How Marketing Managers Use Market Segmentation - Case Study Example

Service Product Report Name & Number Institution RH1008 Marketing Fundamentals Word Count Service Product Report Table of Contents Executive Summary 3 Introduction 4 Situation Analysis 4 Brief Description of the ‘Live Case’ 4 Marketing Environment 4 Target Market, Strategy, and Positioning 5 Reflection on Blog Position 5 Internal Market Environment 6 Marketing Elements 6 Product/Service 6 People 6 Physical Evidence 7 Processes 7 Price 8 Place 8 Promotion 8 Conclusion 9 Recommendation 9 References 10 Executive Summary The purpose of this report is to provide a perception on the Coops’ café regarding its operations and internal environment in addressing the demands and expectations of the consumers. One of the major findings of this report is the influence of social marketing techniques such as Facebook in the maximization of the image and reputation of the firm, as well as enhancing the coverage of the café in the highly competitive industry. Secondly, the employees of this café engage in the production of quality coffee while creating friendly environment for the achievement of the goals and targets at the end of the fiscal period. Similarly, the café adopts effective pricing mechanism such as utilization of regular discounts in accordance with the quantity of the products under procurement. In spite of these elements, it is valuable to note that the report did identify the areas for improvement regarding the operations and transactions of the organizations. For instance, it is valuable for the institution to consider transforming its chairs and tables to enhance flexibility and comfort in the transactions and consumption of the products and services from the café. Moreover, it is critical for the institution to consider maximization of the technological advancements such as Wi-Fi to create memorable experience for the consumers. These developments will enable the firm to maximize the image while engaging in the transaction of quality products in accordance with the demands and expectations of the consumers in the market and industry of operation. Introduction The purpose of this report is to provide a perception on the Coops’ café regarding its operations and internal environment in addressing the demands and expectations of the consumers. From this perspective, the report covers the situational analysis in which it incorporates the assessment of the market, segmentation, and strategies in addressing or satisfying the needs and wants of the target audiences. Similarly, the report integrates the 7Ps in the assessment of the internal environment, thus, the platform for the examination of the relationship between these elements in the maximization of the profit levels and revenues at the end of each fiscal period. Situation Analysis Brief Description of the ‘Live Case’ The focus has been on the assessment of The Coop Espresso Bar, which focuses on the provision or production of diverse coffees in accordance with the demands and expectations of the target audiences. I did visit the bar on Thursday afternoon at 2 O’clock on April 7, 2016. The café exists in the Eagle St, Brisbane City. The physical position is essential in enabling the firm to achieve the goals and targets with reference to maximization of the image while reducing the costs of operations. The café engages in production of several kinds of coffee, thus, the tendency to experience increased traffic on a daily basis. Marketing Environment The institution engages in the production of diverse kinds of coffee, thus, the platform for the maximization of the revenues and profit levels at the end of each fiscal period. On the other hand, the company tends to experience competition from other operators in the industry. In this context, it is valuable to note that the café uses the concept of quality to substantiate the prices it charges for the consumers in the market and industry of operation. Target Market, Strategy, and Positioning Segmentation Characteristics Targets Value Socio-Demographic Gender, age, marital status, income, and religion (Cross, Belich, & Rudelius, 2015) In this context, the café aims at targeting diverse consumers regardless of their socio-demographic diversities This is through creation of diverse quality coffees for all groups Geographic Rural and urban target audiences The café aims at providing services and products to individuals within the city This is through integration of the facility in the city while providing the platform for the on-site or take-away transactions Behavioral Working activities, office workers (Hollensen, 2015) In this context, the café targets the consumers who have no time to prepare coffee at home, office workers, and individuals meeting for diverse reasons The approach enables the café to engage in the production of diverse products to address the needs of the consumers. Psychographic Diverse needs and preferences of the consumers regarding quality (Hassan & Craft, 2012) In this category, there are consumers demanding quality for diverse products The café engages in the production and delivery of quality products and service to address these preferences Reflection on Blog Position From the assessment of the operations of the café, I would offer a rating of 7.5/10 because of the potential room for improvement regarding the provision of quality services and products at the end of each fiscal period. For instance, the café engages in the production of quality coffees while reducing the potential issues of costs. Nevertheless, there is room for the organization to engage in the transformation of its operations through redesigning the chairs and tables for comfort among the employees. Similarly, adoption of technological innovations will be valuable in enabling the organizations to engage in attraction of more consumers, thus, the platform for the maximization of the revenues and profit levels. Internal Market Environment The purpose of this section is to utilize the marketing elements (7Ps) in the course of assessing the internal market environment with the objective of exploring the influence of such elements in the achievement of the goals and targets of the organization (Ivy, 2008; Maringe, 2006). Marketing Elements Product/Service It is valuable to demonstrate the fact that the Coops’ café plays a critical role in the generation of diverse types of coffee with reference to the flat white, long black, and other varieties with the intention of addressing several needs of the consumers. In this context, it is valuable to note that the employees engage in the delivery of quality coffee to substantive the relatively high prices in accordance with the needs and expectations of the consumers. This is valuable in the generation of an appropriate mixture of the tangible and intangible elements in the creation of value, thus, improved image and reputation of the firm in the coffee industry. People In this context, it is valuable to explore the effectiveness and efficiency of the service providers in the delivery of quality customer service. Evidently, the employees were friendly in addressing the needs of the consumers. Similarly, the employees of this café were effective in the production of quality coffee in spite of producing for a greater target market. The treatment of the employees of the café by the management is a demonstration of the influence of the workers in the realization of the goals and targets of the entity in the coffee industry. The employees tend to adhere to a specific script in their treatment of the consumers, thus, the platform for the creation of a valuable environment for the maximization of the revenues and profitability levels at the end of each fiscal period. Nevertheless, the consumers did not demonstrate comfort through engaging in more take-away transactions because of lack of comfortable chairs and tables. From this perspective, there is need to transform such designs with the intention of maximizing the image and reputation of the café. Physical Evidence The café is in the Eagle St, Brisbane City, which makes the entity to experience perfect placement among the crowds where it is easier to facilitate attraction of the consumers or customers (Behera, 2008). The location of the facility in this vicinity is valuable in attraction of more consumers. Nevertheless, the potentiality to locate the facility close to the road continue to associate with the pollution issues in the midst of the growing concern for the global warming or climatic change. This limits the ability and potentiality of the café to address and maximize the image and reputation, as well as the overall profit and revenues levels at the end of each fiscal period. Processes In this context, it is valuable to facilitate exploration of the processes in the course of delivering the best services in accordance with the demands and expectations of the target audiences. From this perspective, the café has been critical in the integration of diverse processes towards production of quality coffee while addressing the demands of the numerous consumers within the specific environment of operation. This is through integration of personal initiatives and friendly encounters among the workers in their interactions with the consumers for the achievement of competitive advantage and sustainability. The processes aim at enhancing efficiency while reducing the cost of operations. Price Effective and proficient pricing strategies are valuable in the course of enabling the organizations to achieve their financial targets while increasing the volume of the consumers seeking to satisfy their needs or wants. In this context, the café aims at adopting and integrating a pricing strategy, which substantiates the focus on quality products and services. For instance, the café charges slightly higher prices in comparison to the competitors within the region. Nevertheless, integration of quality in the products has been essential in enabling the firm to continue in their attraction of the consumers and other stakeholders in maximization of its image and reputation. Similarly, the institution has been able to integrate discounts depending on the quantity procured. The approach is valuable in attracting more consumers while enhancing the market coverage of the café in the coffee industry. Place The institution engages in the provision of its products and services at the physical facility location. In this context, the consumers have the ability and potentiality to procure and consume the products at the physical locations, as well as engage in the take-away transactions in the market and industry of operation. This approach proves to be valuable in the maximization of the revenues while reducing the costs of transactions through enhanced efficiency in supplying the products and services to the consumers. From this illustration, the café has been able to utilize the place element in the course of addressing its expectations and strategic goals in each fiscal period. Promotion One of the most effective approaches in the maximization of the revenues and sales is the integration of effective promotional techniques. This approach proves to be effective and efficient in attraction of consumers through enhancing their awareness of the existing products and services at their disposal. In this context, the café has been able to use social media marketing such as Facebook in the course of enhancing the awareness of the consumers regarding their products and services at their disposal. Additionally, the institution engages in the use of word-of-mouth for the marketing purposes. These approaches are valuable in attracting more consumers in the market while increasing the levels of revenues and profitability at the end of each fiscal period. Conclusion From the above assessment, I would rate the café at 7.5 out of 10. I did experience satisfaction during my visit to the café. It is also essential to note that the staff is very friendly, thus, a platform for the attraction of the consumers in maximization of the profit levels and revenues at the end of each fiscal period. On the other hand, the café did demonstrate efficiency in the generation or development of coffee. The use of social media is valuable in maximizing the image and reputation of the firm, as well as its market coverage in the coffee industry. Conclusively, I would recommend the café for anyone to check in at the organization whenever he or she is in the city. Recommendation From the above assessment of the café, I would make the following recommendations, which will aid the effectiveness and efficiency of the institution to achieve competitive advantage. In the first instance, there is need for the café to consider integration of a shade because of the sunny weather in Brisbane. The approach will address the needs of the consumers during sunny and rainy seasons. Secondly, the café should consider redesigning the tables and chairs while aiming at realization of comfort among the target audiences. Thirdly, there is need for the café to consider maximization of the technological advancements through integration of elements such as Wi-Fi, thus, the platform to encourage customers to sit rather than focus on take-away coffees. References Behera, M. (2008). The 7Ps of Marketing Mix. Retrieved November, 16. Cross, J. C., Belich, T. J., & Rudelius, W. (2015). How marketing managers use market segmentation: an exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer International Publishing. Hassan, S. S., & Craft, S. (2012). Examining world market segmentation and brand positioning strategies. Journal of Consumer marketing, 29(5), 344-356. Hollensen, S. (2015). Marketing management: A relationship approach. Pearson Education. Ivy, J. (2008). A new higher education marketing mix: the 7Ps for MBA marketing. International Journal of educational management, 22(4), 288-299. Maringe, F. (2006). University and course choice: Implications for positioning, recruitment and marketing. International Journal of Educational Management, 20(6), 466-479. Oly Ndubisi, N. (2007). Relationship marketing and customer loyalty. Marketing intelligence & planning, 25(1), 98-106. Wedel, M., & Kamakura, W. A. (2012). Market segmentation: Conceptual and methodological foundations (Vol. 8). Springer Science & Business Media. Read More