Coffee Alchemy: Marketing Plan for New Products in Australia

This report presents a marketing plan for Coffee Alchemy, an Australian café, focusing on the introduction of new coffee mixtures and mugs. The plan begins with an introduction outlining the importance of marketing plans, followed by the marketing objectives, which include increasing sales, achieving financial equilibrium, boosting profits, maintaining a competitive position, and growing social media presence. The report summarizes market research findings, including customer preferences and the café's strengths and weaknesses as revealed by a SWOT analysis. It details market segmentation by demographics, behavior, and psychographics. The core of the plan outlines the product, pricing, promotional, and place strategies. The product strategy focuses on coffee mixtures and mugs, priced affordably to attract customers. Promotion involves social media advertising and unique packaging, while the place strategy includes café sales, local supermarkets, and online availability. A detailed financial budget for marketing activities is also provided. The report concludes by emphasizing the importance of a well-defined marketing plan for the success of Coffee Alchemy's new product launch.

Business (Research plan)
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Table of Contents
INTRODUCTION........................................................................................................3
PART 1..........................................................................................................................3
Marketing objectives of business...............................................................................................3
Summarization of market research key points...........................................................................4
Analysis of current market situation...........................................................................................4
Marketing Segmentation.............................................................................................................5
Development of marketing strategies.........................................................................................6
Financial Budget for marketing..................................................................................................7
CONCLUSION.............................................................................................................8
REFERENCES.............................................................................................................9
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INTRODUCTION
Marketing plans are made for the purpose of ascertaining certain strategies
that has to be created and implemented in an organization when they launch a new
product or business (McDonald and Wilson, 2016). This helps in formulation of
courses of actions that management can use and it includes various marketing
objectives, SWOT analysis, marketing segmentation or mix, development of
marketing strategies and financial budget for the organization. This assignment
analyses a business project in Australia, Coffee Alchemy and creates a product,
pricing, promotional and place strategy or plan for new products that the organization
would like to introduce in the market. This includes a range of coffee mixtures and
mugs. Marketing of these products have been done through market research and
café’s current business situation.
PART 1
Marketing objectives of business
Coffee Alchemy’s management has created a list of marketing objectives for
introducing their new products to their customers. These are as follows:
Increase in sales by 20%
Café Alchemy has decided to create their marketing plan in such a way that
there will be an increase in their revenues by 20%. This will allow them to achieve
their objectives of marketing and focus on selling their new products to a wide range
of customers (Wrenn and Mansfield, 2014). Their plan will help them in attracting
and retaining customers for a long period of time.
Attain financial equilibrium in 4 months
Covering up costs incurred on new products at Coffee Alchemy by 4 months
is another marketing objective for the organization. They will be able to start earning
profits once they achieve equilibrium with the help of their marketing plan.
Increase in overall profits by 5%
Marketing objective for Coffee Alchemy is to increase their overall profits
from last year by 5%. This will be done by creating an effective plan for marketing
their new products, as focus will be given to them.
Have a stable position in the competitive industry
Coffee Alchemy will create a plan based on the objective of remaining
successful even during stiff competition (Rossiter, Percy and Bergkvist, 2018). There
are many cafes in Australia and it is important for this organization to have a stable
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position in the industry by understanding needs of customer and marketing their new
products accordingly.
Increase social media following
Marketing objective of the organization is to increase their fan following on
social media platforms such as Facebook, Twitter and Instagram. This marketing
strategy can help them in significantly increasing their sales, profits and customer
base (Katsikeas, 2014). It will also help them in attracting tourists that visit the
country.
Summarization of market research key points
Market research done for Coffee Alchemy’s new products through primary
and secondary methods have determined the following key points:
 Questionnaires and surveys taken from customers and local citizens have
given outcomes that they prefer buying coffee mixtures that can be used for
making coffee at home as it saves their time and money (Lee, Kozlenkova
and Palmatier, 2015).
 While tourists stated that they would be able to purchase coffee mixtures and
mugs as souvenirs from the country.
 Customers preferred purchasing mugs from café that they regularly visit.
 Coffee Alchemy has one of the best quality and taste in Australia, which is
why their products can be successful
 There are very few cafes that offer coffee mixtures for customers to take home
and they enjoy the fact that they can have good quality coffee whenever they
want
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42
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Coffee mugs Yes
Coffee mugs No
Analysis of current market situation
Coffee Alchemy’s SWOT analysis can help determine the current market
situation of organization, so that they can properly create a marketing plan for their
new products, which include coffee mixtures and mugs. It involves the assessment of
various factors that may harm or foster a business (SWOT Analysis, 2018). Given
below is the SWOT analysis of Coffee Alchemy.
Strengths Weaknesses
 Good location and ambience
 Highly trained staff
 Good quality food and coffee
 Excellent customer service
 Spacious environment
 Maintenance issues
 Lack of access to different coffee
 High pricing of products
 Shortage of financial resources
 Limited employees
Opportunities Threats
 Located near tourist spots
 Introduction of Wi-Fi services
 Long operating hours
 Home delivery of products
 Memberships for valuable
customers
 High competition
 Changes in economic policies
 Unsatisfied customers
 New coffee shops
 Change in coffee preferences
The SWOT analysis shows that Coffee Alchemy has strengths, which include
having a good location, food, coffee, ambience and s customer service. They have
opportunities, which include offering Wi-Fi services, home delivery and offers on
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applying for membership at their café. This can help them in achieving marketing
objectives and increasing profits from sales of new products (Burns, Bush and Sinha,
2014). Their weaknesses and threats include high pricing, limited employees and
resources as well as high competition, which can cause many issues for marketing.
Marketing Segmentation
Market segmentation can help Coffee Alchemy in determining their customer
target and different factors about them. It will enable them to create a marketing plan
that can help them in achieving objectives for their new products.
Demographic Segmentation
Coffee Alchemy has a customer base of mainly adults that either go to college
or work. They are individuals that like coffee and treat it as a necessity. There are a
mix of both males and females, with women being more dominant. They are mostly
citizens or tourists.
Behavioral Segmentation
This marketing segmentation refers to the division of Coffee Alchemy’s
customers, based on their behavior and decision making process (Market
Segmentation, 2018). While young adults that go to college or just started work tend
to buy trending drinks, as per the latest trends and the elder group prefer simple
coffee.
Psychographic Segmentation
Coffee Alchemy’s customers are usually those who are interested in coffee
and tend to buy it regularly. They make it a part of their lifestyle and have to satisfy
their desire for drinking coffee (Solomon and et.al., 2014). Their traits and opinions
depend on the type of beverage they want to purchase and this café sells various types
of them.
Geographic Segmentation
Coffee Alchemy operates in Australia and is therefore segmented to
geographical boundaries of the country. This makes it available to customers that are
present within the city and state.
Development of marketing strategies
Coffee Alchemy will develop their new products by using marketing mix and
strategies. These will include:
Product
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They will be launching 2 new products, which is a coffee mixture and mugs
that their customers can purchase for making coffee at home. The mixture is made
from important and exotic coffee beans while their mugs have been designed and
manufactured using high quality materials
(Holliman and Rowley, 2014). This gives them a competitive edge as other cafes do
not sell these products and due to their famous coffees, customers will definitely
purchase them. This can help give them the experience of Coffee Alchemy without
leaving their home.
Pricing
Coffee Alchemy realized that they have high prices for their coffee, which is
why they have priced their new products at affordable rates, so that maximum
numbers of customers are attracted. After determining the cost of manufacturing and
removing an estimate, the pricing strategies have been set. These affordable prices
will help them stay ahead of the competition as well.
Promotion
Coffee Alchemy has decided to promote the new products via social media
advertising. While customers that visit their care will be informed about the launch of
their new products (Solomon and et.al., 2014). A unique packaging has been done as
well, with the logo of café printed on them. These techniques will help attract many
customers to purchase them.
Place
The new products of Coffee Alchemy will be sold in the café and at local
supermarkets. They will be also available for customers to purchase online, through
their website and social media platforms, which will be delivered through couriers.
Financial Budget for marketing
The financial budget for Coffee Alchemy’s marketing strategies include
advertising, television, radio, design cost, social media, printing and labor. It has been
created to forecast the costs that will be required for their marketing plan of new
products for the whole year (McDonald and Wilson, 2016). It is as follows:
Marketing
Budget
(2017)
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Strate
gies
Jan
uar
y
Febr
uary
M
arc
h
A
pr
il
M
ay
Ju
ne
Ju
ly
Au
gus
t
Sept
embe
r
Oct
obe
r
Nov
emb
er
Dece
mber
20
17
Adve
rtisin
g
150 175 16
0
14
5
13
0
17
0
12
5
16
5
140 120 155 135
Telev
ision
220 200 19
5
21
0
18
0
19
2
14
0
15
6
197 182 207 215
Radio 80 100 10
5
90 95 10
0
12
0
86 95 110 98 102
Socia
l
Medi
a
280 250 27
5
26
5
30
0
31
0
29
0
32
5
260 305 285 300
Desig
n
Costs
200 250 26
2
28
0
29
6
27
8
26
5
28
9
290 298 287 275
Printi
ng
260 274 22
0
24
5
23
1
21
4
27
8
26
5
240 198 210 200
Labor 300 298 28
7
26
5
25
6
28
0
31
2
34
5
338 320 300 305
Total
($)
149
0
154
7
15
04
15
00
14
88
15
44
15
30
16
31
1560 153
3
1542 1532 18
40
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CONCLUSION
This assignment can conclude that making a marketing plan for Coffee
Alchemy is important, as it enables management to research about the market in
which they operate. They are able to make marketing objectives while segmenting the
market and analyzing various factors that can affect them. Coffee Alchemy’s new
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products can be successful with the right marketing mix and proper estimate of
financial forecast for implementing marketing strategies.
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