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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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  • Number of pages: 2

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Business Report

Report to: Coffee Time

By: Clear Direction Consultancy

Regarding: Increasing Sales

1. ExecutiveiSummary

Coffee Time is a chain of five cafes in which operates in Sydney. AlthoughiCoffee Time is located in a prime location, the business has failed to meeticonsumers standards. Possible strategies coffee time are recommended to implement in order to prevent possible sales decline include the implementation of a marketing goal, identifying a target market, packaging, market based pricing, relationship marketing and surveys. These strategies will expand the customer service available and increase the amounts of sales.

2. SituationaliAnalysis

Coffee Time has not grown since 2014 and is at risk of sales decline in coming years, due to their primary and secondary target market needs not being satisfied. This is identified through the internal and external forces influencing the performance and choice of strategies Coffee Time choose. These internal forces include the current strength of Coffee Time as they have a loyal customer base however they aren't being rewarded. An external force for the business may be their time inefficiency.

3.1 MaximisingiCustomeriService

Clear Direction Consultancy proposes that Coffee Time maximises their customer service to in return comply with the needs and problems their customers have identified. By enhancing the level of customer service, the level of consumer satisfaction and a positive reaction is devised towards the product. This would result in a well-built customer base, as customers may repeat their purchases. Coffee Timeiwould benefitifrom adopting a positive attitude, such as asking customers what they would like, training their employees and rewarding them for providing exemplary customer service, establishing and maintaining long-term relationships with customers. This strategy may be used to maximise customer service in Coffee Times primary target market as they identified they are waiting too long for their morning coffee. Therefore if Coffee Time maximises their customer service, customers will be satisfiediwith their purchase and increase sales.

3.2 TargetiMarket

A target market consists of group of present and potential customers a business intends to sell its product to. Coffee Time has conducted market research to identify its primary target market in which is the people catching public transport. This is airesult of their businesses being located near public transport interchanges. Clear Direction Consultancy recognises Coffee Time's primary target market to be office workers. Office workers are often in a rush to get back to work and therefore should be an incentive to increase the speed of coffee making as consumers in this target market is time restricted. The secondary target market is individuals that are retired. Retired individuals are often interested in the quality of the good they purchase. Through the improvement of the secondary and primary target market needs, Coffee Timeibecomes appealing to the demographic. The benefit of identifying and selecting a target market is allowing for the business to satisfy the consumers wants and needs.


The recommended strategy proposedifor Coffee Time that would be most effective to contribute towards the improvement of customer's desire to the good would be the packagingiof salads and sandwiches. Clear Direction Consultancy proposes this strategy as it would be of benefit to the target markets as their recommendation in regards to the refinement would be recognised. Pre-packed salads and sandwiches would be of effectiveness towards the growth of the business as the statistics presented by Coffee Time suggest that this changeiwould spark a shift in perception towards the goods sold. As the primary target market is from the workforce the implementation of pre-packed goods would improve the time efficiency as well as integrate value towards the product, therefore engaging consumers attention. It is of favourable mention that coffee time utilise this strategy as it would incorporate the suggestions consumers have urged to assist in the amelioration of the business.

4.2 Market-based pricing

Market-based pricing would beiadvantageous to Coffee Time as this method sets prices according to the level of supply and demand. Market-based pricing is a method of settling expenses according to the interaction between the levels of supply and demand its usefulness provides coffee time with the ability to reduce costs in production that is unused as only needed products would beiproduced. Therefore ificoffee time has low demand prices will lower and reciprocally when ratesiincrease. The cost of products continually alters with fluctuations in the level of supply and demand. market-based pricing is vital as a basis for the other pricing methods. However, this method can be challenging to apply because the levels of supply and demand will continuously change demand for certain goods such as coffee and cold drinks may vary during seasons therefore during winter coffees will be of high demand and in summer cold drinks will be of high demand. Thus this Method and the maximising customer service would go hand in hand and increase the potential for sales.

4.3 Relationship Marketing

Relationship marketing is a process in which relationshipsibetween clients and employers are encouraged. Coffee Timeiconsumers have taken into account that they are unfulfilled with the treatment coffee time has offered and would instead a much more individualised treatment. This would be of utility to coffee time asiit would develop long-term, cost-effective and robust relationships with their customers. Customers of Coffee Time feel as though their loyalty is not adequately rewarded. A marketing strategy that coffee time may utilise to improve their relationship among consumers is creating a loyalty program. Loyalty programs are reward based programs in which a business offers to customers who purchase their products frequently this program may incorporate discount cards. By integrating this strategy into the business Coffee Time acknowledges the consumers perspective and may also generate a competitive advantage.

5. Surveys

CleariDirection Consultancy strongly recommends a Survey system toibe applied in Coffee Time as the purpose of surveys are to gather feedback from customers regarding their experience with the business. Surveys can be used to measure the level of satisfaction customer experiences, collect market research and to measure customer expectations. Surveys give a sense of the performance of the business. A 1-10 scale foricustomers toichoose from in regardsito the service provided by the business will be effective as the customer's opinions are being counted into the business, therefore, creating a relationship towards customers. Thus, achieving the business' marketing goal of maximising customer service through the integration of this method due to the enhanced feeling of satisfaction within customers.

6. Conclusion

Furthermore, Clear Direction Consultancy highly recommends the outlined strategies of, Maximising Customer Service, Identifying a Target Market, Packaging, Market Based Pricing, Relationship Marketing and Surveys to consequently prevent future sales decline within Coffee Time and instead provide an incentive for sales increase and an encouragement for customers to purchase from Coffee Time.'

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