The beans are then collected and distributed to the coffee mills where the coffee beans are grinded and roasted so It would be ready to get packaged. This Is part of the sorting process of Intermediary. Cutbacks' professional coffee tasters may taste up to 800 cups of coffee a day. This will ensure the coffee is up to high standards for it to be able to be sold. To make sure that customers do not get bored of the same drinks and layout, the business has to respond to the customer needs. Cutbacks agreed to a partnership with Apple to be able to sell music as part of the fee house experience.
Therefore, when customers come in to buy coffee, they're also being able to purchase music as well as receiving a card every Monday which allows downloading a particular song for free. Cutbacks is aware that more and more people are likely to have an Phone, therefore when customers purchase coffee, they would happily accept the voucher to be able download free music on tunes. Furthermore, Cutbacks continuously add new flavors to the menu to be able to provide the customers with new unique products especially during festive seasons. For example during autumn/welter seasons, Cutbacks launches limited edition coffee flavors.
These Include pumpkin spice latte, cinnamon and nutmeg. These will attract the customers in coming to the retail store more often for them to be able to try new flavors, but also to attract new potential customers. To be able to understand and be Informed of what flavors the customers would Like to see on the menu, the business carries out the market research. For example, Cutbacks would provide samples of different coffee flavored drinks that may feature during a reticular season and the customers would have to decide what flavor they enjoy the most. The samples consisted of eggnog latte, gingersnap latte and pumpkin latte.
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However, this may be a disadvantage due to high costs. The business would have to pay extra money to be able to get the ingredients to make the limited edition drinks. This may include asking the suppliers to provide them with ingredients such as cinnamon and pumpkin spices. To be able to satisfy different range of customers, Cutbacks also provides different types of coffee and coffee beans to purchase on a daily basis. That includes De-cafe products, roasted, rich and unreasoned. This allows the customers to be able to choose from a range of coffee products.
On the other hand, this will also cost extra for the company as they have to make sure that the distribution centers provide all of the different types of coffee beans. There is a great competition between Cutbacks and other coffee retailers such as Costa. The Impact that competition would have on Cutbacks is that they would have a competitive 1 OFF different flavors of coffee that other retailers do not have such as Pumpkin Spice Latte. Since Cutbacks goods are sold in various locations the advertising varies which means customers would be informed about the goods using different methods.
For example, Cutbacks branches would advertise their goods and offers through social media such as twitter or regular emails to those customers that are registered, informing them about the latest offers within the branch. Whereas supermarkets like Tests would advertise their offers on Cutbacks through TV adverts to let a wider range of audience about the sales and offers such as buy one, get one half price. This ivies an advantage to the company as those that do not use internet will find out about the offers through TV adverts.
This will also attract new potential customers as they are likely to try new products if there are offers on them as customers are able to purchase it for cheaper in case they're not satisfied with it in the end. Furthermore, supermarkets advertise Cutbacks goods without being paid for the company; this means that the company does not need to pay any extra money. A positive advertising increases sale for both Cutbacks and the supermarket and that is done y informing about the offers as it attracts the customers more. Cutbacks suppliers are 'Arabica coffee' who grow their coffee beans in Brazil, Vietnam and Colombia.
The company uses 'C. A. F. E Practices' to make sure that high quality coffee beans are produced and also to promote healthy relationships with farmers and communities. This is an advantage to the business as it promoted ethics and reputation of the business as well as making sure that the coffee beans produced are high standard. This would attract the customers to purchase their goods as they are informed and ware that the coffee is produced and delivered in a moral manner. However, having suppliers may have a disadvantage for the business and its customers and it is the cost. The average costs to distribute from the suppliers to the distribution centers for the next six years will be $352,041 ,433. 00' -http://www. Geopolitical. Com/ 310/07_Projectionist's_billycan_Starbucks20Coffee20Report. PDF This means that if the business has to pay a generous amount of money to the suppliers to be able to receive the goods, the business will increase the cost of the goods itself to be able to sake up for the lost money. Furthermore, to be able to ship the Cutbacks goods, it costs $0. 77 per pound whereas truck deliveries cost $0. 8. This is an advantage for the company as many of their branches are located overseas so to be able to distribute the goods from America to Europe, ships would have to be used meaning the company would have to pay less than they would if they used trucks to deliver overseas. However, trucks would also have to be used to be able to deliver coffee to the locations that are near the distribution centers that are located in Nevada, Washington and Pennsylvania. Cutbacks uses different delivery suppliers to provide different supermarkets with their goods.
These include Green Mountain Coffee Roasters, Kraft Foods and Costa Inc. To be able to have agreements with different delivery companies, allows the goods to be distributed to different locations as different companies have connections and agreements with different businesses. Therefore it allows Cutbacks goods to be sold in variety of locations, allowing the customers to have easier access. Cutbacks also uses number of different suppliers thin I-J to provide certain products to the Cutbacks retail stores that are located croissants.
Furthermore, 7% of distribution consists of milk being distributed to the retail stores by I-J suppliers. This allows the company to work with different organizations to provide the customers with satisfactory goods. 'In 2011/12, Cutbacks purchased IEEE million of inputs of goods and services from domestic suppliers that consist of 970 different UK businesses'. Http://globalizes. Cutbacks. Com/assets/cb10bfc99d61483eb7b47e39f7e44f02. PDF This is an advantage as the company does not need to pay any extra money for transportation if the goods were transported from outside.
Furthermore, the company can get easy access to the goods which mean that the deliveries of milk and food will not be delayed. Also, due to the easy access the business will be confident and aware that the goods will not expire even if they have a short time of availability such as milk. Packaging is intermediary between producer and wholesaler as the product needs to be packaged before it goes off to the wholesalers. When coffee is cadged, it is stored in the distribution centers until they're collected by partners filling store orders.
The packaged goods can either be delivered to the wholesalers or directly to Cutbacks branches. When the goods go to the wholesalers they are then stored until they are taken to be delivered to retail stores such as Sad and Tests. In that stage assorting will be carried out and this is where orders a put in the right amount. Cutbacks operate their own distribution centers which are located in Washington, Nevada and Pennsylvania. Therefore, when coffee is traded on a agitated basis, the price of the coffee increases.
This is a disadvantage to the customers as the price of the good would increase meaning they would have to pay a higher price. Cutbacks packaging is used to reflect the artistry that goes into each coffee' and also to let customers inform about the differences for each coffee bag. Furthermore, to be able to help the environment, when customers buy coffee within the Cutbacks branches, they provide coffee with recycled cups and this is will appeal to ethically maintained customers and this is an advantages as the sales will increase.
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