CRISEL L.
ELNASIN
MBA 610 Managerial Economics
Case Study: Strategic Demand Analysis for Dean Bliss Coffee Co.
1. Identifying Key Demand Determinants
Dean Bliss Coffee Co. operates in a dynamic market where consumer behavior is influenced by
income, health trends, competition, and geography. Understanding what drives demand is critical
to tailoring product strategies.
Key Factors:
• Consumer Income & Spending Habits: Urban customers—especially in areas like
Quezon City and Makati—are more likely to spend on premium products like cold brews
and single-origin beans. In contrast, rural customers in places like Misamis Occidental
often find the pricing out of reach, preferring cheaper 3-in-1 sachets.
• Health-Conscious Trends: More consumers are shifting to plant-based lifestyles,
preferring oat, soy, or almond milk alternatives due to lactose intolerance, vegan
preferences, or perceived health benefits.
• Substitute Products: Budget-friendly coffee options, such as local brands and
convenience store instant mixes, are stealing market share—especially during economic
downturns.
• Geographic & Demographic Differences: Younger, urban consumers seek brand
prestige and sustainability, while rural communities emphasize affordability and
practicality.
Strategy:
• Conduct regional market surveys and focus group discussions to segment customers by
purchasing power and preference.
• Create affordable formats like single-serve sachets under a new value line.
• Customize urban marketing to emphasize premium, health-driven, and ethical sourcing.
• Use digital storytelling to communicate Dean Bliss’s value to rural audiences: “High
quality, now within your reach.”
2. Seasonal Demand and Inventory Management
Seasonality impacts both sales and supply chain efficiency. Cold brews spike in warmer months
(March–May), while hot blends are favored during colder seasons (October–January).
Challenges:
• Overstocking of cold brews in December leads to waste.
• Shortages of hot blends during peak demand reduce customer satisfaction.
Strategy:
• Analyze historical sales data to forecast seasonal trends accurately.
• Launch seasonal campaigns like:
o “Sunbrew Sips” – tropical iced brews and plant-based cold drinks.
o “Fireside Roast” – spiced hot blends with limited-edition packaging.
• Implement a season-based production calendar, adjusting inventory based on
forecasted demand.
• Bundle products strategically (e.g., hot brew + cold brew sampler packs) to flatten
demand peaks.
3. Strategic Response to Shifting Consumer Preferences
Consumers today prioritize health, sustainability, and dietary inclusivity. Dean Bliss must evolve
to remain relevant.
Market Trend:
Customers, especially millennials and Gen Z, are choosing cafés and brands offering dairy-free,
lower-sugar alternatives. This shift is visible in both social media trends and store-level
feedback.
Strategy:
• Launch a new product line: “Dean Bliss BrewKind”, featuring oat milk, soy milk, and
almond milk variants.
• Highlight benefits like “lactose-free,” “100% plant-based,” and “heart-friendly” on
packaging.
• Collaborate with influencers and baristas to promote the new line via Instagram and
TikTok challenges.
• Partner with alternative milk suppliers to negotiate better prices and maintain healthy
profit margins.
4. Regional Market Adaptation
Dean Bliss’s current premium branding resonates in urban hubs but struggles to connect with
rural, price-sensitive markets.
Challenges:
• High price point alienates lower-income buyers.
• Brand is perceived as “too high-end” in some areas.
Strategy:
• Introduce a sub-brand (“BlissSavr”) for affordable, high-quality instant mixes with a
lower retail price.
• Use pop-up stalls in rural towns for taste-testing and engagement.
• Offer smaller packaging sizes for lower price points without compromising quality.
• Partner with local cooperatives and sari-sari stores for grassroots marketing.
• Educate consumers via radio jingles and flyers on why sustainable and premium coffee is
worth the value.
5. Sustainability and Climate Change
Climate change is disrupting coffee supply chains, affecting both cost and consistency. Dean
Bliss, committed to ethical sourcing, must turn sustainability into a strategic advantage.
Current Impact:
Yields from partner farms in Benguet are declining due to unpredictable weather. As a result, the
company faces higher bean costs and tougher decisions on pricing.
Strategy:
• Launch a Sustainable Farming Program in partnership with NGOs to teach climate-
resilient practices to farmers.
• Develop eco-conscious packaging featuring QR codes for transparency—allowing
customers to trace their coffee back to the farm.
• Promote the sustainability journey under the campaign: “Brewed with a Conscience.”
• Offer incentives for reusable cup use and introduce carbon-neutral delivery options.
• Pursue certifications like Rainforest Alliance or Fair Trade to boost credibility and
justify premium pricing.
Conclusion and Recommendations
To navigate an evolving market and economic climate, Dean Bliss Coffee Co. must adopt a
multi-dimensional strategy grounded in demand analysis. This includes:
• Segmenting consumers by income, preference, and location.
• Adjusting products and marketing by season and region.
• Innovating in response to dietary trends without losing brand identity.
• Using sustainability as a brand pillar and supply chain stabilizer.
By aligning business strategies with data-driven insights and real-world trends, Dean Bliss
Coffee Co. can strengthen its market position and continue delivering “Bliss in Every Cup.”
