BU1108: Consumer Behavior & Marketing Strategy for Paramount Cafe

This report provides a comprehensive analysis of the consumer market for Paramount Cafe, an Australian cafe known for its quality coffee and unique approach. The analysis includes a SWOT analysis identifying the cafe's strengths, weaknesses, opportunities, and threats, as well as an examination of the cultural environment and the threat of substitutes. The report also details the cafe's target market, marketing strategy, and positioning, including a perceptual map and performance matrix. The goal is to assess the cafe's effectiveness in the competitive market and identify areas for improvement. Desklib offers a wealth of similar student-contributed assignments and study tools to aid in academic success.

RUNNING HEAD: Managing Consumer Market 1
Paramount café PROJECT
Managing Consumer Market
(Student Name)
1/24/2019

Managing Consumer Market 2
Table of Contents
Part 1..........................................................................................................................................3
1. Introduction.........................................................................................................................3
2. Situation Analysis...............................................................................................................3
2.1 Background of Cafe..........................................................................................................3
2.2 SWOT Analysis................................................................................................................3
2.3 Marketing Environment....................................................................................................4
2.4 Target Market, Strategy and Positioning..........................................................................5
2.4.1 Target Market............................................................................................................5
2.4.2 Target Market strategy...............................................................................................5
2.4.3 Perceptual Map..........................................................................................................5
2.4.4 Performance Matrix...................................................................................................6
2.5 Sustainable Marketing......................................................................................................7
3. Conclusion..........................................................................................................................8
Part 2........................................................................................................................................10
Section 1...............................................................................................................................10
Question 1.........................................................................................................................10

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Question 2.........................................................................................................................10
Question 3.........................................................................................................................10
Question 4.........................................................................................................................10
Question 5.........................................................................................................................10
Question 6.........................................................................................................................10
Section 2...............................................................................................................................11
References................................................................................................................................12

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Part 1
1. Introduction
A service is any act or performance that one party can offer to another which is
essentially intangible as well as does not result in the ownership of anything. The production
of such services may or may not to be tied to a physical product (Martin-Rios, Demen-Meier,
Gössling & Cornuz, 2018). Moreover, the marketing of services plays a prominent role in the
market. It can be defined as the marketing of processes or activity rather than the objects or
any other tangible products (Marriott, Schilling & Gravani, 2018). As the services are
intangible in nature, they faced a host of services marketing problems which are not
adequately solved by the traditional products related marketing solution (Davis, Lockwood,
Alcott & Pantelidis, 2018). Paramount Café Project is one of the leading cafés in Australia
that provides a variety of services to their consumers.
In the following part, there will be a detailed discussion about the services provided by
Paramount Café Project as well as analysis of environmental will be done to analyze the
effectiveness of the café with their certain weaknesses.
2. Situation Analysis
2.1 Background of Cafe
Paramount Café Project was established with the partnership between Jin Ng if
Paramount House, Russell Beard of Reuben Hills and Mark Dundon of Seven Seeds. The
café has opened in the year of 2013 in Surry Hills, Sydney. They have introduced a variety of
styles as well as approaches in quality coffee. The café is a collaborative project to look at
coffee differently in the environment of café. The main aim of the café is to learn and explore

Managing Consumer Market 5
the roasting style of coffee, brew methods, as well as coffee/café approach. The PCP is a
cafe that majorly focuses on unique, delicious food as well as exceptional consumer services.
They emphases on the quality of the coffee as well as paying the tribute to all the hard work
they take to get the coffee in the cup. They have created the base of loyal and faithful
consumers by serving high quality of products at a competitive price. PCP proposed a variety
of products such as coffee and espresso to their consumers that belong from superior grown
imported coffee beans. They are serving all the needs of the consumers as well as each coffee
are made uniquely and would able to see for smallest details (Paramount Cafe Project, 2018).
2.2 SWOT Analysis
Strength
 Paramount Café Project caters their services through innovative manner. they have a
unique style and approaches to target their consumers
 The café serves a variety of products to their consumers in an effective manner. They
have a variety of coffee in which they are specialized.
 The quality of products, as well as services, is at a high level that made them
competitive in the market.
Weakness
 The café suffering from the issue of retaining the employees. The permanent
employees are not been tackled by the café in an effective manner. They have a lack
of permanent employees that force the café to hire more part-time employees in their
café.
 The prices of their product are high in comparison to their competitors that create a
risk to the café at a greater level.

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Opportunities
 The tax rate of Australia is very low that gives an opportunity to the café to expand
their business in other areas of Australia in a more effective manner.
 The population of Australia is keen for the coffee. The percentage of consumption of
coffee is high that give an opportunity t the café to increase their consumer level
targeting for their products.
Threat
 The high competition in the market is the biggest threat to PCP. The major
competitors are Café in Time, Starbucks, and Café Sydney.
 The pressure of innovation in the market made them tough to survive in such a
competitive market (Phadermrod, Crowder & Wills, 2019).
2.3 Marketing Environment
Culture environment
The environment of culture mostly depends on the institution as well as forces that
affected the basic value of the society, their behavior, and perceptions. The change in the
Australian culture, as well as the emergence of varied sub-cultures, has a great impact on the
cafes market in Australia. The population of Australia is more than ever concerned about
their health. There is a wealth of research that is linked with caffeine to many infirmities that
increase the demand for the healthy alternative that is decaffeinated products (Andrew &
Ritchie, 2017). There is also a big threat of the consumers that they could switch from the
coffee products all together with another beverage such as tea that is well known for their
positive health benefits. Moreover, the market of all type of the coffee is aiding for the ear of
coffee in Australia. The individuals in Australia are not only drinking more coffee but they

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are becoming more coffee connoisseurs (Shah & Barker, 2017). The coffee from them is no
just longer a product but it is also a means of self-expression. The people are buying more
exotic coffees in which they are more emphasis on the quality. It would have a positive
marketing implication on the café as the concern towards the health force the café to
introduced innovative healthy coffees and item that are free from caffeine (Michael, Wien &
Reisinger, 2017).
Threat of Substitutes
In the competitive market, there is a huge threat of substitute that may impact on the
ability of café performance. The café is majorly known for their coffee and due to the
concerning behavior of the people in Australia may force them to switch to the other
substitute drinks. The substitute’s drinks include tea, soft drinks, beer, wine and so on that
may affect the demand of the consumers towards coffee. It creates an issue of choice among
the individuals which could be a risk to the café. It would have a negative implication on the
café. PCP need to more focus on their quality of products that would force the people to
retain as consumers of the cafe (Hilal & Mubarak, 2016).
2.4 Target Market, Strategy and Positioning
2.4.1 Target Market
The cafe has target demographic segment to attract their consumers. The economic
condition of Australia is positive which enhance the purchasing power of their individuals
(Nagle & Muller,2017). These are explained through their different variables that are
explained in below table:
Age Young generation between the age of 15-36

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Gender Both men and women
Income Average income level between $20000 - $40000
Religion Cover all type of religion
Lifestyle The people who are health conscious and love to try new products
PCP will target the consumers between the ages of 15-36 due to their more spending
power than other age groups of the segment. The café target both genders rather than
targeting specific majorly couple will be the target for them due to the reason they need space
for quality time spending. The price of the products is normal, therefore, the income level
with a range of $20000 to $ 40000 are major target segment for them due to the reason the
population of such income level is high. The health conscious people are the main target for
the café because they will cater quality and healthy food that help them in reaching to the
maximum consumers (Hajra, 2017).
2.4.2 Target Market strategy
The café has used concentrated marketing strategy in which they directing their
marketing efforts to a single segment of the market. Several segments have been identified
but the café may not serve all of them. Some may be unattractive or out of line which
business strength of café. They have concentrated on a particular segment of the market to
target in a more effective manner. There is a certain reason for selecting such a strategy by
the café. The main reason behind adopting such strategy is that

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 They think that targeting a particular segment of the market is more effective than
targeting the whole market.
 The café has opened at a small level and they have not spent their business in another
market that limits them to concentrate on a particular segment rather than more
segments of the market.
 The café has limited resources in their account that force them to adopt such a
strategy in the market (Morgan, Whitler, Feng & Chari, 2018).
2.4.3 Perceptual Map
The consumers are attracted towards low prices products that force the cafes to come
with innovative products with low price. The consumers do compromise with the quality
which increases competition among the cafes to cater high-quality products at a reasonable
price. PCP is one of the leading cafés in Australia but they face huge completion from their
competitive cafes. It will explain through the perceptual map (Iacobucci & Grisaffe, 2018).
High Quality
 Single O Surry Hills,
 Paramount Café Project Starbucks
Low Price High Price
Kikko Cafe Café Sydney
Low Quality

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Starbucks is one of the famous brands in café that are expanding all over the globe.
Most of the consumers are attracted towards Starbucks due to the reason of their quality as
well as innovative products. The consumers who prefer quality products majorly prefer
Starbucks therefore; Starbucks is the major competitor of PCP.
Café Sydney caters low quality of products at a higher price that creates low
completion for PCP. However, their attractive ambiance and services force the consumers to
attract towards such café.
Singe O Surry Hills is one of the major competitors of PCP due to the reason they
cater high quality of products at a lower price than PCP that force the PCP to lowering their
price to compete such competitors.
2.4.4 Performance Matrix
Attributes to Improve
 They need to be more
innovative
 Retaining Employees
 Control over their Cost
Attributes to Maintain
 Quality of Service and
Product’
 Variety in Products
 Their Goodwill
Attributes to Maintain
 Ambiance
 Parking Area
Attributes to deemphasize
 Utensils used in Café
 Extra Service provided
such as WIFI
Attribute to improve
Low
Performance
High
Performance
High Importance
Low Importance

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There is a high need to improve their innovative ideas due to the huge competition in
the market and need to concentrate on retaining the employees that would able to give them
proper training. The café also need to control over their cost to serve their products at a
reasonable price.
Attribute to maintain
The café is serving quality products to their consumers with effective and quick
services that made them café for competitive in the market. The café serves a variety of
products at a normal price they need to maintain such quality that would help in building their
image in the market.
Attribute to maintain
The café has not attractive ambiance which is not more important for them due to the
reason consumers majorly prefer quality products. They only need to maintain such a thing
and need to manage the parking area.
Attributes to deemphasize
The utensils used by the café in serving are very attractive as well as they provide
service of WIFI which is not so important to attract the consumers. Therefore, they can
control over such expenses and can invest such amount in an important area (Sundaram et al.,
2015).
2.5 Sustainable Marketing
There are certain sustainable marketing that is adopted by Paramount Café Project
that is explained in below points:

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Buy locally in bulk
PCP majorly purchases their raw material from local suppliers and they created a
platform for establishing the connections and relationship with local and international
roasters, brewers and farmers. It gives income to such group of people that help in
c=increasing the GDP rate of the country in an effective manner.
Cook what is in the season
They keep their café more sustainable by keeping their menu seasonal. The team of
the café changes the menu four times a year that is one for each season and rotates in tow
new dishes in every six weeks to accommodate the ingredients with the short growing season
(Charter & Polonsky, 2017).
Avoid usages of Plastics bags for delivering
They avoid usages of plastics bags in delivering their products that help in protecting
the environment in a more effective manner as well as they have started using plants as a
theme that attract the consumers, as well as they, have taken smaller steps in preventing
environments.
Utilize environmental friendly Material
While looking at the products of sustainable-marketed, consideration should be made
by sourcing of materials, uses of ingredients as well as manufacturing of products. Therefore,
PCP using natural as well as organic materials, utilizing environmentally friendly products,
sourcing local and through fair trade, as well as using the lean serving of products with
sustainable distribution methods which help in minimizing the carbon footprint of PCP.
Understanding the market