Café Direct and Café Direct Consultancy – Case Study
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Running head: CAFÉ DIRECT AND CAFÉ DIRECT CONSULTANCY – CASE STUDYCAFÉ DIRECT AND CAFÉ DIRECT CONSULTANCY – CASE STUDYName of the StudentName of the UniversityAuthor Note
CAFÉ DIRECT AND CAFÉ DIRECT CONSULTANCY – CASE STUDY1Café DirectCafé Direct is a trading organization that aims to provide the growers of tea, coffeebeans and cocoa with a larger size of the purchase price of the concerned products. The CaféDirect has been one of the first brands to bear the Fairtrade Certification mark1. Thefollowing essay deals with the challenges faced by Café Direct according to the given casestudy. The essay proceeds further to put forth three recommendations that the concern mightneed to address in the current scenario. The essay proceeds towards the conclusion with theexplanation of the reasons that underlie the suggested recommendations.According to the SWOT analysis based on the given case study, Café Direct faceschallenges due to the increase in the number of the private label products that exist in themarket (Please refer to the Appendix I). The brand faces an issue with the major relaunchesthat it had undergone twice since its inception. This step was undertaken by the concernedcompany in order to attract more clients to the company by relaunching the brand. Thecompany might also face challenges in the current global market due to the fact that thecompany deals only in the hot drinks like coffee, tea and other beverages. The competitors ofthe company in the market are found to have been offering their customers with the variationsin the beverages that they have been offering to the clients. The global competitors likeStarbucks, Greggs or Costa do have an upper hand in the matters pertaining to the variousversions of the beverages that they are capable of providing to the concerned clients. Thismight lead to the decrease in the client base of the company in discussion, Café Direct. Theconcerned organization also faces a negativity in the financial position during the end of theyear 2016. It faces the challenge of being stuck in the negative equity by the year 2020.In order to cope with the challenges, the company might need to undertake certainsteps. The company might put forth the advertisements of the products that it aims to sale to1 Cafedirect.co.uk (2018) <https://www.cafedirect.co.uk/> accessed 13 March 2018
CAFÉ DIRECT AND CAFÉ DIRECT CONSULTANCY – CASE STUDY2the potential clients. The clients must be made aware of the various products that thecompany aims to provide them with. The concerned management must attempt to introducethe various products to the potential consumers of the company. The company is known forthe various types of the organic coffee blends that they provide to their consumers2. Thecompany is known to have observed the various ethical issues that are involved in themarketing of the same. The criticism concerned management of the organization might investin the various methods of advertising in order to allow the potential consumers to have asound knowledge of the products that they offer3. The company does not own retail storeswherein the consumers might visit in order to procure the products. The company must focuson establishing partnerships with the other organizations and shops that might help them toincrease their potential client base.The other challenge faced by the company in discussion, Café Direct is the fact thatthe company provides its customers with only the hot beverages unlike the other competitorsof the company. In order to resolve this issue, the company might conduct a survey of theconcerned client base. This might help the concerned company to form a better understandingof the demands and the needs of the clients. The understanding of the client needs might helpthe concerned company to launch the products that would best suit the needs of the clients.The company might try to add value to the various products that they aim to introduce to theexisting as well as the potential customers of the company. In order to do so the companymight conduct the needed surveys over the various platforms. The concerned managementmight introduce the creativity in the manufacture of the products that the company might planon launching in the concerned market4. The company might also help the potential clients to2 Confino J, 'Café Direct Seeks To Push The Frontiers Of The Fairtrade Movement' (the Guardian,2018) <https://www.theguardian.com/sustainable-business/cafe-direct-fairtrade-movement-coffee-competition>accessed 13 March 20183 Heerde, Harald J. Van, et al. "Price and advertising effectiveness over the business cycle."Journal ofMarketing Research50.2 (2013): 177-193.4 Zikmund, William G., et al.Business research methods. Cengage Learning, 2013.
CAFÉ DIRECT AND CAFÉ DIRECT CONSULTANCY – CASE STUDY3have a slight hint on the upcoming products. This might help in building the anticipation ofthe clients as well as opens an avenue for them to put in their suggestions on the issue5.The third challenge that the company has been facing is the fact that the company hasbeen functioning in the negative financial condition by the end of the year 2016 and might bestuck at the same area till the year 2020. In order to recover from this situation, the concernedmanagement might attempt to consider the reviewing of the measurements of the financialperformances of the company6. These financial measurements might help the concernedmanagement to gain insight into the facts pertaining to the coverage of the production cost,alignment of the overhead costs with the sales profit, the capability of the concernedcompany to sustain the operations based on the profits that they earn. The concernedmanagement of the company must tend to focus on the operations of all the departments thathas been functioning within the organization. It is advisable to develop the entire system ofthe organization in a systematic fashion from the initial days of the company. The earlyinvestment in the infrastructure might help the concerned organization to deal with theproblems that the concern might face in the later stages of its journey7. The concernedmanagement of the concern is advised to conduct an assessment of the employees at regularintervals in order to keep them motivated towards the betterment of the company. Theconcerned management of the concern is also advised to apply the appropriate strategies thatmight help them in the improvement of the financial performance of the company.Thus, from the above discussion it might clearly be observed that the company indiscussion needs to implement a few changes in the management and the operations of the5 Castellion, George, and Stephen K. Markham. "Perspective: new product failure rates: influence ofargumentum ad populum and self‐interest."Journal of Product Innovation Management30.5 (2013): 976-979.6 The Guardian, 'Cafédirect - Still Redefining Fair Trade' (the Guardian, 2018)<https://www.theguardian.com/sustainable-business/cafedirect-redefining-fair-trade> accessed 13March 20187 Ingenbleek, Paul, Ruud T. Frambach, and Theo MM Verhallen. "Best practices for new productpricing: Impact on market performance and price level under different conditions."Journal of ProductInnovation Management30.3 (2013): 560-573.
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