The dynamic external factors in which a business operates determines the business's success. These factors are influenced by the actions taken by the other competitive firms in the market. Additionally, the 4P factors are also essential factors involved in marketing a good or service. They are fundamental pillars of any marketing strategy. The 4Ps include the Product to be marketed, the Price customer is expected to pay for the particular product, Place in which the product is sold, and the Promotion strategy used for the product. These are all crucial factors for the success of any firm. This paper aims to describe the competitive environment for Tim's Coffee Shoppe based on the competitive profile matrix. The paper will also explain how the firm's 4Ps of marketing should be revised based on customers survey.
Competitive Environment Based Competitive Profile Matrix
Tim's Coffee Shoppe faces significant competition from Queenqueg's Coffee, a well-established firm offering high-quality products. That gives Tim's Coffee Shoppe a competitive force in terms of quality since its product quality has a little market strength and calls for improvement. Even though the firm is centrally located, its location is not ideal for competing favorably with its primary competitor, which has occupied the most significant sites in the area. That gives Tim's Coffee Shoppe an unfavorable competitive advantage.
Delegate your assignment to our experts and they will do the rest.
Furthermore, brand recognition is an essential factor in a firm's competitive environment since it determines how well the firm is recognized. Tim's Coffee Shoppe is identified by a few individuals, even though it is easily recognized. That gives the firm a competitive weakness since its significant competitors, Queenqueg's Coffee is well-recognized since it has been established for many years. Finally, Tim's Coffee Shoppe staffs' low services result in the firm's weakness in the competitive environment. Its primary competitor in the market provides better services to the consumers hence offering a significant threat to the firm regarding service delivery. All in all, Tim's Coffee Shoppe faces intense competition from its competitors as a result of the above factors that influence its competitive environment.
Tim's Coffee Shoppe's Revised 4 P’s of Marketing
On the other hand, Tim's Coffee Shoppe's 4 Ps needs to be revised, considering its customer survey results. For instance, most of its customers complain of poor menu selections, poor seating area, inaccurate order due to a problem with the firm's register giving incorrect and cramped checks, and poor general services offered by the staff. Nuseir and Madanat (2015) noted that 4Ps are significant contributors to boost customers' loyalty concerning the firm's products. The firm's 4 Ps of marketing should be revised to improve customer loyalty.
The firm needs to better its services offered while selling their products to the customers to make their products stand alone in a competitive environment. It has been evident that customers complain about poor services while purchasing the products from the firm's premises. The staff needs to be trained to help them improve their service delivery. The pricing strategy noted that the firm's prices are relatively higher than the competitors' prices. Tim's Coffee Shoppe management should devise a pricing strategy that would help them compete fairly in the market and win the customer's loyalty. The firm also needs a distribution channel to reach the most significant locations before it opens up its branches in such areas. That would help the firm improve its customer reach, which is a substantial problem with the firm since it is not strategically placed even though it is in a central position. Finally, the firm should use a promotional strategy to create awareness and reach its customers and inform them of the improved service delivery they have been complaining about. That would help in improving their loyalty towards the firm.
Conclusion
In conclusion, marketing and competitive strategies are essential for Tim's Coffee Shoppe to survive and grow favorably in the competitive market despite the presence of Queenqueg's Coffee, which offers high competition in the market. Tim's Coffee Shoppe should focus on its significant weaknesses as complained about by its customers and improve on the factors that influence its competitive environment. By this, the firm will grow favorably and outcompete its major competitor in the market.
Reference
Nuseir, M., & Madanat, H. (2015). 4Ps: A Strategy to Secure Customers’ Loyalty via Customer Satisfaction. International Journal Of Marketing Studies , 7 (4). https://doi.org/10.5539/ijms.v7n4p78
