Marketing Report: Blue Bottle Coffee's Entry into Singapore Market

This report details an international marketing plan for Blue Bottle Coffee's entry into the Singapore market. It begins with an introduction to Blue Bottle Coffee and its objectives. The report includes an evaluation of the Singapore market using PESTLE analysis, covering political, economic, social, technological, legal, and environmental factors. Market entry recommendations focus on Greenfield investment. The marketing strategy recommendations emphasize customer acquisition, retention, and spending, including positioning, service quality, and social media strategies. Marketing mix recommendations cover product, price, place, and promotion strategies tailored for the Singaporean market. The report concludes with a summary of the key findings and recommendations, supported by a bibliography of cited sources.

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INTERNATIONAL MARKETING

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Table of Contents
Introduction......................................................................................................................................2
Evaluation of the Singapore market................................................................................................2
Market entry recommendations.......................................................................................................4
Marketing strategy recommendations..............................................................................................5
Marketing mix recommendations....................................................................................................6
Product.........................................................................................................................................7
Price.............................................................................................................................................7
Place.............................................................................................................................................8
Promotion.....................................................................................................................................9
Conclusion.....................................................................................................................................10
Bibliography..................................................................................................................................11

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Introduction
In 2000, Blue Bottle Coffee Cafe was founded by the W. James Freeman in Oakland. It has
borrowed the name form Europe’s first cafes with the intension to roast the coffee in small
batches and sell in the 24 roasting hours. This has initially started the service of home delivery.
This organization has ceased the deliveries and opens the traditional café. Blue Bottle Coffee,
Inc. is known as the coffee roaster. Headquarter of the organization is situated in Oakland,
California, United States. This is known as the main player in third-wave coffee. The
organization focuses on the single-origin beans. The location of the organization is in Oakland,
California. It has the objective to expand the business in many areas (Makino, & Delios, 2016).
The organization operates more than 29 outlets and anticipates the opening of more cafes. It has
opened the store in additional sites that carry off-menu items like Gibraltar from Cortado. In
2012, this organization has received $ 20 million as the investment in venture capital. In January
2014, it has raised the $25.75 million as the new round of funding. More than $120 million has
risen by the investors as the investment. A large number of a stake in the organization was
purchased by Nestle. The evaluation of the Singapore market will include the PESTLE analyses
that help to understand the environment within the industry. Suitability with the market entry
recommendations has been covered through the analysis of green field investment. Further
discussion covers the marketing strategy recommendation for the Blue Bottle Coffee Café with
the huge investment in the market of Singapore. At the end discussion will cover the marketing
mix recommendations for the Blue Bottle Coffee Café to get more success.
Evaluation of the Singapore market
Tea boosts the larger amount regarding the value and it is much bigger as more coffee powder is
used compared to the tea per liter of beverage. A coffee sale has been propelled in previous years
as the out of home segment and relevant in the segment compare to other categories of drinks
(Thompson, & Arsel, 2014). It is known as the redefinition of the coffee from the particular
means of caffeination to the sensual experience that drives premiumization. In terms of the liquid
beverage equivalents, coffee is known as the most consumed beverage around the globe with
roughly 42.6 liters per person. Blue Bottle Coffee Cafe in Singapore will regularly see the higher
growth of retail value with the higher growth in fresh coffee, and fresh pods of ground coffee.

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The rising popularity of specialist cafes in Singapore will lead to the more sophisticated
preferences of customers. Instant coffee in Singapore is known as the biggest category as per the
volume as saw the low and slow growth due to the decreased consumption of customers.
Customers have switched their taste to fresh coffee like pods and avoid products which content
high added sugar like instant coffee mixes. Instant coffee has seen the shift on two fronts like
Coffee quality and sugar content. The organization through the present research, available data,
and detailed market analysis will grow the projection (Pestle, & Colvard, 2012). In 2020, the
expected amount of revenue in the Coffee segment is US$ 1760 million. This is expected that the
market will grow by 3.9 percent. It is also recognized as the largest segment is Instant coffee
with a market volume of US$1455. The huge amount of revenue is generated in the United
States. The average par consumption of Capita stands at 1.7 kg. The PESTLE analysis will help
the organization to evaluate the Singapore market.
 Political factors
Singapore is known as the stable nation with low social risk. The Singapore government likes to
encourage the more tourism through the hospitality industry (Schwarzinger, et al., 2012). The
agencies of government play a very important role to promote the nation as the global
destination. This kind of political factors will help the Blue Bottle Coffee Café to run the
business with more stability and gain the more benefits of investments through the strong
policies of government.
 Economic factors
This nation has the abundant natural resources at high level (Sealy, et al., 2014). It has the
advanced infrastructure state including the national roads, hotels, facilities of transport,
telecommunication, and action services. It will bring the more opportunities for Blue Bottle
Coffee Café in such good condition.
 Social factors
This nation has an effective and vibrant cosmopolitan culture (Somerville, et al., 2015). Every
person is more comfortable with English as belongs to strong education system. It will bring
more opportunities for the business Blue Bottle Coffee Café to handle all customers.

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 Technological factors
Technology forces like automation, incentives, and research and development activities will
bring the more creative opportunities for the Blue Bottle Coffee Café in Singapore and reduce
the barriers of cost within the business.
 Legal factors
The laws in Singapore are very strict and government protects the rights of intellectual property
that not allows the other organization to infringe the copyright (Pestle, Simonetti, & Curet,
2013). This is very good for the Blue Bottle Coffee Café to compete fairly.
 Environmental factors
The conditions of weather and climate change will not affect the Blue Bottle Coffee Café at large
as it have the enough resources to work within the environment friendly nature.
Market entry recommendations
Many organizations from the U.S. have established their operations in Singapore (Kamarazaly,
Mbachu, & Phipps, 2013). Many organizations use the services of agents and distributors to
serve the people of Singapore and many other markets of Southeast Asian. Organizations in
Singapore are aggressive as they represent new products and respond to new opportunities
enthusiastically. Organizations in Singapore focuses on factors like quality, price, and services.
An organization like Blue Bottle Coffee Café should be aware about the competition as it is
strong and buyers expect effective services after the sale. Techniques for selling and serving
customers are different and used in sophisticated markets. The developed strategy of social
media is growing regularly in Singapore due to the heavy operators of online channels.
Globalization in today’s time is dictating the new norms for organizations as global presence is
critical for organizations (Samiee, & Roth, 2013).
Singapore will be an effective choice for the Blue Bottle Coffee Café due to the less strict
multiculturalism and traditions within the nation. This will be very important for the organization
to choose the most suitable mode of entry (Cakmak, et al., 2012). The mode of entering within
the market of Singapore will depend on the many factors like market competition, the field of

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operations, and organizational capabilities. For entering within the market of Singapore
organization it should use the Greenfield investment. The organization should set the wholly-
owned local subsidiary that provides the parent organization full control over the sales. An
organization with a particular amount of investment regarding time and money will bring enough
chances to manage the riskier proposition. This will take a long time for the organization to
handle the challenges like recruitment, understanding of the market nuances, meeting
regulations, and gaining local knowledge. This will be an effective method that provides the
entire control of the Blue Bottle Coffee Café with high potential returns. The organization
through the effective incremental approach will get enough support to increase the business
involvement within the marketplace gradually over time (Patterson, Scott, & Uncles, 2018).
Marketing strategy recommendations
Marketing strategy for Blue Bottle Coffee Café in Singapore will be focused to get the new
customers, retain the existing consumers, got consumers to spend more and come back more
often. Organization by building the loyal base of the customer will generate more sales and get
favorable referrals (Plum, et al., 2013). The organization through positioning it as the unique
organization will become more capable to provide the perfect food and beverage service by
spending the time within the surrounding environment. Comfortable chairs and sofas, quite
relaxing music, and dim lighting will help the consumers to get more relax from daily stress and
distinguish single from the incumbent of the culture of competitors. In today’s time customers
like the fast services for this, it should appoint two employees to deliver the services to
customers. It will help to prepare the orders of customers through effective serving and take care
of the sales transactions. It will support the organization to record the date of sale on a computer
with the subsequent analysis of purposes of marketing (Kim, & Hwang, 2012).
Blue Bottle Coffee Café with the degree of standardization will become more capable to
advertise the traditional sense through print adverts, TV and many other promotional techniques.
An organization with the perfect and developed strategy of social media will become more and
enough capacity to increase and generate the big brand name through ethical behavior.
Customers with the effective development of range and product will become more capable to
share the personal experience. The international marketing strategy of Blue Bottle Coffee Café

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will help the business to make a community sense among the customers as the recognizable
brand. The effective use of social media will encourage the customers to make a sense of
belonging to the community and reward customers through rewards and use polls to ensure the
maximum crowdsourcing potential.
The organization will also have the option to demonstrate loyalty within the own part as
customers and focus on to transform the customers in brand ambassadors in place of investing
time and share a large budget within the aggressive marketing tactics that aimed to accumulate
the huge shares of new customers (Ashjari, et al., 2017). Standardization of marketing programs
will have a positive impact on the organization's performance and enable the Blue Bottle Coffee
Café to maintain a positive impact on the performance of the organization. Effective consistency
within the marketing strategy and tactics will help the organization to maintain a positive impact
on financial performance as a budget to develop the program of marketing will be lower.
Cultural differences within geographical marketing will make the difficulties to distinguish
profitability and affect the standardized marketing plane of performance (Anders, 2018).
An organization with an effective product offering will become more capable to introduce the
organization in the market that has a long-lasting tradition regarding tea. Blue Bottle Coffee Café
by the launch of many flavored drinks and food will gain more popularity as the status symbol in
Singapore. The organization will have the plan to train its workers with the extension to full
health policies, benefits of a job, and indicate the core values of the organization by licensing and
ensure the contentment of employees within the brand name that is indistinguishable around the
globe. The level of satisfaction and training of employees will help the organization to present as
the best tactics of marketing. The organization will create the atmosphere to read the feedback
and keep the touch with the realities of the experience of customers and not lose sight of the end-
user for effective services. The organization through the more creative approach within the
geographic areas will become more capable to offer the services that touch the heart of
customers (Aulakh, & Kotabe, 2017).
Marketing mix recommendations
The core product of the Blue Bottle Coffee Café in Singapore defined the requirements that
customers seek to satisfy while purchasing the product. It varies from customer to customer. The

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business strategy of the organization will depend on the effective system to provide reliable and
diverse earnings, cash flows through the low capital spending demand. The marketing mix is
known as the great concept of modern marketing. This helps to decide the marketing mix options
within the price, location, product, and promotion to meet the customer's demand. It delivers the
values to make a profitable relationship. It will include defining the differentiation, market
targeting, segmentation, and positioning (Brouthers, 2012). Blue Bottle Coffee Café will take
into consideration to bring the services and product within the market.
Product
It will be important for the business to know about the food and drink of Singapore. Business
instincts will be true to make market research through data and create a good decision. The
product and services of the organization will be the combination to serve the target market. The
product should include good quality, variety, service, design, and packaging. Products and
services of the Blue Bottle Coffee Café ensure the tasty, healthy, and unique experience to eat
without the hassle of prior planning. The organization through the additional services and
benefits will become more capable to improve the customers' experience. It will be transparent
regarding the decisions of food and go within the extent to listing the ingredients that used within
the recipes for benefit of health-conscious and add the trustworthiness regarding the brand name.
Organization by the initiative view of menu items and procedures of cooking will become more
capable to identify the innovative alternatives. The organization through the nutritional facts of
the menu will ensure that customers get a good experience. The organization through the present
spread of product offering will improve the business regarding revenue and structure. By
promoting the business it provides the exact and same essence of the product. The organization
through effective measurement of the product will take the advantage to differentiate the product
from other competitors and promote as a healthier choice.
Price
The organization should use two pricing tactics known as optional product pricing and line
pricing. It will have the objective to appeal to a wide range of customers. Product bundle pricing
will be the pricing regarding the products that offer the bundle at a decreased price. This
organization target the customer's group that eats together to enjoy a meal together at a decreased
cost. Optional product pricing includes the pricing of the optional product with the main product.

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It will serve the many varieties of product compared to many other fast service restaurants. The
organization should use the common tactics implemented by the food and beverage organization.
The organization should implement different pricing to become more effective to enhance sales.
It actively implements the new tactics of pricing more effectively to boost sales. New pricing
tactics will help the business to invite a large portion of the food and beverage market.
Promotional pricing of Blue Bottle Coffee Café will help to increase sales in a short time.
Organizations get a higher benefit to invite the large base of the customer through the ongoing
promotion like New Year, Christmas, and many more (Chen & Mujtaba 2017).
Place
A place for Blue Bottle Coffee Café in the marketing mix is not about the distribution channels
but about the entire process of bringing services and products to final customers. The location of
business with the advertising channel, decoration, and billboards will be the important content
for the Blue Bottle Coffee. This will be the reason that matters when the business location on the
high-end street with customers. Effective organization activities will help businesses to keep the
product available to consumers. Good location of business with a good impression like parking
of a vehicle in front of the restaurant in place of finding a lot of faraway parking. The business
size must be big to have an important space for people. An organization with a main connecting
location or in the shopping center will be fine for a special occasion, celebration, romantic date,
parties, and many more. The organization should use a crystal clear window to glance at
customers inside (Dunning, 2018).
It will generate an effective user experience to make a better decision (Tihanyi, Griffith, &
Russell, (2015). This will help the business to bring more customers with their friends and eat
with a discount. It will help to fill the purpose and make the business seem crowded. Blue Bottle
Coffee Café business will make an image for the potential consumer that good food leads to a
good business. In today's time individuals like those cafes which have a common and private
seat. Organization by learning from the other successor’s value design will save the money.
Online selling will be the new distribution channel for the Blue Bottle Coffee Café to access a
large base of customers. It can be done through Facebook, mobile applications, and website.
Selling through the mobile application and website will be the best thing as customers can pay
through their bank account (Gatignon, & Anderson, 2018).

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Promotion
Media types are print, outdoor, and broadcast. The organization will adopt the broadcast as the
media type and choose the internet as the prior media vehicle (Godwin, Kalapana, & Valli,
2013). The organization will set up the attention and interactive website that has products and
service information. In today's time, adult uses social networks like Facebook that is known as
the top social site and 43.3 percent of customers are adult. The organization will employ the
internet as the media vehicle as it manages to capture the huge percentage of its target audience.
The organization will also start an interesting and interactive website to publicize its product and
make known to a person regarding info about the Blue Bottle Coffee. Direct marketing and
public relations will be a promotional tool that uses by the organization. Direct marketing will
present the direct communication between the target customers and obtain the immediate
response regarding organization services and product to maintain good relationships. The
organization uses direct marketing through networks like Facebook and Twitter that are famous
among customers as the avenue to get feedback. This will be an effective platform to
communicate with customers. It will bring the opportunity for the organization to connect with
fans and engage customers on a personal level. Relations with the public refer to create good
relations through obtaining favorable publicity, creating a good corporate image and handle the
rumors (Hwang, & Kim, 2016).
The organization should also engage in more sales advertising and promotion to boost the sales
of business (Shan, 2012). Convenience products, advertising, and promotion of sales will be used
to attract the large base of the population. The more promotion of sales will help to attract more
potential customers and enable them to choose the organization over competitors. This will
become more possible to capture the potential interest of customers. An additional form of media
vehicles to spread promotion will enable the organization to maximize exposure to its
promotions and attract the attention of a large population of customers. It will be important for
the organization to have more media vehicles to reach potential customers that not able to know
about the latest available promotion. Blue Bottle Coffee Café will promote the products with
minimal advertising through other media vehicles like radio and television. Organizations by
choosing to advertise the market and its brand by other media vehicles will reach a large
population. It will decrease the cost per thousand exposures and enhance the marginal revenue

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causing the organization to become more cost-efficient. Organizations by the use of media
vehicles will become more capable to expose the goods to a broader market globally (Kogut, &
Singh, 2019).
Conclusion
In the limelight of the discussion, it can be concluded that Blue Bottle Coffee Café by expanding
the business in Singapore will become more capable to satisfy the needs of customers.
Organizations by providing effective services to customers will become more capable to increase
the pace of growth and geographical reach. Elements will help to contribute to the successful
expansion and recognized the associate entry mode selection. Marketing mix adaptability with
the promotional strategies will help to present cultural awareness. The main philosophy of the
organization will revolve around the atmospheres that create within the employees in place of
product offerings. The market entry mode will help the organization to make long-lasting
relationships with customers in the geographical region by seeking and rewarding the loyalty
brand customers. The organization is not seeking the short term objectives by aggressive
characteristics in place of well-established methods that promote regular growth and prove the
successful approach to internationalization. (Parasher, 2016) (Starc, 2016)

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