Gloria jeans coffee marketing assignment

Social and Environmental Issues The recent stir of the partnership with a charity organization, Mercy Ministry has caused sales to decline to Gloria Jeans. This is because the lesbians and gays community members in Australia are calling for a boycott of the coffee chain. Mercy Ministry is a non profit organization that supports Anti-Gay and Pro-Life. The community members felt threatened as they are indirectly funding the organization by purchasing Gloria Jeans product. Http://www. Essays. Com/essays/marketing/ Gloria-]mean-coffee. PH 2/21 Selection of Franchisee/Partners Gloria Jeans is very particular in selecting franchisees or partners.

The company stands by their values, which is “ Our partnerships are based on integrity and trust”. They only choose those that they prefer and they feel good with. This causes many opportunities that go into the drain for others that unsuccessfully applied. Gloria Jeans always keep to their vision, which is “ To be the most respected and loved coffee company in Australia” General Environment of the Coffee Industry It is important for an organization to investigate the market they plan to enter as well as the external environments to guarantee that they will be ready and prepared. It is a great tool for any size organization who would like to have a simple to use tool for understanding the external forces influencing their market and performance'(Canard 2008) which is ‘ crucial to ensure you remain ahead of the game and constantly aware of what is required of you and where you need to focus most attention. ‘ Technological Developments Technological developments in the coffee industry are focusing on three important aspects which is all year round harvesting, excellent quality beans and ‘ development in the management in coffee pest. ‘(Off service to the regional coffee industry 2006). Gloria Jean’s buys and roasts its own coffees – controlling the process from the bean o the cup. ‘(Gloria Jean’s Coffees goes Wife, 2003) therefore it is important for them to know every aspect of the coffee industry to ensure that the products offered by them are top standard quality products and available at all times. Other technology advancement such as what ‘ Cutbacks has done is the implementation of Internet cafes to attract customers. ‘ (Martin 2005) should be taken into account. Social and Cultural Attitude Trends The degree of social and cultural influences on the coffee industry will vary from country to country.

Gloria Jean’s should take this as an opportunity as consumers in Australia have higher disposable income and are willing to spend more, research also suggest that ‘ coffee sales increase if the product is made more available to the consumer’ (Strategic Analysis n. ) Demographic In regards of knowing which country are the top consumers in coffee consumption, the table below shows the top 10 worlds coffee consumers by size. Instead of targeting country which prefers others than coffee, for instance China with tea, it is easier to target countries with high consumption of coffee.

Source taken from (World Top 10 Coffee Consumer Countries n. D. ) Political and Legal Environment ‘ The Political / Legal / Regulatory Environment can be simply described as the laws and regulations that business has to follow in order to make sure the business winners do not get arrested, or have the business fined for noncompliance of some regulation. ‘(The Political / Legal / Regulatory Environment 2006) In Australia there are many rules and regulations that were created for the coffee industry, such as the Fair Trade Certificate and the Rainforest’s Alliance.

Rather then going consumers going all the way to Gloria Jean’s for a cup of drink especially coffee, they prefer to purchase different brands of coffee from the nearest stores or supermarket. ‘ Buyers of coffee show a variety of price sensitivities. At the low price end, coffee is often considered a commodity and, accordingly, demonstrates price sensitivity. ‘(Useless et al. 1997). Take for example Cutbacks coffee case ‘ in 1994 freeze in Latin America raised the prices of Arabica beans worldwide, which in turn puts pressure on the prices of Cutbacks coffee beverages.

Consumers did not balk at he higher prices. The Cutbacks brand stands for quality, and consumers have shown great willingness to pay for that quality. ‘(Useless et al. 1997). Other threats to Gloria Jeans are that the customers of Gloria Jean’s have low or no switching cost in switching to other competitors for example to Coffee Club and the ability of its customers to brew their own coffee. Therefore it is important for Gloria Jean’s to build its brand around quality and pricing to increase its customer base and customer loyalty. The Australian coffee market is very competitive but consumers are brand- loyal, and becoming more sophisticated. ‘(Australian Coffee Stats 2006) Bargaining Power of Suppliers ‘ Coffee is the world second largest traded product after petroleum’ (Kimball et al. 2002). The supply of coffee is determined by weather, demand and sometimes quality of the beans. It is said that the demand for coffee ‘ in Australia has increased by 60% over the past 10 years, with the higher quality ‘ Roast and Ground’ market now comprising 20% of total imports. Demand for ‘ Roast and Ground’ coffee increased by 6. % in 1996 compared to 1. 4% for instant coffee. ‘(Drayman and Paisley 1997) and his has caused the major players in the coffee industry have seen profits decline because of over-crowding of the market’ (Kimball et al. 2002) thus it will give the suppliers higher bargaining power. ‘ Other factors that affect the bargaining power of suppliers are the condition of the weather and the health of coffee trees for example during winter seasons. ‘ (Kimball et al. 2002) Threat of Substitute Products and Services The threat of substitute products can be considered average for Gloria Jean’s in the coffee industry. Other beverage industries can satisfy the customer’s need for a rink, and other food industries can satisfy the customer’s need to eat. ‘(Kimball et al. 2002). However, though it may be said there is no substitute for a good cup of coffee or coffee beans, coffee bars are beginning to face significant substitution threat in the form of alternative distribution outlets. ‘(Useless et al. 1997). Intensity of Rivalry among Competitors ‘ The more concentrated an industry is, the fewer the competitors are, and the more likely that http://www. Essays. Com/essays/marketing/Gloria-]mean-coffee. HP 6/21 competitors will recognize their mutual interdependence and so restrain their valor. ‘(Simenon 2006) ‘ Gloria Jean’s Coffees is the largest specialty coffee retailer and the fastest growing franchise organization in Australia. ‘(Skinny Carmella the new low fat alternative 2004) However it faces very tough competition from Coffee Club, Hudson Coffee and not to mention Cutbacks in this industry, the reason for this it is said that the coffee industry market growth is declining. ‘ Competitors are selling similar products, including specialty coffees as well as high quality foods.

Hudson Coffee started out firstly in Melbourne 1998. It now has over 30 stores in Australia and has begun to franchise its operation to achieve more rapid growth (Coffee the Australian Way 2006). With regard on the idea that the competitors for Gloria Jean’s coffee is using the franchised method on doing business as well as the strategic way Cutbacks Coffee used to classify its product uniqueness that is different from the others. This is where Gloria Jean’s how to look into and tap its market share back across the countries which Cutbacks had taken over.

Indirect Competitor Apart from the two main competitor, Gloria Jean’s Coffee is also facing with its indirect competitors such as; Dunking’ Donuts Crispy Creme McDonald’s Independent Espresso Bars As for the donuts stores such as Dunking’ Donuts and Crispy Creme apart from the donuts they do sell beverages such as Juice, coffee and tea. When customers drop buy to have the donuts at the same time they are able to have coffee at the store as well ND it is not much difference than the other big establish coffee chain. National doughnut-shop chains, such as Dunking’ Donuts and Crispy Creme, may prove to be a more serious competitive threat.

This requires Gloria Jean’s management team to understand the marketplace trends and their competitive implications. By having all the information and knowledge, they can plan their strategy, and a good strategy will always determine the success of an organization. Therefore, internal analysis need to be done as per to underlines their unique resources and capabilities in order to develop a competitive advantage. While the external analysis did find out what the company might do, the internal analysis will examine what the company can do (Hanson et al. 2005).

Outlining Gloria Jean’s resources would consist of two (2) parts; tangible resources and intangible resources. According to Hanson et al. , tangible resources means the attributes that can be seen and counted, while intangible resources can neither be seen nor counted, but valued. Thus, intangible resources are hard to imitate, because they are more difficult to understand (Hanson et al. 005). 9/21 Tangible Resources Financial Sector Gloria Jean’s Coffees management team manages to expand their franchises internationally and have full control over their franchisee.