Marketing Analysis : Donkey Coffee And Espresso Essay

Marketing Analysis : Donkey Coffee And Espresso Essay

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Donkey Coffee and Espresso is a well-known coffee shop brand in Athens, Ohio, which sells fair-trade coffee and food products from local farm on West Washington Street. It has been around for more than 10 years. Donkey’s product mix includes high-quality espresso beverages, chocolate beverages, blended coffee and cream, brewed tea, food items and others. The SWOT analysis will focus on Donkey’s products to understand how their products contribute to success. Internally analyzing Donkey’s strengths and weaknesses helps the company determine their market position, and locating opportunities and threats externally assist to stay ahead of their competitors.
Donkey has been in Athens for over 10 years offering high-quality coffee and satisfying customer’s demands. As the quality of coffee is enhanced by the experience from the long-run operation, a strong brand name in Athens and a group of loyal customers have been developed. Based on survey results in the Athens News, Donkey has been voted for the best coffee shop in Athens in recent years (Best of Athens 2015 – Dining, January 25, 2015). This fact not only shows that Donkey is the most popular coffee shop in Athens, but it also informs that there are a large number of Donkey’s loyal customers. According to an article on Harvard Business Review, loyal customers can provide income and success to a company, and the amount of loyal customers determines whether a company makes a profit or not (Heskett, Jones, Loveman, Sasser, Jr., and Schlesinger, 1994, p. 170). Loyal customers play an important role in profit-making and growth; therefore, more customers give Donkey a big advantage.
Donkey’s weakness is that the price is higher than the average coffee price in Athens because Donkey is se...

... middle of paper ...

...feehouse can control cost of coffee beans to be more stable and lower than Donkey, because they have their own supply chain and regular suppliers. Starbucks has more advantages in cost-saving, so Donkey is facing stiff competition.
In conclusion, Donkey Coffee and Espresso has strong market position in Athens due to the high quality coffee and long-term operating. In order to promoting social justice, the owner commits to make fair-trade coffee and the high price becomes a weakness for making profit. The competition with those strong competitors is a big challenge for Donkey. However, it is successful in community involvement, and there are still opportunities to consolidate this dominance. For the future, in order to maintain the leading position between Athens’ coffee shops, Donkey must take its advantages and overcome difficulties in the competitive environment.

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