The Tasty Co.

Coffee and Good Food

Presented to the Faculty of the Business Administration Department

In Partial Fulfillment of the Requirements for the

Course Strategic Management

MERCY A. PAJARON

March 2024
TABLE OF CONTENTS

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INTRODUCTION 3
SHORT DESCRIPTION OF THE BUSINESS ORIENTATION TOWARDS THE MARKET
4
SHORT DESCRIPTION OF THE BUSINESS 4PS 4
 Product 5
 Price 5
 Place 6
 Promotion 6
HOW MARKETING ENVIRONMENT FACTORS OF SWOT ANALYSIS AFFECT THE
BUSINESS 4PS 6
INTERNAL BUSINESS ANALYSIS 7
EXTERNAL BUSINESS ANALYSIS 8
MACRO ENVIRONMENT 8
PEST Analysis
 Political Forces 9
 Economic Forces 9
 Social Forces 9
 Technological Forces 10
MICRO ENVIRONMENT 10
 Company 10
 Suppliers 10
 Competitors 11
 Customers 11
CONCLUSION 12
REFERENCES 13
APPENDIX 14
SWOT Analysis
 Internal Analysis
 External Analysis

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INTRODUCTION

Coffee is embraced and made unique by each nation and society. The Turks, for example,
grind it to a fine powder and brew it unfiltered, yielding a rich, powerful drink with the grounds
at the bottom, ready to reveal your fortune. This enigmatic practice is as much about bonding as
it is about brewing. If you travel to the Middle East, you will discover coffee flavored with
cardamom, a fragrant tribute to ancient trade routes and the region’s rich history with spices.
Italy gave us espresso, a quick yet powerful shot that reflects the fast-paced liveliness of Italian
city life. And then there’s the Ethiopian coffee ceremony, a spiritual, communal experience that
represents respect and camaraderie.

Additionally, South Korea’s transition into a coffee-consuming powerhouse has resulted

in one-of-a-kind cafes, ranging from flower-filled to vintage record collections. The café culture
here is more than just the drink; it’s about aesthetics, experience, and making memories. This is
more than just a drink; it’s history, anthropology, and art in one cup. As we travel across
continents and civilizations, it becomes clear that coffee is valued, adapted, and celebrated in
countless, wonderful ways.

Coffee shops are more than just places to grab a quick caffeine fix. They serve as
community hubs, workspaces, meeting spots, and even as a comforting space to enjoy solitude.
The growth and popularity of coffee shops can be attributed to a combination of factors such as
quality of products, ambiance, customer service, and innovative offerings.

Nowadays, coffee beans have traveled across continents, changing not only cultures and
morning rituals, but also driving economies, spurring innovation, and birthing entire businesses.
From plantation economics in the past to today’s bustling café culture and specialized coffee
vocations, coffee’s business narrative is as diverse and dynamic as its flavor profiles.

The contemporary food and beverage industry is marked by a surge in coffee shops and
eateries, with The Tasty Co. being a notable player in the market. Tasty Co., renowned for its
quality coffee and delectable food, has carved a niche for itself in the industry, offering a unique
blend of taste and ambiance that caters to a diverse clientele.

The Tasty Co. Coffee and Good Food is a cafe chain that has been operating successfully
in the market for more than a year. This business is a remembered value that gives customers a
memorable experience that left an unusual moment. In this analysis, we will delve into the
company's marketing strategies by focusing on the 4Ps (Product, Price, Place, Promotion),
conducting a SWOT analysis, and examining the micro and macro environment factors that
influence the business.

SHORT DESCRIPTION OF THE TASTY CO. COFFEE AND GOOD FOOD

ORIENTATION TOWARDS THE MARKET

Coffee is a hot beverage that humans have been consuming for almost 500 years. This
drink is known and adored all over the world, and it represents an industry worth more than $100

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billion. With coffee being such an integral part of many people’s daily lives, it’s difficult to
foresee a future in which the coffee industry does not thrive.

The study found that most coffee shop customers expressed agreement with the choice
and decision in behaving. A stated results shows that 57.5% of consumers choose coffee shops
for affordable prices, high-quality coffee, and good taste. While, 55% buy coffee for its freshness
and variety of flavors. The external factors such as the culture, family, environment, and social
have a favorable impact on consumer behavior. Internal factors, on the other hand, such as the
age, education, jobs and status has negatively affect the behavior of coffee shop consumers but
not significantly. Therefore, internal factors and external factors with variable moderation of
coffee shop variables have a substantial impact on consumer behavior. (Nainggolan et al., n.d.).

The Tasty Co. Coffee and Good Food is known for its quality coffee and delicious food
offerings. The company has positioned itself as a quality café business that caters to customers
looking for a cozy and inviting atmosphere to enjoy their meals and beverages. The company
focuses on providing excellent customer service and creating a unique experience for its patrons.

The Tasty Co. Coffee and Good Food is located at Guanzon Street, J.Villahermosa
BLDG., Gingoog City that operates as a sole proprietorship and has been in the industry for more
than a year.

SHORT DESCRIPTION OF THE TASTY CO. COFFEE AND GOOD FOOD 4PS

The Tasty Co. is a renowned company that specializes in offering a delightful range of
coffee and good food products. Their 4Ps, which refer to Product, Price, Promotion, and Place,
play a crucial role in their marketing strategy. The company focuses on developing quality and
flavorful coffee blends, along with a diverse menu of delicious food items. They carefully
determine competitive pricing to ensure affordability without compromising on quality. Through
effective promotional campaigns, they create awareness and entice customers to try their
offerings. The Tasty Co. place its shop in the neighborhood of Guanzon St. which provide
customers a convenient access to their products. Overall, their 4Ps approach aims to deliver
exceptional taste, value, and convenience to their customers.

Product
The Tasty Co. Coffee and Good Food offers a variety of products. Starting from a wide
range of coffee blends, non-coffee, lemonades, and good food items such as sandwiches, all-day
breakfast, pastries and many more. The company prides itself on using fresh ingredients to create
delicious and healthy menu options.

Price

The pricing strategy of The Tasty Co. is competitive, with menu items priced slightly
higher than average to reflect the premium quality of the products. The business affordable and
quality prices is what makes it visible that makes them unique and distinct from other

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competition which determines its featured quality products. Its pricing strategy starts from 85
pesos and above that showcases a distinct pricing strategy based on its cost and quality.

Figure 1 shows the menu and price of the products offer

Place

The Tasty Co. Coffee and Good Food has been located in Guanzon St. J.Villahermosa
BLDG., Gingoog City. The business is visible in the neighborhood and it has a small place but
has a vibrant ambiance that makes it attractive to its customers. The company also cater online
ordering and delivery services to reach a wider customer base.

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 Figure 2 shows the location and physical shop of the business

Promotion

The Tasty Co. uses a mix of traditional and digital marketing strategies to promote its
brand. The company engages in social media marketing such as Facebook and Instagram to
increase brand awareness and attract new customers. Traditionally, promote its business by
joining flea-alike market in special events or holidays to have an exposure.

HOW MARKETING ENVIRONMENT FACTORS OF SWOT ANALYSIS AFFECT

THE TASTY CO. COFFEE AND GOOD FOOD 4PS

The marketing environment factors of SWOT analysis can have a significant impact on
The Tasty Co. Coffee and Good Food 4Ps. The SWOT analysis of The Tasty Co. Coffee and
Good Food reveals that internal strengths such as a good customer service and quality products
positively impact the 4Ps. External opportunities such as expanding their business to a more
visible place and introducing innovative menu items can further enhance the company’s
marketing strategies. However, internal weaknesses such as the small place they cater and
external threats such as increasing competition can pose challenges to the business.

Lastly, the strengths and weaknesses of the company’s internal environment can
influence the marketing mix elements. Additionally, the external factors can shape the
company’s product, price, promotion, and place strategies. By analyzing these factors, The Tasty
Co. can identify opportunities to capitalize on and threats to mitigate, ultimately enhancing its
marketing efforts and achieving a competitive advantage in the market.

INTERNAL BUSINESS ANALYSIS

The internal analysis of The Tasty Co. Coffee and Good Food highlights the company's
strengths and weaknesses that have an impact towards its marketing mix. The strengths of the
business are that The Tasty Co. offers high-quality coffee and food, which sets them apart from
competitors and attracts customers who value quality. Also, the company provides a wide variety
of coffee and food options, catering to a diverse customer base and increasing customer
satisfaction. The Tasty Co. has unique recipes that differentiate them from other coffee shops,
giving them a competitive advantage. Additionally, the business has established an online
presence through platforms like Facebook and Instagram, allowing them to reach a larger
audience, engage with customers, and build an online community.

The company's weaknesses include having a small place, high overhead costs, limited
reach and marketing disconnect. As a local business, Tasty Co. may have a limited reach

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compared to national or international chains which could potentially hinder their growth and
market share. Also, the pricing of The Tasty Co.’s products might be higher due to the focus on
quality, which could deter cost-sensitive customers. While the company has an online presence,
there might still be room for improvement in terms of effectively communicating and engaging
with the target market. And their physical shop also become one of their weakness as such that
their place is small and it is not more likely visible just like on a high traffic areas which can
cater to a more larger market and can attract potential customers.

The internal analysis of the business consisting the strengths and weaknesses play a role
in affecting the business’ marketing mix. So, by leveraging its strengths and addressing its
weaknesses, The Tasty Co. Coffee and Good Food can improve its marketing strategies and
enhance its competitive position in the market.

EXTERNAL BUSINESS ANALYSIS

The external analysis of The Tasty Co. Coffee and Good Food identifies opportunities
and threats that the business faces in the market and have an impact to its marketing mix. The
opportunities of The Tasty Co. Coffee and Good Food presents that The Tasty Co. can leverage
their existing online presence to further expand their reach and engage with customers. They
could consider utilizing social media platforms for targeted advertising and promotions. Also,
collaborating with local businesses or events provides an opportunity to increase brand visibility
and attract new customers. Additionally, with the growing trend of health-conscious consumers,
The Tasty Co. can explore offering healthy food options to cater to this segment and attract a
wider customer base. The business also can expand to a more visible place to attract more
customers to sustain and gain its market share. And leveraging the use of technological
advancements such as the adaptation of delivery services through platforms like Order It and
Express Bee as it allows the business to tap into the growing demand of online shopping and
enhances the convenience for customers and expands the customer base.

The company faces threats from increasing competition, changing consumer preferences,
and economic uncertainties. Competition from other coffee shops and food businesses in the area
poses a significant threat. Tasty Co. needs to continuously differentiate themselves through
unique offerings and exceptional customer service. Rapid changes in food and beverage trends
can pose a threat to Tasty Co.’s current offerings. They should stay updated with consumer
preferences and adapt their menu to meet evolving demands. And economic conditions can
impact consumer spending power, potentially affecting sales. It’s important for The Tasty Co. to
monitor market trends and adapt their pricing and offerings accordingly. Therefore, by
monitoring external factors and adapting its marketing strategies accordingly, The Tasty Co. can
mitigate risks and capitalize on opportunities in the market.

MACRO ENVIRONMENT

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 Various external factors contribute to the company’s success, as well as can act as a
potential threat to its growth. The Tasty Co., a coffee and good food business, operates within a
macro environment that is influenced by various factors that is the PEST Analysis and
considering the external factors have an impact to the company and its continued success.

PEST Analysis

Political Forces

The political environment can impact The Tasty Co.'s business operations through
regulations on food safety, labor laws, and taxation policies. The company must stay informed
about political developments that could affect its operations and adjust its marketing strategies
accordingly. The business is also compliant with the government rules and policies as they have
business permits, license, and able to have legal papers that authorized them in operating their
business.

Economic Forces

Economic factors play a crucial role in Tasty Co.’s operations. The overall economic
conditions of the country or region in which the business operates can greatly influence
consumer spending patterns and purchasing power. High inflation rates can increase the cost of
ingredients, labor, and other operational expenses, affecting the profitability of the business.
Moreover, changes in disposable income levels can impact customer spending on coffee and
food, as consumers may adjust their budgets accordingly. Through the economic forces it can
influence The Tasty Co.'s pricing strategy and customer demand. Therefore, by monitoring
economic trends and adjusting its pricing and promotional strategies, the company can respond
effectively to changes in the market. And it has a great impact to the business as it serves as the
basis for making its availability in the market, the way the business operates offering a quality
product and undergo a price increase as the business is being affected by the inflation times.

Social Forces

Social factors also have a significant impact on The Tasty Co.’s business. The company
needs to stay attuned to changing consumer preferences and trends. This includes understanding
and addressing health-conscious choices, sustainable sourcing, and other emerging food and
beverage trends. Demographic shifts, such as age, income, and lifestyle of the target market, also
play a role in shaping customer preferences and menu choices. Additionally, cultural factors
related to food and beverages influence customer preferences and may require Tasty Co. to tailor
their offerings accordingly. Moreover, social trends can really influence The Tasty Co.'s product
offerings and marketing messages. By aligning its products and promotions with social trends,
the company can attract and retain customers who value these attributes.

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Technological Forces

Technological factors are key drivers of change in the industry. Technological

advancements in online ordering, mobile payments, and social media marketing can provide
opportunities for The Tasty Co. to enhance its customer experience and reach a wider audience.
By investing in technology and staying abreast of industry trends, the company can improve its
marketing strategies and stay competitive in the market. The business enables its investment by
making their product availability in online ordering and delivery services through platforms. The
use of this technological forces makes the business being aware of the current trends and able to
grow competitively. And the automation in the kitchen or point-of-sale systems can improve
efficiency and reduce costs. Furthermore, data analytics tools can provide valuable insights into
customer preferences, optimize inventory management, and support data-driven decision-
making.

By considering and adapting to these macro-environmental factors, Tasty Co. can

effectively navigate the external environment, mitigate risks, and capitalize on opportunities.
Staying informed about political, economic, social, and technological trends will enable the
company to make strategic decisions that align with market demands and customer preferences,
ultimately ensuring its long-term success in the coffee and food industry.

MICRO ENVIRONMENT

The micro environment refers to the forces that are close to the company and affect its
ability to serve its customers. It includes the company itself, its suppliers, the competition and the
customers.

Company

The Tasty Co. Coffee and Good Food's internal resources, capabilities, and culture play a
crucial role in shaping its marketing strategies. By fostering a customer-centric culture, investing
in employee training, and continuously innovating its products and services, the company can
strengthen its competitive position in the market. The business is a customer-centric type for they
cater to have a fully attention towards its customers through giving a good customer service.

Suppliers

The Tasty Co. Coffee and Good Food relies on suppliers for fresh ingredients, packaging
materials, and other resources essential to its operations. Also, the availability, quality, and cost
of ingredients, coffee beans, and other supplies from suppliers can impact Tasty Co.’s product
offerings, pricing, and overall profitability. Building strong relationships with reliable suppliers
is essential for maintaining consistent quality and managing costs. By maintaining strong

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relationships with suppliers, negotiating favorable terms, and ensuring product quality and
consistency, the company can support its marketing strategies and meet customer expectations.

The suppliers of the business comes distinctly as they get fresh vegetables and meats
from the market, while giving a quality focus for the main ingredients, the coffee which is
supplied from CDO.

Competitors

The competitive landscape in the cafe industry poses challenges and opportunities for
The Tasty Co. Coffee and Good Food. By analyzing competitors' strengths and weaknesses,
identifying market trends, and differentiating its products and services, the company can develop
effective marketing strategies to attract and retain customers.
The Tasty Co. Coffee and Good Food have a variety of competitors offering similar and
distinct type of products, however there’s always a hidden uniqueness from its form. Among the
competitors of The Tasty Co. are the Kofi Bai Café + Kitchen located at Guanzon – Veterans St.,
Gingoog City is the cozy café + kitchen that provide variety of great coffee and delicious meals
to families and young professionals in a comfortable environment. We also have the Cafea Haus
located at 624 Guanzon Mendoza St., Gingoog City that provide customers with the finest
coffees alongside exceptional service. And a lot of competition in the market, that’s why The
Tasty Co. operates as an affordable and quality products and prices that suits its quality and
value that customers will love especially the coffee lovers. The business will tailor its marketing
strategies to stay alive and competitive in the market.

Customers

The customer base of The Tasty Co. plays a crucial role in its success. Understanding the
customer preferences, needs, and behaviors is essential for The Tasty Co. Coffee and Good Food
to develop successful marketing strategies. By conducting market research, collecting customer
feedback, and personalizing its offerings, the company can create a unique and engaging
experience for its patrons.

The Tasty Co. Coffee and Good Food has a wide reach of customers especially targeting
those customers who are a coffee lover and has an inspiration in international meals such as
inspired Korean foods.

CONCLUSION

In conclusion, The Tasty Co. Coffee and Good Food's marketing strategies are influenced
by a combination of internal and external factors. By analyzing the 4Ps, conducting a SWOT
analysis, and examining the micro and macro environment, the company can identify
opportunities for growth, mitigate risks, and enhance its competitive position in the market. By
continuously monitoring market trends, adapting to changing consumer preferences, and
innovating its products and services, The Tasty Co. can sustain its growth competitively in the
cafe industry.

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 Additionally, it would be good for the business sector to examine these factors when
addressing the issue. Personally, the micro and macro environments are highly important to be
manage in order to measure the company’s success as well as its efficiency. The Tasty Co.
Coffee and Good Food has been in the cafe and food industry for years because the business
precisely applies all the essential matters.

REFERENCES

Bertinetti, R. (2023, October 19). The evolution of coffee culture: From bean to cup to
lifestyle. Hospitality News & Business Insights by
EHL. https://hospitalityinsights.ehl.edu/coffee-culture

Nainggolan, S., Kernalis, E., & Carolin, D. Z. (n.d.). Analysis of Factors Affecting the Behavior
of Coffee Shop Consumers in Jambi City. Randwick International of Social Science Journal,
3(1), 53–60. https://doi.org/10.47175/rissj.v3i1.369

Bush, T. (2023, June 1). PESTEL analysis of the coffee industry. PESTLE Analysis.
https://pestleanalysis.com/coffee-industry-pestel-analysis/amp/

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APPENDIX

SWOT Analysis

Internal Analysis

Strengths Weaknesses

 Affordable and Quality Products  Small Place

 Good Customer Service  High Overhead Costs
 Unique Recipes  Limited Reach
 Online Presence  Marketing Disconnect

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 External Analysis

Opportunities Threats

 Leveraging Online Presence  Increasing Competition

 Expanding their business to a more  Changing Consumer Preferences
visible place  Economic Uncertainties
 Delivery Services
 Introducing new menu items
 Forming strategic partnerships

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