Mystic Monk
Autor: krick8 • February 29, 2016 • Case Study • 579 Words (3 Pages) • 817 Views
1. What is the basic strategy that Mystic Monk Coffee seems to be using to achieve their mission?
The most important strategy used by Mystic Monk Coffee was marketing to the Catholic population, which includes more than 69 million Americans. The company appealed to this religious group by emphasizing that their dollars spent on Mystic Monk Coffee would go towards Christ and his Catholic church (as opposed to secular alternatives, such as Starbucks and Dunkin Donuts). The idea was for customers to feel that they could purchase the same high quality product but also contribute to a cause about which they are passionate.
2. What is/are the source(s) of competitive advantage for Mystic Monk Coffee?
Mystic Monk Coffee acquired a competitive advantage, not only by emphasizing a charitable cause, but also by utilizing sales strategies such as offering lower-priced samples, free shipping on bulk orders, a coffee club membership, marketing predominately through word of mouth in a tight-knit community, competing in the online market, and producing a product on par with other high quality coffee wholesalers.
3. Does Mystic Monk Coffee appear to have a strategy that makes an adequate profit for the Carmelite monks to achieve their goals? To answer this question you will need to make some assumptions about cash flow, profit, and costs. That is, show a calculation that you can defend about how much money Mystic Monk can make in a year, and how many years it would take to achieve their goals using this strategy.
In the example year, Mystic Monk was able to earn about $74,580, with sales averaging $56,500/mo, and an 11% net profit margin (12 mo * $56,500/mo * 11% = $74,580). Their goal is to raise enough money to purchase a ranch for $8.9 million, and at the end of this year, they have about $325,000 in capital. Retail organic coffee bean sales have been increasing at about 32% per year. If their sales increase due to this increase in the market, along with improved marketing strategies and customer loyalty, they can justify spending
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