Coffee Shop Case Study

Task 1 : Needs , Wants , Products and Total Product Concept .

Coffee is a really important part in people’s life and a really big part on the world economic. And about the product coffee , it’s not the thing we need by 100% , nobody will goon to die because here is no coffee to drink anymore , so it’s just a products to satisfy peoples want .

For satisfy peoples want , the coffee shop made many great products about coffee , like Espresso, long black, macchiato and many kind of it , they are all really testy and easy to make . And now those coffee shop are not just selling the coffee , because sometimes people like to have more products than coffee , like the first product showed in the coffee shop which is not about the coffee is tea , and

Like if here is five people buying a same product in business A , but business A only have only made two of it , so the other three customer will goon to the business B to meet there need , the business will not get the revenue and decrease profit.

B:

Breakeven is total revenue equal with the total cost . So it’s really difficult to see the coffee business using breakeven or not.

C:

The advantage of using the “an average customer who spends $5” is not really focus on the breakeven , it’s about how much did the customer spend , because this is the point to getting profit . And the disadvantage point is this “an average customer who spends $5” is not really fair , because people buying the different product with different price .

Task 3 : Entrepreneurship

A:

George Gregan was a professional rugby player before he start his coffee shop business, as all we know, the professional sport player can’t do the same job forever, because people are getting older , so he must to think what job he need goon to do when he’s age is not for a professional sport player any more , so his was plan for it long time ago . And as all we know , in the sport, people need to be focus , need to have the general context in game theory , and need to analyze the ability between the rival and there self . All of that ability made he and his business came to be really

coffee shop provided 2014 A$m 2015 A$m 2016 A$m 2017 A$m 2018 A$m 2019 A$m total market size 4300 4438 4579 4726 4877 5033

Coffee Club 1720 1820 1923 2032 2146 2265

Gloria Jeans 1290 1478 1676 1886 2107 2340

Michel's 1290 1140 980 808 624 428

( D ):

Coffee Club: Coffee Club revenue are rising every year , but they will not be the market leader in 2019 because they only growth 0.1% on market share every year , they will be the second one .

Gloria Jeans: Gloria Jeans revenue and market share are rising too , and in 2019 they will have the large market share , because they have large rising on the revenue.

Michel’s: Michel’s revenue are getting down all the time , so it will be the smallest one , but I thing it will be died before 2019…

Task 6 : Projected Gregan Group Performance.

( A ) Gregan Group’s 2014 market share.

Coffee shop providers 2014

Total Market size A$m 4300

GG Revenue A$m 10.0

GG Market Share % 0.23

( B ): Gregan group’s projected revenues and market share.

Coffee shop providers 2014 2015 2016 2017 2018