CASE STUDY OF HANK MARVIN & PATTY SMITH: EXPANSION OF MARVIN AND SMITH COFFEE BUSINESS IN ROME, ITALY

CASE STUDY OF HANK MARVIN & PATTY SMITH

Table of Contents
INTRODUCTION............................................................................................................................. 2
TASK 1 JUSTIFICATION FOR EXPANSION OF MARVIN AND SMITH COFFEE BUSINESS IN ROME,
ITALY.............................................................................................................................................. 3
TASK 2 MARKETING MIX IN RELATION TO EXPANSION DECISION IN ROME, ITALY.......................7
TASK 3 IMPLICATIONS OF THE NEEDS FOR MARVIN & SMITH’S COFFEE SHOP TO COVER A
WIDER GEOGRAPHICAL AREA IN ROME, ITALY..............................................................................9
TASK 4 EVALUATION OF IMPACTS OF PROFITABILITY AND LIQUIDITY ON AVAILABLE DECISIONS
..................................................................................................................................................... 11
CONCLUSION............................................................................................................................... 13
REFERENCES.................................................................................................................................14
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INTRODUCTION
This report focuses on the potentially strong place for the business expansion of the Marvin &
Smith’s coffee shop. The prime objective of Marvin and Smith is to expand their business in a
European Union country such that suitable recommendations will be provided along with
appropriate strategies and justifications for fruitful expansion. The country which will be taken
into consideration is Italy in which the business will be expanded in Rome (Armstrong, et al.
2015). Further, the marketing strategy, logistical aspects, and justifications will be provided as
per the city. The appropriate marketing strategies will also be assessed in order to expand
business in Italy.
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TASK 1 JUSTIFICATION FOR EXPANSION OF MARVIN AND SMITH COFFEE
BUSINESS IN ROME, ITALY
It has been suggested to Marvin and Smith that they should expand their business in the
market of Rome, Italy due to various valid reasons which have been discussed in details as
follows. It has been evaluated by the research that an average person in Italy consumes around
4.3 kg of coffee. In addition to this, the total consumption of coffee in Italy is around 211
thousand of tonnes. Thus, it could be determined from the statistics that the business of coffee
shops in Italy has huge potential. The demand for coffee among the people of Italy has been
growing rapidly and the need for high-quality coffee is huge. The lifestyle and culture of the
Italian people towards coffee has been transformed in the recent time which is the prime
reason for expanding business in the Italian city (Mathuva, 2015). The selection of right location
is a challenging task but the most appropriate location for the business in Rome as it has the
huge population as compared to other Italian cities.
Figure – Caffeine (Coffee) Consumption by Country
(Source - https://www.caffeineinformer.com/caffeine-what-the-world-drinks)
Italy is a beautiful destination site for the business as it is tucked between beautiful neighbour
countries like France and Switzerland along with the Mediterranean Sea which is fruitful for the
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