Swot Analysis Of Mugg & Bean

Strengths:

• Mugg & Bean has been around since 1990,and it is thus a well known well established, reputable brand

• Mugg & Bean’s philosophy of generosity with regard to portion size makes them unique and sets them apart from competitors

• Mugg & Bean’s concepts of bottomless lemonade and bottomless coffee is attractive to customers because value for money and a “bargain” is sought after and appreciated especially during times of a financial difficulty.

• Mugg & Bean has a well defined target audience and thus can cater for the middle class and upper middle class with ease

• Mugg & Bean operate within their own “space” by offering customers a unique “theatre like” experience where they can witness the baking of select items on the menu

Mugg & Bean are therefore in an ideal position to expand further and spread their brand across the African continent thus increasing their market share.

• The up and coming black middle class regard it as a status symbol to enjoy casual dining at Mugg & Bean. The brand is thus provided with a great opportunity to innovate further and broaden their young , energetic brand and cater for an even greater portion of the population

• The success with regard to the compacted versions of Mugg & Bean, namely ‘Mugg & Bean Metro’ and ‘Mugg & Bean on the Move’ has shown the great need for what Mugg & Ben has to offer consumers . Mugg & Bean could potentially open one of these compacted versions at school tuck-shops

• Head office ( The Franchisor) can arrange a leadership training seminar for all the Mugg & Bean franchisees in order to ensure that individual stores run in a competent and dynamic fashion.

Threats:

• The rivalry within the coffee shop industry is growing progressively more fierce. Customers are looking for the best quality at the most affordable price. Customers have a variety to chose from thus forcing Mugg & Bean to function “at the top of their game” at all times. A poor experience may result in customers disregarding Mugg & Bean in the future and opting rather for one of their

The fewer the number of suppliers, the stronger their power over the business because the business cannot do without them.

Power of Buyers(Including intermediaries)

It is of the utmost importance that Mugg & Bean know their target market extremely well. Advertising campaigns (Above and below the line ) should aimed specifically at their chosen target market of “middle class and upper middle class.”. With regard to market segmentation, Mugg & Bean needs to be fully aware of how many potential buyers exist within the market.

Mugg & Bean appeals to all LSM 8-10 income brackets. Their target market is the 25-29 year category.

Customers are extremely price sensitive. It is for this very reason that Mugg & Bean’s large portions are extremely appealing.

It is undoubtedly regarded as a status symbol to dine at Mugg & Bean. The “snob-value” associated with Mugg & Bean therefore influences buyers to choose Mugg & Bean above another brand.

Buyers hold sufficient power because they have the power to choose. If customers are in any way dissatisfied with food/coffee/service at Mugg & Bean they will not hesitate to spend their money at one of the their competitors discussed under “Level or rivalry in the