Brother Espresso - Marketing - Case Study Example

Activity Task 1 Description about the Company: The complete description about the company is Name of the Company: Brother Espresso Industry: Service Industry Purpose & Mission of the Business: The main objective of the business to provide freshly brewed quality coffee to people so that people become fresh and helps to fulfil the desire to drink quality coffee. The mission of the business is to ensure customer satisfaction by supplying freshly brewed coffee along with other eatables so that people hangout in the place and become loyal to the different services being offered. Size of the business: It is a small sized business having around 5 stores throughout Brisbane and mostly looks to cater to the local people Main Products and Services: The business primarily focuses on providing quality coffee which is made from freshly brewed coffee beans. In addition to it the business also provides different products like muffins, pastries and other fast food consumable items which go along with coffee. The products are decided based on needs and preference of each location and thereby looks to meet the different basic needs of customers. The analysis of the different customer needs based on different segment is as Geographical Segment: Based on the geographical segment Brother Espresso looks to meet the need of people of all income groups. Since, the coffee is hardly priced high it thereby helps to attract people from all income type. In addition to it the coffee store mostly looks to attract students, office goers and tourist based on the social and educational level. This has thereby helped them to ensure that they are able to attract all type of people from different category so that they look to purchase coffee. The coffee shop has also been positioned and has its location in crucial areas where they are able to attract students, office goers and commercial places. This has thereby helped them to target the correct appropriate market and fulfil the different needs of customers by providing freshly brewed coffee. Psychographic Segment: People in the fast paced world prefer things which are quick and Brother Espresso helps to serve those purposes. The coffee shop has been working in such a manner that it looks to provide quick service. In addition to it the lifestyle of people has undergone changes and people have a special preference towards coffee. The coffee store has worked on it and looks to meet the specific need and interest of the consumer by providing products which are as per their changing lifestyle. Behavioural Segment: Based on the behavioural segment it is observed that people who have a fascination towards coffee purchases it at least twice in a week. This provides an opportunity as people preference and taste towards freshly brewed coffee is constantly growing and the ability to provide those will help to meet specific needs of consumers. Further, different segment of the society like students and office goers also prefer coffee while at their free time or in case of a small meeting which thereby helps to ensure that people with different behaviour can be attracted towards the products. Since, coffee helps to provide a new energy and keeps people fresh so the preference towards it is increasing. In addition to it the positive impact which coffee has on lifestyle it taken within limits has focused the attention of different people towards coffee and has thereby increased the need and dependence on coffee which thereby provides a huge market to cater. Activity Task 1.2 Brother Espresso has a lot of opportunity to improve their business and bring about the required changes in the manner different activities are being carried out. To garner advantage and to keep in tune with the changing business environment it becomes imperative to analyze and understand the evolving markets. This thereby increases the importance to understand the manner in which external environment has an impact on performance. The manner in which external environment has a role and impacts the future potential of Brother Espresso is as Political & Legal Environment: Brother Espresso will be impacted if government brings about a change in polices. Increase in the taxes would mean that coffee would become expensive which might make certain category of customers to shift towards other drinks. In a similar manner if taxes are reduced than it will help to attract new category of customers and will help to improve business. In addition to it changes in laws and reforms with regard to consumer and business will impact the business. For example if the government brings changes in the food license norms it will force Brother Espresso to make changes and fulfil those requirements which would thereby have an impact on the manner business is carried out. Economic & Financial Environment: Changes in the economic strength of the country will have a bearing on people drinking coffee. In case the purchasing power increases people will look to spend more which would thereby have an impact on the consumption of coffee as more and more people will look to drink the same. In a similar manner if the economy shows signs of positivity it would result in impacting the overall business in a positive manner and would help Brother Espresso to ensure that the demand for coffee increases and more and more people look towards increasing their consumption of coffee. Social, Demographic & Cultural Environment: Brother Espresso will be impacted by changes witnessed in the social, demographical and cultural environment. In case age group of people increases then it will result in reducing the number of people who drink coffee as people would refrain from it due to health issue. In a similar manner if people witness a change in their lifestyle and they become more outward and open people would look at increasing their consumption of coffee as it will serve as a social symbol and will have an impact on the manner people look to purchase products. People belonging to different culture also have different preference as they tend to purchase products which match their cultural requirements. This would thereby make people to purchase coffee if their culture permits it and will have an impact on the manner different decisions with regard to purchase are taken. Technology & Natural Environment: A change in technology will have an impact on the consumption pattern. In case technology up gradation makes it possible to preserve coffee smell and taste for a longer period of time then people will prefer to consume more and more coffee as it would be superior in taste. This is also true for climatic change as a cold or rainy day will have more and more people drinking coffee as it will help them to keep warm. The number of people consuming coffee will thereby change based on different changing climatic conditions and will impact the future potential and demand for coffee. This would thereby result in impacting the overall dimensions through which people look to determine their purchasing habits and will be influenced and tempted to purchase the product on different business scenarios. Activity Task 1.3 The manner in which the external environment is changing has increased the concerns for Brother Espresso. They need to look at finding ways through which new and better products can be developed so that the different needs of the customers are better met. This will require finding out ways and developing strategies which will help to develop new products and increase their market presence. Brother Espresso needs to thereby look at the following Brother Espresso can look forward to packaging innovation. In this innovation Brother Espresso will provide ready brew coffee in individual serving size. The customer only has to add hot water and can be served directly. It will not require any cup but will itself be provided in a serving container. This will thereby help to meet the different needs and provide customers with an opportunity to drink coffee even while travelling. Also comfort and less risk associated with carrying coffee will help to garner the required advantage through which better business opportunities can be created. Brother Espresso can look at incremental innovation where they will look to provide coffee in different flavours like vanilla coffee, apple coffee and so on. This coffee will be similar to normal coffee but will be differentiated on the ground that it will provide a different taste to the customer. This will add new flavour for the customer and will thereby have something extra and different from other coffee in the market Brother Espresso can look forward towards adding new products which goes well with coffee. Having different syrups which can be consumed along with coffee will provide a new experience. This will help the customer to get additional taste and aroma which will attract people and create the zeal and desire to drink the same again and again Brother Espresso can look at designing and continuously changing the coffee cups. This will give customers a new experience of drinking coffee as adding new designs and cups will be effective from the mental point of view. This will provide customers with an opportunity to have something new and will thereby help to ensure that customers will find something new. Brother Espresso can also aim to add coffee from different regions of the world which will be freshly brewed. This will provide customers with a lot of option as bean seeds are different in different regions of the world with regard to taste and aroma. This will thereby help to provide customers with a totally different experience and will help to satisfy the different needs and requirements in a better way. This will also give Brother Espresso a global environment presence as people can consume coffee of different regions under the same roof. This will thereby help Brother Espresso to ensure a new positioning statement and will provide an opportunity through which the business will be better placed to meet the different expectations of the customers Activity Task 2.1 Brother Espresso which is working in the service sector looks towards providing quality products to its customers so that there need can be met. The business is thereby looking to provide quality coffee to its customers and multiply their experience of drinking coffee. The goal for Brother Espresso is to improve their presence in the market by having more and more stores but at the same time look to be consistent and provide quality products to its customers. Since, Brother Espresso is in the business for some time it has garnered them the required experience which will help them to carry out the different activities in a positive manner. In addition to it a good work force which understands customer needs, having business at proper juncture and location, having different varieties of coffee and looking to be innovative and multiplying the overall experience of customers has ensured that the different functions are carried out effectively. Brother Espresso looks to work in a similar manner and is looking to use its different capabilities in such a manner that it helps them to improve their business. Brother Espresso is looking to increase its store and presence all around the country and is thereby looking to use the different resources in such a manner that it helps them to ensure proper utilization of different resources. This thereby will act as a dimension through which business performance will be shaped up. It helps to bring forward the following strengths and weakness of Brother Espresso Strengths Weakness Continuously increasing demand for coffee due to increase in the size of coffee drinkers has helped Brother Espresso to cater to a large market Little experience in the service sector would complicate the matter as they need to indentify the core areas and have to concentrate on them Having stores at prime location in the city has helped them to get a good presence Stiff competition from other local and international players who are working on the same business model Committed and experienced workforce capable of understanding the different needs and wants of the customers Lack of innovativeness to come with new products which are different from those being offered by other players Having different variants and variety of coffee beans has provided an opportunity to ensure that different type of customer having different preference for coffee can be attracted The business is concentrated mainly to the city which limits their presence and doesn’t provide them a global presence The products are available easily and are cheap which thereby helps to attract all type of customer Meeting the need and expectations of customer through quality service has helped to ensure that their experience multiplies Activity Task 2.2 The market attractiveness for different product idea which has been identified before and the target market are 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 Read More