Case Study: Cappuccino Wars

1)The umber culture of the United States has been taken up by a storm in the United Kingdome as wellspring. The gourmet burnt umber consumption in the regions increased and the presence of four major bondage of hot chocolate berry in the country stomach en abled easy access to all type of umber required or desired by the consumers. The intellectual for the increase and the popularity of the hot chocolate bean bars in the region is mostly relate to the lifestyle and the environment of the region. The United Kingdom is essentially a actually cold region where one throw out feel cool spend chills even in the summer months of June and July. As a result, deep brown as a beverage would spend a penny been very popular in the region. however the different carbons of varieties made available to the consumers piqued their interest as well as their taste buds.Previously the region was used to the unappealing black and grey burnt umber which did not progress in m whatsoever variations. unless with the use of Brazilian umber berry and Italian coffee qualification machines, the gourmet coffee bards were able to provide the clients with a diverse merchandise offering which was delicious and mesmeric at the uniform judgment of conviction. The consumer as a result, is also willing to gift a naughty monetary value for these coffees. The other dodging that was adopted by the coffee bars was to introduce a relaxing atmosphere and atmosphere at their breaks. This attracted the customers to come in the shop, buy their beverages and spend some duration socializing or simply catching up on rate of f minor events or their work.The other reason as to why coffee shops train become so popular in the region of UK is because of the convenience they offer. The spacious spread of the shops has made its possible for the competing as well as equivalent retailer owned shops to be laid within a hundred yards of each other. This gives the customer the conven ience and the choice of get a coffee when ever they want and wherever they want. excursus from this the various flavours offered by the shops wear provided the customers with an array of choices and customisation. The customers love making choices and this makes the set about of acquire and consuming a complex and flavourful brew of coffee very attractive for the customers.2)If I were to be visiting a coffee bar for the commencement time there would be multiple factors influencing my decision pertaining to the get of coffee and the parallel consumption of coffee from the specific shop. These factors would include my mood, my attitude towards the shop, the brand parent of the shops, the associations with the image of the shop or the brand, the attitude of my peers with the shop, the reviews that are available for the products and service offered by the shop.Aside from this the factors would also include my personal opinion of the shop, the kind of coffee I want and the vario us forms of coffees that are offered by the shop. The traffic glide slope in and going out of the shop as well as the standard atmosphere would also be a important facto of my decision making activity. Aside form this I would want the coffee to be red-blooded and prepared in a hygiene environment as a result cleanliness and hygiene would also play a crucial go in my decision of going to a certain shop for buying the coffee.However if I have already visited the shop and bought a coffee from there, therefore my decision making factors would slightly change. By now I would have formed an opinion about the shop and would make my decision tally to this. The opinion would be made up of my experience with the staff and the service, the experience of consuming the coffee as well my personal taste of the ambiance in the shop. The satisfaction that I derived form the coffee however would be the most important decision for me in the case of repeat purchase behaviour.My decision to buy co ffee can be a high complicatement decision as well as a humbled involvement decision. Initially the decision to go to a shop for the first time would be a high involvement decision as I would be checking the place out and asking for reviews form people. However once I have been there the decision for going to the same shop would become a low involvement decision.3)The leading coffee shops in the UK including Starbucks, Costa Coffee, Caf Nero and Coffee Republic have all had been change large amounts of coffee to the customers, however they have been unable to make any substantial amounts of clams. The main reason for this is that they are currently because of their expansion strategy and the product offering.They are providing the customers with a highly diverse kind of product however the price they are charging is high and premium price base however it is not enough for them to cover the cost of the customizations and the high grapheme raw materials required in the manufactu ring and processing of these coffees. Moreover the intense controversy in the industry has made them restrict the level to which they can step-down their prices as the other company in the industry also follows the price decrease making the effect the sae. However the margin available to the companies is getting reducesThe other reason is that the expansion strategy especially by Starbucks is eating up into the target market scope and share of the branches of the various coffee bars. This has reduced the traffic coming in per bar, while the number of coffee bars have been increasing. This decrease in the traffic combined with the low margins has made the profitability of these bars almost non existent.The option available to the coffee and related beverage retailers equal Starbucks and other serious competitors is to improve the cleverness of their operations. The business will have to perform business process reengineering whereby the have to find out the various inefficiencie s that exist in their business processes. special(a) attention has to be given to the cost inefficiencies present.These need to be set and improved on or eliminated. By getting more expeditious in their operations the stores will be able to report profits for their operations. One of the main strategies that the companies might have to take up would be to close down its highly inefficient and loss bearing stores. Aside from this those stores which are not present at strategic location should be eliminated as well in order to cut down the cost of operations.4)The coffee bars are usually located in the centres of the towns and the streets as this is where most of the traffic tends to pass from. The chance of getting a customer in these regions is very high. However in order to provide the coffee to places where the people actually require them would involve taking the shop to the consumers.This would involve setting up a coffee kiosk in the instill during lunch times or in the off ices during lunch break. Aside from this the shops can be placed honorable the vicinity of large schools, colleges and office building. Placing the shop in such strategic locations will allow the customers to conveniently come to the shop themselves. Aside form this it is also possible to open a coffee bar inside a college campus as well. This is because the study cramming sessions conducted by the students require caffeine laden beverages and they would appreciate the presence of a coffee bar in such convenient vicinity.Other locations where the presence of a coffee shop can be profitable for business as well as satisfactory for the customers would be near political and government offices, near army training camps as well as in hospitals. The presence of such coffee shops would be much appreciated in hospitals as people tend to have a lack of choice for beverages like coffee and snacks in the hospital. The coffee shops can also be located at prominent regional, national as well as outside(a) tourism spots and hotels. This would provide the tourists as well as the running(a) staff to the coffee culture providing them will high quality coffee products at their convenience.ReferenceThorburn, S., (2006), Analyst Comment, Marketing, p35-35, retrieved November 10, 2007