CBSE 2025, BS Set 1

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.

Edvaya · Accepted Answer

The correct answer is Subjective. **Two components of Marketing Mix that 'Refresh Zone' needs to work on:**

**(i) Product:**
Customers were complaining about a **lack of variety**, which means the existing product offering (coffee and snacks) was not meeting evolving consumer preferences. 'Refresh Zone' needs to expand and diversify its menu — introducing new coffee varieties, seasonal beverages, healthier food options, etc. — to satisfy a wider range of customer preferences and stay competitive.

**(ii) Price:**
Many consumers felt that the **quality of coffee did not justify its premium pricing** and the price was significantly higher than competitors. 'Refresh Zone' needs to reconsider its pricing strategy — either by reducing prices, offering value-for-money combos, or clearly communicating the value that justifies the premium, in order to attract and retain price-conscious customers.

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Business Studies > Marketing Management And Consumer Protection > Marketing Management

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