Market selection and entry strategy The best market selection for Danes coffee would be Beijing. Danes coffee should select Beijing because of the following reasons: οTourism is an important part of Beijing as it is the capital of china and it is rich for heritages. In 2017 it received around 3.93 million tourist attractions οThe consumer market is strong In Beijing, the power of purchasing is high. οThe entry strategy best for Danes coffee would be franchise strategy.
Composition of Per Capita Expenditure of Urban Households (%)2017 Food, tobacco and liquor19.8 Clothing6.0 Household articles & services6.5 Health care & medical services7.7 Transportation & communications13.4 Recreation, cultural & education10.7 Source: Beijing Statistical Yearbook 2018
Competitive strategy οQuality differentiation: Danes coffee should use unique and different sources of products so that it does not compete with the other coffee shops of china. οExperience differentiation : Danes coffee should focus on providing entertainment to the customers, by providing good atmosphere, entertainment and theme to the shop. οPrice 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 wonβt be able to distant from the shop(Atwal& Williams, 2017).
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Promotion strategy: οUnlimited 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 wonβt be difficult to convince them to stay longer. (Hawkins, Mothersbaugh, D. L & Best, 2010). οWebsite announcements and promos 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
Distribution strategy οDirect 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). οOnline: 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
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Recommendation οIt should focus more on social media marketing 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(Hoffman & Fodor, 2010). οDanes 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). οDanes coffee should become a global company by investing and participating in the local events such as helping the children in education, helping in community activities as this will help in building public relations with the international markets. (Ho & Dempsey, 2010). οCustomers 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.
Conclusion οThrough 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. οDanes coffee should follow 3 competitive strategies which are quality differentiation, experience differentiation and pricing differentiation, for its pricing strategy. οDanes should follow low pricing as it is a competitive market and it needs to gain advantage in the market and for the promotional strategy οDanes coffee should use Website announcements and promos andcoffee refills strategy. οApart from this Danes coffee should use two ways of distribution strategies which are online and direct selling.
οHawkins, D. I., Mothersbaugh, D. L., & Best, R. J. (2010). Consumer behavior. NY: McGraw-Hill. οGoi, C. L. (2009). A review of marketing mix: 4Ps or More?. International journal of marketing studies, 1(1), 2. οLuan, Y. J., & Sudhir, K. (2010). Forecasting marketing-mix responsiveness for new products. Journal of Marketing Research, 47(3), 444-457. οHoffman, D. L., & Fodor, M. (2010). Can you measure the ROI of your social media marketing?. MIT Sloan Management Review, 52(1), 41. οBlock, J., & Block, J. H. (2014). The role of ego- control and ego-resiliency in the organization of behavior. In Development of cognition, affect, and social relations(pp. 49-112). Psychology Press
1.Ho, J. Y., & Dempsey, M. (2010). Viral marketing: Motivations to forward online content.Journal of Business research,63(9- 10), 1000-1006.