screening:
At the third level of screening, Starbucks faced political restrictions. China is a highly bureaucratic country with difficult processes of getting permissions and sanctions to start and run the business. To avoid these challenges the company built and maintain. The firm relationship with Chinese local partners as well as government officials. Also, Starbucks Soong Ching-Ling Foundation received $5 million donations from Starbucks to support education in the country’s poorest regions.
Fourth level of screening:
The fourth level of screening involved socio-cultural forces. It showed the biggest challenges for Starbucks, because of the old tradition of tea drinking in China. In the beginning, managers didn’t know how to accustomed Chinese to drink and appreciate coffee. To acquaint employees and Chinese executives with coffee drinking experience Starbucks provided different training programs for them in which they learned more about coffee and Starbucks’ culture. The same way the company taught customers about different flavors and types of coffee. Another aspect was Chinese shopping behavior which was different from the US market. People in China spent the main slice of their monthly budget on food. This also led to success for the company.
Fifth level of screening:
The fifth level of China screening was focused on competitive forces. As we mentioned before China is a tea country and the share of coffee was low. Little or no competition for Starbucks was considered as an advantage. Chinese people were familiar only with one international brand which was Nestlé’s Nescafe. However, Nescafe is not a coffee house like Starbucks. As regards local competitions, it was a well-known Chinese brand Li Shen and Japanese brand Zhen Gou Coffee.
Starbucks Entry to Chinese Market!
“Starbucks Entry to China” Although Starbucks encountered several challenges in the process of entering the Chinese market, with their case study. They had successfully expanded its business in over 20 large or medium-sized cities of China and opened about 560 storefronts in these cities by 2012. The astonishing achievement owes to its careful marketing assessment and various marketing strategies in different periods. These strategies mainly refer to 2 different modes of entering foreign markets: licensing agreement and joint venture.
Licensed agreement of Starbucks!
In 1998, Starbucks adopted the mode of licensing agreement to license its Chinese partner (Beijing Mei Da), a wholesale distribution company to supply coffee beans to some selected hotels and restaurants. Starbucks realized that local partners can have the best understanding of local cultures customers and some related laws. and they have already established a good relationship with the local government. So it was easy to obtain the permissions and sanctions required to start and operate the business in a bureaucratic country like China. Moreover, Starbucks could also maintain a high standard on the control of production, and achieve an ideal revenue in the Chinese market. So licensing agreement was an optimal option for Starbucks to enter into a booming China’s market in the mid-1990s.
A joint venture of Company!
Starbucks formed a joint venture with different partners at different times when it entered the Chinese market. Starbucks achieved considerable knowledge about the Chinese market conditions and then began to open Starbucks stores in China. The company adopted a strategy of having three different partners to enter different regions in the Chinese market. In September 1998, Starbucks entered China under a licensing agreement with Beijing Mei Da Coffee Co.Ltd; which was their first partner. In 1999, Starbucks formed a joint venture with the Taiwan-based Uni-President Group and opened stores in Shanghai. In 2000, Starbucks entered into a joint venture with Mei-Xin International Ltd, also called “Coffee Concepts Ltd”. It managed the operations in the region of Hong Kong, Shenzhen, Macau, Guangzhou, and other parts of southern China.
There are some advantages for Starbucks with a joint venture to enter the Chinese market. First of all, Starbucks choose a good local partner to form a joint venture which can help it better understand the local laws and negotiate better with the authorities. It is beneficial for Starbucks to obtain the required permissions and sanctions so that it can be opened easily. Secondly, local partners know the Chinese market condition better than Starbucks; therefore, it is an effective and efficient method for Starbucks to adopt a few localization strategies to satisfy different regions of customers. Last but not least, the joint venture is a good way for Starbucks to reduce operation expenditure, and it also helps to reduce risks in the Chinese market.
Marketing and Pricing Strategies!
“We want our customers to recognize that we’re not coming to China just to make money, we are coming to China to build an enduring company that they can trust and they can view as one of their own”. – Howard Schultz.
“Starbucks Entry to China” Starbucks modified its menu and tried to localize its brand name by selling some food items. According to the choice of the Chinese people and selling a different kind of tea. They also changed their marketing and pricing strategies based on the needs of the Chinese market.
When Starbucks started in China, one of the biggest challenges it faced was to make the consumers accustomed to drinking and appreciating coffee. According to analysts, compared to other countries in which Starbucks operated this task was more difficult in China because of the age-old tradition of tea drinking in the country, where coffee was seen as nothing less than a kind of Western invasion.
Other Strategies:
Starbucks, like any other multinational company, had to go through the dilemma of choosing whether to follow Chinese traditional tea or take a big risk of following Starbucks’ culture of promoting premium coffee. The company chose to opt for its own culture and sell the idea of the ‘Coffee drinking experience’. Starbucks started by projecting the stores as a place for social gathering. The stores were also larger in area than the ones in the US, as the idea was to make the customers feel at home, relax and spend more time there.
Similarly, the company took initiatives to teach the customers about the different types of coffees and how to distinguish between flavors. The customers were given some samples to smell as well as sip and then describe their experience. At times if the customers did not enjoy the sample, the store employees asked them to come back again later for another ‘tasting’ session or they offered them some other drink that they enjoyed. They also spoke to the customers about the positive effects of drinking coffee. For example, they spoke about how drinking coffee helped to change their mood and how it was good to have coffee in the morning.
Localization Strategies of Starbucks!
Normally Starbucks follows a high standard technique to maintain its stores worldwide. But in the case of China, it adopted some strategies influenced by local culture and market conditions to gain Chinese people’s trust and confidence. Small changes were made in the texture, menu, and store layout just to match with Chinese culture and food preferences. Within a few months of opening the coffee stores.
The company started observing that coffee culture is different for Chinese people than in the US. Where people are very busy in their daily lives and they just grab their coffee and leave. But in China coffee stores were more like a place for social gathering. Where they can sit and talk for hours with their friends and families. Therefore, according to the market needs they had to square bigger stores. In the US the normal size of Starbucks store is about 1,200 to 1,500 square feet whereas in China. They started opening stores bigger than 2,000 square feet.
Starbucks Offer:
It was observed that the Chinese also like to have some food along with their drink. In response to that Starbucks started offering some popular Chinese foods like curry puffs, moon cakes, and traditional cookies. Starbucks incorporates another localize strategy in every country they go, by modifying the name of Starbucks to suit the local language.
Like in China they Change the name to ‘Xing Bake’ where ‘Xing’ represents ‘Star’ and ‘Bake’ was pronounce as ‘bucks’. Starbucks accepted the reality that maximum people in China like tea more than coffee though the young generation is more likely to go for coffee. So they decided the different menu for different stores in China. In Shanghai and westernized, the stores a standard menu where they served coffee. And in Beijing stores, they introduced different tea-based drinks like coffee-flavored milk tea, green tea-flavored frappuccino, etc. to attract more people.
Starbucks Entry to China; Promotional and Pricing Strategies!
To promote themselves in China the company chose a different way. It mostly depended on the people to spread goodwill through word of mouth than commercial advertisements and media products. Their knowledge, organized way of business left a good impression on customers’ mind. The customers were willing to pay a higher price for the brand name. As a result young, urban Chinese, who solely start to associate visiting Starbucks or being seen with a Starbucks cup, as a symbol of social status.
The tire to build their reputation in terms of, product quality, customer service, employee relationship, etc. To enhance the name of “Starbucks” they had different strategies. From professional to students they had different ways to attract them. They started selling the latest DVD’s, free access to the Internet. And, also use to provide different wireless services so people can feel it like their 3rd home.
Highest quality coffee:
Starbucks uses the highest quality coffee beans from ideal coffee-producing climates. They helped Chinese farmers, made good relationships with their workers. They also made a good reputation in the supply market. As a result of good reputation, good quality, and high price. They were able to attract people and also maintain their luxury appeal. The company price its coffees at around US$ 6 for a cup. Which was considering analysts as too costly? Even though it was too costly by Chinese standards but they decide to continue with it because in China. A high price was directly associating with quality.
Case Study of Starbucks Entry to China with Marketing Strategy.
