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it open in bd who bought the franchise. how long has it been going on. then let us talk about the demographics, i ve already mentioned about the demographics which will be affecting gloria,jeans in my paper u know upper middle class and all. we can talk abt whom we are considering upper class and what kind of service gloria jeans is offering them. stuff lyk wi fii and all. later we talk about reference group. the group which helps to bring customers for gloria jeans most. we can give that diagram u know the crediblity vs reach. we can say that word of mouth is the best asset for the joint so they dont go for mass marketing. after that we can talk about the three learning theories effect on gloria jeans customer. u know cognitive, observational and involvement. lastly we can talk about changing attitude u know adding belief changing. elief, for gloria jeans the most appropiate would be affect of ad or a website. as they did that when rana plaza collapsed. we can end it with a recommendation. but it shud be within one slide. as we already have a lot to discuss before hand. so to sum it up 1. background 2.demography 3.reference group 4. learning theories 5. changing attitude 6. recommendation i believe this should be enuf. cheeerss............
Prepared by Name KAZI MOHAMMAD SAAMI ALAM TANVIR AHMED MD. MARUF BILLAH M. ASHIK IQBAL ID 113-0263-060 Cell Phone # 01833330033 E-mail saamialam@gmail.com
Prepared for
SECTION 1: Brief Description of Product or Service and Its Introduction into a New Market
Gloria Jeans Coffee is devoted to offering the worlds highest quality coffee worldwide. Australian owned and locally operated, the Gloria Jeans Coffees now serving with over 1,000 coffee houses in 39 countries. It is a brand synonymous with coffee quality and leading franchise systems. It is a combination of passion, commitment and dedication to deliver the highest quality coffee to our guests that unites our global team in the same Vision to be the most loved and respected coffee company in the world.
Vision
To be the most loved and respected coffee company worldwide.
Mission
Gloria Jeans Coffees is committed to build a unified family, consistently serving the highest quality coffee and providing an outstanding and personalized service in a vibrant store atmosphere.
Journey
The Gloria Jean's Coffees started its journey in the USA in 1979 when Gloria Jean and Ed Kvetko opened a specialty gourmet coffee outlet in a small town just north of Chicago. With appreciation for quality coffee growing, it wasnt long before Gloria Jeans Coffees outlets started to appear around the USA. More than 16 years later, Nabi Saleh, an Australian businessman and coffee expert, experienced the brand while in the USA and with his business partner, Peter Irvine, brought Gloria Jeans Coffees across the globe to Australia.
Australia quickly became Gloria Jean's Coffees' fastest growing market. So with a recipe for success, Nabi and Peter set their sights on realizing a vision to make Gloria Jeans Coffees the most loved and respected coffee company in the world. In 2004, they returned to the USA and purchased the international branding and roasting rights for all countries outside of the USA.
Four years later, the story has come full circle. In early 2009 Gloria Jeans Coffees International affiliate company, Praise International North America Inc, completed negotiations to buy Gloria Jeans Coffees U.S. retail and franchise operations from its current U.S. owner comprising of 102 coffee houses in 24 states. Today Gloria Jeans Coffees is located in numerous countries around the world and continues to find a place in the hearts of coffee lovers everywhere.
2004- returned to the USA and purchased the international branding and roasting rights
CAFF MOCHA: Rich chocolate, espresso and steamed milk finished with whipped cream and chocolate sprinkles. CARAMELATTE: A classic Gloria Jean's favorite. Delicious caramel syrup added to our Caff Latte. WHITE CHOCOLATE MOCHA: Sweet, tempting white chocolate, espresso and milk topped with whipped cream and chocolate sprinkles. VERY VANILLA LATTE: The smooth, comforting flavor of vanilla combined with espresso and milk, topped with whipped cream. HOT TEA: The pyramid tea bag means that our new high-quality, loose-leaf tea has the space to expand and brew inside the bag. CHAI TEA LATTE: Black tea leaves with ginger, cardamon, cinnamon and other spice, sweetened and mixed with steamed milk. Served in latte-style. CLASSIC HOT CHOCOLATE: A rich, traditional hot chocolate combined with steamed milk and topped with marshmallows. BABYCINO: Perfect for pre-school age kids. Simply steamed milk and a dollop of milk foam in a piccolo cup.
Cold Drinks
SIGNATURE ICED COFFEE: Cold-brewed for a smoother taste. Our Iced Coffee is a simple blend of coffee and milk... ICED LATTE (UNSWEETENED): Pure and simple espresso shots and milk over ice. ICED MOCHA: Rich chocolate, espresso and milk over ice topped with whipped cream and chocolate sprinkles. VERY VANILLA CHILLER: Espresso, milk and smooth vanilla blended with ice and topped with whipped cream. ORIGINAL ICED CHOCOLATE: A Gloria Jean's favorite. Chocolate and vanilla blended with ice. VOLTAGE (EXTREME COFFEE): Voltage is an intense drink that delivers an authentic coffee jolt. A blend of milk, ice etc. FRUIT CHILLER: Natural fruit puree blended with ice. 99% fat free. Available in Mango and Strawberry. ITALIAN SODA: Our delicious Italian-style flavor syrups poured over sparkling soda water.
Segment Marketing
Market segment consist of customers who share a similar wants and needs, in the chapter we will try to identify those needs and segment accordingly. Gloria Jeans primarily serves beverages and light meals which mean its customers come to eat snacks, drink beverage and have a good time while doing so. No one comes to Gloria Jeans to shop for clothes or to buy shoes so it can be agreed that most of the market segments of Gloria Jeans have homogeneous preferences. Keeping that in mind the following consumer segments are selected
Geographic
Dhaka , Khulna, Rajshahi, Barisal, Chittagong, Rangpur Explanation It is highly unlikely that the people from other division are going to come to just have coffee in Gloria Jeans. So it is most likely that people of Dhaka region shall be served by Gloria Jeans.
Demography
Age Under 6 years, 6-11 years, 12- 19 years, 20- 34 years, 35-49 years, 50-60 years, 60+ years.
Gender Male, Female Explanation Gloria Jeans Coffee shop has products which attract young children such as babycino and minicino and it has classic hot chocolate to attract 12 19 year olds and the rest of the age group may drink coffee. This makes perfect for Gloria Jeans to attract families of all sizes .
Explanation Blue collar workforce of Bangladesh does not prefer coffee rather it prefers tea, at the same time it does not earn enough to afford Gloria Jeans products.
Education Illiterate, HSC/SSC, Non graduate, Graduate, Postgraduate Explanation The menus of Gloria Jeans are all written in English in addition the services offered by Gloria Jeans requires some form of education to use such as internet, I pad, Mackingtosh PC as a result illiterate people will not be attracted in Gloria Jeans.
Income Low, Lower Middle, Middle, Upper Middle, Upper Explanation Products of Gloria Jeans are very expensive compared to Bangladeshi standard so it is unlikely that anyone other than upper middles class and upper class will be able to afford it.
Psychographic Segmentation
Innovator, Thinker, Achiever, Experiencer, Believer, Striver, Maker, Survivor Explanation Gloria Jeanss premium pricing will attract innovator and achiever as innovators look for cultivated taste at the same time achievers look for expensive products to demonstrate their
success to their peers. The same reason shall discourage striver and survivors as strivers are resource constrained and survivors are loyal to their favorite brands. Gloria Jeanss dedication to quality will attract thinkers but its premium pricing will discourage believers as they are practical and look for relatively same quality at lower price somewhere else.
Behavioral Segmentation
Occasions Regular, Special
User Status Non user, ex user, Potential user, First time user, Regular user
Explanation Gloria Jeans does not sell a luxury or a durable product. So it thrives on regular usage, Gloria Jeans has positioned itself as a quality product all across the world which indicates that it will draw customers who are looking for quality, service and speed. Since it is a non durable
good Gloria Jeans will thrive on repeat purchase so usage rate should be medium and heavy.
Loyalty Status Hard core loyal: Low Gloria Jeans is operating in Bangladesh less than 1 year so it did not get time to create a large hard core loyal consumer base.
Split Loyal: High Gloria Jeans sells non durable products low involvement products which also have a high variety seeking behavior which indicates that the firm will have high number of split loyal who are going to other coffee shops.
Shifting loyal: Low Since coffee shops are low involvement product which means its highly unlikely that the consumer will shift loyalty from one product to another one. Switchers: Low Gloria Jeans serves very high quality product and promotes a certain life style that is why it attracts Thinkers, Achievers, who likes to use the brand to send a message to their peers.
Since hard core loyal user of the brand is low it is unlikely that there will be entrenched consumers.
Key Psychological Process for the Consumers of Gloria Jeans Coffee Shop
Consumer Psychology
Purchase Decision
Consumer Psychology
Motivation
Freuds Theory Freuds theory suggests that consumers in Gloria Jeans are not only coming to drink coffee but also for some unstated needs. Using laddering technique we found out those consumers in Gloria Jeans not only comes for coffee but to have a good time, to relax and to have fun or to get some important work done using the high speed internet available. Maslows Theory Maslow suggests that the human needs are arranged in a hierarchy from most pressing to least pressing. As Freuds theory motivation suggest that the customers of Gloria Jeans comes for unstated needs such as to have good time or to get some work done it is expected that people who are on Social needs or above in Maslows Hierarchy of Needs will be attracted to come in Gloria Jeans. Herzbergs Theory: Herzberg suggests that there are two factors for selling products satisfiers and dissatisfiers. For Gloria Jeans the dissatisfiers will be poor service, poor quality coffee and out of order internet. Consequently the satisfier will be new products on the menu, regular discounts and special promotions.
Perception
Selective Attention: Selective attention indicates that even though Gloria Jeans sells snacks other than coffee, people are likely to come for the coffee rather than for snacks. In addition consumers are likely to get attracted to large discounts rather than lower discounts.
Selective Distortion Consumers will be willing to interpret the information based on preconception so if the message Gloria Jeans is an international coffee chain shop can be given to the customers it is most likely that they will think that Gloria Jeans coffee tastes better than other products.
Learning
Learning Theory suggests that the customer of Gloria Jeans will be able to discriminate between a set of similar stimuli and can adjust their response accordingly. For example the consumers will learn to differentiate between the services of Gloria Jeans and other coffee shop and will place different values on them. So it is important to maintain a constant level of service.
Memory
Memory retrieval for Gloria Jeans should be easier for consumers as Gloria Jeans provides unique dcor and facilities.
Information Search Information can be excavated from various sources such as Personal: Friends, Family Acquaintances Commercial: Advertising, Websites, Displays Public: Mass media,
Awareness Set Coffee World Cuppa Coffee Gloria Jeans Coffee 11 Baristaa Lavatza Bitter Sweet Caf
Decision ?????
Evaluation of alternatives The alternatives will be evaluated via location, cleanliness, atmosphere and taste of the products.
Purchase Decision For executing the purchase intention consumers of Gloria Jeans may make four sub decisions:
Product type Hot beverage, Cold Beverage or snacks Quantity Large, Medium, and Small Timing Weekend or weekday Payment Method Cash or credit card
This upcoming growth could be driven by arrival of a number of major international brands while a number of local restaurants are also reportedly looking for franchising in the district towns and suburbs as a possible of way of expanding their network. The growing presence of three leading brands (Pizza Hut, KFC, A & W) of the worlds largest fast food chain in the capital over the years have come to signify the growing popularity for quick service meal among the countrys booming middle class consumers.
Recently, Helvetia, another leading local fast food chain, has unleashed an ambitious plan to open around 30 outlets around the countrys suburbs through franchises to grab the biggest share in the market. Fast food outlets have become a multi billion taka industry in the country, with one insider estimating that on average, fast foods worth around BDT 8.0 million are sold in the capital every day, which puts the gross revenue of these fast food retailers at BDT 3.0 billion annually.
Apart from big chains, petty fast food outlets have also sprouted in the nook and corner of the capital, serving the everyday dining needs of millions of busy city dwellers. It is estimated that there are 105 fast food outlets in the food court of the citys Bashundhara City Shopping Complex alone.
With chicken being the most common ingredients of fast food items, these restaurants are also a major buyer of the countrys booming poultry farms, with one insider estimating that every day, almost 8000 chickens from the countrys major poultry farms found its way to Dhakas quick service restaurants.
However, the major international names in the arena are facing stiff competition from their local counterparts due to higher investment and operational cost as well as strings of formalities in importing raw materials. The initial investment in setting up an international franchise is seven to eight times higher than setting up a local one, an insider said. The demand for fast food can be mainly attributed to the growth of the young, middle class in Bangladesh. Bangladesh has a young population and fast food chains are hugely popular among the young people of the country.
The other main factors behind the increasing demand for fast food is increasing urban population, expanding labor force, and changing lifestyle. Swiss, Helvetia, Dominoes Pizza, BFC, launched to establish local brands, were doing well in the most crowded cities of Bangladesh. International food chains, Pizza Hut and KFC, came into business in 2002 and 2006 respectably and soon changed the lifestyle and food habits of the consumers by transforming these outlets into gathering places for passing leisure time with friends or relatives.
Supplier Power
Supplier power within the industry is weak owing to the large number of vendors available and the easy substitutability of vendors. Most restaurants within the industry get their food from various butchers, farmers, and packaging companies; they dont make their own. For example, most restaurants offer meat and there are many suppliers throughout the country. There are many options for restaurants to choose from and this will determine the price at which they will sell their products.
Buyer Power
Within the fast food segment, the bargaining power of customers plays an important role. The customers of the fast food markets demand high quality food and a unique experience, coupled with a reasonable price. Although fast food chains may raise prices, the industry
must do so in ways that do not significantly exceed that of competitors or violate customer expectations. The restaurants must maintain a price that is lower than the casual experience of other restaurants. If the price of fast food becomes too great, customers will leave this market and venture to other restaurant segments. Because fast food restaurants have been able to maintain a reasonable price to offer its product to customers, the restaurant segment is able to maintain reasonable growth even during the economic downturns.
Competitor Analysis
Gloria Jeans is entering the market as the market challenger and it is competing with various establishments already operating in the Gulshan area. The pricing strategies and the marketing strategies will be explained in details in later parts of the report. However it should be noted that there quite a few close competitors and numerous distant competitors. Some of the distant competitors such as Caf Mango are well established local brands and has a large base of loyal customers. This makes the bargaining power of the buyers very high.
Close Competitors Market Leader Barista Lavazza Coffee World Market Follower Cuppa Coffee Coffee 11 Market Nicher Bitter Sweet cafe
Distant Competitors Nestle Caf Mango Smoke Caf Exit Lounge Floor Six Kozmo Lounge Ice cream parlours
Lavazza Barista
Lavazza Barista is a part of MGH group which specifically sells Lavazza coffee in its outlet. It serves premium coffee and snacks it does not prepare the snacks or the bakery items rather it outsources them from coopers. Pricing Strategy The Company uses more for more pricing strategy where it charges very high price for beverages.
Value offering The Company has tried to set its outlets as cozy comfort zone where one can relax and have beverage. It does not serve meals or specific breakfast options but has wide choice of snacks and bakery items. It does not have WIFI facilities.
Expanding Total Market The Company concentrates on new customers rather than more usage as it has very little promotional campaigns but is expanding the number of outlets. It has opened up new outlet in Dhanmondi and inside Bangladesh American Tobacco office. In addition it is also planning to open outlets inside Appollo Hospital and Airport very soon. Defending Market Share The Company is employing counteroffensive strategy to compete with Gloria Jeans as most of its market share is being eaten by Gloria Jeans. Barista is at a serious disadvantage as the menu of Barista is not very rich; to remedy this fact Barista is having a menu reengineering and by adding new products in its food basket.
Coffee World
Coffee World has been operating in Bangladesh since 2006. it is an international franchise which introduced Bangladeshi consumers to premium coffee.
Pricing Strategy The Company uses maximum current profit strategy to price its products as a result it revises its prices every year.
Value offering The Company has tried to set its outlets as cozy comfort zone where one can relax and have beverage. It has a breakfast menu and serves pasta as a meal. One may use WIFII in Coffee World without purchasing anything.
Expanding Total Market The Company concentrates in more usage rather than new customers which is why it issues loyalty cards to its customers.
Defending Market Share The Company uses contraction defense to fight off competitors. Recently it has closed down its outlet in Banani to remain competitive.
Cuppa Coffee
Cuppa Coffee is a large outlet in on Gulshan Avenue, which primarily targets young office goers and university students to come and try its products.
Pricing Strategy The company uses Survival pricing strategy to price its products, as its products relatively lower priced compared to its contemporaries.
Value offering The Company has tried to set its outlets as cozy comfort zone where one can relax and have beverage. The coffee shop also serves elaborate lunch dinner menus
Expanding Total Market The company concentrates on new customers as it uses a massive bill board to attract the new customers.
Marketing Strategy It functions as an imitator as it has adopted primary beverage recipes from Coffee World and has changed the packaging and names a bit. The coffee shop does not have any special beverage which is only exclusive to the caf.
Coffee 11
Coffee 11 is a coffee shop situated in Gulshan 2, it is trying to be a local franchise an plans to open different outlets all over the city.
Pricing Strategy The Company uses maximum current profit strategy to price its products as a result it revises its prices every year.
Value offering The Company has tried to set its outlets as cozy comfort zone where one can relax and have beverage. The coffee shop also serves elaborate lunch dinner menus
Expanding Total Market It does not have any specific strategy for increasing market share.
Marketing Strategy It functions as an imitator as it has adopted primary beverage recipes from Coffee World and has changed the packaging and names a bit. The coffee shop does not have any special beverage which is only exclusive to the caf.
Specialties
Caramelatte Chai Tea Latte Very Vanilla Latte Crme Brle Latte White Chocolate Mocha
Hot Chocolate Classic Hot Chocolate White Hot Chocolate Creamy Hot Cocoa
Extra Espresso Shot Flavor Syrup Espresso Chillers Mocha Chillers Gourmet Iced Chocolate Fruit Chillers Regional Beans Capsules Knock Box
Rosetta Mug
Whipped Cream
Travel Mugs
Shaker
Plunger
Table: Product-Mix and Product Line Length for Gloria Jeans Coffees Bangladesh
Merchandise
Specialties Tea
Caff Hazelnut Americano Mocha (Long Black) Irish Nut Crme Minicino Babycino
Grinder
Table: Product-Mix and Product Line Length for Gloria Jeans Coffees Bangladesh (continued)
Product Mix
HOT DRINK/ ESPRESSO
Classics GJC Classic ranges items that are going to be made from regular Arabica beans with double shot. The coffee items within this range are as follows:
Cappuccino It will be offered both in small (228 mL) and regular (286 mL) serving size containing Espresso and steamed milk beneath a thick layer of dense velvety smooth milk. [Please see Appendix for actual product.]
Caff Latte It will be offered both in small (263 mL) and regular (330 mL) serving size made with Espresso and steamed milk below a thin layer of smooth silky milk. [Please see Appendix for actual product.]
Espresso (Short Black) It will be offered only in small (60 mL) serving size made with Gloria Jean's Special Espresso Blend coaxed to yield the essence of fine coffee. It will be wonderfully intense and aromatic. [Please see Appendix for actual product.]
Caff Americano It will be offered both in small (268 mL) and regular (335 mL) serving size made with rich, intense Espresso coffee lengthened with hot water. It is going to be strong, black coffee. [Please see Appendix for actual product.]
Macchiato It will be offered only in small (80 mL) serving size. A 'Macchiato' (Italian for 'marked') is an Espresso marked with a dollop of creamy milk. [Please see Appendix for actual product.]
Freshly Brewed Coffee (Coffee of the Day) It will be offered both in small (268 mL) and regular (335 mL) serving size. It is simply espresso and steamed milk without foam made with fresh Arabica beans. [Please see Appendix for actual product.]
Specialties GJC Specialties ranges items that have indulgent Espresso flavors. The coffee items within this range are as follows:
Caff Mocha It will be offered both in small (260 mL) and regular (328 mL) serving size made with rich chocolate, espresso and steamed milk finished with whipped cream and chocolate sprinkles. [Please see Appendix for actual product.]
Caramelatte It will be offered both in small (266 mL) and regular (335 mL) serving size. A classic Gloria Jean's favorite. Delicious caramel syrup added to its Caff Latte. [Please see Appendix for actual product.]
Very Vanilla Latte It will be offered both in small (251 mL) and regular (316 mL) serving size. The smooth, comforting flavor of vanilla combined with espresso and milk, topped with whipped cream. [Please see Appendix for actual product.]
Crme Brle Latte It will be offered both in small (352 mL) and regular (443 mL) serving size. In the deep, Crme Brle fragrant green tea is combined with Creme Vanilla and Milk, and then drizzled with Caramel Sauce on top. [Please see Appendix for actual product.]
White Chocolate Mocha It will be offered both in small (263 mL) and regular (324 mL) serving size. It is made with sweet, tempting white chocolate, espresso and milk, and topped with whipped cream and chocolate sprinkles. [Please see Appendix for actual product.]
Hazelnut Mocha It will be offered both in small (263 mL) and regular (324 mL) serving size. It blends the divine unity of smooth espresso, lushy chocolate and toasty hazelnut. [Please see Appendix for actual product.]
Irish Nut Crme It contains a magical mix of Irish Crme and Hazelnut Italian style syrups, white chocolate, espresso and milk; all beneath a mound of whipped cream and green sprinkles. It will be offered both in small (263 mL) and regular (324 mL) serving size. [Please see Appendix for actual product.]
Minicino It is a great before or after school treat for primary-school age kids. It will be offered only in small (242 mL) serving size. [Please see Appendix for actual product.]
Babycino It is perfect for pre-school age kids and is simply steamed milk and a dollop of milk foam in a piccolo cup. It will be offered only in small (50 mL) serving size. It is going to be absolutely free only limited to a single serving for guest parents accompanying single kid. [Please see Appendix for actual product.]
Tea Although, it is a Coffee shop but its offerings will not be limited to Coffees only, as guests who are also the regular tea lovers in the town may pop in anytime. GJC Tea ranges items that are made from high quality loose leaf. The items within this range are as follows: [Please see Appendix for actual product.]
Hot Tea The pyramid tea bag means that our new high-quality, loose-leaf tea has the space to expand and brew inside the bag. This segment will offer various flavors such as English Breaksfast Tea, Green Tea, Earl Grey and Peppermint Tea. Each of the variations will be offered both in small (250 mL) and regular (335 mL) serving size. [Please see Appendix for actual product.]
Chai Tea Latte It is made from black tea leaves with ginger, cardamom, cinnamon and other spices, sweetened and mixed with steamed milk. It will be served in latte-style and be offered both in small (228 mL) and regular (295 mL) serving size. [Please see Appendix for actual product.]
Hot Chocolate GJC Hot Chocolate items are rich, creamy and comforting. The items within this range are as follows:
Classic Hot Chocolate It will be offered both in small (280 mL) and regular (348 mL) serving size. It is made with a rich, traditional hot chocolate combined with steamed milk and topped with marshmallows. [Please see Appendix for actual product.]
White Hot Chocolate It is going to be a twist on a classic favorite, blending sweet white chocolate, combined with steamed milk and topped with marshmallows. It will be offered both in small (280 mL) and regular (348 mL) serving size. [Please see Appendix for actual product.]
Extras This Extra range will offer items just to help guests customize their own coffees and let them make their own choices and play boss with extra shot of Espresso Shot, Flavor Syrup, Whipped Cream, Milk (e.g., Imported Full Cream Milk, Soy Milk and Skim Milk) and Decaffeinated Coffee etc.
Very Vanilla Chiller It has the smooth, comforting flavor of vanilla combined with espresso and milk, topped with whipped cream. It will be offered both in small (270 mL) and regular (316 mL) serving size. [Please see Appendix for actual product.]
Crme Brle In the deep satisfying Creme Brulee Chiller, fragrant green tea is combined with Crme Vanilla and Milk, and then drizzled with Caramel Sauce on top. It will be offered both in small (352 mL) and regular (443 mL) serving size. [Please see Appendix for actual product.]
Voltage (Extreme Coffee) Voltage is an intense drink that delivers an authentic coffee jolt. It is a blend of milk, ice, vanilla powder, espresso beans and espresso. Hot espresso shots, the final ingredient, are poured onto the cold, blended mixture creating a dramatic visual display. It will be offered both in small (270 mL) and regular (316 mL) serving size. [Please see Appendix for actual product.]
Mocha Chillers It blends chocolate and coffee together. The items within this range are as follows:
Cookies n Cream Tasty chocolate biscuits, white chocolate and milk blended with ice, topped with whipped cream and chocolate sprinkles. It will be made available both in small (416 mL) and regular (469 mL) serving size. [Please see Appendix for actual product.]
Hazelnut Mocha Chiller It is a passionate expression of strong Espresso, rich chocolate and emotional hazelnut. For coffee lovers equally fond of a chocolate experience, this is it. It will be made available both in small (416 mL) and regular (469 mL) serving size. [Please see Appendix for actual product.]
Gourmet Iced Chocolate This category will offer items having chocolate without coffee. The items are as follows:
Original Iced Chocolate It is a Gloria Jean's favorite. Chocolate and vanilla blended with ice, topped with whipped cream and chocolate sprinkles. It will be made available both in small (386 mL) and regular (453 mL) serving size. Strawberries n Cream It is a perfect blend of Cream and Strawberry. [Please see Appendix for actual product.]
Strawberry White Chocolate Chiller It is made with White Chocolate flavored with strawberry. [Please see Appendix for actual product.]
Fruit Chillers It is actually non-dairy blend of natural fruit puree and ice. All of its fruit chillers are nondairy and hence are nearly 99% fat free. The items range from Mango to Strawberry to Mixed Berries. It will be made available both in small (425 mL) and regular (500 mL) serving size. [Please see Appendix for actual product.]
Gourmet Chillers The items within this category are all healthy fruit smoothie ranging from Mango to Strawberry and Mixed berries. It will be made available both in small (425 mL) and regular (500 mL) serving size. [Please see Appendix for actual product.]
Ice Blended Drinks (Over Ice) The items within this category are very simple, light and refreshing drinks over ice. The items are as follows:
Signature Ice Coffee It is cold-brewed for a smoother taste. Our Iced Coffee is a simple blend of coffee and milk, lightly sweetened and poured over ice. It will be made available both in small (435 mL) and regular (511 mL) serving size. [Please see Appendix for actual product.]
Iced Americano It is basically dark rich espresso, water and poured over ice. It will be made available both in small and regular serving size. [Please see Appendix for actual product.]
Iced Tea It is refreshing iced black or herbal tea over ice. It will be made available both in small (400 mL) and regular (500 mL) serving size. [Please see Appendix for actual product.]
Italian Soda Gloria Jeans delicious Italian-style flavor syrups poured over sparkling soda water makes this an excellent thirst quencher. It will be made available both in small (430 mL) and regular (537 mL) serving size. [Please see Appendix for actual product.]
The customers can have this ultimate coffee experience at their homes by just getting the beans and directions from the adept coffee makers at Gloria Jeans. The beans will be labeled visibly and the customers will get to know about the genesis of the atypical flavor they are about to brew. Savors from Indian, Chinese, Columbian, Ethiopian, French, Kenyan, Zimbabwean, Costa Rican and Swiss origins can be found here. [Please see Appendix for actual product.]
MERCHANDISES
It is just another part or dimension of the Gloria Jean's Coffees (GJC) at home range. This category will offer an array of merchandises of its own brands to its coffee enthusiastic customers so that they can have coffee experience at home or at work or at tour. This category will include items such as Knock Box, Rosetta Mugs, Travel Mugs, Shakers, Plungers, Coffee Filters, and Grinder etc. [Please see Appendix for actual product.]
Grinder GJCs hand held grinder will ensure that coffee enthusiasts never miss out on the delicious aroma of freshly ground coffee and that they may take it everywhere. [Please see Appendix for actual product.]
Knock Box This tool is a must buy for any home barista. [Please see Appendix for actual product.]
Rosetta Mugs This is a stylish and soft pastel toned Coffee Mug that sits on an enlarged egg shaped saucer. [Please see Appendix for actual product.]
Travel Mugs This merchandise will be offered to the coffee enthusiasts to let them enjoy Gloria Jeans Coffees range of drinks on the go. [Please see Appendix for actual product.]
Packaging
GJC Coffees, Teas, Hot Chocolates are going be packaged using a varieties of standard, and takeaway coffee cups and k-cups. Also, it will use standard Chiller Cups for its Chiller items and transparent Chiller cups for other Ice blended drinks to be imported from Glorea Jeans Coffees Australia. All of its packaging materials are highly hygienic and environmental friendly.
Oxygen is the staling agent for coffee. In order to maintain freshness, GJC will package its beans in a one way valve-bag immediately after they are roasted. By using the valve-bags, the beans remain fresh for four (04) months. The shelf life that GJC will place on its K-cups is a best by date for six (06) months. The K-cup packaging will be packaged with less than 1% oxygen through its nitrogen flush process.
With proper storage and handling, chiller products will last for one (01) month. The product does not become harmful after seven (07) days (assuming it has not been mixed with milk). The shelf life dates on the packaging will be there to ensure top quality of the product.
Although there is no expiration date associated with GJC syrups, it will suggest using them within 60-90 days for optimal flavor. [Please see Product and Packaging section of Appendix for details.]
Warranty
If any of the Merchandise products develops a fault or defect during the warranty period, and subject to the terms in the warranty section [Please see Warranty section of Appendix for details], GJC will repair it or replace it. In case of take-home coffee beans, GJC will do whatever it can to ensure that its guests and customers are satisfied to utmost level. Should any of its customers feel the need to return an item within the first thirty (30) days of receiving it, he or she must contact Customer Service first to obtain an the return. In addition to that, if any of its guests find any of its coffee or chiller items poor or unpalatable in taste or dissatisfactory, GJC will take the responsibility of whatever the guest demands. [Please see Warranty section of Appendix for details]
Customer Service
Juggling cups, beans and extracting that perfect espresso shot is all part of the challenge of meeting its GJC barista standards. Its dynamic in-store baristas all over the world are expertly trained and can help the guests with the GJC art of making the perfect cup of coffee.
At Gloria Jean's Coffees, every barista and personnel to be stationed at its Dhaka outlet will be highly trained on both hard skills and soft skills when hired to work for. This equal emphasis on the hard and soft skills will further highlight GJC's strategy to make the experience pleasant for the guests. The soft skills are a way to teach the personnel on how to connect with the customer, by establishing eye contact, smiling and greeting them with their names when the customers are regulars. In addition to that, there will be a Just Say Yes policy for which the baristas and the personnel will be encouraged to go beyond the company/ franchise rules in order to satisfy the guests. These again will create a friendly environment for guests who will definitely feel special and will increase their customer satisfaction.
Through its Dhaka outlet alongside its official facebook page: https://www.facebook.com/gloriajeansjcoffeesbangladesh , customers will have the opportunity of participating in loyalty and feedback programs. These programs will include
the Frequent Sippers Cards and Customer Comment Cards. By participating in these programs customers will have the option to supply personal information including their name, address, phone numbers, email address and opinions to the Company.
This information in future will be used for direct marketing and communication purposes to continually improve GJC product and customer service levels. In a nutshell, this will assist GJC in maintaining its commitment to providing an outstanding and personalized experience for its customers.
Differentiation
Gloria Jeans Coffees Bangladesh will position itself as the premier provider of flavored specialty coffee. Below are the factors that are going to differentiate it from other coffee shops in the town.
Experience the Best Coffee with Arabica Coffee Beans The Gloria Jeans Coffees journey to make a quality cup of coffee starts with the purchase of the worlds highest quality Arabica beans, which are hand picked to ensure only the best beans are selected. Beans are then meticulously roasted at the companys own state-of-the-art roasting facility in Sydney, Australia to produce its exclusive blends that suit the different tastes of its guests. All of its coffee is then packed within hours of roasting to ensure freshness.
Highly Trained Baristas Gloria Jeans Coffees runs its very own Coffee University where all of the Master Franchise Partners train for six weeks in the art of making quality coffee. This means that in every coffee house around the world, Gloria Jeans Coffees has expertly-trained and accredited baristas who handcraft each drink to perfection.
Customer Consulting (with Take-home Coffee Beans and Merchandises) As mentioned earlier, aside from drinks, GJC will offer take-home coffee bean packages and various merchandise to make coffee at home. The baristas at GJC will assist and give instructions on how to brew coffee at home. [Please see Customer Consulting section of Appendix for details]
Delivery In its effort to provide superior service, Gloria Jeans Coffees will install a buzzer system at its Dhaka outlet. It is going to be very simple to use for the guests. When a customer makes order at the counter, he or she will receive a buzzer. When the order is ready, the buzzer will notify the guest so he or she can collect it from the delivery section. And of course, GJC team will be there to assist the guests as always. [Please see Delivery section of Appendix for details]
Health Safety and Hygiene and Reliability In its effort to provide clean, safe and hygienic Coffees, Chillers and other beverages to protect the consumer health according to food safety management system (ISO 22000); GJC will appoint a senior Microbiologist as Food Safety and Hygiene Consultant at its Dhaka outlet. The purpose will be to review and ensure that its entire facility and operation can provide Safe and Hygienic food and beverages. The rest of its efforts to continuously improve will always be present.
Branding
Name Gloria Jean's Coffees (GJC), an Australian owned global specialty coffee company, and is a brand synonymous with coffee quality and leading franchise systems. The GJC story began in
the USA in 1979 when Gloria Jean Kvetko and her husband Ed opened a specialty gourmet coffee outlet in a small town just north of Chicago.
In 1979, Ed and Gloria Jean Kvetko purchased a small gift shop in a quaint little town just north of Chicago. Deciding to share their secret for great tasting coffee, the store soon developed a loyal following as people came from all around to experience Gloria Jeans gourmet coffees. Due to increasing demand and popularity, Gloria Jeans began franchising stores in the mid1980 to entrepreneurs in the Chicago market who shared their passion for specialty coffees. Today Gloria Jeans has grown to be one of the largest mall-based retailers of specialty coffees in North America.
More than 16 years later, Nabi Saleh, an Australian businessman and coffee expert, experienced the brand while in the USA and with his business partner, Peter Irvine, brought Gloria Jeans Coffees across the globe to Australia. [Source: www.gloriajeanscoffes.com]
Logo
The logo depicts a smoking coffee mug held by a hand which means that Gloria Jeans Coffees is committed to making the ultimate coffee experience Handmade Heartfelt for every guest from bean to cup. The logo resembles the quality and freshness of its coffee as desired by many coffee buffs.
Product Strategy
As presented earlier in the Table: Product-Mix and Product Line Length for Gloria Jeans Coffees Bangladesh, complete menu of hot and cold drinks, traditional espresso drinks, ranging from lattes, cappuccinos, ice-blended chillers, fruit smoothies, specialty teas, and a range of single origins, blends, estate and flavored whole beans are all going to complete a product line.
GJC in its Dhaka operation will not follow the similar product strategies that are being followed by other franchise partners all over the world. As it is the first time operation in Bangladesh, the company will not emerge as the full-line company for the time being like the way it does in Australia. It will include more items or perform Line filling gradually over time in its Hot Drinks and Chillers Line. [Source: www.gloriajeanscoffes.com]
Pricing
Final Price for Consumers
Espresso or Hot Drinks: Items Classics Cappuccino/ Caffe Latte Caffe Americano Espresso/ Machiato Coffee of the day Specialties Caffe Mocha/ Caramelatte Very Vanilla Latte/ Crme Brule Latte Irish Nut Cream Minicino Babycino Tea Hot Tea Chai Tea Latte 130 148 174 191 Small BDT 152 139 139 139 Regular BDT 191 174 174
Items Hot Chocolate Classic Hot Chocolate/ White Hot Chocolate Strawberries White Chocolate Extras Espresso shot/ Flavored Syrup/ Whipped Cream Soy Milk/ Skim Milk/ Imported Full Cream Milk/ Decaffeinated Coffee
Small
Regular
174 276
217 370
70 50
Value Added Tax Extra ** [Please see Pricing section of Appendix for details]
Chillers or Cold Drinks: Items Espresso Chiller Very Vanilla Chiller/ Crme Brulee Voltage Mocha Chiller Cocoa Loco/ Cookies n Cream Hazelnut Mocha Chiller Gourmet Iced Chocolate Original Iced Chocolate White Iced Chocolate/ Strawberries n Cream Strawberry White Chocolate Chiller Fruit Chillers Mango, Strawberry, Mixed Berry 252 252 320 296 296 450 278 278 313 339 Small Regular
252
296
Items Gourmet Chillers Strawberry, Mixed Berry, Mango Over ice Signature Iced Coffe Iced Americano Iced Tea (Lemon Lychee/ Peach) Italian Soda Water (Imported) Water (Local)
Small
Regular
287
322
Value Added Tax Extra ** [Please see Pricing section of Appendix for details]
Pricing strategy
GJC aims to be the product quality leader in the market. Since it will offer specialty coffee or gourmet coffee and strive to be affordable luxury products or services characterized by high levels of perceived quality, taste and status with a price just high enough not to be out of consumers reach (Kotler et al., 2009, p.376).
Distribution
GJC store in Dhaka is going to be more like a gift shop concept than a specialty coffee outlet. It will also include parking facility. The location chosen for its Dhaka outlet and for any of its future outlets is going to be a posh metropolitan area where most of people usually go.
Initially, the products will be offered at its leased outlet at Gulshan Avenue in Dhaka. There is no plan to open a few more outlets in Dhaka or in any other divisions in Bangladesh for the next one (02) or so. However, the expansion plan will be carried over later depending on consumer demand, competition and market dynamics. The products will be made available both in the form of Walk-in Welcome and Take out.
Most walk in customers looks for a cozy and warm place to hangout when they enter a coffee outlet. Gloria Jeans will provide a better environment for them by using comfortable sofas and furniture, warm ambience with music and also providing handicap facilities. This will improve consumers perception towards the outlet.
Many people patronize coffee outlet is because it is a neutral place for people to talk about business and do their homework and assignment. This means that internet connection is very useful for them, including students whom usually do their assignments and homework at the outlet. Providing Wi-Fi service to them will be a good idea, as more people will patronize the outlets for usage of Wi-Fi, which will indirectly be linked to purchasing of coffee in the outlet. There will be a separate hangout place for smokers. In addition to that, in case of peak period outdoor seating will be made available utilizing front yard section depending on consumer demand.
A buzzer system will be installed at its Dhaka outlet. It is going to be very simple to use for the guests. When a customer makes order at the counter, he or she will receive a buzzer. When the order is ready, the buzzer will notify the guest so he or she can collect it from the delivery section. And of course, GJC team will be there to assist the guests as always.
The take-home coffee beans, and capsules and various merchandises are going to be displayed right at the outlet. The coffees, teas and chillers may only be ordered using such payment options as cash, Visa, American Express, and Master Card (Debit/ Credit).
Promotion
Gloria Jeans will hardly do any advertising due to its enormous brand reputation contributed by the companys exceptional global growth and industry leading franchise systems.
Advertising
Social Media & Word of Mouth
Using the most popular social networks, facebook a page will be created where consumers will share their experience at Gloria Jeans Coffees. This will allow GJC to establish a public voice and reinforce other communication activities. Moreover, this will make the customers feel a more personal
relationship. This same facebook page will give customers the opportunity of participating in feedback programs and allow GJC to leverage on word positive word of mouth.
Promotion
Frequency Programs Through its store and official facebook page, customers will have the opportunity of participating in loyalty. These programs include the Frequent Sippers Cards
Under the Frequent Sippers Cards, three (03) most frequent guests will get the opportunity of having daily single treat of Coffe/ Chiller for a week.
Gifts Using the same Frequency Sippers Card, the top three next top three (03) frequent guests will get the opportunity of winning Gloria Jens Coffe Mugs.
We expect growth to occur across all categories at about 10% annually as the business becomes more established and well-known, reaching 400+ customers per day within a year and more than 500+ within three years. These estimates are likely conservative. However, it is possible we could attain a 1,000-per-day customer count within three years.
Important Assumptions
Sales growth will be a minimum of 15% annually, margins excellent, profits at approximately 20% - 25%, cash flow adequate. Marketing Expenses will remain below 5% of sales. Coffee drinks will continue to be considered an "affordable luxury." 15% minimum sales growth rate over the next three years as GJC becomes leader.
Break-even Analysis
A break-even analysis table has been completed on the basis of average costs/prices. With fixed costs of BDT 2,112,000 and BDT 360 an average sale, we need approximately BDT 2,800,000 per month to break-even.
Monthly Revenue Break-even Assumptions: Average Percent Variable Cost Estimated Monthly Fixed Cost
BDT 2,753,760
SECTION 3: Implementation
Implementation Timeline
Key Marketing Plan Start Date End Date MM-DD- MM-DDYYYY YYYY 2/1/2013 4/30/2013 2/1/2013 2/10/2013 2/10/2013 2/10/2013 2/15/2013 2/15/2013 3/1/2013 5/1/2013 3/1/2013 3/15/2013 4/1/2013 4/1/2013 4/1/2013 4/1/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/15/2013 4/30/2013 4/30/2013 4/30/2013 4/30/2013 4/30/2013 4/30/2013 5/15/2013 6/15/2013 4/30/2013 4/15/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/30/2013 5/15/2013 5/30/2013 5/15/2013 5/30/2013 5/30/2013 5/30/2013 Department
Business/Marketing Plan Secure Funding Secure lease Secure name licensing Marketing plan Structure company type Develop investor program Health Dept. Select and order furnishings Site plans Select construction contractor Select and order lighting Create employee manual Alliance with water company Join Chamber of Commerce Select cash register system Business license, etc. Select paint contractor Choose paint palette Select and order flooring Gift items, suppliers, order Select pastry supplier Select equipment supplier Graphics/brochure design Select confection suppliers Select juice suppliers
Marketing Marketing Admin Marketing Marketing Marketing Marketing Admin Admin Admin Admin Marketing Personnel Admin Admin Admin Admin Admin Admin Marketing Marketing Admin Admin Marketing Admin Admin
Credit card companies Create training program Select music system Install wireless Internet Hire manager, baristas Select business insurance Design, print stationery Pre-opening parties GRAND OPENING Acheive 700+ daily customers Totals
Start Date MM-DDYYYY 4/30/2013 4/30/2013 5/1/2013 5/1/2013 7/1/2013 7/1/2013 7/15/2013 9/1/2013 9/15/2013 12/12/2013
Department
** TBD= To be determined
Bibliography
1. Marketing Management by Kotler, Keller, Koshy & Jha 2. http://www.gloriajeanscoffees.com.au/About/Products.aspx 3. https://www.facebook.com/gloriajeansjcoffeesbangladesh 4. http://www.gloriajeanscoffees.com/BD/home.aspx