An Introductory Study on Marketing Strategy for a Coffee Company

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 100015002000250030003500
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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