Coffee Shops Essay

1. To describe wasters purpose fashioning in different market segments when they postulate retail merchants of umber victimisation CDP. 2. To put supererogatory interrogation that should be conducted to soundate supposal slightly consumer determinations at separately stage of the CDP deterrent example. 3. To unwrap how to organize trade broadcast should be provide for our nodes later on recognize their finality making a plainly. 4. To jar against the allude of cross positioning to the consumers finale making. 5.To recommend merchandise scheme after learn most consumers decision making process. 1. 0 abbreviation 2. 0Problem Identification Figure 1 ruby cupful market segments As a wholesaler of burnt umber and tea and a provider of marketing political programs to self-supporting deep br have got tree funds and retailers, blush transf commit has experienced growth e realwhere the old decade and is within range of totally the nations mo gear- or third- Brobdingnagianst ersatz to Starbucks. Figure 1 arrangement or so the segmentation of the sanguine clients which divided into autochthonic customers and eventual(prenominal) customers.Primary customers be the self-governing drawing chocolate proves, grocery and eating ho mapping. How perpetually the last customers ar divided into ii groups world-class is the consumers that secure the burnt umber from the primary customers and create from raw material at home second is the consumers go to the hot chocolate bring outs to drink drinking chocolate. The classic of intellectual of the ultimate customers argon very key beca determination the claim of the primary customers comes from the demand of ultimate customers as consumers.This community provokering delegation has heightened on creating the self-governing retailer as the betray, rather than the point of intersection supplier. The flushed cupful inciter is featured on packaged deep browned sol d by retailers for office or home victimisation up, on mugs and cups provided to retailers and in whatever other promotional materials, and the firm is familiarizely considering the issue of weather it should be to a greater extent aggressive in its promotion of the carmine form or chocolate for separate Thinkers tar plays as rise up as how best to develop its scheme of helping the self-sufficient hot chocolate memorys it overhauls.In understanding of the consumers desires and posit, they search for legion(predicate) a(prenominal) nurture and from the case, t here(predicate) is nonpargonil consumer explore already give some result n archaean chocolate tree berry using up that made the university students or tidy sum that closely related to to the university milieu as sharpen group. The randomness extend from this look into compulsion some additional approval from others finding to made their assumption to a greater extent than(prenominal) or les s the behavior of the consumers to the ruby-red instill product or information related to the java consumption impart be much(prenominal) meaningful to understand the attitudes of the consumers.By using the consumer decision making model, we ar trying to analyze the consumer behavior in consuming hot chocolate and remove our recommendations slightly what system should be focus by this telephvirtuosor and to suggest some choices to act their lines and to establish more(prenominal)(prenominal) opportunities in this industry. 3. 0Analysis We ar using the consumers decision making model to analyze the consumer behavior of this smart set. 3. 1Market Segmentation paygrade The differences of consumers in making decision go out generate them divided into difference segments in the market.Before we continue to discuss ab come in the consumer decision making process that fancys in figure 2, we underline front the purlieual crooks and individual differences beca uti lize this two elements in the CDPs model exit be chief(prenominal) to most of part in the consumer decision making process. Environmental Influences We found that the environmental bewitchs for this product are kitchen-gardening, family and situation 1. shade The customer segments in this case interchange over the past year.The Ameri suffer drinking chocolate culture brought on by an insurgency of gourmet burnt umber retailers and than evolved to a show up where lodgeting a burnt umber, exit out for java berry bean, is our little space in the working day to call our own. The evolution of the culture show that how beta of umber in the Ameri bottom culture and they consume it any fourth dimension that more than just consume the hot chocolate in their breakfast early in the morning. 2. Family From the explore, one of all- grave(prenominal) factors that entrance purchasing decision is recommendation from family or friends.3. Situation The consumption of chocolat e bean in this market segments throne a resembling influence by critical point factor means when the whether at that judgment of conviction in winter beat, they allow turn over more umber bean rather than during summer. Figure 2 Consumer Decision Process Model individualist Differences 1. Consumer resources leading furbish up individual influences because the consumers in this case scram different resources peculiarly time, students or tribe that working in the university depart have contrasted time to spend for searching location for the deep brown berry shops.They ordain select the nearer shops to study a little break to discover them fresh. For the bullion resources, they are non diffidence of it because from the look into terms is at 6th factor that go on them to purchase the coffee tree tree and seventh factors that discourage them to not take it. We can predict that, the consumers in this coffee drink market are not wrong sensitive because o f enough money resources. 2. Attitudes The beliefs and feeling that more on prime(a) and wash room place when they consume the coffee impart make differences to their individual factors. percentage Beliefs and feeling 1. 58 Regularly acquire coffee at coffee shop said coffee shops wish break in- fibre coffee. 2. 33 They think coffee shops wander better coffee than those of their competitors 3. 37 Purchase their coffee at coffee shops instead brew it at home normally goes to the appressed one. 4. Personality person that need more push and have busy modus vivendi forget take more coffee rather than people that consume it because of loving activities equal to spend time with their friends with coffee. 3. 2Need Recognition.Consumers in the coffee market volition offshoot recognize that they need to take a cup of coffee at to the lowest degree when there is environmental influences occurs, when their brainpower learn that they must take coffee as the term as consumption norms in their culture, they depart need to take it anytime. That is the rationality why the American leave behind take coffee not only in the morning care Malaysian in their breakfast hardly anytime when it crosses to their mind. They to a fault pass on take coffee more in the winter season because their need to make themselves hot and tasty, as well as the routine and tradition of sharing a drink with friends as a companionable event.For individual differences, the need of the student and people in the university will be differences each of them depends on their psychological affect that when they emergency to have energy or invalidate sleepy when they doing their work, they have to take a coffee. The need actualization for this group will be high when they have many assignments that must be done each time and have to stay up at night. 3. 3Search When the consumers had need recognition process in their mind, they will cabbage with making internal search. In their memor y will have some information when they are exposing and have retention to some coffee nock forrader in their mind. vendor must stimuli the consumer memory with their activity and non- vendor excessively give some conformation in this process that consider as foreign search. Even from the question said that brand is not factors that truly embolden or discourage them to convey the coffee but how the marketers positioning their brand still are important. In this case, the marketers generally make TV commercials, remembering displays, give free samples in the mall and fliers and forward-lookings make-up coupons to influence the consumers but greet that use by the flushed transfuse to position their product using 1.Their position statement is coffee for autonomous Thinkers as approval to consumers that they will get superior drinks in a keen and fond environment. From the report said, People square off coffee for independent Thinkers and come in to the coffee house. Th ey like the message. 2. The sanguinecup believe that choice can make consumers perceive more better to their product and because of that, they offer lineament coffee bean that Have plum Trade Certified Organic coffee are attest by factory farm ( prime(a) Certification dish ups) Signature blends.Flavored coffees in light, medium, and heavy roasts with Class I Specialty soma coffee bean. Non-marketer also will stimuli them because in this case, line from other people experience will influence them to get information to the highest degree a new coffee house. pass from family and friends also will influence them to shoot the coffee shops. The more useful stimuli break in to the consumer the more intention the brand will be keep it the memory of the consumers. 3. 4Pre-Purchase military rating of choices Again this process will influence by environmental influences and individual differences.If they have and experience forwards with contentment after consume the coffee drink, supportive support will be happened to foster them to use this information in the pre-purchase evaluation alternatives process. unless the most important element here is the influence or recommendation from the family and friends to choose the coffee shops or to barter for the coffee brands. Here, factor that progress and discourage will be play in the consumer mind while making evaluation. Research finding is like panel 1 and circuit card 2 that identify somewhat factors encourage and discouraged consumers to produce to the coffee shops. knock back 1 Factors encourage consumers to fall back to the store Factor Description total 1. reparation Highest score show that the consumers prefer to choose the closest store/shops. 6. 6 2. perceptivity 6. 43 3. Atmosphere When going for brotherly ground, atmosphere is important, but less when going alone. 6. 04 4. terms Ranked fifth 5. 19 5. denounce For a favored brand was a reason to purchase coffee for office or h ome use. 4. 95 Table 2 Factors discourage consumers to return to the store Factor Description Score 1. Taste Highest score 6. 90 2. Price Ranked fourth 6. 00 3. scar.Brand be low as a reason for choosing a store or ascertain frequency of visits to the store. 4. 56 Even the locations the first choice but the reason of consumers will return to the store are confederacy of predilection, price and location. Speed of service was also mentioned as a factor when deciding to go. 3. 5Purchase When they purchase the coffee, the factors that will pull out them to come to the shop are the location and the musical note that they will receive from the shop like the gustatory perception of coffee as the second encourage factors and also clean and affable environment.From the report of the colour Cup unaffiliated retailers said People describe coffee for free-living Thinkers and come in to the coffee house. They like the message. This shows the success of the retailers to attract the consumers using the brand guide word and the function that will provide clean and loving environment. 3. 6Consumption From the investigate found that the most positive items sometimes bought at a coffee shop were breakfast forage such as list in circuit board downstairs Table 3 others items deal in coffee shop.Food per centum 1. 2. 3. 4. Bagel and muffins Sweets (cookies and cakes) Chai tea Not ever purchase other items 55 14 8 13 Because of the culture of American like coffee, so there is no special time for them to get a cup of coffee but for the students, the fortune is drinking coffee early in the morning to boost energy before start work or at night to retain and maintain energy to stay up doing assignment until early in the morning. 3. 7Post-consumption Evaluation.From the case, if they have a un mean experiences to the coffee they will make penalization with tell others consumer to not take the coffee at that shop but when they have positive experience they will c ame again. The research finding tell us that taste of the coffee will be the second important factors why they choose the coffee drinks and the first factor they not return to the coffee shops. So, even location will be the first factor to encourage them to come again to the shops but the taste still be most important as the first things that should be focus by the reddenedcup to maintain the product gauge.Quality is more refer to the taste and the convenience is more refer to the location. The level of satisfaction is encourage by this both factors that make the consumers perceive they receive a honorable tone of voice product at the practiced location plus with quality unneeded service in clean and couthie environment. 3. 8Divestment They did not mention about anything for this process. We will suggest them to make research to identify some information like what the customers do with the bean if they brew it at home, the promotional material and maybe the cup to lot the coffee.This information can be use by Crimson Cup to complete create an effective marketing dodging. 4. 0SWOT analysis of Crimson Cup coffee From the case, we analysis their company using SWOT analysis like figure below Strength Weaknesses Statistics shows that elfin prepared coffee retailers are suppuration faster than the mighty Starbucks. Crimson Cup is has specialize in this industry by served independent coffee houses, teaching independent coffee shop owners the skills needed to master a viable and competitive business.Greg Ubert as a founder of this company is the writer of The Seven Steps to Success A Common Sense Guide to acquire In Specialty umber. We captivate this directly to share skills and information with the independent coffee shops retailers but indirectly influence the consumers that they will get quality services from the coffee shops. They have their own website that can search from website address www. forindependenthinkers. com or www. crimsoncup. com . Its unspoiled baristas have impoliteed well over hundred coffee shops around the country.Its starts-up program includes every things needed to operate separately without the constraints of franchise agreements. The coffees that they serve have quality certification like we discuss at the previous chapter. The slogan burnt umber for Independent perceive positively by the consumers. The Crimson Cup just focus limit their activities on the coffee and not answer bagels and muffins or sweets even there is demand of the item that found from the research. Opportunity curse java consumption is very important in American cultures. there is winter season every year in that country. there is demand for items purchase with coffee in the shops (i. e. muffins or cookies) . Recommendation from family or friends is one of the five most important factors for influencing purchase. 58% of respondents who regularly buy coffee at a coffee shop said coffee shops offer better-quality coffee and 3 3% perceive that the coffee quality of this shops better than competitors There are many competitors in coffee industry that serve with multi-style of marketing strategy such as Starbucks.The negative impression of the consumers to the coffee shops will make them distribute the information using word-of-mouth as a penalty or negative reinforcement for them our others consumers. 5. 0 substitutes There are many problems we identify before so the alternatives we provide here will give suggestion to the entire problem that we will use the make effective recommendation in the next chapter. The alternative will be dividing into Additional research that should be done to make assumption. Brand focus market strategy Marketing program (IMC) 5. 1Additional Research for More pinch of the Consumer Behavior. afterward we make analysis, we put the research that had been done and come with the additional research that possible to be done to make more effective assumption for this company target market like table 4 below Table 4 Consumer Research Stage Process through Additional 1 Need recognition Environmental influences Culture Family Situation respective(prenominal) differences Knowledge Attitudes lifestyle Environmental influences neighborly Class Individual differences Consumer resources Value 2 Search Stimuli (to general finding) Marketer (TV commercial, etc) Non-marketer (word-of-mouth).The research should be done more focus on the Crimson Cup. 3 Pre-purchase evaluation of alternative Factor encourage and discouraged to return to the coffee shops What make consumers well-off and come again to the coffee shops. 4 Purchase Location Price disposition/quality of assortment Store business organisation can be dandy research because it will be influence by the social culture. 5 Consumption How they consumer When they consume Where they consume How much they consumer? 6 Post-purchase evaluation Dissatisfaction ? (punishment) Satisfaction? Reaction? 7 Divestment There is no research state in this case.How customers divest packaging /cups? 5. 2Brand Focus Here is the evaluation of the alternatives for the brand focus Coffee for Independent Thinkers Advantages 1. Consumers like the statement, Coffee for Independent Thinkers . Once they see this slogan shows in the window of the coffee house, they will go in the coffee house. Besides that, those coffee houses which display this slogan on the window of the coffee houses are promise to offer quality drinks in a clean and friendly environment. 2. University students are the group of people that public perceives them as independent thinkers.So, by emphasis on Coffee for Independent Thinkers brand, drinking CrimsonCup coffee can be a stylus or lifestyle for the students. 3. When consumers see the seal, they shaft this coffee house is offer good quality coffee and nice environment for them to enjoy the coffee. As a result, Coffee for Independent Thinkers slowly becomes the seal of take in charge for qu ality coffee. This action also ful encounters the need of the consumers that the taste of the coffee is the most important reason that makes consumer to come back again. So, when the consumers see the seal Coffee for Independent Thinkers, 4.Crimson Cup primary customers is the independent coffee shops, other than attracting the consumers, they also can influence the independent coffee shops retailers to perceive positively this brand slogan. 5. The impact of the slogan show from the research that 58% of respondents who regularly buy coffee at a coffee shop said coffee shops offer better-quality coffee and 33% perceive that the coffee quality of this shops better than competitors. Dis wagess 1. Another disadvantages of promoting Coffee for Independent Thinkers brand is CrimsonCup brand has exist for a long time. more or less of the people know about CrimsonCup brand because anything about the coffee will makes consumers think of CrimsonCup. For example, when we mention about Crimson Cup, consumers will start thought of a company who cuckolds good quality coffee bean a company that provide training for those who would like to open a coffee house a company offer good quality coffee and etcetra. 2. If suddenly the company changes CrimsonCup to Coffee for Independent Thinkers brand, consumers will get lost whether this is a new brand or another company cooperate with CrimsonCup.Crimson Cup Advantages 1. It already establish from 1991 and use by the company. Disadvantages 1. Consumers are not truly care about the brand of the coffee when they just simply want to drink coffee. Only those consumers who purchase the coffee chiefly for office or home use will care about the brand of the coffee. So, with only focusing on the CrimsonCup, the impact of promotion or advertising activities not give high impact the consumers intention. below this kind of situation, they will just choose which coffee house is nearer and at ease for them. 2.Consumers has possibility to r anked this brand quality is same like competitors. 5. 3Marketing Strategy To get over with the marketing strategy, we divide the alternatives with 4 Ps. For these alternatives, we are using push strategy to encourage the demand from the consumers and pull strategy to encourage the primary customers to run their own activities that can encourage the increasing of sales. 5. 3. 1Price strategy Pricing strategy for the primary customers preference 1 valuation account Alternative 2 Discount Here are the alternatives for the consumers (ultimate customers) Alternative 1 Membership price.Membership price usually entitle for primary customer who purchase constantly and loyal customers. Most of them are independent coffee shop or restaurant. Here customers need to fill in the social status form. This membership era can last for one year. Crimson Cup provide them special price and keep their purchasing track record. For ultimate customers, every time they purchase at our coffee shop they have to present the membership card and membership number, so they are entitle for 8% send away for each cup of coffee.Each time they purchase by using the membership card they can collect the points and present it at our coffee shop. Other than that the advantage being a membership of CC is tail endd from the track record and base from the personal details we have, we will instruct our customer during their birthday by boastful them birthday coupon and they can turn in it at our coffee shop. Alternative two Quantity give notice Crimson Cup chooses by giving an extra step is one of the good idea to encourage customer to buy in large amount especially independent coffee shop.Every 2kg customers will enjoy 200grms extra. Customer pays for 2kgs price but enjoy 2200grms coffee. From 200grms coffee can cover at least 10 cups of coffee and coffee shop can gain an extra clear from it. For our coffee shop, customers who tramp five items in a single receipt worth(predicate) $70 an d above entitle for a regular cup of cappuccino for free. This idea is to encourage customer to come in a big group. 5. 3. 2 ingathering strategy A product is define as anything that can be offered to the market for attention, use or consumption and that might satisfy a want or need ( Armstrong and Kotler 278).Alternative 1 Crimson Coffee CrimsonCup is a specialisation coffee roaster. Their coffee beans are a special blend that Armando created, which is called Armandos Blend. Its smooth, no aftertaste, and smells delight in force(p)y good and full fill the coffee drinkers need. Alternative 2 Coffee Cup Coffee can use spendable cup to serve their coffee with Crimson Coffee reference and tagline Coffee for Independent Thinkers. This is because we want customers to drink with passion. The brown colour in topic with Crimson Coffee name is actually one different point of paper.The main function of it is actually to reside hit and cold meaning that if customers buy some hot drink t hey can intimately hold the brown tier to avoid them from hot especially kids. It is also same if they buy cold drink, the brown layer is use to absorb the water supply so that customer no need to ask for tissue paper. Alternative 3 Paper Bags. Fair Trade is an innovative, market-based approach to sustainable development. Crimson Cup is certified organic and shade grown. This means that the products you buy maintain biodiversity, provide shelter for migrant birds and help reduce global warming.Crimson Cup Coffee use paper bag and the material can easily recycle. At the paper bag say clearly the Crimson Coffee Brand and tagline Coffee For Independent Thinkers . Behind the paper bag consumers can search the stage for the nearest Quality Certified stores on the CrimsonCup website. Alternative 4 ingathering labeling They should show the Crimson Cup Logo at the packaging of the coffee bean that sell in the grocery or coffee shops. All off the certification they get also should be publish at the packaging or cups and mugs use to serve the coffee. Alternative 5 sell muffins, bagels, cookies and cake.They should sell items like bagels, muffins cookies and cake because of there are demands of the products that consume together with the coffee. 5. 3. 3 promotion Strategy fashioning union back Making roast venture can be one of the methods for its marketing recommendations. For an example making joint venture with famous fast food companies such as MacDonald in order to put coffee in its menu. promptly a days making joint venture is one of the slipway for companies in order to make themselves more popular like PepsiCo which joint venture with KFC or Lipton. 5. 3. 4Place strategy.Clean, friendly environment because consumers more perceive on quality and convenience. Service delivery if the place is too far. come across a target for the range of shops in one town. 5. 4Integrated Marketing Communication program (IMC) Before we suggest alternatives for the IMC, actually the goals of the marketing program are 1. To increase more awareness about the Independents coffee shops, grocery, and restaurant those serves the coffee from Crimson Cup or sell the coffee beans from this company. 2. To increase the knowledge of the consumers about the coffee and this activities will fuck off them to come to coffee shops or create from raw material at home.Alternatives 1Barista4aDay Contest wizard of the programs which are launched is Barista4aDay which is a program for coffee lovers as customers (ultimate customers) or even independent coffee shop owners (primary customers). The program is simple. unitary coffee lover gets to spend a day learning the art of Barista. A Barista is a professional who is highly skilled in coffee preparation, with a all-embracing understanding of coffee, espresso, roast degree and espresso equipment. guide of purchase Try the coffee in front of the coffee shops. Crimson Cup travel to the focus group.Go to university or potential place by lorries. attracters opinion 6. 0Recommendation of Strategy After we list the all alternatives for all the problems that we underline in second chapters, we come with the recommendations below in the combination of strategy that will be run to influence the consumers decision making process. 4 Ps Price Alternative 1 Allowance Alternative two Quantity discount Product Alternative 1 Crimson Coffee Alternative 2 Coffee Cup Alternative 4 Product labeling Alternative 5 sell muffins, bagels, cookies and cake. publicity Making joint venture.Package to make them try the muffin as new product Place Clean and friendly environment. IMC (annual program) Baristas4aDay with personality Research Store occupation 7. 0Plan of action Program Responsible time Description 1. 2. 3. 4. 5. 6. 8. 0Contingency Plan 4 Ps Price Alternative 1 Discount during winter season Alternative two Quantity discount Product Alternative 1 Crimson Coffee Alternative 2 Coffee Cup Alternative 4 Product labeling Promotion Place Clean and friendly environment. IMC (annual program) detail of purchase at the store reciprocation of mouth by a leader 9. 0Conclusion.Consumer decision making model is very useful to analyze the behavior of consumers start from need recognition process until the divestment process. But, to get information for the every step or process in the model, some research should be run because research will supply more reliable and valid information to make our assumption more accurate.The assumption will be use to make prediction to the consumers decision making and this information are useful when the marketer trying to strategize their marketing programme or marketing activities to supply the products that can really transfer value the consumers.Reference Blackwell, Miniard and Engel (2006), Consumer Behavior, tenth Ed. , Thompson, Southwestern Kotler, P. (2006) Marketing Management twelfth edn. , amphetamine Saddle River, New jersey Perentice Hall. Kotler, P and Gary Armstrong (2006). Principles of Marketing 11th edn. Upper Saddle River, New Jersey, USA Prentice-Hall Inc http//www. wikipedia. com http//www. mplans. com http//www. forindipendentthinkers. com.