Managing Consumer Markets: Developing a Digital Marketing Application for Food and Beverages

This report focuses on developing a digital marketing application for food and beverages in a cafe. It includes situational analysis, SWOT analysis, marketing environments, market segmentation, targeting strategy, positioning, importance/performance matrix, and sustainable marketing.

Running head: MANAGING CONSUMER MARKETS
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Managing consumer markets:
Name:
Institution:

MANAGING CONSUMER MARKETS
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Managing consumer markets
PART 1
Introduction
Digital marketing is referred to the marketing of goods and services by use of digital
technologies which includes internet, mobile phones, and display advertisements. The purpose of
this report is to develop a digital marketing application for food and beverages. And in order to
gain experience on how the company APP will be developed , we visited one of the café as a
mystery shopper to make some observation on how the APP will be used and how the food and
beverage product will be marketed in the company (Dodgson, Gann, Wladawsky-Berger, Sultan,
& George, 2015). Also, the scope of this case to give a clear guideline of the marketing
environment of the café and the café business positioning. The sources of data for marketing and
apps implementation will be from observation after visiting the café. The limitation which café
may experience is a poor marketing strategy and lack of suitable marketing. The planning for the
proposal is by gathering materials which will be used in the marketing and development of the
apps in the café (Lindgreen, 2017).
Situational Analysis
Situational analysis is referred to as a group of methods that marketing research team will use in
analyzing the company external and internal environment to gain more insight into the
company's customers, business environment and capabilities.
Description of the live café
The café deals with digital marketing for food and beverages. The café service product is
classified as the one which has tangible and intangible features. In the café, many of the
attributes are intangible since these attributes can be smelled, touched or tasted by the customer

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before consumption. Thus it is very difficult to access on the crucial features of service products
with an intangible attribute of the higher proportionate such as service quality. The café can be
explained using the unique service characteristics which include Intangibility when an individual
acquires a café, they can feel and see it thus in general terms tangible qualities gives information
to the customers so that they can compare one service with another. Services are intangible and
cannot be experienced until it is purchase.
In terms of the inseparability, the services are unique since they can be produced and consumed
at the same time at the same place. The products in the café are perishable as compared to
services which are not perishable. These features are unique to the service products since they
place the service product in an environment which is suitable for meeting the needs of the
customers.
SWOT analysis
The strengths of food and beverages café include the following; the new developing technologies
such as APP in the café will importantly reduce the overhead costs. Also, the café will offer
several of the food and beverages which leads to more customers coming to the cafe and strength
is that café should offer art of amenities to their customers such as Wi-Fi, flat-screen TV for the
customer's leisure.
The weaknesses of the café are when starting a new café then there could be poor consumer
confidence and uncertainty thus their competitors will be better. Also, a financial resource which
includes investment opportunities, funding and income source which impact the market of foods
and beverages (Swani, Milne, Brown, Assaf, & Donthu, 2017).

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The opportunities of the café include the use of the internet to market their food and beverage
products to their esteem customers using less money. Another opportunity is that opening the
café up too late hours may lead the increase in the café market shares (Hannington, 2016).
The threats of the café are that the tactics and new marketing strategies from already established
café may limit potential market shares and sales. Also, trouble economic deficits will lead to
long term bail and as a result, it will be difficult for the company to finance their café operations.
Marketing environments
The economic forces can affect the marketing environment of the café since the unemployment
rates and country tax rates can greatly have an impact on the café. The healthier foods are more
costly as compared with fast meals. Foods taxations, interest rates, and consumer spending
greatly impact the opportunities and options in the cafe. Also, other economic factors affect the
café which includes the health of the economy and the minimum wages.
There are two main economic concerns for the marketers, changing in the consumer spending
patterns and income changes. Changes in the income may show the trends and may decrease
sales of the food industry. And the decrease in sales may clearly explain the depressions in the
market. The consumer spending patterns refers to how the various household use their money in
buying the meals. Through monitoring of cases of unemployment, business, interest rates,
consumer confidence, and business by utilizing the economic focus fast food outlets will help to
solve the case of the economic depressions. Economic forces can be used by the management of
the cafe to foresee the rates of the future sales and suggest the number of employees needed and
the types of services needed (Schnackenberg, & Tomlinson, 2016).
Political forces, the café is usually limited to the political environment. These political forces
will lead to the establishment of laws which will restrict the café from making some

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commitments towards the achievement of the café goals. The decisions in marketing are greatly
affected by the developments which occur in a political environment. Before diversifying in the
new market, they should be able to have a good knowledge of political and legal environments.
By considering how the legislation will impact the operation of the café, the rules which café
will be needed to obey and what laws limit the café to prospering. For instance, there are define
laws which govern the product safety regulations, pricing, competition and protection of the
environment which needs the café to adjust certain aspects and strategies to the new market.
Using the market mix to reach a market segment
Strategy Target market
Mass marketing Anybody everywhere
Niche marketing A large group within the market
Differentiated marketing High penetration within the smaller segment
Micromarketing Individual customers
Market segmentation is a kind of research that the café will use in dividing their customers into
smaller groups based on various features which include income, age, and the behavior. These
segments can be used later in optimizing the products and in advertising it to different customers.
Geographical segmentation is the main target in the establishment of the café. Geographical
segmentation entails selecting of the potential market based on where they are located. This
method of segmentation may consider various changes such as natural resources, population
density, and climate. Markets should be divided into various regions since one or more variables
may different from customers from different geographical areas. For instance, people who live in
cold places require many cafes since there are high demands of tea and coffee.

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Target marketing strategy
Targeted marketing will allow sales and marketing teams to reach a group of different customers
all over the world. The targeting strategy is where the marketing mix joins together to make the
marketing method for every target segment. The target marketing strategy which will be used in
the café is differentiated marketing strategy (Lee Jang Kim Choi & Ham 2019). This kind of
marketing strategy will target a given number of segments. This marketing strategy is known as a
coverage marketing strategy since it includes creating café products or services offerings, and it
allows creating a market for each segment. Therefore the café is required deep market research
so that that they can learn how they will satisfy their customers in the market. Through using
differential marketing strategy the café which is established will enable to meets the consumers'
needs since they will provide services which will meet the customers’ needs (Rajkumar, and
Abraham, 2018).
Positioning
Café will utilize perceptual or positioning maps to help them in creating a positioning strategy
for their service or products (Chitty, D'Alessandro, and Gray, 2019).
Since the maps are sometimes based on the buyer's perceptions then at sometimes it is called
perceptual maps. Positioning maps will clearly show where the current products or services are
positions in the market so that the café will decide on where they will place their products. The
café will have two options they will be positioning their products so that they can fill the existing
gap in the market or they want to compete with their competitors they will do so by positioning
where there are existing products in a given location (Rashid & Ghose 2015).
The marketers in the café should build their products and services positioning strategy so that
they can improve the customers’ perceptions of the products. The effective positioning of the

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product has four crucial characteristics which include the following first is that creating around
the benefits for the esteem customers. They will distinct the café product and services to that of
their competitors. The third is that the café should have the required skills personals, resources,
and credibility so that they can deliver the required services to their customers. Lastly is that the
café should have defensive strategies so that their competitors will not overtake them. And also
they should find a good place for their businesses where the customers are consuming their
products in a larger amount.
Importance/Performance matrix
Mystery shopping is a very crucial component for measurements of the customer experiences
and valuable complement to any customer satisfaction program. My experience as a mystery

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shopper is when I enter into a certain café in the popular town and I ordered a meal and a drink.
During my experience, I observe the performance of the café using various marketing mix such
4Ps of marketing which includes product, price, place, and promotions also I use the 3P of
services which includes process, people and physical evidence. In terms of the attribute
improvement of the café (alil, Fikry, & Zainuddin, 2016). The café contemplating in the
improvement of the café to the attributes of its products will be highly interested in the amount
of money which will be used in the modification of the products in the market. The café
improvement is very crucial in deciding whether or not the attribute improvement is profitable.
The attribute in the café is well maintained when the performance of the business is very high
and the customers are receiving high-quality services. The attribute of maintain will be seen
when the company is experiencing day to day increase of the customers and the profits of the
café is increasing each day. The attribute maintains and attributes deemphasize is very is not
much to determine the performance and importance of the case since customers do not see it as
important. This attributes at the lower side of performance/ importance matrix will not be as
must important to the customers since the customers greatly focused on the attributes of
improvements and also that of good performances (Gbadeyan, Oduro, and Boohene, 2019).
Sustainable marketing
Sustainable marketing is a part of the larger field of suitable community development.
Sustainability is an act of meeting the present’s needs without compromising the ability of the
coming generation in meeting their needs. The evidence that identifies that the service product is
engaging in sustainability marketing practice can be explained using the 3 pillars which include:
social, economic and environmental. Economic sustainability is greatly used in defining various
strategies that will encourage full use of social-economic resource for their best of the

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advantages. An economic model which is suitable will encourage equal and effective allocation
of resource when establishing a café. The suitable marketing idea is to encourage the utilization
of the resources in a good manner so that the café will earn lots of profits. A more profitable
business will remain stable and it will operate from year to year due to the suitable marketing
strategy (Biraghi, Gambetti,& Pace 2018). Economic sustainability entails making sure that
various cafe makes a lot of profits and making sure that the operations of the café do not affect
environmental and social issue which may be harmful to café long term success (Helsen, 2018).
For the café to be sustainable then it should have approval and supports from the community,
workers and shareholders in which the business is operating to achieve the support then the
business should treat community and employees fairly both globally and locally. The café will
use the engagement and retention strategies to encourage their employees in providing services
to the customers all over the country. The business will engage the community through
fundraising and in doing so it will increase the attitude of the community towards the café
(Anderson 2017).
In terms of social issues, the allocation of the café and the products which they deal with should
favors various people in a certain geographical area for instance if the company wants to
establish a café in a certain place then they will have to diverse on whether that location will fit
the selling of food and beverages. The company should hire marketers who will be responsible
for diversifying into the market to find if the starting of the café in a certain place is suitable. In
addition other people are prohibited to use certain food and beverages, thus it is good for the
café, to find a good location where they will gather many customers thus making the café
business to be more sustainable.

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The service product which is given by the café is environmentally friendly since when the
product is being marketed then the marketers explain clearly to the consumers on the effects of
the products to the environment as a normal case the product which is less harmful to the
environment is the best products to be used by customers.
Conclusion
Digital marketing will give the café a wide market in reaching the many customers and
explaining about their products. Situational analysis is the methods which are used by the market
researcher in determining the best method of marketing. The situation analysis is used in
describing the structure of the café, it also explains the marketing strategies which the café will
use in advertising the products to their clients, describing the target market and the positioning of
the café. Importance and performance matrix explains clearly about the experience the person
encounters during the mystery shopping at the café where they go and order meal and drink
(Keith Naumov & Sterman 2017). Also, the marketing sustainability will be used in explaining
the case where the presents situation of the café should meet the present’s needs of the customers
without having any impacts on the upcoming generations. The sustainability is discussed using
the three pillars which include economic, social and environmental.
Part 2
During my visit to the café as a mystery shopper, I observe that the services to the customers
were very slow due to that the digital APP the café was using at that time has only one pre-order
page. The overall goals of the APP are that it will increase the customer's services and the
customers will save their time during taking their meals and drinks in the café. The goals of the
APP will be increased by adding pre-order pages

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Due to that there are multiple goals for the APP the goals will allow the adding of pre-
order pages, will be the one which is very suitable since this APP allows that when the customers
preorder the meal and the order is placed into pre-order status then it will allow the stock of meal
ordered to be deduced from the inventory page (Rashid Cohen & Ghose 2018). The Users of
the APP are the customers and the employee of the café in that the APP will allow customers to
order the meals and drinks online and then give the order to the employees of the café so that
they may be served by the café workers. The competitors now are struggling to make the APP
available to all the customers so that the customers can order the meals from all where they are,
this will allow the café to plan for the amount and which meals are mostly preferred by the
customers. The competitors will address the issues by making sure that they employed high
qualified personnel who will be responsible in developing the APP which will be simple for the
customers to use it in order the foods (Biraghi, Gambetti, & Pace 2018). In addition competitors
will make sure that the APP which developed comes with the ways and step by step procedures
on how to use the APP.
In conclusion, there are many marketing principles which have been identified; first of all, the
APP which will be developed should be user friends so that the customers will not find any
unique problem in ordering the meals in anywhere they are. Also, the APP should not occupy a
lot of space for customer’s devices. And it should be attractive so that it will capture the
customer’s attention as they are trying to order the meals. Also, the APP should not be
complicated to be used by both the café employees and also the esteem customers of the café.
Problem set
the scene
Identify the
gap
The solution to the problem using images

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The problem
with the
existing APP
is that it does
not allow the
quick serving
of the
customers.
The APP
should be
developing so
that it can
allow
additions of
the preorder
pages.
The solution to the problem using images

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The solution to the problem using images

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The solution to the problem using images

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