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this report is all about the marketing analysis of the gloria jeans. The first part talks about the consumer profile, the second part is about
Citation preview
this is what i believe we should be doingfirst let us talk about the background stuff lyk when did 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. background2.demography
3.reference group4. learning theories5. changing attitude6. recommendation
i believe this should be enuf. cheeerss............
Marketing Plan for Gloria Jean’s Coffees @ Dhaka
Prepared by
Name ID Cell Phone # E-mailKAZI
MOHAMMAD SAAMI ALAM
113-0263-060 01833330033 [email protected]
TANVIR AHMED 102-0462-560 01710855994 [email protected]
MD. MARUF BILLAH
123-1030-060 01911760544 [email protected]
M. ASHIK IQBAL 123-1033-060 01714104952 [email protected]
Marketing Management (BUS 620)
Section- 04
Spring 2013
Prepared for
Dr. Mohammad Baktiar Rana
Associate Professor
Part-time Faculty
Department of MBA
School of Business
North South University
SECTION 1: Brief Description of Product or Service and Its Introduction into a New Market
Gloria Jean’s Coffee is devoted to offering the world’s highest quality coffee worldwide.
Australian owned and locally operated, the Gloria Jean’s 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 Jean’s 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 wasn’t long before Gloria Jean’s 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 Jean’s 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 Jean’s 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 Jean’s Coffees
International affiliate company, Praise International North America Inc, completed
negotiations to buy Gloria Jean’s Coffees U.S. retail and franchise operations from its current
U.S. owner comprising of 102 coffee houses in 24 states.
Today Gloria Jean’s Coffees is located in numerous countries around the world and continues
to find a place in the hearts of coffee lovers everywhere.
Product Line at a Glance
Hot Drinks:
CAPPUCCINO: Espresso and steamed milk beneath a thick layer of dense velvety
smooth milk.
CAFFÉ LATTE: Espresso and steamed milk below a thin layer of smooth silky milk.
FLAT WHITE: Simply espresso and steamed milk without foam.
CAFFÉ AMERICANO (LONG BLACK): Rich, intense Espresso coffee lengthened
with hot water. Strong, black coffee
ESPRESSO (SHORT BLACK): Gloria Jean's Special Espresso Blend coaxed to yield
the essence of fine coffee. Wonderfully intense and aromatic.
MACCHIATO: A 'Macchiato' (Italian for 'marked') is an Espresso marked with a
dollop of creamy milk.
PICCOLO LATTE: A mini version of the Caffe Latte. A single ristretto shot layered
with a small amount of creamy steamed milk.
1979-started its journey in the
USA
1995- entered Australia
2004- returned to the USA and purchased the international branding and
roasting rights
2009-franchise operations in
102 coffee houses in 24
states
Today- opearting 1,000 coffee houses in
39 countries
CAFFÉ 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 Caffé 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.
SECTION 2: Consumer Profile
Consumer Segmentation and Targeting
The customer portfolio analysis concentrates on the value potential of each customer or group
of customers known as segments. Its objective is to assess the customers that the firm wants
to market their product. Gloria Jean’s is currently using the differentiation – focus strategy
which aims to differentiate within a several target market segments.
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.
Family size
All family sizes
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 .
Occupation
Blue collar, White collar
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 Jeans’s 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 Jeans’s 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
Benefits
Quality, Service, Economy, Speed
User Status
Non user, ex user, Potential user, First time user, Regular user
Usage rate
Light, Medium, Heavy
Loyalty status
None, Medium, Strong, Absolute
Readiness stage
Unaware, Aware, Informed, Interested, Desirous, Intending to buy
Attitude toward product
Enthusiastic, Positive, Indifferent, Negative, Hostile
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.
Buyer Readiness Stage of Gloria Jeans Coffee
For a marketing plan to work, at first it is required to be determined at what readiness level
the buyers are in so that the appropriate message can be send to the target product.
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.
Conversion model of Gloria Jeans’s Coffee shop
Convertible: High
Gloria Jeans is selling low involvement variety seeking product.
Shallow: Low
Since it is a low involvement product consumers do not actively seek to change the brand.
Average: High
Since split loyal are high it is expected that the conversion rate of the firm is average.
Entrenched: Low
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
Motivation
Freud’s Theory
Freud’s 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.
Maslow’s Theory
Maslow suggests that the human needs are arranged in a hierarchy from most pressing to
least pressing. As Freud’s 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 Maslow’s Hierarchy of Needs will be attracted
to come in Gloria Jeans.
Herzberg’s 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.
Consumer Psychology
Buying Decision Process
Purchase Decision
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 décor and facilities.
Possible buying decision process for the customers of Gloria Jeans
Problem Recognition
Problem recognition for the consumer is the urge to have coffee while socially interacting
with others.
Information Search
Information can be excavated from various sources such as-
Personal: Friends, Family Acquaintances
Commercial: Advertising, Websites, Displays
Public: Mass media,
Experimental: Free trials using small sachets of coffee
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
Total Set Awareness Set Consideration set Choice Set Decision
All coffee shops in Bangladesh
Coffee World
Cuppa Coffee
Gloria Jeans
Coffee 11
Baristaa Lavatza
Bitter Sweet Café
Coffee World
Gloria Jeans
Baristaa Lavazza
Bittersweet
Coffee World
Gloria Jeans
Baristaa Lavazza
?????
SECTION 3: Market Profile
Since the coffee or the cafe market of Bangladesh is very small, so much data could not
be gathered so in the hope of providing a more elaborate picture the total fast food industry
was taken.
After years of market saturation in the Dhaka’s major uptown areas, brand fast food
restaurants are now eyeing the mostly untapped part of the capital and the major suburbs to
open outlets aiming to double their market size to BDT 6.0 billion in the next five years. Big
names in the industry expect a growth of 20 per cent in revenue and customer size over the
next 12 months as the overwhelming craze for ready food in the country’s posh areas has
already pushed the market to an estimated BDT 3.0 billion mark.
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 world’s largest fast food chain in the
capital over the years have come to signify the growing popularity for quick service meal
among the country’s booming middle class consumers.
Recently, Helvetia, another leading local fast food chain, has unleashed an ambitious plan to
open around 30 outlets around the country’s 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 city’s 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 country’s booming poultry farms, with one insider estimating that
every day, almost 8000 chickens from the country’s major poultry farms found its way to
Dhaka’s 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 don’t 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 competitor’s 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.
Rivalry amongst Business Firms
Competition among firms is high in this industry. Firms can obtain a competitive advantage
by the following four ways: Changing prices, improving product differentiation, creatively
using channels of distribution and exploiting relationships with suppliers. The rivalry in an
industry will be increased with a large number of firms because they are competing for the
same customers and the relatively the same market share. Slow market growth also causes
companies to compete for market share. However, a firm can increase their revenues simply
because of the expanding market. The market for fast food restaurants as mentioned before
are the middle class, upper middle class and the youth segment of the country. The market
can grow based on people getting to the age where they eat the food provided by the
restaurants. The market can also decline with deaths of past customers; generally these
factors will balance themselves out.
Threat of New Entrants
The threat of new entrants varies in the industry depending on whether the new firm is
entering business for an international franchise or opening a new, local restaurant. The costs
for opening an international franchise chain in Bangladesh is significantly higher, thus there
is a high barrier to entry for this industry and franchises like KFC, Pizza Hut are relatively
well protected from the threat of new competition.
For local fast food chains, The threat of new entrants is high.. It is relatively inexpensive to
start up a restaurant. Moreover, it is the experience that sets a particular fast food restaurants
apart from its competition, not solely the food. Thus, if someone can revolutionize the
experience, it would be extremely easy to enter into the fast food segment. This is perhaps the
biggest reason fast food restaurants must take note of any potential competition that could
threaten their business.
Threat of Substitute Products
The biggest threat for substitutes in the fast food industry in Bangladesh is the alternative of
eating at home. Moreover, more high-end, posh restaurants that do not fall in the fast-food
category are also substitutes for fast food chains. The fast food restaurant can compete with
more high-end restaurants because they offer cheaper prices. In tough economic times,
consumers might shy away from restaurants and turn to purely eating at home or fast food
restaurants. Fast food restaurants still maintain the advantage because they offer better food
preparation and quality, as well as a more casual dining lounge.
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 Café 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 Distant Competitors
Market Leader Barista Lavazza Coffee World
Market Follower Cuppa Coffee Coffee 11
Market Nicher Bitter Sweet cafe
Nestle Café Mango Smoke Café 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 WorldCoffee 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 café.
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 café.
Bitter Sweet Café It is a café specifically known for its portfolio of desserts and designer drinks. The desserts
are one of a kind and are not available anywhere else in the city.
Pricing Strategy The café uses product quality leadership pricing strategy where it uses high price for
serving high quality product.
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 café concentrates on more usage as it educates its clients about current offerings via its
facebook page.
Marketing strategy Follows niche marketing strategy and primarily concentrates finding customers who are
willing to pay very high price for premium products
SECTION 1: Marketing Mix
Product
Product-Mix WidthHot Drinks/ Espresso Cold
Drinks/ Chillers
Take-home Beans/ Capsules
Merchandise
Classics Specialties Tea Hot Chocolate
Extra
Product- Line Length
Cappuccino Caffé Mocha
Hot Tea
Classic Hot Chocolate
Espresso Shot
Espresso Chillers
Regional Beans
Knock Box
Caffé Latte Caramelatte Chai Tea Latte
White Hot Chocolate
Flavor Syrup Mocha Chillers
Capsules Rosetta Mug
Espresso (Short Black)
Very Vanilla Latte
Creamy Hot Cocoa
Whipped Cream
Gourmet Iced Chocolate
Travel Mugs
Macchiato Crème Brûlée Latte
Strawberry White Chocolate
Milk Fruit Chillers
Shaker
Freshly Brewed Coffee
White Chocolate Mocha
Decaffeinated Coffee
Gourmet Chillers
Plunger
Table: Product-Mix and Product Line Length for Gloria Jean’s Coffees Bangladesh
Product-Mix WidthHot Drinks/ Espresso Cold
Drinks/ Chillers
Take-home Coffee Beans
Merchandise
Classics Specialties Tea Hot Chocolate
Extra
Product Line-length
Caffé Americano (Long Black)
Hazelnut Mocha
Iced-blended drinks (Over Ice)
Coffee Filter
Irish Nut Crème
Grinder
MinicinoBabycino
Table: Product-Mix and Product Line Length for Gloria Jean’s Coffees Bangladesh (continued)
In-depth Product Description
Core Benefit
Gloria Jean’s Coffees (GJC) Bangladesh is a coffee specialist passionately committed to
creating the ultimate coffee experience for every guest residing in Dhaka city from bean, to
cup.
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.]
Caffé 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.]
Caffé 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:
Caffé 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 Caffé 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.]
Crème Brûlée Latte
It will be offered both in small (352 mL) and regular (443 mL) serving size. In the deep,
Crème Brûlée 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 Crème
It contains a magical mix of Irish Crème 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.
CHILLERS/ ICE BLENDED COLD DRINKS
Espresso Chillers
Espresso Chillers section will offer the following items:
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.]
Crème Brûlée
In the deep satisfying Creme Brulee Chiller, fragrant green tea is combined with Crème
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 non-
dairy 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 Jean’s 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.]
TAKE-HOME COFFEE BEANS AND CAPSULES
Aside from drinks, there will be a wide array of take-home coffee bean packages. The
baristas at Gloria Jean’s Coffees are well-trained to assist and give instructions on how to
brew coffee at home (e.g., French Press (Plunger) brewing guide, Stovetop Espresso brewing
guide, Drip Filter brewing guide etc).
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 Jean’s. 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
GJC’s 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 Jean’s
Coffees range of drinks on the go.
[Please see Appendix for actual product.]
PackagingGJC 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 Jean’s
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.]
WarrantyIf 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 ServiceJuggling 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.
Unique Selling Proposition (USP)Gloria Jean’s coffee is famous all over the world. For over twenty five (25) years, its passion
for quality has made it a leader in gourmet flavored coffees, origins and blends. At GJC
Bangladesh outlet in Dhaka, it will be committed to making same ultimate coffee experience
– ‘Handmade Heartfelt’ for every guest from bean to cup.
The GJC difference will be a true dedication to handmade coffee—from hand picking 100%
highest quality Arabica coffee beans to handcrafting each individual cup. Using only the
highest quality Arabica beans, carefully sorted and expertly roasted on the premises, it will
guarantee the quality and freshness of its coffee in Dhaka.
DifferentiationGloria Jean’s 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 Jean’s Coffees journey to make a quality cup of coffee starts with the purchase of
the world’s highest quality Arabica beans, which are hand picked to ensure only the best
beans are selected. Beans are then meticulously roasted at the company’s 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 Jean’s 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 Jean’s 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 Jean’s 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 Jean’s
gourmet coffees.
Due to increasing demand and popularity, Gloria Jean’s began franchising stores in the mid-
1980 to entrepreneurs in the Chicago market who shared their passion for specialty coffees.
Today Gloria Jean’s 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 Jean’s 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 Jean’s
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 StrategyAs presented earlier in the Table: Product-Mix and Product Line Length for Gloria
Jean’s 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 Small Regular
ClassicsCappuccino/ Caffe Latte BDT 152 BDT 191Caffe Americano 139 174Espresso/ Machiato 139Coffee of the day 139 174
SpecialtiesCaffe Mocha/ Caramelatte 200 252Very Vanilla Latte/ Crème Brule Latte
200 252
Irish Nut Cream 226 278Minicino 80Babycino No Extra Charge
Tea
Hot Tea 130 174Chai Tea Latte 148 191
Items Small RegularHot Chocolate
Classic Hot Chocolate/ White Hot Chocolate
174 217
Strawberries White Chocolate
276 370
Extras
Espresso shot/ Flavored Syrup/ Whipped Cream
70
Soy Milk/ Skim Milk/ Imported Full Cream Milk/ Decaffeinated Coffee
50
Value Added Tax Extra **[Please see ‘Pricing’ section of Appendix for details]
Chillers or Cold Drinks:Items Small Regular
Espresso Chiller
Very Vanilla Chiller/ Crème Brulee
BDT 252 BDT 296
Voltage 252 296
Mocha Chiller
Cocoa Loco/ Cookies ‘n Cream
278 313
Hazelnut Mocha Chiller 278 339
Gourmet Iced Chocolate
Original Iced Chocolate 252 296White Iced Chocolate/ Strawberries ‘n Cream
252 296
Strawberry White Chocolate Chiller
320 450
Fruit ChillersMango, Strawberry, Mixed Berry
252 296
Items Small Regular
Gourmet Chillers
Strawberry, Mixed Berry, Mango
287 322
Over ice
Signature Iced Coffe 252 296Iced Americano 174 217Iced Tea (Lemon Lychee/ Peach)
174 217
Italian Soda 174 217Water (Imported) 165Water (Local) 15
Value Added Tax Extra **[Please see ‘Pricing’ section of Appendix for details]
Pricing strategyGJC 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).
DistributionGJC 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).
PromotionGloria Jeans will hardly do any advertising due to its enormous brand reputation contributed by the
company’s 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 Jean’s 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 Jen’s Coffe Mugs.
SECTION 2: Finance Evaluation
Sales ForecastConservatively, we are forecasting an average of 300 customers per day during the first year
with average guest check expenditure for all items of BDT 328. This figure was arrived at by
surveying the customer traffic at the nearest competing coffeehouses which have a range of
150 - 500 customers per day and an average customer expenditure of BDT 328. We have
estimated our customer expenditure to be slightly higher (2.5%) due to the premium price we
will charge for some of our items. Total cost of sales is approximately 25%.
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.
[Please see Financial Evaluation section of Appendix for calculation]
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 BDT 2,753,760
Assumptions:
Average Percent Variable Cost 23%
Estimated Monthly Fixed Cost BDT 2,112,720
[Please see “Financial Evaluation” section of Appendix for details]
SECTION 3: Implementation
Implementation Timeline
Key Marketing Plan Start Date
MM-DD-YYYY
End DateMM-DD-
YYYY
Department
Business/Marketing Plan
2/1/2013 4/30/2013
Marketing
Secure Funding 2/1/2013 4/30/2013
Marketing
Secure lease 2/10/2013 4/30/2013
Admin
Secure name licensing 2/10/2013 4/30/2013
Marketing
Marketing plan 2/10/2013 4/30/2013
Marketing
Structure company type
2/15/2013 4/30/2013
Marketing
Develop investor program
2/15/2013 4/30/2013
Marketing
Health Dept. 3/1/2013 5/15/2013
Admin
Select and order furnishings
5/1/2013 6/15/2013
Admin
Site plans 3/1/2013 4/30/2013
Admin
Select construction contractor
3/15/2013 4/15/2013
Admin
Select and order lighting
4/1/2013 5/30/2013
Marketing
Create employee manual
4/1/2013 5/30/2013
Personnel
Alliance with water company
4/1/2013 5/30/2013
Admin
Join Chamber of Commerce
4/1/2013 5/30/2013
Admin
Select cash register system
4/15/2013 5/30/2013
Admin
Business license, etc. 4/15/2013 5/30/2013
Admin
Select paint contractor 4/15/2013 5/30/2013
Admin
Choose paint palette 4/15/2013 5/30/2013
Admin
Select and order 4/15/2013 5/30/201 Marketing
flooring 3Gift items, suppliers, order
4/15/2013 5/15/2013
Marketing
Select pastry supplier 4/15/2013 5/30/2013
Admin
Select equipment supplier
4/15/2013 5/15/2013
Admin
Graphics/brochure design
4/15/2013 5/30/2013
Marketing
Select confection suppliers
4/15/2013 5/30/2013
Admin
Select juice suppliers 4/15/2013 5/30/2013
Admin
Key Marketing Plan Start DateMM-DD-YYYY
End DateMM-DD-YYYY
Department
Credit card companies 4/30/2013 6/15/2013
Admin
Create training program
4/30/2013 6/15/2013
Personnel
Select music system 5/1/2013 6/15/2013
Admin
Install wireless Internet
5/1/2013 6/15/2013
Admin
Hire manager, baristas
7/1/2013 9/15/2013
Personnel
Select business insurance
7/1/2013 7/20/2013
Admin
Design, print stationery
7/15/2013 7/31/2013
Admin
Pre-opening parties 9/1/2013 9/15/2013
Marketing
GRAND OPENING 9/15/2013 9/30/2013
Admin/Marketing
Acheive 700+ daily customers
12/12/2013
1/31/2014
Admin/Marketing
Totals
** TBD= To be determined
Bibliography