Worried about their ability to stay in business given the small number of customers who walk through their doors each day.
Out of 67%of shopper knows of Hugga Café compared to 52% of Café bean
Although 53% can relay the correct position of Hugga café while 86% of customers knows of café beans location, this provides marketers a hint that the location of café bean is within the food court or close by as oppose to Hugga which may be located in a location where customer are less likely to stop for a coffee.
Evaluation of alternatives
With the generated report Hugga café has 14% positive review over café bean
Both café pricing is similar judging by the similar percentage generated by the report
Satisfaction level generated by the report shows that Hugga café have better customer service, as 92% of customer are willing to return as oppose to the 78% generated by café bean.
Recommendation towards friends and family are relatively low, this shows that there aren’t any rewards program for bringing a friend or promotional programs that gives customer need to return.
Café Hugga, main problem is the location disadvantage, reports show that majority of the people when asked for the specific location of the store, close to 50% doesn’t know its exact location. This can cause “strangers” and “Barnacles” to source out another café that’s close by and more convenient to them at time of shopping. Café Hugga can implement a reward system and possibly a loyalty card program, where they can charge customers a lower fee for their meals if they pay in advance, a pre-loaded account, as for the reward system Hugga can issue returning a free upgrade or possible free coffee after a certain amount of purchases have been made.
Meanwhile, Café bean has a strong location within the shopping complex. The main concern for café bean is that they’re not as well-known compared to Hugga, from reports it has shown that review from customers after receiving service from this café aren’t as high compared to Hugga, this may be due to bad customer serviced provided by the café, also café bean has a lower rating for post purchase evaluation. Strategies for café bean to improve profitability must first be within the café itself, improvement of customer relationship is the first step,