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Fundamentals of Marketing
Section: - B

Group No: - 5

Names
{1} Osama Sohail
{2} Somia Ibrahim
{3} Arslan Quyyum
{4} Raziah Tajammal

Registration No
L1F08BBAM2005
L1F08BBAM2039
L1S09BBAM2011
L1F08BBAM0017

Submitted to: -

Sir Agha Mehmood Ali

Assignment No: -

Assignments Topic: Current situation


analysis of an organization whose product is a
service.

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Submitted at: - 12 November 2009

Topics of Assignment
7 Ps of services: (a) Product
(b) Price
(c) Placement
(d) Promotion
(e) People
(f) Process
(g)
Physical
Environment/Physical
Evidence
Differentiation/Positioning
Ansoff Matirx
BCG Matrix
SWOT analysis

History of Coffee: The history of coffee has been recorded as far back as the
ninth century. At first, coffee remained largely confined to
Ethiopia, where its native beans were first cultivated by
Ethiopian highlanders. However, the Arab world began
expanding its trade horizons, and the beans moved into
Yemen, where until ca 1700 the major emporium was Mocha,
and thence to North Africa and
were mass-cultivated. From there, the beans entered the Indian and
European markets, and the popularity of the beverage spread.

Origin of the word: The word "coffee" entered English in 1598 via Dutch koffie. This word was created via
Turkish kahve, the Turkish pronunciation Arabic qahwa, a truncation of qahhwat al-bun or
wine of the bean. One possible origin of the name is the Kingdom of Kaffa in Ethiopia,
where the coffee plant originated; its name there is bunn or bunna.
From the above paragraphs, a certain truth is revealed that coffee is actually a drink of
the east not of the west. A certain misconception is found in the subcontinent that coffee is
actually a drink originated from the west while the drink was properly brewed and made by
the Arab traders and Sufis who usually drank the coffee to stay awake for their night
prayers.

Establishment of Gloria Jeans


Gloria Jean's Coffees was founded by Gloria Jean Kvetko in 1979 in Chicago, USA.
Gloria Jean's Coffees began as a small coffee and gift shop in Chicago USA which now
has over 110 locations throughout the U.S. Gloria Jean's Coffees USA is owned by
Diedrich Coffee, Inc located in Irvine, California. In early 1998, Gloria Jean's Coffees
Australia franchised its first store and within six years had opened 185 stores owned and
operated by more than 100 franchisees. In 2003, a franchise opened in Darwin; this meant
that the brand was now established in every Australian state and territory. In 2007 Gloria
Jeans made its first debut at Defense in Lahore.

7 Ps of
Marketing
Product

Price

Placement

Promotion

People

Process
Physical
Evidence

Product: From their brand logo Gloria Jeans Coffee the only product that comes to mind is a hot
cup of coffee brimming with froth. However that is not the case; Gloria Jeans prides itself in
not only making a cup of good quality of coffee, with various flavors and tones, it also
provides cold drinks, tea and bakery food like desserts etc; to not only quench the thirst but
also to satisfy the palette of their customers. All of their drinks are pretty popular but only 2
drinks have made it to the top chart of the drinks list.
Hot: -Cappuccino Flavored Coffee
Cold: -Smoothies and Chillers
Gourme t Food: - Cakes, Apple Pies, Sandwiches and other light snacks.
There are some products who are not the top but are all time favorites of the customers
Christmas Morning Coffee Full roasted blend with undertones sweet.
Pumpkin Spice Coffee This fall favorite returns with our signature taste that resembles pumpkin pie in a cup.
Butter Toffee Coffee
Its a smooth, creamy taste, with a touch of caramel coffee

Price: As compared to the prices of other locally owned Cafes` like Freddys Caf
and Coffee, Tea and Company, their prices are reasonable.

Cafes`

Prices

Gloria Jeans
Coffee, Tea and Company
Freddys Cafe

Rs 200-500
Rs 500-999
Rs 500-999

Placement: This place houses not only students who are there to relax after the tedious hours of
studying, but also business men of any class; but mostly executive class. Usually the real
load comes at night when the days work is done and its time to hang out. Gloria Jeans
has placed its two stores where most people come out and that are Gulberg and Defense
in Lahore.

Promotion:
Gloria Jeans go for promotion parties, news, internet, radio, billboards. They use
magazines as their platform of advertisement. They havent opted for television where
there are millions of viewers to catch the sight of Gloria Jeans but as their target market is
small, that only includes high class, upper lower class and sometimes middle class they
cannot afford to spend money in trying to attain the customers that are not in their target.
They also give free seminars and lectures to students to make them aware that coffee is as
equal a Muslim heritage as tea is.
They offer the following deals to attract customers
*Books and Coffee - Students Discount 10%.
*Ladies Day Out-Discount 15%.
*Midnight Extravaganza-1 small free dink after buying regular drink.

People: -

Background music, people chit chatting combined with the smell and sound of fresh coffee
beans being grounded defines Gloria Jeans visitors. Gloria Jeans has a mixed clientele of
all ages; children come for the delicious desserts and cakes, professionals and busy
executives drop in for a cup of coffee before heading back home in the evening and groups
of fashionable aunties enjoy their little gossip session in a corner of the caf. Students of all
ages visit at Gloria Jean's Coffees outlets not just for group discussions, homework or for
projects but also to hang out and have
fun. Nevertheless, all is good as long as its serving its purpose of giving the people some peace
of mind and entertainment at the same time. There are no waiters to serve the customers.
Customers have to order at the counter and they get their desired food item in five to
fifteen minutes. Almost 400 people visit this caf everyday and the number increases
on special holidays.

Target Segments
Age
Income
Social Class
Gender

Characteristics
25-35 and older. Sometimes children.
Rs 35000-65000
Students, Business and Working Class
Male and Female

Process: The process of making coffee at the counter is simple but the complexity comes when the
coffee has to be imported from the Australian farm itself for Gloria Jeans is a franchise
company and according to standard rule the coffee has to be made exactly the same way
using exactly the same material and procedure. The coffee beans are bought at good rates
from the Rain Forest
Alliance farms. The farmers that arent paid according to the crop become very poor and
thus are not able to produce good quality crop year after year. This alliance was made to
support the farmers by paying good and reasonable prices for quality coffee beans. Following
are the procedures applied to obtain the coffee beans: - Point to be taken that the coffee is
grinded
freshly and powdered coffee like Nescafe is not used to maintain quality of the coffee.

Roasting
Picking of
Coffee Beans

Packaging
Drinking

The customer
then can order his coffee on
the counter and the process
only takes 15 minutes for
the preparation. This whole
process is Self Service, no
waiters are appointed for it
only the coffee makers are
at the counter so that the
customer can feel the true
taste of coffee just by
making his choice on the
counter.

Grinding

Physical Evidence/Environment: The worthy experience begins the moment you step inside Gloria Jeans Coffee as
the strong essence of coffee beans greets you. The whole place is designed in neutral tones,
whether it is the wooden flooring, furniture, paint or even the lamps. Tones of brown
dominate the area giving the caf a casual and warm aura as cafs are meant to be places
where you can relax, read a book or just catch up with friends. The light chocolate brown
walls matched with the blackboard menus on them complete the caf look. Sitting on the
beige and brown sofas looking outside the window makes it the perfect nestling spot. A lot
of sunshine pours in through the French-inspired windows adding to the friendliness of the
place, unlike most dark, mysterious caves Sheesha cafs that have sprouted across the city.
The ambience seems to cater with the orange sofas adding a splash of color against the
warm brick walls; the woodwork gives the
place a complete coffee house look. Rest assured you wont feel uncomfortable while
visiting Gloria Jeans. In addition to it, there is a little gossip session in a corner of the caf
while sipping coffees.

Differentiation/Positioning: There are two types of coffee beans that are mostly used Robusta and Arabica. The
Robusta is used commonly in households and local based Caf. Robusta is not of high
quality; its taste is not as strong as Arabica. Arabica has a strong taste and a lot of hard work
is required to make its yield 2 times in a year while Robusta can produce yields 4-6 times a
year. The only reason why Gloria Jeans is highly recommended by its customers is because
of the tones of the coffee that Gloria Jeans can make. Like tea the tones have a lower, mild
and strong taste that can only be produced by Arabica. Gloria Jeans uses this highly
expensive Arabica beans to produce high quality coffee. Not to mention they are the only
foreign based Caf found in Pakistan. They
do have a competition but only at Gross Competition, meaning with local based Cafs. There is
no Net Competition yet because there are no international based Cafes found in Pakistan.
Gloria Jeans uses which is a body recharger, and their every product from napkins to
plates are from Australia, why to maintain the exact same quality of not only producing
Coffee but also serving it in the exact same quality. Other local based caf use simply Coffee
powder and that doesnt have the same taste as Coffee which is first freshly grounded then
served. The difference here is of quality and positioning is that with that same quality they
can serve different flavors of it.

Ansoff Matrix: -

According to the current situation, there were already many restaurants


besides Cafs that serve coffee, so the entry of Gloria Jeans is no surprise that
it actually entered the current market with the current product i.e. coffee thus
it is a Market Penetration.

BCG Matrix: High

Gr
o
wt
h
rat

Cofe
e

Low
High

Market Share

Low

According to BCG matrix, Gloria Jeans is actually in the Cash Cow sector. Gloria Jeans
come to Pakistan almost 2 years ago, in 2007 and with a large bang it got its reputation
among the elite class of the society as the most excellent Coffee maker. But after its entry,
the market share has escalated but the growth is still negligible. Its because that the class
that they have targeted is considered as Niche sector in Pakistan. Also Pakistan is still a Tea
lover rather than a Coffee Lover. Besides coffee there are still some beverages that people
have considered them as part of their daily lives like Coke, Juices and the like. Leaving
them would be like leaving water, in
literal sense. The most ridiculous problem that remains is that most people consider Coffee
as the Western Style and traditional mindset of the people are not yet ready to accept this
alien drink; although history speaks for itself that Coffees birth was in the Islamic Kingdom
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in 16 century but most people dont know. And so Gloria Jeans is still struggling at the
growth stage.

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SWOT Analysis: 1.Strengths

Backward Integration
International coffee firm
Comparatively low prices
Pioneers in Pakistan

Strengths

Weaknesses

2.Weakness

Culture
Low number of franchises
Catering fit into short range of

Opportunity

Threats

group

3.Opportunity

Growth
Acceptance of the Coffee
Culture

4.Threats

Security
Large number of competitors
Lack of awareness among
people

Red Tape

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