S w
9B09A014
M ARKETING PLANNING AT JUST US! CAFÉS1
Sara Loudyi, Julia Sagebien, Normand Turgeon and Ian McKillop wrote this ca solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguid certain names and other identifying information to protect confidentiality.
Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 661-3882; e-mail cas@ivey.uwo.ca. Copyright © 2009, Ivey Management Services Version: (A) 2009-08-26
On the morning of November 11, 2008, Jeff and Debra Moore, founders of Just Us! were about to hold
their first meeting with Juliet, recently hired to fill the new position of marketing director. Juliet had come to Just Us! from a well-established company in the food industry in the Maritimes, where she had been brand manager for a line of gourmet instant coffees. Though her ri in the company had been swift, after veral years in the same position she felt it was time to pursue other challenges. The Moores had been arching for a new marketing director and had heard about Juliet from a mutual friend. They arranged an interview and were extremely plead with her prestigious business school degree, outstanding knowledge of the coffee market and strong marketing background. Juliet felt that even though she did not know much about the fair trade market, this was exactly the kind of challenge she had been eking.
The Moores and the nior staff at Just Us! had been working for some time to compile the information Juliet would need for a smooth transition to her new position. Jeff Moore opened the meeting: First of all, we would like to welcome you to our team. We are very excited to have you
with us and we want to make sure that you quickly feel that you belong here. Just Us! is
more than a brand, it’s an ideology. Since our beginnings in 1996, we have become more
than a fair trade coffee cooperative, wholesaler and retailer. People in Nova Scotia know
who we are and what we stand for. Our sales are growing and we are, more than ever,
making a difference with our investments in the producers and in the local community. All
the same, we did face some issues with our cafés2 and we hope that you will be helpful in
that area. But first let me tell you a little bit about fair trade.
龙眼和桂圆的区别
1 This ca is partly bad on material found in the ca Just Us! Coffee Roasters (Ivey product #9B06A027), by Julia Sagebien, Scott Skinner and Monica Weshler, published by Ivey Management Services, 2006.
2 Coffee hous.
WHAT IS FAIR TRADE?
The Canadian Fair Trade Market
Fair trade is an alternative approach to conventional international trade that eks greater equity. Producers, traders, buyers and consumers work together to form a trading partnership that provides
a more equitable and sustainable form of exchange. The Alternative Trade Organizations (ATOs) buy directly from Third World producers, leaving out the middlemen. They pay the producers a fair price, and help them develop trading experience as well as market contacts. They also enter a long-term partnership.3 Through this arrangement, producers are able to rai their incomes, reduce their dependency on commercial middlemen and invest in community development. To become fair trade certified, an importer must meet stringent international criteria. The include paying a minimum guaranteed price directly to the producer cooperatives4 and providing much-needed credit to farmers along with technical assistance (such as help transitioning to organic farming).
Organizations like the Fairtrade Labelling Organizations International (FLO) and TransFair have been instrumental in promoting fair trade. In 2008, Canada imported fair trade certified products from 59 source countries. The number of producers and the range of products are growing annually.5 The fair trade certified product offerings often include cocoa and cocoa products, coffee, cotton, flowers, fresh fruit, rice, honey, shea butter, quinoa, spices, sports balls, sugar, tea and wine.6 There are also hundreds of composite products with fair trade certified ingredients. In addition, consumer interest in ethical products is allowing the fair trade market to break into niches like ethical fashion, where trendy clothes are made from fair trade and ecological fibres.7
赞美桂花香的诗句TransFair Canada reported “exponential growth in the sales of coffee, tea, sugar and rice, spectacular starts to new products such as flowers, wine and cotton and strong reintroduction of bananas in the Canadian market.”8 Canadian consumers contribute significantly to the success stories. They have become more aware of the benefits of fair trade and are increasingly willing to change their shopping habits in order to be part of the solution to global trade inequities (e Exhibit 1). There were threats to the fair trade movement, however, including wild swings in commodities markets, which resulted in record high prices for food and oil, the former affecting the cost of the primary products and the latter the cost of fertilizer and transport. The move towards lesning the carbon footprint of foods also suggested a shift in green consumer preferences towards “local” foods and away from foods transported from distant regions.
The Ethical Consumer
The Canadian fair trade market is steadily gaining support from increasingly knowledgeable consumers who demand a wider and finer range of products. The market is not going mainstream yet, though it is certainly emerging as an attractive submarket of customers with very specific needs.9 Besides requiring high quality products, consumers want to know the story behind the products. They want to be reassured that suppliers also benefit from the exchange and that the impa
ct on the environment is not negative.
3 transfair.ca/en/standards, accesd May 14, 2009.
4 Ibid.
祝贺新年
5 transfair.ca/en/sourceproducts, accesd May 14, 2009.
6 Ibid.
/mode-et-eco-design/resultat-d-une-etude-sur-la-mode-ethique-au-canada.html, accesd May 14, 2009.
8 transfair.ca/sites/transfair/files/TF_2007_2008_AR_BL_final.pdf, accesd May 14, 2009.
9 /article/0/publication--lesaffaires/2008-11-08/485158/des-produits-equitables-et-profitables.fr.html, accesd May 14, 2009.
The ethical consumer is typically young, educated and willing to pay a premium for fair trade products.10 A 2008 study sponsored by The Body Shop showed that 34 per cent of participants bas
e their purcha decisions on the ethical behaviour of companies.11 Activists in the fair trade movement are convinced that more consumers would prefer ethical products if they were better informed. The Internet has been a great tool for increasing awareness of fair trade products, along with initiatives that enhance positive word-of-mouth.12
COMPANY BACKGROUND
Jeff and Debra Moore both had a background in social work and community development in the Maritime provinces of Canada — Nova Scotia, Prince Edward Island and New Brunswick. For many years, Jeff also worked in adult education, notably at Acadia University in Wolfville, Nova Scotia. At a crossroads in 1995, Jeff embarked on a journey to Cuba, Mexico and Guatemala. While in Cuba, he committed himlf to finding ways to help the Cuban economy at a time when the country was experiencing a vere economic downturn triggered by the collap of the Soviet bloc, its main trade partner. He realized that he could best help Cuba by arching for new market opportunities for some of the island’s products, such as coffee. As Cuba already had a good market for its coffee in Japan, Jeff began to delve into other markets. This exploration took him to Mexico, where there were other possible sources of direct and fair trade coffee from small-scale producers. Jeff returned to Canada with a cured business relationship with fair trade farmers in Oaxaca, Mexico. He subqu
ently imported his first shipment of fair trade coffee to Nova Scotia.
怎么做葡萄酒On March 7, 1996, Just Us! was incorporated under the Co-operative Association Act as the first fair trade coffee roaster in Canada. Jeff came up with the name Just Us! as a play on the word “justice” and as a way to show that they were a worker-owned co-op that believed in “people and the planet before profits.” The company emerged as a worker-owned and -operated for-profit coffee co-operative that imported, roasted and sold wholesale and retail fair trade, organic coffee from fair trade certified coffee producers around the world. Its vision was “to be a leading Fair Trade business that builds on quality, professionalism and innovation for the benefit of all our stakeholders.”13
The company’s mission statement14 was:
•To be a viable, progressive and leading Fair Trade business which rves as a model for worker (community) ownership and social and environmental responsibility.
•To rve our customers by giving them the best possible value, rvice and information.
餐饮业税率•To rve the interests of Fair Trade producers by developing personal and long-term relationships that would adhere to the basic principles of Fair Trade, but more than that, would strive to help the indigenous communities move beyond the poverty level.
•To develop relationships among our co-op members, employees, business associates and the broader community bad on honesty and respect and to maintain an ongoing commitment to education, innovation and collaboration.
/mode-et-eco-design/resultat-d-une-etude-sur-la-mode-ethique-au-canada.html, accesd May 14, 2009.
11 /press-relea/The-Body-Shop-893831.html, accesd May 14, 2009.
12 Ibid.
13 /2009.aspx, accesd May 14, 2009.
14 Ibid.
Just Us!’s beginnings were very humble: the first co-op members invested only $2,500. Jeff and Debra had to put a mortgage on their hou; Just Us! also cured a loan from a local bank. The co-op could then afford to purcha a hou for the location, a roasting machine and all the equipment needed for a small coffee shop. Another problem they faced was that neither Jeff nor Debra had experience in the coffee industry or in the management of a coffee-roaster plant or a coff
ee shop. To cope with the steep learning curve, Debra took business class at local universities. She was named Just Us!’s CEO and put in charge of everyday operations. Jeff trained to become a “Roastmaster,” and took the role of development manager — the person in charge of growing the business. In 2009, Just Us! was a well-known co-operative in Nova Scotia, with 69 employees and a management team of nine.15 The business structure had also evolved: instead of concentrating decision making in place for many years, the co-operative formed functional departments with distinct responsibilities (e Exhibit 2).
Since its inception, Just Us! had experienced healthy growth, created jobs in the community and invested in environment-friendly actions.16 It had also built strong consumer loyalty and interest in its products, activities and philosophies. The company’s fair trade product line had grown to include coffee, teas, sugar and chocolate. Its renovated location in Grand Pré, Nova Scotia, had an “environmentally friendly” manufacturing facility, coffee shop, gift shop and fair trade muum that included a multimedia room lit by solar panels.
CORPORATE VALUES
Just Us! had a strong value system. The company fostered social and environmental responsibility, s
ustainability and ethical practices in all areas of the business and in all stakeholders. Just Us!’s management believed that its mandate included helping develop, support and grow the fair trade market for producers. To nurture co-ops, the company t aside 10 per cent of its profits and, in the Grand Pré headquarters, opened a fair trade coffee muum to educate consumers about the benefits of fair trade. Co-op growers loved the idea and were impresd to e that the space was being ud for education rather than for additional coffee shop sales. In order to show its support, Just Us! occasionally carried products with thin margins, such as tho of “Breaking the Silence,” a network of people committed to solidarity work in Guatemala, a country that had suffered heinous human rights abus.
In 2005, Jeff and Debra started Just Us! Development & Education Society (JUDES), a non-profit organization that strived to rai awareness about “social and environmental issues related to international development, the benefits of fair trade, and the power of each consumer to make a difference.” JUDES was accountable for the creation of the Just Us! muum, and worked with other fair trade and development organizations to promote conscious consumerism and responsible development.17 In doing so, it provided documentary and educational activities for schools and various organizations.18
Just Us! also had a tradition of successfully involving community organizations in its production process. “The Flower Cart,” a provider of vocational rvices for mentally challenged adults, helped with product labelling and bagging tea and sugar for many years.
Jeff and Debra had received veral awards for their work, including the prestigious President’s Entrepreneurial Award from Acadia University. This award was given annually to recognize business in
15 /Resources/Docs/annual%20report%202008a.pdf, accesd May 14, 2009.
16 Ibid.
17 /developmenteducation.aspx, accesd May 14, 2009.
背单词英语18 www.judesfairtrade.ca/activities/, accesd May 14, 2009.
Atlantic Canada that exemplified not only entrepreneurship but also social and environmental responsibility. Furthermore, Just Us! won the annual Human Rights Award by the Nova Scotia Human Rights Commission and the Maritime Business Ethics Award by the Better Business Bureau.
SALES GROWTH拥抱的温度
Fair trade sales had been increasing from year to year in Canada. Jeff and Debra had successfully found new business opportunities while remaining true to fair trade and organic models (i.e. social and environmental responsibility, premium quality19). Jeff believed that this model of doing business provided the co-operative with a distinct product differentiation, thereby giving it a clear market advantage over its competitors (e Exhibit 3).
JUST US! PRODUCTS
Just Us! offered a large variety of certified organic and fairly traded products, all certified by the Fairtrade Labelling Organization, for which TransFair Canada acted as the local reprentative. Organic Certified Producers and Processors (OCPP) also certified the manufacturing plant in Grand Pré organic. Just Us! products were distributed through grocery chains, health food stores, universities, restaurants and coffee shops across Canada, as well as in the United States.
Coffee
Coffee was the backbone of sales at Just Us! Owing to its small size, the business could cloly mo
nitor the quality of the product at each stage of the production process: from the arrival of green coffee to the shipping of fresh, roasted product. Premium quality coffee was purchad directly from fair trade co-operatives in more than 11 countries including Mexico, Peru, Guatemala, Bolivia, Indonesia, and Colombia. To ensure the freshness of the product, only small batches were roasted, packaged in the plant and nt to customers.20 Roasts ranged from light to dark, with a decaf and a green beans line.21 Just Us! regularly launched new specialty lines. Most of the coffee lines were available for wholesale orders.
Tea
The teas were grown in Sri Lanka, in the world’s first certified organic tea garden, as well as in India and Ecuador. Just Us! offered premium quality lines of Ceylon, green, Earl Grey, chai, lemon-honey and caffeine-free teas.22
Other Products — Chocolate and Sugar
Rearch showed that fair trade chocolate was following the same upward sales trend as specialty coffee. To capitalize on this vigour, Just Us! built a small chocolate factory in Hantsport, Nova Scotia, where organic cocoa from fair trade co-operatives in Bolivia and the Dominican Republic was transfo
rmed.
鳄梨19 /Products.aspx, accesd May 14, 2009.
20 /coffeeroastery.aspx, accesd May 14, 2009.
21 /coffee.aspx, accesd May 14, 2009.
22 /Tea.aspx, accesd May 14, 2009.
