Marketing Mix for Marvin and Smith’s Coffee Shop Expansion in Finland

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MARKETING BUSINESS ESSENTIALS ADVANCED
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Table of contents
Introduction................................................................................................................. 3
Task 1: Identification of expansion nation and justification for the same.....................4
Task 2: Marketing mix against coffee shop expansion................................................7
Conclusion.................................................................................................................. 9
References................................................................................................................10
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Introduction
The aim of this report lies in the analysis of the international market that would be
ventured by Marvin and Smith’s coffee shop. The target market would be Finland
that was incorporated in the EU way back in 1995. The scope of the study however
lies in the development of the marketing mix that would be associated with the
organization.
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Task 1: Identification of expansion nation and justification for the same
Finland is home to the growing consumption of coffee among the consuming nations
(Regmi, 2018). It is essentially predicted that an average individual consumes about
10 cups of coffee per working day. Additionally, Finland is essentially has a low
presence of international coffee chains such as star bucks.
Figure 1: Coffee consumption in EU
(Source: Armstrong, 2016)
From the above figure, it is evident that Finland is the largest consumer of coffee in
Europe. Hence, the organization would be benefitted post expansion in the nation.
The major benefit would be the expansion in the sales front.
Additionally, the fair trade practices of the coffee organization would essentially be
aligned with the fair trade practices incorporated in the EU. This would enable the
organization to receive mileage in terms of trade practices from the Finnish
government (Bravo-Monroy et al. 2016). In the end, operations in one of the largest
coffee consumer nations would enable the organization to compliment the foreign
interests that it has been developing. In terms of location, Finland has extensive
ports that are directly connected with Ugandan coffee producing and packaging
nations. Similarly, in the segment of the transport, the nation is well connected by
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roads, rails and aircrafts. Hence, regular supply of raw materials would be available
in tenure of peak demands.
Similarly, in the domain of logistics, Finland would be an ideal place to expand due to
two reasons:
 In the domain of customers, the nation essentially has a large number of
customer bases that is growing every year (Kuang et al. 2018). In the end,
this would result in the drastic increase in the sales and market share of the
coffee provider. Additionally, the created customer base essentially is catered
mostly by local shops and very few international players like Starbucks.
Hence, in short term, Marvin and Smith’s coffee shop would be able to use
the infrastructures associated with the local organizations.
 In the domain of supplier and deliveries, the organization would be able to tap
into the accessories provider that exists in the nations. This would include
containers and cups for servicing the produce. However, since coffee is such
in demand in the nation, local flavours could be essentially mixed with the
Ugandan flavour to develop hybrid flavours unique to the Finnish market.
Figure 2: Transport in Finland
(Source : stat.fi, 2018)
From the above figure, it is evident that Finnish freight transport correspond similar
quantum of products other than minerals. This arrangement would enable the
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organization to transport the required materials without any hassles. Additionally,
since the coffee service organization has been operating in the UK for more than a
year, the owners would know regulations regarding import and export within the EU.
In the end, this would result in dual benefits of reduction in cost and incorporation of
enhanced operational efficiency of the organization in foreign soil.
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Task 2: Marketing mix against coffee shop expansion
Marketing Mix is the way through a business makes a choice of putting forth a new
product into the market that has the potential to draw in new consumers (Huang and
Sarigöllü, 2014). There are four aspects to marketing mix, which include product,
price, place and promotion, all of these elements will be explored in the case of
Marvin and Smith.
Figure 1: Marketing Mix Marvin and Smith’s coffee shop
(Source: Huang and Sarigöllü, 2014)
Product - Marvin and Smith’s coffee shop provides high-grade cups of coffee for
people who enjoy the product. The firm plans to provide various types of coffee such
as Uganda special, Caramel Cinnamon Latte, Caramel Macchiato and White Mocha.
Additionally these products will be infused with coffee beans that are imported from
soil rich locations such as Uganda.
Price – since Marvin and Smith’s coffee shop is new in Finland market, the firm will
implement a low pricing strategy so that it can undercut other competitors in the
market (Londhe, 2014). Some of the ascertained prices for the Marvin and Smith’s
coffee shop have been enlisted here down below:
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Figure 2: Price of various coffee products
(Source: Strauss et al., 2014)
Through all prices, the firm will be able to draw in several groups of target audience
from Finland.
Place - Within Finland a chunk of the population lies between the age of 25 to 55
years who are working individuals that are both male and female and it is towards
them the firm’s coffee is targeted. It has been determined Marvin and Smith’s coffee
shop will expand and open its new branch in Helsinki Church, since the area has a
high degree tourists and local people that are drawn to the location. This location will
enable the company to elevate the business’s sale and help in bringing revenue to
Marvin and Smith’s coffee shop (Khan, 2014).
Promotions – Several marketing methods that can be used by Marvin and Smith’s
coffee shop. This will be done in order to grow the popularity of the firm within
Finland. These marketing methods include social media marketing, face-to-face
sales techniques, television advertisement and others (Strauss et al., 2014). Through
methods such as this, the marketing team of the organisation will be creating
campaigns that would help in growing the awareness of the company.
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Conclusion
In the above report, several aspects have been fulfilled in the case of Marvin and
Smith’s coffee shop. The firm is performing expansion in the international market and
for this purpose. Finland has been selected for this reason as it is a highly
prosperous country and the scope business growth is huge. In the first section of this
report, the justification for choosing the country has been elaborated and in the
second section, the marketing mix for the coffee shop through product, price and
place and promotion has been explored.
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References
Armstrong M, 2016, Europe's Top Ten Coffee-Drinking Nations. Available at:
https://www.statista.com/chart/6088/europes-top-ten-coffee-drinking-nations/
[Accessed on 10th March, 2019]
Bravo-Monroy, L., Potts, S.G. and Tzanopoulos, J., 2016. Drivers influencing farmer
decisions for adopting organic or conventional coffee management practices. Food
policy, 58, pp.49-61.
Huang, R. and Sarigöllü, E., 2014. How brand awareness relates to market outcome,
brand equity, and the marketing mix. In Fashion Branding and Consumer Behaviors
(pp. 113-132). Springer, New York, NY.
Khan, M.T., 2014. The concept of'marketing mix'and its elements (a conceptual
review paper). International journal of information, business and management, 6(2),
p.95.
Kuang, A., Erlund, I., Herder, C., Westerhuis, J., Tuomilehto, J. and Cornelis, M.,
2018. Lipidomic response to coffee consumption. Nutrients, 10(12), p.1851.
Londhe, B.R., 2014. Marketing mix for next generation marketing. Procedia
Economics and Finance, 11, pp.335-340.
Regmi, B., 2018. A STUDY ON FINLAND AS A TARGET MARKET FOR
VIETNAMESE COFFEE: The Finnish Coffee Market.
stat.fi, 2018. Volume of goods transported by lorries decreased in the third quarter of
2018. Available at: http://www.stat.fi/til/kttav/2018/03/kttav_2018_03_2018-12-
19_tie_001_en.html [Accessed on 10th March, 2019]
Strauss, J., Frost, R. and Sinha, N., 2014. E-marketing. Upper Saddle River, NJ:
Pearson.
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