The Kapoor Coffee Shop is a 60-square-meter café that can seat about 50 customers at a time. Its store menu consists of a variety of beverages and food; depending on the time of the day, Kapoor Coffee Shop offers breakfast, lunch, and evening meals, and its beverage menu includes coffee, tea, and soft drinks. The shop has an accommodating layout with a constant flow of loyal customers, but has shown lower than expected sales growth in the past two years. The economy and coffee consumption trend in India is in favor of Kapoor Coffee Shop’s market planning and sales growth. As research studies suggest, Indian coffee consumption is expected to increase by a double-digit rate each year; therefore, considering the country’s huge population
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First and foremost, as suggested in SWOT analysis, it is crucial to recognize the importance of customer feedback, since it is the foundation of establishing an accurate analysis regarding any performance; failing to do so would further enlarge the perception gap between manager and customer. Verma indicates that customers rarely directly complain to staff and manager, which can be solved by offering promotions or rewards, such as store credits and discounts, as encouragement. Another issue presented in SWOT analysis is Kapoor Coffee Shop 's lack of advertising effort. The manager can take advantage of the convenience of online marketing, considering the fact that it is cost-efficient and popular among the target market. The use of social media is a major advantage; for instance, Verma can create an official Facebook page of Kapoor Coffee Shop and include the essential information such as pictures, store address, operation hours, menu, etc. Promotions updated on Facebook will immediately reach public, and the cost of maintenance is minimal. Plus, it is convenient since most of the target market has a Facebook account already. Verma determines the average expense for each customer as 50Rs, reducing variable cost can effectively boost profit margin for service business, but Verma will need to think carefully in order to maintain service quality. Depending on the cost efficiency, several things that need to be amputated for lower expense include freebies and low-demand items. Verma may also look for peak times and adjust staff work shifts accordingly, while focusing on improving productivity and
First and foremost, as suggested in SWOT analysis, it is crucial to recognize the importance of customer feedback, since it is the foundation of establishing an accurate analysis regarding any performance; failing to do so would further enlarge the perception gap between manager and customer. Verma indicates that customers rarely directly complain to staff and manager, which can be solved by offering promotions or rewards, such as store credits and discounts, as encouragement. Another issue presented in SWOT analysis is Kapoor Coffee Shop 's lack of advertising effort. The manager can take advantage of the convenience of online marketing, considering the fact that it is cost-efficient and popular among the target market. The use of social media is a major advantage; for instance, Verma can create an official Facebook page of Kapoor Coffee Shop and include the essential information such as pictures, store address, operation hours, menu, etc. Promotions updated on Facebook will immediately reach public, and the cost of maintenance is minimal. Plus, it is convenient since most of the target market has a Facebook account already. Verma determines the average expense for each customer as 50Rs, reducing variable cost can effectively boost profit margin for service business, but Verma will need to think carefully in order to maintain service quality. Depending on the cost efficiency, several things that need to be amputated for lower expense include freebies and low-demand items. Verma may also look for peak times and adjust staff work shifts accordingly, while focusing on improving productivity and