Having a good marketing plan is crucial for companies to succeed in today’s business world. One effective approach is to utilize the marketing mix or the four P’s of marketing. These four P’s include product, place, price, and promotion. Incorporating these elements into a marketing strategy ensures that each aspect is addressed, ultimately leading to a successful plan.
This paper aims to explore the four P’s in marketing and their application in the marketing plan of Dutch Bros Coffee. The following section provides a brief background of the company. Dutch Bros Coffee, founded in 1992 by Dane and Travis Boersma in Grants Pass, Oregon, has grown from its initial establishment in Oregon to expanding across seven states on the west coast (Dutch Bros Coffee, 2012).
This company operates in the retail customer service industry and is also involved in the coffee industry. Dutch Bros is a drive-through coffee shop that is known for its fresh coffee drinks and fast service. The product or service offered by the company is highly important, as it is tailored to meet the needs of the target customers (Quick MBA, 2010).
The primary focus of Dutch Bros is its coffee or beverages. The shops offer a variety of signature and off-menu drinks, available iced, hot, or blended. The company takes great pride in delivering high-quality drinks with efficient service. Since it operates as a drive through coffee shop, speed is crucial to meet customer expectations. Additionally, Dutch Bros also offers other products through select stores or online channels.
These products include clothing supplies and accessories. The second P of the marketing mix is the price, which refers to the price set by the company for selling the product to customers (Quick MBA, 2010). This price is determined by various factors, including the cost of raw materials used in production (Quick MBA, 2010). Additionally, competition can also influence the pricing strategy (Quick MBA, 2010). For Dutch Bros coffee, their beverages come in small, medium, and large sizes.
The prices for each of these sizes are $4. 25 for a small, $4. 75 for a medium, and $5. 25 for a large (Dutch Bros Coffee, 2012). These prices do include the tax as well. The idea that these prices have the tax included is a nice idea because it makes it easier to collect payment as well as customers will not be getting much change. Compared to the competitors these prices are very competitive. Each of these prices changes over time but try to stay competitive with the competitors out in the coffee atmosphere. The third P of the marketing mix is the place.
According to Quick MBA (2010), the marketing mix includes a company’s distribution location. Dutch Bros, a drive-through coffee company, has become one of the largest privately owned companies. It started in Oregon and has now expanded to seven western states: Arizona, California, Colorado, Idaho, Nevada, Oregon, and Washington (Dutch Bros Coffee, 2012). In total, there are more than 175 Dutch Bros Coffee shops across these seven states (Dutch Bros Coffee, 2012).
Stores in many states are situated near each other, offering customers a greater range of shopping choices and the convenience of easily moving between stores. The promotion aspect of marketing serves as a means of communication between companies and their current and potential customers, involving various ideas and strategies aimed at attracting business.
This specific P is crucial for attracting business because many people are attracted to companies with strong promotional efforts. Dutch Bros, although smaller than Starbucks, excels in promotion and consistently brings in new customers while retaining existing ones. Notably, Dutch Bros is renowned for its punch card system, where customers receive a punch on their card for every drink purchased. After accumulating 10 punches, the customer is rewarded with a free drink.
Dutch Bros differentiates itself from Starbucks by implementing unique ideas that attract customers. One such idea is the practice of offering promotions that Starbucks does not provide. Additionally, they have a promotion called double punch Tuesdays, where customers receive double the number of punches on their loyalty card for each drink purchased on Tuesdays. This significantly expedites the accumulation of punches, enabling customers to earn free drinks more quickly. Moreover, Dutch Bros adopts another effective communication method by collecting customers’ phone numbers, allowing the company to send weekly specials via text messages to enhance customer engagement and increase business.
The company utilizes several social media platforms including Twitter, Facebook, YouTube, and Foursquare as essential communication channels. These accounts not only help the company stay connected with customers but also support promotional efforts. By implementing such effective strategies, the company has gained a reputation for fostering customer loyalty and satisfaction. Ultimately, comprehending the four P’s of marketing is imperative in devising a prosperous marketing strategy for any organization.
Moreover, it is crucial to consider the application of each of these P’s in a real-life organization. All of these P’s have a shared goal: developing ideas based on the target market that the company wants to attract. If a company, such as Dutch Bros, effectively uses this marketing mix, it will establish a strong foundation for its marketing plan. Furthermore, this will improve the likelihood of achieving success in marketing and create more business opportunities.
Increasing business and generating higher profits greatly enhance a company’s chances of success in the industry. Ultimately, most companies aim to make money as their primary objective.
References
- Dutch Bros Coffee. (2012). About Us Our Company. Retrieved from http://dutchbros. com/AboutUs/
- Dutch Bros Coffee. (2012). Dutch Bros Coffee. Retrieved from http://www. dutchbros. com
- Dutch Bros Coffee. (2012). Locations. Retrieved from http://dutchbros. com/Locations/
- Quick MBA. (2010). The Marketing Mix (The 4 P’s of Marketing). Retrieved from http://www. quickmba. com/marketing/mix/
