CASE BACKGROUND: Bo's Bo's Coffee Coffee is known known for "just "just-roa -roaste sted d freshn freshness ess"i "its ts beans, mostly from Cordillera and Bukidnon, are delivered to its stores soon after roasting so that you can enjoy the distinctively bold, roasted flavour of Bo’s. Bo’s Coffee originated from a roast master name Bo in the U.S. who taught Steve Benitez all about coffee. It all started with a bean bursting with the life-force of personal passion and entrepreneurial energy. In 1994, Mr. Steve D. Benitez, President and CEO of Bo's Coffee, dreamt of sharing his coffee experience in the United States and Europe to the local market. June 1996 saw the opening of the first store of Bo's Coffee at Ayala Center Cebu, Cebu City, Ci ty, Philippines. It has has since ince grow grown n bran branc ching hing out out into into majo majorr urba urban n area areas s of the the Philip Philippin pines. es. Bo's Bo's Coffee Coffee now operat operates es 46 outlet outlets s strate strategic gically ally located located in Metro Manila, Cebu, Davao, Cagayan de Oro, Bacolod, Iloilo, Bohol and Tacloban.
Trademark Coffee Centrale, The Bean Co., Inc. is a duly certified corporation under the laws of the Republic of the Philippines. It was formed in 1998 to own and operate "Bo's Coffee." "Bo's Coffee" is a registered trademark of the business name of a chain of specialty coffee shops that serves espresso beverages, specialty coffee beverages and others, in an ambiance that has been created to cater to a lifestyle market with discriminating taste. Coffee System Franchise Corporation is an affiliate company, under license to franchise the trademark "Bo's Coffee" and its business systems.
Vision Bo's Coffee envisions itself to be the premier specialty coffee bar in the Philippines, roasting high quality Philippine origin coffee beans, serving world class class coffe coffee e bevera beverages ges and the most most delect delectabl able e select selection ion of cakes cakes and pastries, delivering an excellent branded customer service in a friendly and cozy ambiance.
Mission We believe that the relationships we build with others are what make our days full of life. It is therefore our mission to create an atmosphere where people can come and nurture relationships, make new ones, or simply flourish by themselves. Our role is to provide that perfect cup of coffee, which has become the ideal medium to enjoy life together with others or in the comfort of one's solitude, and deliver it with warm and friendly customer service. It's all about human experience with Bo's Coffee being a big part of it.
Product Offering Espresso Beverages (Hot & Iced)
Pandesal/Bread
All-day Breakfast
Adobo Tuna Corned Beef Cheese Roll Ensaymada
Big Breakfast Set
Caffe Americano Caffe Latte Caffe Mocha Caffe Cappuccino Caffe Caramel Latte Bars Caffe White Chocolate Mocha Butterscotch World Coffee Revel Bar Coffee of the Day Mallow Fudge Brownie Food for the Gods Carrot Bar Froccino Primo Lemon Square Caramelo Chocolate Chips Cookies Coffee Coffee Jelly Chocolate Chunk Espresso Crumble Oatmeal Mocha Fudgy Nut Oreo Cookie for the Gods White Chocolate Mocha Cakes Classic Freeze Chocolate Cookies & Cream Green Tea Strawberry
Eggs, Bacon, Corned Beef, Mini-Franks & Pancakes Eggs, Bacon, Corned Beef, Mini-Franks & Toast Bacon Set Bacon, Eggs & Pancakes Bacon, Eggs & Toast Bacon & French Toast Corned Beef Set Corned Beef, Eggs Pancakes Corned Beef, Eggs & Toast
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Sausage Set Hungarian Sausage, Eggs & Pancakes Hungarian Sausage, Eggs & Toast Mini-Franks, Eggs & Pancakes Mini-Franks, Eggs & Toast
Chocolate Cake New York Cheesecake Omelette Set New York Cheesecake (Sugarfree) Mushroom & Cheese Omelette Almond Torte and Toast Mocha Praline Hungarian Sausage & Cheese
Vanilla Mixed Berry
Antarteaca (Blended Tea) Mango Mixed Berry
Brewed Iced Tea Apple Dalandan Raspberry Passion Fruit Numi Tea (Hot)
Oreo Cheesecake Omelette & Toast Blueberry Cheesecake Corned Beef Omelette & Toast Chocolate Decadent Sansrival Chocolate Mousse Breakfast Sandwiches Triple Chocolate Mousse Banana Cream Pie Bacon & Cheese Sandwich Tiramisu Hungarian Sausage & Egg Mango Cake Sandwich Strawberry Short Cake Carrot Walnut Cake Lemon Meringue pIe Side Orders Chocolate Truffle Coffee and Cream Bacon (4 pcs.) Cheesecake Eggs (2 pcs.) Super Moist Cake French Toast (8 mini-squares) Lemon Meringue Pie Pancakes Regular (3 small pcs.) Bailey's Truffle Pasta
Fruit Juices Bolognese Carbonara Carrittierre Pomodoro Aglio Olio Herring
Orange Apple Mango Pink Guava
Premium Chocolate Hot Iced
Sugar-free
with
Dried
Sandwiches Bo's Turkey Club Grilled Chicken BLT Grilled Italian Veggie Ham & Cheese Supreme Hungarian Sausage and Egg Vanilla Tuna Salad
Coffee Primo Strawberry Freeze Vanilla Freeze
Branches Luzon • • • • •
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Alabang - Molito Makati - Dela Rosa Carpark 1 Makati - Ground Level, Glorietta 5 Mandaluyong - 5/F Bridgeway Atrium, SM Megamall Parañaque - East Transit Lounge, Departure Area, IPT, NAIA Terminal 1 Parañaque - NAIA 3, Departure Area Pasay - Ocean Drive, SM Mall of Asia Pasay - CT104-A, Ground Floor, Main Mall (fronting SM Appliance), SM Mall of Asia Pasay - Newport Pasig - Level 1, Robinson's Galleria Quezon City - 329 Katipunan Rd. cor. B. Gonzales, Loyola Heights Quezon City - E. Rodriguez San Juan - LG-03 Ground Flr., Virramall Gardens, Greenhills Shopping Complex Taguig - Ground Floor, Unit 1A08/1A09, Bonifacio High Street, Global City
Visayas •
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Bacolod - GF CT101(a), SM City Bacolod, Poblacion, Reclamation Area Bohol - Torralba St. (fronting Rizal Plaza), Tagbilaran City Bohol - Upper G/F, East Wing, Island City Mall, Tagbilaran City Cebu - Rain Tree Mall, F. Ramos St., Cebu City Cebu - Upper G/F, Robinson's Place, Fuente Osmeña cor F. Ramos St., Cebu City Cebu - Upper G/F Main Mall, (Beside National Bookstore), SM City Cebu, Cebu North Reclamation Area Cebu - Fiesta Strip, SM City Cebu, Cebu North Reclamation Area, Cebu City Cebu - 3rd floor (near the Cinemas), SM City Cebu, Cebu Reclamation Area, Cebu City Cebu - Unit G-06, Synergis IT Center, F. Cabahug St., Bgy. Kasambagan (Former Mabolo Proper), Cebu City Cebu - Outside Arcade (Slot No. GF-A4), Gaisano Tabunok, Tabunok, Talisay City Cebu - Domestic Pre-Departure Area, Mactan International Airport, Lapulapu City Cebu - G/F i1 Bldg., Asiatown IT Park, Barangay Apas, Lahug, Cebu Cebu - Osmeña Blvd. cor Don Cui St., (across Cebu Doctors Hospital), Cebu City Cebu - Banilad Town Center, Archbishop Reyes Ave., Banilad, Cebu Cebu - Ayala Center Active Zone. Ayala Center Cebu, Cebu City
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Cebu - Lower G/F Main Mall, Paseo Verde, Ayala Center Cebu, Cebu City Cebu - G210 Garden Lagoon, Ayala Center Cebu, Business Park, Cebu City Cebu - Fully Booked Ayala Center, Cebu Business Park, Cebu City Cebu - 168-Ouano Avenue, Mandaue, South Reclamation Area, Mandaue City Cebu - Robinson's Cybergate Mall, Fuente Osmena, Cebu City Dumaguete - Robinson's Dumaguete, Dumaguete Business Park, South Road, Kalindangan Iloilo - Upper G/F, SM City Manduriao, Manduriao City, Iloilo Tacloban - G/F Salazar Bldg., Avenida Veterans St., Tacloban City Tacloban - 2/F Robinson's Place (near cinema entrance), National Highway, Tabuan, Marasbaras, Tacloban City
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Cagayan de Oro - RA 16A/16B, Limketkai Center, Cagayan de Oro Cagayan de Oro - Ground Floor, Big R, Cagayan de Oro Cagayan de Oro - Velez cor. A. Hayes Sts., Divisoria Area, Cagayan de Oro Davao - Metro Lifestyle Complex, F. Torres cor Jacinto Sts., Davao City Davao - G/F SM City Davao, Quimpo Blvd., Ecoland Subd., Matina, Davao City
STATEMENT OF THE PROBLEM: To increase market share locally and further expand to international market but at the same time augment profitability.
ACTION PLAN: Competitors: a.
Local – Figaro Coffee Company, Mocha Blends, and The Coffee Beanery
b.
Foreign - Starbucks, UCC Coffee, Café Nescafe, The Coffee Bean & Tea Leaf, Dome Café, Gloria Jean’s Coffee, Mc Cafe, San Francisco Coffee Co., Seattle’s Best Coffee, Segafredo Zanetti Espresso, and Illy’s Café.
ANALYZING CONSUMER MARKETS Consumer behavior is the study of how individuals, groups, and organizations select, buy, use, and dispose of good services, ideas or experiences to satisfy their needs and wants. A consumer’s buying behavior is influenced by cultural, social, and personal factors. Cultural factors exert the broadest and deepest influence. BO’S COFFEE :
In the Philippines, most of us start their day with a cup of coffee and some even drink during lunch and merienda. To analyze the behavior of Filipino in terms of drinking coffee, it became part of the daily routine. Consumer behavior is influenced by three factors: 1. Cultural Factors Culture is the fundamental determinant of a person’s wants and behavior. Through family and other key institutions like school and work will influence the values. Companies have capitalized on Multicultural Marketing because a lot of countries have diversified culture. Social stratification, in the form of social classes: (1) lower lowers, (2) upper lowers, (3) working class, (4) middle class, (5) upper middles, (6) lower uppers, and (7) upper uppers. BO’S COFFEE :
Filipino loves drinking coffee and regardless of their economic status, everybody still drinking coffee but it will depends on the price. People in the working class up to upper uppers, they can afford to drink coffee in the café. While the upper lower and lower lowers, they drink 3 in 1 coffee which can be bought in the supermarket. Since the owner of Bo’s Coffee is from Cebu, all Cebuanos are patronizing the brand. 2. Social Factors Social factors such as reference groups, family, and social roles and statuses affect the buying behavior. A person’s reference groups are all the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior. Primary groups with whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers. People belong to secondary groups, such as religious, professional, and trade union groups, which tend to be more formal and require less continuous interaction.
Opinion leader is the person who offers informal advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used. Opinion leaders are often highly confident, social active, and involved with the category. Marketers try to reach opinion leaders by identifying their demographic and psychographic characteristics, identifying the media they read, and directing message at them. FAMILY The family is the most important consumer buying organization in the society, and family members constitute the most influential primary reference group. Two families in the buyer’s life: 1. Family of orientation – consists of parents and siblings 2. Family of procreation – one’s spouse and children, more direct influence on everyday buying behavior. BO’S COFFEE :
The family is very influential in terms of deciding where to go or what to buy. If a Cebuano will come to Manila to study or work, definitely they will choose Bo’s Coffee over Starbucks because of the family orientation.
3. Personal Factors A buyer’s decision is also influenced by personal characteristics, this includes: 1. Age and stage in the life cycle – the taste in buying behavior depends on age Psychological life-cycle stages may matter. Adults experience a certain “passages” or “transformations” as they go through life. Yet, the behavior people exhibit as they go through the passages, such as becoming a parent, is not necessarily fixed but changes the times. 2. Occupation – this is also influences consumption patterns. Marketers try to identify the occupational groups that have above-average interest in their products and services and even tailor for certain occupational groups. Product choice is greatly affected by economic circumstances: spendable income, savings, and assets, debts, borrowing power, and attitudes of spending and saving.
3. Personality and Self-Concept – each person has the personality characteristics that influence his or her buying behavior. By personality, we mean a lot of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental that may be evoked differently in different situations or around different types of people. 4. Lifestyle and Values – people from the same subculture, social class, and occupation may lead to different lifestyles. A lifestyle is a person’s pattern of living in the world as expressed in activities, interests, and opinions. It portrays the ‘whole person” interacting with his environment. Marketers search for relationships between their products and lifestyle groups. BO’S COFFEE :
The age and occupation are very important factors in the selection of brand because it will be the deciding aspect if they can afford luxurious coffee such as Bo’s. Bo’s coffee should do a market research within the area and make a survey of the buying powers of consumers. In Makati, we can say that it is the best place to put up a coffee shop because the lifestyle there is they go to a coffee shop for meetings, and discussions. KEY PSYCHOLOGICAL PROCESSES Four key psychological processes: 1. Motivation Freud’s Theory Sigmund Freud assumed that the psychological forces shaping people’s behavior are largely unconscious, and that a person cannot fully understand his or her own motivations. Maslow’s Theory Abraham Maslow sought to explain why people are driven by particular needs at particular times. His answers is that human needs are arranged in a hierarchy from the most to least pressing – physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. People will try to satisfy their most important needs first. Herzberg’s Theory Frederick Herzberg developed a two-factor theory that distinguishes dissatisfiers (factor that cause dissatisfaction) from satisfiers (factors that
cause satisfaction). The absence of dissatifiers is not enough to motivate a purchase; satisfiers must be present. BO’S COFFEE :
Drinking coffee has been part of the physiological need of a person. According to Maslow theory it is the first need to be fulfilled.
2. Perception It is the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world. The key point is that it depends not only on the physical stimuli, but also on the stimuli’s relationship to the surrounding field and on conditions within each of us. In marketing, perceptions are more important than the reality, as it is perceptions that will affect consumers’ actual behavior. People can emerge with different perceptions of the same object because of three perceptual processes: a. Selective Attention – attention is the allocation of processing capacity to some stimulus. Voluntary attention is something purposeful; involuntary attention is grabbed by someone or something. 1. People are more likely to notice stimuli that relate to a current need 2. People are more likely to notice stimuli they anticipate 3. People are more likely to notice stimuli whose deviations are large in relationship to the normal size of the stimuli b. Selective Distortion – the tendency to interpret information in a way that fits our preconceptions. Consumers will often distort information to be consistent with prior brand and product beliefs and expectations. c. Selective Retention – people remember the good points about a product they like and forget good points about competing products. Selective retention works to the advantage of strong brands. It is also explains why marketers need to use repetition – to make sure their message is not overlooked. BO’S COFFEE :
Bo’s Coffee’s ambiance of the deep mahogany chairs, the rich wood panels and the friendly atmosphere has help in their marketing because people tend to have selective attention on the place like that.
3. Learning Learning includes changes in our behavior arising from experience. Learning theory teaches marketers that they can build demand for a product by associating it with strong drives, using motivating cues, and providing positive reinforcement. BO’S COFFEE :
Bo’s Coffee does not engage in advertising and promotion, the company just relies on word of mouth and CSR activities.
4. Memory All the information and experiences we encounter as we go through life can end up in our long-term memory. Cognitive psychologists distinguish between short-term memory (STM) – a temporary and limited repository of information – and long-term memory (LTM) – a more permanent, essential unlimited repository. In this model, we can think of consumer brand knowledge as a node in memory with a variety of linked associations. The strength and organization of these associations will important determinants of the information we can recall about the brand. BO’S COFFEE :
The training of the barista is very important to make sure they are competent to handle and serve customer in order to make a good consumer brand knowledge.
RECOMMENDATION:
Don’t treat the strong coffee shops as a competitor rather as an inspiration to improve its company.
Innovate on their product that is healthy and good for weight watcher.
Be more aggressive in Metro Manila area and other parts of the country by putting more branches but they should do market research and analysis first.
Strengthen the Philippine market before expanding internationally.
CONCLUSION:
Bo’s Coffee believes that being aggressive is not a solution to gain market share. The company takes one step a time; first it makes sure to strengthen the organization and then expand to local and followed by the international market.
