Tim’s Coffee Shoppe operates in the highly competitive environment. The major competitors of the business are Queequeg’s Coffee and Starbucks. The CPM analysis indicates that Tim’s has competitive advantage of advertising, improving services, and engagement in social services over its competitors. Based on the CPM scores, Tim’s needs to change its menu options and provides additional services to its customers. CPM analysis represents that Tim’s has high brand recognition as compared to its competitors. The total scores in all the areas of CPM model reveals that Tim has competitive advantage over its major competitors. It has to offer breakfast services and increase its market share. It has to include a drive thru services to facilitate people who are in a hurry in the morning. It will attract the customers to enjoy food products without waiting for their orders in the restaurants.
The 4 P’s of Marketing
Product
Tim’s offers products like coffee, donuts, and cookies according to the desire of customers. The restaurant needs to focus on services such as drive-thru that can engage a large number of customers.
Price
The prices of products are moderate and affordable for all class people. The price list needs to be revised monthly to ensure that it is reasonable and best to gain the competitive advantage.
Promotion
Tim’s always use print or social media to advertise its product. The promotion is helpful in attracting potential customers. The advertisement should contain details of the products and services and different deals offered by the brand.
Place
The restaurant is located in Sunnydale that is busy downtown. More customers can have easy access to the brand of Coffee. The target customers of the brand will increase as many coffee lovers are residents of the area.
Product Life Cycle of a Coffee
The above chart shows the product life cycle of different products offered by the restaurants. The restaurants also provide complementary products like cookies and donut to their customers. Every product is aligned in the different stage that indicates that the restaurant has a variety of products and its sales do not depend solely on the coffee products (Ferrell & Hartline, 2012).
Donut lies in the introduction stage that explains the product needs time to become profitable for the restaurants. The owner of the restaurants should promote the product to increase its sales. The marketing tools and techniques should be applied to introduce this new product in the existing market.
Tea is at the growing stage because sales are increasing for two months. It shows that people prefer to have tea. The restaurant has to focus on the smooth moving sales of the product and should achieve high profitability from the sales of tea.
Coffee is the key product of the restaurant that attracts people to visit the restaurant frequently. Coffee is at the maturity stage that illustrates the company need to offer new flavors to increase sales of the key product.
Cookies are the complementary products that lie in the declining stage. It shows that the trend of enjoying cookies with coffee products is becoming old. The restaurant should introduce new product line by offering new complementary products to the customers.
The product life cycle analysis reveals that Tim’s has an opportunity to increase the volume of sales by offering new products at reasonable price. It has to develop the pricing strategy to ensure customer loyalty and satisfaction. Tim should prepare a strategy to increase its customer by offering best products and services as compared to its competitors. Tim's also required to provide additional facilities such as Wi-Fi to entertain its customers. People love to work, enjoy, or socialize while sitting in the restaurants. It will allow customers to visit the restaurant frequently.
Reference
Ferrell, O. C., & Hartline, M. (2012). Marketing Strategy. Mason: Cengage Learning.
