Product development and customers’ preferences Essay

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Introduction
Operating for more than ten years, JoJo on the GoGo is at a crossroads in its local Boca Raton history as it must now address a substantially growing number of competitors. The analysis will look at the strengths, weaknesses, opportunities and threats (SWOT) of the company and place it in the external opportunities and threats, which will be determined by current industry research. The recommendations that will be provided are aimed at making use of all the peculiarities of the shop and addressing the limitations of its operations to achieve sustainable growth.
SWOT Analysis
Strengths
The major strengths of the company are its solid presence in the community and its genuine identity. With JoJo on the GoGo being a local landmark, it has earned customers’ loyalty and trust that other firms may find hard to emulate. It is also situated in a high-income locality area, giving it access to a customer base that has the purchasing power to buy specialty food and beverages. Moreover, its signature doughnuts act as a powerful, unique selling proposition. Along with this, the paid-off major equipment comes in as a source of financial strength due to lower fixed operational costs.
Weaknesses
Nevertheless, there are a number of internal weaknesses that need to be addressed. Lack of proper signage is a severe drawback, as it restricts visibility and walk-in traffic of the high-volume Palmetto Park Road. The quality of coffee offered is described as decent, but not good enough to place it in the premium choice in a market competing with the likes of McDonald’s. Additionally, past investments in low-calorie products have not been successful, and thus, there is a mismatch between product development and customers’ preferences. Lastly, its existing operating hours, the exclusion of Sundays and holidays, are failing to capture significant revenue during peak leisure days.
Opportunities
The environment in which JoJo on the GoGo is in business has a number of growth opportunities. Boca Raton’s high-income population is a desirable target market for high-end coffee and specialty food offerings, and this demographic is less price sensitive than the average consumer. The social trends toward preferring the growth of independent businesses are also beneficial to JoJo, since a considerable number of customers actively seek out local cafes over large chains. Health-conscious trends offer another opportunity, provided that the coffee shop creates attractive low-sugar beverages or plant-based options that can better the coffee shop than its unsuccessful previous attempt. Lastly, the identity of JoJo as a surfer can be capitalised upon with events that will engage the community and reinforce cultural commitments that it has, creating loyalty outside of simple purchase activities.
Threats
Jojo on the GoGo is exposed to significant threats such as competing directly with big and well-established competitors like Starbucks, which have better chances of expansion due to their economies of scale and huge marketing budgets, making small cafes susceptible. Increase in operating expenses also poses risks where food service industries are at risk of rising costs of payment of rents, wages, and ingredients. Lastly, the regulatory risks are high, with its previous food safety shutdown demonstrating how rapidly such trust can be destroyed. The fact that online ratings have a powerful impact on the behaviour of customers, with studies estimating an increase in revenues by 5- 9% per one-star Yelp rating (Luca, 2016), means that JoJo is at reputational risk.
Recommendations
On the basis of this analysis, we suggest a four-pillar approach. First, promote the local authentic identity to the max by rebranding on the concept of “Boca Original Surf Shack Café” and using local art and surf culture in the decoration and marketing. Second, fix the problems of visibility by employing both professional signage and the creation of a solid social media presence that highlights the signature doughnuts and the atmosphere through visual media. Third, refine the menu by eliminating unsuccessful low-calorie offerings and instead, introduce changing seasonal doughnut flavors and additionally, one or two basic healthy items such as bottled cold-pressed juices to accommodate health concious consumers. Lastly, to achieve a stable operational environment, increase hours to include Sundays and have employee retention policies, including flexible hours and systematic tip-sharing systems.
Conclusion
JoJo on the GoGo has a powerful combination of resilience, community recognition, and a unique product, but poor visibility, product quality, and staffing. The opportunities to realise sustainability, quality coffee, and digital connection are possible, with threats of competition, increasing costs, and regulatory concerns prevailing. Better signage, higher quality, the use of digital technologies, staff retention, and community relations will allow JoJo to remain a local landmark and become more competitive at the same time. Based on this approach, JoJo on the GoGo will be able to turn its weaknesses into advantages, using its local flavor to its competitive advantage as it competes in the changing food and beverage market, creating a more sustainable and profitable business model.

References
Luca, M. (2016). Reviews, reputation, and revenue: The case of Yelp.com. Com (March 15, 2016). Harvard Business School NOM Unit Working Paper, (12-016).

 

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