Marketing Mix for Coffee Shop Expansion

This assignment analyzes the application of the marketing mix to expand a new coffee shop in a new market. It emphasizes understanding consumer behavior, price sensitivity, product range, and legal considerations. The report provides insights into successful strategies for attracting customers and achieving business growth within a competitive coffee industry.

Business Essentials

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Factors that justify Spain has potential market for Smith and Marvin coffee shop....................1
Marketing mix to expand a coffee shop in abroad......................................................................2
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
An business is a profitable system where goods or services are change with each other in
return of money. Business are of two different types that is corporate and other is government.
Business essential has different benefits. A small business can have various competitive
advantage. Like they can employ local force for their business. In this assignment marketing mix
is discussed. Factor which fulfil the requirements to open a new business shop. Business
essential help a firm to increase the employee skill which are working with in a company or
business. Marvin and Smith had started their coffee shop in January 2017 at South London. Now
they want further expansion of their business in Spain also. So for this report let discuss some
factors which can help to open their shop in Spain.
TASK 1.
Factors that justify Spain has potential market for Smith and Marvin coffee shop.
Growing Sector- In Spain the food and beverage is a sector that is growing rapidly since
from past years. The revenue generated by Coffee segment amounts to US in the year 2019. The
market is expected to grow annually by 2.2% according to the CAG report. So Marvin and Smith
can open their shop as they are already familiar with coffee shop (Growth of Coffee businesses
in Spain, 2019).
Consumer behaviour- Price play an important role in purchasing behaviour of Spanish
consumer. They move to other brand if any company can providing efficient sales service and
inferior quality products to them. So Marvin and Smith should provide good quality of coffee in
their shop with a sensible price so they can attract more Spanish customer.
Scope in market- The hot as well as cold drink market of Spain has a positive response
from customer. Consumer give priority to on trade sale for coffee like they visit coffee shops
regularly. Roasted and instant coffee are more prefer by the Spain market. Revenue show by
graph in recent eight years from 2010 to 2018 for coffee has been increased from $62,703.5m to
$100,934.5m.
Culture of coffee in Spain- Person who stay in Spain visit regularly coffee shop to meet
their family and friends. People start their day with coffee. Types of different coffee which can
mostly prefer by Spanish society are. Latte, espresso and Macchiato which are consume as hot
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coffee. So if Marvin coffee shop can offer some cold coffee which can differ the taste of
consumer. They also increase their sale of coffee in summer months.
Market segment- the average age of Spain people is thirty-nine. So on demographic base
company can segment their market towards middle age society. They can design their product
for them particularly. As middle age people are mostly office workers so there is a regular
demand in increase of the sale of coffee. Marvin and Smith can convert this opportunity into a
potential market (Carvalho, Paiva and Vieira, 2016).
Buying patterns- customer again visit a coffee bar if there is a good taste in coffee.
Although it is predicated that consumption of coffee is depend on income segment of consumer.
In case of coffee shop if there a gratifying ambiance and a good quality of coffee is provide to
customer than they has good sale of coffee from their shop in a new market also.
Marketing mix to expand a coffee shop in abroad
Product- it is an item that is produce to satisfy the need of the customer. Product can be
tangible as well as intangible. In case of coffee it is tangible as it is consumed by customer
physically and the time to make coffee, presentation to deliver the coffee is a service. So at
Marvin and Smith coffee shop the USP for product is that customer can customised their coffee
as per they demand so they should not bear regular taste of coffee. For the new shop price outline
is based on international standard in which company can try to get regular customer during their
peak off time also (Dissanayake, 2015). For this new coffee store Marvin and Smith can offer a
dish with their regular coffee at minimum price. As price is a sensitive issue in Spain so for new
coffee shop firm can use market penetration pricing strategy in these customer will attract by
strategy of low price after a long run in market firm can slowly increase the price.
Place- it is the important part for a business it cover under the marketing mix. In these
business decide that where they can access more and more potential buyers. For these company
have to focused their target market. There are different strategy that suggest how company have
to distribute their product. For a regular coffee shop the best is to direct distribution channel
because business is directly related with customer. But in case of new coffee shop in Spain there
are different factors that have to be observe so for this concept the place is chosen to open a
coffee shop in Spain is Castile and León which is a part of north western Spain. This place is
suitable for shop because there is a rich sector of food and people explore new variety of shop in
food sector. In these case coffee shop has other benefit. They have easy supply of raw materials
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like milk, cream, sugar etc. which are included to produce a coffee (The Marketing Mix and the
4Ps of Marketing, 2019).
Promotion- it is a necessary component of business as it help a business to increase the
sale of their products. There are various ways by which company can promote their products
which are as mention. Advertising, public relation, sales promotion is a common way of
promotion. As new coffee shop does not enough budget to promote their products through media
and it is also not so effective. So for new coffee shop they can host an event at their premises and
other is to share valuable customer feedback on the board or on their display also. For a coffee
shop in Spain they have to try with more variety of products (Vanharanta, Kantola and Seikola,
2015). In result of target market that is above 30 age. So shop should prefer different varieties to
them this help to develop various taste for their customer. As in these case for these place for
coffee shop is established near industries and company offices so at the time of interval.
Employee will prefer to spend their time at the coffee shop. For these shop can develop can offer
various discount, scheme, etc. to attract customer. In case of Marvin and Smith coffee shop they
should offer in market. A medium cup of coffee with a sandwich, burger or small pizza at a low
cost. This will help them to satisfy customer need because they are offering extra product that
satisfy there little cravings also.
CONCLUSION
Form the above report it is concluded that to expand a business in a new market. Firm
have to apply marketing mix for their business. When a company is going further to go for
international market at that time they have to prefer various guidelines like price, law, market
and consumer behaviour. To open a new coffee shop factors like product range, price sensitive
consumer and their preferred taste are factors which can impact a business. So for these company
should also have to predict their various circumstance which can impact a business in future.
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REFERENCES
Books and Journals
Carvalho, J. M., Paiva, E. L. and Vieira, L. M., 2016. Quality attributes of a high specification
product: evidences from the speciality coffee business. British Food Journal. 118(1),
pp.132-149.
Dissanayake, K., 2015. Essentials of business research: A guide to doing your research project.
South Asian Journal of Management. 22(4). p.193.
Joshi, M., 2012. Essentials of marketing. Bookboon.
Nguyen, T. T. N., 2012. The business potential for Vietnamese coffee in Scandinavian market.
Pascucci, F., 2018. The export competitiveness of Italian coffee roasting industry. British Food
Journal. 120(7). pp.1529-1546.
Scarborough, N.M., 2016. Essentials of entrepreneurship and small business management.
Pearson.
Sherry, C. S. and Canon, C. L., 2014. An Introduction to “Business Essentials”. Journal of the
American College of Radiology. 11(2). pp.110-111.
Silver, L., Stevens, R.E., Wrenn, B. and Loudon, D.L., 2012. The essentials of marketing
research. Routledge.
Vanharanta, H., Kantola, J. and Seikola, S., 2015. Customers’ conscious experience in a coffee
shop. Procedia Manufacturing. 3. pp.618-625.
Online
The Marketing Mix and the 4Ps of Marketing. 2019. [Online]. Available Through:
<https://www.mindtools.com/pages/article/newSTR_94.htm>.
Growth of Coffee businesses in Spain. 2019. [Online]. Available Through:
<https://www.statista.com/outlook/30000000/100/hot-drinks/worldwide#market-
revenue>.
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