7p's analysis for Caff'e Nero'

1601 words 7 pages
Service analysis (7P’s) and recommendation : Caffe’ Nero Introduction Caffe’ Nero was founded by Gerry ford in 1997 which aiming to be authentically Italian, serving premium espresso-based coffee, fresh high quality food, and a neighborhood gathering spot by the end of 2000, the Nero team had built 31 cafes and established the company as a national brand and received British Design Council award for best company identity (Official Caffe’ Nero website). Caffe’ Nero considered themselves as both a fast moving consumer good (FMCG) or service provider. when marketing 4P’s strategy is enough the marketing mix is used when assessing the tools that can be used to influence buyer decisions(Kotler et al. 2009) When marketing …show more content…
2.) Pricing : They use Premium valuable pricing strategy combine with odd pricing strategy for coffee. in comparison to the rivals’ products prices small cappuccino in Starbucks is £2, in Costa Coffee £1.79, in Caffè Nero £1.55. Combining with additional discount rate for member. In the other hand they using middle pricing for food product that is set insignificantly higher than convenience store pricing but lower than restaurant pricing to attracts eat-out customer

3.) Place: Caffe’ Nero distributing in 4 branches in bristol city, each of branch aimed to capture most of population and business district which near to majority of targeted market. These distribution channel is providing easy access and convenience to customer in addition with time saving and cost saving to access. In the other hand they have some benefit gap to utilizing and developing new promotion such as business meeting hours coffee and food delivery that still need to be accomplished.

4.) Promotion: Caffe’ Nero Using strong and intensive promotion campaigns to pull customer into them and creating opportunity to turn them to loyalty consumer. They focusing on their club card which provide point collection every time customer buying from Nero, in addition with Nero special refill mug that is lower price per glass of coffee plus a chance to win a prize after customer refill feedback card. In comparison with competitor Nero have edge advantage when using bundle promotion with their foods.

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