Marketing Strategy for I say, Coffee Company in the UK Market

This report provides a comprehensive marketing strategy analysis for 'I say, Coffee Company' as it aims to expand into the United Kingdom's coffee market. The study begins with an executive summary, outlining the company's challenges and the use of various marketing models, including SWOT and PESTLE analyses, to understand the competitive landscape. The report delves into market research, examining trends in annual coffee expenditure and per capita consumption, and uses these variables to develop concise arguments about the market's potential. Furthermore, it employs the Ansoff matrix and Boston Consulting Matrix to assess the current market conditions and offers strategic recommendations for the company to mitigate challenges and foster business growth. The report also includes competitor matrix to evaluate the competitive landscape. The conclusion emphasizes the importance of market research and strategic planning for a successful market entry and sustained growth within the UK coffee industry. Finally, the report provides detailed tables and figures to support its findings and recommendations.

INTRODUCTION TO MARKETING

Executive summary
The study focuses on the marketing strategy for “I say, Coffee Company” and for this purpose,
the study introduces market research with the help of various marketing models. These include
SWOT and PESTEL for the concerned company. Along with this, the study has found that, the
company is facing a number of challenges from the rivals while emerging in the market of
United Kingdom. For this reason, the study takes help of Ansoff matrix and Boston consulting
matrix in order to understand the recent market condition of the concerned company.
Furthermore, the study provided recommendations so that, it will be possible for the company to
reduce challenges and to have business growth in the market of United Kingdom
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Table of Contents
Introduction......................................................................................................................................4
Task 1...............................................................................................................................................4
Task 2.............................................................................................................................................13
Task 3.............................................................................................................................................16
Reference list.................................................................................................................................21
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Introduction
Marketing refers to the process of communicating and socializing the value of service and
product to the consumers along with particular objectives to sell the products or services in the
existing marketing. As mentioned by Zhang (2015), marketing can be considered as a critical
function of business that has been utilized to attract customers. If employers become able to plan
and execute properly, then only marketing has that potential to provide better results in terms of
increased sales, higher revenues, brand image and some other. In this assignment, the concerned
company “I say, coffee company is trying to expand into the coffee industry of United Kingdom.
For this purpose, the main aim of the study is to provide a better understanding of how
marketing, planning, research and marketing mix can be used so that, the concerned company
can have an attractive entry in the coffee industry. It is worth saying that, marketing is not only
profitable to the marketers but also to customers and for this purpose, the another focus of the
study is to deliver some recommendations in the latter part so that, company can make the
products more attaining to the customers. From the market research, it can be stated that, UK
coffee shop market has been enjoying biggest period of growth since 2011 and the market was
valued at near about £ 2.2 billion that time. Over the past year, the industry has improved its
market up to £ 3.4 billion. Researchers expect that, the market value of this industry is going to
reach £ 4.3 billion within five years. In this scenario, the concerned company expects that the
entry in the coffee industry will be profitable and thus the aim of the study is to focus on market
research so that, I say, coffee company can enter in this industry smoothly.
Task 1
Developing indicators
The coffee company ‘I say, Coffee Company’ is trying to expand their market indifferent cities
of United Kingdom. In order to expand the market the organization has started a market research
to understand the market condition of United Kingdom. Through the market research, the
company is also trying to set a target market for which they can be able to maximize their profit.
In order to understand the condition of market the research analyst has chosen different variables
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on the basis of which the company will be able to get the information about market. Apart from
this, the information about the target market will also be collected. In this regard main variables
are the per capita consumption and the annual expenditure on coffee. The organization is trying
to observe the trend on the consumption and annual expenditure. If the variables have the
increasing trend then it will be easier for the organization to expand market. The expansion of
the organization will depend on the trend of the variables. In this regard, the organization and the
market research analyst will take the help of the statistical measure in order to find the trend.
Year Total annual expenditure on coffee (Billion)
2005 2928
2006 2803
2007 2826
2008 2791
2009 2867
2010 2733
2011 2587
2012 2712
2013 2739
2014 2976
2015 3225
2016 3185
(Data of annual expenditure on coffee in UK)
According to the data from the year 2005 to the year 2016, the expenditure on coffee has
increased. In the year 2005 the annual expenditure of people of United Kingdom was 2928
million and in the year 2016 amount of annual expenditure was 3185 million. Therefore, it is true
an increasing trend is there in the annual expenditure on coffee for which it will be easier for the
company to expand their market (Sillani and Nassivera, 2015).
In order to understand the market trend the research analyst has developed the market trend and
developed a bar diagram from which it is clear that from the year 2005 to year 2016 there was
increasing trend. On the basis of the trend the research analyst will be able to infer that the
increasing trend will be continue because most of the people in UK like to consume coffee.
Without the observing the trend it will be difficult for the company to infer about the future
market because if the future prediction of the research analyst will wrong then there will be a
adverse effect on the business of the organization.
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Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
500
1000
1500
2000
2500
3000
3500
Total annual expenditure on coffee
(Billion)
Total annual expenditure on
coffee (Billion)
Figure 1: Trend of Annual expenditure
(Source: self developed)
Year
2006
2008
2010
2012
2014
2016
0 500 1000 1500 2000 2500 3000 3500
Total annual expenditure on coffee
(Billion)
Total annual expenditure
on coffee (Billion)
Figure 2: Trend of annual expenditure on coffee
(Source: self developed)
According to both the diagram, it is clear that the company is getting a strong market able to get
strong customer base because most of the consumers in United Kingdom has spent huge amount
on coffee.
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Apart from this, the next variable is per capita consumption on coffee, which is more important
because on the basis of this the researcher and the organization will take the decision to expand
their market. The market expansion of ’I say, Coffee company’ is depend on the variable on the
per capita coffee consumption of UK. In order to observe the trend of the variable the researcher
has collected the data on this variable and on the basis of the variable the researcher has tried to
infer the future coffee market condition of United Kingdom:
Year Per capita consumption of coffe (Billion)
2005 1925
2006 1934
2007 2023
2008 2106
2009 2371
2010 2398
2011 2482
2012 2688
2013 2739
2014 2935
2015 3123
2016 3058
(Data of per capita consumption on coffee in UK)
On the basis of the data it has found that there was a increasing trend because in the year 2005
the per capita consumption was1925 and in the last year 2016 the per capita consumption has
increased and it was 3058. Therefore, the consumption of coffee is increasing in every year. In
addition to that, to provide the clear a idea about the trend of the variable the researcher can
show the data throw the line diagram and through the bar diagram for which the trend of the
variable will be observed clearly (Gunz, 2015).
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Year
2006
2008
2010
2012
2014
2016
0
500
1000
1500
2000
2500
3000
3500
Per capita consumption of
coffee (Billion)
Per capita
consumption of coffe
(Billion)
Figure 3: Trend of the per capita consumption of coffee in UK
(Source: Self developed)
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
0
500
1000
1500
2000
2500
3000
3500
Per capita consumption of coffee
(Billion)
Per capita consumption of
coffe (Billion)
Figure 4: Trend of per capita consumption of coffee in UK
(Source: Self developed)
Developing the concise researched argument
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Therefore, it is clear that, both the variable has the increasing trend and based on this trend the
researcher can be able to state the future market condition of coffee in United Kingdom. On the
basis of the trend, the researcher has stated that in future the market will also have the increasing
trend without any kind of economical shock. In this situation, If the organization ‘I say, coffee
company’ will try to expand their market then it may be a successful attempt for them because in
future they will be able to earn maximum number of profit (Chen et al. 2013).
Apart from this the another variable can be taken by the research analyst and which is the
purchase trend of coffee in United Kingdom and based on this variable the research analyst will
be able to infer the future market of the coffee in United Kingdom (Kalimullin and
Dobrotvorskaya, 2016).
Therefore, the researcher will try to infer the future market on the basis of the current market
situation. In this regard, the prediction may be wrong and in order to make the more accurate
prediction about the future market then proper statistical model has to be developed and
hypothesis testing is required otherwise there may be the adverse effect on the business of the
organization. In order to make profit, the organization has to follow the market research analysis
of the researcher (Armstrong et al. 2016).
Developing the marketing models
SWOT analysis
In order to understand the market condition the organization and the market researcher will take
the help of SWOT analysis because with the help of it the organization will be able to know
about the strength, weakness, opportunities and threat. In this case, the organization has the
opportunity to get maximum profit because of the promising market. The better quality of coffee
is the strength of their company. The main weakness of the organization is their inefficient
employees because the employees of the organization ‘I say, coffee company’ is not efficient.
Apart from this, the threats of the company are that the operation of new company and existing
companies because without any policy the company will not be able to compete with those
existing companies (Laroche and Teng, 2015).
PESTLE analysis
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Through the PESTLE analysis, the researcher will be able to inform the authority of the
organization about the political factors, economical factors, technological factors, legal factors
and the environmental factors. In this case, the political condition of the United Kingdom is more
stable than any other state. The economical factors are also strong in the market of UK because
the demand of coffee in UK is increasing day by day so the organization will be able to get a
strong market in UK. The consumer has the preference and the social structure of UK is
influencing the people to consume more coffee. The technological aspect of the market will also
very strong. The legal factors of UK market are also very strong and it helps the organization to
continue their production. The environmental factors of the company is also very strong and
based on this the company has to develop a proper production process without this the
organization will not be able to maintain the environmental factors of the market (Cohen et al.
2015).
Competitor Matrix
With the help of this analysis tool the organization is able to understand the strength of their
other competitors and based on this the organization will also be able to show their competitive
advantage. It helps the organization to produce easy to read portrait of their competitive
landscape. In this case, based on the different factors this matrix will be developed and in t6his
case those factors are:
Low price, Superior quality, onboard controls, training of operators, customizable products and
rapid delivery can be considered as the factors. In order to develop the competitive matrix the
five competitors of the organization are:
Factors I say,
coffee
company
Mr Duffins
Coffee
Earlscroft
Farm
Makushi
Coffee
Roasters
Koffy Javabean
Low price 4 5 4 2 3 1
Superior
quality
5 4 4 2 3 2
Onboard
controls
yes no No yes Yes No
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Training of
operators
yes no No No No Yes
customizable
products
5 3 3 2 4 2
Table 1: Competitor matrix
(Source: self developed)
The Boston Consulting Matrix
In order to know the market share and growth rate the organization and the research analyst has
to collect the data about the market share and growth. Without the data of these two factors, the
organization will not be able to know their market position. In order to develop the Boston
Consulting Matrix a four quadrant chart has to be developed in which the market share of the
company will be measured on the horizontal line (low left, high right) and the growth rate will be
measured in the vertical line (low bottom, high top). The four quadrants are designated as stars,
question mark, cash cows and dogs (Hallbäck and Gabrielsson, 2013).
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Figure 5: Boston consulting matrix
(Source: self developed)
Ansoff Matrix
With the help of this matrix, the organization will be able to know more about their business
strategy. In this case four factors are there on the basis of which the organization will be able to
know much developed they are and able to compare with their existing market.
Figure 6: Ansoff matrix
(Source: self-developed|)
Analyzing the opportunities for the company
Therefore, it is clear that if the organization is able to expand their market in United Kingdom
then they can be able to earn the maximum number of profit. In this regard, the proper marketing
strategies has been developed by the market research analyst and the analyst is able to show that
if the organization will expand their market then they will be able to capture a huge market share
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