Gloria Jeans Coffees In The Chinese Market

2773 words - 11 pages

Introduction: Company Profile
One of the leading and top coffee chains in Australia is Gloria Jean’s Coffees. It is an Australian-based coffee company, with more 480 stores across Australia. It is one of the largest coffee chains in world and is one of Business Review Weekly’s top 1000 companies and in top 500 private companies in Australia in 2008. Originally, the company started its operation in the USA, particularly in Chicago, with Ed Kvetko and Gloria Jean as founders in 1979. After over a decade, an Australian business man and coffee expert, Nabi Saleh, introduced Gloria Jean’s Coffees across Australia. In 2009, Gloria Jean’s Coffees International affiliate company, Praise International North America Inc bought the company’s US retail and franchise operations from its current US owner (Gloria Jean's Coffee, 2013). Now, Gloria Jean’s Coffees has already a wide presence in 37 markets globally, with numerous outlets in Australia, Malaysia, Mexico, USA, South Africa, Kuwait, Korea and many others. In particular, it has only 2 outlets in China, located in Xin Mei and Zhenyuan. The company is still pushing its effort in making a significant presence in China, and increase and diversify the company’s revenue streams.
In light with this, this research paper will discuss Chinese economy and culture as well as Chinese coffee industry. The key objective is to provide a marketing plan for Gloria Jean’s Coffees in making its entry and presence in China. The marketing plan will discuss the target market segmentations, competitive analysis, strategies for products offering, promotion, distribution and pricing, as well as strategies for human resource and financing.

Country Overview: Chinese Culture and Economy
The People’s Republic of China is the fourth largest country in the world is the most populous nation, with population reaching to over 1.349 billion as of July 2013. China’s population is composed of varied ethnic groups such as Han Chinese, Zhuang, Manchu, Hui, Miao and others. Chinese speak different languages, mostly standard Chinese or Mandarin, Cantonese, and other minority dialects. Most of the Chinese are practicing Daoist and Buddhist. There are also others practicing Christian and Muslim religions. China’s government type is communist state (CIA, 2013). China’s economy had been in a flourishing state, with fast-pace economic expansion due to increased consumption rate, rather than from investment. Recently, economic activities gained thrust through policy easing and significant and effective infrastructure spending. In the long-term basis, China had overtaken the Euro area and will become the world’s largest economy by the end of 2016 (Gurria, 2013). China’s GDP per capita as of 2012 reaches to a peak of $9,300, supported by real growth rate of 7.8%. Industrial production growth rate is 7.9%, ranking 28th worldwide. China also has the largest labor force with 7985 million. Inflation and unemployment rates are...

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