Coffee Craze Micromarket Analysis

Rachelle Irene Roque Anna Mae Dela Cruz

Emmanuel Junio Martin Revilla

Ed Vargas

Starbucks and Coffee Bean

Starbucks versus Coffee Bean

Company Starbucks Corporation

Industry Restaurants

Genre Coffee House

Founded Seattle, Washington (1971)

Locations 20,891 in 62 countries

Products Coffee, Tea, Pastries, Frapuccino beverages, Smoothies, baked goods, merchandise

Revenue $13.29 billion

Net Income $1.38 billion

Employees 149,000 worldwide

In the Philippines Opened on 1997; now with 206 stores

Website starbucks.com

Company The Coffee Bean & Tea Leaf (CBTL)

Industry Restaurants

Genre Coffee House

Founded Los Angeles, California (1963)

Parent International Coffee and Tea, LLC

Products Coffee, Tea, whole bean coffee, boxed tea, made-to-order beverages, baked goods, merchandise

Revenue $450 million

Net Income No info

Employees 8,400 worldwide

In the Philippines Opened on 2003; now with 60 stores

Website coffeebean.com

Place

Promotion

Price

Product

Areas of Analysis

PTM

Starbucks

Starbucks: Target Market

• Class A and B – Can afford to pay more than P100 on a single

beverage

• Businessmen, young professionals, students, expats

• Behavior – Visit the store for meetings and/or study sessions – They’re either on-the-go or they stay and work for

long periods – Purchase merchandise/food as gifts or tokens for

events or business guests

Starbucks: Product/Service

• Designer drinks – Coffee

– Juices

– Milk and chocolate

– Tea

• Bottled/packed beverages – Juices

– Milk

– Water

• Food – Sandwiches

– Cakes

– Pastries

– Fruits

– Candies, cookies, mints, instant coffee

• Merchandise – Mugs and tumblers

– Coffee makers

– Ground coffee and instant mixes

– Tote bags, umbrellas, etc.

• Beverage features – Sizes – Tall, grande, venti, treinta

– Add-ons – whipped cream, chocolate syrup, caramel, etc.

– Variants – other kinds milk (nonfat, skim, soy)

• Added services – Heating sandwiches/pastries

• Service – Baristas are extroverted, all speak English

– All branches have restrooms

Starbucks: Product/Service

• Special features that specifically cater to their TM – Trendy beverages (e.g. salted caramel, etc.) – Brochures and product information (upon request) –

ingredients, caloric content, etc. – Condiments – cinnamon, cocoa, different kinds of sugar, milk – Personalized beverages – lighter options, milk variants, etc. – Food menu cycles every few months so that regular patrons

have enough new items to look forward to – Starbucks card – for loyal/regular patrons; debit card and

discounts – Packaging – coffee collars, tape – Electrical sockets and wifi

Starbucks: Product/Service

• CBDs, universities, and commercial areas elite crowds frequent – Always at the periphery and ground floor areas of malls to

accommodate customers for longer hours

• Power Plant ground floor area – High-traffic area – “Landmark” spot – great for meet-ups – Another branch can be located on the ground floor area of

One Rockwell and a kiosk at the Cinemas, next to CBTL

• Store hours (since at periphery) – 6 am to 12 mn weekdays – 6 am to 1 am weekends

Starbucks: Place

• P100 to P250 per beverage

• P45 to P175 per cake/pastry

• P100 to P500 for a full meal

Starbucks: Price

• Loyalty card • Planner • Limited edition beverages

– Ex. Anniversary blend

• Websites and social media – Trends – CSR activities

• Events – Own events – Tokens/gifts at other events

• Trimedia • Product placing in movies, etc.

Starbucks: Promotion

Coffee Bean

• Class A and B – Slightly more expensive than Starbucks

• Businessmen, young professionals, students, expats

• Behavior – Visit the store for meetings and/or study sessions

– Work for long periods

– Visit the store for meals

Coffee Bean: Target Market

Coffee Bean: Product/Service

• Beverages

• Designer drinks – Coffee

– Juices

– Milk and chocolate

– Tea

• Food – Sandwiches

– Cakes

– Pastries

– Pasta

– Breakfast plates

– Ice cream with toppings

• Merchandise

– Mugs and tumblers

– Coffee makers

– Ground coffee and instant mixes

• Beverage features – Sizes – small, regular, large

– Variants – other kinds milk

• Added services – Heating sandwiches/pastries

• Service – Baristas are friendly, all speak English

– No restroom

– Furniture better for lounging

Coffee Bean: Product/Service

• Special features that specifically cater to their TM – Brochures

– Personalized beverages – other kinds of sugar, other kinds of milk, caramel or fudge syrup, cherries or chocolate espresso beans

– Food menu stays the same

– Swirl card – for loyal/regular patrons; wifi and discounts

– Electrical sockets (but less) and wifi

Coffee Bean: Product/Service

• CBDs, universities, and commercial areas elite crowds frequent

• Power Plant cinema

• Store hours • 11 am to 11 pm Mon to Thurs (due to cinema)

• 10 am to 10 pm Fri and Sat

• 10 am to 11 pm Sun

Coffee Bean: Place

• P110 to P195 per beverage

• P55 to P295 per food item

• P100 to P600 for a full meal

Coffee Bean: Price

• Loyalty card (Swirl card)

• Planner and notebooks

• Limited edition beverages

• Website

• Accepts third-party collaterals

Coffee Bean: Promotion

DIFFERENCES

Target Market

Starbucks Corporation

Some customers go to Starbucks and purchase Starbucks products for show

Customers don’t purchase beverages, food, merchandise or GCs as tokens

Noisier crowd

The Coffee Bean & Tea Leaf

Older crowd and more family-oriented

Less people stay for long periods or come for group study

Lower traffic

Products/Services

Starbucks Corporation

Trendier items

Has bottled/packed beverages, candies, etc.

Has a restroom

More merchandise

Staff is more outgoing; service is branded (Starbucks barista)

Wifi for a fee

The Coffee Bean & Tea Leaf

Pasta and breakfast plates

Ice cream with toppings

More varieties of tea

Sells coffee makers with instant mixes

Add-ons are less known to customers; no condiment bar

Food menu stays the same

Swirl card for wifi, not just discounts

Less electrical sockets, wifi exclusive to Swirl cardholders

Place

Starbucks Corporation

Usually at the periphery of malls

Open for long hours

The Coffee Bean & Tea Leaf

Locations are less prime

Follows mall and cinema hours

Price

Starbucks Corporation

Slightly cheaper

The Coffee Bean & Tea Leaf

Bit costly

Promotions

Starbucks Corporation

Starbucks card acts as a debit card

CSR activities are more well-known

Uses a wider range of promotional channels – greater presence in social media, events, and other channels that target the younger crowd

Planner is a popular promo

The Coffee Bean & Tea Leaf

Wifi is exclusive to loyalty cardholders (and drives up sales for it)

Displays third-party collaterals at the store (bulletin board, brochures, etc)

thanks a

LATTE!

“..life is short.. enjoy your coffee..”