Strategic Marketing Plan for Cavendish Coffee Company, Bristol

This report provides a strategic marketing plan analysis for Cavendish Coffee Company, a Bristol-based establishment selling coffee, tea, soft drinks, and bakery items. It identifies the company's current position, challenges, and risks, utilizing SWOT and PESTLE analyses to assess its strengths, weaknesses, opportunities, and threats. The report delves into the impact of the COVID-19 pandemic on the business, evaluates the effectiveness of its current marketing activities, and explores Porter’s generic strategies (cost leadership, differentiation, and focus) to gain a competitive advantage. It concludes with recommendations for improving marketing strategies, such as establishing cross-department workflow management and enhancing promotional activities. Desklib offers various study tools and solved assignments for students.

Strategic marketing planning

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
(1) using relevant theories, analyse and evaluate the current position of company....................3
(2) critical reflection..................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................13

INTRODUCTION
Strategic marketing planning is the systematic process of creating a strategy for
marketing in the business that highlights company’s objectives, their programs that will be useful
to accomplish those goals. In addition to this, it will also create clarification about who is
responsible for metrics and at what time company will be achieving goals. The major importance
of this planning is to focus on the essential things in the company to business market. This will
also try to develop things to help company reach their targets. Cavendish coffee company is
situated in Bristol, the company sells tea, soft drinks, coffee and bakery item cakes. The present
report will provide detailed information about current position of the firm. The report will
identify challenges and risk faced by the coffee company. Furthermore, it will give
recommendations and also reflection along with assessing its weaknesses and strengths for
strategic marketing planning.
(1) using relevant theories, analyse and evaluate the current position of company
Analysing and evaluating the current position of Cavendish
By evaluating the case study, it has been identified about issues and challenges of coffee
company cavendish. The company has limited promotional activities, so people are unaware
about the brand name. A firm has a Facebook page and basic website from which people can find
out the details about the shop. They are not must have focused on using their website to any great
extent. So, it is necessary to improve its promotional activities in order to attract more customers
and other stakeholders.
Although company has successful maintain a consistent gross profit for the last 5 years,
now more focusing on improving its profitability and sales revenue. But they have not yet
decided how to accomplish the target of attracting more new customers and providing facilities
to existing customers. Due to heavy competition in the big chains and coffee shops in Bristol
over the last 5 years, the firm has to face ups and downs. The firm’s manager knows that they
need to gain competitive advantage in order to establish a clear point of difference. This will
ultimately help them to maintain the business operations successfully and let the company grow.
Due to corona virus pandemic the firm has to suffer loss of trade in the year 2020 and 2021.
Although firm is recovering its market position by using various strategies and implementing
new business practices. Because of pandemic, as a result of flexible working hours or work from

home facility and everything is working online at the universities and colleges students and
people walking straight to the café’s and restaurant. The firm has offered a take away service to
its customer but it was not as effective and efficient as the coffee shop supply chains. In short,
the firm is facing issue in its supply chain management, and therefore needs to recover as soon as
possible says manager of the company.
SWOT analysis
Strengths- Nowadays, the coffee shop has good target market and customers who like to
drink coffee require high quality service such as good sitting arrangements, clean tables and
place. It’s because of these facilities the any coffee company can improve its customer base as it
gives impression of a healthy and clean environment (Teoli, Sanvictores and An, 2019). As
people loves to drink coffee, the coffee shop can make direct relationship with customers who
come to the shop to have coffee in various varieties.
Weaknesses- launching a coffee shop in a new market can be difficult because owner
need critical and important data to check the statistics of business trends. Thus, sometimes it is
very difficult to gather all important market data and collect the detailed information about target
market. In today’s business environment especially in barista or café’s, competitors can easily
enter the market and firm have no option but to share the profitability with them.

Opportunities- Due to corona virus pandemic, the business market has faced a lot of
challenges so does Cavendish. As many companies are allowing their employees work from
home facility and flexible working hours or practices (Wang and Wang, 2020). The firm has an
opportunity to expand its business and find out various strategies in order to attract more new
clients. For example- company can attract students by offering them coupons or discounts as
online study and teaching at the local university has allowed them to learn and teach from
anywhere.
By adopting these step, coffee shop can develop a direct relationship with clients which is
beneficial for company’s performance. Also the firm has an opportunity to keep on trying new
creative ideas and innovative methods to improve the performance of business such as attractive
infrastructure, changing seating styles and product taste along with varieties of products.
Threat- nowadays, coffee shops are price sensitive market, thus it is said that Coffee is such
a product that company can’t increase the price at a certain limit. If the company suddenly raise
the price of the coffee people would stop coming to shop for having coffee because they feel that
it is too expensive. In today’s business market, competitors lower the product price in order to
attract more customers, it is the major threat for company’s performance.
PESTLE analysis
Source: (Christodoulou and Cullinane, 2019).

Political factors- Due to pandemic, the tax and trade policy have been changed by
government and exports have been reduced, this decision effect the export business of many
companies. So, it is important for firm to keep track on any changes in policies made by
government. They need to focus on the rules and regulations regarding society and environment.
As hospitality industry has support of government they have increased the spending on
infrastructure development (Achinas and et.al., 2019). The shop has good chance to grab this
opportunity and make necessary changes in order to attract customers. But firm has to maintain
its quality standards and follow various norms as the shop is in food industry.
Economic factors- Due to COVID-19, the rate of unemployment rises and income of the
people has decreased which has impacted the profitability and performance of the firm. Since
this crisis, customers are not spending much on more expensive produce. Therefore, Cavendish
has to adjust their operation costs and labour costs according to the change. As already discussed
the export of the products or services have been decreased, the firm should focus on reduction of
cost of their labour and other expenditure.
Social factors- As nowadays people purchasing and buying behaviour influenced by social
life and lifestyles, culture and trends. The firm should focus more on the locations and things
which attract young generations (Teoli, Sanvictores and An, 2019). They need to consider the
taste, wants, needs and preferences of the customer trends of working practices, growing
population and lifestyles. These changing behaviour of customers, people spending their income
more on drinks and food, market trends and business patterns make firm to focus social needs
and trends.
Technological factors- In today’s era, barista and food industry are always ready to use
innovative ideas and technology. By adopting unique customer engagement, food innovations
and other offerings the firm can make people happy and attract new clients. For example-
company can manage their menu according to the events, festivals, office meetings and seasonal
demand (Nandonde, 2019). Cavendish needs to focus on adopting and utilizing new technology
such as online home delivery and web based platform in order to gain competitive advantages.
By using new technology, the company’s manager can understand the preferences and need of
the clients who visit the coffee shop frequently. They can effectively design a personalized
experience for customers such as change in working places as people are doing flexible working
practices.

Legal factors- legal factors include labour laws, licences, regulation made by government,
so before taking any business step company needs to keep track on changing laws. By
understanding these factors firm can ensure to attend the complaints raise by customers. Firm
needs to follow legal requirement whenever they are going to expand its business.
Environmental factors- Nowadays, people are more concerned about surrounding
environment and government also imposed various types of rules and policies to reduce carbon
foot print and wastage (Achinas and et.al., 2019). So, firm needs to focus more on using
sustainable products. By understanding concept of these factors company will eventually help for
production of coffee.
Porter’s generic strategy
In order to gain competitive advantages and create market position in the company, firm
needs to focus on Michael porter strategy. This strategy says that the firm needs to either chooses
to lower the product price or chooses product differentiation to attract customers and create
customer base in the competitive market. Sometimes cavendish needs to concentrate on the focus
strategy by concentrating on a small segment of the market in order to satisfy the customer’s
unique demand or wants which is known as niche marketing. By implementing one of the
strategy given by Michael porter company can successfully achieve its goals.
It has been said that firm is stuck in the middle when it does not fit into any of the strategy.
When the firm does not offer unique features to convince clients or the price of product is too
high for them to purchase as compared to its competitors. Therefore, the firm is said to be stuck
in the middle, such company generally have low productivity because they lack a clear vision.

Source: (Islami, Mustafa and Latkovikj, 2020)
Cost leadership strategy- This strategy says that company can achieve success or gain
competitive advantages, by lowering the price of product company can increase its market share
and make profit on each sale. According to (Firoz Suleman, Rashidirad and Firoz Suleman,
2019), company that are successful in achieving cost leadership strategy usually have great
customer base, efficient logistics, access to the capital, innovation strategies and a low cost base
which includes raw material, labour and other benefits. By adopting, cost leadership strategy as
its marketing strategy company is achieving continuous improvement.
Differentiation strategy- the major role of this strategy is to create brand image in the
business market by performing differently in order to attract more customers. It is necessary to
make company’s products or services different from competitors and attract clients so that they
can visit repeatedly (Islami, Mustafa and Latkovikj, 2020). For example- company can
differentiate itself such as presenting coffee, taste, quality, support and features.
To make a success of this strategy, company need market research about the trends going
on in the industry. By developing new technology and innovative ideas such as infrastructure and
innovative presentation of coffee. By following these steps, Cavendish can have the ability to
deliver high quality coffee. Firm needs to use updated technology or equipment’s in order to
provide customer what they want such as varieties of coffee. Also, Cavendish needs to invest

more in effective sales and marketing so that the market understand the facilities provided by the
differentiated offerings.
Focus strategy- when the company use focus strategy, they can easily satisfy the needs
of customers because they concentrate on niche markets. It is necessary for company to develop
unique low cost strategy, because people are more attracted towards low cost product with good
quality (Lauer, 2019). If Cavendish use focus strategy, then they will be able to build strong
brand loyalty amongst their clients which is beneficial for company to achieve success.
But if the company use differentiation and cost focus together, then they can add
something extra to customer’s needs. This includes reducing costs, providing high quality coffee,
taste and quantity of the coffee, improving differentiating coffee items. By doing so, firm will be
able to understand the deep knowledge about customers’ needs and preferences.
Recommendations for marketing strategy
 By evaluating the report, it has been concluded that firm needs to establish a cross-
department workflow management so that team work can be maintained.
 It is advisable to do market research about the needs and wants of the customers so that
proper service can be given. This can be done through taking feedback from customers
and overall survey by telling people to fill the feedback form in which they can also
suggest something innovative and areas of improvement.
 The Cavendish needs to focus on its delivery system so that facilities can be given
properly. For example- they need to focus on time delivery tool to satisfy the needs of
customers.
 It has been recommended that company needs to establish their key marketing metrics in
order to know its continuous progress, market share, customer’s satisfaction level,
employee engagement, For example- key performance indicators and benchmarking.
 By understanding the report, it has been suggested to focus on marketing campaign and
invest more on ROI of company’s campaigns, so that more customers can be attracted
(Liao, Widowati and Yang, 2021). By measuring the profit of each campaign, company
can identify which one is better and which one gone wrong. Cavendish needs to more
focus on its promotional activities such as attracting through social media videos,
advertisements, sales and marketing campaigns.

 Firm needs to provide discounts and offers so that customers can easily convince people.
For example- customer Can use loyalty cards to earn free coffee or various types of
drinks/ beverages.
 By understanding the concept and theories used by competitors will be helpful for
Cavendish to provide quality service to people who loves coffee. For example- this can
be done through surveys and collecting information provided by customers and
advertisements.
 Great marketing is all about experimentation, measuring and testing different types of
methods so, it is suggested to keep experimenting with new marketing techniques to find
out what works best.
 Also, Cavendish has to keep track on political, economic, technological and social factors
in order to meet the needs of market trends by using PESTLE and swot analysis.
 Company’s team should come up with innovative ideas to create customer base so that
they can provide quality service to customers who visit coffee shop. For example-
modern technology used by most of the coffee shops that is mobile printers that integrate
with the software names as POS. This can be used by Cavendish to make order taking
mush easier. This software can show the detailed information about menu and orders on
the screen of devices.
 It is also suggested to provide proper training to employees so that it will be helpful to be
motivated towards company’s vision. If staff member knows what the company is selling,
they can give good service to clients. Because when clients ask questions or want
recommendations about coffee varieties and other drinks, employee responses should be
helpful for them (Islami, Mustafa and Latkovikj, 2020). In short, it is important for them
to know about the taste of coffee, ingredients use while making different types of coffee
and so on.
 The effective managers not only train the staff but teach them about coffee servicing and
encourage them to regularly improve their efficiency of work. Thus, it is said that if
company invest in training and development program for employees them company can
easily accomplish its target which is helpful for business to grow.
 An effective leadership style and communication skills will be helpful to create positive
environment at place. Having regular basis employee meetings will be helpful for

cavendish so that they can understand the policies and concerns raised by customers and
work accordingly.
 Lastly, it is important to ask customers what they had like about the place, their positive
or negative response matters a lot in order to adjust new offerings if necessary.
Risks or challenges with recommendations
As per the recommendation, it has been evaluated that firm needs to invest more in
various types of services. So, they need to reduce unnecessary expenditure, in order to save
money for future and to avoid any uncertainty. It will need more employees, workers and
financial support to achieve goals.
(2) critical reflection
By adopting PESTLE analysis, Cavendish can evaluate their weaknesses and strengths and
can understand macro environment factors. During the study, I have learned that this is the most
effective tool to help firm while developing a strategic plan for their business. So, it is important
for them to use this in a proper way in order to make adjustment which is beneficial for firm.
During the module, by analysis strengths and weakness of the company I have learned that for
successful business Cavendish needs to follow and keep track on policies made by government
related to politics, economics, environment and society to avoid any uncertainty in the future.
Although, the firm’s manager is focusing on new marketing strategies such as promotional
activities, sales and marketing and customer satisfaction, but for rapid growth they need to keep
track on marketing trends and utilize up to date technology. The major strength of this theory
includes it allows company to make important decisions. This is the benefit of Pestle analysis as
it allows Cavendish to form a good impression on the customers that might positively influence
the new business strategy. This will be helpful to identify risk factors and make necessary
changes. For example- By using PESTLE analysis, Cavendish can focus on technology also
adopting and utilizing new technology such as online home delivery and web based platform in
order to gain competitive advantages. By using modern technology such as POS software the
Cavendish can satisfy their customers because it can improve order accuracy. On the other hand,
the major limitation of this theory includes, sometimes the data used by company is totally based
on assumptions which may lead to paralysis by analysis, I have also evaluated that this method
make predictions about the requirement of future. Hence, while analysing this method Cavendish
needs to follow all the factors such as environmental, legal, technological and others.

On the other side, Nespresso is a premium brand of coffee which has attracted lots of
customers by providing them quality services. With the help of tele-ordering, e-commerce
websites and other platform, company is directly selling coffee capsules to customers. The
market share of the company is 8% of the total market of coffee and 25% in terms of value. The
firm has successfully achieved growth and has attracted the attention of its competitors who have
launched their own machines or manufactured coffee capsules. The major issue seen here is due
to heavy competition in the field of food and beverages, the firm has to develop their marketing
strategies based on coffee systems and machines or equipment’s used in the process. Weakness
include lack of recyclability, because people are concern about material used for packaging, the
firm needs to keep in mind about this concern raised by customers.
On the macro environment side, economic downturn has affected the buying behaviour of
Nespresso customers, which has influence the performance of firm. I think due to heavy
competition and increasingly trends of internet facilities and online shopping has impacted many
companies. By using PESTLE anslysis, it has been evaluated that the major limitation here is the
company is not focusing on supermarkets so it is important for them to expand its business and
provide premium quality coffee in emerging markets too. In order to gain competitive
advantages, the firm needs to focus on customer’s service more, invest more on technology and
innovation, understand deep market trends, improves relationship with stakeholders, focused on
differentiation strategy, improving brand image through social media and marketing campaigns.
CONCLUSION
To conclude, marketing is all about promoting business and its products to people, so that
they can easily purchase product of the company. Nowadays, people are more concerned about
eco-friendly environment, so firm needs to focus on increasing concern about packaging, use of
raw materials without doing harm to environment. Furthermore, it has been summarized that
firm needs to concentrate on developing marketing strategies used by coffee companies such as
Nespresso compatible capsules. It is important to use innovative skills to grow the potential of
product in order to attract customers for experimenting coffee. At last, study concluded that
while adopting this strategies firm needs to more concentrate on increasing its value in market
through advertising, enhancing customer service, expanding its business through offering