STRATEGIC MANAGEMENT ASSIGNMENT Harvard Case Solution & Analysis

STRATEGIC MANAGEMENT ASSIGNMENT Case Solution

Background

This report has been generated on the coffee house business for XYZ Beverage Company. This business of the company has attracted a large customer base and expanded across the globe despite the higher prices of its coffee.The coffee house drive thru business of the company contributes to around 40% of the sales of the company. The role of this business within the company is to make the company the number 1 beverage company with high quality coffee. By establishing this business as the premier purveyor of the finest coffee in town, the company is seeking to achieve high standards of customer value and development of enthusiastically satisfied customers.
Customer Target

The target consumers of the coffee business of the Beverage Company are from ages between 25 to 35 years. The consumers of this business area are from middle class and they are more concerned about their status and image rather than the price of the coffee. Moreover, the customers also seek convenience and quality. The targeted customers which we emphasize on here more focus more on the quality of the coffee which is being served to them. The customers’ prime need is high quality and not the price. The customers’ value profile has also been performed as shown in the table below on the key non price attributes which are to be done for the customers (Michael Barlett 2005). The total value score for the customers is 104.57.

Current Position

The current positioning of the coffee business of the company is based on the premise of delivering a premium product to its customers without compromising the principles of embracing diversity, creating a greater work environment for the employees, contributions to corporate social responsibility, developing satisfied customers and recognizing the importance of profitability of the coffee business for the company.The business is already offering a good value proposition to the customers however, the management needs to execute its position more effectively by focusing on customer issue resolution, positive attitudes and customer relations. The strategy canvas below highlights the desired positioning of the coffee business.

Marketing 4P & Key Success Factor

The management of the XYZ Beverage Company has positioned its coffee product as a premium product with more focus on quality without worrying for its high price. The price of the company’s product is high and at the time of the launch also it was positioned on the basis of its high price as defined in the previous section. The distribution and the service of the company are offered to its customers through a direct supply channel however, the company aims to make this relationship more personal in future (Neil Borden 2013). Finally, huge promotional activities are conducted by the business through artworks, communist events, and recruitment of local ambassadors. The company aims to establish a national dominance in its country. The KPIs (Lanning, Michael 1998) of the company are highlighted in the table below:

Audit

Currently, the coffee business of the company is fulfilling one of the key successes of the company in providing an experience to its customers and not just the coffee. It is a highly interactive experience for the customers to visit the drive thru and receive their desired coffee with the maximum customization to match their specific preferences. At present, the coffee business of the company is considered as one of the most popular specialty coffee retailer in the world......................

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