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Factors Influencing Coffee Market
Summary
Coffee is the most basic beverage for consumption in countries like America and Europe. Many behaviors have been adapted and are now rotating around coffee. People in white and blue-collar jobs pass by coffee shops in the morning and grab their specialty. During breaks and free time, students go to coffee shops to grab a cup while studying and doing their homework. The majority of coffee drinkers prefer their coffee in the morning. The two leading coffee supply companies in America are Starbucks and Donuts. This study aims to establish how coffee consumption is influenced by the underlying culture, considering the health benefits.
Document A discusses coffee culture and how these practices affect the way of life of the drinkers. Document B analyzes the relationship between coffee and health. Document C concerns the relationship between the two competitive coffee companies, Starbucks and Dunkin Donuts. It examines their business strategies, branding and target audience (Tucker 7). They are the top competitive companies, with robust business strategies, branding and marketing strategies.
Coffee outlets could be coffee shops, coffee houses, or drive-thru. Coffee shops merely serve coffee in a traditional dining experience. It could be served alongside snacks such as sandwiches. Coffee houses offer a more luxurious way of serving coffee (Tucker 16). People do not go there just for coffee but to hang out for a while. Many of them have free internet and screens to watch programs such as football to improve the customers experience. A drive-thru is where customers can grab a quick coffee and proceed with their day. They usually have no place for the customer to sit. Many serve through a kiosk window, a separate coffee counter in buildings with offices or even food vans. They serve snacks such as doughnuts and bagels (Tucker 2). It explains why there are more coffee houses in France than in Ireland.
Coffee Supply
The supply of coffee is based on the customers preference in a particular geographical location. The customers could be students who want to spend their break time and free time taking coffee and doing assignments. The two leading coffee supply companies in America, Starbucks and Dunkin Donuts, have different supply chains to accord the customers their satisfaction (Tucker 6). Dunkin Donuts has beaten Starbucks in customer satisfaction due to its delivery of coffee on its premises (Tucker 6). It is mainly because of the price differentiation and the quality of their delivery.
These two competing companies have employed strategic promotion tactics to ensure they are the best coffee sellers in America. As it appears, Dunkin Doughnuts coffee is cheaper than Starbucks (Tucked 32). It is primarily because of the difference in the cost of goods (Tucker 18). Dunkin Donuts uses that as a competitive advantage to win over Starbucks. However, people still buy Starbucks coffee regardless of the high price. Starbucks looks to create an environment that will leave their customers satisfied that they would love to come again. First, the ideal target audience of Starbucks is of the middle age, according to the Dunkin Donuts vs Starbucks analysis paper. It is from university students to the working class who would need an environment suitable for that (Tucker 18). That is why Starbucks has free Wi-Fi access for customers and beautiful décor for the young generation.
Document A, about the coffee culture, says that in many cases, university students hang out there during their breaks to have coffee as they do their assignments. As B states, coffee relaxes the mind and increases the students focusing ability on a subject. It depends on the subjects preference to choose Starbucks or Dunkin Donuts. It means that the two companies adapt according to the cultures of their target customers. It is the duty of either of the two companies to provide a mutual and neutral ground suitable for attracting their target customers.
The branding of Starbucks and Dunkin Donuts coffee is specific to attract the customers attention. First, Starbucks added some products to go along with the coffee. Small dishes and sandwiches are available, serving as contemporary coffee products. It attracts customers with diverse interests and preferences for their meals. They have also diversified coffee flavors and availed them to the public (Tucker 20). Starbucks has a more extensive menu, which gives room for customer personalization. The customers name is written on their coffee cup (Tucker 21). They are allowed to meet, mingle, work, study and even listen to music when taking their coffee. According to Document A, they provide a higher customer experience at a slightly higher price.
However, there are very significant differences between these two businesses. Every Dunkin Donuts is located as a franchise, in and out of America. Starbucks is disproportionally located outside America. Dunkin Donuts imitates a fast-food restaurant, while Starbucks is an independent coffee shop (Tucker 22). It markets itself as a beverage company offering more expensive drinks than Dunkin Donuts. However, people love Starbucks despite the price due to the experience they get from it. It is more of a destination rather than a business joint. They prioritize customer service more than price differentiation. Starbucks accommodates people from all cultures and coffee preferences (Tucker 22). For instance, someone can decide to grab and go or might choose to enjoy the coffee at the premises.
Health implications of coffee
Coffee has slightly adverse effects on the human body, as stated in the analysis of Coffee and Health. However, it is one of the most used beverages in America and Europe, as discussed in Coffee Culture. People have different preferences regarding coffee, whether hot or iced. It could be black coffee, espresso, Americano, and all other flavors humans can make out of it. Drinking coffee has considerable value in the human body; for instance, it reduces the risk of cardiovascular disease by 15% (Tucker 24). However, coffee contains caffeine, which is addictive, and for someone to stop completely, they will experience headaches and withdrawal syndromes. It is like teaching the body to get used to something and then stopping eventually. Even though coffee consumers are worldwide, it is wise to use it responsibly.
Many people drink coffee to help them stay alert and concentrate more. Humans adopt undesirable habits to help them lose sleep and increase their working hours (Tucker 33). However much that is a good thing, coffee is associated with insomniac symptoms and daytime sleepiness. Extra caffeine consumption is associated with helping the victim lose sleep for long hours. It helps them stay awake, alert and focused. Biology says caffeine slows the body clocks timing (Tucker 34). Continuous intake of coffee leads to worsening of pre-existing insomniac symptoms, sleeplessness, anxiety and poorer sleep quality.
Starbucks is said to have the most robust coffee with a significantly large amount of harmless caffeine. The customers say Starbucks coffee has a more robust flavor than Dunkin Donuts. Others say it is like a shot of energy in a cup (Tucker 34). That is why Starbucks has the best coffee in America and beyond. Coffee can prevent diseases such as type 2 diabetes, liver diseases and mental health disorders such as anxiety and depression (Tucker 34). It protects the brain from Alzheimers and Parkinsons disease. However, people addicted to coffee are more likely to suffer withdrawal symptoms when they try to stop (Tucker 56). Coffee consumption in America and worldwide keeps increasing daily (Tucker 66).
Coffee Consumers
Coffee is universal in that it has many ways of consumption. The increase in the number of coffee consumers is the main contribution to the commonality of the drink. According to document C, coffee is consumed by every gender, religion, ethnic group and tribe. People from different demographics are capable of drinking coffee at any particular point in time. However, research says women drink more coffee than men in America (Tucker 62). 66% of women drink coffee compared to 62% of men (Tucker 62). A significant amount of coffee drinkers like their drinks homemade, especially black coffee.
Occasionally, the consumption of coffee varies in the profession. It is because some professions require long working hours and alertness, with little time to sleep. They include authors, IT personnel, journalists and editors and people in medicine (Tucker 62). In many cases, these people work with deadlines and cannot sleep before they submit their work. Students in schools also consume large amounts of coffee. It happens most especially when reading for exams or working on deadline projects. Taking coffee could be occasional or daily; for example, some prefer it for breakfast, in the evening, or during free time.
The amount and the quality of coffee consumed depend on the buyers income. 66% of coffee drinkers have an income above thirty thousand dollars (Tucker 22). Coffee consumption increases with an individuals increasing income (Tucker 22). The millennials are the majority of the age gap who consume coffee. The older, past age 60, are said to consume much coffee too. Coffee is barely consumed upcountry, which is very remote, and coffee technology has not yet gotten there. Companies have not expanded to those remote areas either. Evidently, according to A and C, it is clear that coffee consumption varies in different countries. Different countries have different coffee experiences. For example, the default coffee specialty in Italy is cafe Cappuccino. Most Americans prefer to grab and go, while in France and Italy, one has to sit and enjoy their coffee as they engage in conversations, smoke a cigarette or read a paper (Tucker 77). However, the European culture has rushed off on all other countries, including America. Whenever anyone is, they have to adapt to how people drink coffee in that particular geographic area.
A discussed how coffee affects culture, especially the target customers of a specific organization. Document B discussed the impacts of coffee on the health of consumers. As a result of organizations wanting to achieve absolute customer service privilege and care about the customers health, they have come up with decaffeinated coffee with minimum amounts of caffeine. It is safe when used in moderation by people in extraordinary situations such as pregnancy (Tucker 78). It is a choice for any coffee drinker to wants to drink decaffeinated coffee. Those trying to stop taking coffee might as well use decaffeinated coffee since it has little caffeine in their journey.
American coffee consumption has significantly increased. Coffee was once consumed to increase alertness, especially in the morning and late in the day. New types of coffee, like flavored and iced, were created as a result of the growing preferences for the drinks by consumers. Today, coffee consumption is a lifestyle that varies depending on each persons income (Tucker 62). Due to increased customers, many industries have been supported to supply coffee. More companies are now making coffee-related products, such as coffee machines and accouterments. Coffee has been considered a social beverage for a century. Various businesses have used advertisements to market their coffee and win over devoted customers. Coffee is examined as a commodity that brings people together, from the growers and pickers who tend the plantations in tropical countries to the intermediaries and processors to the consumers who never have to wonder how their coffee got into their hands. Coffee is now a global drink, assimilated by many cultures.
It is critical to remember that assessing the healthfulness of a cup of coffee requires considering that drinking coffee is a complex consumption behavior with preferences and preparation techniques influenced by culture and tradition. Understanding coffee consumption patterns, motivations, and perceptions of coffees health benefits is necessary to fully realize coffees potential to influence consumer food consumption, culture, and health. The suppliers goal is to investigate consumers perceptions and reasons for using and purchasing coffee.
Work Cited
Tucker, Catherine M. Coffee culture: Local experiences, global connections. Routledge, 2017.
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