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Coffee and Tea Markets
Transcript of Coffee and Tea Markets
Who makes up the target market of U.S. coffee and tea drinkers?
How successful are the marketing mixes of competitors?
What are the strengths, weaknesses, opportunities, and threats for our client in the United States?
Sophie Leary and Ally Caldwell
Is the market growing or shrinking?
What factors affect this market?
The market is growing because...
In the past, consumers did not spend money in coffee shops because they did like the taste of coffee or tea. Now, because of the vast variety of flavors, consumers can find a specialty drink they enjoy.
New health trends are emerging, promoting coffee and tea.
Cockerham, W. (2001, December 29). The Most Italian State in the Nation? Guess. Retrieved September 29, 2014, from http://www.nytimes.com/2001/12/30/nyregion/the-most-italian-state-in-the-nation-guess.html
Coffee & Tea Market Reports from Packaged Facts. (2014, May 2). Retrieved September 29, 2014, from http://www.packagedfacts.com/coffee-tea -market-c471/
Commodities: Latest Coffee Price & Chart. (2014, March 12). Retrieved September 26, 2014, from http://www.nasdaq.com/markets/coffee.aspx
S W O T Analysis
Competitors such as McDonalds, Starbucks, and Dunkin Donuts are successful because...
They offer unique products.
They have reasonable prices.
They all have advertisements to promote the company.
Their chains are located around the country and internationally to reach many consumers.
Young adults, from the ages of 18-24, enjoy studying and catching up with friends at coffee houses.
Adults, the age of 25-40, enjoy buying drinks on the go or sitting down to relax after work.
People living in the North-Eastern area because it includes states such as New York and Connecticut, which have the highest percentage of Italian decent in the nation.
• We have concluded that the Italian coffee chain should branch into the American coffee market. If established in an area with a high coffee and tea consumption rate, as well as a high percent of Italian decent, such as the north east, consumers are likely to be intrigued.
offer exotic teas and specialty coffees
cafes with upscale design
unknown in the United States
customers are loyal to their local businesses
expand their business by opening cafes around the country
become partners with successful companies in the United States
because of the low economy, people only have money to spend on necessities and cannot afford the prices of specialty drinks in coffee shops
existing companies pose a threat to a new Italian company
changes in import laws
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The economy affects the market because of the cost to produce and sell coffee.
Oversea imports and trade affect the market because coffee beans are globally imported.