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this is what i believe we should be doing first 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. background 2.demography 3.reference group 4. learning theories 5. changing attitude 6. recommendation i believe this should be enuf. cheeerss............ Marketing Plan for Gloria Jean’s Coffees @ Dhaka Prepared by Name ID Cell Phone # E-mail KAZI MOHAMMAD SAAMI ALAM 113-0263- 060 01833330033 [email protected] TANVIR AHMED 102-0462- 560 01710855994 tanvirahmed.raaju@gmai l.com MD. MARUF BILLAH 123-1030- 060 01911760544 [email protected]

BUS 620.Sec 04_ NSU_ Gloria Jean's Coffes Dhaka_ Main Report

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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

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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

PART I- The Consumer and Market Profile

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

PART II- Marketing Strategy

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

1. Marketing Management by Kotler, Keller, Koshy & Jha

2. http://www.gloriajeanscoffees.com.au/About/Products.aspx

3. https://www.facebook.com/gloriajeansjcoffeesbangladesh

4. http://www.gloriajeanscoffees.com/BD/home.aspx