Identifying Mr. Coffee’s product and service strengths, weaknesses, opportunities and threats are crucial in learning about the company’s internal capabilities as well as environmental or external factors. Through this SWOT analysis, we can better assess the brand’s image and values to appeal to the younger demographic.

References-

In order to help Mr. Coffee be one step ahead of their competition and attract the 18-24 demographic, we have found three ways for Mr. Coffee to improve. We believe Mr. Coffee can become more attractive to Gen Z by becoming more eco-friendly, creating a subscription service, and having a rewards program. From reviewing our survey results, 50.4% of our respondents stated that an eco-friendly company will influence them to buy a product (Group 1, 2022). Although we did not interview our peers about an eco-friendly company, we did find that Gen Z is focusing on purchasing products from companies that have a positive impact on the environment (Karidis,2017). Nowadays, the younger generation is prioritizing products from companies they believe are environmentally sustainable. Brands are beginning to advertise products that are attractive to customers due to the recycled materials they are using. A lot of the retailers are advertising their products online, which is where Gen Z spends most of their time. Gen Z is starting to influence the older generations to focus on sustainability when purchasing products. In a survey conducted, all generations are shown to spend an extra ten percent on sustainable products (Staff WWD, 2021). The impact Gen Z is having on many generations is extremely important for the economy and sustainability of the world.

To continue to influence the younger demographic, we believe having a subscription service for Mr. Coffee products and partners will influence purchasing decisions. In our survey, we received responses that 44.6% of our respondents are currently part of a subscription service. Even though only 44.6% of respondents are subscribed to subscription services, most Gen Z’s are starting to use subscription services more. Throughout our interviews, we asked some extra questions about subscription services and many of the respondents stated they would use a subscription service if the product tasted better than other competitors and was cost efficient. Subscription services are becoming one of the fastest growing trends (Mole 2019). Subscription services have grown over 100% each year in the past five years. Gen Z has grown up with a desire to consume everything on demand, and this has led to a tendency for them to avoid making a purchase unless they have already tried it first. This is why monthly subscription packages are great for Mr. Coffee (Mole 2019). Aside from having certain items, monthly subscription boxes are also useful in advertising new products because the company can put products that subscribers would typically not find in a store.

Lastly, we believe a rewards program would influence Gen Z to purchase Mr. Coffee products. Many people travel to Starbucks or Dunkin Donuts for their coffee rather than making one at home. The issue we face is these two thriving coffee shops offer a rewards program which influences consumers to continue to purchase coffee from them. Marketers are constantly creating new ways for consumers to purchase their products. In order to engage Gen Z, lots of advertising needs to be done through social media like Instagram, TikTok, Facebook, etc. Most of the time, Gen Z is using social media, which influences purchasing decisions. As Gen Z overtakes the Baby Boomers as the largest generation in the world, brands need to evolve their strategies to meet the needs of this new generation. According to a study, Gen Z spends over 4 hours a day on their mobile devices (Wise Marketing Staff 2021). Today, consumer loyalty programs are valued at around $2.5 billion, and the industry is expected to grow to $10 billion by 2027. However, to remain successful, brands need to expand their digital connections and find ways to connect with their consumers (Wise Marketing Staff 2021). We believe if Mr. Coffee created a rewards program, it would influence more people to make their coffee at home.

References-

Karidis, Arlene, (2017, December 5). Millennials Buy Products they believe are ecofriendly and companies are responding. Waste360. Retrieved April 14, 2022, from https://www.waste360.com/generators/millennials-buy-products-they-believe-are-ecofriendly-and-companies-are-responding

Mole, S. (n.d.). The rise of the subscription: How gen Z is changing the way we consume new products. Gen Z Insights – Presented by UNiDAYS. Retrieved April 14, 2022, from https://www.genzinsights.com/rise-of-the-subscription

Staff, W. W. D. (2021, December 6). Report shows influence of gen Z on other demographic groups. WWD. Retrieved April 14, 2022, from https://wwd.com/sustainability/business/first-insight-report-1235010394/

Wise Marketing Staff (2021, May 18). Winning young consumers with a relevant mobile loyalty program. The Wise Marketer – Featured News on Customer Loyalty and Reward Programs. Retrieved April 14, 2022, from https://thewisemarketer.com/channels/mobile-loyalty/winning-young-consumers-with-a-relevant-mobile-loyalty-program/