Collaboratively develop a sustainable offering and corresponding situation analysis.
Apply each of the five pre-implementation CPS steps to identify a sustainability-oriented consumer or marketing problem and start working toward a potential new or improved sustainable offering to address the problem.
As per Titus (2000), the five pre-implementation CPS steps for concept development are:
- Problem identification:
- Problem delineation:
- Information gathering:
- Idea generation:
- Idea evaluation and refinement:
- Nature– what combination of product, service and/or experience
- Type – industrial or consumer good
- Value provided (utility created) to customer/end-user to address their unmet needs; discern between core, actual and augmented levels of offering (if applicable)
- Sustainability benefits – economic, social, environmental
- Existing brand perceptions (if applicable)
- Information needs to be filled and an outline of the marketing research (secondary, primary) required to do so
This section of the report elaborates on those parts of Section 1 that relate to the final chosen market offering positioned on sustainability. It comprises three parts and draws on various Study Guide topics:
An assessment of current external macro- and micro environmental factors pertinent to the future of the sustainable offering:
- Main issues and trends within political/legal, economic, socio-cultural, technological and ecological (PESTE) macro environment
- Competition: main direct and indirect competitors (e.g. in terms of their size, goals, market share, product quality, marketing strategies and other characteristics that are needed to understand their intentions and behaviour). Focus on their key competitive advantages and weaknesses. How are they positioned?
- Suppliers and intermediaries: main issues and trends
- SWOT analysis:
Describe the sustainable offering’s internal strengths (things it does well) and weaknesses (things it does not do well).
Describe the opportunities and threats in the external environment that would influence the prospects of the offering.
Assess how strengths might be matched to opportunities to produce leverage.
Assess the problems that result when environmental threats attack weaknesses in the offering.
Anticipate how internal weaknesses or limitations may prevent the offering from taking advantage of opportunities.
Anticipate how strengths might be used to used reduce the vulnerability to threats.
Information needs to be filled and an outline of the marketing research (secondary, primary) required to do so (draw on Topic 4).
- Consumer or business market
- Market type: potential (interested customers), available (interested with income and access to offering), qualified (available and suitable on other criteria, such as age) and target (qualified and to be served) and penetrated (current buyers)
- Customer need
- Market growth, market share (if applicable)
- Influences on consumers (e.g. cultural, social, personal) or business customers (e.g. size, industry, growth, resources, supplier relationships)
- Information needs to be filled and an outline of the marketing research (secondary, primary) required to do so.
This study deals with coming up with a plan to bring a new eco-friendly product that will help in reducing waste and pollution. Coffea Robusta Australia is one of the Coffee shops that will be opened in Australia where this reusable coffee cup will be used for serving the customers (Singh et al. 2014). The reusable coffee cup name had been kept as Coffea Eco-reusable coffee cup. This reusable coffee cup help in saving the environment as well as saving own money with a functional and reliable mug. In this coffee shop, individuals can even purchase Coffea Eco-reusable coffee cup for individual consumption. This company will be supplying reusable coffee cups to nearby offices and department stores and generating revenue from there as well. The current segment explains steps in Creative Problem Solving that need to be taken into consideration by the Coffee shop named as Coffea Robusta Australia. The next segment illustrates profile for sustainable offering, SWOT analysis, PESTLE analysis and then customer and market analysis for Coffea Eco-reusable coffee cup (Potting and van der Harst 2015).
Single-use coffee cups mainly accounts for a large amount of unnecessary waste. In order to solve the problem, reusable coffee cups should be used by individuals as these are environmentally friendly coffee cup and helps in reducing the waste as far as possible. In accordance to latest statistics, it is stated that Australians throw away around 2.5 million disposable cups every year. To that, a lot of cups are used in the high street coffee chains that are not actually recyclable. The problem is the polyethylene that makes them waterproof that can only be recycled at a very tiny number of specialized plants. It is therefore required to reuse the cup as it directly help in cutting down on harmful landfill waste. There is practically no need to deal with those flimsy plastic lids that unleashes scalding hot coffee onto the hand at given moment (Potting and van der Harst 2014).
The second step in the Creative Problem Solving is Problem Delineation where the key problem is dissected as well as looked at in more depth. Further analysis need to be made in this step that discuss the importance of using reusable coffee cups instead of single-use coffee cups. On analysis, it is found that every year around 2.5 billion disposable cups are thrown away (Lin, Lai and Chen 2015).
The third step in the Creative Problem Solving is Information Gathering where it is required to gather information relating to the new eco-friendly product suggested. It is essential to understand why it is important to use reusable coffee cups than single-use coffee cups. On analysis, it is found that reusable cups are recyclable as they are made out of paper. In addition, the recyclable bit is trapped under the film of plastic that stops the paper on getting soggy. It becomes difficult for removing and so it goes straight to landfill (Kumar et al. 2017).
Single-use coffee cups are not recyclable due to plastic liner as well as coffee contamination. In addition, garbage haulers do not accept plastic lids in curbside recycling bins. Furthermore, cardboard sleeves can be recycled and reused but often are not. The vast majority of Single-use coffee cups sold at coffee shops eventually arrives at the landfill. The coffee shops in Australia had estimated the cost of disposable packaging (lid, coffee cup and insulating sleeve) at 15% by the year 2016. Half of the world’s plastic goes into products that are used only once.
- If an individual purchase a Single-use coffee cups every day, this creates 23 pounds of waste per year.
- Each paper cup manufactured is responsible for 0.24 pounds of CO2 emissions
- It is estimated that 50 million disposable coffee cups are used in metro each year. In addition, this equates for 3 million pounds of solid waste that generates 6000 metric tons of CO2 emissions. Therefore, it is equivalent to almost 600000 gallons of gas consumed or 6 million pounds of coal burned for 1 year.
The fourth step in Creative Problem Solving is Idea Generation where it was required to generate an idea where individual problems will be solved when they start using reusable coffee cups for consumption purpose (Jang, Kim and Lee 2015).
Coffea Robusta Australia is a newly opened coffee shop that will be offering Coffea Eco-reusable coffee cup to the customers who visit at their coffee shop. From the above segment, it is understood that single-use coffee cups poses lot of problems that need proper attention by the management. The coffee shop voluntarily engages in promoting this Coffea Eco-reusable coffee cup in order to educate consumers about the lack of recycling options as well as magnitude of the problem. The management of the coffee shop should engage in promoting the campaign to friends and family through social media or through word of mouth communication.
At Coffea Robusta Australia, they also engage in encouraging their customers to avoid single-use coffee cups because of several issues already identified in the previous section. The coffee shop tell their customers to bring own cup or use Coffea Eco-reusable coffee cup that are available in the store when individual visit coffee shop.
The fifth step in Creative Problem Solving is Idea Evaluation where the idea of reusable coffee cups is evaluated so that it can be made available in the market. There are various benefits of having own reusable coffee rather than using countless disposable once for the caffeine fixes. It is evaluated by the company that keeping and reusing one mug is far better for the environment than chucking away ones individuals get from the coffee shop.
Introducing Coffea Eco-reusable coffee cup will be practical and useful at all levels, be it society, individual and national. Coffea Robusta Australia practically thought of quite a few things to improve the impact of the environment as a whole. The coffee shop will be offering in-store cups for use sell reusable cups as well as even offer 10% discount when individual will bring their own cup.
Coffea Eco-reusable coffee cup will be offered by the company Coffea Robusta Australia. These reusable coffee mugs can be used at the time of travelling by individuals. It can be even used by individuals at home or office where they can easily use this Eco-reusable coffee cup for their own consumption. Some are mostly designed to use in place of the cup that individuals will get in the coffee shop and some will even insulate coffee that will keep the coffee hotter for longer duration of time.
Figure: Coffea Eco-reusable coffee cup
(Source: Haskova 2015)
Coffea Eco-reusable coffee cup is one of the coffee cup offered by the coffee shop that is based in Australia. This reusable coffee cup aims to lead the market to ditch disposable cups where individuals can prefer using the cups during morning, evening or entire part of the day. Coffea Eco-reusable coffee cups come in five sizes as well as range of color combos and different designs. Furthermore, there is a secure clasp that stops any of the spillages and there are glass and cork options but the original model of the brand is made from BPA-free plastic that is recyclable at the end of its life (Green and Peloza 2014).
Coffea Eco-reusable coffee cup reduces the impact of disposable cups that had on environment.
Waste, natural resources as well as damage done by greenhouse gases are all decreased by using reusable cups after only 24 uses (Ertz et al. 2017)
Coffea Eco-reusable coffee cup help in cutting supply costs for Coffea Robusta Australia
Discount will be offered by Coffea Robusta Australia to the consumers as they will save money
Durable product with a lifespan of more than 3 years
Eco-friendly credentials such as energy saving, waste cutting and water saving
Diverse range of products in terms of color, composition options and size
Less impact on deforestation
Customizing purchase option
Easy to compare with other reusable cups in the market
There will be need creation among the individuals where they have reusable coffee cups in their hand and they will continuously consume coffee that has lot of caffeine and not good for health.
Quality of the mugs will deteriote by continuous use by an individual (Deshpandé et al. 2016)
Sizes of cups provides some inaccessible machines
Less flexible as compared to other products that create or port and give rise to storage issues
Cleaning issues as plastic requires more careful cleaning
Plastics smell more at the time of initial engagement with cup
Does not fit with all drink holders when in transit
Educating the public on the need for using more sustainable products. Coffea Eco-reusable coffee cup has the capacity to protect the environment as a whole
Appealing to consumer on a financial level where initial outlay is for long-term savings
Increasing sales as well as awareness through advertising on social networking websites
Expansion of products within the current portfolio
Building self-esteem as well as positive self-image through use of Coffea Eco-reusable coffee cup and its eco-friendly credentials
Affiliating to environmental organization
New greener promotional message
Intense competition from similar products in the market
Fluctuations in price such as coffee bean
Customers get confused over differentiation between the choices of product
Increase in supplier price
Frequent Changed customer preferences
Political factors- The issue of recycling is one of the prominent political agenda for all the parties. One of the probable solutions to this issue is effective waste management that will answer all the practicalities in the massive as well as growing industry. () states that new cup recycling scheme should be launched jointly by Closed Loop Environmental Solutions as well as Simply Waste Solutions. In addition, it will help in providing a solution to the 2.5 billion paper cups that is sent to landfill or incinerations each year. In Australia, there is a slow shift towards enforcing waste management solutions. Furthermore, there is definite shift towards environmental popularity in Australia that expects to win 10% of regional vote (Canavarro, Alves and Rangel 2017). A political party needs to find an alternative cost-effective solution to these issues and find favor with environmentally concerned electronate. Coffea Eco-reusable coffee cup that would not require to be incinerated or sent to landfill that provides appealing solution to the costly process.
Economic factors- The Australian economy is slowly recovering from recession. Coffea Eco-reusable coffee cup is environmentally attractive to business and consumers as solutions actually reduces raw material, packaging, production and energy costs that favor in the industry. It is noted that societal and environmental impacts are concerned with regulators, stakeholders and customers. Therefore, the packaging industry is under scrutiny as well as pressure to find waste solutions that are more cost-effective and environment-friendly (Benton 2015).
Social factors- Projecting a positive self-image is important in the society in recent world. Due to social media influence, individuals have become open to scrutiny as well as criticism by others on a scale. In order to remain socially and environmentally responsible in intrinsic for creation of positive self-image
Technological factors- The use of social media platforms will allow marketing of Coffea Eco-reusable coffee cup to be extensive, cost effective as well as timely manner. It is noted that social media is one of the excellent tool in the promotional mix that allows business for talking to their customers. It mainly allows both customers as well as business for educating each other on matters relating to new products. Furthermore, students and business people usually use social media for connecting with others (Canavarro, Alves and Rangel 2017).
Legal factors- There are too much regulation and legal attributes that is posed while manufacturing reusable coffee cups in Australia. The company needs to prove that the coffee cups help in reducing waste and pollution (Potting and van der Harst 2015).
Environmental factors- It is important to understand the fact that protection of the environment is a huge issue that concerns all the industries within the Australia. This country works together if concerns are properly addressed effectively. In addition, individual business needs to be accountable for the impact that is made by their waste systems. It is noted that food industry generates the most amount of materials that is needed for recycling because of packaging demands. Furthermore, it is important to find solutions to reduce enormous waste that is not straight forward as well as poses difficult challenge at the same time. Coffea Eco-reusable coffee cup would be a solution to part of this recycling problems as well as promoting such initiatives that help to solve other problems (Canavarro, Alves and Rangel 2017). To explain in detail, Landfill is still a better option or preferred method of disposal in the manufacturing industry within Australia. It is noted that although the least sophisticated method of disposal landfill still considered as the main method of waste disposal that accounts for 85% of municipal waste. There is pressure from the Landfill Directive that increases household participation especially in the practice that is more sustainable waste management. By purchasing Coffea Eco-reusable coffee cup, the consumer will contribute towards reducing paper waste as well as helping the government to achieve Landfill Directive for the country.
Coffea Eco-reusable coffee cup will be offered in Australia to the targeted consumers. This coffee shop will be targeting consumers who are interested to contribute towards betterment of the society and want to be hassle free from single-use coffee cups (Potting and van der Harst 2015). The coffee shop will be serving to the crowd that will have greatest effect on the environment as a whole. This coffee shop will be offering 10% discount to the customers who bring their own coffee cups and this can be tracked with a special discount key on cash registers. Coffea Eco-reusable coffee cup promotes a throwaway culture of one-time or single use cups that pose threat to the environment as a whole. Coffea Eco-reusable coffee cup promotes larger movement of reuse as well as sustainability. More than 3.5 billion disposable cups diverted from landfill by Coffea Eco-reusable coffee cup users. There is the same amount of plastic in 20 single-use coffee cups as 1 small Coffea Eco-reusable coffee cup.
At the end of the study, it is concluded that Coffea Eco-reusable coffee cup are made up of 100% food safe silicone. The coffee shop aims at making Coffea Eco-reusable coffee cup like international standards that fit snuggly in the machine comfortably. Australians throws away more than 35 billion plastic bottles every year. In addition, it explains that not only does plastic ends up landfills but even it causes damage as it contains BPA. Furthermore, BPA is one of the potentially harmful chemicals that are found in plastic products that can leak into water as well as other beverages. There are various products that help in eliminating plastic bottle pollution as well as keeping family safe from harmful chemicals.
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Canavarro, V., Alves, J.L. and Rangel, B., 2017. Coffee Powder Reused as a Composite Material. In Materials Design and Applications (pp. 113-123). Springer International Publishing.
Deshpandé, R., Grinstein, A., Ofek, E. and Kim, S.H., 2016. Innovation Equity: Assessing and Managing the Monetary Value of New Products and Services. International Journal of Research in Marketing, 33, pp.818-839.
Ertz, M., Huang, R., Jo, M.S., Karakas, F. and Sarigöllü, E., 2017. From single-use to multi-use: Study of consumers' behavior toward consumption of reusable containers. Journal of Environmental Management, 193, pp.334-344.
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Lin, J.S.S., Lai, H.H.S. and Chen, H.Y., 2015. The Study of the Relationship between Store Green Practices and Consumer’s Perception of Sustainability Brand Image toward Coffee Store. American Journal of Tourism Management, 4(2), pp.35-39.
Potting, J. and van der Harst, E., 2014, October. Facility arrangements, food safety, and the environmental performance of disposable and reusable cups. In Proceedings of the 9th International Conference LCA of Food (pp. 8-10).
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