Gloria Jeans in Australia Situation Analysis and Marketing Objectives - Case Study Example

Executive Summary Gloria Jeans is a coffee giant which is based in Australia. The coffee giant has grown over the years and has outlets in over 39 countries. The ability of the coffee giant to understand the requirements of the customer has enabled to understand the market better. Gloria Jeans has been able to understand the internal environment and worked on their core strengths. The company has been able to change with time and provide quality coffee suiting different customer requirements. The ability of the coffee giant to have different coffee i.e. both hot and cold has grown its product line and helped to tap customers from all ages. Gloria Jeans has also been able to understand the external environment. The coffee giant has moulded the reforms and laws with the internal environment to ensure maximum customer satisfaction. Thus Gloria Jeans has been able to work on its strengths and grow. There are certain areas like obesity, caffeine and service which they need to work on so that they are able to provide better service and ensure higher customer satisfaction. Table of Contents Introduction 3 Purpose of the report 3 Internal Environment Analysis 3 Background of Gloria Jeans 3 Mission Statement 4 Brand Detail 4 Product Line 4 7P’s of Marketing 4 External Environment Analysis 7 Customer Analysis 8 Competitor Analysis 8 SWOT Analysis 8 Conclusion 10 References 11 Introduction The paper presents a situational analysis of Gloria Jeans which will help to identify the marketing strategy followed by the company. To understand the internal analysis attention has been paid to internal environment, products, customers, external environment and SWOT analysis so that a picture of the marketing requirements can be formulated. Purpose of the Report To identify the internal analysis which will help to look into the marketing strategies adopted by Gloria Jeans To identify the effects of external environment on the working of Gloria Jeans To identify the customer and competitors which will help to identify the areas to be worked upon To arrive at a SWOT analysis highlighting areas which will help the restaurant to grow their business Internal Environment Analysis The analysis of the internal environment will help to understand the core strengths of the company. This will thereby present the direction that Gloria Jeans needs to take in the future so that the reputation and goodwill of the enterprise improves. Background about Gloria Jeans Gloria Jeans is a coffee giant and has its establishment at over 39 countries (Gloria Jeans, 2011). The coffee giant has over 1000 outlets and has grown from a small from a small coffee shop to an international establishment. The coffee chain has an advantage of taste over others which has made it widely renowned. Mission Statement Gloria Jeans mission is to ensure quality, superiority and service over other coffee chain by providing the most varied and delightful coffee. The coffee giant looks towards service as their major constituent and looks to distinguish themselves based on it (Gloria Jeans, 2011) Brand Detail Gloria Jeans has over 1000 establishment and provides coffee to people of all ages at the comfort of the restaurant. The coffee giant has ensured to modernize their coffee chain so that the customers can avail the best facilities and prefer it over others. Product Line Gloria Jeans deals in coffee. The coffee giant provides different types of coffee i.e. both cold and hot depending on the taste of the consumer. The coffee giant has also ensured that both the hot and cold coffee have different variants thereby providing the customers a lot of time to choose from (Gloria Jeans, 2011) 7 P’s of Marketing Understanding the 7P;s of marketing in the service industry will help to understand the manner Gloria Jeans has been able to use and develop its chains and areas which they need to work upon. Product Service plays an important role in every industry and the magnitude of importance increases in case of coffee industry as it is totally service oriented. Service depends on social cultural factors which has an effect on the number of people visiting the coffee chain (Justin, 2008). Gloria Jeans has been able to differentiate them by offering quality service. Also having different variant of coffee in their portfolio has enabled them to offer better quality and have a pool of customers who are regular visitors and are able to grow. Price The coffee chain in the beverage industry offers multiple prices based on the service standard in the country. The coffee chain provides different pricing mechanism which helps to tap customers belonging to different living standard (Justin, 2008). Gloria Jeans has been able to offer different pricing mechanism based on the customer requirements. The pricing mechanism has been based on different sizes thereby enabling them to create a halo effect around product thereby differentiating it from the competitors based on pricing and service (Lance, Katrin & Chiranjeev, 1995) Place This is an important consideration in the service industry. Having the store at the correct place ensures that there is a regular availability of customers. Gloria Jeans has been able to ensure that they have places at different locations which have a regular flow of customers. This is substantiated by the fact that Gloria Jeans has over 1000 establishment worldwide enabling availability of products. Promotion Gloria Jeans has been promoting its chain outlets through different promotional schemes. The coffee giant has ensured service as their main element while promoting the stores. Also in store promotion and having different facilities at the store has ensured that Gloria Jeans is able to differentiate them. The ability of the coffee giant to differentiate the service has helped in their promotional activity. People People constitute an important element in the service industry as they have to understand the requirements of the customer so that they are able to provide quality service. Thus, socio-cultural factors play an important role in identifying customers (Kalyani & Basu, 2006). Gloria Jeans has been able to hire the best talent in the field and ensure a training program so that the requirements and needs of the people are understood and service provided accordingly (City of Melbourne, 2011) Process The manner in which service is delivered helps to ensure customer satisfaction. Gloria Jeans has been able to ensure a process where the customers are asked to order from the menu and then the order is served. An important consideration made by Gloria Jeans in this aspect is that the coffee is delivered at time and ensures satisfaction. The coffee giant also replaces coffee if they are not satisfied with the coffee thus process is an important aspect that is looked into Physical Evidence It is difficult to measure satisfaction in case of service industry due to the intangibility nature associated with it. Gloria Jeans has looked into this aspect and ensure high customer satisfaction. This is physically evident in the number of repeat customer who visits the store regularly highlighting the satisfaction and proper delivery of services. External Environment Analysis Looking into the external factors will help to find out the manner in external factors influences the working of an organization and the different aspect they need to consider while drafting future plans (PEST, 2010) Political Economic Changes in legal laws Decrease in purchasing power Changing policies of the government Increase in bank rate increasing interest on borrowed funds High tax rates Rising inflation reducing the purchasing power of money Future laws Deduction in wages   Changes in tax law Social Technological Change in population size Rising cost due to rapidly changing technology Changing lifestyle Rapidly changing research and development growth Concerns about obesity Increase cost of machinery Rise of health conscious people Increase maintenance cost Customer Analysis Gloria Jeans aims at customers of all ages who are fond of coffee. The coffee giant also looks towards transforming customers who are fond of other beverages towards coffee by offering different variants of coffee. The coffee giant has also looked in factors like obesity and made the required changes so that it suits the requirements of the customers. This has enabled Gloria Jeans to tap customers of all age group. Gloria Jeans has also ensured that they understand the customer behavior while understanding their target market. This has enabled Gloria Jeans to focus on the important aspect of customer behavior and identify their target market as people of all age. This has also helped Gloria Jeans to ensure that they are able to understand the customer requirements accordingly and market themselves. Competitors Analysis Gloria Jeans faces stiff completion from other coffee giants who have been able to differentiate themselves from others based on service. Gloria Jeans faces stiff competition from Starbucks, Café Coffee Day, Barista and similar other stores. All the stores follow a similar business model so service becomes an important element. This makes it important for Gloria Jeans to find out the different areas they can work on so that they are able to grow and ensure a steady flow of customers. SWOT Analysis Conducting a SWOT analysis of Gloria Jeans will help to find the areas of strengths and areas they need to work on in the future. Strength Strong brand name Helps to satisfy the basic need of thirst Having different variant of coffee suiting the needs of each customer Growth in population helping to tap a wider market Increasing outlets as places where the customer base in young and prefers coffee Weakness Increasing cost of marketing making it difficult to promote Coffee after preparation has a limited life thereby making it difficult to transport and serve at homes Increasing concerns about obesity reducing consumption Opportunities Increasing trend shown by youngsters as they prefer places where they can sit and enjoy provides an excellent opportunity (Ferrell, 2002) Increasing the variant and sizes of coffee to suits each customer needs Threats Increasing threat from other players like Starbucks Health issue surrounding the coffee industry due to the presence of caffeine Conclusion Gloria Jeans has thus been able to differentiate itself based on service. The coffee giant has understood the external environment and used it to its advantage by integrating the internal and external environment which has ensure better services. The ability of the coffee giant to understand the customer requirements and mould their services accordingly has helped Gloria Jeans to be grown. This has helped them to grow their customer base and has been successful in providing quality service. References Chawla, A. (2003). Marketing Management for Restaurant Industry. Workshop on Marketing of Educational Institute, Programme and Services City of Melbourne. (2010). Economic and demographic profiles, retrieved on June 20 2011 from Gloria Jeans. (2011). Gloria Jeans Website. retrieved on June 20 2011 from http://www.gloriajeanscoffees.com.au/ PEST. (2010). PEST Gloria Jeans. Research Paper Ferrell, G. (2002). SWOT Analysis for Gloria Jeans. Orland, Dryden Press Kalyani, V. & Babu, P. (2006). Strategies for developing sustainable restaurants brands in Australian market. Sri Krishna School of Management Justin, A. (2008). Beverage Industry. Service Sector Management, Business Week Lance K, Katrin H & Chiranjeev S, 1995, “Brand equity: the halo effect”, European Journal of Marketing Read More