Second Cup Case Study

This sample essay on Second Cup Case Study provides important aspects of the issue and arguments for and against as well as the needed facts. Read on this essay’s introduction, body paragraphs, and conclusion.

Running head: CASE STUDY: SECOND CUP Case Study: Second Cup Audrey Fortin, Joshua Hartson, Ashley Jardine, & Andie Walker Turner St. Lawrence College Marketing Principles Kip Tuckwell November 28th, 2011 Case Study: Second Cup Second Cup’s strengths are: * They offer a unique coffee experience. Second Cup focuses on the atmosphere of their shops and pays a great attention to detail.

Unlike their independent counterparts, Second Cup has the resources to create a universal ambiance throughout all of their retail stores.

Their stores are very well designed, but have more of an exclusive feel than other coffee shops. * They are a subsidiary of Cara. Cara is one of the largest operators of full-service restaurants in Canada. The relationship with Cara gives Second Cup access to more resources—such as administrative services and monetary resources.

* They are fairly priced. * They are a globally recognizable brand. Second Cup was established in Toronto, Ontario and has been around since 1975. Over the past 35 years, they have expanded to over 16 countries. Most Canadians can identify the logo and recognize the brand. They are socially responsible. Second Cup is a very socially responsible company, they are not only fair trade certified, but they are also supported by the rainforest alliance. This is a strong point for the company, because it shows that they are responsible and are not all about profits.

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Second Cup is a very socially responsible company, they are not only fair trade certified, but they are also supported by the rainforest alliance. This is a strong point for the company, because it shows that they are responsible and are not all about profits. * They have a loadable gift card. (Lost and stolen program) * They has something new. (USP – new products all the time) (innovation) Second Cup’s weaknesses are: * They are a franchised company. People aren’t buying franchise they don’t grow * Second Cup is more expensive than competition. Higher priced due to low * Second Cup is socially responsible. This is also a weakness for the company for two reasons; firstly they do not advertise their socially conscious efforts therefore their high prices are not justified to their customers.

Second Cup Competitors

Secondly because they are fair trade, they pay more for their materials, this increases their costs which forces them to raise prices to allow for profit. Opportunities: * Second Cup can expand their products and services. * Second Cup should market their social responsibility efforts. * Brand Partnerships * Threats: * There is a decline in economic conditions. People have less disposable income to spend on themselves and their activities. The Canadian economy is recovering and therefore people are working more hours and the consumers are more cautious about how they spend the income they do have. There are a lot of competitors. The premium coffee market is constantly growing. Premium coffee is becoming very trendy and larger businesses want in on the action. McDonalds has recently got involved in the market with their McCafe which offers various types of specialty coffees and baked goods. Furthermore, Starbucks and Tim Horton’s are a significant competitor with a lot more outlets than Second Cup. Independent coffee shops are also a notable competitor as they have a portion of the market share and they have a presence in almost every town across Canada. The company is in a constant price war with their competitors over similar products. * Problem: Second Cup was one of the undisputed leaders in the specialty coffee market throughout North America; however, due the growth in chains such as Starbucks, Tim Horton’s, McDonalds, Timothy’s, and Seattle’s Best, Second Cup has lost a significant portion of their market. A new marketing strategy is needed in order to increase sales revenue and grow the market share of the company. Objectives: 1. To increase the sales revenue by 10% at $286 million. . To appeal to a younger market and to enrol more young members in the membership program. 3. Expand company presence by marketing in different high traffic areas. Alternatives: * Increase the membership cost. * Pros: * Cons: Recommendations: 1. Introduce a new ad campaign with a trendy new message to appeal to a younger target market and alter the image of MEC. By developing a campaign that conveys the AOI’s of the consumer it would reveal to the new target that the company understands them and a stronger relationship will be established.

Moreover, knowing the AOI’s of a customer will allow MEC to put ads in areas where effective impressions will lead to a sale (i. e. Internet, Outdoor Marketing, and other ads). Implementation Plan: Target Market Profile: * Current Target Profile: * Aimed Target Profile:. Positioning Strategy: Mountain Equipment Co-op offers quality outdoor products with a fair price, while having the least invasive environmental impact and top notch customer service. Marketing Mix Strategies: * Product: * Price: * Distribution: Marketing Communications Mix:

The following are concepts of the IMC Mix that would be effective for Second Cup: * Advertising: Direct response: * Personal selling: * Digital Communications: * Sales promotion: Budgets: The following is a table showing how the $500,000. 00 budget has been divided: Marketing| Cost| Bike Racks| $90,000| Direct Mailers| $8000| Spring Training| $7000| Google Ad Words| $36,000| Television Ad| $359,000| Timing: The following chart will show the months that each marketing strategy will be delivered: Strategy| Month| | Jan| Feb| Mar| Apr| May| June| July| Aug| Sept| Oct| Nov| Dec| Bike Racks| | | | | X| X| X| X| X| X| | |

Direct Mailers| X| | | | | | | | | | | | Spring Training | | | | X| | | | | | | | | Google Ad Words| X| X| X| X| X| X| X| X| X| X| X| X| Television Ads| X| | | X| X| X| | | | | X| X| | | | | | | | | | | | | | References C Media Outdoor, (2011). Details: Bike Racks. Retrieved October 6th, 2011 from: http://www. cmediaoutdoor. com/details1. html Canada Post, (2011). Admail Campaign Plan. Retrieved October 6th, 2011 from: http://www. canadapost. ca/cpo/mc/business/productsservices/marketing/addressedadmail. jsf Direct Marketing Association, (2011). DMA Mailing List Search Tool: Adventure Atheletes.

Retrieved October 17th, 2011 from: http://lists. the-dma. org/market? page=research/datacard&id=117210 Mountain Equipment Co-op, (2011). About MEC. Retrieved October 1st, 2011 from http://www. mec. ca/AST/Navigation/MEC_Global/AboutMEC. jsp Mountain Equipment Co-op, (2011). Sustainability. Retrieved October 1st, 2011 from: http://www. mec. ca/AST/Navigation/MEC_Global/Sustainability. jsp TV. com, (2011). How Much Television do you watch per week? Retrieved October 17th, 2011 from: http://www. tv. com/news/how-much-television-do-you-watch-per-week-24833/