This paper examines the business strategy of Mystic Monk Coffee, a Catholic Carmelite nonprofit coffee enterprise. It surveys rising U.S. gourmet coffee demand from the late 1980s onward, using Arabica bean price data and specialty coffee association research to establish favorable market conditions. The paper then identifies target marketing opportunities—particularly outreach to Catholic churches and charities—and draws a comparison to Newman's Own as a charitable brand model. Finally, it explains how sustained revenue growth and a large donation could enable the Carmelites to finance the purchase of a ranch, creating a mutually beneficial outcome for the organization and its customers.
The paper demonstrates applied market analysis by translating external industry data—price trends, demand growth rates, and recession-era consumer behavior—into actionable strategic recommendations for a specific organization. Rather than describing the coffee market in isolation, every data point is immediately connected back to Mystic Monk's competitive position and fundraising goal, showing how evidence should drive business argument.
The paper opens with an introduction that frames the opportunity and states the three analytical objectives. It then proceeds through three body sections—market conditions, targeting strategies, and financial implications—each self-contained but building on the previous. The conclusion synthesizes all three threads into a unified strategic recommendation. This straightforward three-part body structure is well suited to a short strategic analysis paper at the undergraduate level.
Coffee prices and demand have been steadily increasing. Evidence of this can be seen by looking no further than the price of the Arabica coffee bean, which rose from $119.00 in 2001 to as high as $581.50 at the time of writing. During the same period, the U.S. coffee shop market experienced a significant increase of 157% between 2000 and 2005. ("Arabica Coffee") ("U.S. Coffee Shops")
In the case of Mystic Monk Coffee, these conditions mean the company can create a unique market to reach out to its target audience of Catholic coffee drinkers. The company has posted a profit of $56,000 per month; however, a recent interest in purchasing a ranch has made it necessary to establish a clear marketing plan. That plan must examine the current market conditions for coffee, identify areas the company can target to increase sales, and explain how the funds from this enterprise can help the Carmelites realize their dream of acquiring a ranch for their followers. Together, these elements will provide the greatest insight into the business strategy that can allow this organization to achieve its goals.
From the late 1980s onward, U.S. coffee sales began to increase sharply. Part of the reason was that companies such as Starbucks created a new niche market for gourmet coffees. At the heart of their basic strategy was building solid relationships with various coffee growers and then marketing different types of gourmet coffee in their restaurants. Generally, this was sold in the form of coffee beans that consumers could purchase and take home, while the strategy also allowed customers to buy their favorite beverages at a premium price in-store.
This is significant because the actions taken by Starbucks helped to redefine the U.S. coffee market. A growing number of consumers began to seek out producers that offered the best products in terms of taste and aroma. ("Starbucks Coffee Company") These two elements influenced the way coffee was consumed: it became fashionable, and many people became willing to pay more for their favorite gourmet brands. Gourmet coffee's share of overall U.S. coffee sales rose steadily, climbing from 3.0% in 1997 to nearly 15% by 2001, signifying the strong and increasing demand that was being experienced. (Nelson)
This information is important because such strong demand allows Mystic Monk Coffee to create a unique product capable of reaching Catholic coffee drinkers. The strong market conditions show every sign of continuing well into the future. When combined with the increase in prices since 2001, the company has the ability to increase its profit margins dramatically, given that it purchases its products from a wholesaler that provides sizeable markups.
When one analyzes this information, it is clear that underlying demand for gourmet coffee remains very strong. For Mystic Monk, this means the company can develop a unique target market that will drive an increase in profit margins — bringing the Carmelites one step closer to realizing their dream of purchasing a ranch for members of their organization.
Mystic Monk Coffee needs to engage in a strategy that will increase its overall profitability while simultaneously helping it realize the goal of purchasing a ranch for the organization. To address these underlying challenges, the company should market itself to the general public by emphasizing the nonprofit portion of its business, while at the same time focusing on outreach to Catholic coffee drinkers. One practical way to accomplish this is by offering Catholic churches and organizations free samples as well as large-volume discounts, which will help create a loyal following among a core consumer audience.
You’re 45% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.