Question

In: Accounting

Petula is a large coffee roaster café that offers food (artisanal pastries and cakes – made...

Petula is a large coffee roaster café that offers food (artisanal pastries and cakes – made from their kitchen) and beverages (coffee and other drinks). The operating hour is from 7.30am-6pm. It has been operating for ten years in Malaysia and has two outlets in Kuala Lumpur. Petula imports beans from Indonesia, Brazil, Ethiopia, Vietnam, and Columbia and roasts them uniquely in their roasting center in Kuala Lumpur. A typical cup of coffee (hot/ice) in Petula ranges between RM10 – 15. Additionally, they package the roasted and grounded beans and sell to consumers at the café and their official website. Currently, they plan to expand their business. First, they aim to become a coffee bean supplier to other cafes in Malaysia. Second, they plan to sell bottled-coffee (295ml) in three flavours americano, cappuccino, and latte, commercially to retailers. Based on this scenario, answer all of the following questions:

Question 1: A company uses a combination of five promotional tools to promote their offerings to the business and consumer market.

a) Suggest one promotional tool that is best for Petula to promote their beans to other cafes (business market) in Malaysia. Please provide justifications in your answer. b) Suggest two complementing promotional tools that Petula should adopt to market its bottled-coffee to its consumers (consumer market). In your answer, you will need to show how these tools complement.

Question 2: Suggest two pricing strategies Petula could adopt for their bottled-coffee. Please provide justifications in your answer.

Question 3: Petula plans to sell (distribute) its bottled-coffee (new product launch) to consumers through retailers, also known as intermediaries. From a strategy perspective, identify the number of intermediaries Petula should use and why?

Solutions

Expert Solution

sol:

Two complementing promotional tools for Petula:

1. Public relations: we are going to begin with packaging like advertising through some public figures, renowned bloggers or youtubers. Word of mouth works a lot of sharply than alternative ways for any complete.

2. Direct promoting: related to on-line and offline marketing for Petula can work tremendous operating at the side of public figures. These 2 techniques square measure complementing to every alternative because it can work as a push-pull strategy.

Two valuation ways for Petula:

1. Penetration valuation: corporations victimization penetration pricing strategy have a inexpensive answer so as to capture the maximum amount market share as potential. High volume of demand and sale can facilitate or complete low unit value thus enhancing growth and profit.

2. value discrimination: here we are going to set completely different value for identical product supported the market standing of the customer. In B2B, we tend to generally see value discrimination ways used for startups. company purchasers can have a distinct value than the regular retail purchasers. we are going to supply discounts to our tied-up corporations and thus will apply these 2 valuation ways for Petula.

Identifying the Intermediaries for Petula:

As we tend to undergo the case study we tend to get to grasp that Petula is merchandising foods and beverages to its purchasers. therefore we want not rely on any manufactures. an organization will have the maximum amount as several intermediaries they need however here within the case of Petula we are going to have agents and retailers for business. Petula will have a franchise business model as they have already got some outlets in Malaya and Kuala Lumpur, this franchise business model can facilitate them changing into a worldwide complete. therefore we want primarily 2 (2) intermediaries between Petula and its purchasers particularly the Agents, World Health Organization can provide the raw materials to the room, and Retailers World Health Organization can reach resolute our purchasers by our registered outlets or retailers.

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