Coffee and Starbucks

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Higher Colleges of Technology

Competitive Analysis Project
Starbucks Vs Coffee Bean & Tea Leaf

Prepared for: Debra Henderson

Prepared by:

Date: 22 March 2006

Table of contents


2Client Company “Starbucks”1

2.1Target Market1

3Competitor Company “The Coffee Bean and Tea Leaf”1

4Major Finding of Competitive Analysis2

4.1SWOT analysis2
4.2Competitive Advantage2

5Strategic recommendation:2


1. Introduction
In the UAE the coffeehouses take the first concern of the residents. The residents look for the coffeehouses as a place of enjoyment and the perfect place for hangout with friends. One of the most popular coffeehouse in the UAE is Starbucks; the branches of Starbucks cover all the emirates in most popular places. In this report we’ll conceder The Coffee Bean & Tea Leaf as a competitor of Starbucks and analyze both of them depending on the SWOT and Marketing Mix analysis.

2. Client Company “Starbucks”
This company founded in the UAE in 2000, it is especially brand for coffee with Coffeehouses. Starbucks features a variety of coffees, hand-crafted beverage, teas, water, freshly baked pastries, sandwiches and salads. It is including also in their product compilation of music CD’s ranges for all testes. Starbucks have very friendly employees make the customers feel comfortable to visit them again. The qualities of the products Starbucks provide make them reach this level of popularity.

1 Target Market

Starbucks focus on the demographics, psychographics and lifestyle of their customers. Also with the information that Starbucks collected regard the target market segment for the better to its customers. The demographic helps Starbucks to locate its target market. It is target the both male and female, around 18-30 years old, but you can see that’s it provide product for everybody. Starbucks provide non-coffee beverage for children to supply for the whole family. It is customers primarily in their final years of high school, in university or just working. Most of them have a good education, and the people who have job, it include a high salary. The psychographic of Starbucks based in charity and the arts. Also it is sponsored the different kind of events. Starbucks aims to target people who are generous and charitable, also people who like fun and enjoy their time. It sells a lifestyle to both customers and employees, it appeals a new style to it’s coffees an age-old beverage, so that’s today it is one of most famous coffees around the world.

3. Competitor Company “The Coffee Bean and Tea Leaf”
It is an international coffeehouse company, founded in 1963 in California. They provide a variety of hot/cold coffee and tea drinks and related. Beside snacks like sandwiches, salads, muffins, cakes and a selection of pastries. There are 11 branches in the UAE 9 in Dubai (Sahara Shopping Center, Ibn Battuta Shopping Center, Zayed University …). The Coffee Bean provides it’s customers with a well trained friendly customer service to satisfy them and ensure their loyalty.

4. Major Finding of Competitive Analysis

2 SWOT analysis

|SWOT analysis |Starbucks |Coffee Bean & Tea Leaf | |Strengths |-Brand name recognition |-Changing the menu and adding new products regularly | | |-Good reputation |-Providing variety of products coffee & tea products | | |-coffees bottled beverages --sold at retail (Frappuccino|-Breakfast meals & light lunch meals | | |bottles sold in petrol stations) |-On-line...
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