Submitted by: Submitted by aston1119
Views: 173
Words: 300
Pages: 2
Category: Business and Industry
Date Submitted: 07/08/2013 07:33 PM
Target market characteristics
The Coffee Bean & Tea Leaf is targeted the youth, who are teens and working adults in their twenties. This has become a weakness for the firm. The Coffee Bean and Tea Leaf aligns itself with other major brands targeting the youth market. This may lead it to lose some potential market. For example, Dome’s positioning is “expensive and exclusive” as its target market is the professionals, managers, executives and businessmen (PEMBs). But the Coffee Bean & Tea Leaf’s. Target market is the youth and who didn’t have strong consumption power. In the other hand, Mc-Donald’s target market is children and teens. Both of the target market for the Coffee Bean & Tea Leaf and Mc-Donald’s are sensitive to the price issue. Mc-Donald’s positioned the restaurant well in the target market by a competitive pricing strategy. This pricing strategy likes a threat for The Coffee Bean & Tea Leaf. The market share and profit for The Coffee Bean & Tea Leaf are limited.
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Franchisee’s policy
The Coffee Bean & Tea Leaf does not allow its master franchisees to sub-franchise any of their outlets in the Middle East and Asia. The reason is attributed largely to the limited size of the specialty coffee industry in these markets. The Coffee Bean & Tea Leaf is targeted at specific niche markets rather than the general public. Therefore, coupled with the high cost of rent, franchisees will not able to be financially viable if the ownership is limited to one or two stores. To be a master franchisee of The Coffee Bean & Tea Leaf, One must possess the following characteristics: it must be a public company; it must demonstrate that it has the fund and infrastructure to open among 30 to 40 outlets and it also must be currently running a successful business.