Question

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At Tim’s Coffee Shoppe, Tim is considering selling breakfast quiches (eggs and cheese baked in individualized pie shells) from a local baker and fruit smoothies at his store. In Chapter 11 page 338 through 342 read “Developing a Marketing Strategy and Developing a Marketing Mix.”

• Will these products fit with his existing market segment? Explain why it is or is not a good fit using marketing mix terminology (citing references if needed).

• Then go into Tim's Coffee Shoppe and look at the menu board and see if you have any recommendations for better signage.

Answer 1

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Tim’s coffee shop is located in downtown of Sunnydale, Illinois near railway station and university which is one of busiest town, being centrally located the company will be able to attract more and more consumers. The main consumers of the coffee shop are teenagers, college going students, coffee lovers. It will focus on attracting all the clients who are fond of coffee. With the focus on quality service, product variety, and technological driven environment the company will be able to attract more and more clients.

The organization is primarily a coffee shop which focuses on selling different kind of coffee to the target consumers. With the intense and increasing competition as well as changing needs and preferences of the consumers the company’s idea to sell breakfast quiches from the local baker and fruit smoothies will helps the company to attract more and more consumers and will be able to help company to improve on its performance. This will fit with the existing market. If we consider the wider market analysis, then we will see that many fast food centers and coffee shops have started selling breakfast quiches to increase its sales and survive in the market.

4 P’s of marketing Strategy:

The main elements of Marketing mix are 4 P’s which are Product, Price, Place, Promotion.

Product:

The company will focus on providing differentiated products to its customers i.e. offering different choices in coffee, ranging from a regular coffee to decaffeinated coffee beverages. The company needs to expand its product range by delivering a wide selection in Italian, cold, iced beverages of coffee and breakfast quiches. The company can also increase its product range by indulging in Italian-style espresso beverages. The main essence of the products of Tim’s Coffee will be the flavor, aroma and the taste of the coffee. This will help in creating an experience to their customers. (Kotler Philip 2000).

With the wide range of products the company will be able to attract more and more consumers. Usually students look for fruit smoothies and breakfast quiches.

Price:

The pricing of the Tim’s Coffee is comparatively higher than its competitors; initially the company must focus on low cost leadership along with offering differentiated product. Once the consumers have acquired the aroma and flavor of the coffee offered at Tim’s Coffee shop, the company can increase the prices as the company will be able to attain the loyal customers by then.

The company should keep the prices of breakfast quiches at low cost, because with economic downturn the consumers are focusing on value meals.

Place:

The company is located in Sunnydale, Illinois, which is one of busiest town, being centrally located the company will be able to attract more and more consumers. The store is located at a high traffic and visibility location so as to attract maximum customers.

Promotion:

Tim’s Coffee Shop will offers several promotional programs which will be focused on increasing the customer loyalty and the frequency of store visits by cardholders. The other most effective promotion method that works for Tim’s Coffee is ‘Mouth of word’. With added menu options, the company will be able to attract more and more customers.

Summary:

With the change in its product strategy (expanding its product category) and implementing the required changes the company will be able to increase its sales and will be able to attain maximum customers. This will help in attracting customers and increasing customer loyalty.

Sign board:

The company should change its sign board and categorize the products offered under different categories like:

• Beverages:
• Hot beverages: Tea/Coffee,
• Cold beverages can be categorized under three –
• Ice blended coffee,
• Cream blended coffee,
• Smoothies and other bottled drinks
• Sandwiches and bakes
• Desserts which will include cookies and donuts

The company should categorize the products under different categories which will help the consumer to enhance the selection of the product.

References:

Kotler Philip (2000), Marketing Management, millennium edition.

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