Coffee Roasters

Folders takes their stance in the market place as the cheaper coffee with fewer options and not as high quality. If Folders wants to compete directly with Roll, which I recommend they do to Increase sales, they have three possible options. The first being, they Increase the quality of their coffee and create more options of coffee types. The downside to this is that they will have to price their coffee at a higher rate because of production costs.

Alongside the promotion of Folder’s enhanced roasting process for Its Classic reduces, option one will can Increase their sales due to customers positively reacting to the different coffee options and the higher quality.

However, this option can cause a decrease In sales because customers do not want to pay the new high price. Option two consists of enhancing their quality of coffee alone. This way their costs do not raise substantially but it gives their company a notch up to compete with Error.

Option two will also increase sales with less opportunity costs. Option three consists of creating more options of coffee types and putting more focus on Folder’s new coasting process for the Classic products.

This option has the least amount of risk but at maximum, will create the lowest amount of results in comparison to options one and two. Option one has the highest risk but the best results if everyone goes to plan and sales reach their highest expectancy.

Option two has the possibility to create great results and high sales for the company but not as extreme as option one. Option three has the least risk out of all the options due to such low costs, but at maximum has the least significant results. There are various important factors that Folder’s needs to supplement into in decision process.

Since coffee is no longer considered a commodity product, Folders needs to keep in constant competition with small boutique coffee companies.

They need to focus on what kind of high quality coffee they need and what impact unique flavors of coffee will have on their sales. Another significant factor is the differentiation in coffee processes that defer between small companies and those of the major coffee processors. Since large companies like Folders cuts a significant amount of costs due to their simpler roasting style, it ill be hard to keep above the break even line If they decide to Increase their quality.

This will In turn have an effect on their pricing. Smaller companies Like Roll do not receive benefits as large as Folders because of their lack of options but they make up for It In the demand of customers who prefer quality over quantity.

By debater Error uses quality over quantity for a more expensive price. Folders takes their quality. If Folders wants to compete directly with Error, which I recommend they do to increase sales, they have three possible options. The first being, they increase the

Alongside the promotion of Folder’s enhanced roasting process for its Classic products, option one will can increase their sales due to customers positively reacting a decrease in sales because customers do not want to pay the new high price. Another significant factor is the differentiation in coffee processes that differ between will be hard to keep above the break even line if they decide to increase their quality. This will in turn have an effect on their pricing.

Smaller companies like Error do not for it in the demand of customers who prefer quality over quantity.