Marketing InTRODUCTION TO MARKETING INTRODUCTION 1 TASK 11

INTRODUCTION TO
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identify specific market area for product....................................................................................1
TASK 2............................................................................................................................................7
Examine consumer segment........................................................................................................7
TASK 3............................................................................................................................................9
7Ps Marketing mix model...........................................................................................................9
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Marketing refers to that process in which people exchange various goods and services to
the customers. It is an activity which set whole association or institutions for creating, delivering,
communicating and exchange offering which have some value for buyers, partners, clients and
social group at mass area. Marketing also used for satisfy customers demand and wants in
effective manner. It include various sources which assist in promoting different of company
products and services such as advertisement, templates, distribution, selling, online marketing
etc. This will support in building strong relationship with potential customers (Palmer, 2012).
The process of marketing help in placing specific product at right place that include brand
management, design of products, advertising, distribution and selling. This report is based on “I
Say, Coffee Company” which is coffee firm and it is situated in UK. The main motive of this
report is to identify major factors that will directly impact on organisation and also analyse
SWOT and PESTLE analysis. IT is also necessary to identify consumer segments which occurs
in the market. There are different market segments such as socio-demographic, Psycho-graphic
and behavioural which assist in covering whole market area.
TASK 1
Identify specific market area for product
Marketing is the process of publicizing and selling a commodity or service through
various medium of communication conveying the purpose and need of the same to its end user.
Marketing is not a one time activity but it is a continuous process which has to be followed over
regular interval so as to create and continuous demand for it. Its core purpose is to attract new
customers, satisfy them and convert them into loyal customers. The essential link through which
good produced at one place is sold all over the globe through a continuous demand is
“Marketing”. This is because if the want is not created by promoting the product or service there
will be no demand for the commodity produced and hence no sales.
Over the past decade there has been a drastic shift in the demand of coffee in Britain and
Europe (Levens, 2010). This has provoked the coffee makers to shift their interest in this market
and expand demographically all over the continent. This is the reason that big coffee players like
costa and Starbucks have increased their shops from approx. 658 in 2010 to 2121 in 2017 (Costa)
and form approx. 595 in 2010 to 868 store in 2017(Starbucks). Costa sill being the biggest coffee
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brand in UK. However other coffee shops like Caffe Nero and wild cafe bean have also
increased their number of shop. Naturally, this growth is a result of the market demand by
regular coffee drinkers. Research show that major coffee buyers are in the age group 16 -34 with
81% consuming it. About 1.8 billion of coffee cups are sold every year in UK. Due to its
increasing demand the UK coffee market sales is estimated to increase further by 27% i.e. from
3.4 billion at present to 4.3 billion Pounds. This has given rise to new and small coffee producer
to expand and open more number of stores all over UK. Adding of more coffee shop will give
rise to severe competition in terms of range of products available, price, service, offers etc.
Research also shows that almost 51% of these coffee consumers prefer to have hot drinks at
their place rather than outside their home (Babin and Zikmund, 2015). Hence shop owners are
required to increase their range of take away drinks and also concentrate on packing and serving
cups related to it so the consumers can have the feel of drinking it outside while having it at their
home.
SWOT Analysis of UK Coffee Market:
SWOT stands for S-Strength, W- Weakness, O-Opportunities and T- Threat. SWOT
Analysis can be done for any company, product, service provided, and person. Ideally strength
should exceed the weakness, and there should be more more of opportunities available to expand
and grow than its internal and external threat. Its basically done to understand a different view
point on which the SWOT is performed.
Here we are performing SWOT analysis on UK coffee market to understand the various
factors of market before launching a new brand of coffee.
Strength:
1. Fastest growing sector of UK market. About 1.7 billion cups of coffee is sold every year
which is expected to rise drastically in near future.
2. Large number of consumer are in the age group 16-34 which creates a demand to serve
coffee in pubs, canteen, offices etc. Coffee is seen as a youngsters drink and is assumed
cool to have coffee over tea.
3. Big retailers like COSTA and Starbucks making huge profits. Around 16000 outlets of
coffee shops in UK with a turnover of 6 billion pounds per year.
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