QUALMANK91

September26,2016

Group5Members:
Campomanes,JAnneBeatrixO.
Cay,ChelsieMaureenM.
Francisco,KarenNicoleD.
Parreno,AudreyA.

STRATEGICGROUPMAPPING:COFFEE

1. Select two dimensions that you think are most important for the product

coffee. Identify
coffee firms you are familiar with and determine which of them are direct competitors
andwhicharent.Mapthisoutusingyourtwodimensions.

The group, upon discussing all thirteen dimensions of quality in the context of
coffee shops, has decided thetwomostimportantqualitydimensionsforcoffeeshopsare
specialization and price policy. Firstly, specialization focuses on the product and/or
service line and the target market. This is relevant to the coffee shop industry because
whatdeterminesacoffeeshopssuccess,amongothers,istheirproductlineandhowwell
the line is served to their chosen customer segment. WhileStarbucks,SeattlesBest,and
the like are offering the usual coffee morning experience, local thirdwave coffee shops
such as YardstickandLocalEdition showcasecoffeeasanartisanalbeverageandelevate
thepeoplesloveforcoffeesbeautyandcuisine.Boththesetypesofcoffeeshopsrequire
their employees to undergo several training programs and workshops, ensuring that the
products produced will be of high quality. There is a rise of coffee shops competing
against big companies like Starbucks. A big portion of it comes fromentrepreneurswho
starttheirownspecialtycoffeeshops.

Price policy or ones price position in the market is another importantdimension

when it comes to coffee shops. For more known coffee shops such as Starbucks, Bos
Coffee, Seattles Best and so on, their coffees are moreonthepriciersidehowever,they
have been in the industry longer and have already established their target market that
their customers seem to always come back despite the price point. Forthirdwavecoffee
shops like Local Edition, Yardstick, Tobys Estate, etc., coffees are priced more
expensively than those stated earlier. The price reflects not just the quality but also the
work andeffort putintomakingit.Thesecoffeeshopsareidealforcoffeeenthusiastsand
thosewhoappreciategoodcoffeeandareactuallywillingtospendonit.These customers
have high expectations and know how they want their coffee made compared to the

majority of consumers who only are only looking for any kind of coffee as long as it
keepsthemawake.

The Strategic Group Map consists of eight coffee shops, which are directly and
indirectly competing. The map consists of two dimensions in which the group has
chosen, wherein the size of the companys logo also represents their market share in the
coffeeshopindustry.

Figure:StrategicGroupMapofSelectedCoffeeShops

2. Comparethequalityofproductsamongdirectandindirectcompetitors.

a. DirectCompetitors
StarbucksP130170
BosCoffeeP100150
CoffeeBeanandTeaLeafP130170
SeattlesBestP100170

Unlike the growing artisanal coffee shops, these companies have established
themselves in the country for a longer time and serve a bigger market. These big coffee

companies also have severalbranchesthatcanbefoundacrossthecountry.Theirplaceis

createdforthosewhowantsagoodcoffeeexperienceandhighqualityservice.

Since these coffee shops are more well known, their products are already loved
and perceived as of good quality by most. The quality of coffee amongst these coffee
shops differ from one anotherbutwehavetotakeintoconsiderationthattheyservemore
thanthatofthirdwavecoffeeshopssotheircoffeestendtobemorestandardized.

b. IndirectCompetitors
LocalEditionP105175
YardstickP120180
CommuneP90160
TobysEstateP120180

Manyoftheindirectcompetitorsarefocusingonnewnichemarkets,shiftingtheir
attention to younger and more highend consumers rather than the majority and the
typical Starbucks customer. Drinks from these coffee shops are more personalized,
enabling them to customizea drinkthathasnotexistedinanymenubefore.Theproducts
that come from them have many features that set it apart from more traditional and
generalized coffee shops. Each new coffee it in its own, completely new and unique
depending on how the customer wants it. They provide a completely different
experience.
Direct and more mainstream coffee shops products are more standardized,
although they also give their customers the opportunity to customize their orders, the
materials from these coffee shops are designed to be usable for a long time. This means
that one cannot guarantee the freshness of the ingredients used. Saadat Awan, owner of
Woodcat Coffee Bar in Los Angeles, compares thirdwave coffee shopsandmainstream
coffee shops to a specialty steak house serving grassfed beef to a large restaurant chain
that serves hundreds of steaks. The ingredients used in thirdwavecoffeeshopsaremore
carefullyselected,givingthecustomersaguaranteeofauthenticityandquality.

Sources:
ByMarkTaylor|SmallBusiness.(n.d.).CafeCulture:Theriseofthespecialtycoffeesmallbusiness.Retrieved
September25,2016,from
https://www.aabacosmallbusiness.com/advisor/cafeculturetheriseofthespecialtycoffeesmallbusiness2114581
78.html