Marketing Fundamentals

This report outlines the marketing mix variables of Brudos Coffee that includes pricing strategy, product strategy, placement strategy and promotional strategy.

Running Head: BUSINESS ENVIRONMENT 0
Marketing Fundamentals

BUSINESS ENVIRONMENT 1
Table of Contents
Introduction................................................................................................................................2
Product strategy..........................................................................................................................2
Price Strategy.............................................................................................................................3
Placement...................................................................................................................................4
Promotions.................................................................................................................................4
Recommendations......................................................................................................................6
References..................................................................................................................................7

BUSINESS ENVIRONMENT 2
Introduction
This report outlines the marketing mix variables of Brudos Coffee that includes
pricing strategy, product strategy, placement strategy and promotional strategy. It is a
strategy to give direction to the consumer about the company goods and services rather than
selecting the product of its rivals. The key is to explore the true channel of marketing and
revealing the relevant message so as to influence the targeted consumers (Gambetti &
Graffigna, 2010).
The marketing mix comprises of the primitive aspects tangled in the process of
marketing and helps the seller to recognise the needs of their potential and prospective
consumers (Williams, 2010). The current marketing mix variables of Brudos coffee are
presented below.
Source: (https://www.brudoscoffee.com.au/)
Product strategy
The major product of Brudos coffee includes their coffee which is a speciality blend
roasted especially for Brudos! The coffee beans used in Brudos coffee are obtained from
various exotic locations and upkeep local farmers. Brudos coffee adds more product lines in
the form of small snacks such as brownies, cookies, and other delicacies items, which is the
width of product mix to make consumers more stick with Brudos coffee (brudoscoffee.com,
2019).

BUSINESS ENVIRONMENT 3
Considering three levels of products (Core, Actual and Augmented products), the core
products of Brudos is their premium quality coffee. In terms of actual level, it includes their
brand name (based in Europe), features embedded with smooth in texture and low acidity
attributes, quality level (finest beans from exotic locations), design as a logo in the shape of
coffee bikes, and packaging which implies their recycling efforts as the company uses
recyclables cups and their logo is printed on the cups (brudoscoffee.com, 2019). The last
level of product is augmented product that includes support and gesture from the baristas of
the coffee bike which leads to easy to talk with.
Moreover, Brudos coffee gives people multiple numbers of products such as coffee
classic, coffee specialities, selected teas and fresh juices, which is adding the depth of product
mix that help individuals to more enjoy to buy products at Brudos mobile coffee shop.
Brudos coffee lines are reliable in distribution as they all are associated with coffee but they
are vastly different in use. For instance, their coffee is for intake and coffee cup is like a
vessel to use. However, all these demonstrates that Brudos coffee wants to fulfil consumer
varied needs.
Price Strategy
The Brudos coffee prices are set accordingly to middle and high-level incomes
people. Brudos coffee began at 4.00. The company also executed “value strategies” that
focused more on inexpensive products relatively being alleged as high-priced. For example,
the introduction of Espresso, long black and flat white cappuccino, iced tea, and soft drinks
start from 3.00. However, pricing is no much of an issue, when quality becomes the desire of
the targeted market and Brudos coffee has created such an experience due to which most of
the customer return back to their coffee wheel so as to drink coffee while walking.
Considering pricing strategy, the first pricing strategy that Brudos coffee can adopt is
bundle pricing, where they can sell their drinks and other products for a lower price than they
would charge if the customer bought all of them separately (Yan & Bandyopadhyay, 2011).
For example, the company may use several combinations of drinks and snacks like
cappuccino plus cookies, brownies and cookies, cappuccino and mixed nuts and so on. The
second pricing strategy that can be used by Brudos coffee can be pricing for marketing
penetration. It is a form of pricing strategy where they first need to set a low preliminary

BUSINESS ENVIRONMENT 4
price for a product so as to appeal new customers grounded on low cost (Spann, Fischer &
Tellis, 2014). Other than Sydney, the company can expand its business to other cities of
Australia with this strategy such as Canberra, Brisbane, Perth, Melbourne, etc.
Placement
Brudos coffee bike sells their coffee on a busy side of path or commercial building or
possibly outside areas like green gardens. Hence, they are selling their coffee both outdoor
and indoor. Their outdoor choice comprises both private and public outdoor spaces like busy
park, beach sides, and outer of buildings. On the other hand, their indoor option includes
various spaces like office buildings, malls and covert areas such as bus and train stations
(brudoscoffee.com, 2019).
The brand has a well-spread distribution network across Europe and Sydney that helps
in transferring benefits to the consumers directly. Considering their marketing/distribution
channel, the company is direct selling more where they directly contact with the customers so
as to quick and accurate adjustments can be made. Here, there is direct contact between the
baristas and customers which leads to convenience and service benefits. As they have coffee
machine on the board which was manufactured in Europe and can easily make between 200-
400 coffees an hour (brudoscoffee.com, 2019). In addition, they have grinders once again
assembled in Europe and unaffected to climate conditions with built-in mill to monitor sales.
Their coffee bikes are also built-in with space for refrigerator system that can grasp water, ice
and soft drinks. All these are includes in their coffee bike and with the help of two or three
baristas, the company is directly selling their coffee to the customers.
Promotions
Promotion is a significant element of the marketing mix which enhances and increase
brand awareness and reputation to a great extent (Kim & Hyun, 2011). Brudos coffee
achieved huge success in Sydney and has formed a status of having an advanced stylish
design and offering excellent cappuccino and healthier snacks. This help them as their bikes
have been entreated at several famous venues and iconic events through which they endorse
and promote their brands. They have gone through various successful events in their past

BUSINESS ENVIRONMENT 5
history such as International festival of landscape architecture (October 2017), Charity event
at Commonwealth Bank Australia (August 2017) and Chocolate festival in Sydney (August
2017).
The company also do promote through digital media including social media sites such
as Facebook and Instagram where they share regular stories with the customers and do the
business process interactive. Brudos coffee has more than 10.2 followers on their Instagram
page. The use of social media marketing is that it can improve both public relations and foster
a community of connection (Briones et al, 2011).
The company also promote their brand with the help of their packaging elements
where they have embedded their logo and name on the coffee cups that helps the customer to
connect with them more deeply. The company is also using various sorts of innovative
banners near their coffee wheel machines and at some corners of the roads that directly
impact on the customer perception and stimulate to get into buying process
(brudoscoffee.com, 2019). In last, their coffee bike is one of the self-promotion technique
that draws customer interest due to innovative thinking and targets enthusiastic customers
who prefer to talk while walking with a sip of coffee.
Recommendations

BUSINESS ENVIRONMENT 6
 The brand is more focused towards traditional marketing options as they are only
available at Facebook and Instagram having low count of followers. Therefore, they
can adopt digital marketing tools to draw the business of various customers and
sponsors outside Sydney and it will help them to expand their operations at more
locations.
 The company need to continue their research so as to move with current trend where
numbers of customer are becoming conscious towards their health and it is required
for Brudos to add more organic drinks in their menu items other than soft drinks.
 The company can also start their online delivery services which will increase the
opportunity to raise more sales across the specific location.
 The company should also expand its coffee business at more locations in Australia
especially tourist place as it stimulates high demand for such street business.

BUSINESS ENVIRONMENT 7
References
Briones, R. L., Kuch, B., Liu, B. F., & Jin, Y. (2011). Keeping up with the digital age: How
the American Red Cross uses social media to build relationships. Public relations
review, 37(1), 37-43.
brudoscoffee.com. (2019). BEST CHOICE for Coffee TO GO. Retrieved from
https://www.brudoscoffee.com.au/
Gambetti, R. C., & Graffigna, G. (2010). The concept of engagement: a systematic analysis
of the ongoing marketing debate. International Journal of Market Research, 52(6),
801-826.
Kim, J. H., & Hyun, Y. J. (2011). A model to investigate the influence of marketing-mix
efforts and corporate image on brand equity in the IT software sector. Industrial
marketing management, 40(3), 424-438.
Spann, M., Fischer, M., & Tellis, G. J. (2014). Skimming or penetration? Strategic dynamic
pricing for new products. Marketing Science, 34(2), 235-249.
Williams, C. C. (2010). Beyond the market/non-market divide: a total social organisation of
labour perspective. International Journal of Social Economics, 37(6), 402-414.
Yan, R., & Bandyopadhyay, S. (2011). The profit benefits of bundle pricing of
complementary products. Journal of Retailing and Consumer Services, 18(4), 355-
361.