This marketing plan outlines strategies and tactics for Cafe Medici to increase sales and profitability. It includes a situational analysis, target market segmentation, marketing mix, and cost benefit analysis.
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Table of Contents INTRODUCTION...........................................................................................................................1 Part 1 – Devise Marketing Strategies...............................................................................................1 Part 2 - Plan Marketing Tactics.......................................................................................................3 Part 3 - Prepare and Present a Marketing Plan................................................................................5 Task 1...............................................................................................................................................5 Task 2............................................................................................................................................6 Task 3...............................................................................................................................................7 CONCLUSION................................................................................................................................7 REFERENCE...................................................................................................................................8
INTRODUCTION Marketing plan is defined as strategy and activity which uses to run the business and increase organisational profitability in challenging environment. In other words, an operational document that outlines an advertising strategy for reaching the targeted customers and attaining the higher profitability(Hollensen, 2019). For organisation it is important to understand needs and wants of their customers and formulate plans which can help to maintain the higher productivity. Café Medici is selected organisation that is Fresco restaurant / Cafe located at prime location of Melbourne CBD, Victoria 3000. This cafe is operating since 8 years that is providing different taste and flavour of food items to customers. The management of such organisation understand needs and provide the kind of products. This report covers marketing strategies, Plan marketing strategies and preparation of marketing plan that supports to attain the business goals. Part 1 – Devise Marketing Strategies Strategic plan for organisation Strategic plan is the main element of organisation that uses to provide different information and complete the goals effectively. The strategic plan forCafé Mediciis to become larger Cafe in competitive market. So management set the budget and formulate all functions to manage the activities effectively(Forés Corella, 2019). The vision statement ofCafé Medici to developCafé Medicias the world's premier seller of the finest coffee while adhering to our unwavering ideals as we expand The values ofCafé Medici The chosen hotel is understanding the customer demand and provide the products and services accordingly. This creates the sustainability and good brand image in front of all organization. This also brings the change time to time that supports to attain the profitability. Describe aspects that exist within the organisation that affect marketing (internal environment) InCafé Medici,different aspects are types of products, channel of distribution, business 1
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condition, markets and needs of customers that affects the marketing and increase number of customers to buy products(Kotler, 2019). Describe the Café Medici customers and culture in general, and Café Medici competitors The customers of Café Medici are youngsters between the age of 10 to 40 who wants to get new taste and spend their time at other place with friends and family. The role culture is adopted by Cafe in which roles ans responsibilities of employees are distributed according to their roles and responsibilities which can help to operate a business. The competitors are Culture Cafe, restaurants and others hotels which are providing different products and services. By using the competitor analysis it has defined that many competitors are exists in organisation such as Cafe, restaurants and others who understand needs, bring innovation and deliver quality of food(Campo Escobar, 2020). Situational analysis Strength:Café Medici is large size cafe that provides different types of Coffee and fast food to customers. It has skilled and talented staff who operate all functions and make happy to customers. Weakness:Changing the needs and wants of customers in food industry. Occurring of natural problem such as COVID19, and other Pandemic. Having many competitors of organisation. Opportunities:Bringing new taste and innovation in Cafe. Increasing population and taste of customers. Providing better quality and taste of products and having good distributional channel. Threats:Having many competitors in market, changing in climate and environment. Moreover, changes in current of country can be threat for running business(Huihui, 2019). Perform gap analysis to identify gap between where the organisation is now and where it wants to be in the future The gap analysis states that currently organisation is facing the higher competitors as having many competitor due to which sales ration has been reduced 52% from 42%. This wants to a leading organisation in future by offering variety of products(Bandyopadhyay and Ray, 2019). 2
Selection of strategy Competitive pricing strategy is the main strategy that will going to be use by Café Medici which will help to sale their products at competitive prices and will attracts the number of customers which will help to maintain higher productivity and profitability(Atmaji, 2019). Marketing objectives The marketing objectives of Café Medici is to increase the sale by 50%. To provide the better quality of products and use of best ingredients. To capture large market share by 40% and developing the business. To improve distribution channel by influencing number of people. To attain the high range of customers in competitive market. Target market and segmentation Target market:For Café Medici the target market is medium and high profile customers who wants a new taste and better place to spend time(Pham and et.al., 2019). Segmentation:Inthis,Demographicsegmentationisselectedbyorganisationwhereit management mainly focuses on income group and profile that helps to provide products and services accordingly. Part 2 - Plan Marketing Tactics Tactics are the strategies which uses by organisation to attain the decided goals and objectives by implementing plans. Explain in detail the term ‘Marketing Mix’, what it consists of, what each term means in relation to marketing Café Medici is a good Cafe that is using the Marketing mix for the purpose of attracting number of customers that are as explained: Product:This means things and items which are provided by organisation in order to increase sales and attain the profitability. The products of Café Medici are food, coffee like Panner tikka, samosa, Biryani, Tikka, sandwich, coffee, pastries and cakes, focaccias, salads,soft drinks and many items which influences the number of customers. This also keeps ice-cream and other 3
products. Price:This means a strategy which uses to set the price and attract number of people.Café Medici is adopting competitive pricing strategy which is effectively uses to set affordable prices and attain the large number of customers(Caliskan and Esmer, 2019). Place:Thismeansaplacewhereproductsandservicesareprovidedandmanagedin challenging environment. This is locates atMelbourne CBD, Victoria where it is operating its organisation by managing all task and functions. This organisation has 150 seats, 75 of which are outside that are running business in challenging environment. Promotion:This means channel and activities which are uses to promote the products and services. Café Medici is using digital marketing, T.V., You tube, Bill boards, magazine etc. that provides the messages and information to customers and manage the all functions and activities effectively by developing a business(Deiss and Henneberry, 2020). Process:A online and website developing process uses by Café Medici to reach the target customers and provide them variety of products that make happy customers(Portway, 2019). Physical evidence:A attractive structure and designing of Café Medici uses to improve the brand image and develop the business effectively. By having attractive structure and design it become easy for customers to develop the business and attain decided goals. People:As Café Medici is small size Cafe having Chefs, 5 full time employees in service department by including manager, 5 part time employees as required in peak time. 2 Full time employees in food production department and 3 part time employees in cleaning, manufacturing and other services that increases sales and performance in challenging environment. Two tactics for implementing marketing strategy Tactic 1description:Café Medici wants to attract number of customers by increasing product base or introducing different new services which increases the organisational productivity and sales. Schedules and timelines:The management has decided to introduce new taste in upcoming 2 month and such cafe will be open 24/7 hours. Resources required:For implementing this tactics, there is need to require capital, better raw material, coffee beans and employees who can prepare food in less time and make happy to customers effectively. Responsibilitiesandaccountabilities:Inapplyingsuchtactics,manufacturingandproducing department is responsible and accountable who will take the orders from customers and would provide better quality and taste of food to customers. 4
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Tactic 2 description:This tactics is related to pricing strategy as Cafe Medici is required to choose right prices of their products and services that can help to maintain good relationship between customers and management. This can help to attracts the large number of customers and attain the higher profitability. Schedules and timelines:The organisation is firstly identify the prices of competitors by analysing market then implement in their organisation so that right decision can be made effectively. Resources required:A effective plan and knowing customers income group is required to know that can help to operate and regulate the business properly and grow the business. Responsibilities and accountabilities:The marketing manager and service manager are responsible for all activities and task that are needed to complete timely and make efforts to increase the organisational productivity and profitability(Sadiku-Dushi and Ramadani, 2020). Conduct cost benefit analysis and comment on the result Cost benefits analysis is a tool which uses byCafe Medici to set the cost of their products and influence number of customers who helps to maintain the good performance and profitability. The organisation is getting positive and effective results as they manages all activities and functions effectively. How much will it cost to implement these strategies and explain how the two tactics you have chosen will benefit Café Medici financially. According to above strategies the estimated cost is$80 which can help to operate a business regularly by allocating the work and attain the higher productivity. The Two tactics which have chosen will give more benefits forCafé Medici as it will arrange the funds 60% from friends and family The remaining amount is collected from bank loan. All tactics provides good results by reviewing performance against budget and objectives Explain how you will check that the tactics are meeting the objectives and budget allocated to the marketing activities and what will happen if they are not working. The management ofCafe Medici apply innovation in product and setting the effective prices of their products tactics in their organisation by reviewing employees performance which helps to formulate planning and attain the business goals in changing environment.These strategies helps to meet with objectives by evaluating the tactics by using KPI and Benchmarking tool 5
which can help to operate a business and would also help to attain the business goals. Part 3 - Prepare and Present a Marketing Plan Task 1 Evaluation of marketing opportunity options anddifferent marketing opportunities available to Café Medici and which ones provide the most benefit. The marketing opportunities forCafe Medici are using tactics, formulating plans, setting budget, setting competitive prices and delivering best quality of products and services which can help to operate a business and develop the profitability in changing environment. Different marketing opportunities as reducing prices and better quality of food and beverages will attracts the number of customers which will provide higher benefits and improve the brand image. Marketing strategies that utilise existing strengths and opportunities and develop resources and expertise needed to meet objectives Cafe Medici is uses different marketing strategies as identification of needs, developing market, providing better quality of products, managing all activities and functions and delivering the higher performance which can help to meet with decided goals and objectives by generating strength and weakness(Zamora-Corrales, and et. al., 2019). Marketing tactics that are legal, ethical, achievable and can be reviewed The marketing tactics which are designed by management ofCafe Medici as innovation of products and effective pricing strategy are legally designed which ethical as by offering variety of products involving organic and hygienic, it can increase the number of customers. These strategy can be reviewed by management step by step which can help to operate a business and attain the competitive advantages. The marketing tactics will be reviewed by checking the sales change percentage, preparing questionnaire, getting feedback from customers, and comparing the strategy with competitors that will help to manage the business. Costs, scheduling, responsibilities and accountabilities for tactics The marketing manager, and producers are responsible and accountable for their cost and 6
schedulemanagementwhichwillhelptoincreasesalesandprofitabilityinchanging environment. Explain the costs and scheduling of the tactics. Is there anyone else at Café Medici who is responsible and accountable for the success of the marketing tactics. The cost and scheduling of tactics is £ 80 within 6 month that would help to attracts the large number of customers. In Cafe Medici management, store manager and leaders are responsible and accountable for all activities which can help to regulate a business and increase the performance by applying marketing tactics effectively. Strategic use of marketing approaches and marketing mix The marketing approach such as relationship marketing, word of mouth, internet marketing and advertisement uses by organisation to run the business and complete the task in certain time. Moreover, marketing mix uses to influence number of people and bring the changes accordingly that can help to reach the target market and attain higher profitability. Rationale for objectives and chosen strategies and tactics The rationale for setting objectives and selecting strategy are to increase the sale by facing the competition and maintain higher profitability in food and beverage industry. Explain why you have chosen each tactic for Café Medici. How will each tactic be of benefit for Café Medici. The chosen tactics for Café Medici is pricing strategy and innovation of products and services which will be beneficial to attracts the number of customers in different age group and attain the competitive advantages. By setting the competitive prices it increases the market share and growth of their business that can help to maintain higher performance. Task 2 Design of marketing plan Executive SummaryCafe Medici is small size cafe that is providing variety of products and services in selecting market. The organisation wantstoincreasesalesandpercentageofprofitby 7
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introducing new products. Marketing goalsTo attain the higher profitability by increasing sales up to 70% To face the competition and develop a good image in changing market. Management of all activities and functions in relation to marketing. BudgetThe management ofCafe Medici has decided a amount of $ 100000 in providing variety of food products and services which influences number of people and develop a business effectively. ResourcesTorunmarketingplanthereisneedoffunding resources that are going be collect from Angel investors that helps to provide the small size of funds to run and expand the business activities. Monitoring and controllingThe management of chosen cafe are responsible and accountable for all activities in relation to marketing which can help to operate business and develop the profitability in changing environment. The management also control over activities which are excessive that provide higher benefits. Task 3 Incorporate any feedback and make necessary refinements As marketing plan has been formulated and implemented by management necessary feedback helps to bring the changes. This market plan is very effective as it will attracts the large number ofcustomersthroughofferingvarietyofproductsandservices.Theshareholdersand management provide positive responds towards organisational marketing plan and develop the business effectively. 8
Resources – need to include other resources required by Café Medici to implement marketing tactics (not only financial). For implementing marketing plan and tactics Cafe Medici is required to arrange financial and non financial resources. Financial such as money, funds and others which can help to buy raw material and change the infrastructure. Whereas, non financial involves human resources, skilled and experience employees, place and proper infrastructure. Monitoring and controlling – how will this happen?Explain the actions that will be taken to monitor and control the marketing plan Monitoring and controlling of market plan is very important as management will monitor each activity and would control the performance by using KPI and Benchmarking tool that will help to attain the higher productivity and profitability. The management is responsible to manage each activity and functions that can help to complete task and increase sales of Cafe Medici. Submission of marketing plan The management ofCafe Medici represent their marketing plan in front of shareholders and employees that helps to make right business decision for further investment and complete the goals for which organisation has been established. This plan helps to attain the business goals and profitability (Burton, Mosteller and Hale, 2020). CONCLUSION From the above report it can be concluded that marketing plan is more effective for all organisation as it helps to attracts the number of people and deliver better quality of products and services. By managing all activities and functions in relation to marketing management can run their business increase profitability in competitive marketing. 9
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