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2.1 CATEGORY DEFINITION
Déjà Brew, Inc. (Deja Brew) competes in what we will call the gourmet coffee café category. Gourmet coffee cafes serve gourmet coffee, which is typically hand roasted in an artisan tradition and served as either traditional drip coffee, Italian style espresso drinks, cold espresso or drip coffee beverages, and a variety of other coffee specialty drinks. These cafes also feature a selection of teas ranging from commodity quality to gourmet and from limited to extensive. Most feature a sitting area for customers to enjoy their beverages in addition to “to-go” service.
In addition to beverages, most cafes serve a variety of bakery and food items and ready-to-drink items such as sodas or fruit juices. Unlike the beverages, the production of these items is typically outsourced to larger food manufacturers.
2.3 COMPANY AND COMPETITOR ANALYSIS
Deja Brew competes in the gourmet coffee café category in the Gainesville, Florida market. We have identified 5 major competitors that exist in this geographic region: Starbucks Coffee Company, Java City, Maude’s Classic Café, PJ’s Coffee, and Barnie’s Coffee and Tea.
Starbucks Coffee Company is by far the largest of our competitors with thousands of locations in the United States and abroad. Starbucks is based out of Seattle, Washington, and earns revenues in excess of $6 billion annually. They have branched out into music, and most recently into movies with a partnership with Lions Gate Films. They have six locations in Gainesville with more in the planning phase. They also have four licensed concept locations managed by Aramark on the University of Florida campus at the Orange and Brew, the Levin College of Law, and Shands Hospital. Starbucks is a popular stop for morning commuters, and also sells a large variety of whole bean coffees both in their café locations and grocery outlets.
Java City is a franchise concept licensed to Aramark, the sole provider of dining services for the University of Florida. They operate cafes in several areas on campus, including the Reitz Union food court, the Dental School, Racquet Club, Engineering Building, The Health Professions Nursing Pharmacy School, and the center for Orthopedics and Sports Medicine. Java City sells espresso and drip coffee drinks and food products.
Maude’s Classic Café is a private enterprise located in downtown Gainesville on 2nd Ave., near the popular Union Street Station and the Hippodrome State Theatre. They offer a variety of coffee beverages, desserts, and most recently added a full menu of sandwiches and salads available during lunch and dinner hours. The atmosphere, possible the most appealing of their offerings, is unique amongst the other Gainesville cafes, and can mostly be described as what an independent café might be.
PJ’s Coffee
Barnie’s Coffee and Tea has a location at the Oaks Mall in Gainesville. Barnies is known for dominating the American mall, and has a location in most medium and large sized malls. They offer espresso drinks, Coffee Coolers (cold, sweetened, flavored coffee) and Freezers, which are frozen drinks with coffee and ice cream. They are also known for their variety of flavored and unflavored whole bean coffees, which are in bins allowing easy composition of custom blends and quantities.
2.3.1 Product Features Matrix
The following is a product features matrix which allows us to compare our strengths and weaknesses on factors that are important to our customers in the Gainesville market. Some factors (marked with an “*”) are rated on a scale of one to five because of they are difficult to quantitatively measure or describe.
Features |Starbucks |Java City |Maude’s |PJ’s |Barnie’s |Deja Brew | |Coffee Quality* |5 |4 |2 |4 |3 |3 | |Menu Variety* |3 |2 |2 |5 |4 |4 | |Location(s) |-Archer Rd.
-13th & University
-Magnolia Pointe
-Newberry Road
-13th & 16th
-Union Street Station
-Plaza Royale
-4 Campus locations |-Reitz Union
-Racquet Club
-Engineering Building
-Dental School
-HPNPS
-Orth. & Sports Med. |Downtown at Sun Center, across from Union Street Station and the Hippodrome |New location on Archer near I-75 |One location at The Oaks Mall |One location on University Ave, across from Library West and sharing space with Target Copy | |Food Selection |4 |? |5 |? |2 |3 | |Price |2 |3 |3 |3 |2 |3 | |Café hours |Open: 5:30 am to 6:00 am
Close: 10:00 pm to 1:00 am |Open: 7:00 am to 7:30 am
Close: 3:00 pm to 3:30 pm | | |Mall hours: 10:00 am to 9:00 pm |Coffee available from 6:00 am to 12:00 am, café open 24 hours | |Coffee-free offerings |4 |? |? |? |3 |4 | |Comfort of Café Area |4 |1 |4 |? |2 |2 | |Internet Availability/ Computer accommodations |Multiple Outlets Available, Internet available through account with T-Mobile HotSpot |University outlets available and free internet for UF students |Limited outlet availability, free wireless internet through City of Gainesville |? |Few Outlets and no wireless internet |Limited outlets and wireless internet from UF campus | |Speed of Service |3 |? |1 |? |3 |3 | |Cleanliness |4 |3 |2 |4 |3 |5 | |
We can see from the matrix that Deja Brew is performing well in menu variety, coffee-free offerings, café hours, internet and computer accommodations, and cleanliness.
2.3.2 Objectives
(Growth/hold/consolidation/harvest)
2.3.3 Strategies
2.3.4 Marketing Mix
Pricing.
Promotion.
Distribution.
Product and Service Capabilities.
2.3.5 Profits
2.3.6 Value Chain
The Value Chain was written about in Michael Porters book Competitive Advantage: Creating and Sustaining Superior Performance. We will first study our own value chain, followed by how that chain fits into our customers’ value chains, and finally what cost advantages we have over our competitors, and other places we cab add to our own value chain.
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2.3.7 Differential Advantage/Resource Analysis
1. Ability to conceive and design new products
2. Ability to produce/manufacture or deliver the service
3. Ability to market
4. Ability to finance
5. Ability to manage
6. Will to succeed in this category
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