Exam (elaborations)
WGU D374 Task 2
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D374 Task 206/13/2023
D374 Task 2
A1)
a. Between 2018 and 2023, although there was a 1.4% increase in revenue, there was a -5.4% annual growth of profit within the coffee and snack shop industry (Le, 2023). The French Press has noticed a loss in sales, as many other coffee shops have seen, which would explain this loss of profits. Sales are directly related to external factors, such as the high unemployment rates or supply chain disruptions due to the pandemic, low rainfall in Brazil where coffee is grown and processed, and increased coffee prices due to these factors (Le, 2023). b. There are many competitors in the coffee shop industry, with only a few holding significant market shares. Competition is incredibly high, with the trend only increasing. Coffee giants such as Starbucks and Dunkin tend to set the trends. Still, as coffee giants and other small coffee shops enter the market around The French Press, the competition gets fiercer and brand loyalty is
no longer holding the most importance. These other factors include (but are not limited to) location, consistency, product ranges, and quality (Le, 2023). Where The French Press has been a
community hub, with other shops entering the market, the customer base will change over time as they develop their preferences for competitors’ options. c. We can see that The French Press has many different offerings on its menu, ranging from coffee drinks to sweets to savory snacks. Most coffee shops will have the typical mochas, cappuccinos, and lattes, along with a small selection of pastries or breakfast foods, but it is known that customers want a range of products to keep them coming back. With the state of the economy currently, customers want to be given the most value for their dollars. They are showing a preference for healthy foods, and more savory treats are trending. The nutritional content of café offerings are affecting the industry, as we can see with the growth and decline of certain treats that The French Press serves. The annual growth for items such as bran muffins, frittata bites, and savory scones has marked increases, whereas items such as the sweet puff pastry and cheesecake see a decline in growth. Customers are becoming increasingly more concerned about the fat and salt content of their on-the-go foods, and this focus on health consciousness is proving a direct effect on the industry (Le, 2023). B1)
a. Two characteristics to be used as criteria for recruiting research participants would be customer loyalty and customer diversity. By considering the level of customer loyalty towards The French Press when recruiting participants, long-term customers can be chosen so that the research team can gain insights into their changes in preference, any reasons they may have for fewer visits than before, and any suggestions they could give for improvements that The French Press can make moving forward. The information gleaned from these loyal customers will help to understand the driving factors for declining sales, formulating new strategies to improve customer loyalty. Recruiting customers due to their diverse backgrounds would include both new
and long-term customers and residents in the Honeysuckle area surrounding The French Press. With a diverse group of participants, the team can investigate how diverse experiences and different cultural norms impact how The French Press is perceived and the many different preferences of these cultures. This information would help the research team suggest strategies
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