Gloria Jean's Coffee Bangladesh
Gloria Jean's Coffee Bangladesh
Gloria Jean's Coffee Bangladesh
ON
Prepared for
Dr. Rafiul Huque
Associate Professor
Institute of Business Administration
Jahangirnagar University
Prepared by
Nusrat Shabnam Turna
1768
Meher Jabin
1776
Nabila Rahman
1780
Adiba Fairooz
1781
1787
23rd Batch
Institute of Business Administration
Jahangirnagar University
Date of Submission: July 13, 2016
Sir,
It is our pleasure to submit the research paper on 'Gloria Jean's Coffees Bangladesh'.
We assure you that it is in compliance with what you had instructed us to do.
For the preparation of this paper we have collected relevant information from an
interview with the Head of Marketing of 'Gloria Jean's Bangladesh Team' and various
data from journal, newspapers, reports of GJC and online archives. This report
helped us to gain convenient and very significant knowledge about the coffee industry
in Bangladesh and the position of GJC in the market. While conducting the report,
we have learnt business market development strategies, situation analysis, market
targeting and application of the strategies and evaluation.
We have put our sincere effort to give this report a presentable shape and make it as
informative and precise as possible. We thank you for providing us with this unique
opportunity. If you need any additional information or assistance in the overview of
the report regarding our topic, please ask us.
Sincerely yours,
1768 Nusrat Shabnam Turna
1776 Meher Jabin
1780 Nabila Rahman
1781 Adiba Fairooz
1787 Md. Asiful Hasan
Acknowledgement
At first we want to thank to the Almighty God. After that we would like to
express our deep gratitude to the course instructor of Marketing Management Dr.
Rafiul Huque for his patient guidance, enthusiastic encouragement and
constructive suggestion for this report. I would like to express my gratitude to
all the people involved both directly and indirectly in the preparation of this
report. We also are grateful to those people who gave their valuable time while
being surveyed.
Table of Content
Content
Page no
Executive Summary
SECTION 1: INTRODUCTION
1.4 Objectives
1.5 Methodology
1.6 Limitations
2.3 Branches
7
7
8
4.2.1 Geographic
4.2.2 Demographic
4.2.3 Psychographic
4.2.4 Behavioral
10
10
11
11
11
Content
Page no
12
13
5.2.4 Coffee 11
13
14
14
15
15
17
18
21
6.3 Place
23
6.4 Promotion
24
6.4.1 Advertising
SECTION 7: Marketing Challenges faced by Gloria Jean's in Bangladesh
24
25
25
25
26
SECTION 8: CONCLUSION
26
8.1 Conclusion
26
8.2 Recommendation
27
EXECUTIVE SUMMARY
The purpose of this paper is to examine the current performance of Gloria
Jeans in coffee industry and identifying its problems and challenges in
Bangladesh. Gloria Jeans coffee is one of several coffee retailers that have
internationally expanded their business. The execution of expansion by using
franchising strategy has positioned GJC as one of the important players in the
market. However, the success of Gloria Jeans Coffee in the international
market is just moderate compared to other competitors. In constructing this
paper, a review of relevant journal, newspaper, academic publications, and
online resources were used. Gloria Jean's in Bangladesh is currently facing
some
political
problems
and
challenges
in
the
market.
This
paper
SECTION 1: INTRODUCTION
1.1 Introduction of Gloria Jeans Coffee
Gloria Jeans Coffee is devoted to offering the worlds highest quality coffee
worldwide. Australian owned and locally operated, the Gloria Jeans Coffees 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. Although Gloria
Jean's was originated in Australia in 1996. It currently has more than 1000
coffee houses across 39 markets worldwide, including more than 400 coffee
houses within Australia. It has opened three of its branches in Dhaka,
Bangladesh with the same vision.
1.4 Objectives
1.4.1 Main Objective
The broad objective of the study is to know Gloria Jean's Coffees Bangladesh
and identify its target market.
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1.5 Methodology
It's a qualitative study on Gloria Jean's Coffees Bangladesh. The study is
mainly based on extensive literature review and secondary data. Secondary
data sources were the reports of Gloria Jean's Coffees team and relative
information published in journal, newspaper, academic publications, and
online resources. The only primary data that has been collected is an interview
with Mr. Shafkat Haque, the Marketing Head of Gloria Jean's Bangladesh
team.
1.6 Limitations
The following problems were faced while preparing this report:
Though the report was prepared mainly basing on secondary data, some
data regarding various issues are inadequate.
Same information had contradicting data in various resources.
It was very difficult and consumed few weeks to contact the interviewee,
thus there was lack of time to research on the information provided by the
interviewee.
There are not much previous research done on Gloria Jean's Coffees
Bangladesh so drawing proper reference was difficult.
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Vision
To be the most loved & respected coffee company worldwide.
Mission
Gloria Jeans Coffees is committed to building a unified family who
consistently serve the highest quality coffee and provide outstanding and
personalized service in a vibrant store atmosphere.
Values
2005
2006
2006
2006
2007
2008
2009
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2010
2010
2.3 Branches
Gloria Jean's Coffees have three branches in Bangladesh
House-35,Gulshan Ave, Dhaka 1212
House No 2B, Block- B, Rd No 71, Dhaka 1212
67, GH Heights (1st Floor), Satmasjid Road, Dhaka 1205
CAPPUCCINO
CAFFE LATTE
FLAT WHITE
CAFF AMERICANO (LONG BLACK)
ESPRESSO (SHORT BLACK)
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MACCHIATO
PICCOLO LATTE
CAFF MOCHA
CARAMELATTE
WHITE CHOCOLATE MOCHA
VERY VANILLA LATTE
HOT TEA
CHAI TEA LATTE
CLASSIC HOT CHOCOLATE
WHITE HOT CHOCOLATE
RISTRETTO
BABYCINO
MINICINO
B. Cold drinks:
C. Merchandise:
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CARAMEL INDULGENCE
NICARAGUA SINGLE ORIGIN
RICH DARK ROAST CAPSULES
COLOMBIA SUPREMO
DARK KNIGHT
FRENCH BREAKFAST BLEND
FRENCH VANILLA
HAZELNUT PRALINE
ITALIAN ESPRESSO
NICARAGUA
SPECIAL BLEND DECAF
SPECIAL BLEND
SPECIAL ESPRESSO BLEND
E. Fast food:
BEEF LASAGNA
FETTUCCINE ALFREDO
SPAGHETTI BOLOGNAISE
FUSSILI PRAWN IN PINK SAUCE
SPAGHETTI CHICKEN
ALL'AMATRICIANA
GREEK VEGETARIAN
BURGER
SANDWICHES
SALAD
RICE
STIR-FRIED SEASONAL VEGETABLES
POTATO WEDGES
FRENCH FRIES
ENTRE
THAI CHICKEN CAKE
GARLIC MUSHROOMS
GARLIC BREAD WITH CHEESE
BREAKFAST
SAUSAGES AND EGGS
VEGE BREAKY
PANCAKE
CEREAL WITH MILK
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also some cafs which offer Wi-Fi internet connection to the customers which
is very much convenient. Furthermore some cafs also broadcast live football
or cricket matches which further add to their attractiveness.
4.2.1 Geographic
Dhaka
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 Jean's Dhaka outlets.
4.2.2 Demographic
Age
Under 6 years, 6-11 years, 12- 19 years, 20- 34 years, 35-49 years, 50-60
years, 60+ years.
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Family size
All family sizes
Gender
Male, Female
Explanation
Although Gloria Jeans Coffee shop mainly target the people of age 20 to 34, it
also 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
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
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, Mackintosh PC as a result illiterate people will not be attracted
in Gloria Jeans.
Income
Upper Middle, Upper
Explanation
Products of Gloria Jean's 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.
4.2.3 Psychographic
Innovator, Thinker, Achiever, Experiencer.
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Explanation
Gloria Jeans 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
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.
4.2.4 Behavioral
Occasions: Regular
Benefits: Quality, Service, Speed
User Status: Potential user, First time user, Regular user
Usage rate: Medium, Heavy
Loyalty status: Medium, Strong, Absolute
Readiness stage: Unaware, Aware, Informed, Interested, Desirous, Intending to
buy.
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established local brands and has a large base of loyal customers. This makes
the bargaining power of the buyers very high.
Coffee World
Bittersweet Caf
Beans and Aromas
Barista Lavazza
Crimson Cup Coffee
Cuppa Coffee
Georges Caf
Break caf
Coffee 11
Distant Competitors
Nestle
Caf Mango
Coffeelicious
Ice Cream Parlors
Caf Dreek
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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.
5.2.2 Coffee World
Coffee 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 WIFI 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.
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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 caf.
5.2.5 Bitter Sweet Caf
It is a caf 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 caf 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 caf 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.
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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.
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.
Extra
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.
6.1.2 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.
Crme Brle
In the deep satisfying Creme Brulee Chiller, fragrant green tea is combined
with Crme Vanilla and Milk, and then drizzled with Caramel Sauce on top. It
will be offered in small (352 ml.) and regular (443 mL) serving size.
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 tnL) and regular
(316 mL) serving size.
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6.3 Place
Distribution
GJC stores in Dhaka are more like a gift shop concept than a specialty coffee
outlet. It also includes 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 were offered at its leased outlet at Gulshan Avenue in Dhaka.
Later another outlet in Dhanmondi and the last one in Gulshan 2 has been
opened and serving successfully. However, the expansion plan will be carried
over later depending on consumer demand, competition and market dynamics.
The products are 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 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 assignments. 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 has been a good idea, as more people will patronize the outlets
for usage of Wi-Fi, which indirectly links to purchasing of coffee in the outlet.
There is a separate hangout place for smokers. In addition to that, in case of
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peak period outdoor seating is made available utilizing front yard section
depending on consumer demand. A buzzer system is installed at its Dhaka
outlets. It is 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.
Of course, GJC team will be there to assist the guests as always.
The take-home coffee beans, and capsules and various merchandises are
displayed right at the outlets. The coffees, teas and chillers may only be
ordered using such payment options as cash, Visa, American Express, and
Master Card (Debit/ Credit).
6.4 Promotion
Gloria Jeans hardly does any advertising due to its enormous brand
reputation contributed by the company's exceptional global growth and
industry leading franchise systems.
6.4.1 Advertising
Social Media & Word of Mouth
Using the most popular social networks, a facebook page is created where
consumers shares their experience at Gloria Jean's Coffee. This allows GJC to
establish a public voice and reinforce other communication activities. This
facebook page also informs the customers about their new campaigns, deals
and offers. Moreover, this makes the customers feel a more personal
relationship. This same facebook page gives customers the opportunity of
participating in feedback programs and allows GJC to leverage on word
positive word of mouth.
Frequency Programs
Through its store and official facebook page, customers get the opportunity of
participating in loyalty. These programs include the -Frequent Sippers CardsUnder the Frequent Sippys Cards, three (03) most frequent guests will get the
opportunity of having daily single treat of Coffee/ Chiller for a week.
Using the same Frequency Sippers Card, the top three next (03) frequent
guests will get the opportunity of winning Gloria Jen's Coffee Mugs.
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Gloria Jean's is one of the most unique coffee shops in Bangladesh for its
environment and thus a market leader in the coffee market.
Offers fast services and better environment compared to their competitor.
Attractive brand logo and well designed outlets.
Gloria Jean's Coffee shops are placed at very strategic positions and highly
trafficking areas to attract customers.
Variety of quality coffee with good flavor.
Availability of other drinks, chillers and fast food is a strong side over other
competitors.
Weakness:
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Opportunities:
Gloria Jean's can open more outlets in other elite and crowded areas like
Uttara, Basundhara and Baridhara due to increase in number of coffee
consumers.
Whole bean sale in supermarket.
Co-branding with other food manufacturer.
Sponsoring relevant programs for more promotion.
Threats:
Increase in competitors with less price like Coffee time, Coffeelicious etc.
Brand switching by customers.
Increase in health consciousness is reducing the intake of coffee.
SECTION 8: CONCLUSION
8.1 Conclusion
Gloria Jean's Coffees Bangladesh is a market leader in the new era of coffee
industries. By increasing the number of outlets in potential areas, Gloria
Jean's can become the most profit making coffee shop in Bangladesh. It has a
lot of windows of opportunities opened to broaden its business in Bangladesh.
Through becoming a pioneer in coffees industry, GJC can put a huge impact
on the economy of the country as a new type of business is going to be
developed with the development of GJC as a coffee industry. GJC by increasing
its promotional activities can attract more customers to take their products
and services and thus increase its sales.
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In this report, the targeted segment of GJC is identified and analyzed with a
close view to the customers this shops are designed for. The products are
analyzed with detail information and also the price of products are mentioned
and analyzed. The places of the branches and its promotional activities are
also discussed. Thus this report is reflecting the marketing mix of Gloria
Jean's Coffees Bangladesh. The competitive market of GJC is strong but its not
impossible to stand out among them. Although currently GJC is facing some
challenges, through overcoming these problems Gloria Jean's Coffee can
certainly become the most successful business of coffee shop in Bangladesh.
8.2 Recommendation
Following are some recommendations for Gloria Jean's Coffees Bangladesh to
overcome their challenges
Starting delivery service will help GJC attract new customers and also
overcome the recent problem regarding the region
GJC can open more branches in posh areas like Uttara, Basundhara and
Baridhara to reach more potential customers
GJC should increase promotional activities and use mass media for
advertisements
GJC can introduce tvc as a promotional marketing activity before any other
competitor coffee shop does
Sponsorship of certain events
Introduce personalized loyalty card
Discounted coffee houses at Universities.
Portable coffee houses at multiple days of festivals
Increase security system strength to avoid sudden risky situations occurred
for lack in strength of security system
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