Coffee Republic Marketing Report: Principles, Mix, Strategies & STP

This report provides a detailed analysis of Coffee Republic's marketing strategies, principles, and practices. It examines the marketing mix (product, price, place, promotion) and how Coffee Republic utilizes each element to reach its target customers. The report also explores the STP (Segmentation, Targeting, Positioning) model employed by the company, detailing how Coffee Republic segments its market based on demographics and psychographics, targets specific customer groups, and positions its brand to maintain a strong image. Furthermore, the report discusses relevant marketing theories, including the Ansoff Matrix, and evaluates the effectiveness of Coffee Republic's marketing efforts in achieving its business goals. The analysis covers various promotional activities, market segmentation strategies, and overall approaches used by Coffee Republic to capture market share and enhance customer loyalty, providing a comprehensive overview of their marketing operations.

Principles and Practices of
Marketing

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................4
Marketing principles..............................................................................................................4
Marketing mix........................................................................................................................4
Marketing strategies adopted by Coffee Republic.................................................................7
STP model..............................................................................................................................7
Theories of marketing............................................................................................................8
Evaluation of marketing efforts............................................................................................10
CONCLUSION.............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Marketing is the most important activity that an organisation uses for promoting and
advertising its products and services with the main aim of gaining profits and revenues and it is
also used with objective of promoting and persuading the customers and users to purchase
products from organisation(Asseraf, Gnizy and Shoham, 2020). By conducting marketing
activities by organisation business enhances its market share and customer base that helps in
leading business towards higher profitability ratios and sales.
Coffee Republic was founded by Sahar Hashemi and Bobby Hashemi. Coffee Republic
was founded in 1995 in London, United Kingdom. This company has 129 locations. This report
consists of business situation of Coffee Republic, its marketing strategies, policies, marketing
models, and various marketing theories that have adopted by it. Effectiveness of marketing
efforts and main four Ps are also discussed in this report that helps business to attain higher
market share and growth objectives.

TASK
Marketing principles
Marketing principles are the ethics and norms under which a business organisation should be
functioning and operating its work. Organisations use different marketing principles to advance
their functioning and performance of existing outcomes and results or for introducing new
product in the market for more market gain(Galchynska, 2019). Marketing mix is one of the
important tools and techniques for designing any product promotion strategy that help in
covering a large share of market. The application of marketing mix helps a business in focusing
its emphasis on most important and key areas of development by promoting and advertising a
product. Various tools and techniques are used by a business entity that helps and supports
growth and development of marketing areas and functions with achievement of greater profits. In
the last three years, all the following marketing principles, theories, strategies and policies are
used for capturing market by Coffee Republic.
Marketing mix
It is that important and efficient marketing tool that helps and enables an organisation and
business in attaining its certain predetermined marketing goals and objectives in specific time
frame with greater profits. All factors and aspects of marketing mix are of many types. The most
important of which are price, place, promotion and product (Hanson and Kalyanam, 2020).
Marketing mix helps business to take efficient decisions that helps it in leading business towards
growth and success. Factors of marketing mix in Coffee Republic are mentioned below: Product: product is the main element that is produced and provided in market for its use.
It is that element and factor which a company or an organisation offers to its customers
and the customers avails and uses that product, these customers are those that are targeted
in order to fulfil their need, wants, demand and requirement. Coffee Republic provides its
customers with highly qualified coffee, some great range of coffee beans, dark coffee,
expresso coffee and its products. Coffee Republic provides range of coffee and coffee
related products to customers and also enhances its capital and investment in innovation
and greater coffee related things and research and development in order to create new
product and upgrade existing products for future. There are latest technologies that are
implemented and used by organisations for more creation of effective and quality

products to customers. There are various changes implemented in the last three years by
Coffee Republic. It has improved its quality along with that there has introduction in new
products. Allergen concept has been specially designed for customers that are allergic to
certain things or certain items(Ho, 2020). Coffee Republic has clearly understood that
people have allergies and they can fall ill, thereby it was necessary to require knowledge
from customers and produce accordingly. Even certain nutritional items have also been
introduced along with nutritional chocolate bars, cakes and all.
 Price: It is value of products or services in terms of money that is decided by an
enterprise or organisation after all researching work and all. For a company or an
organisation, it is important as well as essential to set price or a definite value of the
products or services on basis of their quality and quantity of these products. Coffee
Republic conducts market research with all its team for analysing all current market
trends, conditions and competitors position, pricing and all before establishing products
prices. Coffee Republic uses premium pricing strategy and targets higher and middle
class customers that are interested in healthy lifestyle. Organisation charges premium
price that are great for leading business towards growth and success to all its customers
for market share with greater profits.
Figure 1Market pricing share of Coffee Republic

 Place: This is yet another important factor which involves location from which
customers can purchase particular products and services of a company. These places are
for easy availability of products to customers. It can be from a high street, retailing stores
and departments, e-commerce or online shop, mail order, shopping mall and many others.
Coffee Republic provides its coffee and all other coffee related products through large
number of outlets at worldwide that maintains its global reach(Kotler and Armstrong,
2018). It has number of retail stores, online stores and it also involved in selling products
through e-commerce also. Coffee Republic also uses various different modes of channels
especially direct selling to its retailers, that help them in attaining timely availability of
products at all different places in the world. There are many places that are served by
Coffee Republic. Earlier they were just serving in London. Along with UK, in the last
three years, certain other areas that are served by Coffee Republic are Isle of Man,
Middle East, Central and Eastern Europe.
 Promotion: Promotions helps business to remind and let more use of products by
customers and even persuades them in purchasing more and more organisational products
and services. This factor includes all activities that related to advertising, sales,
promotion, personal selling and other related activities to an organisation. Coffee
Republic plans various activities and implements various promotional activities,
advertisement, social media marketing and other medias marketing too, direct marketing
and other modes of marketing(Liu and Levin, 2018). Thus these help their business in
attaining higher market share and attracting large number of customers towards
organisational innovative and quality products. These promotional activities are
undertaken and conducted at many other places to capture more market covering. Coffee
Republic has used certain promotional activities in last three years are printing and
broadcasting ads for company. Along with that it has used billboards, videotapes, internet
sources all along to promote the company at the global level to capture great marketing
share in the world to increase its sales (Promotional activities of Coffee Republic, 2022).

Marketing strategies adopted by Coffee Republic
The marketing strategy can be defined as overall plan of business ideas that enable it to reach its
customers and users. Coffee Republic strategies even help in persuading them in becoming loyal
and permanent customer of organisation and then involves their retaining for longer time. There
are various different factors and aspects that are included in marketing strategies such as choice
of customers, customer’s demographic data, organisational vision for future growth, business
value proposition and all (Palmatier, Petersen and Germann, 2022). These provide
directions and motive to overall business operations with aim of achieving business goals with
efficiency. Coffee Republic has created proper, effective and efficient marketing strategies that
enables it in attaining its marketing objectives and these are discussed below:.
STP model
STP is process that consists of segmentation, targeting and positioning of an organisation for
analysing potential customers and even dividing whole of the market into smaller parts than
maintaining positioning by providing them quality products and services. Coffee Republic is one
of multinational organisation providing its customers at international level that enables it to
cover wider market share and customer base for greater profits (Shah, Azhar and Bhutto,
2019). This STP model is used by Coffee Republic in dividing whole market into smaller
segments and for development of effective strategies to provide products accordingly. It enables
business to run business operations in efficient and effective manner. Factors related to STP
model that Coffee Republic uses, are as follows:
Segmentation: Segmentation is stage in which organisation has to divide its whole market into
smaller segments or parts on the basis of similar needs and requirements and needs and wants of
its users and customers(Нavryliuk, 2019). It enables Coffee Republic in understanding needs,
wants, demands and requirements of customers on the basis of detailed information and other
relevant detailing that provides various competitive advantages to organisation over other
competitors in market. Coffee Republic segments its market and customers on the basis of
various aspects that are explained below:
 Coffee Republic has divided its market on the basis of certain psychological factors such
as customer’s lifestyle, personality as well as social characteristics and even their coffee
choices with quality and quantity they consume. Coffee Republic segments customers in
a group who prefer healthy and unhealthy lifestyle. Respective brand connects and

provides their customers with their choices and influence them to purchase their products
for a longer time period. Demographic segmentation is also used by Coffee Republic to divide the customers into
group. These aspects are related to age, family size, their healthy living style along with
their income and different socio-economic status customers. Coffee Republic has many
parts covered in UK, most of which is London.
Targeting: Targeting can be defined as the process and an important technique that is used by
organisation, in which organisation targets most potential and profitable market segment that
consists growth and development opportunities for business(Swanson and LaLuzerne,
2018). Coffee Republic concentrates on the market segments which have growth potentiality,
attractiveness, more customers and lead business towards success. Coffee Republic targets
customers with healthy and unhealthy lifestyle and provide range of related coffee products to
them.
Positioning: Positioning is last and final step involved in STP process in which organisational
maintains their differentiated, great and valuable and strong image in the mind of customers.
Coffee Republic conducts various marketing campaigns like road shows, television
advertisements and many other and all other related activities that will help them in analysing
customer’s needs, requirements, buying behaviour, spending pattern and other aspects and
provide them products that leads business towards growth and success in market.
Theories of marketing
There are many theories that can be used for marketing of a product by an organisation. An
organisation needs these theories for marketing and indirectly for more capturing of a market
share. Some of the main important marketing theories used by Coffee Republic are as follows:
Ansoff Matrix:
The Ansoff matrix is the most important approach in marketing management which is used and
applied for gaining effective growth and development. In the recent times all major organisations
and firms concentrates and focus on the application of Ansoff matrix to lead the competition in
market(Tontuș, 2018). Application of Ansoff matrix has helped Coffee Republic in gaining
growth and expansion at the marketplace in London. The Ansoff matrix is also called
product/market grip. This theory has even helped Coffee Republic in planning and analysing

strategies for further growth. The Ansoff matrix and its application for Coffee Matrix is
mentioned below:
1. Penetration of market- This is a important technique in marketing management which
has helped Coffee Republic in gaining desired success. In the market penetration, the
company has to put all its emphasis on increasing sales and revenues of current products
in the existing market share.
2. The development of product- The very important second element of Ansoff matrix is that
of product development which involves and includes all its focus on making,
development and introduction of a new product in market. The product is created and
introduced for increasing the sales and profitability ratios.
3. The diversification- The diversification is the most important element in Ansoff matrix
that helps the products’ diversification with entering a new market, along with the
introduction of new products in market.
BCG MATRIX:
This is model that also helps in marketing management which is used for increasing sales
turnover and revenues for an organisation (von der Heidt, 2018). The BCG matrix helps with
the increase in marketing share and even in overall revenue of the firm. Application of BCG
matrix for Coffee Republic is mentioned below:
1. Cows- These are the products having low growth and these cover high sharing in the
marketplace of an enterprise. It is important and necessary for the company to focus on
with the increase in growth of these products. Certain dark coffee products are these and
Coffee Republic should try to grow these products along with increasing the market
stability.
2. Star products- The star products of a company are those that have high growth and are
developed and have a high share at the marketplace. These products are responsible for
increasing the competitive strength of the company as well as it also helps in increasing
the market coverage area. Healthy lifestyle involves drinking healthy coffee and it is that
star product of Coffee Republic.
3. Question mark products- The question mark products are those products of company or
organisation, that are related to high growth with low market share. It is necessary and

important for a company to concentrate its focus on increasing share of these products, in
order to increase the profitability revenues for Coffee Republic.
4. Pet products- The pet products are those products of a company or an organisation which
have low share and low growth in the marketplace and don’t earn that much profits for
the firm. It is necessary and essential to increase the efficiency and effectiveness of these
products and there is also need to emphasize on growth and development of different
strategies by the company.
Consumer decision making process:
The organisations use this consumer decision making process for understanding the choices and
decisions of a customer(von Freymann and Cuffe, 2020). It has its steps involved with
awareness about the product to loyalty of customers and their retention. These are explained
within the context of Coffee Republic in the following steps:
1. Awareness: this step involves with knowing that from where did the customer get to
know about the want or need about Coffee Republic.
2. Interest: in this step, the customer looks for availability of coffee and start researching
about Coffee Republic.
3. Consideration: after knowing each and every thing about Coffee Republic, the customer
looks for all benefits and demerits of coffee. This step also involves making choice, with
considering certain factors like prices, quality of coffee and many more.
4. Purchasing: with everything considered, its now the time for customer to purchase coffee
from Coffee Republic. They have to go to selling stores of Coffee Republic and just have
to make a purchase.
5. Loyalty: there are some customers that just make certain or single purchases. But this
step involves with retaining customers for longer time period, building them permanent
and loyal customers for organisation.
Evaluation of marketing efforts
Coffee Republic is one of organisation that has made various marketing efforts in order to attain
its goals of increasing sales and profitability. There are various marketing strategies to be
adopted by firm for purpose of market expansion and diversification like BCG matrix and
Ansoff model. All these strategies provide guidance to managers of Coffee republic to increase

awareness of their products and also to invest in products that provide them maximum benefits.
Some of result of marketing efforts of company is mentioned below:
Increase sales of company: Marketing efforts made by Republic Coffee allow firm to
understand needs and requirement of target market. It is important for firm in order to understand
and provide products to customer that suits to their requirement. It will increase demand of
products among customers and also helps firm to increase sales. It is important for firm as they
can expand marketing share of company and can increase their reach of products.
Competitive advantage: Marketing efforts made by Republic Coffee helps firm to increase
demand of products among customers. It will allow firm to gain competitive advantage which is
essential for them. It will help firm to understand problem faced by customers and provide them
solution before competitors. It is also important for to adopt innovation in organisation that helps
to overcome of competition.
Enter into market segment: Marketing efforts and strategies helps firm to understand which
segment is most profitable for firm and which are not. On basis of it, firm can stop production of
factory that results in loss for them and allow them to invest in products that create new
opportunities for them. For this, firm can introduce new products in old segment or can introduce
existing product in market. It will also allow firm to increase reach of its products to its target
segment.
Innovation: Marketing efforts allow firm to understand various trends of market, problem faced
by customers and description of products that create demand. On basis of it, firm can introduce
new products that will solve problem faced by customer or can make improvement in existing
products. This innovation allow firm to increase demand of products in market and also helps
firm to differentiate its products. It will also allow opportunity to firm in order to increase its
market share.

CONCLUSION
From the above stated report it can be concluded that marketing is the most important activity for
any business organisation to grow and develop in market. This report also includes various
marketing strategies, policies, practices, theories and all other relevant information about Coffee
Republic and all for its grow and development in market. Main four Ps that are adopted by
Coffee Republic for its growth in market share are also discussed within this report. Firm can
also adopt various marketing strategies which will helps them to solve problem faced by
business and allow them to develop new solutions.