Coffee Shop Marketing Mix, HR, and Business Expansion Strategies

This report provides a comprehensive analysis of the marketing mix, human resource management, and business expansion strategies for a coffee shop, Marvin & Smith, aiming to enter the Holland market. It examines key elements such as product, price, place, promotion, people, process, and physical evidence, offering insights into penetration pricing and promotion strategies. The report also identifies critical challenges in human resource management, including government regulations, economic conditions, and cultural factors. Furthermore, it explores the importance of technology and domestic factors in international marketing. The report concludes with proposed solutions to manage these challenges, emphasizing the need for market analysis, innovation, and compliance with local regulations, ultimately highlighting the opportunities presented by the high coffee consumption rate in Holland.

Coffee Shop Marketing Mix and Human
resources management, Operations

Table of Contents
INTRODUCTION ..........................................................................................................................3
Question 2 .......................................................................................................................................3
Marketing mix .......................................................................................................................3
Question 3 ......................................................................................................................................5
Key factors to be considered in expanding their business in other territory :........................5
Ways to manage potential challenges and Issues : ................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Expansion of business is not an easy task a huge amount of investment is to be
made on resources such as human resource, technologies, physical resource as well as
marketing activities. As Marvin and Smith is trying to expand its business in new market.
i.e., Holland. The company has to face many challenges related to management of
human resource, pricing strategies, product strategies, promotion strategies etc. In
order to understand the concept in detail the report will cover the marketing mix, key
challenges and issues which company face and ways to overcome or manage them.
Question 2
Marketing mix
Product : Marvin and Smith first try to understand the type of market in which company
is trying to introduce its product. As many products which is used in one country may
not be adapted by costumers of other country(Haider and et.al., 2019). For example
McDonald's who is a global players changes its strategies or product as per the market.
For instance in India where cow is treated as goddess therefore McDonald's provide the
burgers made up of chicken and fish instead of beef Marvin and Smith should use the
good quality of coffee beans for their shop as the good quality product will help them to
gain the trust and loyalty of customers. The company should try to provide a variety of
products as per the new market such as coffee cream, Lemonade, Mocha cream
Frostino, Flat white, Latte etc. Marvin and Smith should try to provide better quality
service to its customers.
Price : In order to enter in new market Marvin and Smith should try to adopt penetration
pricing strategies. Penetration pricing strategies is the best strategy which can be used
in order to enter in new market. The company can enter new market by offering low
prices it will help company to attract large number of customers. Once the company
builds a strong customer base than company can increase the prices of its product. It
will result in high sales volume. It will help to capture market in less time. It will
discourage new entrants from entering in market.
Place : In order to provide customers product the company can do partnership with the
local restaurants, theatres and other places in order to sell their product and make it
easily available to customers. The company should try to target youngsters as now a

days. As the company wants to enter in new market it may require huge investment
therefore partnership with the local business will be a good idea for the company to
build customer base. The company should use intensive distribution strategy. In
intensive distribution strategy product is sell to small vendors to big store. This strategy
will help Mark and Smith to make its product available everywhere(Moorkens and et.al.,
2016).
Promotion : As now a days majority of people including teenagers to adults all are
active on social media. Therefore Mark and Smith should try to use social media
platform in order to promote its product in new market. The company can starts its
social media campaign such as uploading picture by a customer with product of
company such as coffee with their friends. Such type of campaign will help company to
do promotion of its product. The company can make use of digital media in order to
connect to its customers. These platforms will help company to promote the product to
large number of customers and increase brand awareness.
People : The company should try to focus on its employees as well as try to understand
the needs of its new market customers. As employees are the most important resource
of an organisation therefore company should try to focus on its employees welfare. The
company should train its employees to serve good service to its customers. As the
company is entering in new market it will be helpful for company if they understand the
culture, belief, attitudes of customers of that market. It will help company to provide
services accordingly to its customers.
Process : Marvin and Smith should try to set up a nice arrangement. The outlets should
be such that in which customer feel comfortable(Kelly, Gold and Di Tommaso, 2017).
The understanding of culture, language and belief of particular company will help
company to greet and treat the customers nicely. Emphasis should be laid on providing
quick and good quality service.
Physical Evidence : the company can use a unique style furnitures which will help
company to attract customers towards the outlet. The company can use a unique logo
on its coffee shops as well as coffee cups, glass or any other utensils which is used in
order to serve customers. Marvin and Smith should try to lay emphasis on interior

designing means the designing should be such that which will give a comfortable and
relaxed environment to its customers.
Question 3
Key factors to be considered in expanding their business in other territory :
The challenges which Marvin and Smith face in relation to human resource
management and marketing while expanding its business in new market are :
Human resource management :
Government regulations : In order to start business in new country a company may
require to recruit people of that particular market. As different countries have different
rules and regulations therefore company has to make changes in its recruitment
process accordingly(Challenges to marketing management, 2019). For example an
American with disabilities act, under this act a company needs to modify their office
configuration and it is required that office should provide accommodations to an
individuals with disability.
Some rules and law of Holland which needed to be considered in order to open coffee
shop in Holland are :
As per the commodities act, a company who want to start a business in food and
consumer product should comply with commodities act. The act comprises of general
rules associated with product safety, adequate information, fair trading and public
health.
Coffee shops are not allowed to sell alcohol.
Economic conditions : The economic condition of country in which company is trying to
start its new business can also be a major challenge to a company. A poor economic
condition of market may affect the recruitment process. The company may not find the
eligible candidates for their company(Armstrong and et.al., 2018).
It might be possible that people with low economic country may be selective in
their purchasing which will affect the profitability of a company.
A poor economic condition can also have a positive impact on recruitment process. It
will help company to get labour at low cost.
Cultural factors : It is one of the important factor which affects international human
resource management. Culture can be defined as a set of beliefs, values and actions of

a particular group of people living in particular area or belong to particular group. The
culture of a country change from country to country(Geels, 2018). A company may
consist of employees from different work culture it may create misunderstanding which
will affect the working of business.
Culture of Holland : The other additional factor which company should consider is
culture of Holland is respect of coffee consumption. Dutch has played an important role
in coffee world. The Holland has a culture of drinking coffee. Almost all age groups get
attracted toward coffee, after the completion of their office hours people use to drink
coffee and enjoy their evening while consuming coffee.
As the Dutch brew coffee at home therefore this cultural factor can be a problem
in order to attract customers toward the shop.
Marketing :
Technology needs : In order to expand business internationally a company should
consider the advancement in technologies(Matulaityte-Feldhausen and Ginevicius,
2016). As now a days technology plays an important role in almost all types of business,
companies are heavily dependable on various technologies for the purpose of data
collection, data driven and promotion purpose. Therefore before entering into new
market a company should consider all this factors.
Domestic factors : The approach of government of particular market towards
international trade creates a huge impact of international marketing. The participation by
government bodies of a country at central as well as state level creates a huge impact
on the marketing environment.
Ways to manage potential challenges and Issues :
In order to come up with the challenges of human resource management and
marketing. The company should try to first analyse the language, religion and etiquette
of a Holland. The company should adapt the environment, it will help company to
understand its customers and will also help company to analyse what will work well for
the company in particular market. As the coffee consumption rate in Holland is much
higher than any other geographical area. Therefore it will be beneficial for a company to
start business in Holland.

Secondly as market trends is changing rapidly therefore company should try to
innovate new strategies and use new technologies in order to survive in new market.
The company can make changes in its strategies by properly analysing the market.
The law regarding coffee shops are also changing therefore before setting up business
in Holland, Marvin and Smith should first analyse all the laws related to this sector.
Similarly in order to come up with challenges due to government regulations
company should first try to understand and gather knowledge regarding rules and
regulations of particular country. It will help company to make its strategies for the new
market accordingly.
This are some ways which will help Marvin and Smith to come up with such
challenges.
Coffee consumption : According to the analysis done by Quartz it was found that
Netherland is the biggest coffee drinker which are followed by Finland, Denmark and
Sweden.
The amount of coffee drink by Dutch people is about 2.5 times more than that of
people who drink coffee in US. US might have 13,000 Starbucks but it does not have a
most coffee drinking persons.
CONCLUSION
As entry in new market is not an easy task a company has to face many
challenges. The study helps in understanding how with the help of marketing mix
strategies can be made related to price, place, promotion, physical evidence etc., which
will help marketers to create strategies in order to capture market. The study also gives
an understanding of factors related to human resource management and marketing in
which can prove as a great challenge for entering in new market. The study has proved
beneficial in order to understand the ways in order to manage and overcome such
challenges.

REFERENCES
Books and Journals
Armstrong, G.M., and et.al., 2018. Marketing: an introduction. Pearson UK.
Geels, F.W., 2018. Disruption and low-carbon system transformation: Progress and
new challenges in socio-technical transitions research and the Multi-Level
Perspective. Energy Research & Social Science, 37. pp.224-231.
Haider, A.A. and et.al., 2019. Marketing Management.
Kelly, E.C., Gold, G.J. and Di Tommaso, J., 2017. The willingness of non-industrial
private forest owners to enter California’s carbon offset market. Environmental
management, 60(5). pp.882-895.
Matulaityte-Feldhausen, M. and Ginevicius, R., 2016. STRATEGIES OF NATIONAL
LITHUANIAN COMPANIES TO ENTER INTERNATIONAL MARKETS.
Moorkens, E. and et.al., 2016. Overcoming barriers to the market access of biosimilars
in the European Union: the case of biosimilar monoclonal antibodies. Frontiers
in Pharmacology, 7. p.193.
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