Business Studies – 3.3.6 Marketing strategy | e-Consult

For The Daily Grind, a product-focused marketing mix is most appropriate. This is because they are offering a relatively standard product (coffee, tea, pastries) but can differentiate themselves through quality, atmosphere, and customer service. Here's a breakdown:

• Product: Offer high-quality, ethically sourced coffee beans. Include a range of specialty drinks (e.g., cold brew, seasonal lattes). Provide a selection of fresh pastries and light lunch options. Consider offering loyalty cards or a rewards program. Justification: Attracts customers seeking quality and convenience. Specialty drinks cater to a younger demographic.
• Price: Implement a premium pricing strategy, slightly higher than chain coffee shops but justifiable due to the quality of ingredients and atmosphere. Offer student discounts and deals (e.g., 'buy one get one free' on pastries with a coffee). Justification: Reflects the higher quality and attracts price-sensitive students. Deals encourage repeat business.
• Place: The location is already advantageous (city centre, near university). However, ensure the shop is visually appealing and easily accessible. Consider online ordering and delivery options through a platform like Deliveroo or Uber Eats. Justification: Leverages existing location. Online ordering expands reach and caters to busy students and professionals.
• Promotion: Utilize social media marketing (Instagram, Facebook) to showcase the coffee shop's atmosphere, specialty drinks, and student deals. Partner with the university's student union for promotional events and discounts. Consider local advertising (e.g., posters in the university, flyers in nearby offices). Justification: Reaches the target demographic where they spend time. Social media is cost-effective and allows for targeted advertising. Partnerships build brand awareness and credibility.

This mix focuses on creating a positive brand image and delivering a superior product experience, which is crucial for attracting and retaining customers in a competitive market.