Executive Summary
Every coffee or beverage lover wants to have their coffee hot in a cup or packaging that does not leak heat and perhaps cause accidents. After careful consideration, we assessed how we could find ourselves in the middle of the food and beverage industry by contributing positively to the customer experience. We, therefore, researched and put together resources to develop a unique product: well-sealed, heat-proof, environmentally sustainable, and innovatively designed packaging cups. With this unique product idea, we hope to bring out a long-term solution to the problem of single-use container waste in the beverage industry. As a small organization sensitive to matters of climate change and the preservation of our environment, we will use our cutting-edge packaging technology to contribute to the image of your company; that is, you will set an example for other companies by setting yourself apart as an ecosystem-friendly company. This proposal will include a statement of the problem, proposed solution, qualifications, timetable and costs, and benefit statement, where each section will provide related details.
Introduction
The Catton Company began as a small innovative group, where all members’ ideas were put together to develop a viable idea. After learning about hot beverage accident reports and the rise in environmental injustices that impact the global climate, we settled on making heat-proof cups with various advantages to the customer and the organization. Subsequently, the Catton Company was founded on the principle of lessening the negative effects of the beverage industry on the environment without sacrificing quality, convenience or affordability.
Our company is grateful for the chance to submit this updated business proposal that intends to meet the market’s demand for innovative and eco-friendly beverage packaging (Moustafa et al., 2019). As stated earlier, Catton Company prides itself on its commitment to environmental sustainability and has the intention to disrupt the beverage industry by providing cheap and environmentally friendly cardboard beverage cups.
As loyal customers of Starbucks, we appreciate the kind of service you provide to consumers and seek to be part of this positive customer experience. With our idea of supplying environmentally sustainable options for beverage packaging, we are confident that it will have a good social and environmental impact which is in line with your organization’s stated objectives. Besides, we are proud of our standing as a relatively new company providing innovative and unique options at a rather fair price across the industry.
Statement of the Problem
Starbucks has been significantly involving itself in environmental sustainability by slowly moving towards the use of sustainable packaging. However, reports from the packaging drive as of April 2023 show that only 49% of Starbucks’ packaging, when assessed by weight, was reusable, recyclable or compostable. For a country already aware of the looming consequences of climate change (some significant changes are already happening), it is everyone’s responsibility, from single businesses to chains and multinationals, to work together to seek solutions. This is the most recent requirement in exercising corporate responsibility.
Starbucks faces the challenge of managing the environmental impact of single-use beverage containers, just like many other beverage companies (Graulich et al., 2021). The main cause of pollution in the beverage industry is the use of plastic cups, which do not decompose. When the one-time-use containers are disposed of, they often end up in landfills, where they take hundreds of years to decompose, contributing to environmental degradation. Furthermore, the production of these containers requires the extraction of natural resources such as petroleum and trees, which contributes to resource depletion and habitat destruction. Additionally, the manufacturing and disposal processes generate greenhouse gas emissions hence causing further destruction of the environment (Miller et al., 2021).
There have been reports of beverage spills in various beverage businesses, where most of the beverages are mostly hot and can cause scalding. When such happens, customers think of remedies like suing for negligence. Although these businesses are liable for hot beverage spills that cause injuries, the customer is also held liable for the accident. In such cases, consumers feel that the businesses are not doing enough to ensure the safe consumption of beverages like coffee. Even labels indicating that the contents inside the cup are hot and should be handled with care sometimes prove ineffective because not all customers take the time to look at the cups.
Thus, given the explanations above, that can be described as insensitivity towards the environment, and hot beverage-related accidents can be avoided when effective and relevant measures are taken.
Proposed Solution
The solution to environmental and consumer-related problems can be solved when your company takes actions that remedy both problems at once- heat-proof and environmentally sensitive packaging. Therefore, we recommend that Starbucks embrace a low-cost, eco-friendly beverage packaging solution that will indeed help the company alleviate its environmental pollution impacts. These solutions to the problems are discussed in detail as follows;
Environmental Impact
By adopting fully biodegradable and compostable materials for beverage packaging, Starbucks will significantly reduce its environmental pollution footprint. The materials our company uses in the making of the cups break down naturally over time, hence minimizing the amount of waste that ends up in landfills (Rhodes, 2018). At the same time, the materials used are recycled from cardboard to reduce further damage to the environment. As a result, this solution aligns with the principles of a circular economy where resources are reused or returned to the environment without causing harm.
Waste Reduction
Traditional single-use beverage containers, such as plastic cups, contribute to the global waste crisis (Watkins & Schweitzer, 2018). Not every human will be thinking of disposing of the cups properly. By transitioning to fully biodegradable and compostable packaging, Starbucks can actively contribute to waste reduction efforts because customers can dispose of the packaging in compost bins where it can break down naturally and become a valuable resource for soil enrichment. The compost bin is another idea, although we recommend having recycling bins for the cups to be brought back to the company for recycling.
Customer Demand and Satisfaction
Consumer preferences are shifting towards environmentally friendly options, and customers increasingly expect companies to demonstrate sustainability initiatives (Angus & Westbrook, 2019). By embracing this proposed solution, Starbucks can meet customer demands for more sustainable choices. Customers who are conscious of their environmental impact will appreciate the effort Starbucks puts into reducing waste and may be more likely to choose Starbucks over competitors that do not prioritize sustainability.
Qualifications
We have been in business for three years, but still, consider ourselves a new company. This is because we are working to have a wider customer base based on our position and authenticity to help us grow and become the best in the industry. Nonetheless, we have a proven track record of delivering sustainable packaging solutions to small beverage businesses that have not yet integrated sustainability into their business model. However, we are working towards our advocacy role to welcome them into the bandwagon of climate sensitivity as part of the corporate responsibility in the beverage industry.
We have no doubt that Catton Company is equipped to meet Starbucks’ needs because we are a reliable partner thanks to our extensive knowledge, best track history in the sector and growing recognition. We have helped our clients achieve substantial waste reduction targets over a short time and won awards for innovative products and the best start-up. We have testimonials from our clients, who we hope will move towards using our services fully as opposed to complementary options. We have also received testimonials from the customers who have used our packaging through our customer feedback program available on our company website.
Timetable and Costs
Considering we prefer selling as a carton, we will be first offering the cups for $10- $20 for each reusable and recyclable cup, depending on its size. Therefore, a box with 24 cups will cost $240- $480.
Our solution can be implemented swiftly, ensuring minimal disruption to Starbucks’ operations as well as resources. However, once we enter into a contract, we will strive to supply your company with our product on a monthly basis and variably depending on your business’s demand. Otherwise, we have carefully evaluated the costs associated with our sustainable packaging solution, which has ensured the prices are competitive and aligned with your packaging budget (Nagle & Muller, 2018).
Benefit Statement
As a growing company, we look forward to a win-win situation by entering into this business relationship, i.e., by committing to our sustainable beverage packaging solution, Starbucks will enjoy a multitude of benefits ranging from significantly reducing the environmental impact of its operations, which will demonstrate a commitment to sustainability and strengthening brand image to protecting consumers from spillage accidents (González Alonso, 2022). Our win will be having a big company by our side, which will help us spread a message of sustainability through our solution, that is, providing cost savings in waste management and disposal, thereby contributing to improved operational efficiency and profitability.
Conclusion
Starbucks’s change in repackaging can help other brands to evolve and join the better option. Every company has goals to achieve with regard to waste management and reduction of pollution. Due to the climate change effects, every progress made is significant to the country and the whole world. In the same way, your company can also join the sustainable community by moving towards using environmentally tolerable materials, which in that matter, can be achieved by doing business with us.
In summary, our proposal has presented a comprehensive solution to address Starbucks’ need for sustainable beverage packaging. We believe that by partnering with Catton Company, your organization will become the industry leader in environmental stewardship hence satisfying the growing consumer demand for sustainable choices. The Catton Company is confident that its solution will deliver tangible benefits. Our organization is more prepared to engage your company and looks forward to answering any questions or concerns you may have during our upcoming communication.
References
Angus, A., & Westbrook, G. (2019). Top 10 global consumer trends. Euromonitor International: London, UK.
González Alonso, R. (2022). Sustainability, Brand Equity and Brand Benefits: Three fundamental concepts in Brand Management. An Analysis of The Nestlé Brand.
Graulich, K., Köhler, A., Löw, C., Sutter, J., Watson, D., Mehlhart, G., … & Lippert Tange, I. (2021). Impact of COVID-19 on single-use plastics and the environment in Europe. European Environment Agency: Boeretang, Belgium, 22.
Miller, S. A., Habert, G., Myers, R. J., & Harvey, J. T. (2021). Achieving net zero greenhouse gas emissions in the cement industry via value chain mitigation strategies. One Earth, 4(10), 1398-1411.
Moustafa, H., Youssef, A. M., Darwish, N. A., & Abou-Kandil, A. I. (2019). Eco-friendly polymer composites for green packaging: Future vision and challenges. Composites Part B: Engineering, 172, 16-25.
Nagle, T. T., & Muller, G. (2018). The strategy and tactics of pricing. Routledge.
Rhodes, C. J. (2018). Plastic pollution and potential solutions. Science Progress, 101(3), 207-260.
Watkins, E., & Schweitzer, J. P. (2018). Moving towards a circular economy for plastics in the EU by 2030. Institute for European Environmental Policy.
Report Analysis
Despite the salutation as friends and colleagues, the Tempe Tourism annual report’s structure, the following tone, and content help in concluding that it is a formal report. Besides, the language used within the report is professional and objective to complement the structured format with clear sections of a formal report.
The key information present in the Tempe Tourism report includes strategies and results and revenues and expenses. These are significant areas of business as they show what strategies were employed in collaboration with resources to assess the results.
The industry area as the target audience is involved with hospitality and tourism businesses within Tempe. On the other hand, the target audience involves personnel and organizations external to the Tempe Tourism Office. This is because the authors have given an overview of how the businesses are doing, which shows that stakeholders like hotels, event planners, and local businesses involved in the growth of tourism in Tempe are being addressed.
The level of expertise of the audience can be placed at the managerial level. The report addresses people who own and manage businesses within the location. Again, they are not new in the businesses as the authors; Brian McCartin and Margaret Dunn, recognize that these stakeholders did well in the previous year and wish them to continue the same way.
The target audience is interested in destination marketing through various marketing activities, visitor experience, and tourism development as part of the results.
Based on the information above, the report authors presented the information clearly by following a logical structure and providing relevant and concise data analysis as the report progressed. Even the section breakdown contributed to the clarity of the information. I most especially liked the detailed analysis, from visitor spending and hotel occupancy rates to economic impact. Besides, the quantitative and qualitative inclusivity make the report authentic and reliable for reviewing and using as evidence. However, I recommend comparison and benchmarking for the report, which can be included in the conclusion to inform us what we can take away from the report while comparing the region with another.
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