Marketing Mix of Marvin & Smith Coffee Shop

COFFEE SHOP ABROAD
BRANCH CASE STUDY

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
1. Justification for expansion of Marvin & Smith's coffee shop in France. ...............................3
2. Marketing mix to have expansion of Marvin & Smith coffee shop in France........................4
3 Key factors................................................................................................................................5
4 Using financial information......................................................................................................7
5 Conclusion................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
The present report is based on to develop British coffee shop chain business, Hank
Marvin and patty smith coffee shop. Therefore, this enterprise was founded in 2016. After
getting effective success in the market of the UK, the whole authority is looking to have
expansion of coffee shop in another potential country of EU.
Furthermore, the main purpose of this report is to conduct the research for analyzing and
recommending the most suitable EU country (Dalla Costa, Saes and Gonçalves, 2018). In order
to undertake the expansion, France has been selected as the recommended international market
or Marvin and Smith coffee shop. Therefore, suitable strategies will be adopted for the enterprise
in the targeted market that have been analyzed in the report.
1. Justification for expansion of Marvin & Smith's coffee shop in France.
The EU nation has been recommended for international expansion of Marvin & Smith
coffee shop and there are number of reason why only this place is selected. Therefore, France is
one of the place that attracts tourist at larger extent (Mukherjee, Makarius and Stevens, 2018).
Hence, the culture and lifestyle of the people are here is the main reason that's recommending the
nations at the most potential market place for the Marvin and Smith's coffee shop. In addition to
it, this can be stated that traditionally there are number of high shops and that all are at the risk
after relaxation of France planning law that provides enhancement to the superette cafes.
However, the big thing in the France is the cafe culture and there are number of the cafes
in the high street there are maximum number of cafes presents. Therefore, it can be stated that
France is a one of the large and mature coffee market with the long tradition of coffee
consumption and there is also wide variety of tourist. Thus, effects of caffeine consumption on
health put the French sector under pressure (Singh Gaur and Ketencioglu, 2018).
There are larger enterprise that putting mainly consideration over the single serving
packaging in terms to maintain French consumer interest. Revenue in the Coffee segment
amounts to US$ 2,673m in 2019. The market is expected to grow annually by 2.0%. Therefore,
the market size for coffee in France is at wide level. Hence, decrease in sales of standards of
fresh ground coffee mainly explains the decrease in consumption of coffee. Hence, market is
expected to grow annually at the with the help of 2.0%. France market value is very high that is
almost 30% by volume marketed. the public of French are drinking more coffee away from home
and they also sales coffee beans, fresh ground coffee capsules and instant coffee are slightly

selling in the market. Thus, coffee capsules are one of the fastest growing category in the coffee
market in France (Fouskas, Kitsios, Vlachopoulou, and Tsiavos, 2018). It has also been stated
that France is stand at the fifth largest importer of green coffee beans in Europe with the share of
6%. Therefore, total french imports of green coffee beans in 2017 amounted to 205 thousand
tonnes.
2. Marketing mix to have expansion of Marvin & Smith coffee shop in France.
In order to have expansion of Marvin & Smith coffee shop, the place as France has been
selected. However, suitable marketing mix strategy is need to be developed for the enterprise to
follow or to expand in newly market. Thus, its defined in following manner as-
Product- One of the core part of Marvin & smith's coffee shops is that they serve the quality
commodities and have the use of the finest beans from the Ghumtindo. However, to attract the
community of France the entity is coming up with the innovation as to offer dietary biscuits with
coffee (Pathak, 2018). Thus, they are also taking the initiatives to promote coffee and snakes for
health oriented consumers and it will include good source of calcium, protein rich and perfect for
consumption by vegetarians. Hence, this entity will enhance their product portfolio in France
with inclusion of popular types of flavours of cake liked by France people with coffee.
Price- In France, there are number of the coffee shops and it has limits its brand recognition in
the international market. So, there are lot of competitors exists within the market. Therefore,
enterprise must have the use of competitive pricing policy and it is one of the effective strategy
that will be used by enterprise in order to gain consumer attention and preference (Deng, Liu,
Gallagher and Wu, 2018). Thus, to have attractive expansion in France it is crucial to offer
discounts to customers so that commodities can become popular within market.
Promotion- It can be done with the help of retail channels and product itself with use of banners
and the corridors of supermarkets that have snakes, dairy products etc. In order to promote the
product in France, they will have the use of social media channels, advertisement and online
mode. Therefore, commodities can be advertised with help of radio and subway stations. In
addition to it, enterprise needs to have the effective use of promotional strategies to popularise
the commodities within the market. It is need to be done in order to attract the customers within
the market. Moreover, the enterprise needs to highlight its fair trading efforts and unique
customer facilities (Agbim and Eluka, 2018). By the use of the better promotional techniques it
can be possible to stand apart from the competitors in France. In order to promote the product in

France, they will have the use of social media channels, advertisement and online mode.
Therefore, commodities can be advertised with help of radio and subway stations. In addition to
it, enterprise needs to have the effective use of promotional strategies to popularise the
commodities within the market. It is need to be done in order to attract the customers within the
market. Moreover, the enterprise needs to highlight its fair trading efforts and unique customer
facilities. By the use of the better promotional techniques it can be possible to stand apart from
the competitors in France.
3 Key factors
The expansion of the business into the unfamiliar territory is a huge decision as it brings
lots of challenges to the owners of the business in establishing the business in the unknown areas
(Iurkov and Benito, 2018). There are various risks which are associated in establishing a business
within the unfamiliar territory like management of human resources, finance and accounting,
marketing, operations or logistics and supply chain management. Two factors which Marvin and
Smith should consider while expanding their business in France are Operations and Marketing.
There are various issues related in marketing of company's product in France like it has to decide
the proper marketing channel for its products in order to reach the target audience for their
product (Steve, 2019). This is the one of the major issue in the marketing is to decide or choosing
the proper marketing channel. Another key issue which is associated with the marketing is
formulation of the proper marketing plan for the unfamiliar area like France as marketing plan
help in achieving the objectives of the company so it is the one of the key issues for Marvin and
Smith in expansion of the business. Another key issue which is associated with the marketing
process is the issue of Return on Investments if, Marvin and Smith are investing huge amount of
money in promoting of their product so, these marketing activities should be able to generate
good returns for the company (Weking,Hein, and Krcmar, 2018). This depends on the marketing
strategies which help in attracting the potential customers towards the product. So, it is essential
for Marvin and Smith to achieve maximum return on investment from the marketing activities.
Another issue is procurement of enough budget for the marketing activities in the France for
which they have to do proper analysis and formulate a proper budgeting plan in order to carry
out the marketing activities in France. Also the identification of right technology which could
help in meeting the needs the marketing needs of Marvin and Smith. It is one of the biggest
concerns as technology is broadly scattered and choosing of right type of technology could be

complicated. It is important for Marvin and Smith to minimise the challenges so that they will be
able to market their product in the markets of France. It is important for the organisation to
formulate an effective marketing plan which should be based on proper market analysis.
Developing an effective marketing plan can help the organisation in achieving the marketing
objectives (Ang, Benischke and Hooi, 2018). Marvin and Smith should try take the right
marketing decisions like selection of right marketing channel like they can go for direct selling in
which customers can experience the quality of their coffee which can act as word of mouth
marketing for the organisation. Also, they should identify the right technologies for their
marketing process like they can go for social media marketing which cost worthy and can attract
huge audience in the France. So these are the strategies which can help in minimising the risks
related to marketing.
There are also various key issues related to operations of the company as, operations play
an important role for the success and growth of the organisation but there are various issues
which are related to operations like one of the major challenges in expansion of business in
France would be a process of integration and interactions among the people, companies and the
Government of the country. There may exist many barriers like the level of technology,
transportation options or logistics supply chain, etc. This is the one of the major issue which
needs to be considered by Marvin and Smith. Another issue which would be faced by the
company while managing the operations would be how Marvin and Smith will be able to
respond to the competition within the country (Li, Cui and Lu, 2018). As there will be number of
strong competitors already available in the markets of France which will pose tough competition
to Marvin and Smith. In order to establish a business an organisation has to follow the rules and
regulations of the country in which an organisation wants to establish a business. As markets and
technologies keep on evolving on continue basis it brings new set of rules and regulations. In
order to operate in France organisation has to take decision related to logistics and the supply
chain management which is a crucial decision for Marvin and Smith (Huesca-Dorantes,
Michailova and Stringer, 2018). In order to maintain the smooth operations of the business in
France Marvin and Smith should monitor the performance of the employees and organisation on
continuous basis and should take proper decisions on their supply chain management and
logistics which can help the company is the expansion of business in France (Keller, 2018). In

order to respond to the competition Marvin and Smith should keep tight eye on competitors
activities which can give insights of competitors and can manage their operations easily.
4 Using financial information
Calculation of two Profitability ratios
Gross profit ratio= Gross profit/sales
= 208,000/360,00 = 0.577
Net profit ratio= Net profit/Sales
= 26800/360,000 = 0.074
Calculation of 2 liquidity ratios
Current ratio= Current Assets/Current Liabilities
= 35,400/6200 = 5.7
Quick Ratio= Current Assets – Inventory
Current Liabilities
= 35400 – 8000/6200 = 27400/6200
= 4.41
So, based up on the above calculations of the two profitability ratio Marvin and Smith,
current business of the organisation is struggling as company has low gross profit ratio which is
only 0.577 and also it has got low net profit ratio which is only 0.074. This shows that Marvin
and Smith is not able to make profits within the business and they are struggling with it. But
based upon the 2 liquidity ratio the business is in another flow, the current ratio of the business
more than is more than 1.1 which is 5.7 which means the company is in stable position and has
strong position in the market. Also, its quick ratio is more than 1.1 which is 4.41 which
highlights the strong position of Marvin and Smith.
The calculated ratio can have an influence on the decision which are available to Hank
and Marvin (Hall and Cousins,2018). Based upon the two profitability ratios which is totally low
and this play a major role in the decision related to the expansion of business to France. As the
two profitability ratio which has been calculated above is low which means that organisation is
gaining profits and is in loss so based upon this calculation Hank and Marvin should revert the
decision of expansion of business in France. It requires lots of efforts and strategies for
successful expansion of business but if the organisation is not able to gain profits which is the
main objective every business so, this decision may prove negative for the organisation. But

based upon the 2 liquidity ratio Marvin and Smith is in the strong position and can face the
uncertainties of business easily as its current ratio and quick ratio is in the favour of the
organisation so based upon these 2 liquidity ratios it should go for the expansion strategies
(Stallkamp, Pinkham and et.al, 2018). Based on the calculation Marvin and Smith can meet the
challenges of business easily and is in strong position to deal with but it profitability ratio is too
weak to go for the expansion strategy. But if Marvin and Smith decides to minimise their
expenses such as electricity, rent and rates, telephone bills and depreciations which can help in
increasing the profitability ratio and this can help the organisation to generate more and more
profits for the business. If Hank and Smith successfully keeps control on its expenses it will help
in generating of more profits the company. Also based upon the profitability ratio it can evaluate
its ability to generate more income by controlling its existing expenses and other associated cost.
So, this can put the organisation in the strong position and plan for expansion of business in
France can prove fruitful.
5 Conclusion
It can be concluded from the report it is not easy to expand the business and it requires
lots of efforts and proper strategies for the expansion as there are various factors which have to
be considered in order for establishing of the business. Present report also concludes that for the
purpose of expansion of business in different countries marketing mix elements plays an
important role as it includes the various strategies for introducing a product, selecting a place and
looking for the promotional strategies which help in reaching the mass audience. It can also be
concluded from the report that there are various key factors which needs to be considered while
going for the expansion strategy like human resource, marketing, finance and accounting and
operations which can result in the success of a business. But out of these factors the two
important factors which needs to be considered by Marvin and Smith is Operations and
Marketing as there are various challenges associated with these two factors. Also, it is important
for the organisation to calculate the profitability and liquidity ratios in order to determine the
current performance of the organisation and based upon these ratios can have impact on the
expansion plan.

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Online
Steve, U., 2019. Ten Marketing Challenges that Can Make or Break Your Business.Available
Through: <https://www.pragmaticmarketing.com/resources/articles/ten-marketing-
challenges-that-can-make-or-break-your-business>.