Coffee Shops

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‘A WAR IS BREWING’

PROGRAMME: MASTER BUSINESS AND ADMINISTRATION

~Learning Issues~

1.To describe consumers’ decision making in different market segments when they choose retailers of coffee using CDP. 2.To identify additional research that should be conducted to validate assumption about consumer decisions at each stage of the CDP model. 3.To learn how to organize marketing program should be provide for our customers after recognize their decision making process. 4.To see the impact of brand positioning to the consumers decision making. 5.To recommend marketing strategy after learn about consumers decision making process.

1.0 Summary

2.0Problem Identification

Figure 1: Crimson Cup market segments

As a wholesaler of coffee and tea and a provider of marketing programs to independent coffee shops and retailers, CrimsonCup has experienced growth over the past decade and is within range of becoming the nation’s second- or third-largest alternative to Starbucks.

Figure 1 show about the segmentation of the Crimson Customers which divided into primary customers and ultimate customers. Primary customers are the independent coffee shops, grocery and restaurant. However the ultimate customers are divided into two groups; first is the consumers that buy the coffee from the primary customers and brewing at home; second is the consumers go to the coffee shops to drink coffee. The important of understanding of the ultimate customers are very important because the demand of the primary customers comes from the demand of ultimate customers as consumers.

This company branding mission has focused on creating the independent retailer as the brand, rather than the product supplier. The CrimsonCup brand is featured on packaged coffee sold by retailers for office or home consumption, on mugs and cups provided to retailers and in some other promotional materials, and the firm is now considering the issue of weather it should be more aggressive in its promotion of the CrimsonCup or Coffee for Independent Thinkers brands as well as how best to develop its strategy of helping the independent coffee shops it serves.

In understanding of the consumers’ wants and need, they search for many information and from the case, there is one consumer research already give some result about coffee consumption that made the university students or people that closely related to the university environment as focus group. The information get from this research need some 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 will be more meaningful to understand the attitudes of the consumers.

By using the consumer decision making model, we are trying to analyze the consumer behavior in consuming coffee and make our recommendations about what strategy should be focus by this company and to suggest some 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 will make 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 individual differences because this two elements in the CDP’s model will be important 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 American coffee culture brought on by an insurgence of gourmet coffee retailers and than evolved to a point where “getting a coffee, going out for coffee, is our...
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