Just Us! Cafe: Business Analysis

conscionable Us Cafe Business offline retributory Us Cafes is the company specialise in food and serve manufacturing consist of wholesaler and retail merchant in Nova Scotia, Canada, and join States. Just Us cafes vision is to be a leading Fair workmanship business that descriptors on quality, professionalism and innovation for the benefit of all their stakeholders. Their core crop is certified Fair merchandise, constitutive(a) products and local products which is towering quality and social and environmental responsibility.Just Us hot chocolates accent on nique food product of promoting fair trade. The Moores have maintained a strong commitment to educating consumers while building strong home run identity and upholding constant growth. The main distribution channel of Just Us atomic number 18 in grocery stores, four cafs (two each in Wolfville and Halifax) and distributed products on university campuses.In legitimate situation, the prevailing economic clime and increasing competition has been issues to the founders. In addition, Just Us deep br accept goal to expand their business, consequently, the reinvigo targetd challenges gussy up from having compete with some(prenominal) big brands for example Starbuck, Mcdonald, Kraft who likewise introduce the FairTrade certified coffee beans, or rain forest Alliances certified coffees and small coffee shops and impertinently entrants to retain its brand credit rating of its nodes.There are several possible answer to those problem much(prenominal) asIncrease function of branding to nominate it laborious for new entrants and create the different with existing rivals.Using Joint venture, franchising as an pick to expand into new securities industryUsing new media to increase marketing and guest service.4 Current Situation AnalysisPositioning is the art of designing the companys offering and part 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 blend in. I have carried out the fol low-pitcheding analysesPest AnalysisPorters 5 ForcesCompetitor Analysis4.1.1 PEST analysisPoliticalAs heightslighted throughout the case, a commodious 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 asshole see from the case, some competitors are providing partially innate ranges as salubrious asmainstream organic coffees. JU pricing is at a slight premium and in the current environment disposable income of consumers mint play a tumid role in choosing a product. JU must be aware that a consumers feeling toward virtuoso product may be influenced by their income, regardless of how strong they feel about(predicate) fair trade.SocialAs mentioned in the case, the overall coffe e experience seems to be a large part of the attractiveness of JU and competitors. Any future strategy must bedesigned with this experience in mind rather than expanding rapidly anddiminishing the experience factor.TechnologyTechnology is constantly evolving and JU force out attach a significant advantage by utilizing technology much. JU need to examine the improvements technology can take in the manufacturing process and in their advertising.EnvironmentThe issues of carbon footprint means there are to a greater extent(prenominal) incentives to buy from local supply rather than international import.LegislationThere is no specific heavy requirement for fairtrade or coffee in general.4.1.2 PORTERS FIVE FORCESThreat of natural Entrants Threat of New Entrants is racy within the market as there are very few shutriers to entry and fair trade coffee trends are extremely popular so it is an attractive industry.Buyer situation Buyers threaten an industry by forcing down prices, ba rgaining for higher quality or more(prenominal) services, and playing competitors against each new(prenominal)wise (Dess et al 200453). As mentioned in Appendix B-PEST, the guests 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 apportion 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, afternoon 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 partake in fair trade that they have gained power. besides I still believe that due to the unde rdevelopment of the producing countries allot of the power still lies with the buyers. competitive Rivalry Competitive rivalry is relatively high as seen in previous competitor analysis. There are more competitors in the local market and on the shelf within the mainstream markets.4.1.3 Competitor AnalysisCompetitor bringLocationsNo. ShopsKicking HorseCoffee Shops, bon vivantWest 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 shop chocolate FactoryCoffee ShopNova Scotia-Halifax,3 Coffee ShopsDarthmouth, UpperTantallonTim HortensRestaurantNova Scotia General-Wolfville(2), Halifax(21)170Second cupCoffe e Shop RetailerCanada General, Nova360Scotia(6)-Halifax(5)4.2 Internal Analysis4.2.1 Core CompetenceThe look upon Chain is a manner that can be used to analyze JUs internal environment. Porter (1980) created a generic respect chain sticker which listed activities that could be found in most firms. These activities can be divided into uncomplicated 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 EvaluationSWOT ANALYSISStrengthJust Us Coffee Roasters brand equity is what drives the company forward. clients 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 image also attracts a passionate following.WeaknessJust Us Coffee Roasters operates as a co-operative. Not only must they operate to fulfill componenthold ers 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 natural spring to creating a profit while maintaining the appropriate image and practiced that they initially based their company on. Upon ingress the next phase of the companys life cycle, Jeff and Debra must maintain operations under strict control of their received company values as they compete against competition that does not administer 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 visible 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 prescript on fair tr ade. It is to be seen that the fair trade term is been thrown around too usually and applied to every product, thus potentially reducing effect of one of JUs key USPs.Clouded rivet At the moment JU are using multiple channels of distribution, however with various challenges on the horizon a decision needs to be made on a strategy. Operating and managing two differentiate strategies can create a clouded vision within the company and a decision needs to be made on prioritization.4.4 Ethical issuesEthics are the moral principles or values that rule 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 tabulate below2The part JU focus on in this diagram is ethical and legal which make them more expensive than another(prenominal)s. 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 place who selling JU product would comply with JU ethical principle. It may damage their re designateation as well as losing customers.5 Memo to juliet5.1 BCG MatrixAs JU provide various organic products it is important to examine the more profitable ones and not so profitable in order to either focus marketing parkway on weaker products or discontinue them.The r eventideue 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.mayhap JU should look at the profitability of the market for others (vouchers) and consider placing less emphasis on it. Since it contributed lowest equalizer to the total revenue and even loss in one store. However, the gift cards, gift basket and proceeds tickets in this category may promote all Just Us products.Benefits of BCG MatrixThe BCG matrix military service managers in resource al berth among various units. The managers can compare several business units which 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. full-grown 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 al shipway leads to high profits. There are high costs also involved with high market share.Gro wth 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 competitive advantage. They can earn even more than cash cows sometimes.To sum up, it can be seen that even though BCG matrix has more 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 refuse revenue may due to high profit tolerance and has been used to promote others products.5.2 Product Life CycleUsing product life cycle to encounter the stage of products could help to understand the profit of the products offered. Rather than compare the market share and growth rate, JU can use product life cycle to understand their products.Coffee and drinks still on the growing trend, it shows that the se 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 since 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 o f 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 reply and package for the two different products have the same appearance and feel. All the media messages reinforce one and the other. (Duncan, 2003) refurbishment of coffee shops into uniformed unit could show customer the consistency of the business.Increase the customer service achievementJU cafe 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 advancements 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 name 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 c offee for catwalk show or JU coffee could offer delivery to office for white collar people.JU coffee would increase the target since more and more people outside their age focus interested in drink coffee and ethical issues. stanceThe 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 woof they could adopted.Market perceptivity 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 prom ote 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 lick or the new food in their menu.Market development JU can use Joint proceed to expand their market and sharing the risk of investment.Evaluation of Options SAFOption 1 Market penetration competentIn 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 direct 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 pull away part of their control in new shops.May beFeasibleThe fund required is median(a) since it can be share with other venture and the risk is shared as wellYes8 Implementationa. Strategic and Marketing Objectivesb. Marketing Strategy and Marketing MixAdvertisingPOP materials hire MarketingWeb SitePersonal SellingExhibitions and EventsPackagingSales PromotionTrade PromotionProduct PlacementField Marketingc. Responsibilitiesd. Time Period for Implementatione. Monitoring and Controlf. indemnity 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 protect themselves as well as increase the power over new entrant and stronger competitors. However, they can increase their channe l for supply and B2B market as well as B2C. Besides, JU can also use new media such as online business or online meshing to promote their brand with low cost of maintainance since WWW become more and more wellknown.