Analysis of the Situation of Mystic Monk Coffee and Recommended Solutions
0 Analysis: Internal strengths and weaknesses 4 2. 1 Strengths 4 2. 2 Weaknesses 5 2. 2 External opportunities and threats. 1 Opportunities 7 2. The brand was set up for managing the Carmelite religious community in Wyoming. The symbol of the brand features the priest drinking coffee at the New Carmel where the priests are currently establishing their interminable religious community. Increasing sales of a company require a good marketing strategy that will attract the target market. A company needs to put into use the most modern marketing strategies like the use of social media. The objective of this research is to make an analysis of the situation of Mystic Monk Coffee and recommend solutions. This is because they don’t have other people assisting them in production yet most of their time is dedicated to prayer.
There is potential to increase the sales of the company because of the opportunities at hand. For instance, they have a large population that they can sell their coffee to. This report will analyze the strengths, weaknesses, threats, and opportunities of Mystic Monk Coffee. A review of the strategies used will also be done. Even though they had a humble beginning, more and more of their customers enjoy the delicious taste of the coffee. Their reviews from customers are very positive and have received a high rating of 90 points or even higher. The Mystic coffee has also expanded and added a variety of services like Coffee of the Month subscription and premium Mystica teas (Mystic Monk Coffee). They have grown to sell a variety of coffee gourmets.
They also offer t-shirts and monastic double-handled mugs and much more. The cheap price of coffee is therefore a competitive advantage that Mystic Monk Coffee have. Another great side of the brand system is that it produces a high premium quality natural coffee from fresh Arabia beans with a mixture of blends, tastes in addition to being in a position to request a wide scope of coffee consumer sachets (sengupta, 2016). Free shipping All the purchases that are done through the website are delivered through the United Parcel Services. Frequent customers are always advised to join a coffee club. Coffee club members are offered shipping for one to six bags of coffee monthly. They produce the coffee using Arabica beans. This means that the quality of their coffee is high which gives them a competitive advantage over others who produce their coffee using low-quality Arabica beans and Robusta beans with less flavor.
Flavor They offer a variety of coffee flavors. The monks make the caffeinated and decaffeinated ground coffee of many varieties like medium, dark and high roast coffee. The coffee also comes in flavors namely the Mystic Monk Blend, Royal Rum Pecan, Mystical Chants of Carmel and Cowboy Blend (Mystic Monk Coffee). There is also the fear that its expendable net revenue lacks the capacity to create $8. 9 million in incomes under a realistic period without forgetting the end goal which is to make it conceivable to buy the arranged property. Furthermore, MMC does not have a basic strategy for success and stratagem so it winds up restricting its capacities. Limited business knowledge From the case study, the monks have little knowledge about business.
Among them are some who worked as carpenters, cooks, mechanics and secretaries. This is a weak strategy to market products in today’s competitive world (Mystic Monk Coffee). By limiting their advertisement to word of mouth, they are missing out on attracting a large number of customers who love high-quality coffee and would try to purchase. 2 External opportunities and threats. 1 Opportunities MMC has a number of opportunities it can adequately use to transform its generally simple objectives to long term one ( Stilley, 2013) Power of buyers The power of the buyers is very high. According to the case study, the number of people who drank coffee was about 150 million and 89% preferred to drink home-made coffee. 2 Threats Level of rivalry MMC is exposed to some dangers that must not be over looked.
When the competition is high it is hard for a company to generate profits. Mystic Monk Coffee may face competition small coffee brewers who are selling the same brand of coffee is a threat. Some customers may buy coffee from these small brewers because all they want is coffee, and since they are not aware of the idea of supporting the Carmelite Monks to buy the ranch they buy the ones available to them. Mystic Monk also faces competition from other well established companies like McDonalds and Starbucks. The monks; life is dedicated to prayer and worship. Therefore, most of time is spent on these activities and less time left for the production of coffee. The monks cannot spare any extra time for production otherwise they look materialistic.
The coffee roaster that they currently have can only produce 540 pounds in a day. This might be a hindrance to the large production of coffee that may be required to be produced in case demand goes up. According to the case study, they have a vast number of consumers whom they can sell to and who drink coffee. About 150 million of Americans drink coffee while 30 million prefer drinking the premium specialty coffee. This is a significant market that they can sell to. Besides, their target market is the Catholic population which has about 69 million people. The number of Catholics alone who they hope will buy their coffee to support their mission is very high. Functional level strategies, on the other hand, are designed to deal with specific functional areas such as marketing, human resource, and marketing(Markgraf,).
The vision of Father Daniel is to acquire a bigger piece of land that will accommodate “13 monks to broaden to a level that can accommodate 30 monks, build a Gothic church, convenient for the Carmelite nuns and a retreat center for those who visit the ranch” (Travis). The mission of the brotherhood is to produce high-quality coffee that will be sold to the Catholic population who consume coffee and are willing to support the vision. To promote their product, the monks are urging the Catholics through their website to “use their Catholic coffee dollar for Christ and his Catholic church. ” The objectives of the company are to raise funds to be able to buy the ranch that is worth $8. They also rely on their website to make sales as the avenue through which most sales are made.
A few orders are also sold through telephone calls. This strategy is a poor strategy for the monks since reaching most of the population will be hard. There may be many people willing to buy the coffee but are unaware of how to get it. They need to make use of more competitive strategies like the use of social media marketing and advertisements. They also depend on the sale of their coffee to get funds. CHAPTER 3 3. 0 Conclusion and recommendations 3. 1 Recommendations 3. 1 Business level recommendations Product line extension Any plan of action involves a methodology that indicates how the industry will make a benefit. Through the apps, customers will be able to access the products of the company and make orders for what they want because there will be provision of price tags.
Increase in skilled workforce The monks lack knowledge about business which is a hindrance to the growth of the company. They need to hire more human resources who are knowledgeable about running the business. They need someone like a marketing manager, human resource manager, finance manager among others. They need sales and marketing people who will market the products and win more customers. 2 Conclusion Mystic Monk Coffee is a company that has potential to grow if right strategies are put into place. Their weaknesses lie on their marketing strategies. In the modern market which is very competitive, they need to have a clear plan to achieve their goal of buying the ranch. From the case study of Mystic Monk, it is clear that there are many areas that a firm need to look at in order to increase profits and gain competitive advantage.
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