Marketing Analysis of Gloria Jean’s Essay

Australian Coffee Making manufactureAustralian coffee persistence continues to mature and surge ahead. Australia has emerged as one of the most discerning and profitable coffee locations in the world, and the amazing monetary figures exhausted on coffee in Australia each year support global perceptions that Australians atomic compute 18 in a position to judge the merits of good coffee. Over the past five years, Australias Cafes and Coffee Shops industry has show itself to be a complex, highly competitive and successful industry. Industry players have benefited immensely from the nations love of woodland coffee, which steered the industry through the recent economic d proclaimturn, during which it outper make rival hospitality industries such as restaurants and catering. Specialty coffee shops in Australia atomic number 18 becoming a lucrative sector, as a resolve of a growing coffee shade and increasing franchising opportunities. Australias strong coffee drinking culture ha s heavily influenced growth in persuasiveness coffee shops, particularly among the younger generation Gloria denims in Australian MarketGloria denims Coffees is dedicated to offering the worlds highest gauge specialty coffee from bean to cup. Australian owned and locally operated, the Gloria denims Coffees family now stretches further and wide across the globe, with over 1,000 coffee ho intakes in 39 countries. It is combination of passion, commitment to their communities and dedication to delivering the highest quality coffee to their guests that unites their global team in the same Vision to be the most loved and regard coffee accompany in the world. Gloria dungarees Coffees was founded by Gloria Jean Kvetko in 1979 in Chicago, regular army. Gloria Jeans Coffees began as a small coffee and gift shop in Chicago USA which now has over 110 locations throughout the U.S. Gloria Jeans Coffees USA is owned by Diedrich Coffee, Inc situated in Irvine, California.In 1995, Nabi Sa leh and Peter Irvine, former Managing Director of advertising agency DDB Needham, visited the United States to sample the Gloria Jeans Coffees brand. Saleh and Irvine identified the prospect for this brand in Australia, purchasing the international licensing rights from Diedrich Coffee, Inc. They established Jireh International Pty Ltd the company that holds the right to franchise Gloria Jeans Coffees in Australia, and purchased the rights to the Gloria Jeans Coffees brand for all separate countries from Diedrich Coffee, Inc, with the exceptions of the USA and Puerto Rico. In late 1996, Jireh International Pty Ltd overt the first Gloria Jeans Coffees store in Miranda, Sydney, and two weeks later a nonher in Eastgardens, in any case in Sydney.These stores were set up to test the model in the Australian market. In early 1998, Gloria Jeans Coffees Australia franchised its first store and within sextette-spot years had opened 185 stores owned and operated by more than 100 franchis ees. In 2003, a franchise opened in Darwin this meant that the brand was now established in e very(prenominal) Australian state and territory. Jireh International Pty Ltd formed a North American Affiliate, Praise International North America, Inc. and as of June 14, 2009, the North American rights were interchange by Diedrich Coffee to the American Affiliate of the Australian holding company.Vision of Gloria JeansTo be the most loved and respected coffee company worldwide. Mission of Gloria Jeans Gloria Jeans Coffees is committed to building a unified family, consistently serving the highest quality coffee and providing an outstanding and modify service in a vibrant store atmosphere.Objective of ReportThe objective of the report is to aim the corporate and business strategies of Gloria Jeans, its main competitive strengths and the possible threats that Gloria Jeans may abide in the future.External purlieu Analysis of AustralianCoffee Making IndustryMacro Environment (Six segment s)AnalysisGlobal department Gloria Jeans Coffees has strongly entering into global markets. It has teamed up with six upstart Master Franchise Partners in Saudi Arabia, Taiwan, Bangladesh, Sri Lanka, Oman and Azerbaijan. Gloria Jeans Coffees fol humiliateders will shortly be able to enjoy a handcrafted cup of coffee in these global markets. The groups of consumers are very passionate about brands, especially such global lifestyle brands as Gloria Jeans Coffees.stinting Segment Australia has had one of the most outstanding economies of the world in recent years. As a high-growth, low-inflation, low interest rate economy, it is more vibrant than ever before. There is an efficient government sector, a elastic labor market and a very competitive business sector. Gloria Jeans has wadn this opportunity as consumers in Australia have higher disposable income and are willing to spend more.Demographic Segment Gloria Jeans Coffee is currently targeting small market segment, young adults segment, which comprises people age 18 to 25 years old, compared to Starbucks, 15 to 64 years old. Besides that, Gloria Jeans mainly focuses on female customers, where half of the sales came from that particular gender.Political Segment In Australia at that place are most rules and regulations that were created for the coffee industry, such as the Fair Trade Certificate and the Rainforest Alliance. Where the Fair Trade as sound out-mark is an alternative marketing system designed to give the disadvantaged farmers guaranteed prices for their product while The Rainforest adhesion focuses on how farms are managed rather than how products are traded. Gloria Jeans has to follow these rules when they entered into Australian market.Socio-Cultural Segment Australias strong coffee drinking culture has heavily influenced growth in specialty coffee shops, especially among the younger generation. Coffee drinking has perish an integral part of the modern lifestyle in Australia and specialty coffee shops have become more than just a place for coffee. This is an advantage for Gloria Jeans to survive in the Australian market.Technological Segment Technological developments in the coffee industry are very limited. Ordering is one area where technology can be utilise. Gloria Jeans buys and roasts its own coffees controlling the process from the bean to the cup. Therefore it is important for them to know every aspect of the coffee industry to ensure that the products offered by them are top standard quality products and in stock(predicate) at all times. ostiariuss Five Forces AnalysisAccording to Porter, in that respect are five forces that determine industry attracter and long-run industry profitability. These five competitive forces are (a) The threat of entry of new entrants, (b) The threat of rilievos, (c) The bargain authority of buyers, (d) The bargaining power of suppliers and (e) The degree of rivalry between existing competitors. The coffee making industry in respect of Porters five forces analysis is given below Threat of new entrants There are no barriers to entry in coffee shop market. The cost to set up a new coffee business is proportionately lower than those associated with developing new business in other industries. Even the four largest players within this market only have limited market share, totaling not more than 2% of the business. To open a coffee shop usually only requires small amounts of detonator for fixtures, fittings and coffee machines. Baristas and caf trained staff are readily available, and to train new staff does not take long and is not costly.So we can say that it is the high threat of new entrants. dicker power of buyers It is very easy for coffee buyers to consume different coffee and other options. In urban locations, there are numerous options for coffee drinkers. Caf can be located on practically every coign in all study cities in Australia. Additionally a number of restaurants and diners serve coff ee, as do some fast food chains. Individuals can also drink instant coffee or use coffee vending machines. So there is high bargaining power of buyers. Rivalry among competitors As there are a number of competitors in the market, rivalry can be considered to be fairly high. In many instances, competitors operate next door to one another. It is not uncommon for caf strips to surround office complexes and major urban entertainment venues.In more sub urban environments, cafes are still littered throughout shopping malls, coffee stalls are commonly visible. So we can say that rivalry of competitors is high. negociate power of supplier Suppliers cannot influences cafes as much as is possible in other industries. Due to the number of cafes in the market, working relationships are often not that close. Coffee beans are a highly traded good in both essential nations and in the developing world where much of the produce is grown. This leads to an effectively developed and efficient market in the trade of coffee beans. The result is that both originating and whole sale suppliers cannot vie much on price differentiation. They must instead differentiate via the quality of their beans. So we can say that there is weak bargaining power of suppliers.Threat of substitute As mentioned previously, customers are able to throw away to rival cafes at little or no cost. Quite often to use a substitute caf involves walking an additional ten to hundred meters in highly urbanized areas. There are also countless other venues that can be used for social meetings, such as pubs, restaurant and the like. blood meetings can be held at offices or at the venues mentioned above. Coffee is also substituted quite regularly by tea and other caffeine products. It can also be substituted by instant products that are wide available in supermarkets. There are now a number of powdered mock caf options available at different stores. Coffee machines are also more affordable and can be used in house holds. Thus threat of substitute is stronger. As a whole Threat of new entrants toweringBargaining power of buyers StrongRivalry among competitors High Unattractive Industry Threat of substitutes HighBargaining power of suppliers WeakLow Profit PotentialInternal Environment Analysis of Gloria JeansResources of Gloria JeansResources are inputs into a firms production process, such as capital, equipment, and the skills of individual employees, patents, finance, and talented managers. Resources are either tangible or intangible in nature. With increasing effectiveness, the set of resources available to the firm tends to become larger.1. Tangible resources* Financial resources* Physical resources* Technological resources* Organizational resources2. Intangible resources* Human resources* Innovation resources* Reputation resourcesGloria Jeans has to emphasize on both its tangible as well as intangible resources. Gloria Jeans Coffees management team manages to expand their franchises i nternationally and have full control over their franchisee. It is stressful to boost up their franchise revenue and retail sales. There are currently 470 Gloria Jeans stores located in Australia, and they serve more than seven million coffees each month. Gloria Jeans Coffees very provides an ongoing support for all their franchisee. It is one of a dedicated company that strives and has done countless effort in order to make sure that the products they sell have a huge impact on peoples daily lives. They have continuously developed their beverages to look tempting to attract customers. It has a strong brand image for its premium quality and excellent taste.