The Marvin-Smith's Coffee Shop

Coffee Shop Report

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK ..............................................................................................................................................3
1. Market research for business expansion.............................................................................3
2. Marketing mix....................................................................................................................4
3. Implication faced by Marvin and Smith's coffee shop.......................................................6
4. Interpretation of financial data...........................................................................................7
5. Summary:-..........................................................................................................................8
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................11

INTRODUCTION
Business includes commercial activities that consist of purchasing of material from buyer
and after processing deliver it to ultimate customer to attain profits. It is essential to frame
policies which helps to satisfy customers. To run business successfully, there is requirement of
various resources so it is responsibility of manager to plan all the activities (Hair, 2015). These
days, there are many changes taking place in business environment, so it is essential to business
organisation to alter their working style. To make long run in industry, there is requirement of
acceptance of change which are significant for growth of business organisation. This report is
based on Marvin and Smith's which is famous coffee shop. Hank and Patty are owner of Marvin
and Smith's Coffee Shop wants to expand their business in Germany after gaining good image in
London and other European Country. In this report, there is discussion about marketing mix,
analysis of financial data and overall summary of viability for expansion of business.
TASK
1. Market research for business expansion
As per the provided case, Marvin and Smith are working collectively from some years in
food and catering industry. After acquiring a good experience, they want to open up their new
coffee shop in EU nation. They are researching and planning for around 12 months to collect
data and information about coffee shop. These details consists of selection of most appropriate
location, initial requirement of capital, determination of target market, selection of best supplier,
key competitors etc. after gaining high recognition in London, Marvin and Smith are looking
forward for their business expansion in another EU nation in order to gain high competitive
advantage in international market place and increase their market share (McBride and Tietze,
2015). After conducting research, they have decided to establish their coffee shop in France. The
principle reason behind selecting this specific country is that it has very strong and entrenched
coffee culture. Young people of country drink coffee regularly. As, France is a popular visitor's
destination, large number of people comes every year to visit the country. It provides an
opportunity to Marvin and Smith coffee shop in terms of increasing overall sales.
France is one of the largest coffee consuming country. As per the data of study in 2015,
per person in France consumes approximately 5.1 kg of coffee each year. The nation has mature
and large coffee market with long coffee consumption tradition. People like to drink different

types of coffee. People in France are used to have their espresso coffee. The country has about
515 coffee stores and the market of coffee is growing constantly.
Facts related to lifestyle, culture and coffee drinkers of France:
Approximately 30% of population of France is aged between 20 to 28 years who love to
drink coffee very much. Large number of people are willing to spent their money in consuming
good quality of coffee. Economic condition of country does not put any impact on consumers.
French people are always ready to pay a good price in turn of getting quality coffee. Large
number of population prefer to drink coffee which is the main reason that the country has
numerous coffee shops (Pearson, 2017). In terms of ethical consideration, it is required by Smith
and Marvin to adopt fair trade standards related to coffee. Welfare of staff is the another essential
factor that needs to be taken into consideration by firm. They are also required to administer
training programme to French employees in order to ensure delivery of quality products and
services. Some other factors are also there which needs to be taken into consideration by Hank
and Patty while open up a new coffee shop in France. Availability of proper transportation
facilities must be ensured by cafe. The main target of company is to gain high customer loyalty
by providing high quality coffee. This will help firm in attracting large group of customers and
maintaining their sustainability in market. In order to retain customers for long period of time,
they need to offer a new concept like theme evening which helps them in attracting more coffee
drinkers. Availability of suppliers like in this case, Gumutindo Coffee, a Fair-trade supplier that
supplies finest coffee beans must also need to be taken into consideration so that high quality of
coffee can be produce and offer to customers.