Wednesday, August 28, 2019
Market Research For (Verismo Machine) by Starbucks Essay
Market Research For (Verismo Machine) by Starbucks - Essay Example The company introduced Verismo with the intention of becoming a market leader even in single serve coffee making segment (Barth, 2012). Verismo machine is a single serve coffee maker which makes coffee and espresso. As a pod is dropped into the machine, it comes out as coffee or espresso, which contains the signature taste and aroma of Starbucks coffee (Starbucks Corporation, 2012). The machine is available in different model which ranges from Ã £149 to Ã £349. The model ranges from basic to high-end ones. The pods of powdered milk and coffee are also sold by Starbucks, which is used by the customers to produce excellent coffee at lesser cost then the store (Money Watch 2012). The biggest competitor of Verismo in the single serve coffee maker segment is Nespresso, which was launched by Nescafe, Nestle. VerismoÃ¢â¬â¢s first advantage is that bears the name of Starbucks, which is a market leader in coffee making. Starbucks is claiming that Verismo offers the same taste and aroma as coffee is served in its stores. Customers pay higher price for a cup of coffee in Starbucks because of their quality, and if they are getting it through a machine which is a onetime investment, customers would surely opt for it. Secondly, the product indeed has been highly appreciated by users because it do offer the quality which it promises and the cost per cup of coffee is also found to be less that having it at a Starbucks store (Clay, 2012). Verismo Machine by Starbucks was a huge hit in the market and the company sold over 150,000 machines in the first quarter of its launch. Howard Schultz in StarbucksÃ¢â¬â¢ first quarterÃ¢â¬â¢s conference said that they were planning to take Verismo to a multi-billion platform, which depicts that Verismo started really well in its initial year (Warman, 2013). Verismo is counted as a threat in the single serve coffee segment by the market leaders like Nespresso, or Green Mountain.