Coffee Bean And Tea Leaf | Evaluation

2696 words (11 pages) Essay in Marketing

19/05/17 Marketing Reference this

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The Coffee Bean & Tea Leaf is actually considerably a worldwide high end coffee shop because it does providing the high quality products especially the most famous – coffee. Of course, by enjoying the high quality coffee, in return it must be a premium price from the consumer. Nowadays, it found that the willingness of spending by consumers is increasing and it comes to become younger and younger generation instead of the elder and high income generation on those days. According to the Consistent Consumer [1] , written by Beller (2005, pg274), it stated that a caring of consumer behavior must be working with social trends in order to figure out the equal prominence on the various value population. For example Coffee Bean, people are more willingly to purchase the coffee from Coffee Bean rather than a normal coffee shop and this actually happened is because the consumer behavior had changed as the trends (Lifestyle).

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1.1Reason for a Consumer to Purchase Coffee Bean

1.1.1 Social Class

Most of the people purchase Coffee Bean with a premium price is more because on the social class. Consumers nowadays are more paying attention on the personal social status, consumers do care how others thinking and feeling towards their behavior especially buying behavior. Human nowadays will define a person’s status by the products that he or she had – a very physically defining of social status. So, by holding a cup of Coffee Bean, others will have the first perception that this is a rich guy and this is actually an action that is outstanding the social status as well as the expectation of the Coffee Bean consumers.

1.1.2 Quality Coffee

Consumers have the perception that the coffee from the Coffee Bean is worth for both price and its quality. According to the appendix 1, it’s showing that the sources of the Coffee Bean’s ingredients. Coffee Bean will imported those coffees which cultivated at the high altitude because it will slowing the beans’ ripening time in a cooler temperature in order to create more concentrated, flavor of coffees. Coffee Bean even will personally visit to various farms in order to get the best quality coffee to satisfy the consumers. These actually is showing that the quality of the coffee from Coffee Bean is there and it can considerably worth for those who able to purchase it. So, by enjoying a high quality coffee and pay a premium price in return is also a common purchase behavior on the consumers nowadays.

1.1.3 Satisfaction

Other than enjoying the external satisfaction which is the quality coffee and internally the social status, it still has another satisfaction which is from the surrounding atmosphere. As per attached appendix 2, Coffee Bean does have a good atmosphere on its outlets. As per mentioned above, consumers do have the perception that the coffee from Coffee Bean is worth with the matches of its price and quality but not only that, even the atmosphere of the Coffee Bean’s outlets, it also a kind of satisfaction for the consumers by its outlets’ layout, magazines and newspaper provided and even an intangible services. All these are actually capturing the consumers’ heart in order to gain the satisfaction by enjoying the coffee from Coffee Bean.

By enjoying all the benefits as mentioned from the consumption on Coffee Bean, there are actually still have some others extra benefits or so called value-added on the consumption of Coffee Bean which dedicated to the consumers.

1.1.4 Free Beverages

A consumer will be rewards a free Ready-To-Drink bottle coffee for every RM50 top up on The Coffee Bean Card (TCB) as showing in appendix 3. This is a type of the attraction towards the consumer as well as strengthens the purchase’s willingness on the consumers’ perception since consumers are willing to pay a premium for its products and now can getting a reward in return as their consumes are appreciated.

1.1.5 Features Beverages

As a multinational company like The Coffee Bean & Tea Leaf, it does care about the cultural on every corner around the world for example, Coffee Bean does launched the features drinks on different festival and season accordingly to its country’s cultural as per appendix 4. This ad will demonstrate that Coffee Bean will not only care about its founded country which is US but all the countries that the outlets located in order to perceived the consumers’ perception towards its appreciations of consumption as well.

1.1.6 Cooperate Social Responsibilities (CSR)

Coffee Bean does have a lot contribution on the society as well as the education sector. Referring to the appendix 5, it’s stated that the caring parties that conducted by Coffee Bean and what is it actually in the caring party. This social responsibilities action will actually reflect on the consumers’ perception that their consumption is not only a self satisfaction whereas it also helping others those who need helps and it can be consider as a indirectly satisfaction for the consumer as well.

1.2 The Importance of Finding out a Consumer Behavior

Consumer behavior is considerably a cultural of a consumer, it can be changing over time to time and it’s very hard to capture and define a consumer’s behavior but of course it will have a lot of advantages if the consumer behavior has found. It will lead a business towards the right direction as well as the successful journey. Following are some importance of finding out the consumer behavior.

1.2.1 Implementation of Marketing Strategies

By understanding of the consumer behavior, a marketer can easily implement the right marketing strategies on the right segment market by using the traditional marketing mix which is 4Ps – price, place, promotion, and product. Marketer will know that what product will suitable for which consumer and where is the segmentation as well. The effectiveness and efficiency marketing strategies with adoption of the traditional marketing mix will be practicing if the consumer behavior was clearly identified.

1.2.2 Effective Controlling the Supply and Demand

Supply and demand are always the hardest to identify because a marketer will not clearly know when is the time that the consumers need the most on a product is. So, if a consumer behavior can be clearly identify, a marketer can simply identify the market demand and effectively control on its company’s supply in order to maximize the profit and minimize the surplus of its stock as well.

1.2.3 Produce the Right Products to the Right Customers

There is actually a lot of unneeded products in the market and those companies will produce such an unneeded product is because the companies not really understand what the customers need, want and even the expectation. So, a company can’t provide an effective and efficient marketing strategy to attract the customers to purchase the product. That’s the reason why there got a products’ surplus happened in the market. Thus, companies are able to effectively produce the right products to the right customers only if the consumer behavior is clearly identified.

1.2.4 Effective Controlling on the Materials Flow

A company can earn profits by using 2 ways which is increasing the sales or decreasing the cost. In order to practice decreasing cost method, an effective control over the materials flow also is a very important part. If the consumers’ different need and want on different circumstances can be clearly identified, then it won’t be happened of any materials wastage as well as capital losing.

Referring to all mentioned above, it’s actually used to illustrate that the importance of the consumer behavior as well as the contemporary consumer behavior acting especially the purchasing behavior for instance the contemporary lifestyle with the higher level purchasing by the consumers especially on those luxury goodies. In order to manage the adoption on both product and the current lifestyle, there is a necessity for a marketer to identify the various consumer behaviors to proceed the effective marketing strategies.

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2.0 Aging Population

Aging population is one of the common issues nowadays and it does impact the purchasing and buying behavior as well. Aging population market can considerably as a transparent market since elderly will paying more attention on the purchasing or buying rather than the teenage market in terms of more concern on both the internal and external impact of the product and the elderly wish to get both internal and external information and knowledge of the product, so this is the reason why the aging population market can be considerably is a transparent market. Thus, in order to capturing the market share on the aging population’ market, a marketer has to be alert with all the needs and wants from the aging population’ market as well as the adoption of the products with the aging population’ behavior in terms of capturing the aging population’s buying intentions. There are actually some ‘must’ has to be taken in order to effectively capturing the buying intention from the elders.

2.1 Ways to Create the Buying Intention from Elderly

2.1.1 Brand

Since it mentioned that the elderly will be more concern on the product’s impact, so in order to capturing the elderly buying intention, the product’s brand must be fully contrasted in terms of reaching the highest reputation in the elderly mindset. This is because elderly buyer will not know about the new brand and even not trusted by the new brand or not familiar brand, so normally elderly buyer will purchase from those ‘well-known’ brand as they know which normally they used to purchase or those really a branded product because only these brands will be more credibility for the elderly as well as the perception of the brand stability is there in the elderly buyers’ heart. Actually elderly buyers are normally more driven towards the brand loyalty, referring to Customer Loyalty, Retention, and Customer Relationship Management, written by Leventhal, Richard C (2006, pg117), there are actually a few ways to build up a brand loyalty by using the way avoiding the quick fix, which means a concept that is unacceptable with the status quo and aim to building a relationship beyond the traditional thinking which only the consumer/seller’s relationship, a company also has to manage its customers experience in order to maintain its kaizen as well as to derive the customer insight to enhance the buying intention [2] . For example, an elderly buyer will more willing to purchase a pair of Nike shoe rather than a pair of Converse shoe because of the reputation as well as the positioning of Nike in the elderly’ perception.

2.1.2 Features

Other than the brand, elderly will also very care about the products’ features to identify its usefulness. As mentioned, elderly is the one who will more concern on the products’ knowledge and information. So, the product’s features must be easily to be recognize by the elderly buyers because only that the elderly will have the intention to purchase that product especially with those attractive features. Thus, the product’s features must be included either on the packaging or being transmitted by a sales person. These action has to be taken because normally elderly buyers won’t search all the information by own as well as it will be neglecting if the product’s features never be provided. If a new product launched, it will simply attract the teenage market because teenagers are normally an early adopter, teenagers are more willing to try something new whereas the elderly will be the other way round which is not trusted by the new in the market unless the briefing and the explanation of the product are being provided to the elderly.

2.1.3 Price

How much money to pay for a product is an important issue in the elderly’ perception. Elderly will always consider the matches on the price and the product in terms of the worthy of the product. Elderly used to have the perception that to pay less and get more, so in order to capture the elderly buying intention, a product must be with not only a reasonable price but a cheap price because this will be the most effective way to attract the elderly buying intentions as well as the elderly buyers feel that it’s worth and comfort to purchase since majority of the elderly buyers will also appreciating the money in terms of its spending.

2.1.4 Quality

Appadurai (1986) acknowledged that society as outlining the cultural and legally approved the ‘path’ for the circulation of objects thus allowing objects to be transfer through the formal, economic and legal rules, such as the market pricing, as well as the quality of the products [3] . Elderly buyers do care on the product’s price as well as the product’s quality. Elderly buyers will always looking for the products which are long lasting and ‘able’ to use. Elderly buyers doesn’t wish to buy something which only with a short life period. Elderly buyers will have a multiple sources that able to supply the product’s quality such as the friends, family or the post purchase behavior. In order to attracting the elderly buyers, a company has to ensure that the quality products are being produce and able to getting the higher positioning in the elderly buyers’ perception since it will be the free medium to spreading the products’ news. Thus, a product that targeted the elderly market must be produce in the sense of good quality rather than some outstanding packaging, outlook design and so on.

2.1.5 Value Added

Elderly used to doing the comparison between the product and it alternative in order to purchase the right thing. There is actually has a greedy over the majority of the elderly’ perception in terms of getting more in return of paying less money. So, promotion and free gift will be the simplest method that should be implementing into the marketing strategy which is dedicated to the elderly’ market. Promotion and free gift will make the elderly buyers feel the satisfaction by getting rewards in return of purchasing a product. This is referring to the Branding Your Business, written by Harmmond, James (2008, page272), stated that the biggest problem on the consumers’ care was not exactly the intention but is to get what the consumers wants. The services provided to the buyers also is a way to attract the elderly buyers’ buying intention because a good services will make the buyers feel warm and caring as same as the elderly. Services can also help to building up a company’s reputation especially for the elderly market because once good has been found, and then the elderly will automatically spreading the message around their network to letting others know the good of the company.

As mentioned, in order to capturing the buying intention of the elderly, a marketer should adapt the needs and wants as well as the expectation provided to the elderly consumers. Elderly are always more fussy on buying and it will be a successful trading if a marketer succeed to remove the fussy and make the product that meet with the elderly expectation as the points that mentioned above in order to capturing the elderly’ buying intentions.

Bibliography

Hammond, James, Branding Your Business, 2008, Kogan Page Ltd.

Beller, Consistent Consumer, 2005, Dearborn Trade, A Kaplan Professional Company

Szmigin, Isabelle, Understanding the Consumer, 2003, SAGE Publications Inc. (US)

Leventhal, Richard C, Customer Loyalty, Retention, and Customer Relationship Management, 2006, Emerald Group Publishing Ltd

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