Marketing Plan of Caramel Coffee | Assignment
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Added on 2019-10-18
Marketing Plan of Caramel Coffee | Assignment
Added on 2019-10-18
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Executive SummaryCaramel Coffee is a local coffee bar that offers an effective and friendly environment for thecouples to meet and chat till long hours. This coffee house will provide the customers withsnacks along with coffee and other drinks so that the customers will sit for longer hours and havechat while munching and drinking. There will be sitting as well as standing facility available inthe coffee bar. The bar will be at a central location so that everyone can reach out to this placeeasily especially young people. The coffee and snacks will be available at reasonable prices asmajority of the coffee consumers are students who are not in the earning mode. In the Marketingplan, proper analysis of finance, the marketing analysis, target segmentation and industryanalysis are discussed. Furthermore, the marketing strategy, 4 Ps and ethical and legal issues arediscussed.The Business ChallengeThere can be multiple challenges involved in the opening of a coffee shop especially if a newbusiness is launched. There are multiple bars for coffee available in the market and all are havingestablished goodwill and reputation. For a new business to be launched, it is important toadvertise for it and make consumers aware about the product and the unique feature of thatproduct. Therefore, the biggest challenge for the Caramel Coffee bar is to establish the name andreputation of this shop among the already existing brand names. Also, it may face the challengeto formulate the strategies for pricing, distribution and promotion of its services and products.Initially, the Coffee bar has to bear a lot of cost to make the efforts fruitful and prolific.
Situation AnalysisAnalysis of the situation is a significant factor where we get the idea of theenvironmental situation which can impact the new business. For this,PESTEL analysis is done:Political Factor: the high standards which relates to methods of producing coffee are very significant in the industry and it can also get the prominence in the political environment. The pressure that is increasing day by day for the business to operate ethically and morally, that is, economically, environmentally, sociably responsible. This gets reflected in the industry of coffee by the raised and increased market value and demand for sustainable and the certified fair trade and coffee which guaranteed a justified price to the producers.This is reflected in the coffee industry by an increased demand and rising market value for sustainable coffees such as certified coffee and fair trade coffee, which guarantees a fair price to producers. The fair trade market which is now worth £100 million, is growing with developments such as Tesco's launch of their own Fair trade range. Fair trade is also a means by which the coffee shop industry can differentiate their products and gain a socially responsible reputation; Starbucks customers now have the option to buy fair trade coffee. Oxfam have claimed there is a niche' in the coffee shop market and have responded bylaunching their own brand of Fair trade coffee Progresso' which is sold on already established premises such as bookstores.Economical:The impact of coffee on Brazilian economy was much stronger. The greater difficulty of coffee production and trade established important sectorial linkeages within the Brazilian economy. Coffee was the foundation of the economy, accounting for 63% of the country's exports. Brazilian economy went through periods of growth but also difficulties and increasing trends towards coffee overproduction. The economic performances and development prospects of many developing countries are largely dependent on commodity issues. (Photius.com, 2004)Social:The coffee market must adapt to a change in consumer attitudes or else it may be threatened by health and lifestyle issues. In 2003 the hot drinks market declined by an estimated 2.3%. Consumers, especially young people, are becoming more health consciouswhich makes coffee a less attractive choice; the increasing number of alternatives available such as health and energy drinks are becoming competitors in the coffee industry.
Research carried out by Mintel shows that there is an increased diversification of tea, with atrend towards premium and herbal teas. The coffee industry are responded to this change in attitude by provision of de-caf drinks, options such as soy milk, and alternative drinks such as freshly squeezed fruit juices, chai lattes and herbal teas.Technological:Consumers are less inclined to buy coffees and teas in supermarkets due to the wide variety of coffees that are available in coffee shops today. Hi-tech equipment and premium ingredients are now easily accessible and are used to make a variety of hot and cold beverages that are sold in coffee shops; from cappucinos to the ice blended coffees. As a result consumers are becoming more knowledgeable about the ranges of specialised fresh coffees and premium teas that are available, and their tastes are changing to accompany them.Environmental:The environmental impact is almost always positive and it is important that coffee production and processing should be taken into account for environmental needs to make sure optimal physical sustainability. Even more necessary is that the economic environmentshould be such as to encourage stability and reasonable living standards for the populationsinvolved with coffee and to make sure the sufficient care should be given to make sure the maintenance of the quality. (Change the environment.)The MarketCaramel Coffee shop possess vast knowledge about the conditions and situation of market andalso know a lot about the attributes that are common for the loyal and prized customers. CaramelCoffee Shop leverage the information for better understanding of the consumers to be served andtheir needs that are specific, so that Caramel Coffee bar can understand them better andcommunicate with those customers. As per the report of small administration of business in U.S.,70 percent of sales in coffee in the market of U.S. is realized by the leading brands of Coffeethus making the sales in coffee lucrative and representing the operating income as 2.5 % of salesand total margin of over 85 percent. The flourishing of sales of coffee shop are the result ofenthusiastic employees’ efforts, who owns strong ethics related to work. The drinks of coffee are
totally popular and famous in the United States because the consumption of coffee amounts to 75percent of total absorption of coffee in that country. This explains the 7 percent of rate of annualgrowth of coffee shops and also represent the fastest increasing segment in industry of foodservices.Needs of the marketThe Caramel Coffee shop will provide menu that will be changed almost thrice in a month andwill offer new drinks and coffees along with snacks for the consumer. This patron will earnaccess to the Caramel coffee bar with long hours of business and minimal waiting time. All theproducts will be priced competitively and customer service will be available 24 hours in a dayand 7 days in a week.Trend of the MarketThe trend of the market is proceeding towards the manner which is considered as sophisticated invarious ways:Quality of the food: Customers prefer high quality ingredients in coffee industry like assortedcoffee beans, milk powder, sugar and natural flavors as there are number of options available inthe market. Conversation regarding quality: Patrons recognize the conversation that is intellectual and canbe done in bar as the consumers of coffee are either educated youngsters or family members. According to a research, owning a coffee shop that features single-cup brewers is going upwardswhich is represented by enhancement of minimum 12 percent. Equipment of single cup brewingprovides variety, freshness and convenience as these factors keep the costs low by brewingparticularly a product that is important for every sale. Sales also rise for specialty drinks ofespresso as more shops invest on the equipment that are appropriate to provide these drinks at
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