My App Pitch BU1108 | Managing Consumer Markets Assessment Task 4 Prepared BY RACHEL HAY for EXEMPLAR Exemplar2 Contents 1. Part 1.................................................................................................................................. 3 2. Introduction........................................................................................................................ 3 3. Situation Analysis................................................................................................................ 3 3.1. Description of Service Product firm...................................................................................... 3 3.2. MarketingEnvironment ....................................................................................................... 3 3.3. Target Market, Strategy and Positioning .............................................................................. 4 3.3.1. Market Segment.................................................................................................................. 4 3.3.2. Target marketing strategy ................................................................................................... 4 3.3.3. Positioning.......................................................................................................................... 5 3.4. Importance Performance Matrix.......................................................................................... 6 3.5. SustainableMarketing ......................................................................................................... 6 4. Conclusion .......................................................................................................................... 7 5. Part 2.................................................................................................................................. 8 5.1. Story Board Template.......................................................................................................... 8 5.2. Summary ............................................................................................................................ 9 Reference List .................................................................................................................. 103 1. Part 1 2. Introduction By investigating Coffee Corner’s marketing services, this summary aims to present key areas of concern, which will feed into a pitch for an App that addresses one key issue. Data collection methods utilised throughout the summary include both primary data, through mystery shopper observations, and secondary data, sourced from textbooks, and journals. This report contains a situational analysis outlining Coffee Corner’s marketing environment, target market strategy and positioning. This evaluation will ascertain areas of concern, followed by a conclusion and storyboard of the potential App. 3. Situation Analysis 3.1. Description of Service Product firm The physical evidence across all Coffee Corner restaurants is consistently attractive. The intangibility characteristic of the service process provided customers with physical cues such as stylish and modern architectural design and décor, professionally dressed employees and eye-catching advertising in order to reassure buyers. Coffee Corner has difficulty providing a relaxing ambience, as the busy locations create a loud environment that makes customers feel unsettled. Many employees involved in the service encounter were efficient and helpful in delivering the well-presented product. The overall servicescape was spacious and visually pleasing, and contributed largely to enhancing value for customers. 3.2. Marketing Environment In regards to the macro environment, shifts in sociocultural trends and values have a large impact on a business’ ability to serve its consumers, through new trends, adopted behaviours or lifestyle preferences (Solomon, Hughes, Chitty, Marshall and Stuart, 2012). The current sociocultural value of technology has prompted Coffee Corner to offer Free Wi-Fi to their customers to meet demands and compete with competitors. In order to target different market segments, they also promote the older values of putting the phones down and connecting over lunch without interruption where they provide a box in the centre of the table. The sociocultural trend of healthy eating and wellbeing is a lifestyle preference that Coffee Corner has embraced, through offering a large variety of healthy meal and smoothie options as well as listing calories for each item on their menu. Another influence is that of legal and political forces, with Coffee Corner obligated to comply with certain laws and standards imposed by government. They must be aware of changing regulations within the hospitality industry to be able to serve customers to the legal standard. There is legislation that governs every aspect of their trade, including food safety, liquor licensing, trade requirements and workplace health and safety.4 3.3. Target Market, Strategy and Positioning 3.3.1.Market Segment Whilst the Coffee Corner aims provide value to a large range of markets from all ages and statuses, the main target market is believed to be predominantly Generation X women (see Figure 1). The company’s target market refers to a group that the organisation selects to turn into customers as a result of segmentation and targeting (Solomon et al., 2012). Working class – middle class women with social and outgoing personalities are targeted through advertising and campaign initiatives. The Coffee Corner is a place to network and connect with others, whether it be for work or personal enjoyment. The Coffee Corner targets suburban areas where friends and families can regularly meet for a meal or coffee, whilst encouraged to “put down the phone and reconnect”. They provide an all-day breakfast menu to cater for different lifestyles and offer a variety of products to target a range of market segments. Table 1: Segmentation Variables Segmentation Variables for Coffee Corner Geographic Density Suburban Demographic Age Gender Family Life-Cycle Income Generation 35 – 45 Predominantly female, also male Married, with or without children Middle – High Level Generation X Psychographic Social Class Lifestyle Personality Working class – Middle Class Strivers & Achievers Gregarious Behavioural Occasions Benefits Loyalty Status Regular Occasion Quality & Service None - Medium 3.3.2.Target marketing strategy A differentiated targeting strategy is applied by Coffee Corner to provide value for each different customer group. A differentiated targeting strategy develops one or more products for each of several distinct customer groups and making sure these offerings are kept separate in the marketplace (Solomon et al, 2012). Coffee Corner chose a differentiated strategy to target consumers with different product needs who may be choosing among other well-known brands. This is achieved through offering a broad range of products and prices and catering to different dietary requirements and lifestyles. For example, Coffee Corner offers a children’s meal to target kids, alcoholic beverages for adults and targets Baby Boomers through advertisements encouraging “putting the phone down and reconnecting”. It is important to communicate products differently to appeal to all segments through differentiated marketing.5 3.3.3.Positioning The final stage of developing a target marketing strategy process involves positioning, which refers to developing a marketing strategy aimed at influencing how a particular market segment perceives a good or service in comparison to the competition (Solomon et al., 2012). As seen in Figure 2, the perceptual map locates Coffee Corner in relation to key competitors as perceived in the minds of consumers, comparing the criteria of price and quality of products. Coffee Corner is in an advantageous position against key competitors, with a high product quality level and affordable pricing. As seen in Figure 2, RM & Co Coffee Bar can only provide value for those who can afford their product. A visible disadvantage to Coffee Corner would be that Jamaica Black is perceived as having products of equal quality yet less expensive. Other attributes should be considered in order to successfully compare competitors, including speed of service, accessibility, consistency and product variety. For example, Yarrafas offers drivethrough service, Martello is targeted at a specific “healthy” market and Julie’s Coffee does not offer meals. Table 2: Perceptual Map6 3.4. Importance Performance Matrix The observed issues were mapped as attributes to create an Importance/Performance Matrix as shown below in Figure 3. The most frequent issue was the extensive wait time, closely followed by the lack of service qualities shown by staff. This is evident in the matrix as customer service skills and speed need to be improved as they are of high importance to consumers yet Coffee Corner is currently underperforming. Other traits needing improvement include the noise level, staffing levels and staff training. On a positive note there was high quality food, variety and value for money in regards to the product, and for that reason, these are listed as attributes to maintain. The pleasing servicescape, atmosphere and architectural design were also of high performance and importance and should therefore be maintained. Figure 3: Importance/Performance Matrix 3.5. Sustainable Marketing Coffee Corner’s engagement in sustainable marketing practices was evident through observational and secondary research. Sustainable marketing involves the adoption of sustainable business practices that create better businesses, better relationships and a better world (Anderson, 2015). Through secondary research it was found that Coffee Corner’s coffee is UTZ Certified, meaning it supports sustainable farming, working and environmental practices. Coffee Corner’s support for this program shows its contribution towards the environmental aspect of sustainability, as it means their coffee is grown responsibly, farmers generate greater income and it protects natural resources (Coffee Corner, 2016). Efforts towards sustainable packaging and waste reduction were also observed. Coffee Corner’s social sustainability was clearly evident through the promotion of community relationships, sponsorships and events. These included holding and sponsoring numerous charity balls and fundraising events, their sponsorship and strong association with sporting clubs such as the Queensland Firebirds and offering of a “Young Achievers Award” to recognise and reward positive achievements of young Australians. Whilst economic practices were not evident simply through observational or secondary research, it is clear Coffee Corner implements7 effective practices as no amount of excellent social and environmental performance will prolong the life of a company that is economically unsustainable (Doane & MacGillivray, 2001). 4. Conclusion An investigation of Coffee Corner’s marketing services highlighted key areas of exceptional performance and of concern for the business. The main issues observed were the long length of time during waiting to be served, closely followed by the lack of customer service skills shown by staff members. For this reason the goal for my app is to provide a pre order service.5. Part 2 5.1. Story Board Template Name: Student Name I brainstormed with: Student X, Student Y and Student Z Problem – set the scene Identify the gap Show solutions to the problem using images Notes Notes: Notes: Show solutions to the problem using images Show solutions to the problem using images Show solutions to the problem using images Notes: Notes: Notes: Ok, this is taking ages!!! I should have ordered ahead!! Hey there is an App for that! !!! You can pre-order using the app You can say which store you want to collect from You can select the time you want to pick up You can select from the menu You can count your rewards Wow, that’s great!9 5.2. Summary The purpose of my app was to provide an alternative ordering service for customers. There were several gaps, for example, noise of the physical environment, and people and process issues. However, I selected pre-ordering as it was identified in the performance matrix as an area that required improvement. My target market are high income, gen X women with children as this target group was most observed attending the café. Many of these women were either on the way to collect children from school or they had just collected them. The app will allow the target group to order faster, accommodating their fast paced lifestyle. Only one other competitor has an app and it is limited by having only one page for information. My app will allow the target market to pre-order their coffee and/or meal.1 Reference List Anderson, M. (2015). Sustainable Marketing. Retrieved from http://www.redlandchamber.org.au/resources/member-articles/marketing/46- what-issustainable-marketing B2B International. (2015). The Importance of an Augmented Product. Retrieved https://www.b2binternational.com/b2b-blog/2015/06/03/the-importance-of-an- augmentedproduct/ Coffee Corner (2016) Our Sustainability. Retrieved from http://www.coffeeclub.com.au/community/our-sustainability/ Doane, D., & Macgillivray, A. (2001). Economic sustainability - the business of staying in business. R & D Report, 0.1, 3–4. Retrieved from http://isites.harvard.edu/fs/docs/icb.topic140232.files/RD_economic_sustain.pdf MarketingTeacher.com. (2014, May 8). Physical evidence - Marketing Mix. Retrieved from http://www.marketingteacher.com/physical-evidence-marketing-mix/ Solomon, M., Marshall, G., Stuart, E., Chitty, B., Hughes, A. (2012). Marketing: Real People, Real Choices. Melbourne, Australia: Pearson Education Inc. Walden, S. (2013). The importance of cultivating customer relationships. Retrieved from http://mashable.com/2013/11/25/customer-relationships/#HBJrv_ssgkqQ