Words: 3841
We have tried our est. to Meltzer errors to extent possible ways by consulting colleagues and web pages. Synopsis: Himalayan Java is the first Specialty Coffee house in Nepal, which excels in quality and customer service. Himalayan Java has now been doing business in Katmandu since 1999, and over the past fourteen years the company has grown and progressed in many areas. Himalayan Java coffeehouse is designed to promote coffee drinking and provide a unique, relaxing, comfortable, clean environment for customers.
Himalayan Java introduces to the bounty of Himalayas through their own production of coffee beans from Kavas and many other places. Besides offering a coffee experience like no other, they also provide decent and steady employment for the local farmers who have come together in offering their finest harvest. In Nepal, coffee is predominantly consumed in the form of imported instant coffee, which is easy to prepare. The consumption of Nepal/filter coffee in Naples society is so far limited to elite groups.
The present situation of the domestic market is not stable, and it is highly dependent on the number of tourists visiting Nepal. The sale of Nepal coffee varies proportionately with the increase or decrease in the number of incoming rigorists. Since their business is not associated with business buying behavior and their strong core belief of socially responsible entrepreneurship, their mission is to promote the fledgling Naples coffee industry by investing in people from producer to consumer, and to promote locally grown coffee to the international market.
They state that they are “proudly serving socially responsible coffee”. Java provides reward cards for its customers. “Buy 7 gets the 8th free” is the reward they provide. Coffee cards are to be collected and stamped to get the 8th one free. Also, all the outlets eave access to wireless connections which is an added benefit for the customers. Such facilities provide have placed Java apart from its competitors and has created an advantage for them. Customers have perception of high brand value and premium quality for Java.
Customers experience Himalayan Java’s freshly roasted coffee brewed to their exacting standards and made by skilled baristas. All of the espresso drinks are crafted by hand. The espresso coffee is grinded Just before brewing and the milk is never re-steamed. Java’s major products are coffee (iced coffee, blended fusion, espresso) and bakery teems (croissants, pasta). For them, it is not the worry how to make the best sell of the coffee and other bakery items; but they are concerned in finding the right customer to whom they can be loyal and in return can get large shares.
So, their main objective is to earn profit but by satisfying the customers need. For them satisfying customers using high price along with high quality is the most. So, they give priority to good value pricing. Himalayan Java uses newspaper advertising. It promotes its product through Nepal Times daily newspaper and Boss Nepal Local. Himalayan Java has many competitive advantages like low competition in organic coffee, has strong brand recognition. It is known for the premium quality.
But in the contrary, Naples still prefer tea to coffee, ability to provide fertilizers due to lack of infrastructure. When customers seek to have some coffee and they choose Java, they are looking for things that go beyond the actual coffee that they intend to drink. They are selling satisfaction through their originality. Himalayan Java has been providing the highest quality fresh coffee in an appealing environment and has promised to do so in the future as well. Himalayan Java in Katmandu has become a landmark and very popular local Naples coffee chain.
Introduction to Java in many areas. Over the past fourteen years it has become evident that the majority of their clients are coming to Java for their coffee beverages and pastries some delectable Naples style specialties. Himalayan Java in Katmandu has become a landmark and very popular local Naples coffee chain. Mission Statement and customer service. Our mission is to promote Naples Coffee industry by investing in people from the grower to the consumers, and to promote local grown coffee in international market.
Objectives of Himalayan Java Himalayan Java coffeehouse are designed to promote coffee drinking Provide a unique, relaxing, comfortable, clean environment for customers to escape from the pressures of the outside world and drink coffee beverages, meet friends in totally different atmosphere Company’s Marketing Environment Company’s market environment consists of the actors and forces outside the marketing that affect marketing management’s ability to build and maintain successful relationships with target customers. Company’s environment can be differentiated major in two types: Micro Environment
Micro Environment Consists of actors to the company that affect the ability to serve its customers such as the company, suppliers, marketing intermediaries, customer markets, competitors, and public. Macro Environment consists of the larger societal forces that affect the micromanagement such as demographic, economic, natural, technological, political, and cultural. Java’s Micromanagement The Company: for Java, while designing the marketing plans, marketing management takes other company groups into consideration such as top management, finance, research and development, purchasing, operations, and accounting.
All of the groups must keep “consumer” as the “center point” and work in harmony to provide superior customer value and relationship. The Suppliers: the coffee seeds production in the early year of the business was low in quantity as well as quality. In order to become a leading coffee house it was very important for Java to consider its supplier thus, they moved to production of the seeds as well, maintain the quality. Thus they are their own suppliers. The Marketing Intermediaries: helps the company to promote sell and distribute its product to final buyers. Java have collaborated with Civil Mall, Bluebird
Mall , Star Mall, Mocks Restaurant to reach out to the final consumers. Competitors: Marketers must gain strategic advantage over their customers by positioning their offerings strongly against competitors’ offerings in the minds of customers. Himalayan Java is a large company with various outlets at various locations in Katmandu; it has used strategies which has positioned itself as one of the leading organic coffee house. Publics: The General Publics of Java are the Naples people and the tourist; the company gives a good amount of concern about the general publics attitude towards its activities and products.
The publics image towards the company affects its buying. Internal Publics such as workers and managers are the one who need to be motivated to do their Job in best possible way. Because when employees feel good about their company, the positive attitude can spill over to external publics. Customers: Java’s only target market is the Consumer Market which consists of individuals and households that buy goods and services for their personal consumption. Java’s Micromanagement Demographic Environment: The changing needs of the growing population has become helpful for Java.
Java was the sole company to promote coffee rather than tea s a habit in local people and it has been successful enough to achieve its objectives because as the data suggests larger amount of population now have a habit of having coffee. Economic Environment: Due to global financial crises, Java changes its pricing policy and this crisis directly affects the consumer buying behavior. Similarly changing income distribution and consumer spending patterns also affects the share of population Java has as its customer. Increase in income of middle class people make them prefer Java, thus making it more popular.
Natural Environment: Java must e aware of trends in the natural environment which may lead to shortages of raw material and increased pollution. As Java produces its own coffee beans and needs to maintain its supply very closely, any shortage of raw materials may lead to downgrading the company’s image. Similarly, production of coffee leads to lots of waste creation which needs to be maintained by the company itself for the betterment of the environment. On the other hand, with increased government company which marketers must understand.
Technological Environment: Java keeps in mind that the technologies recently developed is hygienic and safe and then insults with its IT department. It adapts to the changing technologies and brings in high quality machines such as roasters, grinders, espresso machines and commercial urns through Amoco Trading. Cultural Environment: the shift in secondary cultural value I. E. Having tea for breakfast as a habit has been shifted to having coffee. This shift was solely promoted by Java and thus has gained its brand image among the general public.
Consumer buying behavior since 1999, and over the past eleven years the company has grown and progressed in many areas. And it target to the tourists, expatriates and higher income Naples. In Nepal, coffee is predominantly consumed in the form of imported instant coffee, which is easy to prepare. The consumption of Nepal/filter coffee in Naples society is so far limited to elite groups. The present situation of the domestic market is not stable, and it is highly dependent on the number of tourists visiting Nepal. The sale of Nepal coffee varies proportionately with the increase or decrease in the number of incoming tourists.
Though quality of coffee produced in Nepal has potential both for domestic and international market. Types of buying decision behavior Variety seeking buying behavior: Himalayan Java’s managers must not think of one time business. They must provide comfort enough by making people habituated to that place. They are successful to pull customers from other coffee house. C) The factors that influence consumer decision to visit Himalayan Java are given below: Economic concern: Nepal is not classless society. People’s income is major determinant of their class.
Here coffees are expensive and only elite group can afford the service of Java. Those who have good income, saving and assets can make my decision to visit here. Personal concern: During past years, coffee was more of British and American culture. Nowadays it is popular among affluent group for both male and female. They are smart enough to match their life style with coffee culture. In fact customers of all age groups go to Java to escape from the pressures of the outside world and drink coffee beverages, meet friends in totally different atmosphere.
Psychological concern: People have started to learn and experience the taste of organic coffee in Nepal. Himalayan Java has now been doing business in Katmandu since 1999, and over the past fourteen years the company has grown and progressed in many areas. Consumers felt that our coffeehouse have been successful in reaching its goals and objectives. It helps to build the brand loyalty and equity among consumers. People are motivated to come here to have a unique, relaxing, comfortable and clean environment.
They believe in the quality of the coffee beans and perceive no risk for regular visiting the Himalayan Java. Consumers are found to match the brand personality to their different trait personalities. Himalayan Java designs and atmosphere often strive to create positive feelings and attitudes through presentation of pleasant surroundings. Socio cultural factors: Reference group influence consumers buying decision from information, norms, conformity, values through developing a link between Java and the referent lifestyle.
Other consumer follows the coffee culture in order to identify himself with the referent. To drink coffee is taken as decent behavior in Nepal. Everyone admires person to have sip of coffee with lots of conversation with families, friends and relatives. Himalayan Java offers expensive quality time to only affluent and upper middle income group thus it is not target to other economic group. Cultural and sub culture influences: Culture also determines what is acceptable with product advertising. Culture determines what people wear, eat, reside and travel.
Cultural values in the Nepal are good health, education, quality time, patriotism and respect seniority. In Naples culture time scarcity is a growing problem. It has impact in taste of people as well comparing to past days. People have started to becoming workaholic like in western culture. Due to this coffee business has good opportunity to capture customer value where they can relax and manage time for their loved ones for some hours by having cup of cappuccino with them. Decision making process: Need recognition: People who want to have the taste of organic coffee produced in
Nepal. The customer identifies that he has unsatisfied need that to be satisfied. For this the need is to go to the coffee house to feel the difference from having the same coffee at home. Information search: This is the step where consumers start to search information about their product. Information from various sources like internet, magazines, television and websites. It leaves them with possible alternatives. They can gather information of beans, hot coffees and Himalayan Java itself.
Evaluation of the alternatives: In the evaluation stage they rank brands and form purchase intentions. Marketers should study how they actually evaluate the brand alternatives to influence them in decision making. Consumers now evaluate the coffee house in terms of price, place, structure, performance, location and quality of the coffee. Purchase decision: In this case, after evaluation of the various alternatives, if they find the Himalayan Java the appropriate place to rest , relax and have taste of organic coffee then they come to Java.
It might be due to location, right price and soothing environment where they decide to visit the Himalayan Java. Post purchase behavior: This is where the consumer holds a positive feedback about the product and satisfied with it or where the consumer holds a negative feedback about the product. In this case consumer also recommends their friends and relatives to visit as he is satisfied with all the services provided in the Himalayan Java.. Local farmers who have come together in offering their finest harvest.
Nurtured on rich nutrients drawn from pristine Himalayan soil, fine organic coffee is free from chemical fertilizers and harmful pesticides. Since their business is not associated with business buying behavior and their strong core belief of socially responsible entrepreneurship, their mission is to promote the fledgling Naples coffee industry by investing in people from producer to consumer, and to promote locally grown coffee to the international market.
For this Himalayan Java product no business buying behavior exists, therefore research could not be taken further for business Market segmentation: Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively with products. The various segmentations include: 1 . Geographic segmentation: World, region or country- Nepal City or metro size- major city Density- urban Climate- Mediterranean 2. Demographic segmentation: Age- under 6, 6-11, 12-19. 0-34, 35-49, 50-64, 65+ Gender- male, female, third gender Family est.- 1-2, 3-4, 5+ Family life cycle- young, single; married, no children; married with children; single parents; others Income- deprived, aspirer, seekers, strives Occupation- professional and technical, managers, officials, craftspeople, farmers, students, homemakers Education- illiterate, literate but no formal schooling, diploma, graduate, professional Religion- Hindu, Muslim, Christian, Buddhist Nationality- Nepal 3. Cryptographic segmentation:
Social class- lower lowers, upper lowers, working class, middle class, upper middle, lower uppers, upper uppers Life style- achievers, strives, survivors Personality: compulsive, gregarious, authoritarian, ambitious 4. Behavioral segmentation Occasions- regular and special occasions, holidays, seasonal Benefits- quality, service, economy, convenience, speed User status- non user, potential user, first time user Attitudes toward product- enthusiastic, positive, negative, indifferent, hostile Targeting: 1.
Geographic targeting: City or metro size- Thames, Katmandu Age- 15-19, 20-34, 35-49, 50-64, 65+ parents; others Income- seekers, strives aplomb, graduate, professional Religion- Hindu, Muslim, Christian, Buddhist Nationality- Nepal and tourists Social class- middle class, upper middle, lower uppers, upper uppers 4.
Behavioral segmentation economy, convenience User status- non user, potential user, first time user, regular user Attitudes toward product- enthusiastic, positive, negative, indifferent Evaluating market segments: In evaluating different market segments, Java must look at three factors: segment size and growth, segment structural attractiveness, and company objectives and resources. It will be interested in segments that have the right size and growth heartsickness. Java also needs to examine major structural factors that affect long- run segment attractiveness.
For example, a segment is less attractive if it already contains many strong and aggressive competitors. Even if a segment has the right size and growth and is structurally attractive, the company must consider its own objectives and resources. Some attractive segments can be dismissed quickly because they do not mesh with the company’s long-run objectives. Or the company may lack the skills and resources needed to succeed in an attractive segment Selecting Target Market Segments Target market is a set of buyers sharing common needs or characteristics that the company decides to serve.
The major costumers of Java falls under Concentrated (niche) marketing. It is a market-coverage strategy in which Java goes after a large share of one or a few segments or niches. Differentiation Beyond deciding which segments of the market it will target, the company must decide on a value proposition-??how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments. A product’s position is the way the product is defined by consumers on important attributes-??the lace the product occupies in consumers’ minds relative to competing products.
Products are made in factories, but brands happen in the minds of consumers. Himalayan Java serves its customers under the strategy more for more. The quality is premium, there are added benefits and the price is also higher than usual. That is the reason the targeted customers are basically from the upper middles and above. Java has differentiated itself from other competitors because it is one of the few coffeehouses that sell organic coffee. Till date, only Cafe Kali has been in competition for Java regarding the sale of organic coffee.
Even the cafes through which Java operates are specially designed to provide unique, relaxing, comfortable, Positioning Product position is the way the product is defined by consumers on important attributes-??the place the product occupies in consumers’ minds relative to competing products. Consumers position products with or without the help of marketers. And this especially applies in the case of coffee markets. But marketers do not want to leave their products’ positions to chance.
They must plan positions that will give their products the greatest advantage in selected target markets, sand they must design marketing mixes to create these planned positions. And Java has done some work on amplifying its position. Choosing the Right Competitive Advantages Competitive advantage is an advantage over competitors gained by offering greater customer value; either by having lower prices or providing more benefits that Justify higher prices. Java has adopted the strategy of more for more. They are selling satisfaction through their originality.
Himalayan Java coffeehouses are designed to promote coffee drinking and to provide a unique, relaxing, comfortable, clean environment for customers. They state that they are “proudly serving socially responsible coffee”. Java provides reward cards for its customers. “Buy 7 get the 8th free” is the reward they provide. Coffee cards are to be collected and stamped to get the 8th one free. This is valid at all Himalayan Java outlets (only for hot beverages). Also, all the outlets have access to wireless connections which is an added benefit for the customers.
Such facilities provide have placed Java apart from its competitors and has created an advantage for them. Positioning Statement: Positioning the company calls for concrete action, not Just talk. If the company decides to build a position on better quality and service, it must first deliver that session. The positioning statement of Java is: “To our customers, Java is the first specialty coffeehouse that invests in people to the grower to the consumers to promote local grown coffee in international market”. And Java is living up to what it had promised.
Whether it is through its differentiation or with its positioning, Java has been able to create a brand value for itself in the minds of its customers. Product Product can be defined anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need. Java’s major rodents are coffee (iced coffee, blended fusion, espresso) and bakery items Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything is known to be a service.
Java provides an outstanding service for its customers which has created an even better customer value. Levels of product and services: At first level, Core Customer Value addresses the question What is the buyer really buying? In the case of Java, when customers seek to have some coffee and they choose Java, they are looking for things that go beyond the actual coffee that they intend to drink. They are selling satisfaction through their originality.
Himalayan Java coffeehouses are designed to promote coffee drinking and to provide a unique, relaxing, comfortable, clean environment for customers to escape from the pressures of the outside world. At the second level, the product planner must turn the core benefits into actual products. The actual product of the Java is coffee beverages. Customers have perception of high brand value and premium quality for Java. Customers experience Himalayan Java’s freshly roasted coffee brewed to their exacting standards and made by skilled baristas. All of the espresso drinks are crafted by hand.
The espresso coffee is grinded Just before brewing and the milk is never re-steamed. They state that they are “proudly serving socially responsible coffee”. Finally, product planner must build an augmented product around the core benefit and actual product by offering additional customer service and benefits. Java provides reward cards for its customers. “Buy 7 gets the 8th free” is the reward they provide. Coffee cards are to be collected and stamped to get the 8th one free. This is laid at all Himalayan Java outlets (only for hot beverages).
Also, all the outlets have access to wireless connections which is an added benefit for the customers. Products are classified broadly into consumer and industrial products. Consumer products are bought by final consumers for personal consumption whereas industrial product is a product bought by individuals and organizations for further processing or for use in conducting a business. For Himalayan Java, the coffee beans from the farm come under industrial product for them and when the processing is done and the actual IANAL product is brought out, it is the consumer product.