Strategic Marketing Planning: Cavendish Coffee Company Analysis

This report provides a strategic marketing plan for Cavendish Coffee Company, a family-owned business in Bristol. It begins with an analysis of the company's current situation, including its strengths, weaknesses, opportunities, and threats (SWOT). The report then evaluates the company's strategy, market orientation, and resource-based view. A marketing audit is conducted, encompassing environmental analysis and strategic priorities identified through TOWS analysis. The strategy formulation section utilizes tools such as the BCG Matrix, product life cycle analysis, and the Ansoff Matrix to recommend growth strategies, including market penetration, market development, product development, and diversification. The report also considers blue ocean strategy, competitive advantage, generic strategies, and industry analysis. Finally, the report concludes with recommendations and identifies potential risks and challenges associated with the proposed marketing tactics, offering a comprehensive plan for Cavendish Coffee Company to enhance its market position and adapt to the evolving business landscape.

Strategic Marketing Planning
Coursework

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Question 1........................................................................................................................................1
Current Situation of Cavendish Coffee Company...........................................................................1
Strategy, Market, Market Orientation..............................................................................................2
1. Corporate strategy..............................................................................................................2
2. Market orientation..............................................................................................................2
3. Resource-based view..........................................................................................................3
4. Competence and capabilities..............................................................................................3
5. Competitive advantage.......................................................................................................3
Marketing audit................................................................................................................................3
1. Environment analysis.........................................................................................................3
2. SWOT analysis...................................................................................................................4
2.1. Internal factor..................................................................................................................5
2.1.1. Strengths..................................................................................................................5
2.1.2. Weaknesses..............................................................................................................5
2.2. External factor.................................................................................................................6
2.2.1. Opportunities...........................................................................................................6
2.2.2. Threats.....................................................................................................................6
3. Strategic priorities..............................................................................................................6
3.1. TOWS.........................................................................................................................6
Strategy formulation........................................................................................................................7
1. BCG Matrix........................................................................................................................7
2. Product life cycle................................................................................................................7
3. Ansoff matrix......................................................................................................................7

3.1. Growth strategy matrix...............................................................................................7
3.2 Market penetration Cavendish Coffee Company........................................................8
3.3. Market development...................................................................................................8
3.4. Product development..................................................................................................8
3.5. Diversification............................................................................................................8
4. Blue oceans....................................................................................................................9
5. Competitive advantage..................................................................................................9
6. Generic strategies...........................................................................................................9
8. Industry analysis..........................................................................................................10
Question 2......................................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic marketing planning is considered as the continuous process by that the firm develops
marketing tactics as well as plans their implementations into targeted marketplace. Moreover, the
procedures that is undertaken within the present position of firm and assists in determining the
promotional opportunities & thereafter these opportunities. For this report, the chosen company
is Cavendish coffee shop which is known to be the family business which is manage and
operated in Bristol. It mainly sells tea, coffee, cakes and soft drinks. Moreover, they are roasting
and selling coffee since year 1840. The aim of this part is to utilise appropriate frameworks,
theories and concepts, evaluate and analyse the present position wherein Cavendish identifies
themselves as well as provide recommendations for marketing tactics. Apart from this, the
identification of risk and challenges are also related with the given recommendations are also
provided in this report.
MAIN BODY
Question 1
Current Situation of Cavendish Coffee Company
The Cavendish shop is arranged on a bustling road called Park Street, obliging college or
universities and staff, neighborhood office laborers, and travelers. While Charlotte appreciates
seeing understudies run to the shop, they have a propensity for making one mug of espresso most
recent two hours as they 'park' themselves at a table with their PCs to chip away at their most
recent Project. The shop likewise experiences a drop in exchange at Christmas and, less
significantly, in the mid year, when a considerable lot of the understudies return home.The
stylistic theme and feel of the shop are exceptionally oversimplified with wooden seats, wooden
floors, and essential rural enhancement.
Presently, due to COVID-19 has had a dramatic impact available on the market. Besides the loss
of change in 2020 and 2021, there is the capability for a permanent discount in footfall because
of flexible working practices (improved running from home) and on line teaching at the close by
university (fewer students on foot beyond the store en route to campus). Furthermore, there is an
increase in ‘at-domestic’ coffee intake, with people making an funding in coffee grinders and
coffee machines, as they are attempting to reproduction the great of coffee received in coffee
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shops. In truth, the out-of-home espresso marketplace is not forecast to go returned to its pre-
pandemic profits charge till 2025. Cavendish changed into gradual to comply inside the course of
COVID lockdowns. It provided a take-away provider however it become not as inexperienced
because the coffee hold chains. For instance, they have to develop some effectual marketing
strategy for their business.
Strategy, Market, Market Orientation
1. Corporate strategy
Corporate strategy is regarded as the portfolio approach towards strategic decision making
through seeking across overall business entity for determining how to develop the most value
business. Additionally, this formulates upon effective strategy of business that is focused with
strategic decision making for individuals business. So, in respect of Cavendish coffee shop:
Vision: Its vision is to provide higher quality products to their customer.
Business Idea: Its idea to initiate the take away services as during COVID-19 various colleges,
company’s shut.
2. Market orientation
Market orientation is regarded as the approach to business which focus upon determining the
requirements and needs of customers and develop items which may able to satisfy them. in
respect of Cavendish coffee shop:
Customer
orientation
Understanding customers so as to create
superior value and meet needs.
Competitor orientation Understanding their strengths and
weaknesses and strategies
Inter-functional
coordination
All functions working together to create
value. Involves the dissemination of
information and reducing inter-functional
rivalry
Organizational marketing
culture
Creating a culture that sees meeting
customer needs as paramount
Long-term
profit
Placing more emphasis on long-term
market performance rather than internal
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efficiencies and short-term profit.
3. Resource-based view
Resource based view of entity initiates from the concepts which company’s performance
identified through resources they have at their disposal. Moreover, they ways theses resources
are used as well as identified allow them to conduct and may facilitate distinct competitive edge.
4. Competence and capabilities
Blend espresso made 90% of deals at Cavendish coffeehouse. In which Cavendish gives the
diverse single-beginning espresso beans from one distinctive source every week. Therefore,
Cavendish coffee can join the extra espresso beans from the earlier week to make mix espresso
as mix espressos of espresso beans from the multi-sources consolidate to make wanted espresso
flavour. Accordingly, the Cavendish submits the utilization of assets adequately. In addition,
with the energy and information on espresso of Cavendish can give the best espresso taste to the
client.
5. Competitive advantage
Within this, all resources, capabilities and competencies may be integrated to develop a
competitive edge. Moreover, a competitive advantage is that in which a goods or services is
undertaken through the consumers for delivering higher value in comparison to rivals. In respect
of Cavendish coffee shop, their key resources is excellent coffee making techniques, staff and it
sis provide effective blend coffee tastes to customers.
Marketing audit
1. Environment analysis
For the environment analysis, pest framework is used that includes four factors. all of the them
discussed below in respect of Cavendish coffee shop:
Political factor: Within UK, due to COVID-19 various changes enforced by particular country
government in context of business. So, as Cavendish coffee shop are operating into same country
it have to follow that effectively and efficiently.
Economical factor: As due to COVID-19 the economies drop down which means that the
customers do not have much money to spend. While this affects all business including Cavendish
coffee shop as only those who have habits of having coffee would prefer.
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Social: At present times, various changes comes within society as they are more concerned about
their health . So, as a part of health consciousness trend several clients are decided to give up
caffeinated beverages for good health. It can outcomes in minimises in demands of coffee.
Technological factor: As technology is growing, so various kinds of machinery is also there for
making effective and higher quality coffee. So, this is essential for Cavendish coffee shop to
adopt new technology and machinery to facilitates innovative style items to customers.
2. SWOT analysis
Strengths Weaknesses
Strong history and reputation
Award-winning
Fresh and high quality of coffee
Strong provenance about products
Owner and employees identify with
company culture
Strong resource and knowledge
Location
Sale drop during the seasonal period
Students park themselves to do the
assignments
● High price
● Limited promotion
● Basic social media and lack of advertising
● Slow to adapt to the current situation.
Opportunities Threats
Store expansion
Knowledge to increase the variety
The growing interest in consumers of
product provenance.
High competition
2.1. Internal factor
2.1.1. Strengths
2.1.1.1. The Cavendish Coffee Company has been worked in bristol starting around 1840, which
gives the organization a solid history. As an outcome, it constructs consciousness of the café
toward the clients.
2.1.1.2. A solid provenance about espresso drives Charlotte Cavendish, the 6th era of Cavendish
Coffee Company, to have the information, energy, and care about espresso where she esteems
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espresso beans the most. Besides, Charlotte likewise mindfully enrolls laborers who are educated
and regular in espresso beans, which provides the client with the best insight of espresso.
2.1.1.3. Charlotte Cavendish sources espresso without anyone else, and that implies that she
picks the best nature of espresso beans that adjust with her standard, just as what is equipped for
the café. The way that Cavendish highlights diverse single-beginning beans every week,
alongside the espresso at the shop being recently cooked day by day presents the newness of the
espresso sold at the shop. 2.1.1.4. Not just a since quite a while ago run history gives The
Cavendish espresso organization a high standing, the Cavendish has additionally prevailed upon
a few honors the previous years for its espresso in the UK Barista Championships. In addition,
the shop gets various audits to be the best espresso ever on TripAdvisor.
2.1.1.5. The Cavendish shop is situated on a tumultuous road where college understudies and
staff, nearby officials, and vacationers pass by and visit routinely.
2.1.1.6. Despite the fact that Cavendish shop is contending with enormous espresso contenders,
Charlotte Cavendish can deal with a reliable net benefit during the previous years.
2.1.2. Weaknesses
2.1.2.1. Most of the Cavendish shop is in college understudies and staff. Numerous understudies
absorb the shop for quite a long time; be that as it may, request just some espresso to sit in and
work on tasks. In addition, the coffeehouse likewise experiences in deals drop during the
occasional periods, like summer and Christmas, as their clients don't come to the college.
2.1.2.2. The espresso sold at Cavendish shop is viewed as higher than others.
2.1.2.3. These days, online media effectively affects clients in numerous ways. Cavendish has an
essential site and Facebook page… which drives Cavendish to be need conveying and drawing in
with clients.
2.2. External factor
2.2.1. Opportunities
2.2.1.1. The key opportunities of Cavendish Coffee company is that it would able to expand their
store into various locations.
2.2.1.2. Moreover, they can also enhance their knowledge in providing variety of food items and
coffees.
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2.2.1.3. They can also develop interest in consumers of product provenance.
2.2.2. Threats
They key threats for them is their small shop, not so much eye catching interior and huge number
of threats.
3. Strategic priorities
3.1. TOWS
Existing products New Product
Existing markets The existing products of
Cavendish coffee company are
coffee, tea, soft drinks, and
cakes. It sells their products
into existent market that is
UK.
The new products that
respective organisation may
provides Blend espresso,
espresso flavour and other
within existent market place.
New markets The existing products of
Cavendish coffee company are
coffee, tea, soft drinks, and
cakes. So, they have
opportunities to expand their
online stores into different
countries.
The new products that
respective organisation may
provides Blend espresso,
espresso flavour and other
within new market place
Strategy formulation
1. BCG Matrix
This mainly stands for Boston consulting group. Moreover, this is strategy analysis tools that
aids in understanding the strategic options available across various portfolio. In respect of
Cavendish Coffee Shop, it was applied for exploring the growth potential of its product
categories. In addition to this, it is already obtained and firm should understands now upon
coffee market. Within BCG matrix, coffee at Cavendish would be Cash Cow that brings
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profitability without any future investment or potential required. Also, the introduction of coffee
would fall into question mark category, a lower market share but higher growth rate of business.
2. Product life cycle
Introduction Sales slow to build. Firm makes a loss as promotional costs
outweigh profits from sales. Build awareness/distribution,
encourage trial.
Growth Rapid increase in sales as awareness builds and distribution
grows. Competitors may appear with similar products.
Differentiate product from competitors, encourage repeat
purchase.
Maturity Growth rate slows. Severe competition. Firms may try to
maintain sales by finding new users or uses
Decline Slow or rapid decline in sales. Firm cuts marketing spend
3. Ansoff matrix
3.1. Growth strategy matrix.
Existing Products New Products
Existing markets
Market Penetration or
Market expansion
(Level 1 risk)
Product Development
(Level 2 risk)
New Markets Market Development
(Level 2 risk)
Diversification
(Level 3 risk)
3.2 Market penetration Cavendish Coffee Company
This is known to be the less risky growth strategy recommended by Ansoff matrix. The various
companies adapt particular strategy through distinct manner. In respect of Cavendish Coffee
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shop, they may opt respective strategy through providing rewards and loyalty cards to their loyal
clients. Also, rendering discounts that is helpful in maximising sales.
3.3. Market development
In relation to market development strategies of Cavendish Coffee shop, they always have a new
kind of coffee beans as well as acknowledge the market of coffee. Additionally, they also
understand that their key competitors are not those who are only providing special coffee and
artisan coffee but this is the famous coffee shop which are growing within Bristol. In addition to
this, it is utilised to be ahead of trends once but direct rivals are catching up.
3.4. Product development
Product development is other strategies that are to be examined within Ansoff matrix in
Cavendish Coffee shop. Mainly, this is much helpful growth strategy, although it is expensive.
Moreover, this urges them to develop its portfolio through representing new items for present
market place. In additionally, they are continuously formulating new development of products or
services such as take- away coffee after the situation of COVID-19.
3.5. Diversification
Ansoff model develops this clear that, diversification is one of the risky strategy. So, mainly new
product selling to new markets is quite challenging. However, the risk do not refrain Cavendish
Coffee shop to pursue it. For this, their business might initiate take away services along with
mixed espresso coffee and others into new market.
4. Blue oceans
As a concept of strategy, Blue ocean strategy was initially developed by W.Chan Kim and Renee
Mauborgne. Moreover, this is also known as BOS as this facilitates managers a techniques for
creating, identifying uncontested market areas rather than competing into pre-valent marketplace
along with cut throat competition as well as reducing margins. In respect of Cavendish Coffee
shop:
Blue ocean creation
Industry Exploring opportunities & spot threats across
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alternative industries
Strategic Group Looks across strategic groups within
Innovation & Entrepreneurship industry
Buyer Group / Target Segments Redefines the industry buyer group. It involves
redefining the consumer segments.
Value proposition offered by Starbucks 21st's
products and services
Looks across to complementary product and
service offerings
5. Competitive advantage
Competitive Advantages develops the value of entity for their purchasers which enhance the cost
of entity in developing this. Additionally, this comes from providing low cost than competitors
for equivalents advantages or rendering innovating benefits which offset a highest cost. In
respect of Cavendish Coffee shop, its competitive advantage is higher quality products that is
coffee.
6. Generic strategies
Cavendish Coffee shop involves the expansive separation conventional technique for upper hand.
In Michael Porter's structure, this technique includes making the business and its items unique in
relation to other café firms. This distinction features Cavendish Coffee shop incentive with
respect to top calibre and uniqueness of items. The organization's emphasis on claim to fame
espresso separates its bistros from numerous different foundations that offer espresso. Be that as
it may, the wide separation conventional system stretches out to different areas of Starbucks
Corporation. For example, the café business utilizes its economical and mindful obtaining
strategy to separate its items from rivals.
8. Industry analysis
Company Dimensions (internal) Industry Dimensions (external)
Financial Strengths
ROI
Environmental Stability
Rate of inflation
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Liquidity
Cash flow
etc.
Entry barriers
Technological changes
etc.
Competitive Advantage
Market Share
Customer loyalty
Technological know-how
etc.
Industry Strength
Growth potential
Profit Potential
Financial Stability
etc.
Question 2
As per the above strategic marketing planning, this has been analysed by me that for Cavendish
Coffee shop ansoff matrix is much effective. Moreover, this is known as the effective strategic
planning tools which represents four distinct ways the firms may able to develops their business
by product or market expansion. Additionally, I has been also identified that it is helpful in
understanding the various risks and challenges through considering all four strategies. In
additional to this, the strategic marketing planning assists respective entity for determining their
objectives as well as formulates a plans to attain them in effective and efficient manner. In
comparison to Nespresso, they utilises product differentiation strategy to project as it is one of
the luxury brands into their targeted market. Also, their machine comes into huge price range and
mainly target high income class people. While on other hand, Cavendish Coffee shop use market
development strategies and always have a new kind of coffee beans as well as acknowledge the
market of coffee. Additionally, they also understand that their key competitors are not those who
are only providing special coffee and artisan coffee but this is the famous coffee shop which are
growing within Bristol. In addition to this, it is utilised to be ahead of trends once but direct
rivals are catching up.
CONCLUSION
As per the above report, it is essential for all organisations to develop strategic marketing plans
for their business. As it is the continuous process by that the firm develops marketing tactics as
well as plans their implementations into targeted marketplace. Moreover, the procedures that is
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undertaken within the present position of firm and assists in determining the promotional
opportunities & thereafter these opportunities.
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REFERENCES
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