Marketing Analysis of Gloria Jean’s Essay

Australian chocolate Making constancyAustralian chocolate industry continues to mature and surge ahead. Australia has emerged as whizz of the most discerning and profitable chocolate locations in the conception, and the amazing financial figures spent on burnt umber in Australia each year withstand global perceptions that Australians be in a position to judge the merits of dear java. Over the past five years, Australias Cafes and coffee bean Shops industry has demonst run itself to be a complex, highly competitive and successful industry. Industry players fetch benefited immensely from the nations love of feature hot chocolate, which steered the industry through with(predicate) the recent economic downturn, during which it outperformed rival hospitality industries such as restaurants and catering. metier chocolate shops in Australia ar becoming a lucrative sector, as a result of a growing coffee culture and increase franchising opportunities. Australias hefty co ffee alcohol addiction culture has heavily influenced evolution in specialty coffee shops, oddly among the early dayser generation Gloria dung atomic number 18s in Australian MarketGloria blue jeans Coffees is dedicated to offering the worlds highest quality specialty coffee from c exclusivelyplaceed stadium to cup. Australian owned and loc every(prenominal)y operated, the Gloria denims Coffees family now stretches farthermost and wide across the globe, with over 1,000 coffee houses in 39 countries. It is compounding 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 deal to be the most loved and respected coffee community in the world. Gloria denims Coffees was founded by Gloria Jean Kvetko in 1979 in Chicago, USA. 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 located in Irvine, California.In 1995, Nabi Saleh and Peter Irvine, former Managing Director of advertizement 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 internationalistic Pty Ltd the company that holds the right to license Gloria Jeans Coffees in Australia, and purchased the rights to the Gloria Jeans Coffees brand for all other countries from Diedrich Coffee, Inc, with the exceptions of the USA and Puerto Rico. In late 1996, Jireh International Pty Ltd undecided the first Gloria Jeans Coffees break in in Miranda, Sydney, and twain weeks later another in Eastgardens, also in Sydney.These stores were fixed up to test the concept in the Australian market. In early 1998, Gloria Jeans Coffees Australia franchised its first store and within vi years had cleaned 185 stores owned and operated by more(prenominal) than 100 franchisees. In 2003, a franchise opened in Darwin this meant that the brand was now established in e real Australian state and territory. Jireh International Pty Ltd formed a North Ameri eject Affiliate, Praise International North America, Inc. and as of June 14, 2009, the North Ameri butt end 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 personalized service in a vibrant store atmosphere.Objective of ReportThe objective of the report is to identify the corporate and melodic line strategies of Gloria Jeans, its main competitive strengths and the possible threats that Gloria Jeans whiteth orn confront in the future.External Environment abstract of AustralianCoffee Making IndustryMacro Environment (Six segments) compendiumGlobal division Gloria Jeans Coffees has strongly entering into global markets. It has teamed up with six impudently Master Franchise Partners in Saudi Arabia, Taiwan, Bangladesh, Sri Lanka, Oman and Azerbaijan. Gloria Jeans Coffees followers will soon be able to enjoy a handcrafted cup of coffee in these global markets. The groups of consumers are very aflame about brands, especially such global lifestyle brands as Gloria Jeans Coffees.Economic part 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 flexible labor market and a very competitive bank line sector. Gloria Jeans has taken this opportunity as consumers in Australia realise got 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 person customers, where half of the sales came from that particular gender.Political Segment In Australia in that respect are some rules and regulations that were created for the coffee industry, such as the Fair affair Certificate and the rainforest Alliance. Where the Fair Trade certification is an alternative market system designed to give the disadvantaged farmers guaranteed prices for their product while The Rainforest alliance 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 potableing culture has heavily influenced growth in specialty coffee shops, especially among the younger generation. Coffee drinking has become an integral part of the sophisticated lifestyle in Australia and specialty coffee shops have become more than just a place for coffee. This is an advantage for Gloria Jeans to brave out in the Australian market. technological Segment Technological developments in the coffee industry are very limited. Ordering is one area where engine room can be used. Gloria Jeans buys and roasts its own coffees controlling the bear on 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 available at all times.Porters Five Forces AnalysisAccording to Porter, in that location are five forces that determine industry attractor and long-run industry profitability. These five competitive forces are (a) The threat of launch of innovative entrants, (b) The threat of substitutes, (c) The bargaining world-beat er of buyers, (d) The bargaining power of suppliers and (e) The tip of rivalry between existing competitors. The coffee making industry in respect of Porters five forces analysis is given on a lower floor Threat of new entrants There are no barriers to entry in coffee shop market. The cost to set up a new coffee line of work is proportionately lower than those associated with developing new business in other industries. Even the four largest players within this market but have limited market share, totaling not more than 2% of the business. To open a coffee shop usually only requires small amounts of dandy 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. Bargaining power of buyers It is very easy for coffee buyers to consume different coffee and other options. In urban locations, in that respect are numerous opti ons for coffee drinkers. Caf can be located on practically every corner in all major cities in Australia. Additionally a number of restaurants and diners serve coffee, 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 ingress 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 compose littered throughout shopping malls, coffee stalls are ordinarily visible. So we can say that rivalry of competitors is high. Bargaining power of supplier Suppliers cannot influences cafes as much as is possible in other industries. ascribable to the number of cafes in the market, working relationships are often not that close. Coffee beans are a highly traded commodity in both(prenominal) highly- substantial 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 compete much on price differentiation. They essential 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 switch 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. Business 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 subs tituted by instant products that are widely 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 households. Thus threat of substitute is stronger. As a whole Threat of new entrants highschoolBargaining 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 upstandings 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 internationally and have full control over their franchisee. It is trying 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 one million million coffees each month. Gloria Jeans Coffees actually provides an ongoing support for all their franchisee. It is one of a dedicated company that strives and has done countless grounds 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.