Marketing Plan for Coffee House

This assignment involves analyzing the marketing plan for a coffee house, which requires approximately 20 million pounds to be successful. The plan includes three Ps of marketing communication: product, price, and promotion. It also mentions the importance of stakeholder satisfaction and effective engagement in marketing plans. The analysis is based on various sources, including books, journals, and online articles.

MARKET
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................1
CONTEXT ANALYSIS..................................................................................................................1
OBJECTIVES OF MARKETING COMMUNICATION...............................................................2
SEGMENTATION, TARGETING AND POSITIONING.............................................................2
STRATEGIES FOR MARKET COMMUNICATION...................................................................3
CREATIVE INTERPRETATION...................................................................................................4
MESSAGE ISSUES........................................................................................................................6
MARKET COMMUNICATION MIX............................................................................................6
MEDIA MIX....................................................................................................................................7
BUDGET AND SCHEDULING.....................................................................................................7
EVALUATION AND CONTROL..................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Market communication is the core business function which helps the organisation in
communication with its customers. Analysing communication plan before staring establishing
business operation plays an important role for the firm in managing successful launch of an
enterprise. The report will evaluate marketing communication plan of X Refreshments group
PLC in comparison to leading competitors that is Starbucks and costa coffee. Further, it will
outline objectives of communication on the basis of which firm will make further strategic
analysis that is STP, branding dynamics, sales, promotion, etc. Thus, the plan will identify
budget and scheduling of project which will be presented to board of directors.
CONTEXT ANALYSIS
Market communication plan is the sequence which helps the firm in determining various
issues which needs to considered before launch. Marketing team of coffee house will be focusing
on three measures which are described under:
Industry issue: These issue are related to rivalries in industry which will assist in
determining need of innovation in product. Like the key competitor of X coffee house in UK will
be Starbucks and Costa which shares strong presence in global market regardless of its high price
services. Further, the companies have loyal customers worldwide which defines its strong brand
value. However, Costa have 2218 coffee shops outlets across UK whereas Starbucks has 898
outlets. Therefore, it is important for X coffee house to launch at least 200 outlets in order to
attain competitive advantage.
Customer issues: Analysing consumer preferences for coffee is the foremost priority
because, it is the seed of business. However, Starbucks and Coast coffee houses are already
market leader for beverages and have loyal consumers. Therefore, in accordance to market
condition, it is important for the refreshment group to analyse the weakness of existing coffee
houses in accordance to buyers habits, and consumption patterns (Breton and Martín, 2011).
Stakeholder issues: These are the individual who shares complete interest with
organisation and its functions. The stakeholder group comprise, customers, employee,
shareholders, creditors, auditor etc. Apparently, with regard to marketing communication plan it
is important for the management to seek advise from employees, shareholders, and suppliers
about best market strategy to attract consumer. In this it is essential for the organisation to first
analyse the interest of stakeholders with the help of mapping.
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OBJECTIVES OF MARKETING COMMUNICATION
Evaluating marketing communication objective is the part in which the management aims
at setting SMART goals, that is the objective which are specific, measurable, achievable,
realistic and time bounded (Gupta, 2017). Implementing plan as per SMART goals is the strategy
which assist the firm in making successful marketing plans. Thus, marketing communication
objectives of X refreshment group are as follows:
Brand Awareness targets: Brand Awareness is the measurable goal which helps the
firm in promoting awareness about launch of new services. In this the motive of organisation will
be to attract consumer for which the management will target to specifying the quality and
premium coffee beans which will used in house. Further, to create brand awareness, the firm will
implement the use of social media advertising, magazines, promotion, vents at prime location
and public relations. Thus, the brand awareness target of coffee house is to seek attention of 80
percent society
Share of Voice: It is online advertising model which helps the firm in adversing
according to other advertisements. However, with the helps of this model, the firm will be able
to analyse its advertising achievement in comparison to rivalries like Starbucks and Costa
Coffee. Measuring strength of advertisement is the approach which determines achievable
marketing goals of refreshment group (Satit Tat and Sukati, 2012).
Positioning objective: It is the tool which helps the firm in determining effective
marketing technique which can be used by firm to make Crete market existence. In this the
motive of coffee house will be focused on developing its own market position by its successful
marketing efforts in which the objective will be to promote about uniqueness of its coffee house
like, premium quality bean, additional free snack with every coffee etc.
Projected level of footfall: This is specific, measurable and achievable goal of group. In
accordance to this, marketing team will focus on determining response of people on launch. It is
very important responsibility of marketing department because, it helps the organisation in
analysing consumer response to launch of products and services.
SEGMENTATION, TARGETING AND POSITIONING
It is a marketing approach which helps the company dividing market in different segment
in order to each and every person. The motive behind implementing use of this approach to set
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specific position in market by targeting each and every person who prefers coffee and other
related beverages. The STP plan of X refreshments group is as follows:
Segmenting: In this the coffee house will segregate demographic factors as per age
group, professional and social class (Huotari and Hamari, 2012). Further, by dividing individual
according to demographic factors the marketing divide individual according to their taste and
preferences like teenagers prefer chocolate drinks instead of espresso, whereas professionals
mostly prefer caffeine and espresso. Further, the management will focus on behavioural
segmentation in which the focus of firm will be analyse consumer changing preferences
according to their socialising behaviours. Thus, analysis of consumer preferences is the approach
which helps the firm modifying products and services according buyers' taste and preferences.
Targeting: After segmenting the marketing team will be focusing on targeting where the
firm will not target one single segment instead it will focus on segmentation as a whole.
However, for targeting the firm will focus on different strategies of reaching consumer but the
approaches will be focused on marketing mix factors that is coffee products, pricing, place and
promotion. Apparently, for successful targeting the organisation will be focusing on offering
discounts at launch day (Reimann, Schilke and Thomas, 2010). Further, plan is to offer free
snack with every coffee, extra 15 percent discounts most consumer preferred choices that is
espresso, hot chocolate and latte.
Positioning: For positioning the focus of marketing team will be on Television and social
media advertising because these are two channels which trafficked with maximum buyers.
However, for positioning the focus of refreshment group will be on providing relaxing
atmosphere with mild chill temperature. The firm will also allow indoor and outdoor sitting in
order to attract consumers. In addition, the environment will be based on providing ease to
stressed day of people. Apart from this, to successful positioning the company will also sell it
premium quality beans for personal use, which will help the organisation in developing trust on
business and its operations.
STRATEGIES FOR MARKET COMMUNICATION
It is important for the business to implement the use of 3P's of market communication
which helps the company in determining product line down the distribution line. Further, the
approach assist in determining use of the best communication strategy in order to reach
consumers. In addition, it also helps the enterprise in determining promotional goal profile
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strategy in order to serve stakeholder satisfaction. Marketing communication plan with helps 3
P's of X refreshment group is as follows:
Push strategy: In this the company will first analyse the availability of substitute in
market like, rivalries and their products. It will help the coffee house in making innovation in its
products. Innovating products in comparison to already existing products is the strategy which
helps in seeking consumer attention (Shankar and et. al., 2011). In this the firm will ensure that
marketing and sakes team is directly interaction with buyers in order to analyse their preferences.
This one to one interaction is push to increase sales in order to establishing existence in new
market.
Pull Strategy: It is the promotional strategy in which the focus of refreshment group will
be to attract buyers via public relation offering discounts on social media advertising etc. For
attracting buyers on launch the marketing team has planned to offer 25 percent discount to all
customer on their first visit. With purchase the organisation will offer their own merchandise to
make their visit memorable with X refreshment group. Effective promotional plans are
associated with pull strategy where the focus of organisation is to make brand loyal consumers.
Profile strategy: In this, the focus of firm to develop good relation with stakeholders by
implementing use of public relations, sponsorship, corporate advertising. Thus, in this
communication, the focus of marketing will e connect with buyers one to one through event or
communicating via social media platform.
CREATIVE INTERPRETATION
Brand awareness is the key function of marketing communication and launch plan. To
make launch successful and to promote services X refreshment group the firm will implement
the use of Keller's brand equity model. The model is based on identity, meaning, response and
relationships (Liu and et.al., 2017). However, with the helps of identity approach the coffee
house will focus on making consumer aware about company and its products. In this the focus of
organisation will be share some benefits, like discounts, quality and favourable outcomes if
consumer will prepare services of X coffee house. Attracting consumer with one spic message
and benefits is the approach of developing identity. Further, there is, meaning which the focus on
X coffee house will be use make use of environmental friendly services that is less consumption
of natural resources, providing excel consumer services like fast billing, appropriate table service
and well mannered staff help consumers.
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Furthermore, the pyramid comprise Response, in which the company will aim at
delivering high quality service which will include stress free ambience, hygienic wash room
facilities, and quality service (Aljukhadar and Senecal, 2011). Lastly, there is relationship for
which it is import for refreshment group to make its services unique in comparison to
competitors. For this, the marketing will be focused on developing brand loyal consumers with
unified community which represents brand.
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Illustration 1: Keller’s Brand Equity Model
Source: (Keller’s Brand Equity Model, 2017)

MESSAGE ISSUES
“Freshly Brewed Coffer, Drink And Realise Stress” will be key message of marketing
communication. The promotional message is based on promoting unified coffee house products
and consumer views point of coffee. Analysing key message for promotion is the responsibility
because it is thing which attract consumer attention in first sight. Thus, as per model it is based
on attitude of buyers and information about coffee house (Breton and Martín, 2011).
MARKET COMMUNICATION MIX
It comprises every tool and efforts which are made by firm to communicate with buyers
and to create awareness. It will comprise:
Advertising: In this the focus of firm will to make use of every marketing promotional
strategy to gain consumer attention like social media advertising where the firm will focus on
visual representation, newspaper and magazines where written information about company and
its information will be shared.
Sales Promotion: In this the coffee house will plan for direct interact but society for
which the firm will organise corporate events and promotional campaigns by which the
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marketing team will be able to analyse taste and preferences of firm on coffee house and its
services (Miller, 2017). Thus, it will help in analysing interest of society and consumers over
coffee products.
MEDIA MIX
Implementing use of media is the foremost function of marketing as it is based on
promotion and reaching to consumers. In this the focus of firm will outdoor marketing where the
firm will implement the use of various marketing tools that is magazines, newspapers and
internet. These are sources which are in reach of almost every person ins society. Therefore, the
coffee house will advertise on newspaper for like 3 days in a week in which the focus of the firm
will be on promoting its launch and developing its is existence in market. The newspaper is the
source which is in reach of every person because the society seeks for updates in this tool media
(Shankar and et. al., 2011). Apart from this, the firm will focus on social media advertising on
which the marketing team will aim at creating awareness about the unique services of coffee
house. In this the firm will share image of merchandise ambience and location. This visual
representation of company and its products is the approach which will assist in gaining consumer
attention. Combining communication channel that the time of marketing to connect will buyers is
the strategy which helps the organisation in creating awareness among people from different
place. X refreshment group limited will include combination include newspapers, radio,
television, billboards, websites, email, direct mail, the Internet and social media.
BUDGET AND SCHEDULING
Activities/
Time
May June Jul Aug Sep Oct Budget
Newspaper 1
Magazines 2
Digital
marketing
3.5
Promotional
campaigns
5
Direct
mailing
0.5
Public
relation
events
3
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Corporate
Events
4
Television
advertising
LAUN
CH
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TOTAL £20M
In accordance budgeting and scheduling, it has been determined that the majority of
budget will invest on promotional campaigns and corporate events. These are two advertising
and technique which helps the organisation increasing to maximum consumer and are expensive.
Further, newspaper and magazines advertising helps in connecting with every person in society
regardless of segmentation.
EVALUATION AND CONTROL
Establishing control over marketing plan is the approach which helps in controlling
uncertain condition and risk which can arise before launch. Thus, evaluation of marketing
communication and strategy will be done by following:
Pre testing: In this the company will not launch every advertisement altogether, first it
will launch at one placed to determine consumer reaction.
Tracking: The marketing and sales team will keep check on budget and consumer
response to marketing and promotional campaign.
Post testing: The coffee house will test and tract the performance of marketing plans
after launch. Thus, it will assist the firm in analysing successful efforts of marketing plan.
CONCLUSION
The report summarized marketing communication plan of X refreshment group which is
planning to launch its 200 coffee outlet across UK, against its biggest competitors Starbucks and
Costa. Further, it discovered Marketing Communication objectives of X coffee house which are,
Brand awareness targets
Share of voice (SOV), Positioning objectives
and Projected level of footfall. It outlined 3 P's of marketing communication which used by
organisation to serve stakeholder satisfaction and to engage effectively in marketing plans.
Thus, it concluded with analysing budget and scheduling of marketing plan of coffee house
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which represent that the company requires approximately 20 million pound to make successful
marketing efforts before launch.
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REFERENCES
Books and Journals
Breton, G. C. and Martín, M. O., 2011. International market selection and segmentation: a two-
stage model. International Marketing Review. 28(3). pp.267–290.
Gupta, A., 2017. Purpose and challenges in the way of green marketing in India-A conceptual
study. IJAR, 3(3), pp.898-900.Kennedy, M., 2017. Rubric for Assessment of Your
Marketing Plan for E-Resources.
Satit, R.P., Tat, H.H., and Sukati, I., 2012. The relationship between marketing mix and customer
decision-making over travel agents: An empirical study. International Journal of
Academic Research in Business and Social Sciences. 2(6). p.522.
Huotari, K. and Hamari, J., 2012, October. Defining gamification: a service marketing
perspective. In Proceeding of the 16th International Academic MindTrek Conference
(pp. 17-22).
Reimann, M., Schilke, O. and Thomas, J.S., 2010. Toward an understanding of industry
commoditization: Its nature and role in evolving marketing competition. International
Journal of Research in Marketing. 27(2). pp.188-197.
Shankar, V. and et. al., 2011. Innovations in shopper marketing: current insights and future
research issues. Journal of Retailing. 87. pp.S29-S42.Wang, Y., 2017, July. Research on
Project Management in Enterprise Marketing. In Modern Management Forum (Vol. 1).
Liu, Y.,and et.al., 2017. The Effects of Products’ Aesthetic Design on Demand and Marketing-
Mix Effectiveness: The Role of Segment Prototypicality and Brand Consistency. American
Marketing Association.
Aljukhadar, M. and Senecal, S., 2011. Segmenting the online consumer market", Marketing
Intelligence & Planning. 29(4). pp.421–435.
Breton, G. C. and Martín, M. O., 2011. International market selection and segmentation: a two-
stage model. International Marketing Review. 28(3). pp.267–290.
Miller, K.K., 2017. Catholic School Enrollment: A Study on the Impact of a Marketing Plan in a
Catholic School (Doctoral dissertation, University of St. Francis).
Shankar, V. and et. al., 2011. Innovations in shopper marketing: current insights and future
research issues. Journal of Retailing. 87. pp.S29-S42.
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Online
Keller’s Brand Equity Model. 2017. [Online]. Available through: <http://www.free-management-
ebooks.com/news/kellers-brand-equity-model/>.
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