Coffee Cup Case Study Solution
Main Projects to Run in the Demand Side:
The main project that the company could run in order to increase its demand side could be offering its coffee at lower prices, without compromising the quality. The high quality would enable the company to attract more consumers, which ultimately increases the demand for the company’s coffee. The company could also emphasize on developing different (unique) tastes of coffee in order to attract more consumers. In order to increase its consumer base, the company should reduce the serving time of coffee and deliver the order to its consumers at as minimum time as possible. However, the competitors of the company would offer its coffee at cheap prices because of its cheap quality. By improving the quality of its coffee the company would enable to improve of the demand side. In order to increase its demand, the company could also customize its coffee in terms of flavors. The company could also advertise its product with attractive features to increase its demand, and also use different marketing tactics in order to attract new customers and improve its consumer base. With an increase in demand, the company would enable it self to improve its profitability and retain its competitive position in the beverage market.
Supply Chain Function:
Vision:
The vision of the supply chain function is to reduce the level of complexity in the organization’s supply chain with an improved technology, such as lean supply chain to improve the company’s profitability, and get a sustainable competitive advantage.
Mission:
The mission of supply chain function is to increase the demand by providing higher and flexible services,which can be achieved through the usage of improved technology, collaboration and integration of the major supply chain areas by using the lean supply chain opportunity to reduce the overall supply chain management cost, which will be very helpful for the company while reducing its prices in order to challenge its competitors.
For this purpose, the company needs to know well about its customers. The coffee cup customer’s range includes the business to business market (B to B) and business to direct consumer (B to C) market. Along with it, the coffee cup should have better knowledge about its competitors that what they are doing in order to develop their competitive strategies carefully in order to retain its dominant position in the coffee market.
New Functions:
Change in Environment:
The coffee cup should change its boutiques’environment to provide coffee to its direct consumer market, because coffee is a refreshing beverage that boosts the stamina of a person who consumes it. The boutiques that provide a relaxing environment to spend quality time with friends, colleagues and others acquaintances,could be the best available options for the consumer. If the consumers’ visits increase, the sales and loyalty factor will also increase which would help the company to get a competitive advantage over its competitors.
A change in boutiques’ environment might lead to numerous other benefits for the company, which include:
- Creativity: A change in daily routine might stimulate the creativity and inspiration to work effectively.
- Fewer distractions.
- Provides a platform to meet new people.
- Attraction encourages the consumers to buy something from boutiques.
Discounts / Loyalty Cards:
The Coffee Shop should provide discounts to its regular customers, (B to B and B to C) which would encourage the consumers to buy more. Give discounts on its bulk purchases of coffee capsules and coffee machines. More of it, the coffee cup should introduce the loyalty card program, in which each purchase would be connected to some points’ rewards, and after reaching these points at a certain level, the customer should be rewarded with some sort of benefits, such as discounts or gifts in order to encourage more purchases………..
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