Question: Case Study 1 : MANNERhttps: / / chinamktginsights . com / how - manner - coffee - broke - through - chinas - crowded -
Case Study : MANNERhttps:chinamktginsightscomhowmannercoffeebrokethroughchinascrowdedbeverageindustryManner was founded in Founder Han Yulong opened a coffee store in Nantong, but it turns out that people in Nantong didnt have that much passion for coffee, so Han moved to Shanghai.With limited budget and considering the fact that the coffee business has a lower table turnover rate, Hans first Shanghai coffee store was only square meters, with very simple decoration. But despite the small space, it did well. In Manner started marching aggressively, opening more stores in Shanghai. In the brand had stores in Shanghai and additional stores in Beijing, Suzhou, Chengdu, and Shenzhen.The average price of Manners coffee is around RMB It is way lower than other players in the market such as Starbucks,Peets or Costa. Han does whatever he can to lower costs for his stores and products, so as to provide affordable prices for Manners customers. To reduce the spending on coffee cups, Manner offers a RMB discount if customers bring their own cups. That is a pretty motivating offer! And it also ties into young consumers growing interest in sustainability. One of the benefits of having a lower price is that it actually lowers consumers expectations so that then when they first try out the coffee they are pleasantly surprised that the quality is better than what they thought they would get for that price. No delivery service: Han knows clearly that as time goes by the flavor of coffee changes. As the temperature decreases, the sour taste becomes stronger and the smoothness decreases. The cup of coffee is very likely to become bitter. Though offering delivery service will definitely bring more sales for Manner Coffee, Han doesnt feel the benefit of additional revenue is worth risking the reputation of the brand. Most of Manners stores are small and they are located either near or inside office buildings. Thisallows white collars to order first on their phones and pick up their coffee on their way to work.While it seems ambitious to launch a new coffee brand in an already crowded market, Han made the right choice by going into a crowded market but then finding clear ways to differentiate his brand.End of case study Question marksAnalyse for Manner, the Coffee Shop Industry while using Porters Five Forces framework. Subsequently give your opinion about the attractiveness of this industry.Question marksUsing Bowmans Strategy Clock or Porters Generic Strategies framework, identify and evaluate the future strategic options available to Manner. Recommend a future strategic direction while using strategic theories as discussed in this module.
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