Suggestions to Mystic Monk Coffee

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From this Case ,we could infer that Daniel has ambition to expand the scale of coffee bar. From the small scale of 13 monks into 30 monks. Although a small town of Cody owned a foundation for the monks ' issues. As we produced more volume, it also push up our cost. Considering the 89% of coffee consumers will prefer to brew their coffee at home instead of buying a boiled coffee in a shop . The demanding for ready-to-take coffee is limited . Meanwhile, the amount of competitors supplied a alternative products. Under such circumstances , Mystic Monk Coffee dropped low-price strategy,all the coffee beans was produced using high-quality fair trade Arabica and fair trade/organic Arabica beans. To enjoy organic, shade-grown, or fair trade coffee ,high-income consumers are more likely to pay higher price for product premium.Due to their personal health or social concerns, they choose organic coffees which were grown without the use of synthetic fertilizers or pesticides. So in conclusion，Mystic Monk Coffee choose differentiation strategies as their corporate strategies.

Constantly offering superior products and more comfortable service are crucial to differentiation strategies. To meet the unique needs of target consumers, corporate need to make operating decision---narrow down the product line,and guarantee the demanding of target customers. How to judge a corporate’s differentiation strategies ? It depends on two dimension : 1) Does the company delivery the most unique or suitable products? 2) when compete with the massive competitors, Does the company own the ability to beat other rivals . Considering such reasons, differentiation strategies hardly get succeed during fiercely competition.It is always be suspected or copied by other rivals. We put large of money in R&D development .But soon,our new products were easily being imitate by others .Even then ,they sell the products with lower price ,so the new products are time-consuming ,and difficulty to be highly-profitable.Meanwhile,it is hard for buyers to seek the inner properties of a product, so the operating of differentiation strategies may not be stable at the beginning .Anytime,buyers are indifferent towards differentiation strategies of a corporate.They only concern whether the products could provide the sufficient value.

 Just like the example of Popchips’s Focused Differentiation Strategy ,Find a way to balance the delicious of chips and low-fat ,contained them into delicate packages. Turpin find its target  consumers--the upper income with healthy awareness .They are eager to stand out from the Large-capacity potato chips ,such as lays and Pringles., concentrate on a small percentage customers with sufficient purchasing power.

Problems ：

Without doubt ,differentiation strategy is play a important role when a corporate involved in a  fierce marketing competition. But differentiation strategy means to drop off some market share  and ignore inconspicuous customers. Mystic Monk Coffee's strategy isn't a money maker. From financial performance perspective, The revenue achieved a relatively high level , around 56 thousand per month. But the net profit of monk coffee isn't a satisfied result. The cost and  operating expenses account for major of the total revenue.

Differentiation strategy is also easily be occupied by other companies. And the latter competitors,with out massive R&D  input. They may get large market share by lower prices. On the contrary,if the company want to deliver superior products constantly. Which will lead to additional cost.

Suggestions:

Xinxing temple which located in Tokyo, settled a well example for Mystic Monk Coffee. This temple provides a model for other coffee temple. Mystic Monk coffee may imitate this temple to reach the goal —-attracting specific customers. They can provide the pray service for VIPs. Or holding some religious cultural seminar or yoga class for customers. With a certain amount of comsuption, You may enjoyed these additional services .

To seize customers' attention, special foods should be survived on specific days, what is more ,when the capability of the corporate ,the owner should stick on perusing good quality and better customer service. All of these make a significant contribution to build customers loyalty.

From the formula of ROI ,we concluded that we are supposed to boost profits ,and squeeze the cost. To cut down some unnecessary expenses.

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