President Store Corporate operated around 300 Starbucks coffee outlets in Taiwan under a joint venture arrangement in 2013. It also ran over 2,000 of its own City Cafe outlets across Taiwan. Both enjoyed good market share and there appeared to be little cannibalization. What could be the reason for this in the competitive coffee landscape in Taiwan?

STARBUCKS

Starbucks was founded in the U.S. in 1971 and its main product was Arabica coffee beans. In 1987, Howard Schultz took over Starbucks and introduced the roasting technologies and ambience of the Italian cafe. By May 2014, Starbucks had over 23,180 stores worldwide in 64 countries. Starbucks outlets primarily sell coffee, but also offer other hot and cold beverages, pastries, sandwiches, and snacks. Starbucks introduced low calorie coffee in 2008 and instant coffee in 2009. In 2010, Starbucks started selling beer and wine in some outlets in the U.S. In 2011, Starbucks introduced the Trenta, a 31-ounce cup of coffee. Starbucks ventured into the juice bar business in 2013.

In January 1, 1988, the President Starbucks Coffee Corporation in Taiwan was officially founded as a joint venture between Starbucks Coffee International, Uni-President Enterprise Corporation, and the President Chain Store Corporation. Many people have suggested that Starbucks, as an international brand, has basically transplanted the American coffee culture into Taiwan. The concept appears to be good quality coffee at high prices to be enjoyed in a leisurely manner with friends. Coffee on offer includes cafe latte, vanilla latte, hazelnut latte, caramel macchiato, cafe mocha, and cappuccino with a price range of NT$75 (US$2.46) to NT$155 (US$5.08). However, subtle differences can be observed. The pastry cases look similar but their contents are different and include offerings such as curry chicken cannoli. There are numerous tea options including rose fancy tea, green tea, jinxuan oolong, bi luo chun, and oriental beauty (the latter three are specialty Taiwanese teas).

By 2013, Starbucks had almost 300 outlets. Over the past three years, Starbucks in Taiwan has opened 20 to 30 new stores each year, and all stores have achieved their revenue targets and contributed to 10 percent sales growth over the last few years. A research study has concluded that Western culture adoration was an important dimension in coffee consumption for Taiwanese customers at Starbucks. Overall, Starbucks engages in experiential marketing, with the consumer associating the brand with specific smells, tastes, visual elements, and sounds.

CITY CAFE

In 1986, the President Chain Store Corporation launched Cafe Americano through its 7-Eleven chain stores. In 2004, the company began to shift from the American style Americano concept to the new 24-hour Italian City Cafe concept without closing the Americano outlets already in the 7-Eleven outlets. By 2005, there were 500 CITY CAFE outlets, 1,000 in 2007, and 2,000 in 2009. Television advertising was used to build brand awareness and image. The theme used was, “The entire city is my coffee shop;” targeted at students and workers aged between 20 and 40. The concept appears to be a local coffee brand offering low priced coffee anytime and anywhere. Coffee on offer includes latte, cappuccino, and City blend, with prices from NT$25 (US$0.82) to NT$45 (US$1.48).

CITY CAFE started a Music Conservatory in the Hankyu Department Store outlet in Taipei where aspiring local singers and performers can showcase their talents. Performers in March 2014 included Taipei Soul Brothers, featuring five musicians from three different generations, and Lin Ling, a local Taiwanese girl who has been performing since the age of five.

The success of the CITY CAFE coffee bar concept has resulted in many convenience chain stores and fast food chain stores near schools, offices, hospitals, subway stations, and train stations duplicating the idea. Examples of concepts by convenience stores include Mr. Brown Coffee of Family Mart and OK Cafe of OK Mart. McDonalds also launched the McCafe.

According to a review, the coffee scene in Taiwan can be categorized accordingly:

I.      Foreign Cafe Chain

This group is currently dominated by Starbucks. They offer mainly espresso coffee at very high prices of NT$90 (US$2.95) to NT$180 (US$5.90).

2.     Specialist Cafe

This group offers excellent coffee with a large variety of beans. They have varied origins, create their own blends, and roast their own coffee. They sell beans and offer a mix of espresso and brewed coffee. The baristas are experts and know their coffee in a passionate way. Prices of their coffee range from NT$60 (US$1.97) to NT$150 (US$4.92). Examples of such cafes are Orsir and Mojo Coffee in Taichung.

3.     Specialist Cafe Chain

This group offers excellent coffee but with a more limited range. They sell beans and offer mainly espresso, though they do have limited brewed coffee options. They have trained baristas, and the price range is NT$30 (US$0.98) to NT$70 (US$2.30). Examples of such cafes include Wilbeck in Taipei and Cama Cafe across Taiwan.

4.     Taiwanese Cafe

This group serves a variety of coffee from different regions in Taiwan. The cafes are operated by single owner and they roast in small batches. They are often in business for a long time (over 15 years) and they have a small group of loyal customers. They offer mainly brewed coffee, but they have espresso as well. The price range is from NT$70 (US$2.30) to NT$120 (US$3.93).

5.     Taiwanese Cafe Chain

This group serves a single unannounced blend of coffee with no other options. They serve mainly espresso though some may offer drip or brewed coffee. Some baristas may receive training but quality is uneven. The prices range from NT$35 (US$1.15) to NT$75 (US$2.46). Examples are 8S°C and Bakery.

6.     Convenience Store Coffee

This group offers bean to cup machine coffee. They use cheap Taiwanese roasts of unannounced origin. Prices range from NT$25 (US$0.82) to NT$60 (US$1.97). Examples of coffee entities in this group are City Cafe by 7-Eleven and Mr. Brown Coffee by Family Mart.

Three main groups have been identified:

Coffee Connoisseur

It is primarily interested in discovering new, high quality brews of coffee. He is very price insensitive and would frequent specialty cafes with baristas who are experts and know their coffee in a passionate way.

Café Hangout

The Café Hangout Coffee drinker values his coffee as an aspirational drink, to be drunk with a group of friends or to be seen consuming the beverage by others. He is relatively price insensitive, valuing the brand of the Café over the coffee type. The ambience and mood of the café is important to him. He would prefer to have food options available with his coffee as well. This group is a mix of students, who visit cafes as a place to hangout or study at, and working professionals, who value the café as an informal place to relax.

Coffee Fix

The Coffee Fix Coffee drinker values his coffee as his daily sustenance, requiring the energy boost which caffeine from the coffee provides. He may drink up to several cups a day and is not overly concerned with the quality of the coffee. He is also price sensitive as he is not after a premium product.

A survey found that the Taiwanese drink coffee in the following frequencies per day: one cup-46 percent, two cups-13 percent, and various frequencies depending on day and occasions-36 percent. The most frequently consumed coffee is: latte-48 percent, Americano-19 percent, cappuccino-17 percent, cafe mocha-4 percent, others-12 percent. Their favorite coffee venue is: Starbucks-29.1 percent and City Cafe-29.1 percent. Areas in which Starbucks must improve: prices-68.1 percent, promotional offers-15.3 percent, charity activities-9.2 percent, quality-6.9 percent, and refreshments- 6.1 percent. Areas in which City Cafe must improve: quality-29.4percent, refreshments- I4.7percent, promotional offers-14.0 percent, store ambience-13.3 percent, and peripheral merchandize-9.8 percent.

Question 1 What variables should be used to segment the coffee market in Taiwan?

(please answer the question with the case study)

1. Discuss the problem of the effectiveness of capitalism to produce prosperity but its tendency to produce inequalities and greed. Do you agree or disagree with this assessment? Discuss.
2. Does the Bible support a capitalist economy or a socialist economy or neither? Defend your answer.

Implementation strategy of Ashland University MBA program

Strategic Planning and Business Policy

Using lessons from Impact Chapter 4 (“Routine Correspondence”), write the letter as below. Include all the needed format elements of a business letter.
A year ago, you bought an iPhone at Apple for $299 plus tax. It was the first phone you had ever bought with your own money, and you were thrilled. But after eight months, things began to go wrong.
The text-messaging display failed, so you brought the phone to Apple for repair. The sales clerks were really nice about it, and the phone was repaired for free under its warranty. Next the camera stopped working, and again you returned the phone; again the sales people were pleasant, and again the phone was repaired under warranty.
But now the display has failed again, and the one-year warranty has expired. You are fed up, and, expired warranty or not, you want Apple to replace the phone for free, since it seems to have had some fundamental problem all along.
Using our course lessons for delivering routine messages, write a claim letter to Apple, to present your request-with-an-explanation. Write to Mr. Salman Srivastava, Customer Service, Apple Store, 50 Rideau Street, Ottawa, ON K1N 9J7. Give yourself the home address of 255 Somerset Street East, Ottawa, ON K1N 6V6. Include all the needed format-elements of a business letter. Use your own name and the current date.
Write at least three paragraphs. Do not copy the wording on this questionnaire to supply your own wording: There would be penalties for that. Your letter will be graded on its organization, verbal clarity, and format. Also, in presenting your claim, will you want to enclose anything with your letter?
Question

Why would a company want to merge or buy another company?

Make up a story on the following work as if it were about you

Intelligence is measured across multiple dimensions.

Identify your strengths and how you would you rise to the challenge of your weaknesses?

Team building

Select One
involves including qualified people in the venture
does nothing
is overrated
does not threaten the entrepreneur's autonomy

Entrepreneurs now view social/environmental issues as

Select One
global competition
part of the future of business
affecting only certail industries
a minor concern

The adverse impact of ___________ can be so destructive that individuals within the enterprise will tend to avoid entrepreneurial behavior

Select One
traditional management techniques
specific entrepreneurial strategies
informal meetings
innovative climate rules

In following the rules of innovation, a manager should do all the followings, except

Select One
encourage action
use formal meetings whenever possible
reward performance
punish failure

The most pro-active position for a corporation to take in regard to social responsibility would be termed

Select One
social obligation
social intensity
social decisiveness
social responsiveness

the course will focus on the Lean Enterprise. Discuss the components of a lean production system and how this type of system would assist Amazon with production. Must be at least 150 words of more

Assignment No.: 3

Marketing Plan

The Company hired you as Marketing Manager of Saudi Arabian Region for "Canon" Company to start its activities in Saudi Arabia.

You have to establish a marketing department starting from the Analysis of the market, formulate overall marketing goals, objectives, strategies, and tactics within the context of an organization's business, mission, and goals designing and planning the entire function.

Write a Marketing Plan considering the following points

1. Introduction, Goals and Objectives

To introduce this section you should include the "mission statement" of the business; an idea of what its goals are for customers, clients, employees and the consumer.

1. Introduction about the business.
2. Business vision and mission
3. Business objective.
4. Products and services offered

2. Environmental Analysis

Conduct an environmental analysis that looks at and comments on your local area and your network of business contacts, competitors and customers.

3. Target Market Analysis

Identify the target market, describing how the company will meet the needs of the consumer better than the competition does.

A factor analysis can be applied in many business fields such as marketing, economics, management, finance, and etc.  

Recommendation for marketing mix in Walt Disney Company ?

1. Which type of organizational structure does Saudi Aramco currently have? Functional structure, divisional structure, or matrix structure? Provide evidence.

(Question is not based on a case, but in general as of today for Saudi Aramco.)

how good are at preparing for and rehearsing for an interview? how do you think you appear to other people in an important interaction

Case Analysis

Lay’s had $800 million in sales within the $2.7 billion U.S. potato chip market. But, it had no product to compete directly with Procter & Gamble's Pringles, which had a 60% share of the "pre-formed, stacked, potato-chip-in-a-can" market segment.

In August 2003, Frito-Lay launched its Lay’s STAX potato crisps, which are stacked in a portable, resealable, crush-resistant container.

Frito-Lay identified premium snack consumers in the United States who were young adults as their target market. Frito-Lay's STAX promotional objectives were two-fold:

1. Create awareness.
2. Achieve sales by reaching both retailers, and ultimately, consumers.

Frito-Lay developed a major IMC effort directed at its retailers to encourage and support them in their decision to stock and sell the new line of Frito-Lay’s STAX potato crisps. At product launch, there were four flavors. However, by early 2010, there were six flavors sold in the United States. In 2017, there are 13 flavors of STAX chips. As the product moves through the product life cycle, the goals (inform, persuade, remind and connect) should change as well as the the integrated marketing campaign.

Assignment Directions

Part 1

Building upon the background you just read, conduct additional research, which should include Frito-Lay, Frito-Lay's STAX potato crisps, marketing campaigns conducted by Frito Lay, as well as IMC programs. Visiting the Frito-Lay (Links to an external site.) website may be a good place to begin your research.

Part 2

Based upon the synthesis of your research, please develop an IMC program for the Frito-Lay STAX potato crisps that addresses where the product currently is on the Product Life Cycle. Using the following matrix as a guide, be sure to describe in detail your "BIG IDEA" and recommendations for specific actions (e.g., advertisements, coupons, POP displays, etc.) and why you believe these actions will help you reach your IMC objectice. Be sure to explain how these work as part of an IMC program and not as stand-alone elements. What is the cohesive message you are trying to portray?