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University/College: University of Arkansas System
Date: October 31, 2017
Words: 549
I want a sample


In 2010, the company was the fourth largest consumer foddering brand in the US and fifth in the world and each year its net profit shows consistent increases [1]. After the recession, Struck refocused its marketing awards the idea that it is the third place – between home and work. As opposed to fast, impersonal service, Struck works towards gaining loyal customers and further developing its niche and reputation. The company introduced My Struck Rewards to encourage customers to increase their visits and collect rewards for their loyalty [2]. Since the introduction of the simplified program, reported incremental sales increased and the number of rewards members continues to increase [1].

The reputation of the Struck brand continues to strengthen, and despite the rise in popularity of grab-and-go services, Struck Corporation has done well to market the idea of the “Struck experience” which fuels its sales. A downside to Struck’ reputation of high quality is its reputation of high prices. Many potential customers revert to cheaper alternatives simply because they are not willing to pay the high prices. This has been stressed even more after the economic recession of 2008. Struck relies heavily on the US markets, and after the recession, US citizens experienced an overall decrease in incomes and consumer incentives. Initially, Struck was hit hard, but with their redirection in marketing and service focuses, the company has seen much improvement [2].

But with the majorities of its stores still based in the US, another recession or continual decrease in employment and income rates poses its threats to the corporation. As a company that relies heavily on it sales of coffee, Struck is exposed to the heavy influence of the price of coffee itself. When the price of coffee goes up, the marginal profits of Struck decrease. When the price goes down, the marginal profits go up. Many factors affect the price of coffee and any large increases in price may cause Struck to increase their own prices in order to maintain profits. Unfortunately, this causes customers to look for alternatively cheap options that are offered by competitors like fast food restaurants, other coffee chains, and local cafes.

Mainly the fast food restaurants offer the cheapest options. Customers switch to these lower quality, but cheaper options as they may decide that they no longer are willing to pay the price of Struck coffee. However, Struck Corporation is utilizing their Castle’s Best Coffee to dive into the fast foods markets without diluting the brand of Struck [1]. By using a name not associated with the Struck stores, Places like McDonald’s have begun to highlight their cheap coffee options which attract customers from Struck. Now Struck is able to counter these fast food competitors by offering a coffee of their own in places like Subway and Burger King.

By expanding Castle’s Best Coffee, Struck Corporation is successfully expanding their stake in coffee markets without diminishing the highly regarded reputation of their Struck stores. Overall, Struck is a successful business. Its strengths and opportune marketing strategies compensates for the risky nature of its focal product. Even now Struck is planning to introduce its name to Asian markets, specifically China which has yet to develop a market for coffee drinkers.

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