Market Analysis for Expanding Coffee Shop Business

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Marketing
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Marketing 1
Table of Contents
Introduction......................................................................................................................................2
Justification of Selected country......................................................................................................2
Macro Environment Analysis..........................................................................................................2
Marketing Mix.................................................................................................................................3
Key Factors......................................................................................................................................5
Human Resources Management...................................................................................................5
Marketing.....................................................................................................................................5
Financial Analysis...........................................................................................................................6
Analysis of Current Business.......................................................................................................6
Influences of Ratios.....................................................................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Marketing 2
Introduction
Market analysis plays a vital role in the growth and success of the business. Hank Marvin, as
well as Patty Smith, is the business partners who worked together in the business. They have
opened their coffee shop in London that made them successful in such country. They deliver and
cater high-quality coffee to their consumers that make them more satisfied. Hank Marvin, as well
as Patty Smith, uses the finest coffee beans from Gumutindo Coffee that enhanced the taste of
their coffee. They support fair trade practice in their business that helps them to achieve success
sustainably. Hank Marvin, as well as Patty Smith, has already opened two coffee shops in
London. Therefore they have decided to open their coffee shop in the international market. Such
expansion will help them to target a maximum number of consumers and increase their share in
the international market (Baker, 2016).
In the following part, there will be a detailed analysis of the market in which Hank Marvin and
Patty Smith will expand their business and key challenges involved in the business.
Justification of Selected country
The suitable market for Hank Marvin and Patty Smith will be Denmark due to the reason the
industry of coffee in Denmark has grown at a fast pace. The coffee market in such country is
forecast for the continued growth as well as expansion without the threat of saturation in the near
future. Denmark is considered as predominately coffee drink nation with a tradition that leads to
the consumption of the approximately 20 million cups every day. The consumers are keen on the
coffee as they visit great numbers of café every day. It represents that the growth of the coffee
shop in such a country is high than in other countries (Bjorngaard, et al., 2017).
Macro Environment Analysis
There are certain factors that will help in analyzing the macro environment f the country that is
essential for the company to analyses. They are explained in below points.
Political Factors: to open a coffee shop in Denmark, the individual has to follow rules and
regulations that have been set by the government of the country. However, in such industry, the
government has not imposed lots of rules and regulations as well as in such industry the laws and

Marketing 3
rules do not change frequently that will create easiness for the individual to open their coffee
shop in such country in an effective. It represents that the political environment of the country is
flexible for the business that will give an opportunity to them to enhance their revenue in an
effective and efficient manner (Vestergaard and Nielsen, 2016).
Economic Factors: the economy of Denmark is expected to reach $353.1 billion in the year
2017 with the CAGR of 1.9% over the next five years. To enhance the growth potential, the
massive investment, innovation as well as entrepreneurship has been undertaken. The corporate
tax has been reduced and the government has taken various initiatives to grow the GDP of the
company. Such a growing economy will create an opportunity for the business to enhance their
sales and able to control over their cost by paying fewer amounts in any kind of taxes. The
government has also given various redemptions to the businesses to promote them (Martinez-
Sanchez et al., 2016).
Social-Cultural Aspects: the population of country rededicated to the coffee in an effective
manner. The Nordics are amongst the highest consumers of the coffee in Europe. However, the
rise of the branded coffee shop market represents that most of the individual is choosing to drink
coffee out and currently approximately 25% of the Norwegians, as well as Swedes, visit the
coffee shop at least once a week. Therefore an average of 18% of the customers is expecting to
enhance the number of times they visit the coffee shops that enhancing the prediction that the
market of the coffee shop will continue to expand at greater level (Jensen, Stickley and Edgley,
2016).
Technological factors: the technological factor play a role in the coffee shop chain at a certain
extent. As the people are keen for the coffee, therefore, the companies have taken initiatives
towards the technological advancement in such field that helps in making the coffee more
attractive and tasty with an increase in the speed of services. Denmark is considered a
technologically advanced country that will support the coffee shop to enhance their skills in an
effective manner (Kneidinger-Muller, 2017).
Therefore, it represents that the favorable macro environment in the country will boost the
business of Hank Marvin and Patty Smith which is the main reason to a select that country in an
effective manner.