Coffee Shops Essay

1. To describe consumers conclusion reservation in different market segments when they choose retailers of deep dark-brown exploitation CDP. 2. To hear additional inquiry that should be conducted to validate self-assertion closely consumer determinations at each stage of the CDP model. 3. To learn how to organize merchandising program should be provide for our customers later on recognize their decision fashioning adjoin. 4. To induct word the collision of crisscross positioning to the consumers decision making. 5.To recommend merchandise outline after learn virtu exclusivelyy consumers decision making cognitive exhibit. 1. 0 Summary 2. 0Problem acknowledgment picture 1 ruby form market segments As a wholesaler of hot chocolate tree and tea and a provider of marketing programs to self-employed person drinking chocolate pass on bean shops and retailers, carmineCup has populated growth over the past decade and is at bottom range of becoming the nat ions second- or third-largest alternative to Starbucks. Figure 1 show about the segmentation of the rosy-cheeked Customers which divided into capital customers and supreme customers.Primary customers ar the independent cocoa shops, grocery and restaurant. all the same the ultimate customers are divided into devil groups first is the consumers that cloud the umber bean bean from the primary customers and brewing at home second is the consumers go to the drinking chocolate bean shops to drink umber. The strategic of understanding of the ultimate customers are in truth cardinal beca aim the demand of the primary customers hails from the demand of ultimate customers as consumers.This guild post mission has focalisati angiotensin converting enzymed on creating the independent retailer as the brand, quite a than the product supplier. The floridCup brand is featured on packaged cocoa interchange by retailers for office or home expenditure, on mugs and cups provi ded to retailers and in virtually other processional materials, and the firm is now considering the issue of weather it should be more(prenominal)(prenominal) aggressive in its promotion of the CrimsonCup or drinking chocolate bean for unaffiliated Thinkers brands as intimately as how best to develop its system of assist the independent deep brown bean berry bean shops it serves.In understanding of the consumers wants and need, they search for many instruction and from the character, on that point is one consumer question already give roughly number about coffee consumption that made the university students or tidy sum that or so related to the university environment as focus group. The study get from this look for need nigh additional approval from others finding to made their assumption about the behavior of the consumers to the Crimson Cup product or information related to the coffee consumption allow be more signifi give the gatet to understand the a ttitudes of the consumers.By using the consumer decision making model, we are assay to analyze the consumer behavior in consuming coffee and clear our passports about what strategy should be focus by this come with and to suggest some(prenominal) alternatives to solve their problems and to get more opportunities in this industry. 3. 0Analysis We are using the consumers decision making model to analyze the consumer behavior of this company. 3. 1Market Segmentation Evaluation The differences of consumers in making decision lead hasten them divided into difference segments in the market.Before we continue to discuss about the consumer decision making process that shows in figure 2, we underline first the environmental influences and soul differences beca intention this devil elements in the CDPs model get outing be central to most of part in the consumer decision making process. Environmental Influences We found that the environmental influences for this product are culture, family and situation 1. Culture The customer segments in this case change over the past year.The Ameri nominate coffee culture brought on by an insurgence of gourmet coffee retailers and than evolved to a point where acquiring a coffee, going out for coffee, is our little space in the work day to call our own. The evolution of the culture show that how important of coffee in the American culture and they consume it anytime that more than just regaining the coffee in their breakfast early in the dawn. 2. Family From the research, one of important component parts that influence purchasing decision is testimony from family or friends.3. Situation The consumption of coffee in this market segments can a uniform influence by occasion federal agent mover when the whether at that time in winter, they leave behind gravel more coffee quite a than during summer. Figure 2 Consumer last Process Model Individual Differences 1. Consumer resources pull up stakes base individual infl uences beca call the consumers in this case hand over different resources in particular time, students or people that operative in the university give corroborate limited time to spend for inquiring location for the coffee shops.They get out choose the adjacent shops to take a little break to make them fresh. For the money resources, they are not unobtrusiveness of it because from the research hurt is at sixth factor that back up them to corrupt the coffee and s howeverth factors that discouraged them to not take it. We can forebode that, the consumers in this coffee drink market are not price sensitive because of enough money resources. 2. Attitudes The beliefs and feeling that more on smell and convenience place when they consume the coffee go forth make differences to their individual factors.Percent Beliefs and feeling 1. 58 Regularly profane coffee at coffee shop said coffee shops vortex check- type coffee. 2. 33 They hark back coffee shops betray better cof fee than those of their competitors 3. 37 Purchase their coffee at coffee shops instead brewing it at home comm nevertheless goes to the snuggled one. 4. Personality person that need more energy and perk up busy lifestyle impart take more coffee rather than people that consume it because of fond activities like to spend time with their friends with coffee. 3. 2Need Recognition.Consumers in the coffee market will toss off recognize that they need to take a cup of coffee at least when there is environmental influences occurs, when their mind set that they must take coffee as the condition as consumption norms in their culture, they will need to take it anytime. That is the rationalness why the American will take coffee not only in the morning like Malaysian in their breakfast tho anytime when it crosses to their mind. They also will 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 drin k with friends as a social 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 want to bring on energy or avoid sleepy when they doing their work, they ca-ca to take a coffee. The need recognition for this group will be high when they have many appellatives that must be done every time and have to stay up at night. 3. 3Search When the consumers had need recognition process in their mind, they will start with making internal search. In their memory board will have some information when they are exposing and have retention to some coffee brand onward in their mind.Marketer must stimuli the consumer memory with their activity and non-marketer also give some conformation in this process that consider as external search. Even from the research said that brand is not factors that really instigate or discourage them to choose the coffee but how the marketers positi oning their brand still are important. In this case, the marketers broadly make TV commercials, keep displays, give free samples in the meat and fliers and invigoratedspaper coupons to influence the consumers but go on that use by the Crimson Cup to position their product using 1.Their position statement is coffee for self-sufficing Thinkers as approval to consumers that they will get smell drinks in a clean and neighbourly environment. From the report said, People see coffee for independent Thinkers and come in to the coffee house. They like the nub. 2. The Crimsoncup believe that look can make consumers perceive more better to their product and because of that, they passing play eccentric coffee bean that Have Fair Trade conscious Organic coffee are certified by USDA ( choice certificate Services) Signature blends.Flavored coffees in light, medium, and dark roasts with Class I Specialty station chocolate. Non-marketer also will stimuli them because in this case, w ord-of- let the cat out of the bag from other people experience will influence them to get information about a rude(a) coffee house. Recommendation from family and friends also will influence them to choose the coffee shops. The more effective stimuli expose to the consumer the more intention the brand will be keep it the memory of the consumers. 3. 4Pre-Purchase Evaluation of options Again this process will influence by environmental influences and individual differences.If they have and experience before with satisfaction after consume the coffee drink, autocratic reinforcement will be happened to march on them to use this information in the pre- procure evaluation alternatives process. nevertheless the most important element here is the influence or recommendation from the family and friends to choose the coffee shops or to buy the coffee brands. Here, factor that encourage and discourage will be play in the consumer mind era making evaluation. Research finding is like d rift back 1 and table 2 that bring up about factors encourage and discouraged consumers to return to the coffee shops. board 1 actors encourage consumers to return to the store Factor description take in 1. Location Highest score show that the consumers p equal to choose the closest store/shops. 6. 6 2. Taste 6. 43 3. Atmosphere When going for social grounds, atmosphere is important, but less when going alone. 6. 04 4. Price Ranked ordinal 5. 19 5. strike off For a favored brand was a reason to leveraging coffee for office or home use. 4. 95 skirt 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. Brand.Brand ranked low as a reason for choosing a store or determining frequency of visits to the store. 4. 56 Even the locations the first option but the reason of consumers will return to the store are conclave of grasp, 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 attract them to come to the shop are the location and the tint that they will receive from the shop like the reek of coffee as the second encourage factors and also clean and hail-fellow environment.From the report of the Crimson Cup sovereign retailers said People see hot chocolate for fissiparous 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 shibboleth and the services that will provide clean and friendly environment. 3. 6Consumption From the research found that the most positive items sometimes bought at a coffee shop were breakfast aliment such as list in table below board 3 others items buy in coffee shop.Food Percentage 1. 2. 3. 4. beigel 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 probability 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 bad experiences to the coffee they will make penalisation with tell others consumer to not take the coffee at that shop but when they have positive experience they will came 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 Crimsoncup to maintain the product quality.Quality is more refer to the taste and the convenience is more refer to the location. The le vel of satisfaction is encourage by this both factors that make the consumers perceive they receive a trustyness quality product at the right location plus with quality supererogatory services in clean and friendly environment. 3. 8Divestment They did not mention about anything for this process. We will suggest them to make research to light upon some information like what the customers do with the bean if they brew it at home, the packaging and maybe the cup to serve the coffee.This information can be use by Crimson Cup to complete building an effective marketing strategy. 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 pocket-size prepared coffee retailers are growing 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 necessary to operate a viable and competitive business.Greg Ubert as a founder of this company is the generator of The Seven Steps to Success A Common Sense slip away to Succeed In Specialty coffee. We see this directly to circumstances 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 expert baristas have opened well over hundred coffee shops around the country.Its starts-up program includes every things needed to operate independently without the constraints of franchise agreements. The coffees that they serve have quality proof like we discuss at the previous chapter. The slogan Coffee for Independent perceive positively by the consumers. The Crimson Cup just focus limit their activities on the coffee and not serving dishels and muffins or sweets even there is demand of the item that found from the research. Opportunity Threat Coffee 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 fiver 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 33% 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 punishment or negative reinforcement for them our others consumers. 5. 0Alternatives There are many problems we identify before so the alternatives we provide here will give tip 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 Marketing strategy Marketing program (IMC) 5. 1Additional Research for More understanding of the Consumer Behavior.After we make analysis, we put the research that had been done and come with the additional research that contingent to be done to make more effective assumption for this company target market like table 4 below Table 4 Consumer Research Stage Process Done Additional 1 Need recognition Environmental influences Culture Family Situation Individual differences fellowship Attitudes lifestyle Environmental influences Social 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 d iscouraged to return to the coffee shops What make consumers satisfied and come again to the coffee shops. 4 Purchase Location Price disposition/quality of assortment enclose clientele can be good 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) pleasure? 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 st udents 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 gallery or lifestyle for the students. 3. When consumers see the seal, they know 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 guarantee for quality coffee. This action also fulfills 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 s hop said coffee shops offer better-quality coffee and 33% perceive that the coffee quality of this shops better than competitors. Disadvantages 1. Another disadvantages of promoting Coffee for Independent Thinkers brand is CrimsonCup brand has exist for a long time.Most of the people know about CrimsonCup brand because anything about the coffee will makes consumers think of CrimsonCup. For example, when we mention about CrimsonCup, consumers will start thinking of a company who transferrals 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 confused 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 really bring off about the brand of the coffee when they just simply want to drink coffee. Only those consumers who purchase the coffee mainly 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. Under this kind of situation, they will just choose which coffee house is nearer and convenient for them. 2.Consumers has possibility to ranked this brand quality is same like competitors. 5. 3Marketing Strategy To overcome 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 change magnitude of sales. 5. 3. 1Price strategy Pricing strategy for the primary customers Alternative 1 recompense Alternative 2 discount Here are the alternatives for the consumers (ultimate custo mers) Alternative 1 Membership price.Membership price usually ennoble 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 station form. This social station duration 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% discount for each cup of coffee.Each time they purchase by using the membership card they can collect the points and deport it at our coffee shop. Other than that the advantage being a membership of CC is based from the track record and base from the personal enlarge we have, we will appreciate our customer during their natal day by giving them birthday coupon and they can redeem it at our coffee shop. Alternative two Quantity discount Crimson Cup ch ooses by giving an extra amount is one of the good idea to encourage customer to buy in large amount especially independent coffee shop. every(prenominal) 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 profit from it. For our coffee shop, customers who assure five items in a single receipt worth $70 and 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 harvest-tide 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 long suit coffee roaster. Their coffee beans are a special blend that Armando created, which is called Armandos Blend. Its smooth, no aftertaste, and smells delightfully good and full fill the co ffee drinkers need. Alternative 2 Coffee Cup Coffee can use disposable cup to serve their coffee with Crimson Coffee name and tagline Coffee for Independent Thinkers. This is because we want customers to drink with passion. The brown color paper with Crimson Coffee name is real one different layer of paper.The main function of it is actually to absorb hit and cold meaning that if customers buy some hot drink they can easily hold the brown layer 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 so that customer no need to collect 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 migratory birds and help land global warming.Crimson Cup Coffee use paper bag and the material can easily recycle. At the paper bag d eclared clearly the Crimson Coffee Brand and tagline Coffee For Independent Thinkers . female genitalia the paper bag consumers can search the map for the nearest Quality Certified stores on the CrimsonCup website. Alternative 4 Product 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 support 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. 3Promotion Strategy devising joint venture reservation joint 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. Now a days making joint venture is one of the ways for compani es in order to make themselves more popular like PepsiCo which joint venture with KFC or Lipton. 5. 3. 4Place strategy. showy, friendly environment because consumers more perceive on quality and convenience. Service speech if the place is too far. Make 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 chivy them to come to coffee shops or brewing at home.Alternatives 1Barista4aDay conflict One 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. One 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 comprehensive understanding of coffee, espresso, roast degree and espresso equipment. Point of purchase reach the coffee in front of the coffee shops. Crimson Cup exit to the focus group.Go to university or potential place by lorries. loss leaders 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 confederacy of strategy that will be run to influence the consumers decision making process. 4 Ps Price Alternative 1 perimeter 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. Promotion Making joint venture.Package to make them try the muffin as new product Place Clean and f riendly environment. IMC (annual program) Baristas4aDay with personality Research Store clientele 7. 0 invention of action Program Responsible Duration 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) Point of purchase at the store Word 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 provide 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 ma rketer 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, 10th Ed. , Thompson, Southwestern Kotler, P. (2006) Marketing Management twelfth edn. , Upper Saddle River, New Jersey Perentice Hall. Kotler, P and Gary Armstrong (2006). Principles of Marketing eleventh edn. Upper Saddle River, New Jersey, USA Prentice-Hall Inc http//www. wikipedia. com http//www. mplans. com http//www. forindipendentthinkers. com.