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CIBO Espresso: SWOT Analysis and Customer Influences

Info: 3373 words (13 pages) Essay
Published: 8th Feb 2020 in Business

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CIBO Espresso

1. Introduction

Cibo Espresso is an Australian coffee shop franchise located in Adelaide, South Australia. The cafe is located in 28 locations in South Australia and one each in Victoria, Queensland and NSW. In an Italian atmosphere, the café aims to offer traditional Italian food made from the local ingredients. There is a stable development in the business from the starting periods of the business organizations. Due to the company’s high quality, and traditional Italian menu, the restaurant quickly became a dining landmark renowned that included cakes, pizza, pastries, and gelato along with the excellent coffee. They opened the first CIBO Espresso Bar in Adelaide in the year 2000. For marketing of their products, the executives of the company utilized the brand report to impart the brand esteems to existing the new franchisees and empowered them to live and secure their interest in the brand(CIBO, 2018a).

2. SWOT analysis

a)     Strength-

  • Good Quality- The café provides a high quality of food and drinks in the market, and because of this, the restaurant has to maintain a good reputation among its customers.
  • Assessable location- The café has made the assessable location in 28 different places in the South Australia through which the customers can get easy access to the café and do not have to spend a long time travelling to get access to the café. 
  • Excellent supplier- The café is an excellent supplier of the coffee beans, and they do well enough to supply the coffee products in the market. This provides efficient working and helps increase the profit of the company as well. 
  • Advanced Technology- The café uses new featured technologies for improvement in their products and provides quality of services to the customers at the same time as well(Ibisworld.com.au, 2018).

b)     Weakness-

  • Difficulty in embracing the product in the customer’s eyes because of various kinds of problems relating to the changes in products may arise, which makes difficult for the café to embrace their products in the eyes of their customers.
  • Retention of the skillful human forces- It is another main weakness of the café. Lack of retention of the skillful human resources in the café provides problems regarding the development of the café, and they will not be able to meet the needs and demands of the customers which creates barrier as well.
  • Huge business investments– As the café has invested a huge amount in the expansion of their business, there is always a fear of loss of those huge investments which may make a loss in their business as well.
  • No customer base- There is always a fear of losing the base of the customers as the café may launch different products, and the customers may not like it(CIBO, 2018b).

c)      Opportunities

  • Increase in demand- Due to the rapid increase in the demand of the customers, the café can seek it as an opportunity and increase their rate of production. By enhancing this opportunity, they will be able to supply more products in the market, and this will efficiently increase their rate of the business. 
  • Fast growing of the industry- They can grow the industry effectively by observing and analyzing the changes to grow the industry rapidly. They should be able to identify the root cause of the company’s weakness and develop strategies to solve those problems.
  • A higher population of the target business customers- Targeting a huge number of population can be used as a strategy of increasing their marketing and improving their business at the same time(Musa, 2018).
  • Having the benefits of location in terms of attracting the customers– This can be seen as a huge opportunity because of the good location access a huge number of customers can be attracted, and the company can gain more advantage from it as well. 

d)     Threats

  • Huge competition- Other various competitors of Cibo Espresso can cause a real threat to the café. They may implement different kinds of plans and policies to get ahead of Cibo Espresso, which can cause a real problem to the café.
  • Change in the taste and preference of the customers- It is another main threat in the context of this company. The customers may get attracted to other different kinds of coffee which comes with different tastes. The change in the taste and the preferences of the customers can cause a real threat to the company.
  • Change in the rules and regulation and laws of the nation- Another main threat is that, sometimes the government may suddenly change its rules and regulations which may hamper the company. The slight changes in the rules and regulations related to the management of the company can cause a real threat to the café, and because of this, they will not be able to achieve their goals.
  • Lack of increase in the productive manpower- In the case of Cibo Espresso, if the workers are not skilled enough then it will directly cause a real threat to the company as unskilled workers will not be able to produce good quality of products and eventually the company will not be able to meet the needs and demands of the customers at the same time(Franchisebusiness.com.au, 2018a).

3. Analytical discussion on factors which influences behaviors of Cibo’s          consumers.

After analyzing the different kinds of factors of responses of the consumers towards the company, we came to know that customers are well attracted by the different kinds of good services and facilities provided by the café with a good quality of food as well. They have been able to maintain a good interrelationship in between the customers by increasing the number of cafes around Southern Australia, which made their customers easy to access. This has made a huge change in preference of the customers and their attitudes towards the café(Tellingadelaide.wordpress.com, 2018). The main factors which influence the behaviors of Cibo’s consumers are:

a) Marketing Campaigns

In the case of Cibo’s Espresso, we can see marketing campaigns have played a great role in the context of influencing the behaviors of the customers(Duvnjak, 2018). They use advertisements, which makes them play a greater role in influencing the purchasing decisions made by consumers. Lucy Duvnjak is the current marketing manager of the company, and he uses the strategy of advertisements for increasing the marketing campaign of the company, which influences its customer behaviors.

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b) Personal Preferences- The personal preferences of the customers also directly affect the customer’s behaviors. In the case of Cibo Espresso If the taste and preference of the customers do not match their coffee taste and quality, then that condition will directly affect the café, and it may lead to creating a problem which shows a change in the customer’s behavior. Customers may have good taste in other types of coffee which are not produced by Cibo Espresso, which may bring a change in their behavior.

c) Influence of the group– Group influence leads to a change in customer’s behavior. In the case of Cibo Espresso, group influence can also impact on the behavior of the customers. It primarily consists of members of family, relatives, friends and secondarily consists of neighbors who can have a great influence on the purchasing decisions of the customers. It encourages other members to buy or not buy the products from a specific place which directly can bring a change in the attitude of the customer.

d) Power of purchasing- The customers will show their behaviors towards the products according to their power of purchasing the products. They generally evaluate their buying capability before choosing to buy a certain product. In the case of Cibo Espresso if the prices of the coffee and other food items are placed way higher, it will become difficult for the normal person to buy the products as they have a low purchasing power and this will directly impact on the sales of products of the company(Tully, 2015).

e) Economic Conditions- The economic condition of the customers determines their spending decisions. If Cibo Espresso implements the price of its coffee way higher than the customers will not be interested in buying their products and they will make a decision according to their economic conditions. Their decisions can be either positive or negative, and it depends on the type of economic situation prevailing in the market.

4. Analytical discussion on the variables Cibo employs when segmenting customers market.

It is a way of trying to send information to a target market. During the process of segmenting the customers market, various kinds of variables play various kinds of roles and influence the business in many positive and negative way as well. These variables determine the type of marketing that should be done according to demographic, geographic, psychographic and behavioral variables. The marketing segments can be identified easily and carefully and is steady. They can be opened easily by elevations, communication and other circulation channels and are appropriate for the company’s policies and resources as well. This will eventually help the marketers to make a connection with their targeted audience and develop interactions and communicate with them as well.

a) Geographic Segmentation- The variables in geographic segmentation includes region, climate, the density of the population, population growth. In the case of Cibo Espresso, the company aims to market its products by looking at the geographical condition of that particular place. The company markets its products by analyzing the size of the population, climatic condition and region of the particular place. The company develops strategies for marketing of its products by determining the population size and density of that particular place where they are going to open their business. This will help them to understand their potential of marketing segmentation in that particular area. This segment can be as comprehensive as a particular country/ region or a small place in a town(Franchisebusiness.com.au, 2018b).

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b) Demographic Segmentation- The demographic variables in the process of marketing segmentation includes age, gender, ethnicity, religion, education etc. The company targets multiple segments at once, which makes this segmentation more effective. The company markets to a particular demographic group of people with more household income. They also target people in between specific age groups and advertise their products. They make their products for the age group of all people by analyzing their taste and preferences(Kim et al., 2016).

c) Psychographic Segmentation- The Psychographic segmentation includes variables like the values, attitudes, opinions, interests and lifestyles of the customers. It helps to divide the market on various principles. It is tough to implement this customer segmentation as compared to others. In this case, the company uses the discount process on their products and target the customers who are very much conscious about their budget. This segmentation helps people value a good deal.

d) Behavioral Segmentation- This segmentation is very much similar to Psychographic segmentation, and it concentrates less on the demographic and geographic segmentation. This segmentation divides the customers into groups according to their usage rate and patterns, the sensitivity of the price, loyalty, awareness and knowledge of the customers in a particular area. The company uses this segmentation by sending various kinds of options to their loyal customers and use them in a variety of ways at the same time as well. This directly allows the marketers of Cibo Espresso to become more pertinentand make messaging, which will help them to reverberate with their anticipated targeted market.

5. Complete analytical discussion on Cibo’s promotional mix

During the process of implementing the promotional mix, the company uses various components like personal selling, Advertising, Sales promotions, Direct marketing, Public relations etc. by combining these components and implementing them in an effective way the company will be able to increase its promotional risks and reach the goals and profits of the organization. The company should also become aware of the money spent on advertising and promotions of their products in the market. After implementing various plans and policies, the company should use the strategies to build the promotional mix as well. This directly helps to establish brand awareness of the company and helps in bringing a clear, convincing message based on the appropriate methods of promotion of the products, which includes a promotional mix. After implementing the promotional mix, the company will be able to manage and deliver a clear goal(Ciboespresso.com.au, 2018).

The various methods of Promotional mix used by Cibo Espresso include,

a) Personal Selling- This process involves direct communication between the buyers and the customers. It is a one-to-one communication process. The company uses this method for the personal mix, and it generates direct contact with prospects and customers. It is considered to be one of the most costly way of promotion of related products. Through this method, the company will be able to maintain a successful relationship between the seller-buyer.

b) Advertising- Advertising plays a great role in the context of marketing, and it is considered as the key aspect of the promotional mix as well. The company advertises its products in the market by using various techniques. Through the process of advertising, the company can increase the advantage of promotional risk. Cibo Espresso can use a good advertising strategy which can be used to build a solid trademark for the organization.

c) Direct marketing- This process of marketing directly aims at the goals and forecasts of their customers. The company uses social media marketing, internet marketing and provides all the information related to the services provided by the café towards its customers. The customers can get access to that information, and they will be able to know about the products and services of the company.

d) Public relations- Making a good relationship with the public helps to, influence a target audience and from this, the company will be able to develop a satisfactory and helps in upholding the optimistic image for the organization. The company uses strategy by providing proper goods and services to the customers, which helps the company to connect them with the target audience and share the information of the organization about the product.

e) Sales Promotion- It is a widely used practice used by various companies for the promotion of the products. Cibo Espresso uses this strategy to stimulating the buying and selling of the products. The company provides various kinds of tickets, product samples etc. to the customers, which help to increase their reputation in the market and promote their products at the same time as well(ESpressopublicrelations.com, 2018).

6. Summary and Conclusion

From this report, we came to know about the overall marketing strategy, information about Cibo Espresso and in the SWOT analysis, we came to know about the company’s strengths, weakness along with the opportunities they can seek and some weakness of the companies as well. We also discussed the various factors that influence customer’s behaviors, marketing segmentation of the company and analytical discussion about the Cibo’s promotional mix which includes various methods used by the company to maintain their public relations, sales promotion, and personal selling as well. This shows that to run the business smoothly, the company has to use different sorts of things for the marketing of the products and use various techniques for promotion of their products as well.

 References

  • CIBO (2018a) CIBO Espresso [Internet]. Available from: <https://www.ciboespresso.com.au/>.
  • CIBO (2018b) CIBO Espresso | about [Internet]. Available from: <https://www.ciboespresso.com.au/about-us/>.
  • Ciboespresso.com.au (2018) CIBO Espresso [Internet]. Available from: <https://www.ciboespresso.com.au/>.
  • Duvnjak, L. (2018) Lucy Duvnjak – National Marketing Manager – CIBO Espresso – Retail Zoo | LinkedIn [Internet]. Available from: <https://au.linkedin.com/in/lucy-duvnjak-67385576>.
  • ESpressopublicrelations.com (2018) Espresso Public Relations [Internet]. Available from: <https://www.espressopublicrelations.com/>.
  • Franchisebusiness.com.au (2018a) CIBO Espresso franchise for sale | Inside Franchise Business [Internet]. Available from: <https://www.franchisebusiness.com.au/brands/cibo-espresso/>.
  • Franchisebusiness.com.au (2018b) Mt Gambier – Inside Franchise Business [Internet]. Available from: <https://www.franchisebusiness.com.au/brands/cibo-espresso/mt-gambier/>.
  • Ibisworld.com.au (2018) Cafes and Coffee Shops – Australia Industry Report | IBISWorld [Internet]. Available from: <https://www.ibisworld.com.au/industry-trends/market-research-reports/accommodation-food-services/cafes-coffee-shops.html>.
  • Kim, C., Lee, S. & Kim, S.W. (2016) Surviving in the Red Ocean: measuring factors for business excellence among coffee franchises in Korea. Total Quality Management & Business Excellence, pp.1–14. Available from: <http://www.tandfonline.com/doi/full/10.1080/14783363.2016.1187994>.
  • Musa, E. (2018) 58 Best Alfulla images | Food carts, Food truck, Coffee carts [Internet]. Available from: <https://www.pinterest.it/callmusa050/alfulla/>.
  • Tellingadelaide.wordpress.com (2018) Some ideas to increase CIBO’s brand salience | Telling in Adelaide [Internet]. Available from: <https://tellinginadelaide.wordpress.com/2012/05/27/some-advice-to-increase-cibos-brand-saliance/>.
  • Tully, K.S. (2015) At Cibo’s in Wakefield: Now that’s Italian – The Boston Globe [Internet]. Available from: <https://www.bostonglobe.com/metro/regionals/north/2015/09/18/cibo-wakefield-now-that-italian/w1jkZraiiIV2VHWxrF8uTK/story.html>.

 

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