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Coffee War Analysis

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Coffee War Analysis
Coffee Wars Analysis By Allie Goulet and Tina Guo
10/23/12

"I pledge my honor that I have neither received nor provided any unauthorized assistance during the completion of this work" In order to properly declare a winner of the Coffee Wars, we believed it to be essential to first analyze all three brands using various Brand Management tools. View pages 1-9 for our initial analysis.
Background Information | Dunkin’ Donuts | Starbucks | McCafé | Founded | 1950 in MA | 1971 in Seattle | 1993 in Australia | Mission | “Make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores” | “Our mission is to inspire and nurture the human spirit – one person, one cup, and one neighborhood at a time” | To make McCafé the beverage destination that offers worthy and rich flavored beverages | Area served & global distribution | Restaurants in 36 US states & in 31 countries (by 2010);9760 global points by 2010 | More than 17000 stores in 55 countries | Over 1500 stores worldwide | 2011 total revenue | $ 96224 in U.S. + $3870 international ($ in thousands) | $11.7 billion | Reports indicated that an average of 15% increase in sales boost from McCafé | Other notable financial information | Segment profit: $ 70708 in U.S.; + $3180 international ($ in thousands) | Net income: $1.2 billion | Since 2009, McCafé has helped McDonald’s grow its coffee sales from 2 percent of U.S. sales to more than 6 percent | Average price per coffee | $1-$3.5 range | Range from $2-$5 | $2 to high-$4 range | Average cups of coffee sold per year | More than 1 billion cups | Around 4 billion cups (average price: $2.1) | Unknown | Coffee sourcing: | 100% Arabica coffee beans from Central America, South America and other regions for proprietary blends | Ethically sourced morethan 80% of coffee through C.A.F.E. Practices | Coffee beans from central and South America, and also Indonesia while the



Cited: 2. "McDonald 's or Starbucks: Who Wins?" MSNMoney. N.p., n.d. Web. 20 Oct. 2012. <http://money.msn.com/investment-advice/mcdonalds-or-starbucks-who-wins-brush.aspx>. 3. "Face Off! Dunkin€™ Donuts vs. Starbucks." WSJ.com. N.p., n.d. Web. 20 Oct. 2012. <http://blogs.wsj.com/deals/2011/07/27/face-off-dunkin-donuts-vs-starbucks/>. 6. "Our Heritage." Starbucks Coffee Company. N.p., n.d. Web. 20 Oct. 2012. <http://www.starbucks.com/about-us/our-heritage>. 7. "Our Company." Starbucks Coffee Company. N.p., n.d. Web. 20 Oct. 2012. <http://www.starbucks.com/about-us/company-information>. 9. "Orlando McDonald 's Oerther Foods, Inc." McDonalds. N.p., n.d. Web. 20 Oct. 2012. <http://www.mcfun.com/mccafe>. 10. "McDonald 's Canada Accelerates Beverage Growth Strategy with National Launch of McCafe Brand." McCafe©. N.p., n.d. Web. 20 Oct. 2012. <http://www.mcdonalds.ca/ca/en/our_story/corporate_info/press_room/PR_McCafe.html>. 11. "McDonald 's McCafe: An Evolution | Nation 's Restaurant News." McDonald 's McCafe: An Evolution. N.p., n.d. Web. 20 Oct. 2012. <http://nrn.com/article/mcdonalds-mccaf%C3%A9-evolution?page=0,0>. 12. "Specialty Coffee Industry Analysis (is Starbucks Still the King?)." HubPages. N.p., n.d. Web. 20 Oct. 2012. <http://meangreen.hubpages.com/hub/Specialty-coffee-industry-analysis>. 13. "15 Facts About Starbucks That Will Blow Your Mind." Business Insider. N.p., n.d. Web. 20 Oct. 2012. <http://www.businessinsider.com/15-facts-about-starbucks-that-will-blow-your-mind-2011-3?op=1>. 15. "Starbucks to Adopt New Payment Method in U.S. Stores." Fox Business, 4 Oct. 2012. Web. <http://www.foxbusiness.com/industries/2012/10/04/starbucks-to-adopt-new-payment-method-in-us-stores/>. 16. Vishwanath, Vijay, and Jonathan Mark. "Your Brand 's Best Strategy." Harvard Business Review (1997): n. pag. Web. 20 Oct. 2012. 17. Silverstein, Michael, and Neil Fiske. "Luxury for the Masses." Harvard Business Review81.4 (2003): n. pag. Web. 20 Oct. 2012. 18. "Being a Responsible Company." Starbucks Coffee Company. N.p., n.d. Web. 20 Oct. 2012. <http://www.starbucks.com/responsibility/>. 19. Dunkin ' Brands CSR Annual Report 2010 20. "Dunkin ' Brands Reports Fourth Quarter and Full Year 2011 Results." (NASDAQ:DNKN). N.p., 09 Feb. 2012. Web. 20 Oct. 2012. <http://investor.dunkinbrands.com/releasedetail.cfm?ReleaseID=647486>. 21. Gates, Rusty, and Margaret Hogan 22. "McCafé." McCafé. N.p., n.d. Web. 20 Oct. 2012. <http://www.mcdonalds.com/us/en/food/full_menu/mc_cafe.html>. 23. McDonald 's Corporation 2011 Annual Report 26. Aaker, David A. Building Strong Brands. New York: Free, 1996. Print.

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