Q1.1 Defend the use of third-degree price discrimination by Tribeca Coffee when entering new markets.  you are required to provide at least two (2) application points. Q.1.2 Identify below  common errors in pricing that Tribeca Coffee could be potentially exposed to when entering Ethiopia and recommend ways for the business to minimise the impact of such errors. 1. Heavy reliance on cost  2. Infrequent revision of prices 3. setting the price independently of the marketing mix 4. inadequate variation of prives Q1.3  Tribeca Coffee has decided to invest in its own fleet of vehicles to move its product across the SADC region. Explain how the business can capitalise on opportunities and minimise the impact of challenges in transportation technology.

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Read the articles below and answer the questions that follow:

Article 1 : Tribeca Coffee

The TriBeCa Coffee story is not as much a tale as it is an adventure that has lasted more than two decades. Dale Mazon arrived in South Africa in 1996, a trained Barista with a Business Degree and a keen desire to start his own business – which he did in Pretoria Central for a while, until he met Martin Fitzgerald in 1997. Martin, having experimented in the coffee and restaurant business whilst working as an Accountant by day had expansive ideas of his own and so the adventure began.

The two young entrepreneurs would go on to create a small group of unique and diverse coffee houses and one of the most successful coffee roasteries in the country. The coffee roastery began in 2002 in Bloubokkie Street, Koedoespoort in a 180m2 space, a 17 kg Sivetz Roaster and some of the most entrepreneurial minds and dedicated collaborators who believed that we were at the heart of a unique journey. Martin had always expressed an interest in exploring coffee, I am not sure that he knew at the time how intricate and exploratory the idea would become. With an enormous amount of hard work and a little bit of luck, they shaped what is now known as TriBeCa Coffee Co.

In 2015 Ernst Penzhorn, who has always had a guiding influence on the team, stepped into the ring as CEO and mentor, bringing with him a wealth of knowledge, experience, and insight.

Inspiration and Innovation is what has kept TriBeCa at the forefront of the coffee industry, our factories are streamlined and uncluttered, equipped with the most advanced coffee roasters, process innovation, training programs, quality assurance labs and skilled individuals that share in common objectives. Martin and Dale have inspired a team of totally committed and knowledgeable people, who would die in a ditch before this adventure is deemed to be complete.

Coffee is a complex and beautiful product. It is said that it takes 200 man hours to make one cup of coffee. It all starts at a farm. We source our coffee from various farms around the world. Each farm in each country is unique and it is up to us to find and celebrate that uniqueness. Relationships and adventure are the cornerstones of our farm visits, developing a better understanding of the challenges that the farmers face but also developing a better understanding of who they are as individuals. 

All of the places that coffee grows best are outstandingly beautiful and often remote. To get to these places requires a sense of adventure and a bit of flying by the seat of your pants which is in turn rewarded with delicious coffee, spectacular views and some of the best people on earth.

Coffee is said to contain approximately 850 aromatic and flavour compounds whereas wine only has about 200. To reveal these compounds, the coffee must be skilfully roasted as the coffee releases the sugars, gasses and oils. To do this can be as easy as putting the coffee on a pan on a stove but to truly master the art and craft you need some of the best technology in the world. Divided between a few roasting machines we have acquired the best coffee roasters that flavour roast the coffee to perfection, consistently.

Coffee has 4 main enemies: UV light, Heat, Moisture and Oxygen. Our packaging is designed to be a barrier to all of these foes. The triple laminate foil with a one-way valve allows the coffee to breathe out but not in and that makes all the difference when keeping the product fresh. We have a team of dedicated people who want to get your coffee to you as fresh and as delicious as possible.

Q1.1 Defend the use of third-degree price discrimination by Tribeca Coffee when entering new markets.  you are required to provide at least two (2) application points.

Q.1.2 Identify below  common errors in pricing that Tribeca Coffee could be potentially exposed to when entering Ethiopia and recommend ways for the business to minimise the impact of such errors.

1. Heavy reliance on cost 

2. Infrequent revision of prices

3. setting the price independently of the marketing mix

4. inadequate variation of prives

Q1.3 

Tribeca Coffee has decided to invest in its own fleet of vehicles to move its product across the SADC region. Explain how the business can capitalise on opportunities and minimise the impact of challenges in transportation technology.

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