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Question:
Topic: Paramount Café Project

Should successfully do the following:

  • Show your understanding of the service environment and the marketing situation (including strengths and weaknesses), marketing environment, target markets, segmentation and positioning of the cafébusiness
  • Identify sustainable marketing practices being used by the café or make recommendations if the cafés not using sustainable marketing
  • Identify and write a story board for an app that provides a solution to a weakness in the service product (your café)
Answer:
Introduction

A service is any act or performance that one party can offer to another which is essentially intangible as well as does not result in the ownership of anything. The production of such services may or may not to be tied to a physical product (Martin-Rios, Demen-Meier, Gössling & Cornuz, 2018). Moreover, the marketing of services plays a prominent role in the market. It can be defined as the marketing of processes or activity rather than the objects or any other tangible products (Marriott, Schilling & Gravani, 2018). As the services are intangible in nature, they faced a host of services marketing problems which are not adequately solved by the traditional products related marketing solution (Davis, Lockwood, Alcott & Pantelidis, 2018). Paramount Café Project is one of the leading cafés in Australia that provides a variety of services to their consumers.

In the following part, there will be a detailed discussion about the services provided by Paramount Café Project as well as analysis of environmental will be done to analyze the effectiveness of the café with their certain weaknesses.

Situation Analysis
Background of Cafe

Paramount Café Project was established with the partnership between Jin Ng if Paramount House, Russell Beard of Reuben Hills and Mark Dundon of Seven Seeds. The café has opened in the year of 2013 in Surry Hills, Sydney. They have introduced a variety of styles as well as approaches in quality coffee. The café is a collaborative project to look at coffee differently in the environment of café. The main aim of the café is to learn and explore the roasting style of coffee, brew methods, as well as coffee/café approach.  The PCP is a cafe that majorly focuses on unique, delicious food as well as exceptional consumer services. They emphases on the quality of the coffee as well as paying the tribute to all the hard work they take to get the coffee in the cup. They have created the base of loyal and faithful consumers by serving high quality of products at a competitive price. PCP proposed a variety of products such as coffee and espresso to their consumers that belong from superior grown imported coffee beans. They are serving all the needs of the consumers as well as each coffee are made uniquely and would able to see for smallest details (Paramount Cafe Project, 2018).

 
SWOT Analysis

Strength

  • Paramount Café Project caters their services through innovative manner. they have a unique style and approaches to target their consumers
  • The café serves a variety of products to their consumers in an effective manner. They have a variety of coffee in which they are specialized.
  • The quality of products, as well as services, is at a high level that made them competitive in the market.

Weakness

  • The café suffering from the issue of retaining the employees. The permanent employees are not been tackled by the café in an effective manner. They have a lack of permanent employees that force the café to hire more part-time employees in their café.
  • The prices of their product are high in comparison to their competitors that create a risk to the café at a greater level.

Opportunities

  • The tax rate of Australia is very low that gives an opportunity to the café to expand their business in other areas of Australia in a more effective manner.
  • The population of Australia is keen for the coffee. The percentage of consumption of coffee is high that give an opportunity t the café to increase their consumer level targeting for their products.

Threat

  • The high competition in the market is the biggest threat to PCP. The major competitors are Café in Time, Starbucks, and Café Sydney.
  • The pressure of innovation in the market made them tough to survive in such a competitive market (Phadermrod, Crowder & Wills, 2019).
Marketing Environment

Culture environment

The environment of culture mostly depends on the institution as well as forces that affected the basic value of the society, their behavior, and perceptions. The change in the Australian culture, as well as the emergence of varied sub-cultures, has a great impact on the cafes market in Australia. The population of Australia is more than ever concerned about their health. There is a wealth of research that is linked with caffeine to many infirmities that increase the demand for the healthy alternative that is decaffeinated products (Andrew & Ritchie, 2017). There is also a big threat of the consumers that they could switch from the coffee products all together with another beverage such as tea that is well known for their positive health benefits. Moreover, the market of all type of the coffee is aiding for the ear of coffee in Australia. The individuals in Australia are not only drinking more coffee but they are becoming more coffee connoisseurs (Shah & Barker, 2017). The coffee from them is no just longer a product but it is also a means of self-expression. The people are buying more exotic coffees in which they are more emphasis on the quality. It would have a positive marketing implication on the café as the concern towards the health force the café to introduced innovative healthy coffees and item that are free from caffeine (Michael, Wien & Reisinger, 2017).

Threat of Substitutes

In the competitive market, there is a huge threat of substitute that may impact on the ability of café performance.  The café is majorly known for their coffee and due to the concerning behavior of the people in Australia may force them to switch to the other substitute drinks. The substitute’s drinks include tea, soft drinks, beer, wine and so on that may affect the demand of the consumers towards coffee.  It creates an issue of choice among the individuals which could be a risk to the café. It would have a negative implication on the café.  PCP need to more focus on their quality of products that would force the people to retain as consumers of the cafe (Hilal & Mubarak, 2016).

 
Target Market, Strategy and Positioning
Target Market

The cafe has target demographic segment to attract their consumers. The economic condition of Australia is positive which enhance the purchasing power of their individuals (Nagle & Muller,2017). These are explained through their different variables that are explained in below table:

Age

Young generation between the age of 15-36

Gender

Both men and women

Income

Average income level between $20000 - $40000  

Religion

Cover all type of religion

Lifestyle

The people who are health conscious and love to try new products

 

PCP will target the consumers between the ages of 15-36 due to their more spending power than other age groups of the segment. The café target both genders rather than targeting specific majorly couple will be the target for them due to the reason they need space for quality time spending. The price of the products is normal, therefore, the income level with a range of $20000 to $ 40000 are major target segment for them due to the reason the population of such income level is high. The health conscious people are the main target for the café because they will cater quality and healthy food that help them in reaching to the maximum consumers (Hajra, 2017).

 
Target Market strategy

The café has used concentrated marketing strategy in which they directing their marketing efforts to a single segment of the market. Several segments have been identified but the café may not serve all of them. Some may be unattractive or out of line which business strength of café. They have concentrated on a particular segment of the market to target in a more effective manner. There is a certain reason for selecting such a strategy by the café. The main reason behind adopting such strategy is that

  • They think that targeting a particular segment of the market is more effective than targeting the whole market.
  • The café has opened at a small level and they have not spent their business in another market that limits them to concentrate on a particular segment rather than more segments of the market.
  • The café has limited resources in their account that force them to adopt such a strategy in the market (Morgan, Whitler, Feng & Chari, 2018).
Perceptual Map

The consumers are attracted towards low prices products that force the cafes to come with innovative products with low price. The consumers do compromise with the quality which increases competition among the cafes to cater high-quality products at a reasonable price. PCP is one of the leading cafés in Australia but they face huge completion from their competitive cafes. It will explain through the perceptual map (Iacobucci & Grisaffe, 2018).

Starbucks is one of the famous brands in café that are expanding all over the globe. Most of the consumers are attracted towards Starbucks due to the reason of their quality as well as innovative products. The consumers who prefer quality products majorly prefer Starbucks therefore; Starbucks is the major competitor of PCP.

Café Sydney caters low quality of products at a higher price that creates low completion for PCP. However, their attractive ambiance and services force the consumers to attract towards such café.

Singe O Surry Hills is one of the major competitors of PCP due to the reason they cater high quality of products at a lower price than PCP that force the PCP to lowering their price to compete such competitors.

Performance Matrix                                                            

Attributes to Improve

§ They need to be more innovative

§ Retaining Employees

§ Control over their Cost

Attributes to Maintain

§ Quality of Service and Product’

§ Variety in Products

§ Their Goodwill

 

Attributes to Maintain

§ Ambiance

§ Parking Area

Attributes to deemphasize

§ Utensils used in Café

§ Extra Service provided such as WIFI                                                                      

Attribute to improve

There is a high need to improve their innovative ideas due to the huge competition in the market and need to concentrate on retaining the employees that would able to give them proper training. The café also need to control over their cost to serve their products at a reasonable price.

Attribute to maintain

The café is serving quality products to their consumers with effective and quick services that made them café for competitive in the market. The café serves a variety of products at a normal price they need to maintain such quality that would help in building their image in the market.

Attribute to maintain

The café has not attractive ambiance which is not more important for them due to the reason consumers majorly prefer quality products. They only need to maintain such a thing and need to manage the parking area.

Attributes to deemphasize

The utensils used by the café in serving are very attractive as well as they provide service of WIFI which is not so important to attract the consumers. Therefore, they can control over such expenses and can invest such amount in an important area (Sundaram et al., 2015).

 
Sustainable Marketing

There are certain sustainable marketing that is adopted by Paramount Café Project that is explained in below points:

Buy locally in bulk

PCP majorly purchases their raw material from local suppliers and they created a platform for establishing the connections and relationship with local and international roasters, brewers and farmers. It gives income to such group of people that help in c=increasing the GDP rate of the country in an effective manner.

Cook what is in the season

They keep their café more sustainable by keeping their menu seasonal. The team of the café changes the menu four times a year that is one for each season and rotates in tow new dishes in every six weeks to accommodate the ingredients with the short growing season (Charter & Polonsky, 2017).

Avoid usages of Plastics bags for delivering

They avoid usages of plastics bags in delivering their products that help in protecting the environment in a more effective manner as well as they have started using plants as a theme that attract the consumers, as well as they, have taken smaller steps in preventing environments.

Utilize environmental friendly Material

While looking at the products of sustainable-marketed, consideration should be made by sourcing of materials, uses of ingredients as well as manufacturing of products. Therefore, PCP using natural as well as organic materials, utilizing environmentally friendly products, sourcing local and through fair trade, as well as using the lean serving of products with sustainable distribution methods which help in minimizing the carbon footprint of PCP.

Understanding the market

PCP is using sustainable way to market their products. It not only saves time as well as money by not approaching the segments that are not interested in what they sell but they also save resources and papers by not sending printed marketing materials to uncaring the prospects. They use online sources for marketing their cafe. It is one of the effective ways through which they have adopted sustainable footprint to protect their environment as well as promote their society by protecting them from polluted materials (Gupta & Singh, 2017).

Conclusion

From the above analysis, it can be concluded that marketing strategies play a prominent role in the growth of the business. One of the cafes Paramount Cafe Project in Sydney has introduced a variety of flavors and adopted approaches in coffee to cater their products in an innovative manner to their consumers. The cafe caters delicious foods with quality that forces the consumers to get loyal towards the cafe. In the recent, the people of Australia are keen for their health as well as attracted towards caffeine-free coffee that would be an opportunity for the cafe to introduced innovative products according to the requirement of the consumers. There is also the threat of substitute for a cafe that would force them to cater quality product at a reasonable price. There is huge competition in the market; the major competitors are Starbucks whose price is high by serving at best quality to the consumers and Singe O Surry Hills who offer a quality product at a reasonable price than PCP. Therefore, in such huge competitive market, they should adopt the effective marketing strategy to attract their consumers and need to improve their services as well as need to control over their cost to compete their competitors in an effective manner. Undoubtedly, they have adopted sustainable marketing strategies that help the cafe to grow in such a competitive market. They should maintain such strategies to grow further.

Section 1
1

The overall goal of my app will be to promote the cafe in a more effective manner and provide a variety of products through online service that would help the cafe to target their consumers through the process of online. Expansion of the market for targeting consumers is the main purpose of App.

2

The main goal is targeting multiple of consumers at a particular time. After which, the second goal is to increase the demand for their products in an innovative manner. Thirdly, sustain their employees for a longer period of time. Fourthly, updating the information about food and services through the app to the consumers.

3

The main users of the APP will be consumers and employees such as waiters, chef and other employees who are working in the Cafe

4

Singe O Surry Hills are using the traditional method of targeting their consumers. They have not offered any products through any kind of app. Starbucks are using both manners to targeting their consumers that affect their quality of service in an effective manner.

5

The main issue that has been addressed in their cafe is their limited market scope. The cafe is targeting their consumers in a limited area that limit their sales. The other issue that has been addressed is that they are still adopting the old method in serving their products that need to be innovative in nature. The innovation should not only do in products but it should be done in service that needs to be changed. Therefore, App will address the issue in various manners. They can able to find the lag of Cafe services and able to provide a variety of solution.

6

The app will provide a new market to the PCP that can help in targeting maximum consumers in a limited period of time. Secondly, they will able to find out the feeling for the cafe by proving the service of feedback for the consumers. Third, they can able to provide the feature to the consumers in which the consumers would able o detect their preparation of food that would increase excitement among them. Fourth, proper training secession can be done through an app that would help in increasing the efficiency of employees in a more effective manner.

 
References

Andrew, A., & Ritchie, L. (2017). Culture change in aged-care facilities: A café's contribution to transforming the physical and social environment. Journal of Housing for the Elderly, 31(1), 34-46.

Charter, M., & Polonsky, M. J. (2017). Rethinking Marketing: Shifting to a Greener Paradigm. In Greener Marketing. London: Routledge.

Davis, B., Lockwood, A., Alcott, P., & Pantelidis, I. S. (2018). Food and beverage management. London: Routledge.

Gupta, H., & Singh, S. (2017). Sustainable practices through green guerrilla marketing–an innovative approach. Journal on Innovation and Sustainability. RISUS ISSN 2179-3565, 8(2), 61-78.

Hajra, N. G. (2017). Organic Tea: Global Market and Forecast Sales. Journal of Tea Science Research, 7.

Hilal, M. I. M., & Mubarak, K. M. (2016). International Tea Marketing and Need for Reviving Sri Lankan Tea Industry. Journal of Management, 9(1).

Iacobucci, D., & Grisaffe, D. (2018). Perceptual maps via enhanced correspondence analysis: representing confidence regions to clarify brand positions. Journal of Marketing Analytics, 6(3), 72-83.

Marriott, N. G., Schilling, M. W., & Gravani, R. B. (2018). Principles of food sanitation. New York: Springer.

Martin-Rios, C., Demen-Meier, C., Gössling, S., & Cornuz, C. (2018). Food waste management innovations in the foodservice industry. Waste management, 79, 196-206.

Michael, N., Wien, C., & Reisinger, Y. (2017). Push and pull escape travel motivations of Emirati nationals to Australia. International Journal of Culture, Tourism and Hospitality Research, 11(3), 274-296.

Morgan, N. A., Whitler, K. A., Feng, H., & Chari, S. (2018). Research in marketing strategy. Journal of the Academy of Marketing Science, 1-26.

Nagle, T. T., & Müller, G. (2017). The stand tactics of pricing: A guide to growing more profitably. London: Routledge.

Paramount Cafe Project. (2018). About us. Retrieved from: https://www.pcpfx.com/

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Shah, D., & Barker, M. (2017). Cracking the cultural code: Indian IT expatriates’ intercultural communication challenges in Australia. International Journal of Cross Cultural Management, 17(2), 215-236.

Sundaram, N., Satish, N., Patwary, M. M. A., Dulloor, S. R., Anderson, M. J., Vadlamudi, S. G., ... & Dubey, P. (2015). Graphmat: High performance graph analytics made productive. Proceedings of the VLDB Endowment, 8(11), 1214-1225.

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