Case Memo

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School

St. John's University *

*We aren’t endorsed by this school

Course

600

Subject

Marketing

Date

Feb 20, 2024

Type

docx

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Uploaded by CorporalLobster3174

Chagrin Coffee Company Case Memo Analysis Assignment DO NOT repeat facts from the case . I KNOW THE FACTS. I wrote it. I am looking to see how you apply what you learned about marketing this semester to this specific case in each section of the Marketers Toolbox: Target Market (targeting, positioning, segmenting) 1. Limited Understanding of Customer Behavior: The company's knowledge about consumer preferences is based on a small survey and retailer feedback. There's a need for more comprehensive market research to understand the changing needs and behaviors of the target market. 2. Exclusivity Perception: While exclusivity is seen as a positive aspect, it may limit market reach. The company needs to balance the exclusivity appeal with strategies that increase brand exposure, especially considering potential customers who are not currently aware of the product. 3. Age Group Focus: The focus on the 35 to 55 age group might limit growth opportunities. Exploring ways to appeal to a broader demographic, including younger consumers, could be beneficial. Product 1. Limited Product Variety: The company offers only three types of blends (mild, medium, and dark roast). Considering consumer preferences for flavored and decaffeinated options, expanding the product line could attract a wider audience. 2. High Packaging Costs: The premium metal containers add significant costs to each package. Exploring more cost-effective packaging options without compromising quality can enhance the overall product value proposition. 3. Resistance to Product Expansion: The reluctance to invest in flavored and decaffeinated products might hinder potential sales growth. Evaluating the market demand and considering a phased approach to product expansion could be beneficial. Promotion 1. Limited Social Media Presence: The company's current social media efforts are minimal. Embracing the suggestion of a social media influencer program on platforms like Facebook and Instagram could tap into untapped markets, such as college students and potential celebrity endorsements. 2. In-Store Tastings Dependency: While in-store tastings are valuable, diversifying promotional efforts to include more online advertising and other special events can help reach a wider audience and increase brand awareness. 3. Lack of Customer Engagement: The email list is an underutilized asset. Developing a robust customer engagement strategy through regular communication, promotions, and targeted campaigns can strengthen the customer relationship and drive repeat business. Place

1. Limited Geographical Reach: The company operates in a few states, primarily in metropolitan areas. Exploring expansion into new regions and markets can help capture a broader customer base. 2. Retail Presence Exploration: While physical stores are not an immediate option, exploring alternative methods to expose customers to products, such as collaborations with cafes or specialty stores, can contribute to brand visibility. 3. Salesperson Expense Limitations: The $1,000 per month travel expense limit might restrict the salesperson's effectiveness. A reevaluation of the budget to allow for strategic travel to key locations and events can aid in both maintaining current relationships and expanding into new outlets. Price 1. Resistance to Sales Incentives: The competitive environment suggests a need for reconsidering the stance on sales incentives. Offering targeted incentives to retailers, beyond quantity discounts, could motivate increased sales efforts. 2. Perception of Luxury Purchase: Addressing the perception of the product as a luxury purchase could involve targeted marketing campaigns emphasizing the value and unique qualities of Chagrin Coffee compared to competitors. 3. Limited Budget for Marketing: While the budget constraints are acknowledged, a persuasive case should be built to secure additional funds for crucial marketing initiatives, especially those that promise a quick and positive return on investment. External Forces Impact? Specifically, Economics/Technology/Laws/Society/Innovation/Competition/Demographics - Economic conditions play a role in shaping consumer behavior when it comes to purchasing premium items like gourmet coffee. In times of economic decline consumers may reduce their spending on essential items, which can potentially affect the sales of Chagrin Coffee. Moreover, factors such as inflation and the fluctuating costs of coffee beans can have an impact, on the production expenses. - Advancements, in technology have an impact on aspects of the business ranging from production and packaging to marketing and distribution. The evolving e commerce trends, digital marketing platforms and innovations in coffee brewing technology are likely to shape consumer preferences and expectations. Notably the case underlines the utilization of compostable packaging. By embracing technology in our production processes and keeping up with marketing trends we demonstrate our commitment to practices. - It's important to consider regulations concerning food safety, labeling requirements and environmental concerns as they can greatly affect the production, packaging and marketing strategies employed by Chagrin Coffee. Any changes in trade policies or import/export regulations could potentially impact our coffee bean sourcing procedures. Moreover packaging regulations hold significance when it comes to friendly options as they directly influence our choices as a company. Adhering to food safety guidelines and ensuring labeling is crucial for establishing trust among consumers.

- Societal trends play a role in influencing consumer choices. With an increasing emphasis on sustainability and ethical sourcing practices gaining traction consumers are making decisions based on these factors. Additionally social attitudes towards premium or luxury products along with flavor preferences or coffee varieties can significantly impact sales figures. Our focus, on providing premium quality gourmet coffee aligns with these trends where consumers value exceptional quality and unique experiences. In order to retain and attract customers it is crucial for businesses to adapt to values, such, as sustainability. - The coffee industry experiences innovation with new brewing methods, flavors and packaging solutions emerging. These advancements have the potential to greatly influence consumer preferences. If a business fails to keep up with these changes and continues offering the products without any improvements or additions, it may suffer a decline in market share. The case study highlights the importance of considering expanded product options, including flavored and decaffeinated alternatives. This strategy aligns with the need, for innovation in order to cater to evolving consumer preferences and remain competitive. - Intense competition from other premium coffee brands and potentially lower-priced alternatives can impact market share and pricing strategies. Market saturation may require differentiation strategies to stand out. The company positions itself against very high-end, expensive coffees and competes with other premium brands. Understanding and responding to the competitive landscape is vital for maintaining market share and pricing strategies. - Demographic shifts, such as changes in the age distribution or population density in key markets, can influence consumer preferences and purchasing power. Understanding the demographics of the target market is crucial for effective marketing. The company targets above-average income consumers in the 35 to 55 age group. Demographic shifts, especially in age distribution, might necessitate adjustments in marketing strategies to appeal to a broader audience. Additional Insights - The company's name, Chagrin Coffee, has a unique origin linked to the founders' history, starting as a café in Chagrin Falls. The brand image is associated with a quiet, scenic location. However, the case doesn't provide information on how this heritage is communicated in marketing. Leverage the brand's heritage in marketing materials to create a compelling narrative that connects with consumers emotionally. Highlighting the founders' story and the brand's evolution can enhance brand loyalty. - Chagrin Coffee primarily sells in higher-end food stores, with limited distribution in specific states. The distribution channels include single-store operations, small chains, and a unique presence in Wegman's Supermarkets. Explore opportunities for strategic partnerships with larger supermarket chains or specialty stores to expand the retail presence. Evaluate the potential for online sales to reach a wider audience beyond the current geographical distribution.

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Case Memo

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