Mystic Monk Coffee Case Analysis

Mystic Monk Coffee is a company established by Father Daniel Mary, the Prior of the Carmelite Order of monks in Clark, Wyoming. The monks are a group of 13 living in a small home. Coffee sales are used to support the brotherhood and to eventually prepare for expansion of the order. Coffee is produced using high quality fair trade Arabica and fair trade/organic Arabica beans. There are many popular flavors such as Mystical Chants of Carmel, Cowboy Blend, Royal Rum Pecan, and Mystic Monk Blend.

The company’s traditional target market has been the segment of the U.S. Catholic population who drinks coffee and supports the monastery’s mission.

Industry Analysis

The approximate number of coffee consumers in the United Stated is 150 million and 89 percent of those drinkers prefer to make coffee at home rather than purchase from franchises. Of the consumers who drink coffee at home, approximately 30 percent prefer premium specialty coffees that sell for $7 to $10 per 12-ounce package.

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These coffees are made from high quality Arabica beans rather that low quality, bitter Arabica beans. Mystic Monk Coffee is among the distributors that produces a higher quality product.

Company Mission

The current mission is to produce a high quality product that is marketed to the segment of the U.S. catholic population who drink coffee and wish to support the monastery’s mission. The monks make their appeal by asking the Catholics to use their Catholic coffee dollar for “Christ and his Catholic church.” This is published on the website.

Company Objective

Mystic Monk Coffee has a primary goal of transforming the small brotherhood of 13 monks lining in the small home to include accommodations for 30 monks. There is a property in the Rockies with an asking price of $8.9 million. The monks currently have a donation of $250,000 and a plan to raise the remainder of the funds. There are currently more than 500 inquiries who want to be considered to become a Wyoming Carmelite and Father Prior Daniel Mary wished to accept a select few when he is able to expand.

Company Strategy

The company primarily uses word of mouth as a means of sales and increase of revenue. Sales are generated primarily from online orders. Mystic Monk also offers non-secular websites commissions on sales made to customers directed to the website. The website and its affiliates help the company to earn a net profit margin average 11 percent of revenues.

SWOT

Strengths:

* The price is reasonable. The average premium brand coffee is sold for $7 to $10 dollars per 12 ounce package. Mystic Monk Coffee averages $9.95 per 12 ounce bag and all purchases over $25 qualifies for free shipping. * The monks are dedicated to making the coffee. Everyone at the company has the same goal and this is to further the revenue of the company in hopes of expanding to better serve God.

Weaknesses:

* The Carmelite Order currently has the production capacity of 540 pounds per day and the demand will soon exceed the production capacity. The production is also limited due to prayer and meditation throughout the day. * Advertisement is primarily by word of mouth. There are consumers who would try the coffee because it is of high quality and good price but do not know about it.

Opportunity:

* Through the sale of its coffee, the Carmelite Monks may realize their dream of purchasing the Irma Lake Ranch. * Donations made by individual supporters will help to fund the purchase of the land. * Expansion of the brotherhood through the purchase of a larger parcel of land.

Threat:

* Some people may not purchase the coffee because of the religious affiliation. * The price of the coffee may increase after the purchase of new land.

*FINANCIALS NOT AVAILABLE

Problem Scope

The Carmelite Monks of Wyoming would like to purchase a ranch that would greatly increase its operations. The order currently has 13 monks working to produce coffee for sale and has a production capacity of 540 pounds per day. The company is sustainable because the monks have a specific goal in mind and all are on the same page when trying to reach the goal of the purchase. I selected this problem because although the company makes great sales, sales will not be enough to purchase the land. The company does not effectively advertise itself and will need to improve advertisement to increase sales. Problem: The mission of the company is tied to the vision of the company. Father Daniel Mary realizes that the monastery environment is a unique challenge to the business because of the limited hours of production and also the limited access to the outside world. Although the monks are highly secluded, they manage to sell their coffee although it is mainly sold to Catholic believers.

Solution: Mystic Monk Coffee can begin to be offered in small shops in the United States. I would not recommend supermarkets at this time because of the limitations of production. As sales increase, revenue generated from increased sales will help with the purchase of new property and the coffee can then be offered in a limited amount of supermarkets. With the purchase of new land, there will also be an increase in labor and production with the addition of new monks to the order.

Problem: Mystic Monk Coffee has a target market of the U.S. Catholic population who drank coffee and wished to support the monastery’s mission. Solution: Mystic Monk Coffee should expand its target market. It can do this by targeting not only Catholics but all coffee drinkers in the U.S. who value price and quality. Most people enjoy a good cup of inexpensive coffee. The emphasis should not be on the support of the monastery’s mission but should focus on great coffee for a reasonable price. By doing this, the Monks would increase sales and eventually be able to purchase a larger property.

Challenges:

The monks may feel they are compromising their beliefs by focusing more on the coffee than their stated religious mission. If the monks focus on the fact that they are running a company that will eventually generate the sales needed to further their mission, this may ease the feelings. The monks may also want to increase their order by two to increase production and earn more money.

Summary

Although Mystic Monk Coffee has a unique set of variables, they will be successful in increasing sales and purchasing the land.