MEMORANDUM
TO: Lars Noel, Chief Executive Officer (Cuppa Coffee
FROM: Marketing Analyst
RE: Cuppa Coffee Marketing Strategy
Cuppa Coffee has established itself as a quality café in the market. Customers like the brand and
perceive it as a high-quality coffee and consider the product as a luxury good. The key demographic that
the Cuppa Coffee serves is students, young professional and coffee enthusiast. The major challenge is
the change in people’s preference about coffee as other alternative companies provide quality coffee at
a lower price. The economic downturn also influences the choice of customers when it comes to
spending money on coffee. Though considering an option of providing alcoholic beverage might help
increase the revenue in evenings but it also comes with a risk. I don’t recommend taking a wholesale
approach with alcoholic beverage as you might alienate the existing customer and can lead to brand
dilution as customer will not look at the company anymore as café. I also recommend adding special
coffee flavors for evening and have quick dinner menu for attracting late afternoon/evening customers.
Adding alcoholic beverage will change the perception of company and can dilute its brand equity. Most
students who come to Cuppa Coffee for studying will find it disturbing to have alcohol around them in
evening. Working professionals might and older people might like it as it gives them one place to go in
morning and evening for their caffeine fix and after work relaxation. Also, families with kids may not
consider this appropriate place to go anymore. The response will also vary from the target market
specific area for example you might get a good response if there is alcoholic menu near a university
campus vs near a library.
To increase revenues, I recommend we take a phased and targeted approach. First start pilot stores