Just Us! Cafe: Business Analysis

Just Us! Cafe's is the business specialise in food and service industry contain wholesaler and dealer in Nova Scotia, Canada, and United States. Just Us cafe's perspective is "to be always a leading Fair Trade business that develops on quality, professionalism and technology for the advantage of almost all their stakeholders". Their key product is certified Fair trade, organic products and local products which is high quality and sociable and environmental responsibility.

Just Us! Coffee's focus on nique market of promoting good trade. The Moores have preserved a strong determination to educating consumers while building strong brand personality and upholding continuous growth. The primary distribution route of Just Us are in grocery stores, four cafes (two each in Wolfville and Halifax) and distributed products on university or college campuses.

In current situation, the prevailing monetary environment and increasing competition has been issues to the founders. Furthermore, Just Us! Espresso goal to develop their business, as a result, the new difficulties come up from having compete with several big brands for example Starbuck, Mcdonald, Kraft who also introduce the FairTrade certified coffees, or Rainforest Alliances authorized coffees and small espresso shops and new entrants to maintain its brand popularity of its customers.

There are several possible response to those problem such as:

  • Increase ability of branding to make it difficult for new entrants and create different with existing rivals.
  • Using Jv, franchising as an option to increase into new market
  • Using new marketing to increase marketing and customer support.

4 Current Situation Analysis

Positioning is the art work of designing the company's offering and image to occupy a distinctive place in your brain of the prospective market. (Kotler, 2003, pg 308).

4. 1 External Analysis:

In order to build up effective strategies Just Us Cafe's must examine the

external environment in which they operate. I have carried out the following analyses:

  • Pest Analysis
  • Porter's 5 Forces
  • Competitor Analysis

4. 1. 1 Infestations analysis

Political

As highlighted throughout the case, a huge political factor involved in the

industry was the professional recognition of real fair trade and the complete process.

Economic

The financial environment is continually changing so when we can see from the case, some rivals are providing partially organic runs as well as

mainstream organic and natural coffees. JU charges is at a slight premium and in today's environment; disposable income of consumers can play a big role in choosing a product. JU should be aware that a consumers sense toward one product may be influenced by their income, it doesn't matter how strong they experience fair trade.

Social

As mentioned in the case, the overall caffeine experience appears to be a large part of the elegance of JU and competitor's. Any future strategy must be

designed with this 'experience' in mind rather than growing rapidly and

diminishing the knowledge factor.

Technology

Technology is continually growing and JU can seize a substantial advantage by utilizing technology more. JU must examine the improvements technology can make in the manufacturing process and in their advertising.

Environment

The issues of carbon footprint means there are definitely more incentives to buy from local supply rather than international transfer.

Legislation

There is not a specific legal requirement of fairtrade or caffeine in general.

4. 1. 2 PORTER'S FIVE FORCES

Threat of New Entrants: Threat of New Entrants is high within the market as there are very few obstacles to entry and fair trade espresso trends are extremely popular so it is an attractive industry.

Buyer Vitality: "Purchasers threaten a business by forcing down prices, bargaining for higher quality or even more services, and playing competitors against one another" (Dess et al 2004:53). As mentioned in Appendix B-PEST, the customer's income takes on an enormous role in choosing the product therefore if they decide to bypass reasonable trade products as a result of high quality price they can take allot of buyer power, thus making buyer electricity in the industry high.

Threat of Substitutes: There are many substitutes for fair trade coffee on the market such as regular espresso, tea etc however, not only coffees but in the general beverages market e. g. Coca Cola, Drinking water etc. Because of this there is a very high risk of substitutes.

Supplier Vitality: Supplier ability is relatively low as the industry is fair trade coffee. From earlier knowledge, caffeine suppliers were being exploited and extended to produce. It really is simply due to determination to partake in fair trade that they have gained ability. However I still believe that due to the underdevelopment of the producing countries allot of the energy still sits with the buyers.

Competitive Rivalry: Competitive rivalry is relatively high as seen in previous competitor research. There are numerous competitors in the local market and on the shelf within the mainstream marketplaces.

4. 1. 3 Rival Analysis

Competitor

Channels

Locations

No. Shops

Kicking Horse

Coffee Outlets, Gourmet

West Coastline, Canada

N/A

Stores, Restaurants

Quebec & Ontario

Kraft Foods

Stores, Universities

United States

Mainstream

Mainstream

Canada & United States

Mainstream

Nestle

Mainstream

Canada & United States

Mainstream

Lowblaws Private Label

Lowblaws Stores

Canada

Mainstream

Just Us!

Coffee Shops, Colleges,

Gourmet Stores,

Nova Scotia, Quebec &

4 Coffee Retailers & On The

Supermarkets

Ontario

Shelf

Coffee Shop

Halifax, Nova Scotia

1 coffe shop

Java Factory

Coffee Shop

Nova Scotia-Halifax,

3 Espresso Shops

Darthmouth, Upper

Tantallon

Tim Hortens

Restaurant

Nova Scotia General-Wolfville(2), Halifax(21)

170

Second Cup

Coffee Shop & Retailer

Canada Basic, Nova

360

Scotia(6)-Halifax(5)

4. 2 Internal Analysis

4. 2. 1 Main Competence

The Value String is a way that can be used to analyze JU's inside environment. Porter (1980) created a universal value chain model which listed activities that might be within most businesses. These activities can be divided into principal and support activities, which try to create value for customers, whilst exceeding the cost of such activities.

4. 2. 2 Financial Analysis

4. 2. 3 Value chain

4. 2. 4 Geography focus

4. 3 Evaluation

SWOT ANALYSIS

Strength

Just Us! Caffeine Roasters' brand collateral is what drives the business forward. Customers bottom their decision to purchase coffee from Just Us! Espresso Roasters are a symbol of their own private beliefs, demanding honest business methods and quality of product. Just Us! Espresso Roasters image also allures a separate following.

Weakness

Just Us! Caffeine Roasters runs as a co-operative. Not only must they operate to fulfill shareholders expectations, nevertheless they also must operate in a manner that is expected of the prices that the business had preliminary0ly set out with. Jeff and Debra Moore, are bound to setting up a profit while preserving the correct image and practiced that they in the beginning based mostly their company on. Upon going into the next thing of the company's life pattern, Jeff and Debra must maintain functions under strict control of their original company values as they compete keenly against competition that does not show the same prices.

Opportunity

New Rational trade products: With more and more good trade products becoming readily available a huge chance to boost the product stock portfolio is on the horizon for JU

Social Media/Online: The web environment presents JU with an enormous possibility to increase brand recognition, engagement and utilize its dedicated customer's reviews at a very low cost.

Threat

Clarity on Good Trade: A concern highlighted in the case was that of clearness and legislation on fair trade. It really is to be observed that the fair trade term is been thrown around too commonly and applied to every product, thus possibly reducing effect of one of JU's key USPs.

Clouded Concentration: At the moment JU are using multiple channels of distribution, however with various troubles coming a decision needs to be made on a technique. Operating and handling two independent strategies can create a clouded eye-sight within the company and a choice needs to be made on prioritization.

4. 4 Honest issues

"Ethics will be the moral concepts or ideals that govern the activities and decisions of an individual or group" (Gresham 1985). Honest process has been used as rules of business activities and justification of action. The desk below

2

The part JU give attention to in this diagram is moral and legal which will make them more costly than others. The reason for that is they promoting Fairtrade to pay more for suppliers, therefore, the expense of it'll be higher than competitors who are currently not in fairtrade section.

Secondly, as the case study mention, they couldn't use licensing method given that they don't trust the organization who offering JU product would adhere to JU ethical basic principle. It may harm their reputation as well as losing customers.

5 Memo to juliet

5. 1 BCG Matrix

As JU provide various organic and natural products it's important to examine the greater profitable ones and not so profitable to be able to either focus marketing work on weaker products or discontinue them.

The revenue from espresso and drink has the highest ratio in the trade statistics of Just Us! Cafe within the Fairtrade market there may be significant development rates in level in both espresso and tea over a four time period.

Perhaps JU should look at the profitability of the market for others (vouchers) and consider putting less emphasis on it. Since it contributed lowest proportion to the total earnings and even reduction in a single store. However, the present cards, gift container and event tickets in this category may promote all Just Us products.

Benefits of BCG Matrix

The BCG matrix help professionals in source of information allocation among various products. The managers can compare several business units recognise the business offer. This method simplified the evaluation of the merchandise and market by using the market share and expansion rate of products.

BCG has been popular world wide and used for quick respond to the industry. The BCG permits the making of evaluations to be able to measure the growth and development rate of any company against the common growth rate in that specific industry.

In addition, this particular matrix is also enjoyable to use, motivating better decision making. Large organizations that are usually looking for effective decision making can benefit a whole lot from using BCG matrix, especially those seeking better resource management.

Limitations of BCG Matrix

High market talk about will not always brings about high profits. You can find high costs also involved with high market show.

Growth rate and comparative market share are not the only indicators of success. This model ignores and overlooks other signals of success.

At times, dogs can help other businesses in gaining competitive advantage. They can earn even more than cash cows sometimes.

To summarize, it could be seen that even though BCG matrix has many benefits, it might not applied to JU since they feature Fairtrade products, therefore, the price is relatively high as well. Quite simply, high market share and high expansion rate may not provide them with high profit. In addition, your dog products seem to get lower income may as a consequence to high profit margin and has been used to promote others products.

5. 2 Product Life Cycle

Using product life pattern to find the level of products may help to comprehend the earnings of the products offered. Instead of compare the market share and development rate, JU can use product life circuit to understand their products.

Coffee and drinks still on the growing tendency, it demonstrates the products is on the expansion level which need to increase differentiation, improve the products and services while attaining the market shares.

The JU products and Bodum, Lunches, Bakery has been put in maturity stage because the revenue of those are expected to increase slighty equate to Coffee and Beverages.

The other products of JU complied of present card, event seat tickets has low revenue and even damage due to advantages stage. Therefore, it will not be removed from the products range.

5. 3 Financial Analysis

Appendix

5. 4 Geography Concentrated

Appendix

INTEGRATED MARKETING COMMUNICATION

The idea of IMC has been described in 3 ways: a one-voice view where there may be one theme and one image, a point of view which suggests that product, image and consumer behavior is highly recommended simultaneously and a perspective which focuses on the integration of communications disciplines. (Nowak, et al, 1994)

CONSISTENCY

IMC planners, target their attention in two types of steadiness, one voice one look and proper consistency. For example one tone one look, delivers a campaign in which all advertising, sales promotion, sponsorship, publicity and immediate response and program for the two different products have the same appearance and feel. All the media messages strengthen one and the other. (Duncan, 2003)

Renovation of espresso retailers into uniformed device could show customer the uniformity of the business enterprise.

Increase the customer service performance

JU cafe can improve the customer service such as the expert suggestion or customer related services. The nice customer support could enhance the performance and increase turnover.

Improve customer awareness

Events and exhibitions to keep carefully the customer aware and knowledgeable about fair trade and Us products. By provide the opportunity for customer to understand JU character as well as fairtrade, customer can feel more comfortable to come to the restaurant.

Loyal customer base

Promotions such as providing free sit down elsewhere for go back customers.

Loyalty credit cards for existing customer to gather points to switch for gifts or products.

Customer romantic relationships such as email of new products or service or just the news on Fairtrade.

7 STP evaluation and the marketing mix

Market MARKET SEGMENTATION AND TARGETING

Segmentation and concentrating on seek to determine who companies want to reach in order to create brand romantic relationship. Marketing today is in the name of efficiency and efficiency, becoming more focused on smaller but more profitable segments of the market. (Duncan, 2003)

Just us cafe' presently focus on the young people 18-30 who matter about the ethical issues and enthusiastic about Fairtrade. However, that is merely the niche market where the range of customer is small compare to JU opponents.

In order to increase sales, JU need to expand it own segmentation. In other words, JU need to enter in new segment to be able to get more customers. For instance, JU offer to fashion industry such as supplying coffee for catwalk show or JU espresso can offer delivery to office for white collar people.

JU espresso would raise the target since increasing numbers of people outside their age focus interested in drink coffee and ethical issues.

POSITIONING

The setting of the JU espresso need to be uniformed. At this time, there are 4 different location that offer different products and service which will make JU too varied. If new customer come to the caffeine bar they may expected the same service, therefore, JU caffeine should be produced as standard service.

Strategic Marketing Options: Ansoff's Matrix

In the marketplace JU has their existing menu as the existing products which other competition also provide the same kind of products and services. The marketplace is existing. Therefore, JU cafe' have 3 option they could followed.

Market penetration: JU can improve their customer service, refurbish the current location and training employees to increase and improve the customer experience. In addition, they may use new media to market the brand.

Product development: JU will come up with new products which may benefits their current customers such as new formular for caffeine, additional artwork on espresso cream or the new food in their menu.

Market development: JU can use JV to increase their market and showing the risk of investment.

Evaluation of Options: SAF

Option 1: Market penetration

Suitable

In the current situation, Just Us cafe may use this to improve their market share

Yes

Acceptable

This method is satisfactory since JU gets the experience in high grade service.

Yes

Feasible

The fund required is leaner than the other methods

The experience available

Yes

Option 2: Product development

Suitable

In the current situation, Just Us cafe may use this to boost their customers' experience.

Yes

Acceptable

The new products can't be launched immediately given that they need to analyze and development.

No

Feasible

The finance required is high and there is dependence on expertise.

May be

Option 3: Market development

Suitable

In the current situation, Just Us cafe can use this to improve their market share

Yes

Acceptable

This method make JU lose part of the control in new shops.

May be

Feasible

The finance required is medium since it can be tell other enterprise and the chance is shared as well

Yes

8 Implementation

a. Strategic and Marketing Objectives

b. ONLINE MARKETING STRATEGY and Marketing Mix

Advertising

POP materials

Direct Marketing

Web Site

Personal Selling

Exhibitions and Events

Packaging

Sales Promotion

Trade Promotion

Product Placement

Field Marketing

c. Obligations

d. Time Period for Execution

e. Monitoring and Control

f. Come back on Investment

9 Conclusion

Just us cafe' can provide the choice 3 or option 1 since all the option require sufficient finance to launched. The choice 3 seem to be to be more appropriate since JU want to extend the market. Using JV, they can create the alliance with other rival to protect themselves as well as raise the power over new entrant and more powerful competitors. However, they can increase their route for source and B2B market as well as B2C. Besides, JU can also use new marketing such as online business or online network to promote their brand with low cost of maintainance since WWW become more and even more wellknown.

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