Marketing Mix Analysis and Case Studies

This assignment delves into the concept of the marketing mix (4Ps) through analysis and application. It examines case studies of Starbucks Coffee and Crossfit 393, dissecting their marketing strategies. Additionally, it incorporates a PESTLE analysis for understanding the external factors influencing these businesses.

BUSINESS ESSENTIALS

TABLE OF CONTENTS
Introduction......................................................................................................................................3
Task 1...............................................................................................................................................3
Part A: Business idea...................................................................................................................3
Part B: Objectives of new business..............................................................................................4
Task 2...............................................................................................................................................5
Task 3...............................................................................................................................................8
Launching Event..........................................................................................................................8
Budgeting.....................................................................................................................................9
Task 4 ............................................................................................................................................10
Marketing objectives..................................................................................................................10
Target markets...........................................................................................................................11
Marketing strategies...................................................................................................................12
Marketing mix............................................................................................................................13
Task 5.............................................................................................................................................14
Task 6.............................................................................................................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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INTRODUCTION
In the modern globalized era organizations are suffering from high competition. In such
complex environment new firms have to work hard to establish their business well. Entities those
which want to enter into the market they are planning to provide unique products and services to
consumers in order to gain their attention and to attract them towards the brand. Changes in
needs of customers, technological advancement, political conduits influence the new business
planning (Valera Gil, 2016). Present report is based on the business ideas. It will discuss the
portfolio and objective of new organization. Study will emphasis on several factors that influence
the working of new business to great extent. Budget will be produced in order to identify the
cost of the operations and knowing about the requirement of funds for establishing the new firm.
Report will discuss about marketing objectives, target market, marketing mix and strategies of
the entity (Lake and Drake, 2014).
TASK 1
Part A: Business idea
Since long time UK has grown well and people are taking more interest in hanging with
their friends and families. A new coffee shop has high opportunity of getting high profit in the
London. Holborn Chacery is the perfect location for the cited firm because this is near to many
universities so maximum students will get attracted towards the NATIRI coffee shop. Customers
want high quality coffee art affordable prices. Apart from this it will offer breakfast and lunch to
the students at affordable prices. There will be facility of green smoothie, sandwich varieties,
baked beans, creamy mustard mushrooms on toast, cinnamon crepes with nut butter etc.
Opening a coffee shop is very simple idea but there are many big competitor organizations such
as Strabuck, Costa etc. those which are suffering quality products to clients. NATIRI coffee shop
is the start up firm that is planning to establish in the London (Edgington and Williams, Biotage
Ab, 2014). The organization is aiming to serve range of coffee flavors to the population of
London. College students, younger, adults like to spend some time with their friends and
families. The main aim of the company is to satisfy its consumers in order to enhance sales
volume of the organization to great extent. This sector has great potential to grow well, people
like to have coffee with friends so that they can spend some quality time thus, it is the great
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business idea and can help in establishing this shop in London easily (Pestle, Crowley and
Weirauch, 2014). Cited firm is planning to open high street in the most visible market in London.
There are many other big organizations those which are working in the same industry.
But in such locations prices of the products are very high and customers have to wait a lot for the
products and services. Due to this reason people go to such kind of places rarely (Igliński and
et.al, 2016). Holborn Chacery is student area so there would be gathering of mass people so by
offering variety of food and coffee cited firm will be able to gain attention of students and other
consumers. It will help in achieving goal of the NATIRI coffee shop significantly.
Key competitors of NATIRI coffee shop:
Competitors Features of the company
Strabuck Brand name and it is having great presence in
UK, USA and many more countries.
Costa Many branches in different location so people
can conveniently go there.
Pret A Manager Innovative products and services
NATIRI coffee shop is having capable and skilled employees those who perform their
duties well. They like to serve better to the customers, they put their best efforts for the well fare
of the organization. Company always work on innovative ideas and providing range is quality
services so that it can grow well. Cited firm offers people caf au lait, Caramel Macchiato, Caf
Mocha, Americano, Esspresso etc. types of coffee (Aithal, Shailashree and Kumar, 2016). Apart
from this variety of breakfast items, launch variety south-Indian, continental, Chinese all type of
food are available in the NATIRI coffee shop hat makes it differed from other competitors. It
provides them products as per their budget and taste. NATIRI coffee shop always pay attention
on needs and wants of users and accordingly it provides them products. By this way company
became more capable to establish their branch in the London more effectively. Apart from
providing quality products, NATIRI coffee shop trying to reduce waiting time of consumers, so
that people can enjoy their moments freely. People like to spend some time but they do not want
to spend much amount. Busy life schedule, hectic workload, complex life style make people
negative but by offering them free space with coffee, cited firm can attract more consumers
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towards the brand and can make them positive towards the brand (Hamdam and et.al, 2013).
This can assist in making people relax and can increase their level of satisfaction. Thus, opening
a high street coffee shop in the London is the great business concept.
Part B: Objectives of new business
The four most important business objective of new business are as described below:
 To provide high quality and innovative products and services to clients.
 To minimize waiting time for customers.
 To offer range to coffee products to customers of the NATIRI coffee shop.
 To provide services at affordable rates in order to develop faith of people on the
company.
These are four essential objectives of the organization, as first aim of the NATIRI coffee
shop is to provide quality innovative products to clients (Tsyhankova, Yatsenko and Zavadska,
2014). Company wants to serve better to the users for that it is essential that to offer them
innovative services so that they be loyal towards the brand like the environment. The next
objective of the cited firm is to minimize the waiting time. In the modern business world the min
problems is hat people have to wait a lot for getting products and services in the hotel or
restaurants. That decreases morale of people and they feel irritated. Company is planning to
reduce waiting time so that new business can get established in the market easily. Population of
London have become bored with the common coffee, NATIRI is planning to offer variety of
flavors that can change their taste of mouth (Hamdan, 2017). That would help in accomplishing
the goal of the organization that to enhance its profitability and gain competitive advantage too.
The main reason why people avoid to go on branded places that they have to pay high cost of
simple coffee flavor which they do not like. That is why NATIRI is having objective to offer
quality services at affordable rates so that people get attracted towards the brand (Tsyhankova,
Yatsenko. and Zavadska, 2014).
NATIRI coffee shop is the sole proprietor or sole trader which is privately owned by Mr.
NATIRI who is owner of company. The cited firm can run its business as sole trader that would
be better for the organization because in such type of structure company will have to manage
fewer people thus, operation cost will get reduced because they will have to spend limited
amount in paying salaries to staff. Apart from this low investment will require that would help in
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increasing profit of the entity (Hamdan, 2017). If NATIRI coffee shop run its business as
partnership then it will have to share its profit with partners that would reduce net profit of the
company. So being an experienced person NATIRI can easily operate its business as sole trader.
TASK 2
There are many external factors that influence the overall business activities of the
organization. Companies have to look upon these elements in order to run their operations well.
Coffee is the widespread and favorite drink of people in the world. Espresso, non espresso etc.
many types of coffees offered by the entities to consumers (Santos and et.al, 2014). PESTLE
analyses is the great method that can support in running business well and protecting from
external influencing components.
Political factor
It is the major component that influence the business performance of entire industry.
Government attitudes, trade relationship with other countries such as from where raw material of
coffee is being exported etc influence the business industry (Sealy and et.al, 2014). It is
necessary to follow rules and regulations strictly to run business ethically and legal. It impacts
negative and positive on the organization. For instance if government breaks trade agreement
with other exports country then it may create problem because sufficient raw material will not be
available. At that time political factors may be considered as barrier for the entity and can
impacts negative on the industry as well (Hescot and et.al, 2013). On other hand it impacts
positive too, for instance if government raise quality standards then NATIRI coffee shop will
have to follow these standards. By this way cited firm will be able to provide quality services and
products to consumers that would enhance satisfaction level of consumers and they will buy the
products of the company frequently.
Economic factor
UK is the economically developed country and London is having great potential.
Inflation, deflation, recession etc. impact on the business activities of the industry. For instance if
there is high exchange rates then it would enhance operational cost of the company because
organization will have to invest huge amount (Tanaka, 2013). If inflation is high then purchasing
power of the people will get down thus, people will minimize hanging and spend time on coffee
shops. That would be barrier for the industry and it will decrease their business performance to
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great extent. On other hand if there are stable exchange rates then people buying capacity of the
population will get increased thus, that would help in the growth of the organization to great
extent and in such potential economical condition NATIRI will be able to establish its coffee
shop in London easily (Tucker, 2013).
Social factors
That is another essential element of PESTLE analyses which looks upon the social and
cultural aspect. In the coffee quantity of caffeine is very high, due to this sleep disorder,
migraines, irregular heartbeats types of diseases take place. Due to this some cultures avoid to
drink coffee that affects overall sales volume of this industry. On other hand it is scientifically
proved that caffeine boost metabolism that helps in loosing weight that is why most of the people
those who are heavyweight they drink coffee and suggest others as well. In some culture
consumption of tea and coffee is not allowed whereas in other culture coffee is considered as
premium products (Ho, 2014). That influence the sales and profit of the industry thus, NATIRI
coffee shop is trying to include some hygiene factors in coffee that can help in keeping people
healthy and energetic.
Technological factors
It is a modern era and technologies are more advanced that help in improving quality of
the production. Brewing techniques assist in improving production efficiency of coffee. By
adopting advanced techniques for the production company can grow well and can offer quality
products to their consumers (Arseculeratne and Yazdanifard, 2014). It will enhance production
capacity of the organization and will support in increasing sales of the industry. Innovative
technologies, biotechnological developments assist in increasing sales volume of the company.
With the help of this operational cost of the company will get down to great extent and profit will
get raised up (Hosseini and Moezzi, 2015).
Legal factors
Legislation related to import and export affects the entire coffee industry to great extent.
Global warming, healthy and safety low impacts on the business. Government of UK has made
regulation to provide hygiene product s to consumers and they have to use low content of
caffeine in the coffee. NATIRI coffee shop has to follow these regulations in order to run
business perfectly and ethically (Starbucks Coffee’s Marketing Mix (4Ps) Analysis, 2017). If
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company do not follow such laws then it may create problems for them and can harm the brand
image of the organization.
Environmental factors
It is another essential point that impacts on the business performance of the organization.
Earthquake, rain, poor harvest influence the quantity of coffee beans and affect supply of raw
material (Ho, 2014). NATIRI coffee shop needs to look upon the environment and have to use
Eco-friendly products that would attract more consumers and will increase brand name of the
company.
TASK 3
Customers are treated as life-blood for the organization and also they are known as key
tactics for the firms because customers are not there then the firms will not exist and thus it is
said that till customers are buying companies or small shops can sell. Holborn Chacery is the
perfect location for the cited firm because this is near to many universities so maximum students
will get attracted towards the NATIRI coffee shop, coffee drinkers and drinks an average of 3
cups of coffee every day and that is huge in numbers for a firm to target this kind of market will
help them to achieve more. As time will progress this need of London is expected to
rise(Hosseini and Moezzi, 2015). A sensational smell of coffee not only mesmerizes a person but
also draws him to make buy that coffee and that's what Natiri Coffee shop is famous for and
makes his customer feel good when they experience the product. Apart from this variety of
breakfast items, launch variety south-Indian, continental, Chinese all type of food are available in
the NATIRI coffee shop that makes it differed from other competitors.
Launching Event
Natiri Coffee Shop with its objective of providing best services in town through its
unique set of features in the best possible manner they can. All this will be delivered to the
customer and they will be mesmerized through the experience of it. As a manager of Natiri
Coffee Shop to launch its services in the market there are certain steps to gather more people
around the shop on its launching event which will help in making people more fond of the brand,
here is what a launch event of Natiri Coffee Shop will look like in the particular leadership.
The launch event of Natiri Coffee Shop will be so big and attracting that for the potential
customers it will act like a demo to get an insight on the working and infrastructure of the job so
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that they can form an opinion towards the brand and can act in making the necessary deals or
orders with the firm. The said coffee shop has also been into food making business and thus
makes a mesmerizing food which attracts a whole lot of students which in turn creates a good
market for them. Students from different areas come there taste the spices they mix. In order to
make the crowd attracting towards the products and services offered by Natiri they need to keep
a discount option on the first day of their shop i.e on there launching event that they can put on
the famous coffee they produce in the shop or some amazing most sold product in the area or the
market can be discounted at the rate of 20%. Also they can put the offers of cashback also in
order to make people pay with their digital wallet and making them convenient to pay is a good
option for them(Hosseini and Moezzi, 2015). Holborn Chacery is the perfect location for the
cited firm because this is near to many universities so maximum students will get attracted
towards the NATIRI coffee shop As this scenario is of giving cashback's and discounts, thus this
will give customers an additional view to have look at the services offered by them. The strategy
of this kind will make more and more people to visit the event and buy the coffee and various
snacks. Launch event will witness all the people from family, friends, colleagues, relatives, etc
and most importantly the potential customers. Event will be going to take place the coffee shop
only because making them view the interiors is the key, as studies have shown that 20% of
people are attracted and motivated to buy the products from looking at the interiors only. So it is
important to conduct the event at location only. Also a live demonstration of how the event
planning is and whole lot of ideas will be displayed by Natiri's staff to make customers know that
what they are capable of and how they will. A center of attraction will be the services and extra
gift hamper which will provided to every person who buys the products. All those activities will
make Natiri's Launch event a success in terms of gathering and sales & lead generation(Sealy
and et.al, 2014).
Budgeting
Budget
Year 1 Year 2 Year 3
Revenue 505,600 557,419 670,350
Cost of sale 151,192 158,752 169,335
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-------------- -------------- --------------
354,408 398,667 501,015
Administration Exp. 84,930 88,899 168,578
Sales Exp. 58,200 72,360 163,934
-------------- -------------- --------------
Profit 211,278 237,408 168,503
Tax Paid 52,820 59,352 42,126
-------------- -------------- --------------
Income 158,459 178,056 126378
Cash Flow
Year 1 Year 2 Year 3
CASH FLOWS FROM
OPERATING ACTIVITIES
PBT/EBT 211,278 237,408 168,503
Depreciation 5,550 16,800 111,300
--------------- --------------- ---------------
216,828 254,208 279,803
Taxes paid - 52,820 59,352
--------------- --------------- ---------------
Net Cash Flows from Operation 519,250 531,406 459,601
--------------- --------------- ---------------
CASH FLOWS FROM
INVESTING ACTIVITIES
Purchase of assets 45,000 700,000
--------------- --------------- ---------------
CASH FLOWS FROM
FINANCING ACTIVITIES
Share issue 10,000 - -
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Dividends 39,615 44,514 31,594
--------------- --------------- ---------------
Cash Flows used in Financing
Activities 29,615 44,514 31,594
--------------- --------------- ---------------
Cash and Bank 489,636 441,892 271,993
Cash and Bank at opening - 489,636 931,528
--------------- --------------- ---------------
Cash and Bank at closing 489,636 931,528 659,535
TASK 4
Marketing objectives
To attract the consumers it is essential to adopts effective marketing strategies. For that
owner of the NATIRI coffee shop has to set marketing objectives so that accordingly it can plan
the activities (Sealy and et.al, 2014). Objective of marketing are discussed as below: Aware people with the brand: The main objective of marketing is the build brand
awareness among customers about NATIRI coffee shop so that people know about
company and its products (Santos. and et.al, 2014). That would help in attracting more
customers towards the brand. Target new customers: NATIRI coffee shop wants to target potential buyers those who
like to drink coffee and food and can afford it easily. By targeting new customers
company will be able to accomplishing its objective of increase profitability (Hescot and
et.al, 2013). Develop relationship with consumers: Another marketing objective of NATIRI coffee
shop is make good relationship with the consumers by providing quality drinks. With the
help of this cited firm will be able to accomplish its objective of increasing sales volume
and profitability to great extent (Arseculeratne and Yazdanifard, 2014).
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 To become market leader: Cited firm wants to be the market leader in the coffee
industry. Organization wants to gain competitive advantage and can make people loyal
towards the brand. This is only possible with the help of effective marketing strategies.
Target markets
NATIRI coffee shop wants to get established in the London well and it wants to open a
new coffee shop in the high street location Holborn Chacery(Starbucks Coffee’s Marketing Mix
(4Ps) Analysis, 2017). Company is aiming to increase its sales volume and want to get high
profit which is only possible when organization target to the correct audience. Target market for
NATIRI coffee shop are as following:
College students or youngsters:
Cited firm is targeting the college students because they like to spend some quality time
with friends and families. They like to give parties in coffee shops where they can enjoy a lot. It
is affordable by them because it is within their budget (Hescot and et.al, 2013). Youngsters take
pocket money from their parents and with this amount they can easily spend quality time and can
get quality products. The focus of NATIRI coffee shop on students. These are potential buyers.
They like to eat fast food and they want lunch in afternoon. This place is near to universities so
many students can come here in the mid time to have lunch or breakfast. Cited firm has kept
product's price low so that maximum students can come here.
Business workers
In many organizations people get frustrated with the hectic scheduled and they need
refreshment time. They like to spend some fresh time with their families. It brings new energy
among them. Thus, NATIRI coffee shop can target the professional persons. Apart from this
many big organizations conduct business meetings in such type of place. So company can also
target the firms those who arrange such type of meetings (Tsyhankova, Yatsenko and Zavadska,
2014). By this way cited firm will be able to enhance its sales volume and that will support in
gaining competitive advantage to the organization.
Adults:
NATIRI coffee shop's primary target market are men and women those who are between
age of 25 to 40. Company advertise its product s as per the needs of adults. These are such
people those who are having high income and they like to drink coffee because they think that it
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can bring new energy among them (Pestle, Crowley and Weirauch, 2014). These people suffer
from high blood pressure and high weight. Thus, black coffee and other products can help in
loosing their weight. That is why they have high interest in such type of products and services.
Such adults are the most target market of the cited firm (Valera Gil, 2016).
Kids and teens
Target market for NATIRI coffee shop are kids and teenagers as well. They like to drink
cold coffee with ice cream. Most of the parents take their children on such type of places. So
company can target to them and can adopt marketing strategies in such manner that can attract
them towards the brand.
Marketing strategies
For accomplishing the objective of the organization it is essential to make effective
marketing strategies. It is the great way that can help in achieving goal of the company. Effective
marketing strategies attracts more consumers and helps in creasing sales volume of the
organization. NATIRI Coffee shop wants to establish in the London market and want to compete
with big organizations of the same industry (Lake and Drake, 2014). College students are one of
the potential target market for the cited firm. For attracting such people company needs to take
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Illustration 1: Market analysis

support of online marketing strategies. Now days youngsters use social sites frequently, by
giving advertisements on such sites about products and discounts offers company can attract
more consumers towards the brand.
NATIRI coffee shop can use internet and can send email to users about the products and
services. It can make communication with them (Pestle, Crowley and Weirauch, 2014). Apart
from this cited firm can organize promotional camps for attracting more people towards the
brand. In the promotional camps cited firm can circulate the information about the organization
That will spread brand name of the company and it will help in making people aware about the
brand. In addition to this advertisement in TV, newspapers, radio etc. are essential strategies of
marketing (Edgington and Williams, Biotage Ab, 2014). It can support in making people loyal
towards the brand and that can helps the new firm in sustaining in the corporate market for
longer duration. NATIRI wants to develop strong relationship with the customers, this is possible
with the help of effective marketing strategies. Online medium is the best way of communicating
with people and that can attract mass audience towards the entity (Hamdan, 2017).
Marketing mix
Marketing mix is the plan that supports organization in offering products and services as
per the needs of consumers. It includes mainly 4P's; Products, price, promotion and place.
Products:
NATIRI coffee shop must offer such products that can satisfy needs of consumers. A
product is the thing that have some value for the final users. Population of London like to eat and
drink quality food and drinks (Tanaka, 2013). Cited firm needs of offer variety of coffee drinks
to the target consumers. Apart from the products, it should give free WIFI facilities, newspaper,
CDs, coffee mugs etc. to the users. It will assist in attracting more consumers towards the brand.
By offering quality products and services to the consumers cited firm will be able to increase
satisfaction level of its consumers. Cited firm offers caf au lait, Caramel Macchiato, Caf Mocha,
Americano, Esspresso etc to users. That would create brand image of the company and it will
help in gaining competitive advantage to the organization (Tanaka, 2013).
Place:
Place is the actual area from where customer can get the products. It includes physical
stores, online websites etc. NATIRI is working as small scale so it will have to start from outlets.
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Company is planning to open a small coffee shop in high street where people can come easily
and they can easily spend their time here. It is necessary to choose correct location of the coffee
shop that needs to visible (Starbucks Coffee’s Marketing Mix (4Ps) Analysis, 2017). Place is
having proper space and it is managed well that attracts more consumers towards the brand.
Price
Price is the biggest factor that influence the mind of consumers to great extent. NATIRI
is planning to offer quality coffee drinks at affordable rates. That can help in making people
attract towards the brand and it will increase satisfaction level of the customers. Prices will be set
of the organization on the bases of market research. In addition, cited firm will set the prices on
the bases of competitors prices and quality of the coffee product. (Hosseini and Moezzi, 2015)
Promotion
NATIRI coffee shop is promoting the brand through pamphlets, advertisement in TV and
newspaper, social media marketing etc. that helps in attracting more people towards the brand
and that can increase profitability of the organization to great extent (Hamdan, 2017).
TASK 5
This section of the report particularly deals with three decisions which will help in
making Natiri's coffee shop look amazing and thus also making it increase the sales. These three
decisions are operational, tactical and strategical business decisions which will help in generating
the sales. These business decisions are helpful in making decisions related to customer needs and
grow the business. The operational decisions are related with the particular place where the firm
will carry out the activities(Edgington and Williams, Biotage Ab, 2014). This decision includes
evaluating the location and making an analysis of it whether the location is suitable of the firm
in terms of attracting greater number of customers so that sales can be achieved or profitability
levels can be achieved. It has been assessed that new business are often seen as renting the area
for their shops in London. The location of the in London is almost at the center of the city so it
can be accessed from anywhere.
Tactical decision making is related to the products and services like how and what
measures will be adopted by the firm in order to make decision regarding the techniques which
will make people aware of the presence of the firm and motivates and influence the customer to
by the product. Such plays effective role in attracting larger customer base to a significant level.
15

There is a huge effort has been made by the staff of the coffee shop in order to mkake more
people aware about the product and at the starting levels a certain amount of deals are offered to
make a large customer base which will eventually will do a word of mouth communication
which in turn will make profit for the Natiri coffee Shop(Pestle, Crowley and Weirauch, 2014).
In the present business plan it has been determined that customer satisfaction is the key at the
time of delivering the quality of services.
Third decision is strategic decision in which managers play significant role in
implementation of the plan and Natiri is able to attain desired targets within minimum time. In
present case marketing tactics has been used by firm in order to make people attract towards the
coffee shop through social media sites and by amazing GIF and various video ads(Edgington and
Williams, Biotage Ab, 2014). Thus the re3sult was astonishing and the response received from
this will be in good numbers.
TASK 6
This section is dealt with logistics management, the distribution of the services or
products is mainly studied in this chapter. Here, the Natiri coffee shop in order to deliver the best
is making to move the products from one place to another also. Thus making this move and
including the additional services will make the coffee shop deliver more and reach the customers
of other cities as well. Distribution procedure is the aid that follows movement of the product
from one place to another(Hamdan, 2017).
There are two type of distribution channels which is followed by marketing of goods and
the two channels are: direct and indirect distribution channels. For Naitri coffee shop since it is at
the center of the city it is easy for the company to distribute he products and bring the raw
materials from different places so the demand of the product can be met at any time and
anywhere. With its amazing service of home delivery the postman type boys have an opportunity
to earn and then make the money for them as well. The new business would make sale by means
of direct selling technique for the products which are at coffee shop and through indirect for
making home delivery through apps booking and website booking option given to the customers.
Here the delivery is made directly to customer with no role of intermediaries. this type of
distribution channel helps in making a greater feeling of satisfaction which in turn will make the
profits and uplift the brand image and identity in mind of customers as well as staff respectively.
16

The organization would take feedback from the customers so that enhancement can be done in
delivery of the services(Hamdan, 2017). Channel distribution has played a great role in
facilitating the change in the current scenario of business. It has changed the way business is
done and catered the needs of the customers to the fullest level.
CONCLUSION
From the present report it can be articulated that establishing a new business is the
difficult task and management has to look upon variety of factors. It is necessary to set objective
of business so that managers or owner can plan the activities accordingly and can set budget.
Study has discussed about several external factors that influence the business activities of the
company. New firm has emphasis on political, economic, social, technological and legal factors
that would help in making proper planning and running business well. Marketing mix is the
essential part of organization. That helps in knowing needs and desires of the consumers and
accordingly it will be able to offer them products and services. By this way satisfaction level of
the customers can get increased to great extent. That would support in accomplishing goal of the
company soon.
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