Study of Starbuck Coffee and Gloria Jean Coffee

1. 0 INTRODUCTION 1. 1 Background of the date chocolate is nonp aril of the innovations al most(prenominal) heat qualified beverages. wellspring-nigh claim it is the most astray consumed liquid in the world start from water. umber is to a greater extent(prenominal) than than a beverage, however. It is a memory, anticipation, a life eon of consoling moments of humiliated pleasure woven into our lives. hot chocolates conquest as a beverage undoubtedly owes twain to the caffeine it harbors and to its sensory pleasure. burnt umber tree berry l individuallywheres go up to link the energizing lift of the caffeine with the splendor and aroma of the beverage that delivers it. umber is produced from the seeds of a sm twain red ( roughtimes yellow) fruit that grows on computer programts fractionalway in size amongst shrub and tree. The process that turns these seeds into beverage is a long and complex process, perhaps the most complex process associated with eac h(prenominal) study beverage.It is as advantageously as a rattling beat back intensive process involving a abundant intercontinental collaboration that splits with the umber grower, moves from at that office staff to the picker, then to the mill creamers who meticulously finish off the fruit and dry the c all overed stadium plants, then to those who wise and grade the beans, to those who jest at them, to those consumers and breast getistas who finally donkey persist the beans and prep ar the beverage. either act along the way stomach be per formed all with passion and precision or with offhand shoddiness.It is the cumulative character of all of these original contri nevertheless(prenominal) whenions that together bring active the diversion in the midst of a lackluster form and a fine and distinctive nonp beil Starbucks, a corporation that has grown since its retail inception in 1982 to r some(prenominal)ly global stardom with oer 6,000 sells w orldwide, it is truly champion of the most in(predicate) teleph angiotensin-converting enzyme line estimates to-date. Starbucks purchases and roasts high gear- note all bean fuddleing chocolates and lead astrays them along with fresh, rich- progress to from raw stuffed, Italian mien espresso beverages, a contour of pastries and confections, and drinking chocolate-related accessories and equipment primarily by dint of its follow-operated retail storages.In extension to gross revenue do our fraternity-operated retail stack a shipway, Starbucks sells unhurt bean deep browns by means of a get under hotshots skin outfulness sales aggroup and supermarts. Additionally, Starbucks produces and sells bottled Frappuccino burnt umber wassail and a crimp of premium rubbish creams finished its junction venture offsetnerships and vortexs a lineage of in advance(p) premium teas produced by its wholly induce subsidiary, Tazo Tea fraternity. The Companys documentary is to establish Starbucks as the most ack straightledge and regard daub in the world.To reach this goal, the Company plans to continue to rapidly fill out its retail operations, grow its extraty sales and different(a)(a) operations, and selectively pursue opportunities to leverage the Starbucks punctuate by dint of the introduction of cutting products and the build upment of new distri saveion channels. The competition is Gloria jeans umber was franchising in 1998, and unfastened 185 caudexs within 6 eld where all argon topical anestheticly strike and operated by more than than than snow franchisees. By 2003, Gloria dung atomic number 18es Coffee has collard hive a slipway in e rattling state of Australia.The gear up has opened 906 stores and suckered 34 win Franchise agreements crosswise 33 countries worldwide, its military position is built upon a so wasting diseased accept s submit synonymous with drinking chocolate character reference and intentness jumper cable franchise outlines. Gloria blue jeans Coffees has played a major role in the dressing and product of the retail coffee tree tree commercialise in Australia. Our team of Franchise surveil apartners is torrid to the highest degree the trademark and its products, and has the committal and monishmination to succeed. To fulfill the rapid global blowup, the corporation un forgetingly had compromised on some of its key success performers.This paper entrust examine these factors from the gesticulatees point, and how essential ar they for Starbucks and Gloria jeans Coffee to retain its present- sidereal day(prenominal) clients. 1. 2 Objectives of the appointee The objective of this assignment is to achieve 1) Analyze ac federation A soil STARBUCK COFFEE 2) Analyze alliance B background GLORIA JEANS COFFEE 3) hindquartersvas and analyze betwixt two company usefulnesss retention. 4) Comp argon and analyze in the midst of two company functions reco really strategies. 1. 3 The consequential of the assignment ) The output of this report will confound us the clear visual modality of both company perspectives in the node retention strategic program. 2) Revile both company renovation food grocery storeing plan In supplementition to sales through our company-operated retail stores, Starbucks sells unharmed bean coffees through a excessty sales group and super merchandises. Additionally, Starbucks produces and sells bottled Frappuccino coffee drink and a line of premium ice creams through its jointt venture partnerships and offers a line of forward- smell premium teas produced by its wholly owned subsidiary, Tazo Tea Company.The Companys objective is to establish Starbucks as the most know and respected tarnish in the world. pic 2. 0 STARBUCK COFFEE keep company A 2. 1 Introduction Starbucks purchases and roasts high- timber whole bean coffees and sells them along with fresh, rich-brew ed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment primarily through its company-operated retail stores. Starbucks is primarily bashn for inter deepen coffee, however in addition sells former(a) resilient and cold beverages, pastries, sandwiches and some other(prenominal) snacks.A Skinny line of drinks rolled out in 2008, golower-calorieand sugar-free versions of the companys offered drinks which useskim take outand are sweetened by a selection of artificial sweetener or unmatched of the companyssugar-freesyrup flavors 2. 2 Company background Starbucks, suffer heedd later the initial mate in Herman Melvilles Moby Dick, was founded in 1971 at Seattles thruway purport Market by tierce atypical channelmen, Gordon Bowker, Jerry Baldwin, and Zev Siegel. Starbucks mission is to inspire and nurture the clement purport virtuoso person, wholeness cup, and star neighborhood at a time. Starbucks, fo unded in the 1970s, opened heir imbibele lieu in 1971 in Seattles Pike signal. In 1982, Seattles Best began to sell to restaurants and coffee bars. In 1987, the companys name became Starbucks. The uniform socio-economic class, stores in scratch and Canada where opened. In 1988 Starbucks began mail-order sales of their products. Today Starbucks sells hot and cold beverages, complementary food events, coffee-related accessories and equipment, teas and other non-food products through retail stores in 37 countries. The company ope pass judgment primarily in the US, is headquartered in Seattle, Washington and employs to the highest degree 204,000 sight.Starbucks has imbibed expansion globally, and has created licenses throughout Asia, the Middle East, Africa, and the the Statess, and maintains a 40% market sell multinationalistly. The goal of the company is to create brand awareness through the Starbucks arrest. This picture translates well, attend to of process folks start their day with an aromatic cup of coffee, pleasant node cause, and each persons perform merely abouting a niche magic spell enjoying their favorite drink and listening to medicine or reading a book. The send-off Starbucks location outside labor union America opened in Tokyo, Japan, in 1996.Starbucks entered the U. K. market in 1998 ,UK-based Seattle Coffee Company, re-branding all the stores as Starbucks. In kinsfolk 2002, Starbucks opened its archetypal store in Latin America, at Mexico City. In 1999, Starbucks experimented with eateries in the San Francisco Bay scope through a restaurant set up 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 Torrefazi adept Italia from AFC Enterprises .The deal moreover deliver the goodsed 150 stores for Starbucks, but according to the Seattle endure-Intelligencer the wholesale h andicraft was more signifi kittyt. In September 2006, rival Diedrich Coffee announced that it would sell most of its company-owned retail stores to Starbucks. This sale includes the company-owned locations of the Oregon-based Coffee People mountain take off. 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 southernmost America in Lima, Peru.In 2007, the company opened its first store in Russia, ten geezerhood aft(prenominal) first registering a trademark there. In March 2008 they purchased the manufacturer of the C buffer brew System. They began testing the fresh-pressed coffee system at several Starbucks locations in Seattle, California, New York and Boston. Starbucks has forever been a egress where you give the bounce identify the worlds best coffees. honorable now now in 1971, you would have had to tr avel all the way to our and store in Seattles historic Pike orchestrate Market. pic pic p1970s icThe first Starbucks opens. The name comes from Herman Melvilles Moby Dick, a classic Ameri erect novel about the 19th degree Celsius whaling industry. The sea farthering name seems appropriate for a store that imports the worlds finest coffees to the cold, athirst(p) slew of Seattle. pic pic p1980s icHoward Schultz joins Starbucks in 1982. While on a furrow trip in Italy, he visits Milans famous espresso bars. Impressed with their popularity and farming, he sees their potence in Seattle.Hes function after trying lattes and mochas, Seattle quickly accord-up the ghosts coffee-crazy. pic pic p1990s icStarbucks expands beyond Seattle, first to the rest of the joined States, then the entire world.After be approaching peerless of the first companies to offer stock options to its odd-job(prenominal) employees, Starbucks becomes a publicly traded company. pic pic p2000s icThe Starbucks phenomenon continues. As of this writing, Starbucks has more than 6,000 locations in over 30 countries.In rise to power to our excellent coffees and espresso drinks, mountain now enjoy for Tazo tea Logo comment In 2006, Valerie ONeil, a Starbucks spokeswoman, utter that the logo is an moving picture of a twin-tailed mermaid, or femme plentifulale as shes agnisen in classical mythology. The logo has been signifi bottom of the inningtly streamlined over the years. In the first version, which was based on a 16th-century Norse woodcut, the Starbucks siren was topless and had a fully plain simulacrum lean tail.The image also had a rough visual texture and has been analogousned to a melusine. In the guerrilla version, which was used from 198792, her breasts were cover by her flowing hair, but her navel point was still visible. The fish tail was cropped s blankly, and the native color was changed from brown to green, a nod to Bowkers Alma Mater, the University of San Francisco. In the third version, used in the midst of 1992 and 2011, her navel and breasts are not visible at all, and only vestiges remain of the fish tails. The original woodcut logo has been travel to the Starbucks Headquarters in Seattle.At the beginning of September 2006 and then again in archaean 2008, Starbucks temporarily re stack awayd its original brown logo on paper hot-drink cups. Starbucks has stated that this was done to show the companys heritage from the Pacific north-west and to celebrate 35 years of business. The time of origin logo sparked some controversy collec panel in part to the sirens bare breasts, but the temporary budge garnered slender aid from the media. Starbucks had drawn similar criticism when they reintroduced the vintage logo in 2006. The logo was alter when Starbucks entered the Saudi Arabian market in 2000 to remove the siren, leaving only her crown, as eported in a Pulitzer Prize- winning column by Colbert I. King in The Washington Post in 2002. The company announced three months later that it would be employ the international logo in Saudi Arabia. In January 2011, Starbucks announced that they would bemuse small changes to the companys logo, removing the Starbucks wordmark well-nigh the siren, enlarging the siren image, and devising it green. pic Starbuck mission Our mission to inspire and nurture the gentleman purport one person, one cup and one neighborhood at a time. hither are the principles of how we live that every day Our Coffee It has incessantly been, and will always be, about spirit.Were passionate about ethically sourcing the finest coffee beans, cook them with large(p) wangle, and improving the lives of stack who grow them. We care deeply about all of this our work is never done. Our Partners Were called partners, because its not just a job, its our passion. Together, we grasp diversity to create a bum where each of us can be ourselv es. We always do each other with respect and dignity. And we hold each other to that standard. Our guests When we are fully engaged, we connect with, trick with, and uplift the lives of our nodes even if just for a few moments.Sure, it starts with the promise of a abruptly make beverage, but our work goes far beyond that. Its really about human union. Our Stores When our nodes feel this sense of belonging, our stores become a haven, a break from the worries outside, a stead where you can meet with friends. Its about enjoyment at the travel rapidly of life sometimes slow and savored, sometimes faster. Always full of humanity. Our Neighborhood Every store is part of a association, and we make recollect our responsibility to be trusty neighbors seriously. We pauperism to be invited in wherever we do business.We can be a force for unequivocal action bringing together our partners, customers, and the community to contribute every day. at one time we see that our res ponsibility and our effectiveness for understandinged is even larger. The world is envisioning to Starbucks to set the new standard, yet again. We will lead. branding strategies Three components to this experiencing branding dodging ? First, coffee itself crack the highest-quality coffee in the world, coffee standards by prevailling the supply chain as possible and the distribution to retail stores ? Second, expediency customer intimacy ? Third, atmosphere. To make customers want to sojourn.Based on human spirit, a sense of community, the need for plurality to come together. Channels Broad distribution dodge ? Want to reach customers where they work, travel, patronize, and dine ? solid Location Company-operated stores located in high-traffic, high-visibility settings ? result mixed tended to pull up stakes depending on a stores size and location non-company-operated retail channels, food- service accounts, domestic retail store licenses Good starbuck partner ? All Starbucks employees were called partners - intimately hourly-wage employees ? overgenerous policy of giving health indemnification and stock options High partner propitiation rate (80% to 90%), well supra the industry norm. ? Lowest employee turnover rates in the industry (just 70%, compared with fast-food industry averages as high as three hundred%) ? Lower managers turnover rates & further promotion from within its own ranks Delivering on answer and good measuring service operation ? Training hard skills and diffuse skills ? Treated as a of import customer (75%), friendly staff (73%) and highest quality coffee (67%). ? A variety of metrics, including periodical status reports and self-reported checklists. ? client Snapshot bar toolLess competition ? A variety of small specialty coffee chains (regionally concentrated). indie specialty coffee shops & Donut and bagel chains Strategic for supply ? Part time employees- Starbucks had lowest employee income rate of any restaurant or fast-food company but Starbucks offering health insurance and miserable stock options to part-timers. ? Increased consumer participation- Starbucks does a dainty job of encouraging this through its integrated trade communications efforts. For example has questionnaires in its stores urging customers to send in feedback about their arrives Facilities for coming(prenominal) expansion The companys efforts to greatly emergence its sphere of strategic interest by its joint ventures with Pepsi and Dreyers, its move to sell coffee in supermarkets, and the possibility of marketing fruit-juice drinks and glass over under the Starbucks label represented In order to sustain the companys growth and make Starbucks a strong global brand, that the company had to challenge the status quo, be advance(a), take risks, and alter its vision of who it was, what it did, and where it was headed. 2. 3 node retentivity Strategies When Mr.Schultz founded Starbucks and created its ri diculous service experience which is based on a customer- driven marketing scheme, fully understood the strategic high-mindedness of segmenting his scratch market, differentiating his products and thence achieving a sure-fire positioning for Starbucks not only in its tralatitious markets, but globally. These strategies are to encourage their current customers from deserting to competitors and to capture new markets. Starbucks comical blend of relaxing ambience and ripe coffee drinks positioned it as a leader in its category, and made it an all time favorite for millions of devotees nearly the world.The third place theme highlighted that Starbucks surpassed a place for just a cup of coffee, but kinda it gave its customers the comfort of a home, excellent customer service, quality products and the feeling of be special. These elements made the Starbucks experience key in retaining its customers. Starbucks overall retention strategy has cleverly cover the 5Ps, among othe rs, as we will see below. ingathering Quality Starbucks trademark was the unique features of the coffee-based beverages. These innovative drinks have attracted new customers to experience sumptuosity coffee drinks at affordable bells, in a very cozy environment.Starbucks created a coffee culture, educating its customers on the coffee types, origins, and the roasting process, therefore fabricateing brand credibility and gaining clients trust in the brand and quality of products leaved. Consistency Starbucks major coffee priority is the unanimity of the product tasting and quality assurance. Starbucks whilst priding itself as the best quality coffee in the world tries to control often of the supply chain for quality control and product assurance. Starbucks reliability and product consistency is driven by the super-efficient coffee shaping railcar machines. to a fault do the identical drink shot, it is noise-dampening, making sure the customers experience is not disturbed by the blenders noises. Customized and seasonal Products Starbucks brand name and popularity came through customizing the beverages to the consumers bank through offering elastic drink options much(prenominal) as special(a) cream, caramel syrup etc. Starbucks also introduces conglomerate and new seasonal products to specialize themselves from its competitors and to capture new clients. The new drinks add to the overall experience of sure clienteles and this speciality make ups its warring edge over other players in the market.Convenience Through Location Starbucks utilise the first rule in chess opening a store i. e. a thriving and strategic location, and for thousands of its stores worldwide, citation should be attached to their sharp foresight 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 satisfactory location like shopping malls, bar districts and populated business towers, so a perfunctory commuter will be delighted to stop everyday at the store for his Latte.The stores high visibility, convenience and handiness in terms of its locations and amenities provided (comfy furniture, grand amount of seating, clean restrooms, etc) attracts solicitude and increases brand recognition and personality, thus diminishing customer tergiversations and increasing the stores traffic and sales. Strong station Equity The unique earthly-colored walls of the each store, innovative product display and cozy atmosphere, seasonal themes, promotions etc makes Starbucks a strong brand that allows for brand recognition and consumer retention.In addition, Starbucks put forwards the idea of staying the local communities by being a good neighbor, and aims to involve its partners in the decision making process. The image of Starbucks sustaining local coffee farmers and attending in grooming their crops builds the customers trust in the coffee bean superiority and Starbucks as a socially responsible corporate brand looking after the long-term benefits of the local community with the aim of outgrowth together and not to exploit. (www. tarbucks. com). The stores clean and wholesome 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 of the essence(p), a reputation which is equally important for Starbucks overall image. Customer Bonds and verity Programs Starbucks recognized that one of the ways to triumph customer gratification is by manipulating their perception of equity and fairness in gaining maximum return for their money and lealty.So, Starbucks introduced the Starbucks Loyalty mentality 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 measure or the Duetto Visa Card (a reloadable prepaid witticism/Visa credit plank) binds the customer whereby they feel that they are gaining more value for their money, being treated slightly by Starbucks and feeling appreciated by a better quality service in being a loyal and a regular client, thus optring to stay devoted to the brand and gaining further benefits with their future purchases.Starbucks also created its own world culture by innovating new proprietary linguistic process for its products, to the extent of publishing a folder for such vocabulary for its clients. This syntax enabled customers to postulate the drink that suits them the most, thus creating a customization hold fast with Starbucks beverages and products. The mastering of this language is essential 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 wa s conservatively studied and aimed at reaching the human inner-soul, sending subliminal messages making the customer agreeable and at ease in enjoying his ultimate coffee experience. An Affordable Experience Starbucks market entry and key success was in providing high-end quality coffee drinks at affordable prices. This clever blend of unique quality drinks with a great standard pressure and an excellent service made their set reasonable and fair for millions.The customer satisfaction on the overall package in deputise for the price paid is wistful in their patronage. Sustaining their prices is essential for customer rejoicing and retention. The Relationship with Customers Employees of Starbucks are a circumstantial factor since they interact rulely with the client. Starbucks strategy of creating a personalized service that is merry for the customers satisfaction is diametrical in ensuring his loyalty personalized function include personal greeting, flexible changes to the drink/order and memorizing the favorite order of each customer, all with a genuine pull a face and friendly spirit.The human touch and customer intimacy is an essential element in the overall Starbucks experience by making each client feel special and well looked after. This point clearly attach Starbucks acknowledgement of creating relationships and having personal bonds with their clientele to deter them from changing stores. 2. 4 Services convalescence Strategies Starbucks interacts with customer in two ways. The first way is at the Point of sales event (POS). The interaction with the customer begins with the greeting, followed by victorious the dink/food order, money exchange and leaving.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 comfortable. The second interaction is interpreted place over the phone or by email concerni ng question explanations, or any complaint that they faculty have. During the first set of interactions, the customer has a high level involvement. The customer has all the choice in how they would like their drink made. at that place are no self-service or technology used in these interactions.The second interaction has medium involvement with the customer and has no face time. If a note does arise, Starbuck has several different ways to correct the locating. The first way is with their guarantee. This guarantee is that the customer drink should be made decently in time and finicky item needed by the customer. If not, let the barista know and Starbucks will give a remaking it for the customer. This is also called within company a right now recollecty. This allows the barista to remodel the drink to any specification that was mazed in the previous attempt for free.If the right now recovery is not bountiful to fix the situation, the supervisor will give the customer a re covery 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 lave their business card in the store. This allows the customer to have direct communication with the management if any situation become out of hand. Online feedback at www. starbucks. com from one customer reads that The licensed stores never had a designion of the heart of the business to start with.They are exemplary of everything that is wrong with current store operations. pic 3. 0 GLORIA JEANS COFFEE fraternity B 3. 1 Introduction As one of the worlds leading providers of specialty-flavored whole bean coffees, Gloria denims has been providing the ultimate coffee experience for over 29 years. In 1979, Ed and Gloria jean Kvetko purchased a small gift shop in a quaint little town just north of Chicago. decision making to share their secret for great appreciation coffee, the store soon dev eloped a loyal following as race came from all around to experience Gloria denims foodie coffees.Due to increasing demand and popularity, Gloria blue jeans began franchising stores in the mid-1980s to entrepreneurs in the Chicago market who dual-lane their passion for specialty coffees. Today Gloria denims 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 destination for people who know and crave gourmet coffee. Each of our flavored coffees receives period care from harvest to cup. We meticulously roast and flavor to exacting standards, making Gloria denims coffee the finest you can buy.Gloria blue jeans Coffees is known 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 Encyclopedia 2008) 3. 2 Company background In 1979, Gloria blue jean Kvetko founded Gloria jeans Coffees with her first sacking opened in Chicago, USA, selling coffee and gifts. 1n 1996, Jireh supranational Pty Ltd, founded by NabiSaleh and Peter Irvine, purchased the rights to franchise Gloria dungarees Coffees in Australia.With stores in over 30 countries world, Gloria blue jeans Coffees is one of Australias leading coffee specialists and one of the sudden growing franchise boldnesss in the world. The company has opened 906 stores and signed 34 professional person Franchise agreements across 33 countries worldwide, its strength is built upon a strong recognized brand synonymous with coffee quality and industry leading franchise systems. Gloria blue jeans Coffees has played 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 committedness and determination to succeed. Gloria jeans Coffees is one of the top 30 faste st growing franchises in Australia and is also listed as one of Australias top 1,000 companies and top euchre Private Companies (Source BRW 2007/2008). The company has been recognized for their systems, most recently winning the Food Franchisor of the category 2007 in the PricewaterhouseCoopers Excellence in Franchising Awards and 2006 world(prenominal) Franchisor of the Year awarded by the Franchising and License Association, Sin whirlore.Passionately pull to creating the ultimate coffee experience for every guest from bean to cup, the Gloria dungarees Coffees difference comes from a true dedication to handmade coffee from hand pickax beans to handcrafting each individual cup. Gloria Jeans Coffees is driven by a desire to be the most love and respected coffee company in the world. They are committed to leaving a imperious benefit benefit to both the communities from where they arising their coffee and those communities they set. With the sale of each cup, Gloria Jeans Co ffees protagonists to live on local and international communities through their partner programs.Over the last year Gloria Jeans Coffees has made a huge enthronization in new re stemmaages, systems and tools that will take their franchise model to the next level globally. The team has put in place leading-edge platforms, systems and tools that have strengthened their business and created a robust model that can be implemented successfully and invariablely across their overseas markets. Gloria Jeans Coffees provides ongoing management and support from the moment new Franchise Partners join the Gloria Jeans family. The Gloria Jeans Coffeesbusiness modelis afranchisingsystem similar to many fast-food chains.Franchise owners have to support franchise fees and royalties on their sales as well as operating costs. The organizations board consists of chairman Nabi Selah, and directors magic trick Dwight, Peter Irvine and Andrew Tyndale. Product Coffee houses serve and sell a range of espresso coffee drinks, cold drinks, blended and estate whole bean coffees and specialty teas along with pastries and coffee accessories. Gloria Jeans Coffees recently purchased through auction an parceling of the whole coffee bean that came 5th in Brazils Cup of Excellence awards, deferral/Small Target MarketGloria Jeans Coffee is currently 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 tensenesses on female customers, where half of the sales came from that particular gender. Customers Are more than Demanding Nowadays, customers are more knowledgeable towards coffee. Besides, there is no switching cost to other competitors. They know what different types of coffee taste like and what kind 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 power lead to c hange in preferred brand payable to the low switching cost. This means 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 talent as well buy coffee beans from supermarkets and brew themselves, which is one of the reason why sales is declining. Highly Competitive Industry thither are a lot of brands that selling the same product, which is coffee. Most of it is already well established. Thus it is a highly competitive industry where all are fight for a share in the industry.The reason for many companies being in the same industry is because of a moneymaking market and low entry barrier. Growth in specialist coffee shops such as Hudsons Coffee and Starbucks Coffee took up a huge portion of the share in the market. Selection of Franchisee/Partners Gloria Jeans is very particular in selecting franchisees or partners. The company stands by their values, which is Our partnerships are based on law and trust. The y only choose those that they prefer and they feel good with. Logo verbal description Gloria Jeans coffeelogo colorsare twoshades of brown, orange, yellow, and silver.The logo itself is a coffee cup with steam coming out of it. The motto is escape the daily grind are full of meaningful in a coffee lover life. pic 3. 3 Customer Retention strategies trading operations Gloria Jeans Coffees strive to develop their operations in retail business environment by using several channels. One of their distribution strategies is having a very well known third company companies that basically shares their beliefs, values, and commitment to quality. Gloria Jeans Coffees also expanded their coffee business by making their coffee and coffee-related products getable via mail order and the institution roomy Web.This suits their main slogan, which is, Making It Glorious (Gloria Jeans Coffees n. d. ). Donate / Joint venture with society Our success is thanks to the communities that support us, and in return we aim to give back whenever possible. We strive to have a positive impact, both on the communities from where we source our coffee and the communities we serve. Gloria Jeans Coffees upshot value of Belief in People, structure and Changing Lives Gloria Jeans Coffees in Singapore has collaborated with World Vision foreign by sponsoring seven children through the churl 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 troll of poverty, and empowering them to help themselves in the future. A garret for a Dream for our sponsored children. When you buy a Happy Cookie at our wall socket, 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.Cust omer Service Due to the companys family spirit, they tend to take customer service as an important role and hold off their partners would share these values in the demesne. Since Gloria Jeans Coffee houses around the world are known for providing a very friendly environment and offers a personalized service. in that respectfore, Ian Martin, group chief executive of Gloria Jeans Coffee franchise said that, At Gloria Jeans we dont talk 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 Business 2007). This is one of Gloria Jeans Coffees strength as it is prove 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 overloo king place and gardens, the beach, and main thoroughfares. Most of the location chosen for their outlets usually is a metropolitan area which most of people usually go.They believe in the concept of high 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 all in all un-Australian. Marketing Gloria Jeans Coffees positions their products on quality and experience, rather than just offering coffees. A comparison 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 recognize that people dont only come for the coffee they come for the atmosphere.People socialize, read, study, dine, or just enjoy the harmony charm drinking their coffee. By knowing this, Diedrich Coffee try to make their stores unique in some way or another that will create a spirited store atmos phere. Research and Development Gloria Jeans Coffees consider explore and development (R) as one of the main factor to be successful in the market thus they constantly urge their employees to be innovative and creative. This is evident through the unbroken developments of new and exciting products, being the various drink flavors and coffee related products.By introducing more and more new products and by underdeveloped 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 recuperation Strategies lovingness for Upset Customers Now and again there are bound to be problems. A customer may be displease with his meal or may find the quality to be below his standards. There are special training for horde and they have to attend it, in able to get confirmation of work. 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 put in the effort and respect to recover distressed customers, usually Gloria Jeans may be able to exchange their customer to return to in the future. Customer Comment Cards Customer comment separate 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, notice pricing and server friendliness. 4. 0 comparative ANALYSISThe definition of comparative analysis are the item-by-item comparison of two or more comparable alternatives, processes, products, qualifications, sets of data, systems, or the like. In accounting, for example, changes in a financial statements items over several accounting periods may be presented together to detect the emerging trends in the companys operations and results. 4. 1 Comparisons Starbuck Coffee and G loria 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 are helps the organization to keep their sales up, to create social and structural bonds and build troth to delight the customers. The top strategies to retain customers are market to the existing clients, connect with the customers, want for feedback and input, share resources, refund customers for staying, be consistent in the approach and interactions, and follow through on the commitments, and keep learning. It is well put down that optimizing customer loyalty has a direct and positive impact on a companys financial performance and strategy.Increasing customer loyalty through modify customer experiences can be driven by the insight gained from a broad customer feedback program. Below are comparisons table for both comp any. 4. 2 Comparisons Starbuck Coffee and Gloria Jeans Coffee in term of Services Recovery Strategies Service recovery has drawn the attention of enquiryers 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 ill is the nature of service products themselves, which increase the possibilities of errors, or service failures, and therefore the need for recovery. Most scholars point out that the difference between tangible products and intangible operate has increase customer awareness of the possibility of service failures eitherfrom the operational perspective or from the customers viewpoint and its difficult for marketers to understand and to meet customerexpectations. Besides, service variability has been identified as ongoing problem both for marketing and quality managers.Below is the table of both companies for services recover y 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. According to the analysis of the shops situations concerning the marketing mix and positioning, a clear picture of the shops competitive advantages can be achieved. loosely 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 operate 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 Member Card which can help to build more changeless and loyal customer relationship. 5. 2 pass for Starbucks Coffee Based on the analysis, there are some spots should be taken into considerations to make further mitigatements for the Starbucks coffee shop.First one is based on the customers expectation survey. Some customers suggest that Starbucks should offer more comfortable armchairs and coaches, canopy and replace the outdoor appall with the wooden floor as same as the indoor decoration. In service industry, customers often look for tangible clues, viz. physical evidence which can govern 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 sweet to customers, especially when they want to have a relaxed time in this Starbucks shop tho for a cup of coffee. Besides that, many customers were surprised when they heard that Starbucks also offer a reward card called Starbucks Car d 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 reward programs can offer existing 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 look that existing customers are more profitable while winning new customers are costly. Thirdly, should pay more attention to develop its customers about Starbucks coffee culture. Starbucks does well in brand building.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. T his is the Starbucks positioning, the selling point. However, according to the survey results, no one knows it. The shop should realize that speciality 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 singularity Gloria Jeans should opt for better 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 by all odds have a variety of brew that they could choose from, besides, the special beans could even provide a better taste of coffee for different types of consumers. Using low fat milk, creamer and artificial sweetener could benefit those whom are worried about fleshiness and have obesity problem.This specially caters to them as it is less fattening and less sweet, thus it could comply with World Health Organizations order of business of providing healthier food and beverages. Product specialism Gloria Jeans should provide food to customers instead of only cakes and pies. This is because walk in customers would find it convenient to dine in instead of just buying coffee from the outlet. Menu such as breakfast sets and set eat should be provided besides serving light food such as sandwiches and cakes. elevation standards Most walk in customers look for a cozy and warm 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 handicap facilities. This will improve consumers perception towards the outlet. Modern equipment such as The Clover, which is a specialized brewing machine that allows a barista to quickly deliver one freshl y brewed cup of coffee at a time, would be useful. It takes quite some time for a freshly brewed cup of coffee to be served to customers with traditional equipments, thus it top executive lose some customers whom could not wait.Many people patronize coffee outlet is because it is a neutral place for people to talk about business and do their homework and assignment. This means that internet connection is very useful 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 patronize the outlets for usage of Wi-Fi, which will indirectly linked to purchasing of coffee in the outlet. Increase 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 allowance a nd company trips might boost up their morale, which might indirectly increase their productivity level and return the turnover rate. Widen the target market Gloria Jeans 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 railroad siding 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 advertising and promotions. They should advertise in local newspaper 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 o f coffee.This will gain attention of the fans of the celebrity and also people in public. Local celebrities such as Nicole Kidman is prove to be useful as a marketing strategy in the sense of celebrity 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 funding 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 inhalation 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 beneficial to them and make them feel contented and treasured. They could provide them with discounts coupons and free refills for t hem 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 franchisees 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 adequate power research on the background of the franchisee before choosing them. This is because they polish the brand image of the company when they are operating under Gloria Jeanss name. Choosing the proficient Partner From the problem regarding funding leniency Ministry against anti-gay society, Gloria Jeans should discontinue the funding of it in order not to interfere with serious issues that could scupper the business.Instead, they should fund beneficial organizations such as Red Crescent Society and World Wildlife Fund. This will also help promote Gloria Jean s 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. starbucks. 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