Digital Marketing Report: DWC, STP Model and Marketing Methods

This report provides a comprehensive analysis of Dark Woods Coffee's (DWC) digital marketing strategies. It begins with an introduction to digital marketing, followed by an examination of DWC's macro environment using PESTEL analysis, evaluating political, economic, social, technological, environmental, and legal factors in the UK. The microenvironment is assessed using a SWOT analysis, identifying DWC's strengths, weaknesses, opportunities, and threats. The report then applies the STP model (Segmentation, Targeting, Positioning) to DWC, detailing its market segmentation based on geographic, demographic, behavioral, and psychographic factors. The targeting strategy focuses on key customer groups, and the positioning discusses how DWC uses social media to build its brand image. Finally, the report examines the digital marketing methods employed by DWC, including social media and email marketing, highlighting their effectiveness in reaching and engaging customers. The report concludes with a summary of the findings and recommendations.

Digital Marketing

Table of Contents
Introduction......................................................................................................................................3
Main Body.......................................................................................................................................3
Marco environment......................................................................................................................3
Micro analysis..............................................................................................................................5
STP Model...................................................................................................................................6
Methods of digital marketing used by company..........................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Introduction
Digital marketing is the type of marketing where the products and services are promoted
by using online mode through internet and digital technology like computers, mobile phones and
many others (Ghai and Rahman, 2018). When the promotion is done on Instagram and FaceBook
and other digital platform like emails and websites, then it is called that digital marketing is used
for product promotion. Dark Woods Coffee (DWC) is a local chain of coffeehouse in UK which
is founded in 2002 by its founder Damian Blackburn. Its headquartered is located in Lynden,
Washington, UK. The main serving products of this company are Whole Bean Coffee,
Beverages, Baked Goods and Smoothes. The macro and micro environments of the DWC and
STP models in the same company are covered in this paper. This report also discusses how DWC
uses digital marketing to improve communication with their customers.
Main Body
Marco environment
Macro environment is done to analyse outer factors which occur outside the business. PESTEL
analyse is conducted below for analysing macro environment of DWC-
Political factor- This factor states that how much intervention a government has in its
economy (Krishnaprabha and Tarunika, 2020). This factor includes government policies, tax
policy, trade restrictions, government stability and many others. In the case of the United
Kingdom, political stability exists, and political parties have not interfered in the corporate
sphere for personal gain. They have a good trade policy in place, with no limits or fees for UK
businesses to trade their goods. They, on the other hand, have a high corporation tax rate of 19
percent. The political aspect of the United Kingdom is appropriate to work in the context of the
DWC.
Economical factor- This factor includes economical condition of an economy like
growth rate, interest rates, inflation rate, exchange rates and many others. In context of UK, they
are known for their good economical condition in the world. They have an extremely low interest
rate of less than 0.1 percent. As a result, DWC finds it simple to obtain low-interest bank loans.
As a result, the economic situation in the United Kingdom is favourable for DWC to conduct
business there.

Social factor- This factor includes attitude and shared beliefs of population of a
particular area (Soedarsono and et. al., 2020). In context of UK, their population is believed to
have high standards, there are each and every family wish to develop their living standards every
day. As a result, people are willing to spend any price for high-quality goods. This is
advantageous for DWC to do business by selling high-quality food and drink goods, particularly
coffee, at slightly higher costs, because the people are less concerned with low prices than with
great quality. On the other side, many strikes have taken place in the United Kingdom as a result
of discrimination based on skin colour and religion. All of these strikes have a negative influence
on DWC's business by lowering sales.
Technological factor- This element considers how a country employs its technological
resources to create new goods and services (Dobrescu and et. al., 2018). The United Kingdom is
one of the world's most technologically advanced countries. As a result, the DWC has benefited
from this element by adopting the most advanced and up-to-date technologies for manufacturing,
distributing, and communicating with targeted clients. As a result, the technology component in
the United Kingdom is beneficial to DWC in allowing them to execute their commercial
activities in a more smooth and easy manner, saving them time.
Environmental factor- Climate, whether, raw material availability, pollution
management, tourism arrival rate, and so on are all factors to consider. In the case of the United
Kingdom, they have a favourable climate and weather, which attracts the majority of tourists to
their country. As a result of the increased rate of tourist arrivals, DWC has the opportunity to
earn more because more tourists mean more tourists will visit their stores and purchase their
products, increasing their productivity and profitability. Apart from that, one environmental
factor in the United Kingdom is hazardous, and that is air pollution. They have hazardous air
pollution, which results in over 8.1 percent of deaths each year due to lung disease and breathing
difficulties.
Legal factor- This component takes into account all of a country’s legal norms,
regulations, and laws (Takahashi, 2019). There are certain rigorous legal regulations in the
United Kingdom, such as their employment legislation, which specifies that workers must be
paid a minimum salary and that a reasonable time should be set for them to work in their area.
Second, its safety regulation mandates that companies take all reasonable precautions to protect
their employees’ health at work, such as providing them with boots, gloves, and a helmet on

construction or manufacturing sites. All of these laws are in place to ensure proper office
discipline, and any company that violates them will be sanctioned by the government of the
country. As a result, the legislation favours DWC’s ability to run their company activities in a
disciplined manner.
Micro analysis
SWOT model is used to conduct micro analysis of a company to identify their strength
and weakness areas of operations (Rangaswamy and et. al., 2020). It also helps to identify
opportunity to collect and threat to be safe. SWOT analysis is helpful in knowing those factors
which impacts directly upon business functioning and upon the brand image of company. SWOT
analysis of DWC is explained below-
Strength-
 A service sector company's attractive
decor is one of the most critical factors
in attracting customers (Konk,
Krasnov and Sumarokova, 2021).
DWC has a really appealing and
stunning interior design, which allows
them to attract more clients. The
majority of their clients come to their
businesses to relax and enjoy their
gorgeous surroundings while sipping
their coffee.
 They are mostly concerned about
quality. Their coffee and other eatable
items are manufactured in a clean
environment with an emphasis on
product taste. As a result, their
excellent coffee taste contributes to
their success.
Weakness-
 DWC is unable to develop an effective
strategy for expanding their business
into new regions. They've been
working for almost 18 years and still
have 17-19 outlets across the UK. As
a result, their growth methods are a
weakness in achieving a higher place
in their business.
 They sell a limited number of things,
such as coffee, beverages, baked
goods, and a few other items. They
only sell snack items and beverages.
As a result, clients are more drawn to
restaurants that offer a wide range of
products.
Opportunity- Threat-

 Expanding business in other countries
specially those countries where the
business of coffee is less. This helps
the company to grow faster and get
more customers. They can use the
franchising model to persuade other
small businesses to join their franchise
and develop their business.
 Adding more varieties of food item in
their menu will help them to gain
more customers and to grow faster.
 Biggest threat of any company is their
competitors and their strategies
(Erdmann and Ponzoa, 2021).
Competitors such as Pumphrey's
Coffee and others have posed a danger
to DWC by implementing some
significant techniques to compete in
this business.
 Healthy drinks priority is increasing
day by day specially in this Covid 19
pandemic. As a result, customers'
preference for healthy drinks over
coffee may have a detrimental
influence on DWC's business by
lowering productivity.
STP Model
This model is helpful to in creating marketing communications plans and to identify
targeted customers by segmenting the groups within the market and after targeting customers this
model helps to identify the tools or activities which is require to make a good brand image of
company in customer’s eye.
Segmentation- This is the practise of breaking down a large market into smaller groups
of clients in order to determine which ones will benefit the company the most (Appel and et. al.,
2020). Segmentation of marketing is depending upon different factors and these factors on the
basis of DWC are explained below-
Segmentation basis Category of segmented group
Geographic segmentation DWC’s current concentration has been solely
on doing business in the United Kingdom.
Bellingham, Lynden, Mount Vernon,

Edmonds, Ferndale, and Burlington are the
locations.
Demographic segmentation Age- 14- 24, 24- 44 and 44 and above
DWC’s goods are available in both male and
female versions.
Professionals, housewives, students, and
others.
Behavioural segmentation- Attitude- They divided the market into those
who prefer coffee over other beverages.
They divided the market into loyal and non-
loyal customers based on loyalty.
Psychographic segmentation They divided people into two groups based on
their lifestyle: those with a median quality of
living and those with a high standard of
living.
Hobbies- those who enjoy drinking coffee
more than any other beverage.
Digital marketing mediums are used to segment the market of DWC. They research
clients who prefer coffee by using the internet and their competitors’ business knowledge to read
and comprehend the wants and expectations of customers in various areas. They segmented their
market by asking different types of customers to fill out a form that was sent to their e-mail
addresses. This is a section of their marketing questionnaire. This is a type of feedback form in
which customers’ choices are written down and customers must just select their preferred option
and provide personal information such as age and location. They can learn about diverse
customer behaviours and perceptions by filling out this questionnaire.
Targeting- This is the process of picking one or more client groups from a large number
of options created throughout the segmentation process (Abu-Dalbouh, 2020). In this case, the
firm only chooses the group that is most useful to their business. In the case of DWC, they
primarily targeted clients in the Bellingham and Lynden areas because these are where the
majority of their stores are located. They serve coffees for clients of all ages, however the

majority of the consumers who come to their restaurants are between the ages of 24 and 44.
Hence, their main focus is to target this section to promote their product. They also targeted
every professional group of both gender males and females. They mainly target loyal customers
who prefer coffee more than other drinks in market.
They employ computers to target customers by saving the data acquired from their
survey and determining which group of customers is more concerned about purchasing coffee,
and they choose that group as their targeted customers. They assess their performance by
preparing a proper report that includes pie charts and data analysis.
Positioning- This is the process of establishing a positive image of a company or brand
in the minds of customers (Petit, Velasco and Spence, 2019). Part of positioning is informing
clients about the goods being offered. DWC uses social media as a tool to market their company.
They promote their items on social media by posting photographs and videos about the
characteristics and benefits of their products. They also have a logo that was created digitally and
describes their brand identity, which is distinct from others. As a result, DWC uses the digital
medium to promote their company.
Methods of digital marketing used by company
Social media- DWC has accounts on Instagram, Facebook, Snapchat, and a variety of
other social media platforms, where they promote their products by sharing photographs and
other pertinent information about their company and products. This medium is more effective
because today’s youth use social media to gather information and are easily drawn by social
media marketing (Kurniawan and Asharudin, 2018). As a result, they are leveraging social media
to grow their business.
E-mails- It is a formal style of connecting with others that is exclusively used for
official purposes (Pinarbasi, 2019). DWC sends their feedback forms to their clients via email for
them to complete. When a payment is made online, they also send the payment receipt to the
customer by e-mail. Second, they use e-mails to communicate information such as special offers
on coffee and other edible products. As a result, e-mails are the digital marketing platform that
DWC uses to perform their marketing efforts.

Conclusion
From the above information it is concluded that digital marketing is one of the best way conduct
marketing activities which further save time and increase efficiency in activities conducted by
business through digitally. There are many digital marketing platforms which can be used by any
company to promote their products like Social Media, E-mails, Online payments, Using personal
designed apps and many more. Today most of the activities are done through the use of digital
devices such as analysing targeted market, promoting product, clearing customer’s doubt and
many other activities are done through digitally for functioning with recent trends and for
business expansion.

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