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Mystic Monk Coffee

Autor:   •  January 19, 2013  •  Case Study  •  414 Words (2 Pages)  •  3,774 Views

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Mystic Monk Coffee business’s strategy is a money-maker. In the overview of the coffee industry, it was reported that there are 150 million consumers that drink coffee in the US, with a net profit/revenue of 11% (since 89% of U.S. coffee drinkers brew their own coffee at home rather than purchasing ready-to-drink coffee at coffee shops) and with this, the coffee business has the good potential to generate profit. The net profit could possibly be even higher since the Mystic Monk Coffee houses quality products and efficient usability. The business model illustrates ways on how the company will generate sure profit. Mystic Monk Coffee’s business model includes the plan of increasing the over-all production of their quality coffee by buying a new coffee roaster, and also putting up wholesale sales to churches (like the Carmelites of Wyoming) and local coffee shops. MMC is a product with a successful customer value proposition. Using high-quality fair trade Arabica beans produces the coffees of MMC that considers it a specialty coffee. The product also offers a wide variety of flavors like Mystical Chants of Carmel, Cowboy Blend, Royal Rum Pecan, and Mystic Monk Blend to name a few. The business’ web site offered free shipping to consumers if they purchase 3 bags of MMC coffee or more, which is a good strategy because it attracts the customers to buy more and save money for shipping/delivery fee. MMC also offered secular website operators commissions on its sales through its Mystic Monk Coffee Affiliate Program that placed web banner ads and text ads on participating websites. These affiliate websites earned 18% commission on sales made to customers who were directed to the MMC site from their website with the help of the ads. Profit formula or revenue model illustrates the ability of the company or business to create value for itself, or hence the ability to see how profit will generate in the business. With MMC’s strategy of increasing the production of coffee

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