Retail Strategic Paper on Specialty Coffee Shops

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  • Topic: Coffee, Starbucks, Coffeehouse
  • Pages : 10 (3007 words )
  • Download(s) : 107
  • Published : February 9, 2011
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I.Organizational Mission
This Specialty Coffee Shop aims to ensure prompt, professional, friendly and courteous service to every customer in a comfortable, clean and well-maintained premise while serving quality coffee, drinks and food made from fresh and nutritious ingredients in line with the store’s objective of being the best in this industry within the local market. Additionally, each individual, whether guest or staff should be treated with the dignity and respect they deserve. II.Ownership

Sole Proprietorship
III.Goods/Service Category
Specialty coffee refers to the highest-quality green coffee beans roasted to their greatest flavor potential by true craftspeople and then properly brewed to well-established standards (Specialty Coffee Association of the Philippines, SCAP). This is specialty coffee as defined in the article “The Brewing Business of the Philippine Specialty Coffee Shop Industry” by Ronald Mark G. Omaña from the internet. This definition carries the description of the main product that I will offer in my own retail store together with other beverages complemented by pastries, breads, cakes and even sumptuous meals. In this light, I chose to put up a store in the location that I have observed how the market has grown and been shared by the existing stores that will eventually become my competitors. Having the basic concept of House of Quality in mind, I did a random interview with the customers of my two potential major competitors – Starbucks Coffee Co. and Read and Brew. After the interviews, I was able to gather qualities that the customer looks for in a specialty coffee shop. These were further divided into 3 groups to quantify the qualities of the store components into specific categories. A.PRODUCT SPECIFICS

Q1.Taste/Aroma of the products
Q2.Variety of flavors
Q3.Presentation and packaging
Q4.Variety of products (pastry, cakes, breads, drinks, etc.) Q5.Price (Consciousness)
Q1.Good/quality service
Q2.Friendly and Courteous personnel
Q1.Ambiance of the store
Q2.Additional Facilities (mini-library, game boards, etc.) Q3.Wi-Fi connection
Q4.Parking spaces
Q5.Complete facility

These were then laid out on a survey questionnaire (can be found at the last part of the paper) to rate how important these are to the customers and what qualities my potential competitors already have that I may need to improve or develop on. The respondents were chosen randomly from different dates of visit on the said competitor stores. With a population of 30, they were first asked to rate the importance of each quality that I got from the interviews from customers beforehand. I used Likert scale as my model (5-Very Important; 4-Important; 3-Moderately Important; 2-Of Little Importance; 1-Unimportant).

In this table, respondents rated Taste/Aroma of the products and Presentation and Packaging as the two most important qualities of the product that they want. Also, they chose to experience Good/quality Service from friendly and courteous personnel of the store they would want to visit. And lastly, they give importance to the ambiance of the store that is serene and peaceful with complete facilities, i.e. seats, couches, tables, condiments/utilities station, restroom, fully airconditioned, with smoking area (for some). After identifying the important qualities, I also asked the respondents how they see these qualities in the existing stores that will become my competitors. In here, I want to measure the excellence of each store to each quality to know where differentiation could come in.

In this next table, Starbucks Coffee Co. showed many strengths as to the product and service specifics, not much in the store specifics but still excelled with more than two thirds of respondents rating them excellent at some of the qualities. They just failed on Price Consciousness for the very reason that their products are priced high...
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