Kenya Coffee Aroma Marketing Plan

This assignment requires students to develop a marketing plan for a hypothetical coffee brand called 'Coffee Aroma' entering the Kenyan market. The plan should include a PESTEL analysis of Kenya's business environment, identifying key political, economic, social, technological, environmental, and legal factors. Additionally, students must propose market segmentation strategies to target specific consumer groups within Kenya.

Strategic Marketing

Executive Summary
This report is based on strategic marketing concept which is used by organisation to
enlarge business and operate activities in new places. Coffee Aroma which is famous MNC
require to provide quality coffee items to people. PESTEL analysis is appropriate research tool
used by management to get information about market conditions, thereby formulate adequate
plans and strategies. Besides this, with use of effective market entry alternatives to achieve
targets effectively. This assignment also specifies Porter's generic strategy that is used by
administration to target consumers in different locations. These are points which are specified in
this report. Thus, Coffee Aroma uses these tactic to enlarge business in Kenya and enhance sales
and profitability. Coffee Aroma executive had taken decision to expand business and open
outlets in Kenya. This benefit company to increase their customer base and improve sales and
profit.
Partnership, direct exportation, franchising and join venture are various market entry
options that help business person to operate business in different countries. This help
administration to acquire adequate funds and material; thereby accomplish targets and objectives
within specified time.
This assignment also consists information about market segmentation that are used by superiors
to acknowledge needs and wants of Kenya population. This help manager to recognise
appropriate area and produce different variety of items in according to taste and preference of
people.
Michael Porter's generic model is used by administration to establish competitive advantage by
providing creative and innovative items to grab attention of large number of customers. It is
necessary that manager price products in according to market conditions.

Table of Contents
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
Environmental Analysis for new product development in a novel market.................................1
Market Entry Options..................................................................................................................4
Market Segmentation..................................................................................................................6
Porter's generic strategy..............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
Appendix........................................................................................................................................12

INTRODUCTION
Strategic marketing concept is used by every organisation to enlarge firm in new
marketplace. This tactic helps administration to implement latest technologies in system and
utilise resources efficiently. Along with this, this activity also helps members to deliver items
and services in according to needs and wants of people (Brandellero and Janssen,2014). So,
management is able to acquire potential markets and position themselves higher than
competitors. Companies expand business to utilise market opportunities and achieve additional
revenue. Present report is based on Coffee Aroma, which is has nearly 25 coffee shops
established in UK. Firm has taken decisions to enlarge business in Kenya and implement
appropriate tools and techniques in system, thereby utilise market opportunities. New coffee
varieties are introduced by executive to increase customer base and enhance sales and
profitability. Administration has added roasted coffee beans in items to grab attention of large
number of customers in chosen nation. This help them to expand business in potential market.
With help of PESTEL analysis, management is acknowledge information about macro
environment factors such as government, suppliers, competitors and customers. It is necessary
that administration make system function in according to needs and wants of people. Along this,
they even require to take care that funds, material and manpower are utilised efficiently. Coffee
Aroma uses partnership to enter new market and increase their customer base. This is appropriate
market entry option as number of people are involved so firm will be able to get adequate funds
from them. Along with this, management uses focus strategy which defines that coffee bean
items is used by them to provide distinct food product to consumers.
TASK
Environmental Analysis for new product development in a novel market
In east bound of Africa, Kenya is developing country which has highest prosperity rate in
relation with South African nations. This marketplace consists various opportunities, as country
consists highly talented individuals and prominent youth. This benefit privately owned firms to
make success and make adequate growth with time. So, management acknowledge various
reasons to introduce new variants of coffee in Kenya to enhance sales and profit. With help of
PESTEL analysis and use appropriate techniques to anticipate benefits of launching new items
and acknowledge market conditions.
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Coffee bean is product that is launched by administration of Coffee Aroma to increase customer
base and provide option to customers. This help company to increase sales and generate adequate
profit from business.
Political Factor: This concept specifies that government formulate rules and laws to
regularise functionality of organisation. In 2010, as new legalisation was introduced to
strengthen accountability and manage public service delivery at local marketplace; so various
regulations in respect economic and political governance were included in this. Administration
of Coffee Aroma consider this law while expanding business in new nations (Gibson2016).
Company faces several difficulties such as regulatory bodies of Kenya don't promote tourism;
which impact on sales new type of coffee bean which they are offering in their stores. Cafe main
customers are visitors and travellers, than local residents. So, it is necessary that company
provide appropriate infrastructure to customers. Apart from this, executive need to make policies
and plans in according to government laws. As, Kenya which is underdeveloped nation provide
benefits to firms to establish outlet in market and help in growth and development of country.
Government of Kenya have made flexible taxation policies as they want to promote entry of new
firms from foreign nations. Along this, various legislations and act are formulated to secure
foreign investment and rights of investors.
Economic Environment: This factor consists interest, inflation, exchange and growth
rate which are different for each nation on basis of their market conditions. This helps
administration to acknowledge economies status (Graham,Ashworth and Tunbridge2016). If
there is inflation, than people have adequate income to purchase items and services in according
to their needs and wants. This benefits companies to enhance sales, as potential customers get
increased. As in Kenya, in 2017 there was decline in growth rate up-to 5.5%; but in 2018 there
was rebound to 5.8%. Globalisation and liberalisation in country, so large number of
opportunities are developing for other nations firms.
Global and multinational organisation are invited for trade by government of Kenya to reduce
fiscal deficit of country. This help them to get adequate amount of tax from individuals and sort
out fiscal problems of nation. Increasing growth rate of Kenya means that if company will launch
new coffee bean in this market then they may finding essential number of potential customers.
In Kenya economic conditions are stable and are not changing with time; so Coffee Aroma is
able to conduct business adequately.
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Social Environment: This component defines that organisation require to deliver
adequate products and services in market to fulfil needs and wants of people. Kenya consists
large number of competent and young population, which have prominent life style. These are
individuals which visit popular coffee shops and purchase items in respect to their taste and
preference. As in case of Coffee Aroma which is expanding business in Kenya, require that
administration recruit staff members from that nation. This helps executive to make employees
function effectively and attend clients easily. As these are individuals which have complete
information about culture of Kenya and language (Jurigová and Lencsésová, 2015). This benefits
company to attract large number of people and provide coffee variants in according to their taste
and preferences. Kenya do not shy in trying new things, specially in terms of food. New coffee
beans may come in latest trend if company adopt right method of promotion.
Technological Environment: Technological changes are happening rapidly in this
country. New coffee beans are made by latest technology. This coffee shop and their products
can get huge popularity in no time if people will know that this organisation is using latest
technique and launching a new product. This element specifies that management should
implement adequate tools and techniques in system; to utilise resources efficiently and deliver
appropriate items and services in marketplace. It is necessary that latest technologies are used by
members to produce innovative and creative products. Coffee Aroma which is enlarging business
in Kenya, need to use modern techniques in system appropriate transportation modes to operate
firm globally (Kelly‐Holmes and Pietikäinen,2014). This help executive to lower down cost and
use efficient distribution system, as crude oil rates in Kenya are low which help company to take
care of transportation expenses. This conditions effect on market entry judgements of Coffee
Aroma.
In Coffee Aroma, management have implemented modern tools and techniques in system such as
advantage machines so that different variants of drinks are provided by company. This help
superiors to introduce new items such as coffee bean is new variant which is launched by
company to garb attention of large number of people and give them different options.
Environmental: This factor defines that administration of every firm require to take care
that natural resources are utilised properly and atmosphere components are utilised properly.
Government and people should acknowledge issues and problems related with environment.
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Thereby take care that administration of Coffee Aroma uses adequate tools and techniques and
make system function appropriately.
Business persons of Coffee Aroma uses reuse cycle and have designed system such manner that
waste are utilised by members. Along this, appropriate tools and techniques are implemented in
system which are take care that environment is not affected.
Legal Factors: Kenya' s regulatory bodies have constructed laws and legislations to make
country's system powerful and free to take activities in respect to make it function officially. This
nation's legislative system is similar to Britain, so executive of Coffee Aroma need to require to
find rules and regulations of Kenya. This benefits company to make appropriate strategies and
policies, thereby make system function effectively. Apart from this, it also helps administration
to provide adequate facilities to employees and deliver quality items in marketplace.
Management of Coffee Aroma have formulated appropriate policies and strategies to make
system function effectively. They even take care that employees get positive and healthy
working conditions. As business is expanded in Kenya, administration require to take license
from government.
Opportunities for Coffee Aroma in Kenya
Research program helps Coffee Aroma to expand business in Kenya and utilise
potentialities of market. This decision helps executive to believe on facts and findings of
program, thereby conduct examination to get appropriate information about results and outcomes
generated by management. As, Kenya had lots of opportunities so Coffee Aroma decision is
expand business in this nation is effective; due to these reasons:
 Legislative system of Kenya is similar to Britain, which help company to save time and
efforts. Administration will have complete information about laws and regulations of
nation.
 Kenya have skilled and young people, which is main objective of Coffee Aroma to
establish outlet in this country (Leongand et. al., 2015). These are individuals which
have potential to serve as talented worker and customer for firm.
 Coffee Aroma has less competitors in Kenya, as there are less number of coffee shops in
compare to other countries.
 With growth in GDP in 2017, individuals income level are increasing with benefits
Coffee Aroma to increase customer base and enhance sales and profitability.
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 Kenya consists low fiscal rate which benefits administration to acknowledge information
about country's economy is strong or weak.
Threats for Coffee Aroma in Kenya
Companies which conduct research program to acknowledge information about countries
where business can be expanded have various negative outcomes. These are threats which Coffee
Aroma have on its functionality, if appropriate business expansion program is not constructed are
stated beneath:
 Travel and tourism sector is not concentrated by government of Kenya, this impacts on
number of clients for company (Omar,Ab Karim, and Omar, 2015). For, Coffee Aroma
local residents of nation are clients for firm. These are people which purchase items after
certain period and will not visit cafe frequently. Travellers and visitors are regular coffee
shop customers which is very less in Kenya.
 Coffee Aroma require to provide quality products to grab attention of people in Kenya.
They need to deliver innovative and creative items in respect to restaurant that are
established in country.
Recommendations
 Partnership is appropriate tool used by Coffee Aroma to take expand business in Kenya
and take additional funds.
 Promotional tools such as social media, sales promotion and internet marketing are used
by management to advertise information to public about new items that are launched by
them.
Market Entry Options
Administration are able to expand business and establish branches in different countries,
as current time is of modern era which consists globalisation and liberalisation aspects. Coffee
Aroma is restaurant which is operating business in many nations, thereby administration is
enlarging and setting up outlet in Kenya. Executive require to have complete information about
market conditions to make their entry into new market flourishing (Silva2014). Along with this,
they even need to frame adequate strategies and tactics for firm. Management should implement
latest tools and techniques in system to make it function effectively. This help Coffee Aroma to
enhance productivity and profitability. With help of market entry options , marketing team of
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firm is able to anticipate feasibility of expanding business in Kenya. These are various options
that can be used by business persons to enlarge company in foreign country are as follows:
Direct Exporting: This concept specifies that firms don't require help of mediator and can
easily and directly deliver new items in nation. It is adequate market entry system which helps
administration to utilise funds appropriately and prevent mediums expenses. If companies have
skilled and competent workforce in marketing department, than they will be able to directly
export items and services to other country (Terzićand et. al., 2014). Along with this, efficient
strategies will be formulated by members and system will function in proficient manner. This
technique eve have some disadvantages which are transportation modes, which need large
amount of money, time and energy. This method even require highly skilled and competent
employees which are able to easily ascertain culture and environment of other nations. So, this is
not relevant and affordable for all kinds of firms.
Franchising: This concept is defined as process conducted by business person to take
license from other firms and give them appropriate fees, thereby use their company name and
sell items and services in marketplace. This is one of best method of entry which is used by
corporations which have high goodwill and reputation to get their brand image and trademark
encashed. Old and new companies uses franchising to enlarge business activities and operate
firm in different nations. This technique have certain drawbacks which are organisation which is
popular and have high market share will fix high franchise cost and royalty amount. So,
individuals will require to invest large funds to take licensing from these firms.
Legal procedure of franchising:
Coffee Aroma require that firm should be registered under government. Along this,
administration need to give permission to other firms and rights to use their intellectual property.
Buying a Company: Kenya is country which have large number of small size restaurants
established in marketplace. Owner of Coffee Aroma can purchase food sector firm and easily
deliver items and services in order to enhance sales and fulfil requirements of customers. Higher
amount of revenue and market position will be generated by coffee shop, if another existing firm
is being purchased. This method require large amount of funds and research to be conducted by
management to acknowledge market conditions. This benefits Coffee Aroma to utilise financial
resources efficiently and deliver adequate items in marketplace. But this tactic will consume
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large amount of time and require that firm have skilled and competent workforce to make system
function effectively in new geographical area.
Legal procedure that is involved for this method:
Coffee Aroma require to register corporation online and take license from government of Kenya.
JUSTIFICATION & RECOMMENDATION
Direct exporting, franchising and buying company are different market entry alternatives
that business person of Coffee Aroma can use to enlarge business in Kenya. Among these
options, direct exporting is best and efficient technique to expand business in various nation and
enter new market. This method don't require to have any mediator roles, so this saves
administration from distribution process expenses and other irrelevant cost (Timothy, 2017).
This activities also eliminate difficulties and complicities from system, thereby make it function
in according to market conditions. These are various benefits of direct exporting tool are as
follows: No mediator: Coffee Aroma's owner require to consider all hazards and risk in respect to
operate new venture in other country, as middlemen is not included in this method. But
this is beneficial for administration is they have to share brand name with other
individuals. So, overall expenses of organisation are lowered down and is economical for
firm. Along with this, company is able to enhance profitability and market position. One sided decision: Management of Coffee Aroma is able to take appropriate decisions
and implement changes in system to make it function adequately. Along with this,
essential judgements are made which help company to remain protected from outsiders
interference. So, firm will be able to make team members perform activities effectively;
thereby deliver quality items in marketplace and generate adequate revenue from
business.
 Additional Profit: Coffee Aroma is expanding business in Kenya, so administration is
able to increase profitability as they are operating business in various nations. Beside this,
they even help in enhancing country's economy and make appropriate success. If
government provide benefits to company in respect to area of land, fund and rebates in
tax. Then this will benefit firm to utilise funds and generate extra profits from business.
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Market Segmentation
This method is used by management to construct small sections from wide geographical
area. Marketing manager of firm require to select one or more segments to gain potential
marketplace and deliver adequate items and services to people. Coffee Aroma is popular coffee
shop established in United Kingdom. It is necessary that appropriate business activities are
conducted by administration to utilise resources efficiently and generate adequate profit from
business. It is necessary that business person expand organisation in different nations and
enhance market share and position (Zhou2014). As now, owner is enlarging firm and opening
branch in Kenya to increase customer base and sales. It is necessary that administration conduct
research program to get information about market customers demand, taste and market
opportunities in future. This help them to select appropriate market segmentation tactics and
make adequate changes in system.
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Illustration 1: Market segmentation strategies
Source 1: Market segmentation strategies, 2018

It can affirm from the illustrated graph that marketing segmentation, positioning and
targetting is one of the indispensable procedure of an organisation that can assist in achieving
their business objectives. There are major four types segments such as demographical,
behavioural, psychographic and geographical elements that is optimised in by Coffee Aroma in
more appropriate manner. Targeting particular market in industry is defined as process
conducted by management to select potential section. This help company to enhance market
goodwill and image by providing quality coffee items to people (Catherine Henderson, 2014).
This benefits Coffee Aroma to increase customer base and profitability. These are various
techniques that are used by firm to enter into new marketplace are stated beneath:
Geographical Segmentation: This kind of sectioning is defined as process to select
appropriate geographic region which have adequate possibilities. In context of Coffee Aroma,
administration chooses location which have large number of customers for firm. This tool have
various disadvantages, as country will consist individuals which don't have capacity to purchase
items from company. So, strategic marketing manager require to make appropriate judgement in
respect to market segmentation.
Demographic Segmentation: This type of method is used by organisation to provide
items in respect to age, gender, religion and culture of population. It is necessary that
administration provide variety of products to enhance customer base and deliver choices to
people (Wuand Li,2017). Coffee Aroma appropriate criteria are selected by firm to introduce
new plans and schemes to attract large number of clients. This help firm to enhance sales and
provide different variants of items.
Behavioural Market Segmentation: This tactic is used by administration to segment
market on basis of nature and characteristics of customers. Each nation have its own festivals and
occasions, so it is necessary that company deliver adequate items and services in marketplace to
fulfil needs and wants of people. Coffee Aroma which is enlarging business in Kenya, so
management is making system function in according to festivals of nation. Fests are appropriate
time when individuals visit country from outside places. This benefit company to enhance sales
and profitability.
Psycho-graphic segmentation: This kind of sectioning is used by companies to deliver
items and services in respect to demands of people. Consumer attitude, behaviour and
perceptions are various components that need to be considered by administration while
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conducting business operations (Cherro Osorio,and Best, 2015). Coffee Aroma provide items in
according to taste and preference of customers. Market survey is efficient tool used by
management to anticipate Kenya population demands, thereby add variants in restaurant. This
helps them to grab attention of large number of people and generate adequate revenue from
business.
Nature of market segmentation: Coffee Aroma which is enlarging business in Kenya,
require that owner should have complete information about issues and problems; that will be
faced by them in that nation. Business person require to use adequate segmentation strategies and
make system function in according to market situations (Conto and et. al., 2014). Along with
this, they even need to execute appropriate plan to launch new variant in market and satisfy
customers. Thus, administration is able to attract large number of clients and enhance sales and
profitability.
Porter's generic strategy
This tactic was evolved by Michael Porter in 1980 which benefits firm to position
superior than competitors and compete with rival brands in same sector. Administration of
Coffee Aroma is able to timely accomplish goals and objectives (Porter Generic Strategies,
2016). Along with this, they even construct strong image and reputation in market and generate
adequate benefits and advantages from business. Company introduce variants in Kenya to set up
strong brand image, with help of these tactics:
Cost leadership strategy: Coffee Aroma is able to attract large number of people in
Kenya, as products prices are reduced. This benefits firm to anticipate areas where
administration require to deliver coffee at low rates and make customers purchase items
accordingly.
Differentiation: Coffee Aroma introduced several variants to provide options to
population of Kenya in respect to their taste and preferences. As, company require to provide
items different from other brands products; than only administration will be able to grab attention
of large number of people.
Cost focus: Management of Coffee Aroma have set adequate prices for items to attract
people and shift their interest from other brands.
Differentiation focus: Coffee Aroma had implemented latest tools and techniques in
system, so administration deliver innovative and creative items in marketplace (Kelly‐Holmes
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and Pietikäinen, 2014). This helps company to increase customer base, enhance sales and
profitability.
CONCLUSION
As per above report, it can be concluded that companies are able to construct competitive
advantage, enhance sales and market reputation with help of strategic marketing tool. Effective
marketing plans and strategies are need to be formulated by administration to manage
sustainability of system. Superior will be able to increase customer base and sales with use of
geographical, behavioural and psycho-graphic segmentation strategies. This benefits organisation
to make system function efficiently and compete with rival brands. Along with this, it is
essential that management provide varieties to customers and make them purchase items in
according to their taste and preferences. Direct exporting, franchising and joint venture are
appropriate tools used by business persons to operate firm globally. Therefore, PESTEL analysis
helps administration to acknowledge market situations and timely accomplish goals and
objectives.
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REFERENCES
Books and Journals
Brandellero, A. and Janssen, S., 2014. Popular music as cultural heritage: scoping out the field of
practice. International journal of heritage studies. 20(3). pp.224-240.
Catherine Henderson, J., 2014. Food and culture: in search of a Singapore cuisine. British Food
Journal. 116(6). pp.904-917.
Cherro Osorio, S. G. and Best, G., 2015. A case study on culture brokers and their role in
tourism management in the indigenous community of Taquile Island in Puno, Peru.
International Journal of Tourism Research. 17(4). pp.347-355.
Conto and et. al., 2014. Strengthening regional identities and culture through wine industry cross
border collaboration. British Food Journal. 116(11). pp.1788-1807.
Gibson, S., 2016. Mobilizing hospitality: The ethics of social relations in a mobile world.
Routledge.
Graham, B., Ashworth, G. and Tunbridge, J., 2016. A geography of heritage. Routledge.
Jurigová, Z. and Lencsésová, Z., 2015. Monitoring system of sustainable development in cultural
and mountain tourism destinations. Journal of Competitiveness. 7(1).
Kelly‐Holmes, H. and Pietikäinen, S., 2014. Commodifying Sámi culture in an indigenous
tourism site. Journal of Sociolinguistics. 18(4). pp.518-538.
Leong and et. al., 2015. Nostalgia as travel motivation and its impact on tourists' loyalty.
Journal of Business Research. 68(1). pp.81-86.
Omar, S. R., Ab Karim, S. and Omar, S. N., 2015. Exploring international tourists' attitudes and
perceptions: In characterizing Malaysian Heritage Food (MHF) as a tourism attraction
in Malaysia. International Journal of Social Science and Humanity. 5(3). p.321.
Silva, L., 2014. The two opposing impacts of heritage making on local communities: residents’
perceptions: a Portuguese case. International Journal of Heritage Studies. 20(6).
pp.616-633.
Terzić and et. al., 2014. Cultural Route and Ecomuseum Concepts as a Synergy of Nature,
Heritage and Community Oriented Sustainable Development Ecomuseum „Ibar Valley
“in Serbia. European Journal of Sustainable Development. 3(2). pp.1-16.
Timothy, D.J. ed., 2017. The heritage tourist experience: Critical essays, volume two. Routledge.
Wu, H.C. and Li, T., 2017. A study of experiential quality, perceived value, heritage image,
experiential satisfaction, and behavioral intentions for heritage tourists. Journal of
Hospitality & Tourism Research. 41(8). pp.904-944.
Zhou, L., 2014. Online rural destination images: Tourism and rurality. Journal of Destination
Marketing & Management. 3(4). pp.227-240.
Online
Porter Generic Strategies. 2016. [Online]. Available through:
<https://www.ifm.eng.cam.ac.uk/research/dstools/porters-generic-competitive-
strategies/>.
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Appendix
PESTEL analysis of Kenya
Factors Description
Political Factor  Coffee Aroma owner require to acknowledge employee
legalisation and culture of country, before launching items in
Kenya's marketplace.
 Administration will be able to utilise market opportunities and
make system function legally.
Economical Factor  Coffee Aroma business person have complete information
about Kenya economic conditions which help them to charge
appropriate prices for items.
Social Factor  Coffee Aroma uses latest tools and techniques in system to
provide products in according to taste and preference of
customers. This help administration to fulfil needs and wants
of people of Kenya.
Technological Factor  Coffee Aroma modern technologies are implemented in
system which help business person to utilise resources
efficiently and deliver appropriate items and services to
customers.
 This help administration to launch new variants and grab
attention of large number of clients.
Environmental Factor  Internet and other effective tools are used by management to
provide items as per needs and wants and on basis of market
trends.
Legal Factor  Kenya legalisation and laws are same as of Britain; which
helps Coffee Aroma to launch new variants and enhance
market position and goodwill.
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