I NTRODUCTION Starbucks Corporation, an American company founded in 1971 in Seattle, WA, is a premier roaster, marketer and retailer of specialty coffee around world. Starbucks has about 182,000 employees across 19,767 company operated & licensed stores in 62 countries. Their product mix includes roasted and handcrafted high quality/premium priced coffees, tea, a variety of fresh food items and other beverages. They also sell a variety of coffee and tea products and license their trademarks through other channels such as licensed stores, grocery and national foodservice accounts. Starbucks had total revenue of $14.89 billion as of September 29th, 2013.
Gloria Jeans Coffees was founded by Gloria Jean and Ad Kvetko in 1979 in Chicago, USA. In early 1998, Gloria Jeans Coffees Australia franchised its first store and within 6 years had opened 185 stores owned and operated by more than 100 franchisees. Gloria Jeans Coffees prides itself in not only making a cup of good quality of coffee. It also provides with wide range of Hot Coffee, Cold Coffee, Smoothies, tea, bakery food, desserts and coffee accessories. All of their drinks are pretty popular. They provide with best quality of the coffee in order to satisfy their customers. Gloria Jeans Coffee is currently targeting small market segment, young adults segment, which comprises people age 18 to 25 years old, compared to Starbucks, 15 to 64 years old. Besides that, Gloria Jeans mainly focuses on female customers, where half of the sales came from that particular gender. I NTRODUCTION
SWOT ANALYSIS OF S TARBUCKS *2013 Strengths : Sound financial records No. 1 brand in coffeehouse segment valued at $4 billion Starbucks experience Largest coffeehouse chain in the world Employee management Weaknesses: Coffee beans price is the major influence over firms profits Product pricing Negative publicity Opportunities: Extend supplier range Expansion to emerging economies Increase product offerings Expansion of retail operations Threats: Rising prices of coffee beans and dairy products Trademark infringements Increased competition from local cafes and specialization of other coffeehouse chains Saturated markets in the developed economies Supply disruptions
SWOT ANALYSIS OF G LORIA J EAN S C OFFEES * 2013 Strengths : Brand recognition Brand positioning Over 700 stores owned Excellent management Continuous innovation Weaknesses: Not up-to-date brewing machine Less varieties than competitors Strict franchisee criteria Bad choice of partnership (associates) No customer incentives Niche target market Opportunities: Target High Coffee Consumption Countries Substitutes High Spending Power Culture Threats: Obesity High Threats of New Entrants High Rivalry
Industry market leader Good relationships with suppliers A Place For Everyone Ambiance Advertising Direct Marketing Complimentary Products Commitment to the World
Starbucks – 20,000 stores in 61 countries Gloria Jeans Coffee – 800 stores in 30 countries Industry Market Leader Good relationships with suppliers Complimentary products In 2009, Gloria Jean's were criticized for the sugar and fat content of some of their products. Analysis of a regular 'Gloria Jeans Mocha Chiller Coco Loco' revealed it contained 95.5 g of sugar, which is 106 percent of an adult's recommended daily intake. They have also been criticised for failing to provide nutritional information to their customers. A "Skinny" line of drinks rolled out in 2008, offering lower-calorie and sugar-free versions of the company's offered drinks which use skim milk and can be sweetened by a choice of natural sweeteners (such as Sugar in the Raw, Agave Syrup, or honey), artificial sweetener or one of the company's sugar-free syrup flavors. Starbucks stopped using milk originating from rBGH -treated cows in 2007.
Direct Marketing Advertising Starbucks - 35 millions / Gloria Jeans Starbucks - more than 7millions / Gloria Jeans - about 7000 Starbucks – 4,4 millions / Gloria Jeans – no official page.. Fight Club The Devil wears Prada