MKT101A Marketing Management Fundamentals of a Business Industry

MKT101A Marketing Management Fundamentals of a Business Industry

Business Background:

Green cup is a local restaurant which sells smoothies, raw snacks, toast, acai bowls and retail such as reusable cups, water bottles, books, and reusable and sustainable material products.

The restaurant is located throughout South-East suburb of Melbourne; South Yarra; Toorak, Armadale and Hawthorn known as one of the richest suburbs in Melbourne (Frost, 2021).

In the wake of its store locations, they price their food menu and retails slightly higher. For instance an original green smoothie costs $12. They have monthly special menus which attracts regular customers aiming them to return. Also, they are cooperative with influencers or Instagram models, and several local fitness clubs to invite their customers targeting women in their 20s to 30s who are fascinated by fitness culture or just love the tastes. In spite of its small store, lots of customers waiting out can be seen especially during brunch time on weekends.

Competitors analysis:

“Acai Brothers are Australia’s leading Superfood Bar franchise and have become internationally recognized” (Acai Brothers, 2021).

They sell acai bowls and smoothies plus coffees, have same customer segments in same area as Green Cup. The difference is that fruits, ingredients and size can be customized. They also have a variety of vegan savoury menus but customers most likely order coffees, smoothies or acai bowls.

Prices are slightly cheaper than Green Cup. A small smoothie costs from $8.9.

They expand their business beyond states; Melbourne, Canberra, New South Wales and Queensland and Western Australia. There are 14 stores throughout Australia.

The restaurant has their own range of retails such as coffee beans, protein powder and granola.

They also sell acai bowls and fresh juices or smoothies just 550 meters away from Green cup. Unlike Green cup, they are particular about the process of drinks such as cold pressed shots and juices. They don’t have retails as well as Green Cup and Acai Brothers.

The restaurant is located at Chapel St South Yarra and CBD in Melbourne which seems to be a relatively smaller business.

Prices are standard. A smoothie costs from $10.9 and extra $2 for cold pressed option.

Every Tuesdays they do a half price promotion for all drinks and acai bowls. Businesses tend not to be busy on Tuesdays, thus their half price strategy attracts customers efficiently.

Indirect competitor: Gelato Messina

Gelato Messina is popular ice cream shop throughout Australia.

Lots of customers are seen at any time especially during summer time at Windsor store on Chapel St. Targeting customers are wide; young to old, female to male. Its gelato has a range of regular flavours yet their special flavours which change each period of time attract customers too.

Although Messina and Green cup sell different products, customer’s needs, which is about cold beverages and cuisines, are same.

SWOT analysis:

Strengths:

  1. Taste

It is one of the biggest reason why Green Cup attract customers well. Comparing with other restaurants’s smoothies and acai bowls, theirs are more tasteful.

  1. Updating menu

Although they sell products in a limited range, Green Cup introduce special menu every month. That makes regular customers return to the business or attract new customers.

  1. Advertisement

Green Cup continuously posts their products and customer’s visited on Instagram which attract regular and potential customers in terms of use of influencers or products introductions.

Weaknesses:

  1. Long wait times and poor turnover rate

Customers complaining about their order delay are often seen at the restaurant.

  1. High prices

Comparing with other competitors above, the price of smoothie is the highest and retails such as granola and protein powders are priced much higher than averages.

  1. Exclusive customer segments

Customers who visit Green Cup are seen mostly female especially in their 20s to 30s. The factor possibly makes other customer segments hesitate to enter the restaurant.

  1. Inexperienced staff

The most common negative review is about poor customer service. Also, customers complain that the taste of acai bowls are too thick or watery depending on the staff.

Opportunities:

  1. Location

All stores are located on main street or area which is chance customers find them.

  1. Influencers / Instagramers

They promote their service and product well by using influencers on Instagram.

  1. Promote a sustainable-aware (vegan / vegetarian friendly) menu and retails

Environmental issues have been concerned and sustainable actions are being encouraged in recent world. In response to this, Green Cup has vegan or vegetarian option smoothie and acai bowls upon requests. Also, they promote environmentally-friendly retails such as reusable cups or reusable straw.

  1. Takeaway service

The use of food delivery apps has been popular as technology developing. Takeaway service is high-demand at the restaurant.

Threats:

  1. Seasonality

Acai bowl and smoothies are cold menus. Sells grow well during summer, on the other hand they would struggle to increase the sales when it is rainy, cold or bad weather condition.

  1. Competitive location

Chapel St precinct is competitive in local hospitality businesses. Therefore similar businesses are concentrated in the area. Business efforts are necessary to win and keep their  clients.

  1. Economic recession

Because the price is higher than other competitors’, consumers become money-conscious and hesitate to spend money if economic recession hits.

QUALITY: 100% ORIGINAL PAPER – NO PLAGIARISM – CUSTOM PAPER
error: Content is protected !!