Market Case
PRODUCT POSITIONING: Coffeeville has revamped its menu, adding a healthier selection of food. Fruit and yogurt parfaits and warm breakfast sandwiches are now part of its regular selection is constantly looking for innovative ideas, products and experiences that can be offered to its customers. However, Coffeeville faces challenges in diversifying into other sectors, as it is dependent on the retail of coffee. Recently, Coffeeville had to change out the cheese on its breakfast sandwiches due to the smell of cheese overwhelming the smell of coffee. In addition to sales through its retail stores, Coffeeville sells coffee and tea products directly to business units.
MARKETING MIX FOR A NEW PRODUCT
PRODUCT: We developed a new blended fruit drink called Fruitier. This new product was developed to meet the need of our target market, which includes non-coffee drinkers, soccer moms, tweens and teenagers. Coffeeville will be competing directly with Boost Juice and other leading smoothie retailers by setting their price at the average competitors’ price of $4.50 for regular size. By using the current intimate communication strategy, we were able to lower the overall fixed cost. Furthermore, we were able to keep the variable cost down to achieve a projected 30% profit ratio by using Coffeeville ’ purchasing power and reputation of maintaining a positive supplier relationship. Fruitier is been scheduled to be launched in January 2015. As the market for the health-consciousness grows, our new product is expected to increase Coffeeville ’ revenue and market share.
PRICE: For the first time in its history, Coffeeville announced a modified pricing structure in October 2014. Impacted by the recession, Coffeeville has suffered a loss of customer traffic to its stores and decided to lower its price on new product. By doing this we will sure that we can compete the current market and we can make more profit on. Also we