Comparison of products and service
These two companies play a vital role in the coffee industry in Saudi. This is because they offer similar products but the mode of presentation to the customers differs. This means that, despite the similarity in products and services offered by these key players in Saudi market, there are some differences which make them differ in customer satisfaction.
Both companies deal with serving customers with coffee brewed within their premises (Corte swearingen, 2010). In fact, they brew their coffee brands to meet customer expectations hence attaining the ability to retain customers. dr. CAFÉ COFFEE ensures that they offer the best services to their customers in order to encourage them to come back.
The management came up with a strategy of making the outlet accessible to potential customers. Unlike Starbucks, dr CAFÉ COFFEE has been able to open so many outlets in Saudi market hence getting a stable base to beat its challenger in the market.
This is advantageous because customers do not have to travel long distances to have a cup of their favorite brand. The services inside dr. CAFE COFFEE are better that those at the Starbucks hence becoming a preference to many customers.
The difference in service provision results from the fact that the service providers at dr. CAFÉ COFFEE are highly trained on customer service (Hulsmann and Pfeffermann, 2011). In addition, upon their employment they are taken through several trainings on customer service and public relations.
Starbucks is better in the provision of snacks to the customers hence creating a challenge for dr. CAFÉ COFFEE. dr. CAFÉ COFFEE has been specializing in coffee only hence getting credibility from customers all over the world. However, changes in the market have forced them to introduce snacks so that customers can have some accompaniment as they sip their favorite brands of coffee.
Both companies concentrate on the main brands of coffee which are preferred by most consumers. These include Blonde roast, medium roast, dark roast, and flavored. All coffee outlets serve these brands of coffee, but they differ depending on who has brewed them.
Other products sold by both companies include cookies and cakes. However, Starbucks has other dishes in its menu, and this makes it different from other coffee companies in Saudi market. Food has kept the company in a better position to challenge its competitors since many customers end up shifting to Starbucks. This happens as they look for places where they can take coffee and have lunch or dinner as they go about their businesses.
Starbucks provide nutritious foods hence giving them an advantage over dr. CAFE COFFEE because customers who are careful about their health prefer visiting Starbucks outlets (Hulsmann and Pfeffermann, 2011).
These special products have given the company a better chance to challenge the market leader in the market. This has been achieved because the company has been able to convince customers all over Saudi market that they can provide coffee brands alongside other dishes.
Strategies dr. CAFÉ COFFEE implements to remain the market leader
Dr. CAFÉ COFFEE has extremely hard working team of professionals who work to ensure that the company leads in the coffee industry in Saudi. Firstly, they have strategies to enable accessibility of their products by customers. This is achieved by opening outlets allover Saudi.
These outlets are set strategically to ensure that all customers get easy access to them without incurring extra expenses. In fact, they locate these outlets near offices and places where social gatherings are likely to occur.
The company also ensures that products are differentiated in a way such that everyone in the market can afford their favorite drinks. dr. CAFE COFFEE brews different coffee brands to ensure that different customer preferences are available in the market. This ensures that the company is reliable since customers get what they want all the time.
The company has a pricing strategy that has seen all its products remain affordable and attractive to customers. These prices have enabled the company to attract and maintain more customers than other players in the market. People normally opt for quality and affordable products as opposed to low quality products. dr. CAFÉ COFFEE has maintained high standards of cleanliness hence being a preference to customers.
The company maintains high hygiene profile because they understand the risks they may expose their customers to incase their products get contaminated.
This company has developed a system of involving customers in improving their products and service provision. Customers are required to fill in a questionnaire regarding the reception and service provided to them by company’s staff. This helps in improving customer relationships hence creating a hospitable reception for customers. In addition, they leave comments on the quality of coffee served (Lantos, 2010).
This helps the quality control people in knowing whether they are giving the right quality of coffee to customers. Customer complaints and suggestions are not taken for granted by the company; instead they use them to improve their overall performance.
All these strategies have helped the company in being the leader of others in the Saudi market. The company staff work hard to ensure that quality and customer satisfaction remains the key goals of the dr. CAFÉ COFFEE.
Strategies Starbucks implements to remain the market Challenger
This company struggles to ensure that it remains the key challenger of market leaders in the coffee industry. This is important in the market since every player has to ensure that they observe certain set standards in order to remain in the competitive market. In addition, the quality of service provided also is checked hence becoming advantageous to the customers.
Starbucks have come up with strategies to introduce new products alongside those provided by the competitors. For example, the fact that they sell food in their outlet makes them able to remain key challenger to the leaders in the market (Plunkett, 2007). This is because they pose a serious threat to leaders in the market as people in search for food may end up having their favorite drinks from their outlets.
The company has come up with advertising strategies to ensure that everyone in the market is aware of their products and services. This creates a tremendous challenge to leaders because the entire market is made aware of products provided besides what they normally offer in the industry.
For instance, they fact that Starbucks gives customers guides on nutrition is a crucial challenge and threat to leaders in the market. This is because they understand the importance of guiding people on what is suitable for their health among what one provides.
Starbucks have also come up with pricing strategies to make sure that their services and products compete properly with those from their competitors (Schlosser, 2012). This has helped the company to pose significant threats to the market leader because many customers prefer having their favorite drinks at Starbucks due to their reasonable prices and quality of coffee and other dishes.
References
Corte swearingen (2010). Creating a powerful marketing communication strategy. Web.
Hulsmann, M. & Pfeffermann, N. (2011). Strategies and Communications for Innovations: an Integrative Management View for Companies and Networks. Heidelberg: Springer.
Lantos, P. G. (2010). Consumer Behavior in Action: Real-Life Applications for Marketing Managers. New York: M. E. Sharpe.
Plunkett, J. W. (2007). Plunkett’s Food Industry Almanac 2007 (E-Book): Food Industry Market Research, Statistics, Trends and Leading Companies. New York: Plunkett Research, Ltd.
Schlosser, E. (2012). Fast Food Nation. Michigan: Houghton Mifflin Harcourt.