I. Introduction/Executive Summary and Product Description Yuban java is a trade name of java you can happen in your local food market shop that you likely did non cognize existed. It was founded by John Arbuckle. a celebrated java roaster. who has invented the original Yuban java in 1986. Yuban java merely uses the best Arabica beans. In add-on. Yuban is certificated by the Rainforest Alliance. which declares that at least 30 % of Yuban java is organic.
Chemical fertilisers and pesticides are non used on the organically adult beans and the rain forest confederation besides works to prolong agribusiness. forestry and touristry in the parts of the forest that the java beans are grown. More late. Yuban java has been easy grown. if grown at all. and has non been making its full potency. The chief job of Yuban is the deficiency of trade name consciousness and an unsuccessful selling scheme. When the selling scheme alterations to work out these jobs. it will do the Yuban trade name more competitory and successful in the java market.
Our selling program will be discussed in item in the pages to come. but our general aim is to construct trade name consciousness by specifying and selling towards a more specific mark market. Besides. with the execution in of our recommendations. Yuban java will be able to make this aim.
Ultimately our selling program will dwell of the followers: 1. Increase Yuban’s trade name image by: a. increasing trade name consciousness from business-to clients / Business-to-Business markets by perforating the online and societal media sectors b. creative activity and execution of the peddling machine/coffee brewing machine c. utilizing recent acquisitions to force the Yuban name d. redesigning merchandise packaging to reflect environmentally witting trade name II.
Target Customer Analysis People in the United State love java. merely like how people in China love tea. Research suggests that 50 % of the population of United States drinks java and those java drinkers in the United State imbibing more than 3 cups of java each twenty-four hours! Aside from the United States there are so many other people in the universe who love java ( E-imports. 2012 ) . This makes java go the 2nd valuable trading merchandise after oil.
For the people who love java. most of them have a favourite trade name. even a specific gustatory sensation. So for Yuban. they have a large market and great chance to develop. Yuban java is certified by the Rainforest Alliance Certification. which means Yuban java is healthier and environment friendly. “Made from 100 % premium Arabica beans. YUBAN mountain-grown javas offer uncompromising. robust spirit and seductive aroma” ( Kraft. com ) . Besides. because of this ground. Yuban java is more expensive than some other instant java. particularly its caffeine-free organic java.
Therefore. the mark client of Yuban java should be those people who are environmentally and wellness witting. and willing to pay more money on java. In figure 2. 1 of the Appendix. the two charts show the difference buying power on different coevalss. We can see in the first chart that people in age 25-34. 35-44. and 45-54 have the strongest buying power. And people now in those ages fall into 3 coevalss different coevalss. the Baby boomer ( 1946-1965 ) . Generation X ( 1966-1976 ) and the Millennial Generation ( 1977-1992 ) .
We feel the older coevals being the babe boomers may non care excessively much about being wellness witting. but if we had the clip and money we would desire to research this to happen out if they are a portion of our mark market. The younger coevals. being the millennian coevals is anyone presently age 21-34. Then you eventually have the last coevals. which is Generation X. who includes anyone presently 37-47 old ages old. So. out of these 3 coevalss it will be in our best involvement to travel with the millennian coevals. They have good economic status. and they have good instruction background.
It means they can afford higher monetary value of java. and the Millennial coevals will be the most environmentally witting. which we will discourse in another portion of the paper. III. Competitor Analysis Yuban competes in the premium java bean and land java market. While there are legion java trade names viing in the North American market place. most of these compete on a cost leading scheme.
Merely a few rivals such as Green Mountain Coffee. J. M. Smucker’s Folgers are trade names which have little premium distributers such as Fair Winds Coffee and Organic Coffee Co. . and all compete in the premium java class within the environmentally friendly and just trade class ( Agas. 2006 ; Statistics. 2013 ) .
These trade names specifically differentiate on quality instead than cost. Market Share of Main Rivals: The java bean and swot industry is extremely fractured in footings of market portion. While Yuban merely has some 1. 93 % of the market place. companies such as Folgers and Maxwell House have 21. 6 % and 14. 62 % severally but with down market merchandises ( Statistics. 2013 ) . Therefore. it is rather clear that there is extended room for farther growing of the Yuban trade name.
Market Structure: The java industry is an highly competitory 1. However. the market construction of the java industry and specifically the java bean industry that provides the natural stuffs for Yuban could be described as an oligopoly. The specific features of this oligopoly are. nevertheless. more evocative of a trust because a comparatively little figure of providers control the supply and distribution of java beans globally ( Igami. 2011 ) . Consequently. Yuban. which is a trade name within the Kraft Foods umbrella. has limited pick in choosing its supplies.
The java bean industry was controlled officially through a trust construction until 1989 under the International Coffee Agreement or ICA but thenceforth market competition with new entrants such as Vietnam eroded the control of this official trust organisation ( Igami. 2011 ) . Yet. because java bean production is mostly limited to certain geographic parts. these countries’ authoritiess show a great trade of control over which entities control production and distribution. Competitive Barriers: There are a figure of important competitory barriers within the java bean and java swot industry.
While virtually any house can buy the natural stuffs or even the finished merchandise in the signifier of land java. the packaging and distribution of the merchandise is a much more sophisticated enterprise. The most important competitory barrier is the constitution of a retail distribution channel which requires negotiated shelf infinite in retail mercantile establishments. distribution channels including repositing and transit services and merchandise packaging and design installations ( Amato & A ; Amato. 2009 ) . All of these factors require both material resources every bit good as managerial competences that must be established prior to really come ining into the industry.
Beginnings of Competitive Advantage: Yuban’s java retail java industry has several beginnings of competitory advantage. The primary beginning of competitory advantage for Yuban is its parent corporation’s size. graduated table and grosss. Kraft as a corporation that earned more than $ 18. 3 million during 2012 and its java merchandises which include Yuban contributed an estimated 8 % of these grosss to Kraft’s net incomes for that period ( Annual. 2012 ) . Consequently. Yuban has entree to Kraft’s considerable fiscal resources every bit good as its developed competences in the merchandising and selling competences of major nutrient merchandise trade names.
IV. External environment analysis Economic environment: The chief emerging markets in java ingestion particularly in Asia and South America market under the background of lifting. planetary demand for java during financial twelvemonth 2011 to 2012 rose 2 % . During the financial twelvemonth 2012 to 2013. planetary java production stabilized at approximately 146 million bales ( 60 kilogram per bag ) . Coffee is one of the most widely consumed drinks worldwide and in the United States. There are 183 million java drinkers in US and a 7 % addition over 2011 in java ingestion.
Technological environment: Modern engineering can better the production procedure and achieve economic systems of graduated table. Ultimately sophisticated engineering can assist coffee production in many factors. the merchandise trade name. and the java beans. Ultimetly. the procedure of bring forthing good quality java beans is comparatively the same with some secrets of the drying procedure that differ. In our recommendations. we suggest the debut of java peddling machines. which will be an country that Yuban will distinguish itself from the remainder of the java market.
Political and legal environment: Low production of java beans. doing unstable clime could take to a protectionist manufacturers. So higher import monetary values to countervail the harm caused by the low production. Yuban java is already rainforest certified. and therefore the political environment is in its favour and will merely do it to turn more to go a more active leader in this political and legal country. Cultural and societal environment: More than 50 % of Americans drink java every twenty-four hours.
This represents more than 150 million day-to-day drinkers. 30 million U. S. grownups have professional java drinks daily. which includes drinks such as mocha lattes. java. mocha javas. cappuccino. and etc. 65 % of java ingestion in the breakfast clip. between repasts. with the staying 5 % and other nutrients. At the same clip. 35 % of java drinkers prefer black java.
V. Company Analysis Yuban is an cheap trade name of South American java. Comparing the same sort of java. Yuban provides lower monetary value java than other trade name in the market. Though Yuban java offers a lower monetary value. it besides emphasizes the quality of the merchandise. Strength: Yuban provides 100 % Arabica beans which are the finest java beans.
To back up the high quality java beans. the company gets the Arabica beans from some of the best java turning parts in the universe. and the highest quality java beans are sourced from some of the finest beans grown in Central and South America. Thus. Yuban will go on to be made with 100 per centum Arabica beans but non 100 per centum from Colombia. and some of them from Brazil. Peru and Nicaragua and so on. In add-on. to avoid destroying the coffee’s spirit. Yuban used a sugar and egg glaze on the beans in a roasting procedure. guaranting to maintain the spirit of the beans a rich gustatory sensation.
Presently. Yuban is owned by Kraft Foods which is the world’s biggest purchaser of Rainforest Alliance-certified java. And Yuban has been granted enfranchisement with the Rainforest Alliance in 2006. It means that there are at least 30 % of its beans are organic. Harmonizing to the enfranchisement. Yuban non merely uses environmentally friendly farming methods. it is besides required to supply a just system to worker and efficient farm direction. It is to maintain the merchandise quality in a high degree while still back uping the squad who is responsible for turning and protecting Yuban java beans. Failing:
Yuban does non hold its ain official web site. If people want to purchase Yuban java. they can merely buy it off of web sites like Amazon and of class super markets. In a shopping web site like Amazon. there are many different sorts of java trade name. non merely Yuban java. In fact. if people buy an instant java or java beans. most of them have a peculiar trade name they buy and will non seek another brand’s merchandise. Consumers merely concentrate on what they need and in this state of affairs Yuban is non aiming its mark client because it is sharing the sphere with many other java options available excessively.
Yuban besides does non hold a celebrated trade name of java name or client trueness. An official web site is utile to allow clients concentrate on your brand’s merchandise. and back up more item information about your company. It is an image that you are selling the clients. Therefore. this is a failing for Yuban java. Opportunity: Peoples life styles are altering because more and more people enjoy imbibing java. particularly when worlds reach a certain age in their life that is acceptable to imbibe java. Yuban can utilize the alteration of lifestyle tendency to advance its java.
After all. Yuban java is historic trade name in java market. and it will give consumer assurance to savor its java. Therefore. it is a good opportunity to increase the market portion. Furthermore. Yuban is owned by Kraft Foods which is one of the top 500 companies in the universe. It can utilize Kraft Foods’ consciousness and resources to pull more clients. because people may cognize what Kraft Foods is. but they may non cognize what Yuban is. Therefore. Kraft Foods can back up the assurance for the consumer. when the consumer see whether to purchase Yuban java or no. Yuban java besides does non have different sort of java merchandises.
It keeps the manner of traditional instant java. and launches several different types of java to accommodate client penchants. So far. there are no other merchandises other than instant java or whole java beans. Regardless of the season Yuban java merchandises do non alter where as some other java trade names may offer different joints or blends. There is an chance here because it can develop some new merchandises which are based on 4 seasons a twelvemonth. This can assist pull more possible clients if we offer something different from clip to clip but still keep our original merchandise.
Yuban java is besides non packaged with much invention to distinguish itself and sell. Yuban can increase market portion through diversifying the merchandises and besides concentrating on the packaging to offer a design that matches the intent of it. Menace: Yuban java is certified through the Rainforest Alliance. but that merely guarantees 30 per centum of the beans in any bundle of Yuban java are organically grown. It means that there are 70 per centum of Yuban java merchandise that do non likely come from ecologically-sensitive farms.
Customer may concentrate on the 70 per centum of Yuban java merchandise and concern about the quality of them. Yuban strives to back up lower monetary value and high quality merchandise. but the organically adult java beans are more expensive than java beans that are non organically grown. If more and more clients pay more attending to this. Yuban java will lose some clients. Therefore. this is one of the menaces for Yuban java. What’s more. in the external environment. the economic recession will cut down customers’ demand of java. and there are many rivals in the java market. such as Folgers. Maxwell House. and Nescafe.
However. Yuban java does non concentrate on the publicities or advertizements. It will impact the company’s concern. It likely reduces its gross revenues and net incomes. even market portion. Therefore. Yuban must face these jobs. and how to work out them. VI. Marketing Information Requirements In our research. we learned that Kraft Foods has a broad portfolio of recognized joint and land java trade names that is alone to every type of java client. Their portfolio includes Maxwell House. Gevalia Kaffe. Yuban. and Cafe Collection.
Yuban java is made from 100 % premium Arabica beans. is mountain adult java which offers uncompromising. robust spirit and seductive olfactory property. Harmonizing to the Kraft nutrient web site. Yuban java is made to appeal to those consumers who demand environmentally witting merchandises. Thus. Yuban java is perfect pick for clients who want to do a difference in the universe. This scheme of marketing Yuban java to the environmentally witting is portion of our aim. nevertheless. Kraft nutrients has non differentiated who the environmentally witting truly are.
We discussed earlier who our mark market included. but allow us take a closer expression and understand them and their wonts better. In a survey conducted by Generate Insight ( 2009 ) “69 % of millennial’s surveyed expressed echt involvement in the environment. but they besides admitted to a deficiency of personal engagement in green-related activities. In short. this group understands the why but is diffident of the how” ( Gaudelli. 1 ) . Thus it will be our occupation to tap into how they can be a portion of the green motion.
If we had the clip and money. which Kraft does hold. we would urge making marketing research on the three coevalss which include gen x. babe boomers and the millenials to understand their purchasing wonts particularly when it comes to taking an environmental witting merchandise over one that is non. VII. Marketing Mix Merchandise: The bundle of Yuban java suggests that its drinkers can hold great savoring cup of Java and experience that they are take parting in making something great for java husbandmans every bit good as the environment. Yuban is grown harmonizing to Rain forest Alliance Certified criterions and besides applies organic java beans.
Therefore. the merchandise has two benefits. being better for the rain wood and universe. and is besides organic. which means you can experience truly good when you drink Yuban. The bundle description besides comprises information of there being a lower limit of 30 % Rain Forest Alliance Certified Coffee in each bag which is supposed to assist in preservation of the environment every bit good as support java husbandmans ( Cliath. 2007 ) . Yuban java has a really typical odor than any other java. It has a fresh and pleasant odor. loaded with a fresh land java bean aroma.
It is mild and has no bitter after gustatory sensation ( Cliath. 2007 ) . The debut phase is the first phase in the life rhythm where the java was introduced to the market. At this phase there were low gross revenues with high retail monetary values. Then there is the growing phase that is characterized by rapid addition in gross revenues. This happened when the Yuban java was merely introduced to the market. It is believed by some industries that Yuban java is still in the growing phase. marks indicate that it is in the adulthood phase. In the adulthood phase. there is high trade name consciousness. high distribution. and lower monetary values.
Yuban java is believed to be in this phase ( Cliath. 2007 ) nevertheless. we feel otherwise about this. We feel that Yuban can be reintroduced into the market with our recommendation and back path to the debut and growing phase one time more. The java is packaged in what seems to be a 12 ounce bags. Today it is packaged in the traditional preserved java containers. or in java instances. Coffee instances are separately sealed cups of premeasured evidences. designed for usage in one cup java shapers. They are packaged in sensible pouches for convenience and freshness and the label besides contains a K for Kosher on the exterior.
There is no indicant through whether the bag is made of reclaimable stuff or is ( Cliath. 2007 ) . Thus Yuban is non distinguishing its packaging in relation to its intent either. Customer service is required for the java trade name so as to acquire the feedback from the clients on what they need improved. The merchandise besides does come with a guarantee from the company. Customers are assured of the quality in the merchandise. Topographic point: Some merchandises need much less market exposure than others. An ideal market exposure grade makes the java available widely plenty to make the mark customer’s demands.
This nevertheless. should non be exceeded. The ideal exposure grade involves intensive distribution. selective distribution. every bit good as sole distribution ( Cliath. 2007 ) . Yuban java is distributed both at the wholesale and the retail degree. It distributed all across states of the universe. One is likely to acquire Yuban java at the supermarkets. retail stores. and java stores. It is besides distributed straight by the company to the jobbers. The merchandise is aimed at persons who feel that they are take parting in the saving of the environment and minimise or halt further devastation to the rain wood ( Cliath. 2007 ) .
With our recommendation of presenting the Yuban peddling machine. puting these machines in call centres across the state. colleges and universities will be another manner to present our environmentally witting merchandise to our mark market. Promotion: The publicity aims are to acquire clients to stay committed to purchasing environmentally witting merchandises and our clients will experience like they are making their portion in prolonging the universe and environment through their purchase of Yuban java. Promotion Blend:
The advertisement program will concentrate chiefly establishing a web site for Yuban every bit good as its ain Facebook. YouTube and other media site publicities. Though print advertisement can be really good we will seek non to plunge excessively deep in this country as we are advancing an environmentally witting merchandise and want to track our C footmark. Our transcript push will be more psychological to guarantee that clients are cognizant that they are making the right thing by taking to purchase Yuban java. Personal merchandising can be used particularly if we show clients who and where the original Yuban java beans are grown and cared for.
This can be demonstrated through pictures on YouTube and besides shared on our Facebook page and web site. similar to what Kashi does with their cereal merchandises. Yuban can originate a wages system that if their java packaging is recycled to certain food market shops they can acquire a price reduction on the following Yuban java merchandise they buy. Again here. clients can experience good about this purchasing procedure. Publicity will be used when we introduce Yuban java in the java store recommendation through Tom n Toms and Urth Cafe. It will go recognized as the java used in these stores and easy turn to the java used in client places and so on and so forth.
Monetary value: The demand for an wholly organic java is monetary value sensitive because the cultivation of organic java is hard. Therefore. if we can calculate out what the lower limit demands are to be certified as organic in FDA criterions and such. so possibly 30 % is good plenty and we do non hold to advance that our merchandise is merely 30 % organic. and we can name it wholly organic if the demands are non demanding. The pricing scheme for Yuban would be monetary value somewhat higher than rivals such as Folgers but merely because of the environmental work that goes into prolonging what Yuban believes in.
Besides. by pricing our java somewhat higher we can including something in our publicity that a portion of the gross from gross revenues is pumped back into the environment to repair what matters most in the universe environmentally. Yuban can offer price reductions if their packaging is reclaimable or reclaimable. We may be able to get down an imitation to return Yuban java tins or jars to grocery shops to acquire a price reduction on their following Yuban purchase. This goes in line with what Yuban is all about and is besides a price reduction to the client which will acquire them to continually purchase our trade name of java. VIII.
Recommendations and Implementation Brand acknowledgment is really of import and closely connected to the execution of our recommendations. We recommend that Kraft foremost redesign and assign Yuban its ain web site so clients are cognizant of the different merchandise offering and what this trade name of java is all approximately. In the Internet age. people have ever enjoyed looking on the different web sites for the information they can happen on each single merchandise. nevertheless. there is no independent or good set together web site for Yuban java. which will do it hard for investors to larn more.
For illustration. Folgers which is another trade name of java that everyone knows rather good due to the Folgers jangle really has its ain web site despite the fact that it is a portion of the Smuckers Company. Kraft nutrient besides has a portfolio of java that is targeted to different clients. nevertheless. Yuban has non been given that independency or leading to stand entirely or derive repute. Maxwell House Coffee. the second of the 4 java brands/products of Kraft Foods has its ain web site. Facebook. and YouTube. Though Yuban is a merchandise of Kraft Foods. Yuban has a ill designed website with small information on it at all.
Besides. the Yuban page in Kraft Company functionary site is really simple. Yuban is a java made under the Kraft Food line. and it appears they are unwilling to pour in the proper financess needed to fund a separate Yuban Coffee Website. Customers are considered as the anchor of any concerns. Hence. Yuban demand to be good cognizant of their customers’ satisfaction for their merchandises or services. particularly in their attempts to track the ‘environmentally conscious’ client base. Besides. Yuban should reason jobs reported by clients and seek to repair the jobs. which benefit the company’s further development.
In add-on. another recommendation for Yuban is that the trade name can besides develop peddling machines that will supply hot java and forte drinks with the touch of a button or two. Yuban is good known as a land java merchandise. However. doing a java tally to the nearest Starbucks or local java store is non an option during the twenty-four hours. Hence. our recommendation of peddling machines is besides a really convenient to those clients. Particularly if the machines are placed in locations such as college hallways and edifices where pupils are merely allowed adequate clip to catch a speedy drink or bite during their short interruption.
Puting the peddling machines in call centres where hours of operations normally start early in the forenoon and are located in big multi-level edifices that grind and brew a cup of fresh java is would be a scheme which would let Kraft nutrients to tap into the java machine concern because non merely would Kraft provide the java. which is Yuban in our instance. but it would besides sell the machine that brews the java to these concern. or roll up some kind of rent or rental for holding it.
Our 3rd and concluding recommendation would be to go the java provider of java stores such as Tom n Tom’s and Urth Cafe. Tom n Tom’s has an interesting location base in Los Angeles. Australia. Singapore and Thailand. They do non nevertheless carry or brew good quality java. Therefore. by going the exclusive java supplier for Tom n Tom’s will be a win-win state of affairs. Urth Cafe is a coffeehouse which offers entirely organic java and tea. Yuban would fall into this class and could supply lower monetary values than other organically adult java.
Though Urth Cafe presently merely has location here in Los Angeles. it is merely an illustration of the place that Yuban java can take in the market. Appendix Figure 2. 1 Figure 8. 1 Research and do betterment Time Event Cost Note One month Redesign a new website $ 30. 000 Two months Shot picture on You Tube $ 50. 000 Three months Research and do betterment Included in client service Long clip Customer service section 200. 000 per twelvemonth Work Cited Agas. G. ( 2006 ) .
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H. . & A ; Amato. C. H. ( 2009 ) . Changing retail power and public presentation in distribution channels. International Journal of Retail & A ; Distribution Management. 37 ( 12 ) . pp. 1057-1076. Annual signifier 10-K. ( 2012 ) . Kraft Foods. Investor Relations ( online ) .
Retrieved from: hypertext transfer protocol: //ir. kraftfoodsgroup. com /sec. cfm Igami. M. ( 2011 ) . Oligopoly in International Commodity Markets: The Case of Coffee Beans. Available at SSRN 1531401. Statisticss and facts on the java market in the U. S. ( 2013 ) . Statista Research Publications. 01 ( 05 ) . pp. 1-72. E-imports.
Retrieved from hypertext transfer protocol: //www. e-importz. com/Support/specialty_coffee. htm Kraft. ( n. d. ) . Your clients attention. about the planet. about people. . Retrieved from hypertext transfer protocol: //www. kraftfoodservice. com/productsandbrands/hotbeverages/yuban/default. aspx Oches. S. ( 2012. November ) . Meet your client. Retrieved from hypertext transfer protocol: //www. qsrmagazine. com/consumer-trends/meet-your-consumer Cliath. A. ( January 01. 2007 ) . Sing Shades. Organization & A ; Environment. 20. 4. 413-439. Gaudelli. Janis. The Greenest Coevals ( April 29. 2009 ) .