Decision required The CoffeeVille marketing plan needs to be re considerate for

Decision required the coffeeville marketing plan

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Decision required The CoffeeVille marketing plan needs to be re-considerate for the business as the target market should be re- establish, it recommended due to the current trends around the place and the purpose is also take into account better actions to prevent losses for the company. History During the last 12 months the business has been showing a drop in the sales income of external catering, specifically in November and December. The prices of the materials and products are rising like rent, food and wages. This has caused a fall in the revenues. Part 2 – Analysis Analysis Result Implications Competition analysis to assess the level of the shops of the industry in Melbourne CBD Constant growing of cafes shops in the CBD zone Close competition between companies and a high risk to fail because customers have more choices Effect between business data and the increment of tenants in residential properties Possible new customers which means a good opportunity for the business Target market needs to be reconsidered, this may help to solve the economic difficulties of the business Determine the connexion between the vacancies of the properties and external catering Clear association between the raising in rent rates and the weakening in catering sales Potential reduction in sales due to reduction of local business. Part 3 – Decision options To maintain the business indicators, CoffeVille have to take steps and make modifications to address issues that may have pros and cons as high risks. These actions may require
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BSBINM601 – Manage Knowledge and Information investment but overall it has to be a smart play. There are 3 options that the company can apply to fight the problems, these are: do nothing, reduce prices for food and offer special home packaged and meal delivery systems. Option 1: Do nothing Economic indicators analysis predicts a more positive financial environment and real state evaluation forecast CBD vacancy rates to drop to 9%in the next year. Positive outcomes / benefits To keep reputation as provider of quality food and beverages. To ultimately go back to good levels of profitability Negative outcomes / Risks The current trend will continue, resulting in financial difficulties. Potential closure of non-profitable stores. Expenses keep increasing and sales dropping Options 2: Reduce prices for food The price for catering food menu items will be reduced but beverage prices remain the same. Positive outcomes/ benefits To price compete closest with other business To launch the number of items sold per day More visitors Reduce expenses Negative outcomes/ Risks The prestige of the business could be affected It needs more number of sales with the new prices to achieve daily incomes Option 3: Special home packaged and meal delivery systems Menu Items for prepacked take-home meals will be offered and the operational hours of some or all shops will be expanded to provide them.
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