The Details Pertaining to the Retail Business in Brisbane - Assignment Example

Activity Task 1 Description about the Company: The details pertaining to the retail business in Brisbane is Name of the Company: Gelato Bar & Coffee Shop Industry: Service Industry Purpose & Mission of the Business: The business works with the objective of providing freshly brewed coffee so that people consuming those feel new life and become refreshed. To accomplish the business objective the business has identified the mission of preparing freshly brewed coffee along with other consumables so that people spend their valuable time and are able to enjoy the different services which are being provided. Serving freshly prepared brewed coffee will serve the purpose of ensuring quality and matching the overall needs and requirements of consumers. Size of the business: It is a small scale business and has around 7 stores all around Brisbane and works on the same business model in all the stores Main Products and Services: The main product which the business focuses on is freshly brewed coffee for which coffee beans has been procured from different places. In addition to it the business looks to provide other consumables like muffins, pastries and other fast food consumable items which go along with coffee. The different locations based on the different needs and preference determines the different products which will be supplied and thereby help to determine the manner in which customer needs will be met. The analysis of consumer based on segmentation is as Geographical Segment: Gelato Bar & Coffee Shop looks to attract all type of customers as their product and services meets the need of all people. The service provider has also ensured that the product is not priced high which would enable all people to purchase the same. Further, the different stores have been positioned at important juncture which would thereby enable all section of the society to purchase different products and services. Further, based on geographical location Gelato Bar & Coffee Shop aims to attract students, office goers and others looking to purchase coffee. This has thereby enabled them to ensure that they are able to segment the product and attract them in a better way. Psychographic Segment: Gelato Bar & Coffee Shop provides coffee and other products quickly so that time can be saved and people can consume the same quickly. The preference of coffee among people is increasing and people are looking towards freshly brewed coffee beans for coffee. Gelato Bar & Coffee Shop matches those requirements and provides product which are according to them. This has thereby helped Gelato Bar & Coffee Shop to meet the psychographic needs of people Behavioural Segment: The behavioural segment shows that the fascination towards coffee is continuously increasing. This creates an opportunity which Gelato Bar & Coffee Shop can look to bank on as people are looking towards freshly brewed coffee. In addition to it different segment of the society like students, office goers and others prefer to spend time in coffee shop, talk over a meeting which has thereby brought the required behavioural change of people towards the product. The positive impact that coffee has on people and brought about the required change in the lifestyle of people has ensured that attracting different segment of the people becomes better. Activity Task 1.2 Gelato Bar & Coffee Shop can increase their volume and dimension of business by looking at brining about the required changes through which better activities can be carried out. This would require that the business revolves with the changing business dynamics and environment. This will make the overall process to become effective and would look at different areas through which the overall business will improve. The role and importance of external environment needs to be understood and the impact it will have on Gelato Bar & Coffee Shop is as Political & Legal Environment: Changes in government policies will have an impact on Gelato Bar & Coffee Shop. In case government increase the taxes it will impact the cost of coffee which would thereby reduce the number of people drinking coffee. Similarly if taxes are reduced it would make coffee cheap which could entice certain section of the society to consume coffee. Along with it changes in the food license norm will impact the mechanism through which different activities are carried out and could tighten the overall mechanism to carry out different activities. Economic & Financial Environment: Economic changes will impact the disposable income and will determine whether people look to purchase the product or not. If the disposable income falls it would reduce purchases as people won’t be willing to spend and hoard money which would thereby reduce consumption of coffee. Signs of positivity in the economy will represent a positive change and will impact the manner in which people look to consume coffee thereby ensuring positive results. Social, Demographic & Cultural Environment: Changes in the social, demographic and cultural environment will have an impact on the number of people consuming coffee. If the demographic changes results in increase in the age group people will reduce the consumption of coffee due to the health related concerns which coffee consumption presents. A change in the life style where people prefer fast life would result in more and more people visiting Gelato Bar & Coffee Shop due to fast service. This would increase the number of people visiting the store and will have a positive impact. Change in the cultural environment will also impact the consumption of coffee as if the cultural changes are witnessed and people adopt western culture the demand for coffee is bound to increase. This will result in making changes in the manner Gelato Bar & Coffee Shop works and has to identify ways to deal with the changing business environment. Technology & Natural Environment: Changes in technology and environment will have a positive impact on the number of people consuming coffee. If technology changes become possible it can result in ensuring that coffee with the same taste and smell can be preserved for longer time will make more and more people to drink it. In a similar manner if people witness a change in climatic condition and the weather becomes cold and windy then the preference towards coffee would increase. The habits of consumer will change and fluctuate based on the changing needs and demand which will thereby have an impact on the business carried out by Gelato Bar & Coffee Shop. Activity Task 1.3 The changing business environment presents different challenges before Gelato Bar & Coffee Shop which needs to be encountered. The organization needs to find different alternatives and measures which would help to improve business performance and improve the overall presence in the market. Gelato Bar & Coffee Shop can look forward towards the following Gelato Bar & Coffee Shop should focus towards innovation in packaging. The store can look forward towards providing ready to drink coffee in individual serving size where only adding hot water will ensure that people can consumer it. No other ingredient has to be added and will thereby provide an opportunity through which people can consume fresh coffee which is being served. This will find a preference among students and office goers and people who stay away from families as it can be easily prepared and the same can be consumed easily. Gelato Bar & Coffee Shop can focus on incremental innovation where they will provide coffee in different flavours like vanilla coffee, apple coffee and so on. This will increase the number of option that consumer have and will provide them with different taste and flavour. The overall presence in the market would thereby improve and would help to determine the process through which consumers will get something new. Gelato Bar & Coffee Shop can increase other consumable item which is consumed with coffee. This will even make people who don’t consume coffee to come to the store and will increase the chances of those consumers drinking coffee in the future. Having new additions will provide customers something new and would thereby increase the chances of being successful in the future. Gelato Bar & Coffee Shop can look at having different designs of coffee cup as it will give customers a totally new experience. The consumers will get something new which will create mental satisfaction and would multiply the overall aspect of providing new products to the customers. Gelato Bar & Coffee Shop can also look at having coffee being procured from different regions of the globe which would thereby increase the option and would customers to choose from different variant of coffee. This will help to give the business a global presence and would maximize the overall opportunity of satisfying the different need of the customers. Activity Task 2.1 Gelato Bar & Coffee Shop which performs in the service sector has to continuously strive towards providing quality coffee so that customer satisfaction can be enhanced. This thereby requires them to focus towards proper service and increasing their volume of business by having more and more stores around the country. This has to be matched with consistency in offering and using their experience to meet the different needs of customers. To improve their future Gelato Bar & Coffee Shop has to identify the important locations and junctures where stores can be provided using the same business model and interiors so that consumer visiting any store feels the same experience. The use of resources has to improve and the dimensions which will impact the performance of the business have to be looked at. Gelato Bar & Coffee Shop has to focus towards using their strengths and reducing their weakness so that productive results can be generated. The strengths and weakness is thereby as Strengths Weakness Large market to be catered as demand for coffee is increasing and the experience of Gelato Bar & Coffee Shop will be helpful Lack of innovation to come with new products and services is impacting their growth Good presence as stores are located at prime locations Simple business model which makes it easy for other players to copy and follow the same Skilled workforce capable of understanding the consumer needs No service standards have been determined which results in lack of consistency Different variants of coffee beans ensured product for every customers The business is locally concentrated which limits their option of expanding overseas Cheap product and quality offerings ensures better customer satisfaction Multiplying the experience of customers by offering quality products according to their wants Activity Task 2.2 The attractiveness of the market potential based on target market and innovation is as Product Idea: Packaging Innovation A B C D 1 Market Size 10 10 10 8 2 Growth Potential 9 9 8 10 3 Level of Usefulness to Customers 1 1 1 2 4 Affordability to Customers 2 2 2 1 5 Level of Competition 3 3 3 3 6 Quality & Image 8 4 4 4 7 Cost of Entry & Exit 4 6 5 6 8 Amount of Promotion Needed 5 5 6 5 9 Ease of distribution & delivery 6 8 9 9 10 Service product changes needed 7 7 7 7 Product Idea: Incremental Innovation A B C D 1 Market Size 3 3 5 5 2 Growth Potential 2 2 2 2 3 Level of Usefulness to Customers 1 1 1 1 4 Affordability to Customers 5 7 8 8 5 Level of Competition 9 8 7 5 6 Quality & Image 4 4 4 4 7 Cost of Entry & Exit 6 5 6 6 8 Amount of Promotion Needed 7 6 9 7 9 Ease of distribution & delivery 8 9 8 9 10 Service product changes needed 10 10 10 10 Product Idea: Adding New products A B C D 1 Market Size 3 3 3 3 2 Growth Potential 1 1 1 1 3 Level of Usefulness to Customers 4 5 4 7 4 Affordability to Customers 2 2 8 8 5 Level of Competition 5 4 2 2 6 Quality & Image 7 8 5 4 7 Cost of Entry & Exit 6 7 6 5 8 Amount of Promotion Needed 8 6 9 6 9 Ease of distribution & delivery 9 10 7 8 10 Service product changes needed 10 9 10 9 Product Idea: Cup Innovation A B C D 1 Market Size 4 4 7 7 2 Growth Potential 2 2 3 2 3 Level of Usefulness to Customers 6 6 4 4 4 Affordability to Customers 2 2 5 5 5 Level of Competition 5 5 6 6 6 Quality & Image 1 1 1 1 7 Cost of Entry & Exit 3 2 2 3 8 Amount of Promotion Needed 10 10 9 8 9 Ease of distribution & delivery 9 9 10 10 10 Service product changes needed 8 8 8 9 Product Idea: Different bean varieties from different regions of the globe A B C D 1 Market Size 4 4 7 7 2 Growth Potential 2 2 3 2 3 Level of Usefulness to Customers 6 6 4 4 4 Affordability to Customers 2 2 5 5 5 Level of Competition 5 5 6 6 6 Quality & Image 1 1 1 1 7 Cost of Entry & Exit 3 2 2 3 8 Amount of Promotion Needed 10 10 9 8 9 Ease of distribution & delivery 9 9 10 10 10 Service product changes needed 8 8 8 9 Activity Task 2.3 Gelato Bar & Coffee Shop faces competition from both local and international players who are working on the same business model and provides similar products and services to the customers. Gelato Bar & Coffee Shop faces competition from different players like Barista, Cafe Coffee, Day, Brother Espresso, Starbucks and others. The strengths and weakness of other players can be identified as Strengths Weakness Strong brand name due to presence in the market for a long period of time Limited innovation has resulted in customer getting bored with similar offerings Highly skilled and trained personnel which will help to carry out different activities and meet the need of customers High turnover rate for employees makes it difficult to offer quality service which has impacted satisfaction level of customers Different type and variety of coffee which helps to meet the need and requirements of different section of society on a global level Lack of quality beans being available from different regions of the world has limited their ability to give the stores a global outlook Working on the global level has ensured better experience and knowledge which can be used to improve business Consistency in offerings have ensured that customer satisfaction is maximized Similar business and interiors give the stores a global look and provides an opportunity through which customer satisfaction is enhanced Activity Task 2.4 Gelato Bar & Coffee Shop has to look at being innovative and coming up with strategies which would differentiate them from other players. The strategy has to be such that it looks at being innovative and designing mechanism which will give them first mover advantage and create better future opportunities. Gelato Bar & Coffee Shop can look at Packaging Innovation where they will look at having ready to serve coffee cups, where only pouring hot water will enable customers to consume it. While designing and developing such cups care has to be taken that quality and taste remains consistent. Along with it having different variants of coffee like vanilla, apple and other flavours will increase their product line and provide customers with different options. This will get accepted by a large chunk of people and would maximize their chances of being successful. The process has to be continuous and has to look to be innovative and designing different business process which will provide better results. Identifying the correct market and developing strategies which meet the requirements of the targeted market will provide an opportunity to improve their presence in the market In addition to it Gelato Bar & Coffee Shop should look to work on the same business model of offering cheap coffee but at the same time look to provide something new. This will keep customers tune in to the stores with the expectation of something new and would maximize the overall opportunities through which better satisfaction will be achieved. Identifying important locations and carrying out business by opening stores will also serve different purpose and will help Gelato Bar & Coffee Shop to be able to improve their degree of penetration in the market. Since people in this fast paced word look at quick service which Gelato Bar & Coffee Shop will meet. This will help Gelato Bar & Coffee Shop to ensure that people needs are understood and based on it different offerings are designed. Having loyalty and bonus offers for loyal customers will also serve the purpose of identifying the different needs and wants and based on it looking towards fulfilling those wants. The overall framework has to be such that environmental changes are also understood and the impact it will have on consumer purchasing habits is understood. This will help to bring about the required change and provide an opportunity through which people will be attracted. Thus, Gelato Bar & Coffee Shop has to aim at different facets and areas through which the overall working is shaped so that the process looks at meeting the different needs of consumers. This will provide a wide market to cater and will increase the likelihood of being successful in the future. Activity Task 3 Cost & Benefits: Cost is the investment which is made to create the product and benefits are the gain which the product provides to consumer, producer and others associated with it Opportunities & Threats: Opportunities are the different options which will increase the chances of being successful whereas threats are the risk which will impact the future options of improving business Advantages and disadvantages over potential competitors: Advantage over potential competitor is the relative advantage and total advantage which players are able to witness due to some specific areas which differentiates them from other players. Disadvantage over potential competitors is the lack of gain which players are able to witness over other due to the fact that others are able to improve their business better. Sales forecast: It s the expected revenues which the sale of product or service will generate in the future over a determined period of time. Return on investment potential: It is the return which the business is able to generate based on the investment which the business has made and is the maximum returns which they can generate in the future. It is the expected return which the business can get if the different resources are used in the most effective manner. Return on investment potential is the maximum potential returns which the business could provide if all the factors and situation are as per the business requirements and would thereby ensure maximum growth for the business. Product modification, brand name, packaging, design and features: Product modification is the changes which are made in the product so that consumers perceive it as a new product and look to purchase the same product again and again. Brand name is the name with which consumers find it easy to remember the product and are able to relate the product with them. Packaging is the external look which the product provides and helps to protect the product and also attracts customers towards the product. Design is the graphics which is used in the product and is done with the objective to make the product attractive. Features are the different value which is added to the product which consumers require and helps to attract people towards the product Pricing strategies: It is the strategy which helps to determine the price which will be charged for a particular product or services and is identified based on competitors strategies Promotional Mix: It is the marketing strategies which the business uses to sell its product and create awareness in the market Distribution Channel: It is the different medium which business uses to reach the final consumer so that the products and services can be directly supplied to the final user Service requirement and support: It is the after sales service which the organization provides so that if any problems occur it can be solved and customer satisfaction can be maximized Budget requirement: It is the required monetary arrangements which the business requires to carry out the different functions so that the business will be able to garner the required support through which future sales and other activities can be carried out. 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