Question:
‘Refresh Zone’ was a popular coffee house chain offering premium coffee and snacks in a cozy environment. However, over time, the company began to face challenges in maintaining its market position. Customers had started complaining about lack of variety failing to cater to evolving consumer preferences. Also the price of coffee in ‘Refresh Zone’ was significantly higher than its competitors. Many consumers felt that the quality of coffee was not justifying its premium pricing.
Identify and explain two components of marketing mix that the management of ‘Refresh Zone’ needs to work on.
‘Refresh Zone’ was a popular coffee house chain offering premium coffee and snacks in a cozy environment. However, over time, the company began to face challenges in maintaining its market position. Customers had started complaining about lack of variety failing to cater to evolving consumer preferences. Also the price of coffee in ‘Refresh Zone’ was significantly higher than its competitors. Many consumers felt that the quality of coffee was not justifying its premium pricing.
Identify and explain two components of marketing mix that the management of ‘Refresh Zone’ needs to work on.
Show Hint
Lack of variety points to Product and high price with doubtful quality points to Price. Explain both with actions.
Updated On: Nov 11, 2026
Show Solution
Verified By Collegedunia
Solution and Explanation
Step 1: Find the problems in the case:
Problem 1: customers complain about lack of variety. The firm fails to cater to evolving consumer preferences.
Problem 2: the price of coffee is significantly higher than that of competitors. Customers feel the quality does not justify the premium price.
These two problems point to two components of the marketing mix, which are Product and Price.
Step 2: Component 1: Product:
Product means goods or services, or anything of value, which is offered to the market for sale.
Case evidence: lack of variety and failure to match changing tastes of customers.
What Refresh Zone should do: add new coffee flavours, cold drinks, healthy snacks and seasonal items. It should take customer feedback and update its menu on a regular basis.
Step 3: Component 2: Price:
Price is the amount of money that customers have to pay to obtain the product.
Case evidence: price higher than competitors and quality not justifying the premium price.
What Refresh Zone should do: review its prices against the rivals, fix a fair price for the quality, or improve the quality so that the customer feels the price is worth it. Combo offers can also help.
Step 4: Why these two and not others:
The case does not talk about outlets or advertising, so Place and Promotion are not the main issue here.
The complaints are only about what is sold and what is charged.
Final Answer:
The two components of the marketing mix that Refresh Zone needs to work on are Product (variety) and Price (premium pricing).
Problem 1: customers complain about lack of variety. The firm fails to cater to evolving consumer preferences.
Problem 2: the price of coffee is significantly higher than that of competitors. Customers feel the quality does not justify the premium price.
These two problems point to two components of the marketing mix, which are Product and Price.
Step 2: Component 1: Product:
Product means goods or services, or anything of value, which is offered to the market for sale.
Case evidence: lack of variety and failure to match changing tastes of customers.
What Refresh Zone should do: add new coffee flavours, cold drinks, healthy snacks and seasonal items. It should take customer feedback and update its menu on a regular basis.
Step 3: Component 2: Price:
Price is the amount of money that customers have to pay to obtain the product.
Case evidence: price higher than competitors and quality not justifying the premium price.
What Refresh Zone should do: review its prices against the rivals, fix a fair price for the quality, or improve the quality so that the customer feels the price is worth it. Combo offers can also help.
Step 4: Why these two and not others:
The case does not talk about outlets or advertising, so Place and Promotion are not the main issue here.
The complaints are only about what is sold and what is charged.
Final Answer:
The two components of the marketing mix that Refresh Zone needs to work on are Product (variety) and Price (premium pricing).
Was this answer helpful?
0
0
Top CBSE CLASS XII Business Studies Questions
What is the Planning Process?
- ................ is one of the most important attitudes of an entrepreneur, which is defined as the ability to continue to do something, even when it is difficult.
(A) Decisiveness
(B) Interpersonal skills
(C) Perseverance
(D) Taking initiative - Mention any four most common environmental barriers which an entrepreneur may face while running his/her venture.
- ____is the process of searching for prospective employees and stimulating them to apply for jobs in the organization.
‘Vishesh Constructions’, a construction company, decided to strictly implement ‘No Helmet, No Entry’ and put the following sign at their construction sites :
Identify the type of plan indicated by the above sign :
View More Questions
Top CBSE CLASS XII Marketing Management Questions
Match the Marketing Management philosophies given in Column I with their main focus given in Column II:
Column I Column II 1. Production concept (i) Customers’ needs 2. Product concept (ii) Quality, performance and features of product 3. Marketing concept (iii) Customers’ needs and societal well-being 4. Societal marketing concept (iv) Quantity of product Choose the correct option from the following:
- ‘JKSD India Ltd.’ recently introduced a new range of ‘fresh from kitchen’ jams, ketchups, salad dressings and peanut butter, etc. They appointed salespersons to contact prospective customers in leading malls to create awareness about their products and develop product preferences with the aim of making sales. Which tool of promotion is being used by ‘JKSD India Ltd.’ to market its products :
- A name, term, symbol, design, or some combination of these, used to identify the products, goods or services of one seller or group of sellers and to differentiate them from those of the competitors is known as :
- Which of the following is not a feature of marketing :
- ‘Lens-o’ was started as an online eyewear company... Now they also sell offline from their own showroom. Which channel of distribution is used by the company :
View More Questions
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is
View More Questions