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Expresso Espresso

Case 2 for Marketing Management
by

John Fisher

on 30 October 2012

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Transcript of Expresso Espresso

Expresso Espresso Avery Purser
Amanda Varnum
Ron Fowler
John Fisher
Casey Burns The Problem To open another
branch, or no? Real Problem What can we change in your shop that will cause your shop to be profitable? Competitive Rivalries Within the Industry Atleast 11 different brands of competitors
Biggest competitor is Starbucks
Multiple Locations
Bigger Menu
Established name and brand Threats of New Entrants Starbucks
4 New Locations
Have plenty of money and capital
Bargaining Power of Buyers Have majority of the power
Can pick and choose where to go
Can do without your product
Many substitutes and alternatives Bargaining Power of Suppliers Over 13,000 buyers in target market
Have power in terms of price
Most menu items are 10% less than competitors Threat of Substitutes Shop is very specific
Target market is specific
Many substitutes for coffee shop items
Juice
Soda
Water
ect. What Your Coffee Shop is Doing Right: Very cozy, welcoming feeling
Great customer service
Employee feel like family
Recognizing customers for personal service
Very ethically sound
Donate tips to local charity Importance of Alternatives Company can go one of two ways
Do not have enough money to do huge things
Therefore, you must choose between ONE alternative Alternative 1: "Change Up The Menu" Start serving coffee
Americo is not favored with customers
Add seasonal brews, mixes, and origins
Bring in prepackaged food and snacks
Have breakfast, lunch, and dinner items Alternative 2: "Remodel, Reshape" Remodel the shop
Make room for more seating
Stage for performers
Open Mic Night
Karaoke
Pottery and painting classes
Have something going on every couple weeks
Have room for meetings for students with projector Alternative 3: "Mix Up the Advertising" Although you are already advertising, you need more exposures
Use "research approach" to advertising campaign
Plan of Action: Alternative 1 (Changing Up the Menu) Add Coffee Most customers drink coffee, not Americano
Can bring ethics and caring about community into your coffee choice Fairly Traded Coffees Helps world's producers
Focus on 7 Principles Paying fair wages to the producers by working directly with them. Cooperative workplaces that are democratically run by groups of small farmers. Educating consumers on the importance of purchasing fairly traded coffees. Encouraging producers to engage in environmentally sustainable practices. Providing small scale farmers in developing countries with financial and technical support. Encouraging producers to keep their cultural identity. Have their practices open to the public and to the Fair Trade Federation. Purchasing The Coffee Get Better Quality
Ethically Sound
Same Price
23 roasters in U.S.
Closest is Cafe Campesino in Americus, GA Purchasing From Cafe Campesino Taste Test Results
Provide to about 40 different shops
5lb. bag is on average $45 Menu Items Customers more craft oriented
Add new styles and flavors
Add more options
Be open to suggestions from customers
Change menu by 10% every year
Food Items Customers want food with coffee in one stop
Bring in prepackaged food
Sandwiches, pies, muffins
Breakfast, lunch, and dinner items
Bypass food preparation licenses with prepackaged food
Seasonal Menu Items Have seasonal and holiday additions to your menu
Gives customers "limited time" urgency for their purchases
Customers in turn, advertise for you
Do this with not only beverage, but food items Plan of Action: Alternative 2 (Remodel, Reshape) Remodel the shop
Make room for more seating
Stage for performers
Open Mic Night
Karaoke
Pottery and painting classes
Have something going on every couple weeks
Have room for meetings for students with projector
Full transcript