Gloria Jeans Strategy
... MARKETING STRATEGY 11.1 Product strategy Product strategy involves the decisions on product quality, design, and features. As we mentioned before, Gloria Jean¡¦s sells and roasts top quality coffee products, and is special in flavoured coffee. So the main coffee products in Shanghai Gloria Jean¡¦s include both traditional classical coffees and blended flavour Coffee. ... 2 Price strategy The price that company wants to set for a product depends upon a number of factors, including external and internal factors. ... Therefore, it is better to take penetration price strategy, which aims to sell to the whole market at a relative lower price compare with other specialty coffee shops including Canadian Blenz Coffee (RMB25-35) and Japans Manabe Coffee (RMB50-70), and a cup of small Espresso is just RMB12 (Appendix B). ... On the other hand, the company should use the strategy of product line pricing. ... Moreover, with the current strategy of the Gloria Jean¡¦s is to expand the operations in the city of Shanghai, using this pricing policy, the company can gain more market share. Certainly, with the RMB$18 needed to purchase a coffee at Gloria Jean¡¦s simply not too cheap for the ordinary Chinese citizens. But Gloria Jean¡¦s has no plans to cut prices further, as Chinese customers have different priorities than their American yuppie counterparts. ... Combines to the furniture, store layout, artwork and food options, which will make Gloria Jean¡¦s being more warm to Chinese customers, also coffee remains the core offering. ... 3 Place strategy As a coffee shop, the choice of place takes a determinant role in success. ... 4 Promotion strategy Because of the fierce competition existed in the Chinese coffee market, especially in our target market ¡V Shanghai, Gloria Jean¡¦s coffee has to utilize many forms of promotional activities to build its brand awareness among the target market as a new player in the Chinese coffee market. According to the product life circle theory, the coffee chain store in China is in its emerging and growing stage; therefore a strong and effective promotional programme is regarded as a very important strategy in the success of the Gloria Jeans coffee. ... 1 Advertising TV commercials can help us to build the brand awareness of Gloria Jean¡¦s among the widest range of consumers. ... When customers make a consumption of over a certain amount of money, they can get a free voucher of Gloria Jeans¡¦s coffee. Also, we can make some souvenir to reward our customers such as the Gloria Jean¡¦s coffee cups or T-shirts. ... It is a proven strategy that customer loyalty programs are effective in creating repeat business. Therefore, it is suggested that Gloria Jean¡¦s conduct the customer loyalty programs to build a strong relationship with its customers. Each customer will be given an electronic loyalty card when they first purchase Gloria Jean¡¦s coffee.