Few organizations have achieved the kind of success Cutbacks has; the marketing mix has contributed argyle to the growth of the company. Cutbacks website states that its customers are "people of diverse ethnic, income and age groups with varying tastes and interests" (Cutbacks, 2010, Para. 1).
This diverse customer base makes marketing a challenge but Cutbacks has found the formula to do it successfully. Cutbacks marketing strategy revolves around the four elements of the marketing mix. Cutbacks mission statement is to "inspire and nurture the human spirit one person, one cup and one neighborhood at a time" (Cutbacks, 2010, Para. ).
As an organization, Cutbacks fulfils its mission statement beginning with its products. It starts with more than 30 blends of single-origin premium Arabica coffees, hand- crafted beverages that include hot and cold choices, teas and a wide variety of fresh food products (Cutbacks, 2010). Cutbacks also sells merchandise from espresso machines, cups, books, music, and books. Offering multiple products caters to the various clientele who frequent the coffeehouse giant. Behind the products are the baristas who work behind the counters and are encouraged to know the regular customers and his or her favorite beverage.
Providing legendary customer service is as important to Cutbacks as the product itself. Location is everything and Cutbacks has the formula for finding ideal places that are highly visible with heavy traffic. Cutbacks can be found in shopping malls, airports, grocery stores, office buildings, and stand-alone stores with drive through convenience. The company has also created an inviting atmosphere for its customers to check e-mail, read, study, or socialize.
Unlike some restaurants, Cutbacks wants the customer to linger on the comfortable chairs, couches, or sit at a table.Promoting products is something Cutbacks does differently from most businesses. It goes not bombard the public through advertisements. Instead, Cutbacks competes on the merits of its products and services in all sales and advertising. Communications with current and potential customers are truthful and accurate; everything must be substantiated and cannot disparage its competitors (Cutbacks, 2010). The majority of advertising campaigns have been directed to customers who have registered to receive e-mails and other notifications.
As a part of the local community and promoting environmentally friendly practices is reputation. The Cutbacks Foundation was created in 1997 to support communities round the globe. Some of the projects include nurturing young leaders, supporting coffee, tea and cocoa development projects, providing access to clean water in third world countries, fostering education in China, and most recently rebuilding the gulf coast after the devastating hurricanes Rata and Strain hit the area (Cutbacks, 2010).The latest environmentally friendly initiative is to have recycling available in all of its stores where it controls waste collection and serve 25% of beverages in reusable cups. In 2009, Cutbacks hosted a Cup Summit in Seattle with all facets of the paper ND plastic cup manufacturers to agree upon criteria for a comprehensive recyclable cup product (Cutbacks, 2010). The last and hardest element to manage is price.
The price reflects the importance that a consumer places on a product. Like most global companies, Cutbacks prices its products based on geographical areas and how well the economy is doing in that specific area.The cost also includes the manufacturing and distribution of the products around the world. The loyal customer base keeps coming back regardless of the rising prices over the past several years because of the increased costs of coffee means because of natural disasters and other factors. Cutbacks has been cautious not to raise its prices too high; the increases have been relatively small as compared to other sectors. Without a strong strategy, organizations will struggle to satisfy customers and identify the right products at the right time.
