A Detailed Report on Cibo Espresso's Marketing Environment

This report provides a comprehensive analysis of Cibo Espresso's marketing environment. It begins with a brief background of the company, followed by an internal analysis, highlighting its strengths, such as quality food and drinks and strategic store locations, and weaknesses, like employee retention issues and challenges in menu innovation. The report then delves into the micro and macro environmental factors influencing Cibo, including customer preferences, competitive pressures from major chains like Starbucks, and the impact of pricing strategies. The analysis covers customer loyalty, market competition, and the company's use of various marketing strategies such as advertising and promotional activities. The report concludes by emphasizing the importance of balancing innovation with consistent service delivery to ensure sustained business growth in a competitive market. The report references several sources, including industry reports and academic journals, to support its findings.

Running head: CIBO’S MARKETING ENVIRONMENT
A Comprehensive Analysis of Cibo’s Marketing Environment
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1CIBO’S MARKETING ENVIRONMENT
Table of Contents
A brief company background..........................................................................................................2
Internal analysis of the company.....................................................................................................2
Micro and macro environmental analysis of the company..............................................................3
Conclusion.......................................................................................................................................4
References........................................................................................................................................5

2CIBO’S MARKETING ENVIRONMENT
A brief company background
Founded in the year 2000 in Adelaide, South Australia Cibo Espresso commonly known
as Cibo enjoys a significant presence in Adelaide and few other parts of the country. In Adelaide
particularly, the brand loyalty which Cibo enjoys is even better than the local outlets of major
change such as Starbucks, Hudsons Coffee, etc. (Ciboespresso.com.au 2020).
Internal analysis of the company
Strengths
Cibo offers quality food and drinks to customers. It is one of the reasons why customers,
especially in Adelaide, is loyal to this company. Cibo needs to use different marketing strategies
to be consistent in living up to the expectation of customers. They also focus more on store
location to make it easily accessible to the customer. They are also a quality supplier of the
coffee beans, which helps them gain additional income. Cibo does not hesitate in experimenting
with the new technology as part of its continuous improvement process (Ciboespresso.com.au
2020).
Weaknesses
Employee retention is one of the major problems for the company. It affects their
budgeting allocated to new projects (Knox 2016). Experimenting with the menu to effectively
fulfill the changing food demands can create problems for the company. They might not be able
to meet the demand and may end up affecting their overall business profit.
Opportunities

3CIBO’S MARKETING ENVIRONMENT
One of the opportunities is the rate of production. By speeding their kitchen activities
they can serve foods on the table in quick times. Constantly working on the weak areas can
explore many new and unexplored opportunities to the company (van Assen 2020).
Threats
The biggest threat to the company is huge market competition. Major chains such as
Starbucks can anytime affect the business with their innovation prowess and ability to spend in
bigger projects (Ibisworld.com.au 2020).
Micro and macro environmental analysis of the company
Customers especially in Adelaide like the services and the offerings of the company.
Cibo reaches to its customers not just physically in stores but through advertisement also. The
highly competitive nature of the market has forced them to spend significantly on advertisement
strategy (Ibisworld.com.au 2020). Cibo is hugely influenced by individuals' preferences of coffee
and the food found in the store. A bad customer review for a product would mean either
modifying it or removing the product from the menu list (Basari and Shamsudin 2020). Cibo is
forced to use its innovating credibility, which is not safe either.
Cibo has to adjust the pricing of its food and coffee according to the demands of the
consumers (Filimonau and Krivcova 2017). It is recommended for the company to have a good
analysis of their customers and their spending capability.
Before opening a new store, Cibo analysis the size of the population, the density of the
area and the climate of the place. The company also gives discounts to those customers who are

4CIBO’S MARKETING ENVIRONMENT
budget conscious. According to the findings of Salazar-Ordóñez et al. (2018), Cibo differentiates
its products based on usage rate and patterns, customer loyalty and knowledge.
Cibo uses various promotional strategies such as advertising, personal selling, public
relations, direct marketing and sales promotion.
Conclusion
Cibo should learn how to keep a balance between innovation and the consistency of
service delivery. Innovation in the food menu and other areas of the business are the only things,
which significantly influence business performance. The use of innovative strategies will ensure
that the maintain good business growth despite facing tough competition from the rivals.

5CIBO’S MARKETING ENVIRONMENT
References
Basari, M.A.M.D. and Shamsudin, M.F., 2020. Does Customer Satisfaction Matters?. Journal of
Undergraduate Social Science and Technology, 2(1).
Ciboespresso.com.au 2020. CIBO Espresso. [online] Ciboespresso.com.au. Available at:
<https://www.ciboespresso.com.au/> [Accessed 16 April 2020].
Filimonau, V. and Krivcova, M., 2017. Restaurant menu design and more responsible consumer
food choice: An exploratory study of managerial perceptions. Journal of cleaner production,
143, pp.516-527.
Ibisworld.com.au 2020. Market Research Reports & Analysis | Ibisworld AU. [online]
Ibisworld.com.au. Available at: <https://www.ibisworld.com.au/industry-trends/market-research-
reports/accommodation-food-services/cafes-coffee-shops.html> [Accessed 16 April 2020].
Knox, A., 2016. Coffee nation: an analysis of jobs in Australia's café industry. Asia Pacific
Journal of Human Resources, 54(3), pp.369-387.
Salazar-Ordóñez, M., Rodríguez-Entrena, M., Cabrera, E.R. and Henseler, J., 2018.
Understanding product differentiation failures: The role of product knowledge and brand
credence in olive oil markets. Food Quality and Preference, 68, pp.146-155.
van Assen, M.F., 2020. Training, employee involvement and continuous improvement–the
moderating effect of a common improvement method. Production Planning & Control, pp.1-13.