Expresso Espresso is a coffee shop located in a street along the University of South Alabama. Todd, the owner of the business, opened the shop in March 2006, and was motivated by the idea of providing comfort to his consumers, and the thought of helping his children acquire some life lessons on how to run a business. His plan was to offer a service that will make his customers feel at home, making them want to stay longer.
Even though Todd managed to attract quite a number of customers through his concept, the competition from new shops was posing a threat to the growth of his business.
Apart from the stiff competition from new shops, expanding the business in the city’s midtown was a worrying issue that Todd was facing as he was afraid that the new location will negatively impact the sales, and may change the dynamic nature of the coffee industry in the area. Therefore, his main priority was to market his business so as to ensure that it gains a firm standing in the market place.
The location of the coffee shop was evidently an added advantage to the business as most of the customers were students and lecturers. Also, the service offered in the shop was hospitable and as a result, it increased his competitiveness. Designing the shop with a range of comforting colors and comfy furniture also worked in his favor as it helped him gain a competitive niche over other coffee shops.
However, the financial status of the business was disappointing. In other words, the profit he made was not huge enough to sustain the survival of the business, given the competition in the market. Given that Todd had tried implementing some marketing strategies that didn’t work so well, it was time to think outside the box.
It is for this reason that Todd had to come up with an effective marketing plan in order to expand, and enhance the growth of his business.
Focusing on university students, their lecturers, and the faculty was an alternative he needed to focus on, as they were his target market. By this, he would provide products that not only represented his trademark, but also met the needs of consumers.
Even though the economy affected the prices set in the market, lowering the prices of his products, and offering promotional offers was a strategy that would alternatively work in his favor.
By lowering the prices and putting up offers, the shop would get more customers as it would increase awareness among college students, lecturers, the faculty, and the community around. Moreover, improving the quality of the service and products was a strategy that would increase his customer base.
Changing the brand name of the shop, and re-launching it during an ongoing semester would also help in creating awareness, and would limit the shop from providing espresso only. Instead, it would allow the incorporation of other products that are preferred by most customers.
Conducting a survey, and asking their customer to participate in rating the quality of services offered, and offering recommendation would make them feel more appreciated, and consequently, increase the customer base.
Apart from expanding the business in the city’s midtown, the current location would need some expanding so as to accommodate as many customers as possible. By opening a new shop in the city’s midtown, Todd would have to implement an effective action plan that focuses on the specific tasks to be performed, the time horizon, and resource allocation.