Just Us! Cafe: Business Analysis

average Us coffee bar Business Analysis respectable Us Cafes is the company specialise in food and military service industry consist of wholesaler and retailer in Nova Scotia, Canada, and join States. Just Us coffee bars slew is to be a leading Fair cover business that builds on quality, professionalism and innovation for the benefit of all their stakeholders. Their core product is certified Fair take, ingrained products and local products which is gamy quality and social and environmental responsibility.Just Us coffee berrys focalise on nique commercialise of promoting blank trade. The Moores have maintained a knockout commitment to educating consumers while building strong brand identity and upholding constant growth. The main distribution channel of Just Us are in securities industry stores, four cafs (two each in Wolfville and Halifax) and distributed products on university camp accustoms.In current situation, the prevailing economic climate and increasing comp etition has been issues to the founders. In addition, Just Us Coffee goal to expand their business, consequently, the juvenile challenges arise from having compete with several big brands for example Starbuck, Mcdonald, Kraft who alike introduce the FairTrade certified coffees, or rainforest Alliances certified coffees and small coffee shops and bran-new entrants to retain its brand cite of its clients.There are several possible answer to those problem such(prenominal) asIncrease power of branding to assimilate it difficult for new entrants and create the different with existing rivals.Using Joint venture, franchising as an excerpt to expand into new marketUsing new media to increase marketing and client service.4 Current Situation AnalysisPositioning is the art of designing the companys offering and delineation to occupy a distinctive place in the mind of the target market. (Kotler, 2003, pg 308).4.1 External AnalysisIn order to develop effective strategies Just Us Cafs are required to examine theexternal environment in which they bring. I have carried out the following analysesPest AnalysisPorters 5 Forces contender Analysis4.1.1 PEST analysisPoliticalAs highlighted throughout the case, a large political factor involved in theindustry was the certified recognition of actual fair trade and the whole process.EconomicThe economic environment is constantly changing and as we drop see from the case, some competitors are providing partly organic ranges as puff up asmainstream organic coffees. JU pricing is at a slight premium and in the current environment disposable income of consumers female genitals play a massive role in choosing a product. JU must be aware that a consumers feeling toward superstar product may be influenced by their income, regardless of how strong they feel about fair trade.SocialAs mentioned in the case, the overall coffee go across seems to be a large part of the attractiveness of JU and competitors. Any future strategy mus t bedesigned with this experience in mind rather than expanding rapidly anddiminishing the experience factor.TechnologyTechnology is constantly evolving and JU can seize a significant advantage by utilizing technology more(prenominal). JU needs to examine the improvements technology can make in the manufacturing process and in their advertising.EnvironmentThe issues of carbon footprint means there are more incentives to buy from local supply rather than internationalist import.LegislationThere is no specific legal requirement for fairtrade or coffee in general.4.1.2 PORTERS FIVE FORCESThreat of New Entrants Threat of New Entrants is high within the market as there are very few barriers to entry and fair trade coffee trends are extremely popular so it is an attractive industry.Buyer queen Buyers threaten an industry by forcing down prices, bargaining for higher quality or more services, and playing competitors against each opposite (Dess et al 200453). As mentioned in Appendix B -PEST, the customers income plays a huge role in selecting a product therefore if they decide to bypass fair trade products because of the premium price they can hold allot of buyer power, thus making buyer power in the industry high.Threat of Substitutes There are various substitutes for fair trade coffee in the industry such as regular coffee, tea etc but not only coffees but in the general beverages market e.g. Coca Cola, Water etc. As a result of this there is a very high threat of substitutes.Supplier Power Supplier power is relatively low as the industry is fair trade coffee. From previous knowledge, coffee suppliers were being exploited and continued to produce. It is simply because of the willingness to divvy up in fair trade that they have gained power. However I still believe that due to the underdevelopment of the producing countries allot of the power still lies with the buyers. belligerent Rivalry Competitive rivalry is relatively high as seen in previous competitor an alysis. There are many competitors in the local market and on the shelf within the mainstream markets.4.1.3 Competitor AnalysisCompetitorChannelsLocationsNo. ShopsKicking HorseCoffee Shops, GourmetWest Coast, CanadaN/AStores, RestaurantsQuebec OntarioKraft FoodsStores, UniversitiesUnited StatesMainstreamPG MillstoneMainstreamCanada United StatesMainstreamNestleMainstreamCanada United StatesMainstreamLowblaws Private LabelLowblaws StoresCanadaMainstreamJust UsCoffee Shops, Universities,Gourmet Stores,Nova Scotia, Quebec 4 Coffee Shops On TheSupermarketsOntarioShelfTrident Bookseller CafeCoffee ShopHalifax, Nova Scotia1 coffe shopJava FactoryCoffee ShopNova Scotia-Halifax,3 Coffee ShopsDarthmouth, UpperTantallonTim HortensRestaurantNova Scotia General-Wolfville(2), Halifax(21)170Second formCoffee Shop RetailerCanada General, Nova360Scotia(6)-Halifax(5)4.2 Internal Analysis4.2.1 Core CompetenceThe Value Chain is a method that can be used to crumble JUs internal environment. Po rter (1980) created a generic value chain representative which listed activities that could be found in most firms. These activities can be divided into first and support activities, which aim to create value for customers, whilst exceeding the cost of such activities.4.2.2 Financial Analysis4.2.3 Value chain4.2.4 Geography focus4.3 Evaluation mug up ANALYSISStrengthJust Us Coffee Roasters brand equity is what drives the company forward. nodes base their decision to purchase coffee from Just Us Coffee Roasters are a symbol of their own personal beliefs, demanding ethical business practices and quality of product. Just Us Coffee Roasters form also attracts a demon-ridden following.WeaknessJust Us Coffee Roasters operates as a co-operative. Not only must they operate to fulfill shareholders expectations, but they also must operate in a manner that is expected of the values that the company had initial0ly set out with. Jeff and Debra Moore, are bound to creating a profit while mai ntaining the appropriate image and practiced that they initially based their company on. Upon entering the next phase of the companys life cycle, Jeff and Debra must maintain operations under strict control of their pilot burner company values as they compete against competition that does not share the same values.OpportunityNew Fair trade products With more and more fair trade products becoming readily available a huge opportunity to increase the product portfolio is on the horizon for JUSocial Media/Online The online environment presents JU with a huge opportunity to increase brand awareness, engagement and utilize its loyal customers feedback at a very low cost.ThreatClarity on Fair Trade An issue highlighted in the case was that of clarity and regulation on fair trade. It is to be seen that the fair trade term is been thrown around in like manner ordinarily and applied to every product, thus potentially reducing effect of one of JUs key USPs.Clouded Focus At the moment JU are using ninefold channels of distribution, however with various challenges on the horizon a decision needs to be made on a strategy. Operating and managing two recrudesce strategies can create a clouded vision within the company and a decision needs to be made on prioritization.4.4 Ethical issuesethical motive are the moral principles or values that govern the actions and decisions of an individual or group (Gresham 1985)1. Ethical principle has been used as guidelines of business activities and justification of action. The plank below2The part JU focus on in this diagram is ethical and legal which make them more expensive than otherwises. The reason for that is they promoting Fairtrade to pay more for suppliers, therefore, the cost of it will be higher than competitors who are currently not in fairtrade segment.Secondly, as the case study mention, they couldnt use licensing method since they dont trust the government agency who selling JU product would comply with JU ethical pr inciple. It may damage their re determineation as well as losing customers.5 Memo to juliet5.1 BCG MatrixAs JU put forward various organic products it is important to examine the more profitable ones and not so profitable in order to either focus marketing grounds on weaker products or discontinue them.The receipts from coffee and drink has the highest percentage in the trade figures of Just Us Cafe while in the Fairtrade market there is significant growth rates in volume in both coffee and tea over a four year period. perhaps JU should look at the profitability of the market for others (vouchers) and consider placing less emphasis on it. Since it contributed lowest proportion to the total r in timeue and even loss in one store. However, the gift cards, gift basket and event tickets in this category may promote all Just Us products.Benefits of BCG MatrixThe BCG matrix service managers in resource allocation among various units. The managers can compare several business units whi ch company offer. This method simplified the analysis of the product and market by using the market share and growth rate of products.BCG has been well known world wide and used for quick respond to the industry. The BCG allows for the making of comparisons so as to measure the growth and development rate of a company against the average growth rate in that specific industry.In addition, this particular matrix is also enjoyable to use, encouraging better decision making. Large organizations that are normally in need of effective decision making can benefit a lot from using BCG matrix, especially those seeking better resource management.Limitations of BCG MatrixHigh market share does not always leads to high profits. There are high costs also involved with high market share.Growth rate and relative market share are not the only indicators of profitability. This model ignores and overlooks other indicators of profitability.At times, dogs may help other businesses in gaining competitiv e advantage. They can earn even more than cash cows sometimes.To sum up, it can be seen that even though BCG matrix has many benefits, it may not applied to JU since they offer Fairtrade products, therefore, the cost is relatively high as well. In other words, high market share and high growth rate may not give them high profit. Moreover, the dog products seem to have dismantle revenue may due to high profit margin and has been used to promote others products.5.2 Product Life CycleUsing product life cycle to reckon the stage of products could help to regard the profit of the products offered. Rather than compare the market share and growth rate, JU can use product life cycle to get wind their products.Coffee and drinks still on the growing trend, it shows that these products is on the growth stage which need to increase differentiation, improve the products and services while gaining the market shares.The JU products and Bodum, Lunches, Bakery has been put in maturity stage sinc e the revenue of those are expected to increase slighty compare with Coffee and Drinks.The other products of JU complied of gift card, event tickets has low profit and even loss due to introduction stage. Therefore, it should not be removed from the products range.5.3 Financial AnalysisAppendix5.4 Geography ConcentratedAppendix6 Retail Customer loyalty strategyINTEGRATED MARKETING COMMUNICATIONThe concept of IMC has been defined in three ways a one-voice view in which there is one theme and one image, a perspective which suggests that product, image and consumer behaviour should be considered simultaneously and a perspective which focuses on the integration of communications disciplines.(Nowak, et al, 1994)CONSISTENCYIMC planners, focus their attention in two types of consistency, one voice one look and strategic consistency. For instance one voice one look, delivers a campaign in which all advertising, sales promotion, sponsorship, publicity and direct response and package for the two different products have the same appearance and feel. All the media messages reinforce one and the other. (Duncan, 2003) restitution of coffee shops into uniformed unit could show customer the consistency of the business.Increase the customer service performanceJU coffee bar can improve the customer service such as the expert suggestion or customer related services. The good customer service could improve the performance and increase turnover.Improve customer awarenessEvents and exhibitions to keep the customer aware and informed about fair trade and Just Us products. By provide the chance for customer to understand JU nature as well as fairtrade, customer can feel more comfortable to come to the coffee shop.Loyal customer base onward motions such as giving free cup of coffee for return customers.Loyalty cards for existing customer to collect points to exchange for gifts or products.Customer relationships such as email of new products or service or simply the news on Fairtrade .7 STP analysis and the marketing mix securities industry MARKET SEGMENTATION AND TARGETINGSegmentation and targeting seek to determine who companies want to reach in order to build brand relationship. merchandise today is in the differentiate of efficiency and effectiveness, becoming more focused on smaller but more profitable segments of the market. (Duncan, 2003)Just us cafe currently focus on the young people 18-30 who concern about the ethical issues and interested in Fairtrade. However, that is only the niche market where the number of customer is small compare to JU competitors.In order to increase sales, JU need to expand it own segmentation. In other words, JU need to enter new segment in order to get more customers. For example, JU offer to fashion industry such as giving coffee for catwalk show or JU coffee could offer delivery to office for white leash people.JU coffee would increase the target since more and more people outside their age focus interested in drink cof fee and ethical issues. placeThe positioning of the JU coffee need to be uniformed. At the moment, there are 4 different location which offer different products and service which make JU too diversified. If new customer come to the coffee bar they may expected the same service, therefore, JU coffee should be made as uniform service.Strategic Marketing Options Ansoffs MatrixIn the market JU has their existing menu as the existing products which other competitor also provide the same kind of products and services. The market is existing. Therefore, JU cafe have 3 option they could adopted.Market penetration JU can improve their customer service, renovate the current location and training employees to increase and improve the customer experience. Moreover, they can use new media to promote the brand.Product development JU can come up with new products which may benefits their current customers such as new formular for coffee, additional art on coffee cream or the new food in their menu .Market development JU can use Joint opine to expand their market and sharing the risk of investment.Evaluation of Options SAFOption 1 Market penetrationSuitableIn the current situation, Just Us cafe can use this to improve their market shareYesAcceptableThis method is acceptable since JU has the experience in premium service.YesFeasibleThe fund required is lower than the other methodsThe experience availableYesOption 2 Product developmentSuitableIn the current situation, Just Us cafe can use this to improve their customers experience.YesAcceptableThe new products cannot be launched immediately since they need to research and development.NoFeasibleThe fund required is high and there is need for expertise.whitethorn beOption 3 Market developmentSuitableIn the current situation, Just Us cafe can use this to improve their market shareYesAcceptableThis method make JU lose part of their control in new shops.May beFeasibleThe fund required is average since it can be share with other ven ture and the risk is shared as wellYes8 Implementationa. Strategic and Marketing Objectivesb. Marketing system and Marketing MixAdvertisingPOP materialsDirect MarketingWeb SitePersonal SellingExhibitions and EventsPackagingSales PromotionTrade PromotionProduct PlacementField Marketingc. Responsibilitiesd. Time Period for Implementatione. Monitoring and Controlf. Return on Investment9 ConclusionJust us cafe can offer the option 3 or option 1 since all of the option require sufficient fund to launched. The option 3 seem to be more suitable since JU want to expand the market. Using Joint Venture, they can create the alliance with other rival to harbor themselves as well as increase the power over new entrant and stronger competitors. However, they can increase their channel for supply and B2B market as well as B2C. Besides, JU can also use new media such as online business or online network to promote their brand with low cost of maintainance since network become more and more wellkn own.