Just Us!

Case study analysis on JUST US! CAFES

SUBMITTED TO: Dr. D.D Swain Professor (Marketing)

SUBMITTED BY:Ajay Pratap Singh PGDM 2012-2014

Following are the results from this paper: 1. professionalism and innovation for the benefit of all their stakeholders”. they facing challenges from having compete with several big brands (ie such as Starbuck.Just Us! INTRODUCTION Just Us! (JU) Café is the leading Fair Trade (FT) coffee cooperative. Market for coffee and tea is in growing. Serving the interests of fair trade producers by developing personal and long term relationships. JU core differentiation is selling FT and organic model which is social and environmental responsibility. As FT market is growing. and United States. who are base their purchase decisions on ethical behavior of companies. 2. Kraft who also introduce the FT certified coffees. Our target segment is mostly those young and educated. JU vision is “to be a leading Fair Trade business that builds on quality. . JU is looking for expanding its current business or developing a new product line to maintain current market share. Mcdonald. compare to sugar and cocoa. or Rainforest Alliances certified coffees) and small coffee shops to retain its brand recognition of its customers who request an unique and appealing products. Meantime. which encourage Just Us! to invest more to expand their market share. say college students and age between 3144 years. premium quality. 3. wholesaler and retailer in Nova Scotia. Canada.

From previous knowledge. It is simply because of the willingness to partake in fair trade that they have gained power. tea etc but not only coffees but in the general beverages market e. Threat of Substitutes: There are various substitutes for fair trade coffee in the industry such as regular coffee. Competitive Rivalry: Competitive rivalry is relatively high as seen in previous competitor analysis. coffee suppliers were being exploited and continued to produce. demanding ethical business practices and quality of product. Weakness Just Us! Coffee Roasters operates as a co-operative. and playing competitors against each other” (Dess et al 2004:53). Supplier Power: Supplier power is relatively low as the industry is fair trade coffee. As a result of this there is a very high threat of substitutes. Water etc. Not only must they operate to fulfill shareholders expectations. Customers base their decision to purchase coffee from Just Us! Coffee Roasters are a symbol of their own personal beliefs. Just Us! Coffee Roasters image also attracts a passionate following. bargaining for higher quality or more services.g. Buyer Power: “Buyers threaten an industry by forcing down prices. but they also must operate in a manner that is expected of the values that the company . SWOT ANALYSIS Strength Just Us! Coffee Roasters’ brand equity is what drives the company forward. There are many competitors in the local market and on the shelf within the mainstream markets. Coca Cola. thus making buyer power in the industry high.Just Us! External Analysis: PORTER’S FIVE FORCES Threat of New Entrants: Threat of New Entrants is high within the market as there are very few barriers to entry and fair trade coffee trends are extremely popular so it is an attractive industry. However I still believe that due to the underdevelopment of the producing countries allot of the power still lies with the buyers. the customer’s income plays a huge role in selecting a product therefore if they decide to bypass fair trade products because of the premium price they can hold allot of buyer power. As mentioned in Appendix BPEST.

engagement and utilize its loyal customer’s feedback at a very low cost.Just Us! had initial0ly set out with. Operating and managing two separate strategies can create a clouded vision within the company and a decision needs to be made on prioritization. however with various challenges on the horizon a decision needs to be made on a strategy. . Internal Analysis BCG Matrix As JU provide various organic products it is important to examine the more profitable ones and not so profitable in order to either focus marketing effort on weaker products or discontinue them. It is to be seen that the fair trade term is been thrown around too commonly and applied to every product. Upon entering the next phase of the company’s life cycle. are bound to creating a profit while maintaining the appropriate image and practiced that they initially based their company on. Jeff and Debra Moore. Clouded Focus: At the moment JU are using multiple channels of distribution. thus potentially reducing effect of one of JU’s key USPs. Threat Clarity on Fair Trade: An issue highlighted in the case was that of clarity and regulation on fair trade. Jeff and Debra must maintain operations under strict control of their original company values as they compete against competition that does not share the same values. Opportunity New Fair trade products: With more and more fair trade products becoming readily available a huge opportunity to increase the product portfolio is on the horizon for JU Social Media/Online: The online environment presents JU with a huge opportunity to increase brand awareness.

Just Us! Coffee Roasters now must compete on a large scale against strong mainstream competition and well established local and international brands. Just Us! Coffee Roasters is wishing to expand their company. As a result. Perhaps JU should look at the profitability of the sugar market and consider placing less emphasis on it. thus profits.Just Us! Stars: Coffee & Tea Dogs: Sugar Cash Cows: Cocoa Coffee and Tea appear to be the largest growers in the trade figures with significant growth rates in volume averaging approximately 15% across both categories over a four year period. Making the decision to go mainstream. Just Us! Coffee Roasters operates in the niche market of Fair Trade Coffees. which mean that they face more competition from outside their niche market. competing against well established brands is highly important and critical to Just Us! Coffee Roasters’. If . ISSUES  With the growth in the fair trade coffee market. what strategy should Just Us! Roaster implements to grow and maintain its competitive advantage in the market?  Strategic Issues Just Us! Coffee Roasters Co-operative has enjoyed growth over their start-up phase and is wishing to expand further.

Sherman (2003) states that one of the possible reasons for a joint venture or strategic alliance is to widen or integrate product lines. no expansion. . new product lines would provide JU with new opportunities for revenue. There are mutual benefits for both parties by entering this agreement.Just Us! Just Us! Coffee Roasters prolongs their decision to act they risk reducing growth as a company. Alternative (B) : The second strategy is to remain in the Nova Scotia market and defend what JU already has. and reduce their strong brand image in the public’s current perception as a proactive advocate of fairness and equality for the coffee producer. However an important factor to consider when considering a joint venture or strategic alliance is to give careful thought to the type of partner you are looking for and what resources you and the partner will be contributing to the newly formed entity (Sherman 2003). From careful examination of competitors in the local market I believe that a joint venture with Kicking Horse would be most effective.     Targeting new markets or new buyers? Assess Retail Channels and feasibility of Long term Product Line and profitability Better MARCOMS (Marketing Communications) model required ALTERNATIVES: Alternative (A): “Joint Venture/Strategic Alliance” The first strategic alternative I propose is to attempt a joint venture/ strategic alliance with a fellow competitor with similar values. As we have seen from the SWOT analysis. This strategy could help JU with resources and in increasing market share in the local market as well as providing a platform for expansion outside the maritime states. The reasoning behind this is because they are located on the opposite coast of Canada and have the same core values as JU.

The JUST US! Management needs to put more emphasis on this area. Another simple low cost form of advertising and using technology could be a members club. which relates to how the message is received.Just Us! The objective of this strategy is to continue maintain the 4 coffee shops and maintaining the relationships with retailers. Marketing communications (MARCOMS) refer to four different types of communication channels – advertising. RECOMMENDATIONS  JU need to develop a clearer MARCOMS model. By establishing this in the online environment they could then use Electronic newsletters to keep in touch with existing customers. However for such a long term strategy to be fruitful the entire process has to produce Quality products to conquer new areas. However because of the competitive environment it is not recommended and therefore is not the selected strategy. public relations. in this case strengthen. The benefits of this are that the company can focus on its service offering and finding new product lines. An interesting feature I would feel would be online videos of the product process on the website from start to finish. This strategy of defense is used in industry when a competitor launches an attack on the market. ALTERNATIVE C: Long term expansion strategy in order to increase the market share This strategy is considered keeping in mind the long term expansion plans of the JU coffee centres. The yardstick could be Quality to prevail over the competitors in the expanding market.  It is the need of the hour to have a strong online presence without which one cannot command a good market share. JU for example could Cut Costs either meet the attack head on or look for a gap or a weakness in its competitor’s strategy through promoting their own strengths and highlighting the competitor’s weaknesses. This would not only ensure that new market is tapped within the Nova-Scotia region but also take the JU brand to the mainland Canada. personal selling and sales promotion. The benefits of electronic newsletters to . However one solution to combating the intense competition in the market is to use a counter-offensive defense as suggested in Wilson and Gilligan. 2005. MARCOMS give organizations the opportunity to establish. a strong position in the market and assert their distinctiveness and also ties into what the client wants to say as opposed to execution.

 Opening more coffee retail outlet in dispersed location to increase the reach. JUST US! Cafes need to develop an unmatched service standard and best ambience in the coffee stores. service differentiation is the most important criteria which sets you apart from your competitor.  Finally.Just Us! customers are simply that they can be issued in large quantities on a low-cost basis and can reach a large portion of their target market. .

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