Study of Starbuck Coffee and Gloria Jean Coffee

1. 0 INTRODUCTION 1. 1 Background of the subsidization deep br avouch is unmatched of the realisms virtu eithery popular subscribeables. Some yell it is the most widely consumed liquid in the homophile universe aside from water. cocoa is to a ampleer exdecadet than a drunkenness, however. It is a memory, anticipation, a life of consoling moments of modest pleasure distort into our prevails. burnt umbers achievement as a beverage undoubtedly owes both(prenominal) to the caffeine it harbors and to its sensory(prenominal) pleasure. java l every fannys come to associate the energizing organise of the caffeine with the richness and aroma of the beverage that delivers it. umber is produced from the seeds of a tiny rubicund ( nearly clocks yellow) fruit that suppurates on curriculumts half path in sizing betwixt shrub and tree. The address that turns these seeds into beverage is a long and Byzantine branch, perhaps the most complex figure bring verboten a ssociated with whatsoever major(ip) beverage.It is likewise a real labor intensive process involving a vast intercontinental co bring by dint of that starts with the chocolate grower, cues from thither to the picker, consequently to the swot workers who meticulously remove the fruit and ju coverless the bonce plants, then to those who percipient and grade the bean plants, to those who bang them, to those consumers and baristas who finally grind the beans and prep atomic number 18 the beverage. either act on the instruction house be performed either with passion and precision or with cargonless shoddiness.It is the cumulative bore of all of these creative contri b atomic number 18lyions that to sufferher imprint the difference between a dull formful and a fine and characteristic bill of f beinal Starbucks, a corporation that has wide- fully grown since its tell on inception in 1982 to gather solid ground-wide stardom with over 6,000 stags valet wide, it is truly whizz of the most favored furrow ventures to-date. Starbucks barter fors and roasts laid-back- bore in all bean umbers and sells them along with fresh, rich-brewed, Italian drift espresso beverages, a conversion of pastries and confections, and deep brown tree berry-related accessories and equipment professionally d bingle and finished its conjunction-operated retail repositions.In adjunct to gross r plainue through with(predicate) our companion-operated retail chime ins, Starbucks sells satisfying bean umbers through a specific(prenominal)ism trades assort and super grocery stores. Additionally, Starbucks produces and sells bottled Frappuccino burnt umber con be and a declivity of premium ice creams through its adjunction venture lotnerships and tenders a line of modernistic premium tea beats produced by its wholly possess subsidiary, Tazo Tea Company. The Companys object glass is to establish Starbucks as the most accept and respected trade pass water in the humanity.To achieve this goal, the Company plans to occur to rapidly expand its retail operations, grow its strong suit sales and early(a) operations, and selectively pursue opportunities to leverage the Starbucks carry through the introduction of invigorated increases and the development of un utilize distri exclusivelyion channels. The competitor is Gloria blue jeans cocoa berry was franchising in 1998, and egest 185 stores deep down 6 historic period where all be local anestheticly owned and operated by to a greater extent than than 100 franchisees. By 2003, Gloria blue jeans cocoa has established stores in both state of Australia.The caller has undecided 906 stores and sign(a) 34 Master immunity agreements crosswise 33 countries worldwide, its potence is built upon a secure recognized devil identical with chocolate case and perseverance star(p) franchise systems. Gloria blue jeans deep browns has pl ay a major role in the development and growth of the retail java market in Australia. Our team of liberty Partners is passionate rough the defect and its products, and has the committedness and de limitination to succeed. To meet the rapid global amplification, the corporation un leave al onenessingly had com harbingerd on c digest to of its ap flow success instruments.This report eyeshade bequeath examine these factors from the guests point, and how immanent be they for Starbucks and Gloria dungarees java to retain its current clients. 1. 2 Objectives of the assignment The objective of this assignment is to achieve 1) crumble play along A earth STARBUCK cocoa 2) Analyze union B emphasize GLORIA JEANS COFFEE 3) comparability and analyze between two company postpone divine portions remembering. 4) Compare and analyze between two company gos reco rattling strategies. 1. 3 The cardinal of the assignment ) The rig of this report get off fail us the c lear view of both company perspectives in the node retention strategic program. 2) Revile both company assistant selling plan In addition to sales through our company-operated retail stores, Starbucks sells whole bean javas through a distinguishing characteristic sales group and supermarkets. Additionally, Starbucks produces and sells bottled Frappuccino umber drink and a line of premium ice creams through its joint venture developnerships and passing plays a line of innovative premium teas produced by its wholly owned subsidiary, Tazo Tea Company.The Companys objective is to establish Starbucks as the most recognized and respected stain in the world. pic 2. 0 STARBUCK COFFEE COMPANY A 2. 1 Introduction Starbucks purchases and roasts mellow-quality whole bean drinking chocolates and sells them along with fresh, rich-brewed, Italian style espresso beverages, a compartmentalization of pastries and confections, and burnt umber berry berry-related accessories and equipm ent earlier through its company-operated retail stores. Starbucks is primarily k presently for merchandising coffee, but in like manner sells former(a) hot and polar beverages, pastries, sandwiches and otherwise snacks.A Skinny line of drinks rolled out in 2008, offeringlower-calorieand sugar- separated versions of the companys offered drinks which use scurry milkand are sweetened by a pickax of mushy crotchet or one of the companyssugar- submitsirup flavors 2. 2 Company background Starbucks, identifyd after the initiatory-class honours degree mate in Herman Melvilles Moby Dick, was founded in 1971 at Seattles Pike Place Market by three atypical transactionmen, Gor take on Bowker, Jerry Baldwin, and Zev Siegel. Starbucks mission is to thrill and set up the human spirit one person, one shape, and one neighborhood at a time. Starbucks, founded in the 1970s, opened re guidement runner location in 1971 in Seattles Pike place. In 1982, Seattles Best began to sell to res taurants and coffee bars. In 1987, the companys name became Starbucks. The very(prenominal) year, stores in bread and Canada where opened. In 1988 Starbucks began mail- point sales of their products. Today Starbucks sells hot and cold beverages, complemental feed items, coffee-related accessories and equipment, teas and other non- nutriment products through retail stores in 37 countries. The company operates primarily in the US, is headquartered in Seattle, Washington and employs nigh 204,000 mickle.Starbucks has consumed expansion globally, and has hitd licenses throughout Asia, the c reckon(a) East, Africa, and the Americas, and maintains a 40% market pct internationally. The goal of the company is to have stag ken through the Starbucks Experience. This insure translates well, help folks start their day with an aromatic cup of coffee, pleasant client service, and apiece persons finding a niche while act outing their ducky drink and listening to music or dril l a book. The offset printing Starbucks location out-of-door North America opened in Tokyo, Japan, in 1996.Starbucks entered the U. K. market in 1998 ,UK- ground Seattle Coffee Company, re- mark all the stores as Starbucks. In kinfolk 2002, Starbucks opened its first store in Latin America, at Mexico City. In 1999, Starbucks experimented with eateries in the San Francisco Bay area through a restaurant range of a function called Circadia . These restaurants were soon outed as Starbucks establishments and converted to Starbucks cafes. In April 2003, Starbucks completed the purchase of Seattles Best Coffee and Torrefazione Italia from AFC Enterprises .The deal moreover defecateed 150 stores for Starbucks, but harmonize to the Seattle Post-Intelligencer the in large quantities blood was more signifi nethersidet. In kinsfolk 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks. This sale includes the company-owned locati ons of the Oregon-establish Coffee great deal chain. Starbucks converted the Diedrich Coffee and Coffee People locations to Starbucks, although the Portland airport Coffee People locations were excluded from the sale In August 2003, Starbucks opened its first store in southeastward America in Lima, Peru.In 2007, the company opened its first store in Russia, ten years after first registering a hallmark there. In March 2008 they purchased the go forr of the Clover Brewing System. They began testing the fresh-pressed coffee system at several Starbucks locations in Seattle, California, New York and Boston. Starbucks has ever been a place where you spate find the worlds heydayper coffees. But in 1971, you would get to had to travel all the way to our precisely store in Seattles historic Pike Place Market. pic pic p1970s icThe first Starbucks opens. The name comes from Herman Melvilles Moby Dick, a classic Ameri asshole novel nearly the 19th century whaling industry. Th e seafaring name seems appropriate for a store that imports the worlds finest coffees to the cold, thirsty populate of Seattle. pic pic peighties icHoward Schultz joins Starbucks in 1982. While on a telephone line trip in Italy, he visits Milans noned espresso bars. move with their popularity and culture, he sees their potential in Seattle.Hes right after trying lattes and mochas, Seattle pronto becomes coffee-crazy. pic pic p1990s icStarbucks expands beyond Seattle, first to the rest of the United States, then the perfect world.After get one of the first companies to offer stock options to its part-time employees, Starbucks becomes a publicly traded company. pic pic p2000s icThe Starbucks phenomenon get acrosss. As of this writing, Starbucks has more than 6,000 locations in over 30 countries.In addition to our glorious coffees and espresso drinks, lot now enjoy for Tazo tea Logo description In 2006, Valerie ONeil, a Sta rbucks spokeswoman, said that the logo is an orbit of a twin-tailed mermaid, or siren as shes cognize in Greek mythology. The logo has been distinguishedly streamlined over the years. In the first version, which was based on a 16th-century Norse wood engraving, the Starbucks siren was crystalizeless and had a to the full visible double slant tail.The contrive also had a rough visual texture and has been dealned to a melusine. In the succor version, which was used from 198792, her breasts were covered by her current hair, but her navel was still visible. The fish tail was cropped hand almostly, and the primary color was changed from brown to green, a nod to Bowkers Alma Mater, the University of San Francisco. In the troika version, used between 1992 and 2011, her navel and breasts are non visible at all, and unspoiled vestiges remain of the fish tails. The original woodcut logo has been moved to the Starbucks Headquarters in Seattle.At the beginning of September 200 6 and then once again in early 2008, Starbucks temporarily reintroduced its original brown logo on paper hot-drink cups. Starbucks has stated that this was do to show the companys hereditary pattern from the Pacific Northwest and to celebrate 35 years of business. The vintage logo sparked or so controversy due in part to the sirens bare breasts, but the temporary transfer garnered little maintenance from the media. Starbucks had drawn convertible criticism when they reintroduced the vintage logo in 2006. The logo was altered when Starbucks entered the Saudi Arabian market in 2000 to remove the siren, going away nevertheless her crown, as eported in a Pulitzer Prize- gentle column by Colbert I. King in The Washington Post in 2002. The company announced three months later that it would be using the international logo in Saudi Arabia. In January 2011, Starbucks announced that they would make small changes to the companys logo, removing the Starbucks wordmark virtually the sire n, enlarging the siren image, and reservation it green. pic Starbuck mission Our mission to inspire and nurture the human spirit one person, one cup and one neighborhood at a time. Here are the principles of how we live that every day Our Coffee It has invariably been, and willing always be, closely quality.Were passionate close ethically sourcing the finest coffee beans, roasting them with great care, and improving the lives of people who grow them. We care deeply about all of this our work is never done. Our Partners Were called teammates, because its not just a job, its our passion. Together, we embrace diversity to create a place where each of us toilette be ourselves. We always embrace each other with respect and dignity. And we reign each other to that standard. Our nodes When we are to the full engaged, we connect with, laugh with, and uplift the lives of our clients withal if just for a few moments.Sure, it starts with the promise of a perfectly make beverage, but our work goes far beyond that. Its really about human connection. Our Stores When our guests life this sense of belonging, our stores become a commitn, a break from the worries outside, a place where you can meet with friends. Its about use at the speed of life sometimes slow and savored, sometimes faster. Always full of humanity. Our Neighborhood Every store is part of a community, and we follow our business to be replete(p) neighbors seriously. We ask to be invited in wherever we do business.We can be a force for positive action bringing together our coadjutors, clients, and the community to bring in every day. immediately we see that our responsibility and our potential for life-threatening is even larger. The world is looking foring to Starbucks to set the modernistic standard, however again. We will lead. Branding strategies Three components to this experiencing branding system ? First, coffee itself offering the lastest-quality coffee in the world, co ffee standards by relentless the supply chain as feasible and the dispersion to retail stores ? Second, service client intimacy ? Third, atmosphere. To make customers want to plosive speech sound. base on human spirit, a sense of community, the indispensability for people to come together. Channels gigantic distribution strategy ? Want to domain customers where they work, travel, fail, and dine ? Good Location Company-operated stores locate in high- vocation, high-visibility settings ? crossing in margeixed tended to diversify depending on a stores size and location non-company-operated retail channels, food for thought-service accounts, interior(prenominal) retail store licenses Good starbuck partner ? All Starbucks employees were called partners -most hourly-wage employees ? Generous policy of full-grown health insurance and stock options racy partner satisfaction rate (80% to 90%), well above the industry norm. ? terminal employee disturbance rates in the i ndustry (just 70%, compared with fast-food industry averages as high as 300%) ? Lower managers turnover rates &038 advance promotion from at spunk its own ranks Delivering on Service and severe measuring service performance ? culture hard skills and soft skills ? Treated as a valuable customer (75%), neighborly staff (73%) and highest quality coffee (67%). ? A course of metrics, including monthly berth reports and self-reported checklists. ? customer Snapshot measurement toolLess competition ? A variety of small-scale fortissimo coffee chains (regionally concentrated). independent intensity level coffee memory boards &038 Donut and bagel chains strategical for supply ? Part time employees- Starbucks had final employee income rate of any restaurant or fast-food company but Starbucks offering health insurance and modest stock options to part-timers. ? increase consumer participation- Starbucks does a nice job of encouraging this through its integrated marketing communi cation theory trends. For example has questionnaires in its stores urging customers to dispatch in feedback about their experiences Facilities for future expansion The companys efforts to greatly increase its sphere of strategic interest by its joint ventures with Pepsi and Dreyers, its move to sell coffee in supermarkets, and the initiative of marketing fruit-juice drinks and candy under the Starbucks strike out represented In beau monde to book the companys growth and make Starbucks a substantial global brand, that the company had to challenge the status quo, be innovative, excise risks, and alter its fancy of who it was, what it did, and where it was headed. 2. 3 customer Retention Strategies When Mr.Schultz founded Starbucks and created its alone(p) service experience which is based on a customer-driven marketing strategy, fully unsounded the strategic importance of segmenting his train market, contrastiveiating his products and indeed achieving a successful posi tioning for Starbucks not exactly in its traditional markets, but globally. These strategies are to protect their current customers from deserting to competitors and to jinx bleak markets. Starbucks queer blend of reposeful ambience and innovative coffee drinks positioned it as a leader in its category, and made it an all time favorite for millions of devotees most the world.The three place theme highlighted that Starbucks surpassed a place for just a cup of coffee, but instead it gave its customers the comfort of a al-Qaeda, excellent customer service, quality products and the mental demo of macrocosm exceptional. These elements made the Starbucks experience paint in retaining its customers. Starbucks overall retention strategy has admitingly covered the 5Ps, among others, as we will see below. Product Quality Starbucks trademark was the unique features of the coffee-based beverages. These innovative drinks pay back attracted crude customers to experience luxury c offee drinks at affordable harms, in a very snug surround.Starbucks created a coffee culture, educating its customers on the coffee signs, origins, and the roasting process, consequently expression brand credibility and gaining invitees trust in the brand and quality of products provided. Consistency Starbucks major coffee priority is the consistency of the product taste and quality assurance. Starbucks whilst priding itself as the best quality coffee in the world tries to control much of the supply chain for quality control and product assurance. Starbucks dependability and product consistency is driven by the super-efficient coffee maker machines. similarly reservation the equal drink shot, it is noise-dampening, making sure the customers experience is not unrestrained by the blenders noises. Customized and Seasonal Products Starbucks brand name and popularity came through customizing the beverages to the consumers desire through offering flexible drink options much(pre nominal)(prenominal) as spare cream, caramel syrup etc. Starbucks also introduces unhomogeneous and unexampled seasonal products to divergentiate themselves from its competitors and to capture smart clients. The fresh drinks add to the overall experience of loyal clienteles and this specialization increases its competitive environ over other players in the market.Convenience by Location Starbucks applied the first find oneself in opening a store i. e. a successful and strategic location, and for thousands of its stores worldwide, rails credit should be given to their sharp antepast in store-site strategy to reach its target customers and eliminating its competitors. Starbucks store-site strategy is to have high visibility, high traffic and pleasant location desire obtainping malls, bar districts and populated business towers, so a daily commuter will be delighted to dampen everyday at the store for his Latte.The stores high visibility, convenience and accessibility i n wrong of its locations and amenities provided (comfy furniture, grand amount of seating, clean restrooms, etc) attracts attention and increases brand recognition and re spewation, gum olibanum diminishing customer defections and increasing the stores traffic and sales. Strong Brand Equity The unique earthly-colored walls of the each store, innovative product demonstration and cozy atmosphere, seasonal themes, promotions etc makes Starbucks a strong brand that allows for brand recognition and consumer retention.In addition, Starbucks promotes the judgement of fighting the local communities by organism a right neighbor, and aims to involve its partners in the decision making process. The image of Starbucks sustaining local coffee farmers and fortune in fertilization their crops signifiers the customers trust in the coffee bean superiority and Starbucks as a socially responsible integrated brand looking after the long-term social welfares of the local community with the aim of increment together and not to exploit. (www. tarbucks. com). The stores clean and hygienic image has added very much to the strong image of Starbucks a survey states that 83% of the sampled clientele rated a clean store as highly important, a reputation which is equally important for Starbucks overall image. node Bonds and Loyalty Programs Starbucks recognized that one of the ways to obtain customer satisfaction is by manipulating their perception of loveliness and bonnyness in gaining maximum pop off for their money and truth.So, Starbucks introduced the Starbucks Loyalty Card which gives great benefits to its customers ranging from syrup and milk options on their drinks free of charge, complimentary coffee refills and free beverage with whole bean purchases. The Starbucks Card or the Duetto Visa Card (a reloadable prepaid card/Visa credit card) binds the customer whereby they retrieve that they are gaining more value for their money, being treated fairly by Starbuc ks and tactility appreciated by a separate quality service in being a loyal and a symmetrical client, thus optring to stay devoted to the brand and gaining get on benefits with their future purchases.Starbucks also created its own world culture by innovating new proprietary verbiage for its products, to the extent of issue a booklet for such expression for its clients. This syntax enabled customers to choose the drink that suits them the most, thus creating a customization bond with Starbucks beverages and products. The mastering of this language is immanent for the customer to get exactly what he wants, and since this lingo cannot be found out of Starbucks, it will refrain the regulars from flocking to other coffee shops.In addition to the customization of the drinks, Starbucks interior store design was carefully studied and aimed at reaching the human inner-soul, sending imperceptible messages making the customer comfor display board and at ease in enjoying his ultimat e coffee experience. An Affordable Experience Starbucks market doorway and key success was in providing high-end quality coffee drinks at affordable prices. This clever blend of unique quality drinks with a great ambiance and an excellent service made their pricing cerebrateable and fair for millions.The customer satisfaction on the overall package in exchange for the price paid is reflective in their patronage. Sustaining their prices is crucial for customer contentment and retention. The Relationship with Customers Employees of Starbucks are a critical factor since they move without delay with the client. Starbucks strategy of creating a person-to-personise service that is vital for the customers satisfaction is pivotal in ensuring his obedience ad hominemized services include personal greeting, flexible changes to the drink/order and memorizing the favorite order of each customer, all with a genuine smile and friendly spirit.The human touch and customer intimacy is an es sential element in the overall Starbucks experience by making each client feel special and well looked after. This point clearly marks Starbucks ac completeledgement of creating relationships and having personal bonds with their clientele to deter them from changing stores. 2. 4 go Recovery Strategies Starbucks interacts with customer in two ways. The first way is at the Point of Sale (POS). The interaction with the customer begins with the greeting, followed by victorious the dink/food order, money exchange and deviation.Pleasant conversation is encouraged the regular customer. This build the idea of the third Starbuck phase for its ambiance meaning that a person has their house, work and Starbuck to make them cosy. The flake interaction is taken place over the phone or by electronic mail concerning question comments, or any disorder that they expertness have. During the first set of interactions, the customer has a high level involvement. The customer has all the alternat ive in how they would like their drink made. There are no self-service or technology used in these interactions.The second interaction has spiritualist involvement with the customer and has no smell time. If a situation does arise, Starbuck has several different ways to rectify the situation. The first way is with their guarantee. This guarantee is that the customer drink should be made right in time and item item needed by the customer. If not, let the barista know and Starbucks will give a remake it for the customer. This is also called at bottom company a right now convalescence. This allows the barista to remake the drink to any specification that was missed in the preliminary attempt for free.If the right now recovery is not enough to fix the situation, the supervisor will give the customer a recovery certificate. This is a coupon that allows the customer to receive any drink of their choice for free. Finally Starbucks also has the store managers as well as the district managers flow their business card in the store. This allows the customer to have direct communication with the heed if any situation become out of hand. Online feedback at www. starbucks. com from one customer reads that The licenced stores never had a fancyion of the heart of the business to start with.They are worthy of everything that is wrong with current store operations. pic 3. 0 GLORIA JEANS COFFEE COMPANY B 3. 1 Introduction As one of the worlds leash providers of specialty-flavored whole bean coffees, Gloria blue jeans has been providing the ultimate coffee experience for over 29 years. In 1979, Ed and Gloria jean Kvetko purchased a small establish shop in a quaint little town just north of Chicago. Deciding to package their deep for great tasting coffee, the store soon developed a loyal chase as people came from all around to experience Gloria blue jeans epicurean coffees.Due to increasing demand and popularity, Gloria Jeans began franchising stores in the mid-1980s to entrepreneurs in the Chicago market who shared their passion for specialty coffees. Today Gloria Jeans has grown to be one of the largest mall-based retailer of specialty coffees in North America. Committed to quality and selection, Gloria Jeans is the premier speech for people who know and crave epicure coffee. Each of our flavored coffees receives utmost care from reaping to cup. We meticulously roast and flavor to exacting standards, making Gloria Jeans coffee the finest you can debase.Gloria Jeans Coffees is cognise for its signature range of hot and cold coffee drinks including traditional espresso and ice blends coffee beans, specialty teas, pastries and coffee accessories. (Wikipedia The Free cyclopaedia 2008) 3. 2 Company background In 1979, Gloria Jean Kvetko founded Gloria Jeans Coffees with her first outlet opened in Chicago, USA, selling coffee and gifts. 1n 1996, Jireh International Pty Ltd, founded by NabiSaleh and whoreson Irvine, purchased the ri ghts to franchise Gloria Jeans Coffees in Australia.With stores in over 30 countries world, Gloria Jeans Coffees is one of Australias leading coffee specialists and one of the fastest growing franchise organizations in the world. The company has opened 906 stores and sign 34 Master Franchise agreements crossways 33 countries worldwide, its strength is built upon a strong recognized brand synonymous with coffee quality and industry leading franchise systems. Gloria Jeans Coffees has contend a major role in the development and growth of the retail coffee market in Australia.Our team of Franchise Partners are passionate about the brand and its products, and have the dedication and determination to succeed. Gloria Jeans Coffees is one of the top 30 fastest growing franchises in Australia and is also listed as one of Australias top 1,000 companies and top 500 Private Companies (Source BRW 2007/2008). The company has been recognized for their systems, most recently benignant the Food Franchisor of the Year 2007 in the PricewaterhouseCoopers worth in Franchising Awards and 2006 International Franchisor of the Year awarded by the Franchising and License Association, Singapore.Passionately committed to creating the ultimate coffee experience for every guest from bean to cup, the Gloria Jeans Coffees difference comes from a true dedication to handmade coffee from hand picking beans to handcrafting each single(a) cup. Gloria Jeans Coffees is driven by a desire to be the most loved and respected coffee company in the world. They are committed to leaving a positive net benefit to both the communities from where they source their coffee and those communities they serve. With the sale of each cup, Gloria Jeans Coffees helps to expect local and international communities through their partner programs.Over the last year Gloria Jeans Coffees has made a big investment in new resources, systems and tools that will take their franchise mannikin to the next level globally . The team has put in place leading-edge platforms, systems and tools that have modify their business and created a robust feign that can be implemented successfully and consistently across their overseas markets. Gloria Jeans Coffees provides on-going management and support from the moment new Franchise Partners join the Gloria Jeans family. The Gloria Jeans Coffeesbusiness stickeris afranchisingsystem similar to many fast-food chains.Franchise owners have to pay franchise fees and royalties on their sales as well as operating costs. The organizations control panel consists of chairman Nabi Selah, and directors John Dwight, Peter Irvine and Andrew Tyndale. Product Coffee houses serve and sell a range of espresso coffee drinks, cold drinks, intermingle and estate whole bean coffees and specialty teas along with pastries and coffee accessories. Gloria Jeans Coffees recently purchased through auction an allocation of the whole coffee bean that came fifth in Brazils instill of E xcellence awards, Niche/Small butt joint MarketGloria Jeans Coffee is soon targeting small market segment, young adults segment, which comprises people age 18 to 25 years old, compared to Starbucks, 15 to 64 years old. Besides that, Gloria Jeans mainly focuses on female customers, where half of the sales came from that particular gender. Customers Are More Demanding Nowadays, customers are more knowledgeable towards coffee. Besides, there is no geological fault cost to other competitors. They know what different types of coffee taste like and what variety of beans came from where. Thus they only drink those that they prefer and they like.Customers are price sensitive, where a slight change in price might lead to change in favorite(a) brand due to the low permutation cost. This delegacy that if customers do not get what they want from a brand, they will have no obligations to switch to the other brand, or they might as well buy coffee beans from supermarkets and brew themselve s, which is one of the reason why sales is declining. Highly rivalrous Industry There are a lot of brands that selling the same product, which is coffee. intimately of it is already well established. Thus it is a highly competitive industry where all are fighting for a share in the industry.The reason for many companies being in the same industry is because of a profitable market and low entranceway barrier. Growth in specialist coffee shops such as Hudsons Coffee and Starbucks Coffee took up a huge portion of the share in the market. excerption of Franchisee/Partners Gloria Jeans is very particular in selecting franchisees or partners. The company stands by their determine, which is Our partnerships are based on integrity and trust. They only choose those that they prefer and they feel good with. Logo description Gloria Jeans coffeelogo colorsare two dark glasses of brown, orange, yellow, and silver.The logo itself is a coffee cup with steam coming out of it. The catchword is e scape the daily grind are full of meaningful in a coffee lover life. pic 3. 3 Customer Retention strategies Operations Gloria Jeans Coffees progress to to develop their operations in retail business milieu by using several channels. One of their distribution strategies is having a very well cognize third party companies that basically shares their beliefs, value, and freight to quality. Gloria Jeans Coffees also expand their coffee business by making their coffee and coffee-related products available via mail order and the valet de chambre Wide Web.This suits their main slogan, which is, making It Glorious (Gloria Jeans Coffees n. d. ). present / Joint venture with society Our success is thanks to the communities that support us, and in rejoinder we aim to give back whenever possible. We strive to have a positive move, both on the communities from where we source our coffee and the communities we serve. Gloria Jeans Coffees core value of picture in People, Building and Chan ging Lives Gloria Jeans Coffees in Singapore has collaborated with orb Vision International by sponsoring heptad children through the Child Sponsorship Programmed.The Child Sponsorship Programmed supports the worlds less fortunate children from various countries by addressing the root causes of poverty and diseases, helping these children, their families and communities break the cycle of poverty, and empowering them to help themselves in the future. A Bean for a reverie for our sponsored children. When you buy a Happy cooky at our outlet, part of the proceeds will go towards the outlets sponsored child. The bean represents the dreams that you will help fulfill, and the card shows your support for the Child Sponsorship Programmed.Customer Service Due to the companys family spirit, they tend to take customer service as an important role and expect their partners would share these values in the area. Since Gloria Jeans Coffee houses around the world are known for providing a very friendly milieu and offers a personalized service. Therefore, Ian Martin, group header executive of Gloria Jeans Coffee franchise said that, At Gloria Jeans we dont reprimand about customer service because we dont have customers, we have guests. This is more than emantics we dont see ourselves as retailers, but as a coffee house, serving guests, and you treat guests differently from customers (Franchise descent 2007). This is one of Gloria Jeans Coffees strength as it is proven that they do take their consumers seriously. Production-Operations Gloria Jeans Coffees stores are typically more like a gift shop concept than a specialty coffee outlet. Stores vary in size and located in a variety of settings, including overlooking parks and gardens, the beach, and main thoroughfares. Most of the location chosen for their outlets normally is a metropolitan area which most of people usually go.They believe in the concept of higher volume, higher chances of having customers. The product mix varies between each store based on the size and location of the store. It was a take-away concept, which is totally un-Australian. Marketing Gloria Jeans Coffees positions their products on quality and experience, rather than just offering coffees. A par of specialty drinks with its competitors reveals very minor differences. Gloria Jeans Coffees image is one of the key elements to their success. The company has realized that people dont only come for the coffee they come for the atmosphere.People socialize, read, demand, dine, or just enjoy the music while drinking their coffee. By knowing this, Diedrich Coffee try to make their stores unique in some way or another that will create a vibrant store atmosphere. interrogation and Development Gloria Jeans Coffees claim research and development (R) as one of the main factor to be successful in the market thus they everlastingly urge their employees to be innovative and creative. This is ostensible through the continuous devel opments of new and elicit products, being the various drink flavors and coffee related products.By introducing more and more new products and by developing new distribution channels, it coincides with Gloria Jeans Coffees goal of becoming the most loved and respected coffee company in the world. 3. 4 Services Recovery Strategies Caring for Upset Customers Now and again there are strangulate to be businesss. A customer may be dissatisfied with his meal or may find the quality to be below his standards. There are special training for host and they have to imitate it, in able to get check-out procedure of services. At Gloria Jeans Coffee they are 100% sure servers know the best ways to handle customer complaints.Retaining upset customers can be a challenge. By putting in the effort and respect to recover distressed customers, usually Gloria Jeans may be able to convince their customer to regaining to in the future. Customer Comment card Customer comment cards are recently use and most type of way in evaluating the customer experience. Customer comment cards are typically set out on the table or delivered by the server at the end of the meal. Customers can rate qualities of the Gloria Jeans Coffee cafe, such as food presentation, menu pricing and server friendliness. 4. 0 COMPARATIVE ANALYSISThe definition of proportional analysis are the item-by-item comparing of two or more similar alternatives, processes, products, qualifications, sets of data, systems, or the like. In be, for example, changes in a financial statements items over several accounting periods may be presented together to point out the emerging trends in the companys operations and results. 4. 1 Comparisons Starbuck Coffee and Gloria Jeans Coffee in term of Customer Retention Strategies In order to maintain the customers for both companies in this industry, there have to make sure that their customers always satisfied with their product.The definition of customer retention strategy ar e helps the organization to persist in their sales up, to create social and morphological bonds and build engagement to delight the customers. The top strategies to retain customers are market to the living clients, connect with the customers, ask for feedback and input, share resources, reenforcement customers for staying, be consistent in the undertake and interactions, and follow through on the commitments, and nurture learning. It is well documented that optimizing customer committal has a direct and positive impact on a companys financial performance and strategy.Increasing customer loyalty through improved customer experiences can be driven by the shrewdness gained from a comprehensive customer feedback program. at a lower place are comparisons table for both company. 4. 2 Comparisons Starbuck Coffee and Gloria Jeans Coffee in term of Services Recovery Strategies Service recovery has drawn the attention of researchers and academicians recently. The concept of service recovery is seen as both business practice and focus ofmarketing study which has developed over time.Perhaps the strongest single factorthat causes service failure is the nature of service products themselves, which increase the possibilities of errors, or service failures, and thusly the need for recovery. Most scholars point out that the difference between tangible products and intangible services has increased customer awareness of the possibility of service failures eitherfrom the operable perspective or from the customers viewpoint and its difficult for marketers to generalize and to meet customerexpectations. Besides, service variance has been identified as ongoing bother both for marketing and quality managers.Below is the table of both companies for services recovery strategies. 5. 0 CONCLUSION 5. 1 Conclusion for Starbucks and Gloria Jeans As one of the famous coffee brand shop, the coffee shop does well in the field of marketing. correspond to the analysis of the shop s situations concerning the marketing mix and positioning, a clear picture of the shops competitive advantages can be achieved. Generally speaking, there are some important factors that help the shop to achieve business success, which include convenient location, guaranteed high quality of both coffee and service and the Starbucks and Gloria Jeans brand itself.On the other hand, this research also gives some recommendations to help to solve problems found during the course of research. For example, the shop should pay more attention to create a more comfortable environment in the guest area, and be more positive to introduce the penis Card which can help to build more stable and loyal customer relationship. 5. 2 Recommendation for Starbucks Coffee Based on the analysis, there are some issues should be taken into considerations to make further improvements for the Starbucks coffee shop.First one is based on the customers expectation survey. Some customers suggest that Starbucks shou ld offer more comfortable armchairs and coaches, canopy and put back the outdoor point with the wooden floor as same as the indoor(a) decoration. In service industry, customers often look for tangible clues, namely physical leaven which can influence customers evaluation of service quality. In this case, there is knowledge gap between the service providers and the customers perceived service quality.More comfortable environment can help create friendlier atmosphere, which enhance the supplementary services by adding values to customers. It is more attractive to customers, especially when they want to have a relaxed time in this Starbucks shop except for a cup of coffee. Besides that, many customers were surprised when they hear that Starbucks also offer a pay back card called Starbucks Card Visa, which, however, is not introduced to customers by staff, compared to the Gloria Jeans positive attitude to introduce their discount card to customers.Loyalty final payment programs ca n offer real customers incentives to remain loyal and perhaps even increase their purchases. In this case, the coffee shop appears negative to reward their customers, which is easily resulting in customer defection because customers will feel like being defected when they get to know the truth. The shop should realize that existing customers are more profitable while winning new customers are costly. Thirdly, should pay more attention to educate its customers about Starbucks coffee culture. Starbucks does well in brand create.Besides good coffee, it also provides its customers a very particular type of experience called the third place, a place away from their home and work, where people can meeting friends and business partners or just get relaxed by reading a book with a cup of gourmet coffee. This is the Starbucks positioning, the selling point. However, according to the survey results, no one knows it. The shop should realize that differentiation is most of the time why people buy. A clear concept of what the difference is will directly pull customers to come in. There should be a complete consideration about the cost issue before taking action. 5. Recommendation for Gloria Jeans Coffee Product Uniqueness Gloria Jeans should opt for get around coffee beans or a variety of coffee beans from around the world. Beans could be obtained from areas such as South America and Indonesia. These are the places that venture into to obtain variety of beans that suits the consumers. By doing so, consumers will definitely have a variety of brew that they could choose from, withal, the special beans could even provide a give out taste of coffee for different types of consumers. use low fat milk, creamer and artificial sweetener could benefit those whom are disordered about fleshiness and have obesity problem.This specially runs to them as it is less fattening and less sweet, thus it could comply with World Health Organizations agenda of providing healthier food a nd beverages. Product Differentiation Gloria Jeans should provide food to customers instead of only cakes and pies. This is because manner of walking in customers would find it convenient to dine in instead of just buying coffee from the outlet. Menu such as eat sets and set lunch should be provided besides serving light food such as sandwiches and cakes. Raising standards Most walk in customers look for a cozy and fiery place to hangout when they enter the outlet.Gloria Jeans could provide a better environment for them by using comfortable sofas and furniture, warm ambience with music and also providing obstruct facilities. This will improve consumers perception towards the outlet. modernistic equipment such as The Clover, which is a narrow brewing machine that allows a barista to quickly deliver one freshly brewed cup of coffee at a time, would be serviceable. It takes quite some time for a freshly brewed cup of coffee to be served to customers with traditional equipments, thus it might lose some customers whom could not wait.Many people underpin coffee outlet is because it is a unbiassed place for people to talk about business and do their homework and assignment. This means that internet connection is very useable for them, including students whom usually do their assignments and homework at the outlet. Providing Wi-Fi service to them might benefit Gloria Jeans, as more people will rat the outlets for usage of Wi-Fi, which will indirectly think to purchasing of coffee in the outlet. maturation baristas standards Providing further training such as entrepreneurship skills and management skills to baristas might improve their services.Baristas will feel more knowledgeable in handling situations that might occur. Giving baristas extra incentives such as entertainment recompense and company trips might boost up their morale, which might indirectly increase their productiveness level and decrease the turnover rate. cover the target market Gloria J eans target market in considerably small, where there only target people aged 18 to 25 years old compared to other competitors. They could widen their target market to cater students as well as corporate business people.This can be done by widening the operation to hotels and resorts, healthcare, college and university campus environments and business and industry cafeterias. Besides that, they could provide kids menu, which could be favorable to those families that brings their children together to Gloria Jeans outlet. Increase Customer Awareness Gloria Jeans hardly did any advertise and promotions. They should advertise in local newsprint on their special promotions and their new products to gain customers awareness. Celebrity endorsement could also be useful in the sense that Gloria Jeans is their choice of coffee.This will gain attention of the fans of the eminence and also people in public. local celebrities such as Nicole Kidman is prove to be useful as a marketing strateg y in the sense of famous person endorsement. Social and environmental effort can be seen as a good way to increase customers awareness towards the brand name. Doing charity work such as documentation the coffee bean farmers, building schools and clinics could be seen as a useful tool to gain worldwide attention towards what Gloria Jeans is doing for the world. They could also be part of Governments plan of reducing the consumption of electricity and water by doing so in the outlets itself.Customer incentives Gloria Jeans should reward their loyal customers with membership card or loyalty card to encourage them to stay loyal to the brand and also continue patronizing. These rewards will be full to them and make them feel happy and treasured. They could provide them with discounts coupons and free refills for them who have the membership card, and encourages those that have not sign up, to sign up for these benefits. Franchisee Criteria Gloria Jeans has a strict policy in choosing f ranchisees for their business. This causes a lot of potential franchisees withdrawn from franchising for Gloria Jeans.The company should be more lenient towards the requirement in selecting franchisee or partners. But then also they have to do suitable power research on the background of the franchisee before choosing them. This is because they reflect the brand image of the company when they are operating under Gloria Jeanss name. Choosing the Right Partner From the problem regarding funding Mercy Ministry against anti-gay society, Gloria Jeans should discontinue the funding of it in order not to meddle with serious issues that could jeopardize the business.Instead, they should fund beneficial organizations such as Red lunate Society and World Wildlife Fund. This will also help promote Gloria Jeans name worldwide, as a form of consumer awareness 6. 0 REFERENCE ? http//en. wikipedia. org/wiki/Gloria_Jeans_Coffees ? http//www. gloriajeans. com. sg/our-drinks/ ? http//www. starbuc ks. com. my/ ? theentrepreneurshipjournal. wordpress. com/ /customer-retention-strategies ? www. slideshare. net/Spartanski/starbucks-case-analysis ? http//www. ukessays. com/essays/marketing/gloria-jean-coffee. php