A perfect start for our day is a cup of coffee. The current trend shows that people are giving more and more importance in our daily life and that aroused my interest in exploring their market strategy.
Unexpectedly, after visiting couple of coffee shops, I found that they have a lot in common in their market Strategy in terms of profitability.
- BRAND&SLOGAN: Brand images is important for establishing a memorable identity within the context of advertising and marketing. Consumers tend to give more weight to products and services connected to a strange brand. The slogan can help to enhance the brand recall and inform their features to customers. For example, Slogan of Tim Hortons is “Always fresh, Always Tim Hortons”. Good brand and slogans will lead to a better reputation.
- DISCOUNT: Many firms put their products on sale, for example, buy one and get one free or buy one and get one 50% off. People will intend to buy one so that they can get one for free, they will feel more economical. By doing this, firms will boost their sales revenue and increase their consumer satisfactions at the same time.
- PRICE: The selling price of Coffee is much higher than what it costs. Coffee is more likely to be essential goods for people nowadays, they can’t live without coffee. The demand elasticity of coffee is very inelastic since people are going to buy it anyways, no matter how much it would cost. As a result, firms can charge a higher price in order to maximize their profit.
- ADVERTISING: Advertising is very obvious in business, it helps to communicate important information to consumers and it plays a very crucial role in building a strong relationship with consumers. Advertising also increases the sales of a particular product and that will boost revenue. You can also know more about your competitors and plan strategically on how to curb competition. A lot of them are doing advertisements through social medias like FaceBook, Instagram, snap chat, etc.
- DIVERSIFICATION:Since capacity and resources are limited, the firms will try their best to optimize their menu, for example, TimHortons provides burgers, donuts, juice, Timbits in order to satisfy all kinds of consumers. A lot of people are tending to eat healthy these days. If they don’t do that, they will lose tremendous amount of consumers.
To sum up, After observing these coffee shops, I understand the importance of market strategy and how to connect theories with actual cases.
Resources: http://www.slideshare.net/saravananmurugan334/starbucks-marketing-strategy-47319493
https://www.reference.com/business-finance/brand-image-important-774b03f3bd4978b4#
http://www.timhortons.com/ca/en/index.php#!
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