MKT-Case study - marketing priciple PDF

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Casest udy Col dbr ewedcoffeef r om t heAnt znest Delane Osborne, Curtin Business School, Curtin University; and Carol Osborne, School of Management and Governance, Murdoch University Entrepreneur and coffee connoisseur Craig Muzeroll, founder of Australia’s largest and fastest growing drive-through coffee franchise Muzz Buzz, is stirring the Australian coffee market once again with another unique and innovative start-up business — Antz Inya Pantz cold brewed coffee. The Muzz Buzz story began in Spokane, Washington, where Muzeroll modelled his business idea after a successful drive-through coffee business operated by a friend. When he realised the market gap for a similar business in Australia, he set about learning all he could about coffee. After a reconnaissance trip to Perth, he decided to make the move to Australia. Based on the reasoning that Perth was an isolated market like Spokane, he thought the concept was transferable and the first Muzz Buzz was established in September 2001. The success of Muzz Buzz ultimately led to franchising, and there are now more than 60 stores in Australia and New Zealand — with several more currently in development. With a proven business model and successful growth strategy, the company now has its sights set on further international expansion into Asia and Eastern Europe. The rapid growth of Muzz Buzz saw an increase in shareholders, resulting in dilution of Muzeroll’s financial interest. The subsequent increase in shareholder influence and resulting change in direction led Muzeroll to divest of his interest in 2005. Antz Inya Pantz, Muzeroll’s latest venture, looks to be just as innovative and successful as his last. Having again modelled a business idea on an American product, his attention is now focused on cold brewed coffee. The coffee and water that go into the brew are treated with the utmost care and respect. The coffee beans, which Muzeroll refers to as ‘the most complex organic substance known to man’, are carefully selected and then roasted on-site. The roasted beans are then saturated in cold water before being extensively filtered. The water used to make the brew is softened and passed through eight filtration processes to give a pure and clean result. The final brew has a unique light and slightly sweet taste with a caffeine content higher than a regular cup of coffee. In keeping with the honest, uncomplicated approach of the business, the brew is sold in small, crown-sealed bottles and packaged in simple brown cardboard carriers. The cold brewed coffee, together with a range of hot brewed coffee, is currently sold from the business’s small café located in a trendy suburb of Perth, as well as from a network of 20 cafes that use the beans and stock the cold brew. The café opens early each morning, and customers are often seen queuing on the footpath for their morning coffee fix prior to work or after their morning exercise. The business philosophy is based on the premise that ‘good coffee and coffee preparation will bring customers in and back’. This philosophy is reflected in the 95 per cent of sales that are generated from repeat customers. A range of freshly roasted, ground coffee made from single-origin beans or a blend of beans is available to drink in store or to take away. Customers can also order their own special blend of roasted beans to take away in unadorned brown paper bags.

Contrary to the usual small café trend, food is kept to a bare minimum, as the experience is directed more towards the coffee aficionado. With this in mind, the business has resisted the temptation to clutter the café and surrounding footpath with umbrellas, partitions and sandwich boards embellished with advertising. The décor of the café is minimalistic — the walls are adorned with a collection of recycled coffee bean bags, and customers sit on an eclectic mix of mismatched wooden chairs and cozy sofas. 350Apart from a website, Facebook page and publicity generated from newspaper articles and guest speaking engagements by Muzeroll, little has been spent to actively promote Antz Inya Pantz. Instead of advertising, expenditure goes into top quality filtration and roasting equipment. Much of the promotion for the launch of the business focused on Muzeroll’s reputation as an experienced coffee entrepreneur with a passion for new, innovative business concepts. As well as having a top quality product, Muzeroll cites great customer service as a form of promotion in itself, explaining: My first rule of business is to make the best possible product, because if you do, your customers will find you. We pursue quality and the revenue follows, we don’t need to do massive amounts of promotion — the coffee sells itself. Word of mouth is a significant component of the business’s promotional strategy, as Muzeroll is reverent about the coffee he sells, believing customer recommendation to be the ultimate compliment. An example of how this strategy works is the treatment of new customers — their first coffee is always free. This business rule was created on the premise that if customers enjoy their first coffee they will return, more than happy to pay for their second and subsequent coffees. There is a sense of community within the store amongst the customers, who often sit together and chat at the large tables. This is also evident in the interactions between the customers and staff. If a customer is short on cash or forgets their wallet, rather than being turned away, they are still served and staff let them know they can pay on another occasion. This unique approach sees customers honouring the business’s good faith by paying next time they visit or slipping money under the door if the café is closed. Antz Inya Pantz also participates in a number of activities that foster community engagement. Philanthropic initiatives include giving coffees to the homeless, donating to local school fetes and fundraisers and, most notably, the ‘take away the till’ day that occurs on the first Friday in November. On this day, the cash register is removed from the store and all coffees are free. Customers still choose to leave cash on the counter, and all money raised is donated to various local charities. The business ethos also includes environmentally friendly practices, such as the installation of solar panels on the roof of the café and the use of recycled coffee bean bags as cushion covers. Antz Inya Pantz has developed a new niche in the coffee market, with a top quality product and a promotional strategy that focuses on customer service and community engagement. In such a competitive market, the business has struck a chord with coffee connoisseurs who enjoy the friendly and relaxed atmosphere. And with expansion plans for the business already on the drawing board, cold brewed coffee looks sure to be a success.47

Ques t i ons 1. HowhasAnt zI ny aPant zus edc ommuni t yengagementasaf ocusi nt hei rpr omot i onal s t r at egy ? 2. Whataddi t i onalf or msofpr omot i onc oul dAnt zI ny aPant zut i l i s e ? 3. Ast hebusi nessgr owsandpos s i bl yex pandsi nt of r anc hi s i ng,wi l li tneedt obr oadeni t s pr omot i onss t r at egyt oi ncl udebr oadcas tadv er t i s i ngs uc hasr adi oandt el ev i s i on? Why / whynot ? 4. I si tneces s ar yf orAnt zI ny aPant zt omai nt ai napr es enceons oc i al medi a? 5. Whatar et hepr osandc onsoft hemi ni mal i s t i cappr oacht opr omot i ont hatAnt zI ny a Pant zhast ak enc ompar edwi t ht hepr osandc onsofheavypr omot i on?

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