MARKETING PLANNING AT JUST US! CAFES
BOARD OF DIRECTORS
I.Executive Summary 3
Introduction 3 II. 5 C Analysis framework 4
Introduction 4 1. Customer Analysis 4 2. Competitor Analysis 6 3. Climate [Context] 8 4. Company 10 5. Collaborators 11 6. Ethical Trading 11
III. Internal Analysis 12
Introduction 12 1. Value Chain Analysis 12 2. BCG Matrix 14 3. Revenue Analysis 15 4. Product elimination 16 5. Social Media 17
IV. Strategic Alternatives 18 1. Joint venture/ Strategic alliance 18 2. Defend current market 19 3. Improve brand performance and expand long term 19
V. References 21
VI. Appendix 22 1. Appendix A: PESTEL analysis framework 22 2. Appendix B: SWOT framework 22 3. Appendix C: Porters 5 forces 23
MESSAGE FROM CHAIRMAN
Introduction This report starts with the analysis of the current and future market situation at Just Us cafes using the 5 C analysis framework. It also highlights ethical trading issues that have laced the company and it postulates some of the remedies that the Industry should adopt to eliminate unethical practices and ensure that all the companies in the Industry are operating on the same playing ground.
The report also uses the BCG matrix to classify and analysis the competitiveness of Just Us cafe products and at the same time alluding some of the strengths and limitations of the matrix. Problems at product deletions are also meticulously considered in the light at concentrating on selling only the products which currently have higher margin of profit in comparison to the other products. The report culminates by making recommendations on how the company can improve its outdated marketing plan by using the 4P's of marketing, using social media such as Facebook and Twitter. usage of free samples of their new products and creating brand value among other measures.
Lastly the report indicates all the appendices used for the purposes at illustration and elaborating some of the key issues opined here. Financial diagrams are also used repeatedly to try and emphasise on some of the fundamentals of marketing and accounting principles.
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II. 5 C Analysis framework
The 5 C analysis is an environmental scan on five key areas; it covers the micro environmental and the macro environmental situation. John Wiley and Sons. Inc, An overview 2005, identity the 4 Cs as Customer Analysis, Competitor Analysis, Climate(Context) Analysis, Company Analysis and some marketers added the 5th C of Collaborators.
1. Customer Analysis
(Busacca, Costabile, Ancarani. 2008) insists that the analysis of value for the customer is critical in the management of cross-industry competition from both a defensive and offensive position. From a defensive position that's prevention of entrance into one's area of activity to adopt mobile defence strategies that build on the early coverage of value gaps is fundamental. This implies a systematic monitoring of the consonance between the perceived performance at existing products and customer's expectation. From the above table, we see that the University market sector is lucrative and prefers what Just Us Coffee has to offer. Therefore they should defend their position so as not to lose some customers to small independent customers are mainly in the community and that could easier extend to include the Universities. And from an offensive position (exploitation of various terms at synergy in order to gain entrance into new markets), to establish critical interactions between different areas of activity by seeking a comprehensive answer to purchase and consumption requirements is very
Type of Customer Served by Location of Customers Preferences
Community based Small independent coffees Canada Consumer coffee and premium quality
Lob-laws supermarket and sober
Kicking horse and Just Us Coffee
Canada New fair trade and Mainstream brands
E-Commerce based Kicking horse and Starbucks
Canada, Europe and United States
Universities Just Us Coffees Canada Organic food and certified trade products
Existing customers Just Us Coffees Canada Certified fair trade products
College Students Kraft food services United States Social conscious
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important. Again, a constant focus on the customer is critical to strengthen and supplement the value proposition. Just Us Coffee could joint venture with Proctor and Gamble as they are an international company, giving instant
access to the U.S.A market and they would share the same ideology. Just Us Coffe could also consider having a strategic alliance with Kicking Horse as they are likely to have
the qualified personnel to assist Just Us to tap the e-based clients and more clients across the globe. But on a closer look Kicking Horse already has a shop
in Halifax and is in direct competition with Just Us Coffee. Moreover they don't promote the idea of certified fair products and they could be a conflict of management in the future.
(Kotler and Armstrong, 2010) opine that
A useful tool for assessing competitor strengths and weaknesses is customer value analysis. The aim of customer value analysis is to determine the benefits that target customers value and how customers rate the relative value of various competitors offers. In conducting a customer value analysis, the company first identifies the major attributes that customers value and the importance customers place on these attributes. Next, it assesses the company's and competitor's performance on the valued attributes.
The key to gain competitive advantage is to take each customer segment and examine how the companys offer compares to that of its major competitors. As shown in the previous Figure, the company wants to find the strategic sweet spot- the place where it meets customers needs in a way that rivals cant. If the company's offer delivers greater value by exceeding the competitors offer on important attributes, the company can charge a higher price and earn higher profits, or it can charge the same price and gain more market share. But if the company is seen as performing at a lower level than its major competitor on some important attributes. it must invest in strengthening those attributes or finding other important attributes where it can build a lead on the competitor." Therefore when Just Us Coffee is selecting competitors, it should find the sweet spot where it meets customers needs in a way that rivals can't.
When selecting competitors the company wants to find the sweet spot where it meets the customers needs in a way that
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2. Competitor Analysis
Competitor Products Sold Customer Base Locations and N. Stores
Fair trade certified?
Second cup Coffee Retailer 6 in Nova Scotia [360 in total]
Tim Horton Fresh coffee, pastries, lunches
Restaurant 170 in total No
Starbucks Brewed coffee, hot chocolate, expresso, teas and other specialities
Coffee shop various across the world
Trident Bookseller Organic coffee Bookshop & Coffee shop
1 in total No
Java factory Organic coffee and fair trade coffee
Coffee shop 9 in total Yes
Just Us Coffee Coffee and tea Cafes and University outlets
various across the world
Kicking horse Coffee and food Shops, food stores and restaurants
United states and Canada
Proctor & Gamble Coffee Direct sales United states and Canada
Kraft food Coffee Stores and University United states and Canada
Nestle Coffee Direct sales United states and Canada
Coburg Coffee Coffee shop Canada Yes
Small Cafes Specialty and premium coffee
Cafes Canada No
MESSAGE FROM CHAIRMAN
From the table above, it is evident that Just Cafe has several competitors and some of them are International companies with shops across the globe like Proctor Gamble, Starbucks and Kicking Horse among others.
(Bergen and Peteraf, 2002), favour a two-step approach to consider competitor analysis. The first step is listing all the competitors, the products they sell and their location. Just Us Cafe can identify all the direct and potential threats. It can strategise to cope with the new entrants. I would suggest that Just Us Cafe perform a Joint Venture with Proctor Gamble as they are in United States and Canada and better still they promote the same ideology of certified fair trade products like Just Us Cafe.
The second step is evaluation of the competitors resources and predicting their next course of action. By looking at how big the competitors are, their financial base and their global trading. Just Us Cafe can be able to strategise, for instance Starbucks has 5 stores in Halifax compared to Just Us Cafe only 2 stores in Halifax, therefore Starbuck pose a significant threat to Just Us Cafe, as they have the financial muscle as wet.
The second stage of the framework model is concerned with the evaluation of the competition's resources and the prediction of rivalry. They discuss how by understanding your competitors resources you can predict the scale of future threats. Therefore for Just Us Cafe they need to understand who they are competing with within the local market and big players entering that market, i.e. Trident only have one shop so Just Us Cafe could in turn be a threat to them. Java factory has one cafe in Halif