US Is the largest market for Struck, and It’s brand name Is well known, open more stores, and have an Intensive dilutions, so when consumer thirsty or tired, hey can find a Struck next to them. Objective 2: US market revenue grow by 12% In 2014. At least half of the new stores are expected to be In the strong, rapidly growing u. s. Market, and in 201 2, the new store revenue grew by 9 percent. Struck should focus on their loyalty program and advertising activities, so people could always see it in TV or internet. So sale will increase gradually.
So Struck expect higher revenue 12 percent in 2014 is reasonable and possible. B. China on track become second-largest market in 2014 Objective 1 :opening 1000 new stores in different provinces of China by 2016 China ad an 8 percent growth in 2013, almost the same as America, Struck has a really good brand name, currently there are more than 3,000 stores in China, and they all located in major big cities, so Struck should open more in second or third major cities in different provinces to make sure people could find it around.
China is one of the fastest growing countries for the Company. In the first fiscal quarter of 2013 the China segment alone achieved sales of $214. 3 Million, so it’s really important to open more stores in China. Objective 2: focus on tea and Juice products to increase revenue by 3 percent In 201 5 The main product of Struck is coffee, but in China, still lots of people still couldn’t get coffee culture, like some mid-age people, so it’s important to Struck have other products to attract this large amount of population.
So tea and Juice will be a good choice, Struck could create more products based on their flavor. So when people start Interest In these products, 3 percent of the total revenue will be around 500 C. Channel Development (CAP) to double Its International footprint by 2015 Objective 1 :more than 100000 points of dilution’s In 20 countries by 2015 Consumer cadged goods Includes both domestic and International sales of packaged coffee and tea as well as a variety of ready-to-drink beverages and single-serve coffee and tea products to grocery, warehouse club and specialty retail stores.
Struck growing 50 percent to $1. 3 billion in revenue in fiscal 2012. Revenues from sales of consumer packaged goods comprised 7% of total net revenues in fiscal 2013. To double its international Channel Development footprint by 2015, building on its more than 100,000 points of distribution in 20 countries, and to eventually rival Struck retail store portfolio in terms of size and profitability. So it’s a great opportunity to introduce CAP oversea now.
Objective 2: expand my Struck Rewards Loyalty program to CAP Channel in 2014 Expand the company’s My Struck Rewards customer loyalty program to enable customers to earn Struck stars – redeemable for free beverages and food at Struck retail stores when they purchase Struck-branded products in CAP channels. This will attract both new and existing consumers. People will think Struck products when they were looking for drinks. II. The Customer Environment A. Who are the firm’s current and potential customers?
Struck uses demographic segmentation (markets by age, gender, income, ethnic background, and family life cycle) as well as geographic segmentation Internal and external The internal customers will be the people that work within the business of Struck. External customers and consumers will be the everyday public that come in to the coffee shop and buy coffee for themselves and their friends Demographic Men and women between the ages of 25-40 Account for almost half (49%) of its total business Tend to have high income and professional careers Grows at a rate of about 3% annual Young adults, aged 18-24
Account for 40% of Struck’ sales A place college students can hang out, study, write papers, and meet people. Grows at about 4. 6% each year Appeal to this group through the growth of technology and innovative ideas Kids and teens, ages 13-17 Accounts for 2% of Struck’ sale Lots of items are bought from the parents Offers certain drinks that appeal to them The usage level of product: Heavy users (heavy coffee drinker): is coffee addicts who consumes more than 21 cups each working week, forking out as much as E,OHO a year on cappuccinos, lattes and espressos or spend IEEE. 8 a year on drinks bought from coffee shops, marred with a typical IEEE household electricity bill Light users who consume less than 3 cups each day. Potential customer: tourists Coffee drinker from other countries: where Struck has not opened any stores yet. Customers from other competitors: if Struck price is lower, many customers switch from using other competitors product to Struck. Important players in the purchase process for the firm’s product: Lots of items for kids and teenager are bought from the parents.
So parents play significant role in the purchase product: not only the product but also the quantity. Young adults who buy Struck will be influenced by a number of factors such as: the price of the product, the recommendation from friends, family members For organizations, companies who are bulk coffee purchaser: the decision will be likely affected by top position people (top managers). They consider the quality of the product and are willing to pay a higher price. For the family, the purchaser and the user may be different people.
Husband who likes to drink coffee may ask his wife to go to grocery store and buy the coffee for him. In this case, husband has significant influent on buying decision. “Core customers” is Men and women between the ages of 25-40. This targeting would concentrate on consumers that value spending time in coffee stores that offer a relaxing and comfortable atmosphere. They are not only interested in grabbing a cup of coffee but also would like to enjoy the Struck experience.
For this they would be willing to spend a little over the average price for specialty coffees. Marketing should also be focused on reaching youth customers with varying tastes and interests. Struck strives to provide excellent, tailored service and along with its large variety of products the comfortable atmosphere that Struck’ stores have, also offers young adults the chance to sit down and relax if they wish. Geographic segmentation Struck does not choose their locations based on the demographic profiles of the area (clusters stores).
Struck is located all around, specifically in upscale locations, near offices, and near many college campuses B. What do customers do with the firm’s products How Starboard’s products connected to customer needs? What are the basic benefits provided by the firm’s products Basic: According to the statistics, Struck coffee satisfies the daily habit of people. This is actually why people start their day by drinking their favorite cup of coffee Other benefits A Place for Everyone Many would agree that Struck serves up a high-quality brew that helps them power through the day.
But coffee is far from being the only menu option. Stores today carry a small selection of food items and plenty of coffee-free beverages, making them more friendly to children and snack-seekers Struck positions itself as a place college students can hang out, study, write term papers and meet people Coffee may make you more intelligent Not only keeps you awake, it makes you sharper. CNN reports that coffee allows your brain to work in a much more efficient and smarter way.
Coffee could reduce your and Harvard Medical School followed 112,897 men and women over a 20-year period and, apparently, women who drink three or more cups of coffee a day are much less likely to develop skin cancer than those who don’t Coffee can make you feel happier A study done by the National Institute of Health found that those who drink four or more cups of coffee were about 10 percent less likely to be depressed than those who had never touched the Java Coffee is great for your liver (especially if you drink alcohol) A study published in 2006 that included 125,000 people over 22 years wowed that those who drink at least one cup of coffee a day were 20 percent less to develop liver cirrhosis Product line: Struck menu: Drinks: Bottle drinks, freshly brewed coffee, chocolate beverages, espresso, kid’s drink and other Food: Bakery, petites, bistro boxes, hot breakfast Even though, Struck is famous for coffee, Struck also offers customer a variety of other beverage and foods. So customers are able to have breakfast and drink coffee at the same place.
Struck bring you the freshest-tasting food possible many of our markets purchase fresh bakery products from local suppliers. In addition to rotational pastries and baked goods, Struck stores carry many specialty food items. Have a Great Start to Your Day with a Nutritious Breakfast. Perfect Oatmeal with choice of Dried Fruit, Nut Medley, Brown Sugar. Served hot for those who crave warm, satisfying meals to start their day, a steaming bowl of oatmeal made to order with three conveniently portioned toppings: dried fruit (100 calories), nut medley (100 calories), or brown sugar (50 calories). The organizations are usually the bulk coffee purchasers while individuals only buy a few cups of coffee.
How do customers consume and use Struck products: Customers could order and drink their coffee at Struck stores while chatting to their friend or surfing the internet. Buy coffee powder at grocery store and brew the coffee by themselves Customer could order online and make their old coffee at home Special consumption situations that influence purchase behavior Struck launches holiday promotion, products to encourage the purchase of seasonal coffees Customer could also buy their gift cards online with a discount and use it at any stores. Struck not only has special program for loyalty customer “loyalty program”, but the “welcoming program” for new customers.
Recycling & Reducing Waste Nowadays, every company not only concern how customers use their product, but also pay attention to how customer dispose of the product. At Struck, customers have access to recycling services wherever they choose to dispose of their cups. Customers’ ability to recycle our cups (or cups from any coffee shop), whether in their home curbside recycling, at work, in public spaces or in our stores, is dependent on multiple factors, including local government policies and access to recycling markets, such as paper mills and plastic processors. In 2013, There are 11 457 stores in America. Here is the list of 10 states having a highest number of Struck store. So it is easy to find a Struck store in America.
State Amount of store California: 2,010 2 Texas: 3 Washington: 559 4 Illinois: 412 5 New York: 6 Florida: 375 7 Colorado: 322 8 Arizona: 248 9 Oregon: 243 10 Virginia: 241 You can purchase coffee at Stockbreeder. Com, or by calling 1-877-421-9062, Monday through Friday from 6:00 a. M. To 3:00 pm SST. Grocery store: You can also visit a nearby Struck retail store, or one of the more than 18,000 grocery stores in the U. S. Which carry our coffees. Mostly Struck is in to erect supply channel (producer to consumer). With their line of vision such practice is important and it helps to keep a personal relationship with the customer In US, particularly Struck can be found in any neighborhood where there is a potential in various large chains Their primary goal is to locate them in highly visible locations and opened them in clusters.
By opening “stealth outlets” – street names instead of Struck, they attempt to carry out their “localize” projects further Along with the growing demand, they were able to manage the increased traffic and to keep their imitative edge If you’re a fan of Struck’ coffee, consider buying the ground or full bean bags of coffee from the grocery store instead of a Struck location. The coffee in the grocery store is usually a few dollars cheaper. Moreover, grocery stores are more likely to have sales or coupons for Struck coffee whereas Struck very rarely has sales on their bagged coffee in stores. Brewing your own coffee even with Struck brand beans will save you a lot over buying drinks at one of their locations. How has commerce change the way customers purchase Starboard’s product: Customer can purchase coffee at Stockbreeder. Com and do some simple Click to complete their order. First, find the item you want Select the appropriate quantity then click the “Add to Bag” button.
When you’ve finished browsing and are ready to check out, mouse over your shopping bag at the top of the screen and click “Manage My Bag”. Make sure all the products and quantities in your bag are correct and click “Continue Checkout” to continue. You will be taken too secured server where you’ll enter and confirm your billing, shipping and payment information Customer may either place multiple orders, or call our Customer Care team at 1-877-421-9062 for help placing a large order The following forms of payment are accepted: Visa, Mastered, American Express, Discover credit cards, Struck gift cards, and Papal. Your credit card is not charge until your order is shipped D.
When do customer purchase the firm’s products Time for purchasing, ordering: Struck store: Regular opening hour 5:30 AM to 1 1 PM, Monday to Friday. Loyalty customer: they often go to Struck store on the way to work or after work. Occasional customer: When people have an appointment with their friends, they could go to Struck store. Student could be at Struck store to drink coffee while suffering internet and doing their homework. When people run out of coffee at home, they could order what they want any time online. Make a call: calling 1-877-421-9062, Monday through Friday from 6:00 a. M. To 3:00 pm SST Struck is a famous, world-known branding, so when it opens new store in new country, this event will have big impact on customer behavior.
In Vietnam: On February 1, 2013, Struck opened its first store in Ho Chi Mini City, Vietnam. Hundreds of people lined up in the long line waiting for their turn to buy their first Struck coffee. Coffee Addict (Loyal customer) there is not big effect on their buying behavior due to promotional events Struck launches holiday promotion, products to encourage the purchase of seasonal coffees In 2011, Revenue lifted by 8% from $2. Bin (El . 71 bin) to $2. Bin (El . Bin), helped by a strong Christmas product line-up. Seattle-based Struck Coffee Co. Will kick off its Share Event in participating U. S. Stores. By bringing a friend to these select stores from 2 p. M. To 5 p. M. Teen Novo. 13 and 17 in 2011 consumers can receive a free holiday beverage when purchasing another holiday drink of equal or greater value. Beverages include Struck’ Gingerbread Latte, Caramel Burle Latte, Peppermint Mocha, Skinny Peppermint Mocha and Eggnog Latte Customer could buy their gift cards online with a discount and use it at any stores. E. Why do customers select the firm’s products Advantages of the firm’s product relative to competing product Coffee Buying Experience Struck locations around the world consistently have a good atmosphere, indirect lighting, relaxing music in the background, great aromas, and friendly ‘baristas.
At Struck you don’t order a simple black coffee, you order a Pike Place blend event Rites, names and processes are important part of customer experience Coffee lovers come for the wide selection of coffees from high-quality beans. They want the ability to “design” their coffee, smell the fresh pastry, listen to the soothing Italian music, visit with friends, and have the culture and quality of products be consistent throughout all Struck stores The Finest Coffee Beans Uses the finest beans its coffee Company personnel often travel frequently in search of suppliers that meet its standards Also purchased Certified Organic coffee and Fair Trade certified coffee Convenience
Today Stores carry a small selection of food items and plenty of coffee-free beverages, making them more friendly to children and snack-seekers From the moment a customer walks through the door, Struck wants to get them through in 3 minutes. Customers can pay with their phone and Blackberry’s Struck provides free Wi-If, and there’s no restriction on laptop use Struck APS: You can put in your favorite drink so when you visit you hold the app up to the scanner and the barista knows exactly what you want. Location: customer could use Struck APS to find a Struck store. Environment Welcoming environment, warm, friendly, and urban ambiance How issues such as brand loyalty, value, relational exchange process affect customer’s purchase behavior? Everybody can register it to Join the My Struck Rewards”* loyalty program – and get even more free food and drinks.
Struck is the largest coffeehouse company in the world. When new customers want to buy coffee, they will find the most popular and prestige firms first. Despite the rise of the artisan coffee movement, Struck remains on top of its game. Intense brand loyalty may be helping to stave off competitors. Seasonal offerings and Building and maintaining customer relationships For the internal customers: Struck has a high employee satisfaction rate, thanks to the company’s health insurance benefits. Store managers serve as the intermediary between the company and partners. Managers are coaches, bosses, marketers, entrepreneurs, and community ambassadors all at once.
Internal customers could get many benefit for purchasing: they could get a large discount for every products and get free products on special occasion For the external customers: Struck succeeded in establishing a unique coffee culture within timeliness in testifying customers: high quality-product, good service. Struck always listen to customer and is always willing to receive feedback from customers F. Why do potential customer not purchase the firm’s products The needs, preferences and requirements of non-customers that are not being meet by the firm’s products: High price as opposed to each rival. Customers require low price Prices based on WAS reporting in Chicago It is not good for kids: the high calorie and caffeine content of some of its drinks Limited products at different locations Limited lunch choices, seating area was also limited.
The lunch choices seemed to be few, with only wraps and sandwiches Struck coffee drinks are strong but with a very bitter and burnt taste. The sizes are confusing to some (Tall is a small, grandee is a medium, and event is a large) The features, benefits and advantages of competing product that cause non-customer to choose them over the firm’s product Dunking’ Donuts (AD) AD is more affordable: In recent years Dunking’ Donuts has raised prices according to the cost of beans, but they still remain the most economical choice in the minds of drive-thru coffee lovers AD is more accessible: If you’ve ever been to a Dunking’ Donuts in the suburbs on a Sunday morning, you’ve witnessed twenty cars in the drive-thru line and an empty parking lot. Why? Convenience.
Unless you’re picking up breakfast sandwiches for the whole soccer team, Dunking’ Donuts is the to-go coffee place, and a major percent of their locations have a drive-thru AD is simple: Some people like a burger with ketchup and mustard and others want a veggie burger topped with mashed potatoes and truffle oil. Both sound oddly rewarding, but one is easier to order and less risky. By sticking with the classics, Dunking’ Donuts can et the right order to the right customer in the right amount of time McDonald’s McDonald’s can exploit their full menu advantage. They offer complete variety of food starting from hamburgers, chicken burgers, fish burgers, wraps, nuggets, soft drinks, smoothies and premium cold/hot coffee. They also offer kids menu along with happy meal toys which could be a big influence tough economy, McDonald’s is offering less expensive premium drinks than Struck.
Once addicted to McDonald’s premium drinks, it could create millions of new customers for high-end coffee drinks who are dedicated McDonald’s customers In a tough economy, McDonald’s is offering less expensive premium drinks than Most standalone McDonald’s restaurants offer both counter service and drive- through service, with indoor and sometimes outdoor seating Some McDonald’s in suburban areas and certain cities feature large indoor or outdoor playgrounds, called “McDonald’s Play Place”(McDonald’s). “McDonald’s Play Place” is a place in-restaurant play area that features interactive game zones designed for children aged 4 to 12 What causes non-customer to look else where Struck takes the lead when it comes to regular coffee, while Dunking’ holds onto he lead for iced coffee.
Not enough Drive-through service Struck’ locations are scarce in suburban areas Not enough bilingual employees to deal with foreign customers Size of stores: stores can become crowded at times. Limited parking space Most coffeehouses have a unique environment. All Struck look the same on the inside Struck pays their workers poorly Opportunity for Struck due to the changes in society A recent study found that there are over 166 million coffee drinkers in the United States, and the number of them has increased steadily since the mid-asses. A significant trend in U. S. Fee drinking has been the increase in the amount of coffee drinking in the out-of-home segment. Of the out-of-home segment, the biggest increase was among those who drink coffee at work.
However, while more consumers are drinking coffee in the workplace, they are increasingly getting their coffee from outside the office. This means the percentage of at-work coffee being sourced from outside the work has increased dramatically. With over 166 million coffee drinkers in United States and a significant increase in the amount of coffee drinking in the out- of-home segment, Struck grabbed this opportunity and successfully captured this ever-growing out-of-home coffee drinking market. Recommendation Struck is already a dominant player in the marketplace and has successfully captured major market share of this ever-growing and now competitive out-of-home coffee drinking market segment.
Struck should keep its competitive position by offering the same high quality coffee products served in comfortable and classy environment prepared by knowledgeable coffee experts The introduction of drive- through windows should be done in small increments and then carefully analyzed by the company to find out consumer reaction as they don’t want to create another fast- DOD restaurant Struck should place its emphasis on store growth in international markets where its business remains robust. Struck should be primarily envisioned as a place where people would like to come and stay so that premium Struck exploits its superior branding and advertising program, Struck should be able to retain their core customers and might be able to attract millions of customers with their high quality products and sensory environment Ill. Primary and Secondary Target Markets for Struck Primary Target Market Struck’ primary target market is men and women aged 25 to 40 (Generation X). They account for almost half (49 percent) of its total business.
