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Business & Marketing
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Marketing: Barry Higgel’s Coffeehouse

Coursework Instructions:

1.     Based on the marketing research results of Groups I, II and III, interpret each of the 3 segments, provide a reasonable name for each Group, and an explain how you came up with your interpretation. (6 points)

2.     Evaluate the potential segments and recommend which of the target segments Barry’s Coffeehouse should choose as a target segment and explain your rationale for this recommendation.  (12 points)

3.     Barry Higgel’s Coffeehouse needs to communicate with the target segment it chooses. Discuss the strengths and weaknesses of the segmentation method that the Coffeehouse is using, then compare it to 2 other segmentation methods we discussed in class.  (9 points)

4.     What are the characteristics of good segmentation, and how do you rate your choice of segment (from 2. Above) on a scale of 1 (poor) to 5 (excellent).  Please explain your reasoning.  (8 points)

5.     What type of perceived risk could potential customers of Barry Higgel’s Coffeehouse experience?  Explain your reasoning.  What would be the most effective marketing action by the Coffeehouse to alleviate this risk? (5 points)

6.     Create a market map for Barry Higgel’s Coffeehouse and include Costa Coffee as a competitor on the map.  How would you reposition the Coffeehouse, and explain why (or why not) you believe repositioning is (or isn’t) necessary.  (10 points)

Coursework Sample Content Preview:

Barry Higgel’s Coffeehouse
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Barry Higgel’s Coffeehouse
Answer 1
Group I comprises a demographic segmentation of young people. These individuals like a broad selection of products, such as tea, coffee, juices, tea, small meals, and baked snacks. In addition, since they constitute millennials and generation Z, quality wireless fidelity is crucial to them to facilitate faster Internet connectivity (STP and CVP Student, 2021). Group II is a psychographic segmentation of middle-aged working-class individuals. Indeed, this segment prioritizes quality products and a relaxing environment. Group III entails a behavioral segmentation of older adults. These people emphasize good service from friendly staff, a relaxing and comfortable atmosphere, and affordable products and services.
Answer 2
Barry Higgel’s Coffeehouse should choose to meet the needs of Group II, middle-aged working-class individuals. Unlike Group I and III, Group II comprises customers who are more concerned about having a variety of products, a relaxing atmosphere, and have no problem with paying high prices as long as they get exactly what they want. Middle-aged working-class people have a high likelihood of visiting Barry Higgel’s Coffeehouse when they are leaving their workplaces to socialize and probably discuss issues affecting them in their work and personal lives (Marketing Class 1 Student Final, 2021). Group I values low prices and quality wireless fidelity, meaning that they are not likely to purchase multiple products since they usually visit to get connected to the web. As such, they are not heavy spenders, which is why Barry Higgel’s Coffeehouse should avoid this segment. Moreover, the Group III segment is likely to be attracted by new competitors that offer cheap coffee products since they find low prices extremely important. These customers have a high likelihood to leave a coffee place if they experience a minor confrontation with staff members. As such, Barry Higgel’s Coffeehouse should focus on Group II and differentiate itself by offering multiple products and flavors to gain a competitive advantage.
Answer 3
Barry Higgel's Coffeehouse can communicate with its targeted segment through social media. The strengths of the target segment are that they are frequent Internet users, like a variety of products, and they have money to spend on their favorite products. On the contrary, the weaknesses of this segmentation is that they are busy and might not get time to respond to Barry Higgel's Coffeehouse on social media, and decreasing product prices might indicate low quality (Consumer Decision Making Student, 2021). The demographic segmentation is easy to communicate since Barry Higgel's Coffeehouse can focus on individuals of a specific age, race, occupation, gender, and income. When it comes to psychographic, the most crucial things are personality and lifestyle. In that light, the customers buy products that reflect their lifestyle, character, and personalities (NYU Lecture, 2021). Barry Higgel's Coffeehouse should use word-of-mouth, personal experience, colleagues, friends, and social media to co...
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