Assignment on Market Selection and Entry Strategy

Part 1(ppt) . Danes coffee (https://www.danes.com.au) in china …..expanding danes coffee in china so as an expert …..where you will go to market and explain the rationale for your choice. You will then provide recommendations for the following: • Slide 1-Market selection and entry strategy • Slide2-Competitive strategy • Slide3-Pricing strategy • Slide4-Promotion strategy • Slide 6-Distribution strategy • Slide 7-Concluding recommendations Please provide charts and figures in each slide showing deep research You are expected to read widely to support your analysis and justify your recommendations. You must include at least 18 references to support your ideas. I suggest you use the CQUniversity library database, industry reports, and Google Scholar to find journal articles. 

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5/25/2019

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Contents
Danes coffee introduction..........................................................................................................2
Slide 1: Market selection and entry strategy..............................................................................2
Entry strategy of Danes coffee...................................................................................................3
Slide 2: Competitive advantage strategy...................................................................................3
Slide 3: Pricing strategy:............................................................................................................4
Slide 4: Promotion strategy:.......................................................................................................4
Slide 5: Distribution strategy:....................................................................................................5
Slide 6: Recommendations.........................................................................................................5
Slide 7: Conclusion....................................................................................................................6
REFRENCES.............................................................................................................................7

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Danes coffee introduction
Danes speciality coffee is committed to sourcing, retailing, wholesaling and coffees;
this coffee shop focuses on building strong relationship with the people at both the ends of
the supply chain. This report discusses about the market selection and entry strategy,
competitive strategy, pricing, promotion and distribution strategy of Danes coffee (Baker,
2016).
Slide 1: Market selection and entry strategy
The best market selection for Danes coffee would be Beijing as it has a total area of
around 16,411 sq. Km and the total population is 21.7 million (Leonidou, Katsikeas, &
Morgan, 2013). Beijing would be perfect for expanding Danes coffee because of the
following reasons:
1. Tourism is an important part of Beijing, it is the capital of china and it is rich for
heritages. In 2017 it received around 3.93 million tourist attractions.
2. The consumer market is strong In Beijing, the power of purchasing is high, in the
terms of per capita income the income of the urban residents have increased by 9%
and the tourist have the Beijing one of the highest consumer markets in china (Kotler,
Bowen, Makens & Baloglu, 2017).
Composition of Per Capita Expenditure of Urban Households (%)
2017
Food, tobacco and liquor 19.8
Clothing 6.0
Household articles & services 6.5
Health care & medical services 7.7
Transportation & communications 13.4
Recreation, cultural & education 10.7

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Source: Beijing Statistical Yearbook 2018
The above 2 points are the reason behind the selection of Beijing as the market for
Danes coffee as, Beijing is a tourist spot. Danes coffee will be able to attract more tourist as
its target market and it will help Danes coffee to grow in the market. Apart from this since the
consumer market is strong in Beijing and the purchasing power is also high it will give Danes
coffee a competitive advantage in the market and thus Beijing would be the right market for
Danes coffee (Morgan,2012).
Entry strategy of Danes coffee
Danes coffee will use the franchising strategy; it is one of the most common ways of
marketing. It is when two companies agree on cooperating and one of the companies Allow
the other company to sell it services and products. There are various benefits from this
strategy as companies earn various profits by selling their franchise in order to make people
buy the company’s franchise Danes coffee needs to look on the following things:
 Danes coffee should first open its shop in Beijing, china with a good interior and best
services which can provide good quality coffee
 It should aim on making Danes coffee as one of the most leading coffee shops which
provides services that are different from other shops available in china.
 Danes should choose the best and skilled staff for the coffee shop and should focus
on advertising the brand in new, different and attractive ways in order to convenes
other companies to buy the franchise
Slide 2: Competitive advantage strategy
1. Quality differentiation
The first and the most important strategy are to have good quality products and to
attract the customers. The quality of the coffee or the drink should be such that it
should attract even the one time visitors. Danes coffee should use unique and different
sources of products so that it does not compete with the other coffee shops of china.
Danes coffee should also focus on using different suppliers in order to keep its
competitive advantage in the market.
2. Experience differentiation

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Some of coffee shops become famous when they make use of the location and provide
good and different experience to the customers, Danes coffee should focus on
providing entertainment to the customers, by providing good atmosphere,
entertainment and theme to the shop this can give the shop a competitive advantage
over the other shops by keeping standard products, although it is important to study
the customers before planning this.
3. Price differentiation
It is always seen that the lower the price of basic coffee up the larger market it can
attract. Once the customers are attracted to the low price of the coffees they won’t be
able to distant from the shop and this will give the shop a competitive advantage over
the other shops. Price differentiation strategy is the best strategy in the competitive
market as it is one of the most unique ways cut the cost and attracts more customers
and profits (Atwal & Williams, 2017).
Slide 3: Pricing strategy:
Pricing is one of the most important factors when a new shop is opening is the market.
Danes coffee should study demand of the consumers it is going to target; income of the
consumers of the target market and lastly it should also study the prices of the competitors
(Hultén, Broweus & Van Dijk, 2009). Danes coffee should study the above three factors
deeply in order to set the prices for the drinks (Kotler, 2011). Danes coffee should price its
coffee and other drinks at a less price in order to keep the customers loyal to brand and it
order to keep a competitive advantage in the market (Fang, Chiu & Wang, 2011).
Slide 4: Promotion strategy:
Initially Danes coffee can take the following ways to promote the brand to the
customers
 Unlimited coffee and refills
Customers easily get attracted to deals like refills and unlimited, during the initial
launch of the company; it can provide customers with such deals in order to attract
their attention to the brand, if they try the drink once it won’t be difficult to convince
them to stay longer (Hawkins, Mothersbaugh, D. L & Best, 2010).
 Website announcements and promos

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This is one of the best ways to promote as nowadays all the customers or people are
more connected on social media and hence Danes coffee should focus on social media
and email marketing. Danes coffee can easily attract customers by posting about their
new drinks and deals and this can help the customers to know about the deals and
product offerings from the smartphone (Keller, 2009).
Slide 5: Distribution strategy:
Danes coffee is a coffee shop and hence it can follow two types of distribution channels
Direct selling: This includes manufacturer directly to the consumer, under this the
manufacturer makes the goods and then sells them directly to the consumers (Goi, 2009).This
type of distribution channel does not include any mediator such as retailer, wholesaler or any
agent. The goods are directly sold from the manufacturer to the customer or the user without
the use of any middlemen (Luan & Sudhir, 2010). Danes coffee will have to use this
distribution channel has it make coffee and sell it to the customers directly without the use of
any middlemen (Martin, 2009).
Online: this is the new way of distribution channel that Danes coffee can use. This
distribution channel has reduced the use of traditional distribution. This has removed use of
any middle men. This includes selling the products online in the case of Danes coffee; it can
use food delivery apps as the second option for the channel of distribution. Online selling
helps in reaching large group of customers (Huang & Sarigöllü, 2014).
Slide 6: Recommendations
Some of the recommendations that Danes coffee should follow are:
 It should focus more on social media marketing (Hoffman & Fodor, 2010). as people
nowadays are more connected on social media and it is easier for them to look for all
the offers and new products of the company (Helms & Nixon , 2010).
 Danes should provide good customer service experience to the customers as
nowadays customers are more focused on the way they are treated before after they
buy the product and services (Block & Block, 2014).
 Danes coffee should become a global company by investing and partipating in the
local events such as helping the children in education, helping in community activities

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as this will help in building public relations with the international markets (Ho &
Dempsey, 2010).
 Customers can easily hop on to substitute it is important to know the needs and wants
of the products in order to keep the customers loyal to the brand. Providing the
services and products according to the needs of the customers helps the company to
gain competitive advantage over the other brands.
Slide 7: Conclusion
Through this it is concluded that Danes should chose Beijing as the market for it
expansion as Beijing is a tourist attracting market and it has high purchasing power. Danes
coffee should follow 3 competitive strategies which are quality differentiation, experience
differentiation and pricing differentiation, for its pricing strategy Danes should follow low
pricing as it is a competitive market and it needs to gain advantage in the market and for the
promotional strategy Danes coffee should use Website announcements and promos and
coffee refills strategy. Apart from this Danes coffee should use two ways of distribution
strategies which are online and direct selling.

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REFRENCES
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everything!. In Advances in luxury brand management (pp. 43-57). Palgrave
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5. Goi, C. L. (2009). A review of marketing mix: 4Ps or More?. International journal of
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environment. Journal of marketing communications, 15(2-3), 139-155.
13. Kotler, P. (2011). Reinventing marketing to manage the environmental
imperative. Journal of Marketing, 75(4), 132-135.

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