SG5 - Coffee Business Fix - Edit Dikit
SG5 - Coffee Business Fix - Edit Dikit
SG5 - Coffee Business Fix - Edit Dikit
Coffee Business
Syndicate Group 5
● Since its founding days in the early 1990s, Starbucks has strived to build its brand
identity by offering customers a relaxing and enjoyable experience. From the very
beginning, the experiential aspect of the brand has been consistently and effectively
implemented in all its stores across the world. In addition, Starbucks has also built its
brand on things that tend to be out of the box, by consistently defying conventional
wisdom.
● Kopi Kenangan was founded by Edward Tirtanata, James Prananto and Cynthia
Chaerunnisa in 2017. The first shop was in the Kuningan area. On the first day of the
opening of Kopi Kenangan, the shop managed to sell only 700 cups of coffee. Two
years later, Kopi Kenangan has opened more than 230 shops throughout Indonesia.
● Kopi Kenangan is considered successful in filling the price gap between expensive
coffee of international retailer standards and packaged instant coffee served in
coffee shops. The prestige of the Kopi Kenangan brand is getting stronger along with
the development of the Kopi Kenangan business, especially since it received an
injection of funds from several venture capitalists, such as Sequoia India, Arrive,
Serena Ventures and Alpha JWC Ventures. Kopi Kenangan plans to expand its market
overseas by introducing the distinctive taste of Indonesian coffee.
Kapal Api
● Kapal Api coffee is produced by PT. Santos Jaya Abadi which is a multinational
company that produces a variety of packaged coffee and packaged drinks. Head
office of PT. Santos Jaya Abadi is located in Panjang, Sidoarjo.
● Since it started operating, PT. Santos Jaya Abadi has innovated and produced a
variety of packaged coffee with guaranteed quality and has a distinctive taste
● Kapal Api coffee has existed since the Dutch colonial era came to Indonesia.
Previously, the Kapal Api coffee company was founded, in 1927, three brothers
namely Go Soe Loet, Go Bi Tjong and Go Soe Bin established a coffee frying factory
in the Customs area, Surabaya and produced a superior product called Kopi Bubuk
Hap Hoo Tjan. Then, the coffee products are sold around the village and around the
Port of Tanjung Perak.
1. What are the similarities and differences among the three
companies (Starbuck, Kopi Kapal Api, and Kopi Kenangan)?
Similiarities: coffee product, focus on quality, advanced equipment, focus on
technology
Differences:
Differences Starbucks Kopi Kenangan Kapal Api
Market segment Middle-up Middle Low
Target Socialite Office employees All levels of people
Potitioning Experience & life style Quality with affordable price Authentic Indonesian coffee
Demographic Urban Urban All regions (urban & rural)
Concept Grab and stay Grab and go Everywhere, everytime
Price High Medium Cheaper by dozens
Distribution channel Coffee shop Coffee shop Retailer
Product Ready to drink Ready to drink Coffee powder
Promotion Social media & word of mouth Social media & word of mouth ATL & BTL
Co-creation Yes No Yes
2. How do you explain that the coffee business still attract new
entrance (such as the recent entry by Kopi Kenangan) in the seemingly
a lot of competition?
Leader’s Vision: Leader vision: want to bring Leader vision: wants to create
- wants to create a unique coffee with a branded product coffee with authentic
customer experience over around the world Indonesian flavors
the world Strategic leaders level: 4 Strategic leaders level: 5
- To create a third place Strategic management Strategic management
between home and work planning: top down planning: top down
where people would want
to visit, ideally daily and
enjoy a sofisticated cup of
coffee
Strategic leaders level: 5
Strategic management
planning: top down combine
with bottom up emergence
strategy
5. How did Starbucks create its uniqueness in the first
place? Why was this uniqueness so successful?
In trying to keep up with its explosive growth in both stores and diverse product offerings, Starbucks began to
forget its core competency. It lost the appeal that made it special and its unique culture became diluted.
Strategic innitiatives :rolled out new customer service guidelines: Baristas would no longer make multiple
drinks at the same time, but, rather, concentrate on no more than two drinks at a time, starting a second one
while finishing the first. Schultz also focused on readjusting store managers’ goals.
goal to increase store traffic beyond the regular morning hours, when customers typically visited for their daily
shots of caffeine. Schultz started by adding baked goods, sandwiches, and other small food items to the menu.
To invite an even later crowd, he then introduced fresh vegetable plates, flatbread pizza, cheese plates, and
desserts. Eventually, he added alcoholic beverages such as wine and beer (to be served after 4 p.m. only) as part
of Starbucks’ “Evenings” program.
introducing new luxury items, catering to the wealthier customers within its existing customer base.
7. What is your assessment of Howard Schultz as a strategic
leader? Where on the Level-5 pyramid of strategic leadership
(see Exhibit 2.2) would you place Schultz? Why? Explain.
*) https://www.verywellmind.com/leadership-styles-2795312
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