ON
GLORIA JEANS COFFEES
Prepared for
Dr. Rafiul Huque
Associate Professor
Institute of Business Administration
Jahangirnagar University
Prepared by
23rd Batch
Institute of Business Administration
Jahangirnagar University
Date of Submission: July 13, 2016
July 13, 2016
Dr. S. M. Rafiul Huque
Associate Professor
Institute of Business Administration
Jahangirnagar University
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 v
SECTION 1: INTRODUCTION 1
1.1 Introduction of Gloria Jeans Coffee 1
1.2 Origin of the report 1
1.3 Motivation of the Study 1
1.4 Objectives 1
1.4.1 Main Objective 1
1.4.2 Sub Objectives 2
1.5 Methodology 2
1.6 Limitations 2
SECTION 2: Organizational Overview of Gloria Jean's Coffees Bangladesh 2
2.1 Gloria Jean's Coffees Bangladesh at a glance 2
2.2 Evaluation of the restaurant 3
2.2.1 Trophy Cabinet: Recent Achievements 3
2.3 Branches 4
2.4 Product Line at a Glance 4
SECTION 3: Market Profile of Coffees Industries in Bangladesh 7
3.1 Snapshot of the Caf Industry in Bangladesh 7
SECTION 4: Market Segmentation and Target Market of GJC Bangladesh 8
4.1 Consumer Segmentation and Targeting 8
4.2 Segment Marketing 8
4.2.1 Geographic 8
4.2.2 Demographic 8
4.2.3 Psychographic 9
4.2.4 Behavioral 10
SECTION 5: Competitor Analysis 10
5.1 Major Rivals of Gloria Jeans Coffee 11
5.2 Detail Information on the Competitor Providers 11
5.2.1 Lavazza Barista 11
Content Page no
5.2.2 Coffee World 12
5.2.3 Cuppa Coffee 13
5.2.4 Coffee 11 13
5.2.5 Bitter Sweet Caf 14
SECTION 6: Marketing Mix and Strategies 14
6.1 Product: Brief Information 15
6.1.1 HOT DRINK/ ESPRESSO 15
6.1.2 CHILLERS/ ICE BLENDED COLD DRINKS 17
6.1.3 FOOD MENU 18
6.2 Pricing strategy 21
6.3 Place 23
6.4 Promotion 24
6.4.1 Advertising 24
SECTION 7: Marketing Challenges faced by Gloria Jean's in Bangladesh 25
7.1 SWOT Analysis 25
7.2 SWOT Analysis for Gloria Jean's in Bangladesh 25
7.3 Problems faced by GJC 26
SECTION 8: CONCLUSION 26
8.1 Conclusion 26
8.2 Recommendation 27
EXECUTIVE SUMMARY
v
SECTION 1: INTRODUCTION
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.
Todays sales of coffee across the globe is rapidly changing in trend as people
changing their preferences from just taking coffee to specialty coffee brands.
As a result, many global brand players in coffee industry have internationally
expanded their operations. It leads to high saturated and very competitive
market. Gloria Jeans as one of the player in this industry also takes part in
this global competition. By maximizing its successful management operation
in Bangladesh it can become a pioneer of coffee industry as an important
contributor to country's economy.
1.4 Objectives
The broad objective of the study is to know Gloria Jean's Coffees Bangladesh
and identify its target market.
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1.4.2 Sub Objectives
1.5 Methodology
1.6 Limitations
With a current market size of over BDT 600 million, 2/3rds of the current
coffee market consists of brewed coffee while instant coffee counts for the rest
of the market. With around 50 cafes supplying to a potential market of 160
million consumers, clearly there is huge untapped market gap.
Among these 50 cafs, 3 international chain coffee shops Gloria Jeans
currently operate in Bangladesh.
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Vision
Mission
Values
Gloria Jean's Coffees won nine awards from 2005 to 2010 (within five years).
They are:
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2010 Excellence in Marketing Award
(FCA Excellence in Franchising Awards)
2010 Merit Award International Franchising
(FCA Excellence in Franchising Awards)
2.3 Branches
A. Hot drinks:
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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SECTION 3: Market Profile of Coffees Industries in Bangladesh
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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.
Market segment consist of customers who share a similar wants and needs, in
the chapter we will try to identify those needs and segment accordingly. Gloria
Jeans primarily serves beverages and light meals which mean its customers
come to eat snacks, drink beverage and have a good time while doing so. No
one comes to Gloria Jeans to shop for clothes or to buy shoes so it can be
agreed that most of the market segments of Gloria Jeans have homogeneous
preferences. Keeping that in mind the following consumer segments are
selected
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
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
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
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Explanation
4.2.4 Behavioral
Occasions: Regular
Explanation:
Gloria Jean's does not sell a luxury or a durable product. So it thrives on
regular usage, Gloria Jean's has positioned itself as a quality product all
across the world which indicates that it will draw customers who are looking
for quality, service and speed. Since it is a non durable goods, Gloria Jean's
will thrive on repeat purchase so usage rate should be medium and heavy.
Gloria Jeans has entered the market as the market challenger and it is
competing with various establishments already operating in the Gulshan and
Dhanmondi area. The pricing strategies and the marketing strategies will be
explained in details in later parts of the report. However it should be noted
that there are quite a few close competitors and numerous distant
competitors. Some of the distant competitors such as Caf Mango are well
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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.
When an industry tends to reach the highest peak of the market world it starts
to make its own rivals, its competitors. Like the very other renowned coffee
shop Gloria Jeans also holds a significant position in the coffee industry.
However, it should be noted that there are some close competitors and distant
competitors as well. This makes the bargaining power of the buyers very high.
Lavazza Barista is a part of MGH group which specifically sells Lavazza coffee
in its outlet. It serves premium coffee and snacks it does not prepare the
snacks or the bakery items rather it outsources them from coopers.
Pricing Strategy
The Company uses more for more pricing strategy where it charges very high
price for beverages.
Value offering
The Company has tried to set its outlets as cozy comfort zone where one can
relax and have beverage. It does not serve meals or specific breakfast options
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but has wide choice of snacks and bakery items. It does not have WIFI
facilities.
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.
The Company concentrates in more usage rather than new customers which is
why it issues loyalty cards to its customers.
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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5.2.3 Cuppa Coffee
Pricing Strategy
The company uses Survival pricing strategy to price its products, as its
products relatively lower priced compared to its contemporaries.
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.
Marketing Strategy
5.2.4 Coffee 11
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. The coffee shop also serves elaborate lunch dinner
menus
It does not have any specific strategy for increasing market share.
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Marketing Strategy
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.
The caf concentrates on more usage as it educates its clients about current
offerings via its facebook page.
Marketing strategy
Marketing Mix
Marketing mix must focus on the product, pricing, promotion, and placement
of item in order to make it successful. Marketing strategies must feature
customer orientation, input, and accessibility in the fight to the top of the
market. Gloria Jean's Coffees Bangladesh is no different. One can recognize
that Gloria Jean's Coffees Bangladesh's primary target market is the upper
and upper mid classes' people in Bangladesh. Gloria Jean's Coffees
understood that the people were making the purchasing decision most likely
based on the place.
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6.1 Product: Brief Information
GJC 'Classic' ranges items that are going to be made from regular Arabica
Evans with double shot. The coffee items within this range are as follows:
Capuccino
It will be offered both in small (228 ml.) and regular (286 ml.) serving size
containing Espresso and steamed milk beneath a thick layer of dense velvety
smooth milk.
Caff Latte
It will be offered both in small (263 mL) and regular (330 ml.) serving size made
with Espresso and steamed milk below a thin layer of smooth silky milk
Tea
Although, it is a Coffee shop but its offerings will not be limited to Coffees only,
as guests who are also the regular tea lovers in the town may pop in anytime.
GJC 'Tea' ranges items that are made from high quality loose leaf. The items
within this range are as follows:
Hot Tea
The pyramid tea bag means that our new high-quality, loose-leaf tea has the
space to expand and brew inside the bag. This segment will offer various
flavors such as English Breakfast Tea, Green Tea, Earl Grey and Peppermint
Tea. Each of the variations will be offered both in small (250 ml.) and regular
(335 ml.) serving size.
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Chai Tea Latte
It is made from black tea leaves with ginger, cardamom, cinnamon and other
spices, sweetened and mixed with steamed milk. It will be served in latte-style
and be offered both in small (228 ml.) and regular (295 ml.) serving size.
Hot Chocolate
GJC Hot Chocolate items are rich, creamy and comforting. The items within
this range are as follows:
Hazelnut Mocha
It will be offered both in small (263 ml.) and regular (324 ml.) serving size. It
blends the divine unity of smooth espresso, lushy chocolate and toasty
hazelnut.
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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.
Espresso Chillers
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.
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6.1.3 FOOD MENU
BREAKFAST
Pancake
GJCs pancake (4 pieces) with maple syrup topped with whipped cream , price
BDT 224
Mexican Breaky
Chicken sausage cooked in spicy tomato sauce, green capsicum, onion, serve
on sliced milk roll with scrambled eggs and mushrooms, pricing BDT 283
Spanish Omelette
Eggs with spring onion, green capsicum, tomato, mushroom and cheese on
toasted white loaf, pricing BDT 265
Big Breakfast
2 slices of bread, chicken sausage, 2 beef strips, and grilled mushrooms,
baked beans served with scrambled eggs. (Only available at Gulshan-1 & 2)
pricing BDT 498
ENTREE
Garlic Mushroom
Spicy Mushroom wedges cooked in olive oil & garlic, served with garlic bread.
(BDT 245).
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Spicy Chicken Wings
Deep fried spicy Chicken drumlets cooked in hot garlic tomato sauce. (BDT
342)
Chicken Lollypop
Marinated lollypop deep fried with bread crumb, drizzled with chili sauce.
(BDT 357).
SANDWICHES
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Beef Patty Burger
GJCs beef patty, lettuce, tomato, jalapeno, sliced cheese, sweet mayo and
BBQ sauce on burger bun.( Only available at Dhanmondi). (BDT 295)
Pastas
Fettuccine Alfredo
GJCs grilled chicken and sliced button mushrooms finished with rich creamy
sauce. (BDT 541)
Spaghetti Chicken
GJCs grilled chicken, seasonal vegetables tossed with olive oil & finished with
red pesto sauce (Contains Nut). (BDT 541)
Spaghetti Bolognaise
Spaghetti tossed with Italian rich meat sauce with herbs and tomato; served
with garlic bread (BDT 541)
Beef Lasagna
Five layered pasta with GJCs meat sauce & mozzarella cheese topped with
Bchamel sauce comes with French fries. (Half/Full) (BDT 510/810)
Aglio e Olio
Spaghetti, cooked with garlic, mushroom, green capsicum, black olive and red
chili flakes, served with garlic breads. (BDT 375)
Mains
Chicken Scaloppini
Chicken breast cooked in rich creamy mushroom sauce served with spicy
roasted potato and mixed vegetables. (BDT 515)
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Rabara Chicken with Basmati Rice
Fresh boneless chicken cubes cooked in rich Rabara sauce with onion and
capsicum, served with basmati rice and lemon wedges. (Contain Nuts)(BDT
434)
Product Strategy
GJC aims to be the product quality leader in the market. Since it offers
specialty coffee or gourmet coffee and strive to be "affordable luxury"- products
or services characterized by high levels of perceived quality, taste and status
with a price just high enough not to be out of consumers' reach (Kotler et al.,
2009, p.376).
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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
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 Cards-
Under 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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SECTION 7: Marketing Challenges faced by Gloria Jean's in
Bangladesh
Internal Factors:
External Factors:
Strength:
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
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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