BSBMKG608: A&A Coffee's Organizational Marketing Objectives Report

This report provides a comprehensive analysis of A&A Coffee's organizational marketing objectives, strategic direction, and market challenges. It begins by confirming the company's mission, vision, purpose, and values, followed by identifying directions and targets based on market analysis and competitor performance. A detailed situational analysis, including a SWOT analysis, is conducted to assess the company's strengths, weaknesses, opportunities, and threats. The report also addresses legal and ethical requirements, confirms strategic direction, and scopes marketing opportunities by analyzing current products and services. Furthermore, it outlines long-range and short-range strategic objectives, consultation processes, and a risk management strategy. The document concludes by documenting the marketing objectives, providing a thorough overview of A&A Coffee's strategic marketing approach. Desklib provides students access to similar solved assignments and past papers.

Running Head: Develop organizational Marketing objectives
Develop organizational Marketing Objectives

Develop Organizational marketing objectives P a g e | 1
Table of Content
1.1 – Confirm organisation's mission, vision, purpose and values from current
organisational materials or from owners, directors or senior management.........................2
1.2 Identify directions and targets....................................................................................2
1.3 Complete a situational analysis.................................................................................3
1.4 Identify legal and ethical requirements of the organisation........................................5
1.5 Confirm strategic direction.........................................................................................6
Task 3: Scope marketing opportunities.............................................................................11
3.1 Analyse current products/services using SWOT......................................................11
3.2 Identify viability and contribution to the business................................................13
3.3 Organisational fit.................................................................................................13
4.1 Write long range strategic objectives.......................................................................13
4.2 Write short range objectives....................................................................................14
4.3 Undertake consultation............................................................................................14
4.4 Develop a risk management strategy......................................................................15
4.5 Document marketing objectives..............................................................................15
References........................................................................................................................... 17

Develop Organizational marketing objectives P a g e | 2
1.1 – Confirm organisation's mission, vision, purpose and values from current
organisational materials or from owners, directors or senior management
Mission
The mission statement of A& A coffee was “to be the leading manufacturer and
retailer of quality coffee in Australia” which has now changed to “to inspire human
spirit by one coffee a day by becoming leading manufacturer and retailer of quality
coffee in Australia”.
Vision
The organisation’s vision is to explore the market in equipment as well as in raw
coffee and pods. The vision is to retain market share in the distribution of its A& A
hardware and to retain market share in the sales of it consumables. The company
wants to develop 10% market share of the café retail business.
Purpose
The purpose of the company is very clean and extensive. The company specialises
in selling superior Roubust A & Arabica coffee beans (Bunn, Läderach, Rivera & Kirschke,
2015). They also sell espresso machines and accessories. The company has now
included brewed coffee in its product range and now rebrands the running café’s and
not the coffee products.
Values
A & A believes in having a dedicated work force and therefore the staffs strive to
improve continuously. They respect and support each other. They also have an
ownership in their work (Strom, Sears & Kelly, 2014). They also look forward to
satisfy their customers and hence follow few more core values like,
 Finding new ways to grow our company and doing it with the help of work
force.
 Delivering our very best in all we do.
 Creating a culture of warmth and belonging across the organisation.
1.2 Identify directions and targets
A & A has developed a loyal client base and has long-serving staff members. The
company has never sought to sell franchises and hence the store managers report
directly to Head Office (Aghdaie & Alimardani, 2015). On the basis of the market facts
and competitors in the market the company made an analysis of its current
marketing statistics. It was observed that in the mid of 2014, the company’s
performance began to decline. It was also seen that in September, the revenue
growth was negative for the first time in the company’s history. The reasons
concluded were changing customer tastes, the rising costs and an increasingly
competitive retail coffee market. From the competitor market performance report it
was seen that in 2013, A & A ‘s market share were 25.3% while in 2014 it was 20.6%

Develop Organizational marketing objectives P a g e | 3
but in 2015 it was only 15.9% and hence it is seen that the market share is declining
year by year.
From the evaluation of A & A and the industry growth it was seen that in 2010, A &
A’s year market growth was at 20.29% but in 2015 it declined to 15.90%. By the
current market trend, it was also seen that the most demanded product is in-store
and take aways and capsules. And the in store and take away products consumed of
A & A was just 40.3% while the consumption of capsules was 16.4%. It was also
observed that the two competitors of A & A are Roasted Amigos and Mocha Del Mar
which seem to have the highest jump over the last two years due to their successful
R & D strategies.
The company has decided to increase the sales of the company and is trying to
improve its reputation in the market. Various measures the company will be taking
include different aspect i.e. in terms of product range and competitors. The
management will be launching a counterattack to its main competitor by including in
its product range brewed coffee using a variety of its in store raw coffee beans. This
will not only help in retaining the current customer base but will also help in regaining
the brand image (Amos, 2016). The company will be expanding its retail initiative
across Australia over the next year. Along with this, the company will be totally
rebranding the products by focussing more on the running café’s and not on the
coffee products. They have also decided to revise the consumable product range
and are removing the products which do not have any potential. And the
management advised to get out of the equipment i.e. espresso machines altogether.
1.3 Complete a situational analysis
A & A Coffee is a chain of retail specialist coffee shops, which is owned by A & A
Group. A & A now operates 22 stores along the five states of Australia. The
company specialises in selling superior Robust A & Arabica coffee beans and has its
own coffee roaster facilities. A & A also sells espresso machines and accessories
and manufactures both machines and capsules.
Strengths:
1. The main strength of A & A Coffee is its work force which continuously strives
to perform well. They help and support each other and every time shows the
feeling of ownership (Clarke, Friese & Washburn, 2015).
2. As the company excel in equipment’s as well in raw coffee and pods therefore
it can easily afford to price its products in the premium as well as middle tier
range so that any type of customer can afford it (Nagle, Hogan & Zale, 2016).
3. The company has strong financial performance in all sectors of coffee; the
company is valued at more than $5 billion.
4. The company is known in the market because of its brand, and for providing
quality at an affordable rate.

Develop Organizational marketing objectives P a g e | 4
5. The employees of A & A Coffee are provided with many perks. The company
is also known for different types of products with a wide product line
(Armstorng, Kotler, Harker & Brennan, 2015). For now, the company’s product
line includes: capsules, instant& flavoured coffee jars, single-serve coffee
sachet, ground coffee beans and bags along with bottled coffee drinks.
Weaknesses:
1. Recently, the company was accused practising unethical marketing practices
where it ran an advertising promotion and was offering an incentive to buy
bulk and was unable to supply the products (Crane & Matten, 2016).
2. A big market of the company is dependent on the coffee producers like El
Salvador, Colombia, Kenya and Indonesia and hence any problem from the
producer’s side creates a problem for the company also.
3. The companies equipment market i.e. the espresso machines business is
declining day by day and hence is a drawback for the company.
4. The company has limited stock levels of certain products leading to a lack of
variety in the outlets.
5. There was also incorrect pricing on a leaflet drop in key locations which
confused customers about the prices.
Opportunities
1. The company has an opportunity to expand its producer’s network and
expand the range of producers from whom it sources products. This will help
the company in becoming less sensitive to the prices of the products of the
few suppliers.
2. The company can leverage the use of the new technologies to attract more
number of customers. As people are getting technology oriented (Westerman,
Bonnet & McAfee, 2014).
3. Apart from limiting the business in Australia, the company can expand its
business into new emerging markets to catch more people and increase the
profitability.
4. With the information received on SIMRA reports, the company knew the
problems and hence can now focus on customer’s tastes and preferences.
5. The company can understand the trends and developments in the macro
environment and can easily make changes in the products on basis of these
trends.
Threats
1. As the company used unethical marketing practices where it ran an
advertising promotion which was against the code of conduct of the company
and hence the brand image is in problem (Trevino & Nelson, 2016).
2. The company also faces threats from the rising prices of the machines from
the producers of the company and is a risk which is related to fluctuations in
the prices.
3. The company faces intense competition from other coffee retailers and hence
to discriminate its products and must develop new product range (Chintagunta,
Qin & Vitorino, 2017).

Develop Organizational marketing objectives P a g e | 5
4. The company has to expand into emerging markets as a necessity as the
developed markets are growing day by day and it is getting for the company
to survive in the market.
5. The incorrect pricing on a leaflet drop in key locations created a problem for
the company as it has to revise its prices again and have to seek customer
satisfaction.
1.4 Identify legal and ethical requirements of the organisation
The core ethical principles of A & A coffee is outlined by the Australian Responsible
Children’s Marketing Initiative(RCMI) which is basically regulated by Australian Food
& Grocery Council(AFRG)which makes sure that the quality of the products is good
i.e. healthier products are being promoted to children.
The aim of RCMI is to reduce the advertising and marketing to children for food and
drinks which are not healthy. This also includes advertising and marketing to children
to promote healthy eating. A & A Company can only advertise healthier choices to
children which encourage healthy lifestyle, and is not allowed to advertise and
market to children in Australian schools until and unless they are asked by the
school.
As a member of the Australian Market and Social Research Society (AMSRS), A & A
is bound by the Code of Professional Behaviour, which covers both the ethical and
requirements and standard conditions of conducting and reporting market and social
research (Moody’s, 2015). According to this code, the market and social research
cannot directly sell and promote the goods and services. This code is outlined for
three basic areas which are,
 Researchers and clients mutual rights and responsibilities
 Responsibilities to respondents
 Researchers professional responsibilities
A&A follows the code which provides practical guides to achieving the standards of
health, safety and welfare required under the Work Health and Safety (WHS) ACT
and WHS regulations. This comes under Model Codes of Practice which is a
practical guide to achieve the standards of health and safety required under the
model WHS Act and Regulations.
COMPLIANCE WITH LEGISLATION AND STANDARDS
To ensure lawful marketing practices, A & A aligns its core marketing operations and
activities with the legislative instruments contained in the following acts and
regulations:
Age Discrimination Act 2004- Discrimination on the basis of age – protects both
younger and older Australians (Cascio, 2018) .
Also includes discrimination on the basis of age-specific characteristics or
characteristics that are generally imputed to a person of a particular age.

Develop Organizational marketing objectives P a g e | 6
Australian Human Rights Commission Act 1986- (Australian Human rights
commission, 2016)
Discrimination on the basis of race, colour, sex, religion, political opinion, national
extraction, social origin, age, medical record, criminal record, marital or relationship
status, impairment, mental, intellectual or psychiatric disability, physical disability,
nationality, sexual orientation, and trade union activity.
Fair Work Act 2009-
Discrimination on the basis of race, colour, sex, sexual orientation, age, physical or
mental disability, marital status, family or carer responsibilities, pregnancy, religion,
political opinion, national extraction, and social origin (Regan & Lee, 2015).
1.5 Confirm strategic direction
A & A Coffee is a chain of retail specialist coffee shops which is owned by A & A
Group. A&A opened its first store in Hornsby, NSW, in 1992 and I now operating
over 22 stores along the five states of Australia. The mission statement of the
company is to inspire human spirit by one coffee a day and by becoming leading
manufacturer and retailer of quality coffee in Australia. The company carries a vision
to retain market share in the distribution of its hardware’s and in the sales of its
consumables.
It was observed that in the mid of 2014, the company’s performance began to
decline. It was also seen that in September, the revenue growth was negative for the
first time in the company’s history. The reasons concluded were changing customer
tastes, the rising costs and an increasingly competitive retail coffee market. The
management will be launching a counterattack to its main competitor by including in
its product range brewed coffee using a variety of its in store raw coffee beans. This
will not only help in retaining the current customer base but will also help in regaining
the brand image. The company will be expanding its retail initiative across Australia
over the next year. Along with this, the company will be totally rebranding the
products by focussing more on the running café’s and not on the coffee products.
They have also decided to revise the consumable product range and are removing
the products which do not have any potential. And the management advised to get
out of the equipment i.e. espresso machines altogether.
The company’s strength is its workforce because it continuously strives to perform
well. While the company’s weakness is that the equipment market business which is
declining day by day. And the company was accused practising unethical marketing
practices where it ran an advertising promotion and was offering an incentive to buy
bulk and was unable to supply the products. The company has an opportunity to
expand its producer’s network and expand the range of producers from whom it
sources products. This will help the company in becoming less sensitive to the prices
of the products of the few suppliers (Tseng, 2014). The company faces intense
competition from other coffee retailers and hence to discriminate its products and
must develop new product range.

Develop Organizational marketing objectives P a g e | 7
The core ethical principles of A & A coffee is outlined by the Australian Responsible
Children’s Marketing Initiative (RCMI) which is basically regulated by Australian Food
& Grocery Council(AFRG). As a member of the Australian Market and Social
Research Society (AMSRS), A & A is bound by the Code of Professional Behaviour.
A&A follows the code which provides practical guides to achieving the standards of
health, safety and welfare required under the Work Health and Safety (WHS) ACT
and WHS regulations. A & A aligns its core marketing operations and activities with
the legislative instruments contained in the following acts and regulations: Age
Discrimination Act 2004, Australian Human Rights Commission Act 1986 and Fair
Work Act 2009.
Task 2: Review marketing objectives
It was observed that in mid-2014, the performance of the company began to decline
as observed from the given graph. It was also observed that in September, the year-
on-year revenue growth was negative for the very first time. The reasons for the
decline were changing customer tastes, rising costs and an increasingly competitive
retail coffee market.
2010-11 2011-12 2012-13 2013-14 2014-15
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
0
4
8
12
16
20
24
28
Graph 1
A A - Full Year Results
Net Income ($m)
Profi
t
(LH
S)
Source: A & A Finance Department
A brief analysis of the market performance of competitors and A & A was made and
showed considerable downward trend of the company.

Develop Organizational marketing objectives P a g e | 8
Roasted Amigos;
24.2%
Mocha Del Mar;
17.4%
Arabicana
Colombia; 11.9%
Caliente
Canephora; 8.1%
Magic Robusta;
7.2%
Coffee Razzi; 6.1%
Rooffee; 4.9%
Other
4.3%
A & A Coffee;
15.9%
Graph 2
2015 Market Share by Competitors (Nationwide)
17.8%
14.6%
10.2%
11.2%
8.4%
7.2%
5.2%
20.6%
4.8%
Graph 3
2014 Market Share by Competitors (Nationwide)
Roasted Amigos Mocha Del Mar Arabicana Colombia Caliente Canephora Magic Robusta
Coffee Razzi Rooffee A & A Coffee Other

Develop Organizational marketing objectives P a g e | 9
13.4%
11.1%
11.4%
13.5%
6.2%
9.1%
7.8%
25.3%
2.2%
Graph 4
2013 Market Share by Competitors (Nationwide)
Roasted Amigos Mocha Del Mar Arabicana Colombia Caliente Canephora Magic Robusta
Coffee Razzi Rooffee A & A Coffee Other
A brief analysis showed that A& A has many marketing opportunities as described,
2010 2011 2012 2013 2014 2015
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
$14,000,000.00
$16,000,000.00
$18,000,000.00
$20,000,000.00
Graph 5
Product Performance between 2010-2015
Arabica Coffee Robusta Coffee Juice - fresh Iced coffee

Develop Organizational marketing objectives P a g e | 10
This graph shows the performance of major products between 2010 and 2015.
Hence, A & A should consider introducing new, more profitable, health-conscious,
sustainable and convenient products to meet the needs of the market.
2010 2011 2012 2013 2014 2015
$0.00
$2,000,000.00
$4,000,000.00
$6,000,000.00
$8,000,000.00
$10,000,000.00
$12,000,000.00
Graph 6
Top-Bottom Store Performance between 2010-2015
Brisbane Melville Adelaide Carlton Penrith Essendon
Depending on the market trends and developments, A & A should consider following
marketing strategies:
 As Australians have been shifting to a healthy-living lifestyle, hence A& A
Coffee can introduce new products to meet the needs of the market (Gilson,
2014).
 As new products are getting launched by competitors, A& A can launch more
products at lower costs.
 As observed from the graph and the table, prices for hot beverages are falling
in the capital cities and hence the company can expand to the West Coast.
 The company can retire less popular products and introduce new, profitable
products.
 The company can penetrate these new products into giant supermarkets for
example, Coles, Woolworths, ALDI, etc.
Table 1: Store Performance in Tabular Format

Develop Organizational marketing objectives P a g e | 11
2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5
90
95
100
105
110
115
Graph 7
Cons ume r Pri ce Inde x
Te a, Coff e e & Cocoa
Sydney Brisbane Melbourne Adelaide
Perth Hobart Darwin Canberra
Consumer Price Index
Source: ABS
Task 3: Scope marketing opportunities
3.1 Analyse current products/services using SWOT
The two major products of A & A Coffee Company which are in trend according to
the Statistical International Marketing Research Agency are in store or take away
and Capsules.
In-store or Take Away-
In this, the coffee is sold by brick and mortar coffee shops where consumers may
choose to enjoy their coffee in the shop or as take-away.
SWOT analysis of in-store or take away:
Strengths