Report on Gloria Jean\'s Coffee Bangladesh

REPORT ON

GLORIA JEAN’S COFFEES

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

Md. Asiful Hasan

1787

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 Subject: Submission of the Report on 'Gloria Jean's Coffees Bangladesh'.

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 Jean‘s 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 3.1 Snapshot of the Café Industry in Bangladesh SECTION 4: Market Segmentation and Target Market of GJC Bangladesh

7 7 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 Jean’s 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 Café

14

SECTION 6: Marketing Mix and Strategies 6.1 Product: Brief Information

14 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 SECTION 7: Marketing Challenges faced by Gloria Jean's in Bangladesh

24 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 The purpose of this paper is to examine the current performance of Gloria Jean’s in coffee industry and identifying its problems and challenges in Bangladesh. Gloria Jean’s 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 Jean’s 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

recommends Gloria Jean’s Coffees to comprehensively segment its market and focus more on opening new outlets in crowded areas as potential region. Moreover, the current position in this region must be strengthened to gain competitive edge. It can be done through reevaluating its current franchise strategy, modification in product offering, raising standards, and increase customer awareness.

v

SECTION 1: INTRODUCTION 1.1 Introduction of Gloria Jean‘s Coffee Gloria Jean‘s Coffee is devoted to offering the world‘s highest quality coffee worldwide. Australian owned and locally operated, the Gloria Jean‘s 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.

1.2 Origin of the report This report is originated as a requirement to the fulfillment of the course MKT 202 Marketing Management, a fundamental course of BBA 4th Semester. The report is to be submitted to the course instructor, Dr. Sheikh Mohammad Rafiul Haque.

1.3 Motivation of the Study Today’s 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 Jean’s 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 1.4.1 Main Objective The broad objective of the study is to know Gloria Jean's Coffees Bangladesh and identify its target market.

Page | 1

1.4.2 Sub Objectives     

Analyzing the targeted segment of GJC Identifying the marketing mix of GJC Identifying its major rival and marketing challenges Current problems faced by GJC State some recommendations to overcome its problems and challenges

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.

SECTION 2: Organizational Overview of Gloria Jean's Coffees Bangladesh

2.1 Gloria Jean's Coffees Bangladesh at a glance 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 cafés, 3 international chain coffee shops Gloria Jean’s currently operate in Bangladesh.

Page | 2

Vision To be the most loved & respected coffee company worldwide. Mission Gloria Jean’s 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    

Partnerships based on integrity and trust Commitment to excellence and innovation A culture of joy and passion Belief in people, building & changing lives

2.2 Evaluation of the restaurant Gloria Jean's Coffees won nine awards from 2005 to 2010 (within five years). They are: 2.2.1 Trophy Cabinet: Recent Achievements 

2005



2006



2006



2006



2007



2008



2009

Franchisor of the Year (Price Waterhouse Coopers Excellence in Franchising Awards at the FCA Annual Conference) Franchise Award (American Express Rewards for Excellence, National Retail Association) Supreme Reward for Best Retailer (2006 American Express Rewards for Excellence, National Retail Association) International Franchisor of the Year (World Franchise Council) Franchisor of the Year – Food Category (PWC Excellence in Franchising Awards at the FCA annual conference) Innovation Award (MYOB Excellence in Franchising Awards) International Franchisor of the Year 2009 (FCA International Franchising Award)

Page | 3



2010



2010

Excellence in Marketing Award (FCA Excellence in Franchising Awards) Merit Award International Franchising (FCA Excellence in Franchising Awards)

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

2.4 Product Line at a Glance A. Hot drinks:     

CAPPUCCINO CAFFE LATTE FLAT WHITE CAFFÉ AMERICANO (LONG BLACK) ESPRESSO (SHORT BLACK)

Page | 4

            

MACCHIATO PICCOLO LATTE CAFFÉ 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:            

SIGNATURE ICED COFFEE ICED LATTE (UNSWEETENED) ICED MOCHA VERY VANILLA CHILLER VOLTAGE (EXTREME COFFEE) ORIGINAL ICED CHOCOLATE CREME BRULEE COOKIES 'N CREAM ITALIAN SODA FRUZIE - MANGO FRUZIE - STRAWBERRY FRUZIE – BANANA

C. Merchandise:        

MY PLUNGER & OUR PLUNGER DOUBLE WALL PORCELAIN MUGS RAINFOREST ALLIANCE MUG MY GRINDER KNOCK BOX G-79 DUO ESPRESSO MACHINE COLD SIPPER CUPS CAFE CUPS 500ML

D. Beans and capsules: 

SMOOTH CLASSIC BLEND CAPSULES

Page | 5

            

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 ENTRÉE THAI CHICKEN CAKE GARLIC MUSHROOMS GARLIC BREAD WITH CHEESE BREAKFAST SAUSAGES AND EGGS VEGE BREAKY PANCAKE CEREAL WITH MILK

Page | 6

SECTION 3: Market Profile of Coffees Industries in Bangladesh 3.1 Snapshot of the Café Industry in Bangladesh The café culture is very a recent phenomenon in Bangladesh’s history. Postindependence, there were just a handful of places for eating out, while restaurants in general were just food serving places. Local Chinese restaurants were the only popular places for eating out, family dining and special events. In late 90s, fast food industry had a significant boom in Dhaka as well as other major urban areas. People first got introduced to local pizza and fried chicken chains. During and after 2000, the whole food industry flourished significantly. International restaurant and fast food chains started opening outlets in the country. Dhaka, being the capital, experienced the biggest transformation as many new restaurants and fast food shops have mushroomed, catering to the palate of different consumer segments. The industry witnessed an upward shift in demand over the last decade, with rapidly increasing per capita income, changing consumer taste and altering lifestyle. Massive development in electronic media introduced a complete cultural shift for the entire nation and like most other service oriented industries; this industry also got a major revamp in terms of new consumer generation, increased spending and improvement in consumer's taste and preferences which resulted in tremendous growth in this industry introducing high end restaurants with specialization in one or multiple cuisines followed by the introduction and the rise of the café culture in the country and particularly in Dhaka as unprecedented number of cafés having sprouted up in the key commercial and residential zones of the city. The traditional local tea stalls and canteens still flourish beside these new coffee joints, suggesting that the rise in café culture has not stolen business, rather it’s filling up a massive gap in the market. This café culture is mainly triggered by the growing number of White Collar young professionals and college and university going students. The young professionals like to go to all these cafés for various reasons like business meetings, family hang out with or without children and catching up with friends and colleagues; while the students prefer to go there for dating, hanging out with friends and passing the time while browsing the internet and preparing assignments and presentations. Other than these two groups, there are also people who are just looking for a nice and warm cup of morning coffee that would make themselves ready for the day ahead or a strong one to get refreshed after a day’s hard work while returning home. The most triggering factor behind the rise of this phenomenon has been the flexibility the customers enjoy in a coffee shop like they can spend as much time as they want without being asked to leave or make new orders. Moreover, the environment is vastly different and unique than that of the restaurant environment. It is considered informal but comfortable and cozy. There are

Page | 7

also some cafés which offer Wi-Fi internet connection to the customers which is very much convenient. Furthermore some cafés also broadcast live football or cricket matches which further add to their attractiveness.

SECTION 4: Market Segmentation and Target Market of GJC Bangladesh

4.1 Consumer Segmentation and Targeting The customer portfolio analysis concentrates on the value potential of each customer or group of customers known as segments. Its objective is to assess the customers that the firm wants to market their product. Gloria Jean's is currently using the differentiation – focus strategy which aims to differentiate within a several target market segments.

4.2 Segment Marketing 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 Jean’s 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 Jean’s to shop for clothes or to buy shoes so it can be agreed that most of the market segments of Gloria Jean’s 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 Jean’s. 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.

Page | 8

Family size All family sizes Gender Male, Female Explanation Although Gloria Jean’s 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 Jean’s 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 Jean’s products. Education HSC/SSC, Non graduate, Graduate, Postgraduate Explanation The menus of Gloria Jean’s are all written in English in addition the services offered by Gloria Jean’s 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 Jean’s. 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.

Page | 9

Explanation Gloria Jean‘s 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 Jean‘s 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.

Attitude toward product: Enthusiastic, Positive 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.

SECTION 5: Competitor Analysis Gloria Jean’s 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 Café Mango are well

Page | 10

established local brands and has a large base of loyal customers. This makes the bargaining power of the buyers very high.

5.1 Major Rivals of Gloria Jean’s Coffee 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 Jean’s 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. Close Competitors         

Coffee World Bittersweet Café Beans and Aromas Barista Lavazza Crimson Cup Coffee Cuppa Coffee George’s Café Break café Coffee 11

Distant Competitors     

Nestle Café Mango Coffeelicious Ice Cream Parlors Café Dreek

5.2 Detail Information on the Competitor Providers 5.2.1 Lavazza Barista 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

Page | 11

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 Jean’s as most of its market share is being eaten by Gloria Jean’s. 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.

Page | 12

5.2.3 Cuppa Coffee Cuppa Coffee is a large outlet in on Gulshan Avenue, which primarily targets young office goers and university students to come and try its products. 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. Expanding Total Market The company concentrates on new customers as it uses a massive bill board to attract the new customers. 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 café. 5.2.4 Coffee 11 Coffee 11 is a coffee shop situated in Gulshan 2, it is trying to be a local franchise an plans to open different outlets all over the city. 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 Expanding Total Market It does not have any specific strategy for increasing market share.

Page | 13

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 café. 5.2.5 Bitter Sweet Café It is a café 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 café 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 café 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.

SECTION 6: Marketing Mix and Strategies 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.

Page | 14

6.1 Product: Brief Information Though named as Gloria Jean's Coffees Bangladesh, it serves many other foods including breakfast and fast foods as well as a wide range of variation in coffees and drinks. A unique quality of Gloria Jean's Coffees is its variation in coffees made by it. It provides a menu with various flavored coffees named 'Espresso Bar'. It serves five kinds of drinks named as Classics, Specialties, Hot chocolates, Tea and Extras. 6.1.1 HOT DRINK/ ESPRESSO 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. Caffé 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 Espresso (Short Black) It will be offered only in small (60 ml.) serving size made with Gloria Jean's Special Espresso Blend coaxed to yield the essence of fine coffee. It will be wonderfully intense and aromatic. 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.

Page | 15

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: Classic Hot Chocolate It will be offered both in small (280 ml.) and regular (348 ml.) serving size. It is made with a rich, traditional hot chocolate combined with steamed milk and topped with marshmallows. White Hot Chocolate It is going to be a twist on a classic favorite, blending sweet white chocolate, combined with steamed milk and topped with marshmallows. It will be offered both in small (280 ml.) and regular (348 ml.) serving size Crème Brûlée Latte It will be offered both in small (352 ml.) and regular (443 ml.) serving size. In the deep, Crème Brûlée fragrant green tea is combined with Creme Vanilla and Milk, and then drizzled with Caramel Sauce on top. White Chocolate Mocha It will be offered both in small (263 ml.) and regular (324 ml.) serving size. It is made with sweet, tempting white chocolate, espresso and milk, and topped with whipped cream and chocolate sprinkles. 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. Irish Nut Crème It contains a magical mix of Irish Crème and Hazelnut Italian style syrups, white chocolate, espresso and milk; all beneath a mound of whipped cream and green sprinkles. It will be offered both in small (263 ml.) and regular (324 ml.) serving size.

Page | 16

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. Crème Brûlée In the deep satisfying Creme Brulee Chiller, fragrant green tea is combined with Crème 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.

Page | 17

6.1.3 FOOD MENU BREAKFAST Gloria Jean's breakfast items are as followed: Pancake GJC’s 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 Sun riser’s Sandwich Char-grilled, beef rashers, tomato and cheese in toasted brown bread with butter; served with GJC’s spicy potatoes, pricing BDT 342 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 Bread with Cheese GJC’s Garlic Bread baked with tasty cheese (BDT 174) Garlic Mushroom Spicy Mushroom wedges cooked in olive oil & garlic, served with garlic bread. (BDT 245).

Page | 18

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 Smoked Chicken Sandwich GJC’s smoked chicken, mayo, capsicum & sliced cheese served with brown bread. (BDT 385) Grilled Chicken Sandwich GJC’s grilled chicken fillet with mayo, jalapeno, crispy lettuce & sliced cheese served with white bread roll. (BDT 352) Grilled Vegetables Sandwich (Cold/Hot) Sun – dried tomato & capsicum with grilled eggplant & carrot, black olive & mayonnaise come in a brown roll. (BDT 255) Tuna Sandwich (Cold) Shredded Tuna with sweet mayo, pineapple, sweet corn& iceberg lettuce in brown bread. (BDT 350) Roasted Beef Sandwich Sliced roasted beef with lettuce, jalapeno, slice cheese and mustard mayo on white sliced bread. (BDT 374) BURGERS & WRAP Premium Beef Steak Burger GJC’s premium cut beef, with lettuce, tomato, onion, fried egg, beef rashers & cheese in a burger bun, served with French fries. (BDT 725) Chicken Prego Burger (Contain Nuts) Spicy chicken breast, lettuce, tomato, jalapeno, sliced cheese and GJC’s Prego sauce on a burger bun, served with French fries. (Only available at Gulshan-1 & 2). (BDT 490)

Page | 19

Beef Patty Burger GJC’s beef patty, lettuce, tomato, jalapeno, sliced cheese, sweet mayo and BBQ sauce on burger bun.( Only available at Dhanmondi). (BDT 295) Chicken Patty Burger GJC’s chicken patty, lettuce, tomato, jalapeno, sliced cheese, GJC’s special sauce spread on the burger bun. (Only available at Dhanmondi). (BDT 269) Crispy Chicken Wrap (BDT 561). Pastas Fettuccine Alfredo GJC’s grilled chicken and sliced button mushrooms finished with rich creamy sauce. (BDT 541) Spaghetti Chicken GJC’s 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 GJC’s meat sauce & mozzarella cheese topped with Béchamel 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)

Page | 20

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) Achari Beef With Basmati Rice Boneless beef cooked in spicy Achari sauce with onion and capsicum, served with basmati rice. (BDT 561). Chili Garlic Prawn Prawns cooked in rich creamy sauce and chili flake, served with basmati rice and lemon wedges. (Only available at Gulshan-1 & 2). (BDT 775) Product Strategy As presented earlier, Product Line Length for Gloria Jean’s Coffees Bangladesh, complete menu of hot and cold drinks, espresso drinks, ranging from lanes, cappuccinos, ice-blended chillers, smoothies, specialty teas, and a range of single origins, Mends, estate and flavored whole beans are all going complete a product line. GJC in its Dhaka operation does not follow the similar product strategies that are being followed by all franchise partners all over the world. As it is the first time operation in Bangladesh, the company is not emerging as the full-line company for the time being like the way it does in Australia. It will include more items or perform Line filling gradually over time in its Hot Drinks and Chillers Line.

6.2 Pricing 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).

Page | 21

Page | 22

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 Jean’s 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

Page | 23

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 Jean’s 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 Sippy’s 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.

Page | 24

SECTION 7: Marketing Challenges faced by Gloria Jean's in Bangladesh 7.1 SWOT Analysis SWOT analysis is the analysis of Strength, Weakness, Opportunity and Threats of an industry. SWOT is divided into two categories: Internal factors and External factors. Internal Factors: Strength: This gives the business an advantage over others. Weakness: This places a farm in disadvantage in respect to others. External Factors: Opportunities: External chances to make greater profit or sales. Threats: Element in the environment that could bring trouble for the farm.

7.2 SWOT Analysis for Gloria Jean's in Bangladesh 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:   

Many other quality competitors with less price. High operating cost. Business profit is highly dependent on quality and production of coffee.

Page | 25

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.

7.3 Problems faced by GJC Gloria Jean's Coffees Bangladesh is currently facing a political problem. This is a specific incident taken place on this month – a hostage situation at Holy Artisan Bakery in Gulshan 2, situated quite near to the Gulshan 2 outlet of GJC. It was a terrorist attack with a killing of 20 people who were at the place for the purpose of taking food and recreation. The restaurant is quite alike Gloria Jean's Coffees having the similar target market and environment. This is a threat for the Gloria Jean's Coffee shops as people are now less likely to going to shops like GJC for the fear of another similar attack. This phenomenon has brought GJC a problem in their sales and marketing.

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.

Page | 26

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

Page | 27