Discuss about the Altitude Coffee and Roastery Café.
The Altitude Roastery and Café (ARC) is a business enterprise whose primary commodity is coffee its customers in Australia, particularly in Armidale. The business environment can be described as all the external and internal factors that influence the business. The macro environment refers to all the external factors of an organization that impact the decision-making process and at the same time influences the performance and strategies of the business (Hipp and Roussell, 2013, p565). ARC’s macro environment has several factors but for discussion purposes, this section will only discuss two of them. Sociocultural values are one of the key elements in the environment considering that customers prefer better service because of their norms, values, and levels of education. Because of its ability to ensure excellent customer service, ARC procures the best of coffee beans from various parts of the region to ensure that only the best and freshest coffee is served implying that it is conformed to the society’s norms and values.
The second key component of the macro environment is technology which influences every aspect of human life. A coffee business ought to keep up with the technological trend if it wishes to stay atop competition. Despite the fact that some of the products are made by hand, technological input is necessary to ensure perfection. The microenvironment on the hand refers to factors within the organization that influence the performance and strategies of the business and are within its control (Pride and Ferrell, 2010, p64). Competition is the first factor and the business faces steep competition from other cafés in the town selling coffee beverages. The fact that the other businesses sell products of similar kind as ARC makes them a potent threat that could take over the market shares if appropriate strategies are not put in play. Customers are the other factors that are in the microenvironment where the business focuses on customer satisfaction and loyalty. ARC focused its strategies on providing the best customer service so as to achieve and control the customer factor.
Market segmentation refers to the strategy whereby the business divides its target market into several subgroups guided by the population characteristics (Baudry and Maslianskaia, 2016, p530). Based on the case study, ARC’s target market has been segmented using the psychographic aspect. Psychographic segmentation refers to the division of the target market based on their attitudes, interests, hobbies and opinions towards the product. The business has tried to cater for its market segments. For example, ARC has instituted a roaster within the café so as to provide the best coffee for their clients. Those individuals seeking to relax, have breakfast while going to work or even pass time have been covered by the ARC considering that it offers all the above requirements of the segment. Customers with knowledge in the industry are provided with reliable pieces of information that has revolves around the production of the best coffee. The various segments of the target market as described have all been accommodated by the business (Baudry and Maslianskaia, 2016, p530).
The position of a business in the market refers to the ranking of its brands, products or company based on its volume of sales relative to the competitors’ sales volume (Carneiro, Eusebio and Santos, 2016, p193). In order to determine the position of a business in its market, it is essential for it to identify the uniqueness of the business in terms of attraction and distinction. Following the case study of ARC, the business has invested in providing the best coffee to its customers coupled with providing accurate information to the public. In this sense, the business has unique customer service in the locality raising it to the top of its competitors. Because of this, the business attracts more customers than its competition and at the same time provide services that customers can only find at ARC.
This concept in business refers to several factors that a company controls to captivate customers and influence them to purchase even more of its products. It is one of the preferred tools for the marketers which is very crucial in the establishment of the business brand. There are seven factors associated with the marketing mix, even though they were initially four, and they are product, price, promotion, place, process, people and the physical environment (7 Ps) (“The 4Ps of Marketing”, 205, p14). Among the 7Ps, the aspect of distribution or place has been successfully implemented by ARC. The business is located at a convenient place where clients can be easily reached. The business also markets its products and services to the public through various programs such as providing training to its clients especially in preparing roasted coffee.
The product is the second component of the marketing mix that the ARC has successfully implemented. The business has extended its products line so as to expand its brand. ARC not only sells the best and unique roasted coffee in Armidale, but has extended its product line to include food items bacon, egg muffins, gourmet sandwiches and soups. The business also sells the coffee beans and all the necessary tools required to make a good coffee like the espresso machines and materials that can be used to clean it. In other words, the business has ensured that the product lines are diverse aiming to meet several of the unique needs of its customers (“The perfect marketing mix”, 2011, p18). To ensure that the clients are aware of this, accurate information about the services that are offered by the company is the strategy that the business put in place. In a nutshell, the ARC business employs a successful business strategy.
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