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

Running head: MANAGING CONSUMER MARKETS
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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