The paper "Gloria Jeans Coffee Issues" is a great example of a Management Case Study. Gloria Jean Coffee is a premium coffee maker that mainly focuses on franchising their business to the local people in the United States of America. The industry is currently in the target of a small market segment majorly targeting young adults who are age between 16 to 25 years. There are several market segments that form the basis of decision-making in the Gloria Jean Coffee industry. The first segment is demographic segmentation. Gloria Jean mainly targets young people who are aged between 16 and 25 years.
Most young people love coffee for obvious health reasons. The young people are also more knowledgeable about coffee. They have knowledge of the different tastes from different coffee brands. Secondly, the company majorly focuses on female customers (Gloria Jean’ s Roasting Facilities, 2014). In fact, half the sales come from the female gender. Women love coffee more than their male counterparts. For instance, Australian women have a strong culture of heavily drinking coffee than in other countries. The heavy drinking culture has influenced growth in specialist coffee shops, particularly among women.
In addition, coffee drinking has become part and parcel of the modern lifestyle among women in Australia. Social and culture tend to influence the trend of coffee consumptions (Cleveland, Papadopoulos, & Laroche, 2011). The second segment is the price segment. Price is the amount that consumers must exchange to receive the services and goods offered. The price of a good usually depends on a number of factors both internal and external. This is the reason why there is a constant change in price as a result of the changes in the elements.
One major factor in pricing in Gloria Jean Coffee is the decision on the cost of the product, strategy for marketing and the expenses related to activities such as advertisement, distribution or even any other kind of price variation in the market. In the modern era coffee is the second largest traded product in the market across the whole world. For this reason, most customers will prefer to buy different brands of coffee from the closest available supermarket instead of going all the way to Gloria Jean Coffee. There are several behavioral, demographic, geographic and psychographic variables under both the price segment and demographic segments.
The demographic segment is paramount to Gloria Jean Coffee. Regarding geographical aspects, the firm has a different franchise in Australia and New Zealand. The firm has set up coffee houses in every Australian state and territory. There has been the development of new markets in addition to the existing markets in order to enhance growth especially across Southern Asia particularly India. The segment considers the behavior of consumers in terms of price changes (Wedel & Kamakura, 2012). Under the price segment, consumers possess different behaviors towards the sensitivity of the price (Gloria Jean’ s Coffee franchise overview, 2013).
Coffee is usually considered a commodity and easily demonstrates price sensitivity at the lower end. It is essential for Gloria Jean Coffee to build its brand around the quality and pricing to increase its customer base and loyalty (Sharma & Lambert, 2013). Moreover, young people do always prefer coffee and will buy at whichever price it is set. Therefore, Gloria Jean Coffee should have strategies in prices such that they entail attempting to offer more compared to competitors.
Another major demographic factor under price segmentation is the use of different price brackets in which coffee is manufactured. For example, some coffee brands have low prices while other coffee brands have high prices. Therefore, the segmentation is done on the basis of earnings of the customer base which is part of demography (Regan, 2008).
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