Marketing Planning At Just Us Cafes Case Study - Essay Example

?Marketing Planning At Just Us! Cafes Case Study Table of Contents Introduction 3 Internal and External Environment of ‘Just Us’ 4 External Analysis at ‘Just Us’ 4 Internal Analysis 7 Ethical Issues Raised in Case 8 Significance of Product Life Cycle (PLC) 8 Problems Associated With Deleting a Product 12 Enhancing Customer Experience and Expanding Loyal Customer Base 13 Integrating New Media to Promote the Brand 17 Conclusion 20 References 22 Introduction The case study relates to ‘Just Us’ which began its operations in the year 1996 under the Co-operative Association Act. It initiated as one of the earliest fair trade coffee roasters in Canada. ‘Just Us’ evolved as a worker-owned and operated for-profit coffee co-operative that essentially imported, roasted and sold both wholesale as well as retail fair trade, organic coffee brought from fair trade authorised coffee manufacturers from different parts of the world. The main vision of the company is to be one of the leaders in the Fair Trade business focusing upon quality along with professionalism as well as innovation so that all its stakeholders would be benefited to a great extent (Just Us, 2012). Marketing planning at Just Us is significant because it will try to identify the various challenges that the company face and thus in light of the strengths and opportunities faced by the company, it will be aimed to focus upon how the company’s performance can be enhanced (Just Us, 2012). The main objective of the study is to discuss the internal as well as external marketing environment of Just Us. The study will also entail the ethical issues that have been raised in the context of the case study. The significance of product life-cycle concept to Juliet and the problem that can be faced by the company due to deleting a product from the company’s product range will also be discussed in adequate detail. The study will endeavour to offer suggestions to improve the cafe’s performance and provide recommendations on how the company can update its current marketing programme. Internal and External Environment of ‘Just Us’ All the factors within the organisation that affects the strengths and causes weaknesses in an organisation are referred to as internal environment. All the factors outside the organisation that offer opportunities and thus pose threats to an organisation are referred to as external environment (Kazmi, 2008). External Analysis at ‘Just Us’ For the purpose of creating effectual strategies Just Us Cafe needs to examine the external environment in which it tends to operate. The analyses of factors such as competitor analysis, PEST analysis, Porters 5 Forces Model are crucial in this scenario. Competitor Analysis ‘Just Us’ has numerous competitors across the product line in the local market such as Nova Scotia and also in the wider market such as Canada and the US. It is quite important for the company to comprehend the competitors’ resources in order to predict the degree of future threats. Java Factory is found to be one of the significant threats to Just Us. One of the specific competitors of Just Us has been Kicking Horse in the Canadian market. Therefore, it can be stated that competition poses a major threat to the company (Loudyi & et. al., 2009). PEST Analysis It has been evident from the case study that one of the political factors, which has been hindering the successful operations of ‘Just Us’ was certified identification of actual fair trade. There is constant alteration in the economic environment. The case study demonstrates the fact that a few of the competitors are offering partly organic ranges along with mainstream organic coffees. It has been identified that Just Us practices premium pricing strategy. However, in the recent times the companies need to consider the disposable income of the consumers in choosing the products. Therefore, it is quite important for Just Us to be aware of the fact that consumers feeling for one particular product can be impacted by their income, despite how strong they feel regarding fair trade. Source: (College of the Redwoods, 2011) It has been apparent from the case study that the consumers are characteristically young, educated and thus willing to pay a premium for fair trade products. Supporters of the fair trade movement stated that consumers would prefer ethical products if they were informed better. Porter’s Five Forces Model It can be identified from the case study that the threat of new entrants seems to be quite high within the market. The reason behind this fact is that the barriers to entry are quite less and fair trade coffee is famous which makes this industry attractive for the new entrants. Source: (Lima, 2006). It has been apparent from the case study that the income of the consumers tends to play a significant role in the selecting a product. In such circumstances, if the consumers avoid the consumption of the fair-trade products because of the premium prices then they can capture the buyer power and therefore make buyer power high. Threat of substitute products also seems to be higher for fair trade products such as regular tea, coffee and other beverages. The power of the supplier is relatively lower because the industry is based on fair trade coffee. It is a well known fact that the coffee suppliers have been controlled since long time. However, it is because of their eagerness to participate in fair trade that permitted them to gain power. Threat of competition is found to be quite high in this industry. There are lots of competitors both in the local market and over the shelf within the conventional markets. Internal Analysis One of the significant tools that can be utilised in order to measure the internal environment of Just Us is value chain analysis. Source: (Rensselaer Polytechnic Institute, 2012) The primary activities of Just Us are importing of the coffee beans, production process, packaging, coffee shop service itself as well as customer service. It can be observed from the case study that the primary activities of the company are endorsed by the Just Us infrastructure. The company has excellent employees who assist them in attaining the goals of the company. Ethical Issues Raised in Case The ethical issue that has been raised in the case study ascertains that whether Just Us should consolidate its current operations or it must pursue an expansion strategy. Being the marketing manager of the company, joint venture or strategic alliance with its competitors possessing similar values can be the best option for the company. It will assist Just Us with resources and will also help in enhancing the market share in the local market. It will also offer Just Us with scope to expand outside the maritime states. One of the main mottos of joint venture or strategic alliance is to increase the product lines. It is the new product lines that will bestow Just Us with opportunity to earn huge revenues. Significance of Product Life Cycle (PLC) The product life cycle endeavours to study the sales pattern of any product over a certain time period. The product life cycle initiates with the introduction of the product and finishes with its obsolescence and substitution. It can be observed that the type of the life cycle is standard by its nature; however, there may be variations in it at times. The concept of product life cycle attempts to demonstrate the fact that each product passes through the stages such as introduction stage, growth stage, maturity stage and decline stage (Rosselot & Allen, 2000). The introduction stage initiates when a new product is placed for commercial sale. It can be stated that during the introduction phase the sales of a product is quite low. The reason behind this fact is that it takes huge time for a product to reach multiple geographical markets, to convince the wholesalers as well as retailers to purchase the product and to create high awareness of the new product. When a product reaches the growth stage, it is apparent that most of the consumers are well aware of the product and thus the sales of the product tend to rise at an increasing rate. The sales of the product are found to be rising till the product reaches the saturation stage. The saturation stage is the stage when the probable customers for the product tend to decline. When the product reaches the saturation stage, it is often noticed that the sales of the product declines. Maturity stage is the phase when the sales of the product tend to grow, however, the growth rate is quite slow in comparison to the previous stages. During maturity at certain point of time a product reaches its height. Slowly the product enters into the decline period. In this point both the sales and the profitability of the product turn down. The product is withdrawn from the market during this stage (Saaksvuori & Immonen, 2008). Source: (UNT, 2009). It is to be mentioned that the proper understanding of the product life cycle can assist Juliet at comprehending and realising the appropriate time to launch and withdraw a product from the market. It also assists in understanding the position of the product in the market in comparison to its competitor and the success and the failure of the product. It would help Juliet to understand where the product is at present, what may happen in the near future and what strategies are generally appropriate. Proper understanding of the product life cycle can assist Juliet in postponing the required life cycle of a product. For instance, the study of PLC can assist Juliet to increase the maturity phase of a popular product which is highly profitable (UNT, 2009). A few of the scholars have identified the fact that proper understanding of the product life cycle reveals certain vital facts on the basis of which Juliet can prepare her marketing programmes, policies and strategies. In its consequence, product life cycle concept can be comprehended as a crucial forecasting, planning and control tool in the hands of marketers. PLC will assist Juliet in sales forecasting. She will be able to establish ‘cause and effect relationship’ and will be capable of arriving at certain concrete conclusions. PLC generally acts as a predictive tool. Juliet will be capable of resolving most of the issues that the company is facing at a rapid rate. Knowledge of PLC will make her aware of the issues that the product can face at numerous stages of growth, maturity and decline. Therefore, as a consequence, Juliet will be capable of taking necessary steps to improve or modify the existing product or develop an entirely new product that can replace the old one opportunely. Since Just Us deals not only with coffee but with other products as well, therefore in case of such multiple products offering companies, PLC can be considered as an effective control tool. When a few products are concurrently presented in the market, it is obvious that all the products might not be capable of obtaining the same levels of success. A few of the products may perform extremely well while others may not be capable of meeting the expectations of the company. When the company is capable of controlling the position of the product by means of the product life cycle, it specifies the type of alterations that is required in the marketing strategy in order to fully manipulate its potentiality and achieve utmost market share (Day, 1981). Problems Associated With Deleting a Product One of the main advantages of reducing a product from range of products is that a company may be capable to minimise the size of the production facility. Dropping a product from the product range would also signify that the company can eliminate the inventory storage space and material handling equipment associated with the product among others. However, the main downside of this practice is that it will lead to initial reduction in the earnings which is caused by inventory write-offs when it is first implemented, as the number of the product would need reduction (Avlonitis & James, 1982). The other problem associated with the deletion of a product from the product range is that there is likelihood of the product being successful in the near future. After having deleted the product, the company may lose the opportunity to avail the benefits of high sales and revenues that it may have earned by keeping the product in the product range. The other problem that the company may face in deleting the product from the product range is that it may lose a certain section of the loyal customers (Jain, 2009). A company may delete a product from the product range with anticipation that it does not have future prospects. However, those customers who were loyal towards the brand may lose the trust with the company and as a consequence, the company may as well lose “would be” customers for its other ranges of products. Deletion may hamper the product being deleted as well as the other existing products of the company as well. The image of the company can be affected and therefore the sales as well as profitability may decline to a great extent (Bragg, 2011). Therefore, it can be suggested that the marketing managers need to pay due attention towards the strategies that they are adopting because it is a wrong strategy that may create severe harm to the company. Conversely, a well designed and revised strategy can help Just Us to grow in the short run and long run (Avlonitis & Papastathopoulou, 2006). Enhancing Customer Experience and Expanding Loyal Customer Base In the era of competition, it is quite important for the companies to prepare strategies so that significant portion of the potential customers can be attracted towards the products of the company. After having obtained the customers the subsequent logical step followed by a company is customer retention (Sheth & et. al., n.d.). Aiming only at new customer acquisition cannot be considered as a viable option for the company. It is a well known fact that the behaviour of the customers is volatile and poorly targeted. Therefore, it is significant for Just Us to comprehend individual customer behaviour as well as customer segments. Doyle and Stern proposed the following framework for improving the performance of the brand. The figure below helps to understand the framework clearly: Source: (McPhee, 2011) For Just Us, it would be recommendable to reposition the brand. It would also be better for the company to cut costs by evaluating their value chain. During the process of repositioning, it will be vital for Just Us to narrate the story related to coffee fair-trade process from initiation to end and to focus more upon the fairness that the company follows in the overall process thereby influencing the brand personality. Brand personality can be comprehended as personification of personality attributes of the consumers in the brand itself. If Just Us is capable of influencing this as part of its offerings, it will be quickly renowned by customers which tend to be quite important. This story telling strategy will assist Just Us to differentiate itself from those of its fair trade rivals and will also help in educating the customers regarding the product of the company which is one of the most important management goals. One of the main threats to win over customers is inside the minds of the customer prior to the customers deciding that they prefer coffee. It is also crucial for the company to adopt a catchy and memorable slogan that reflects their brand personality. The cafe can install WI-FI system in its store so that the business class people can get attracted towards the brand. By installing the WI-FI system in the cafes, the students as well as the business class people will be capable of making use of the internet and will be capable of working in their laptops as well. It is because of the increasing use of the wireless LANs, the data can be easily accessible to the users and therefore it may lead to productive and effective workforce. By installing wireless network in the cafe, the customers will prefer spending prolonged hours with the company. This will help to build loyal customers and thus have an impact upon the sales and profitability of the company. This strategy will attract the youth and the business class people. The company can as well target the children above 10 years old. For this age group, Just Us can bring significant improvements in the product itself. The coffee can be made available with ice-creams so that children and young people get attracted. Offering free chocolates on having purchased a stipulated amount of coffee can be the other strategy followed by the company for the children. Free game zone can be created outside the cafe possessing all the games for the above specified age group children. This strategy will attract children as well as their parents towards the cafe. Children will prefer playing for prolonged hours in the cafe and as a result having coffee will be the best idea for them. A hall can be prepared by the cafe where kitty parties can be arranged by women. Gifts such as caps, pens, diary with the name of the company written can be offered to the loyal customers in order to lure them for next visit. This will not only assist in retaining the existing customers but will also assist in luring new customers towards the cafe. Just Us can collaborate with certain online shopping sites where the customers making purchase of ?500 or above will be offered with a coupon of Just Us. With the coupon, the customers will be capable of redeeming the coupon amounting to 2% of the total purchase made at that particular site and then consume coffee at Just Us. This will help in generating brand awareness and the sales of Just Us can also be enhanced. If Just Us is capable of implementing the above mentioned strategies then it will be capable of enhancing its brand performance and will also be capable of luring significant amount of customers towards the cafe. Furthermore, by implementing the above mentioned strategies the company will be capable of retaining heavy customer base towards a particular product. Integrating New Media to Promote the Brand A marketing strategy is one of the most noteworthy components of any business organisation. The factor to be considered is that a good marketing strategy needs to be linked well with the long-term marketing plan and goals of the organisation. Outdated marketing programme tends to hamper the sales and profitability of the organisation to a great extent. It might as well hamper the reputation of the overall business. It has been apparent from the case study that Just Us did not focus much upon advertising. The company’s management team was not much skilled in the field of advertising and it lacked sufficient funds in order to hire advertising agency. In the past, most of the companies such as Just Us relied heavily upon the traditional media for the purpose of marketing and promotion of the products. However, in the modern day context, there have been significant advancements in the technology and it has become more sophisticated, giving rise to new wave of medium for advertising the products. Currently, new media is one of the most popular fixtures in the strategies of the companies such as Just Us. New media helps to avail the content rapidly. The frequency of communication between the users is almost immediate and the individuals are capable of picking up and replying to a trendy topic. The other benefit that the new media can offer to Just Us is that the company will be capable of creating, publishing and distributing contents from virtually anywhere. The main objective of advertising is to inform or influence one or more persons regarding the products or services that are sold. One of the long-term marketing tools that help in enhancing the brand awareness via television, radio, internet and press is advertising (Horst & et. al., 2008). The case study makes it apparent that Just Us relies heavily upon the public relation channels and therefore it is quite significant for the company to realign its efforts with greater emphasis upon advertising. Focusing upon online advertising in the modern times will be of great advantage to the company. It will assist in attracting significant number of people towards the company’s products. The crucial benefits offered by social media cannot be underestimated. One of the real values offered by social networking sites such as Facebook is strong word-of-mouth marketing. Social networking sites make use of power of friends’ suggestions in order to spread the message to engaged and confined audience. Just Us can create a community related to its brand in Facebook so that it can educate the customers regarding the company and its products. Just Us can also evaluate the life cycle of online community. It can be identified that there are four stages of online community life cycle such as inception, creation, growth and maturity. It is through proper comprehension of the various phases of the life cycle; Just Us can assure the level growth of its online community (Horst & et. al., 2008). It is through proper focus on advertising, the company will be capable of generating more traffic towards the website. For the purpose of attracting significant amount of people towards the website, it is important that Just Us focuses upon making its website interesting. One of the interesting features that can be added into the company’s website is adding of online videos demonstrating the product preparation process from inception to end. By formation of the members club in the online environment, the company will be capable of using electronic newsletters so that it can keep in contact with its existing customers. This form of advertisement tends to be a low cost form of advertisement. The main benefit that Just Us will be receiving in making use of the electronic newsletter to the customers is that it can be distributed in greater quantity at relatively low cost in comparison to other forms of advertising media available. Electronic newsletters can also reach large number of target market. Customer feedback regarding the product also plays a vital role in further improvement of the product. Therefore, electronic newsletters will offer Just Us with an opportunity to gain feedbacks related to innovating the company’s product such as coming up with new flavours or new product lines. The company can also make use of sales promotion in order to encourage the customers to foster quick purchase. Sales promotion tends to have a short-term influence upon the sales of the company. It is crucial that the company rewards its loyal customers so that the sales of the company can be boosted. Samples and coupons can be offered to the customers. Free samples can lead to brand recognition and can have a measurable long-term impact on sales of Just Us. Conclusion Marketing strategies adopted by a company helps in determining the success and the failure of the organisation. Just Us needs to focus upon its strategies and revise them in order to regain the sales and revenues that it earned during the inception of the company. It has been noted that the external environment poses a serious threat on successful operations of a business organisation. Just Us receives strong competition from its competitors. Moreover, the threat of substitute product also seems to be quite high. When the threat of substitute product seems to be high, in such circumstances, it becomes hard for a company to bring significant changes in its products. Just Us needs to reposition its brand for the purpose of recuperating the performance. Furthermore, Just Us needs to focus upon new media such as advertisement with the help of social networking platforms so that it can make the customers aware about its products and services and can attract significant amount of customers at a time at relatively lower cost in comparison to other forms of media of advertisement. Understanding of the product life cycle is quite vital as it assists the companies to identify where their products are in reality. It assists them in preparing strategies so that the performance of the brands can be enhanced. Most of the times, it is noted that the companies prefer deleting product from the product range because of ill-performance of the product. However, they fail to conduct proper sales forecasting for that product. In the near future, the companies face major problems because of the deletion of the product as it hampers the sales and revenues of other product ranges as well. Therefore, due attention needs to be paid by the marketing manager. It is quite important for the companies to meet the needs and the demands of the customers. In order to do so, it must centre upon innovation of the products so that the changing preferences of the customers can be met. Adoption of the new technologies can assist the company to keep itself updated and thus attain the goals of the organisation. References Avlonitis, G. J. & Papastathopoulou, P., 2006. Product and Services Management. SAGE. Avlonitis, G. 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