Strategic Marketing Analysis: Hopkinson's Coffee and Nespresso

This report presents a comprehensive strategic marketing analysis, focusing on Hopkinson's Coffee and Nespresso. It begins with an executive summary and includes a detailed SWOT and PESTLE analysis of Hopkinson's Coffee, examining its strengths, weaknesses, opportunities, and threats, as well as political, economic, sociological, technological, environmental, and legal factors. The report then provides specific recommendations for Hopkinson's Coffee, emphasizing the importance of quality, ergonomics, and consistency. Additionally, the report touches upon Nespresso's market position and growth. The analysis aims to provide insights into the coffee industry, offering actionable strategies for market positioning and business success.

Running head: STRATEGIC MARKETING PLANNING
STRATEGIC MARKETING PLANNING
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Executive summary
Analyzing the market or the business is very important to take a company in the right
path of success. It helps in understanding the goals as well as the threats of the company. This
study will be shedding light on the business analysis, recommendations and the theory of
marketing mix in connection to the Hopkinson’s coffee shop and the Nespresso coffee.

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Table of Content
Question 1............................................................................................................................1
Question 2..........................................................................................................................11
References..........................................................................................................................12
Appendix............................................................................................................................12

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Question 1
Analysis /Evaluation
The analysis of the company will be conducted through the swot and the pestle analysis
of the Hopkinson’s coffee company.
SWOT Analysis
The model of swot analysis tends to examine the strengths, weaknesses, opportunities and
threats of the Hopkinson’s coffee company in connection to the business as well as the internal
and external environment (Sammut‐Bonnici and Galea 2015).
Strengths
This part of the swot analysis tends to deal with the internal points that the company can
utilise as strengths to point weaknesses and even provide protection to the business against the
competition. In this scenario, the strengths of the company are as follows
 A strong image of the brand
 Wide-ranging supply chain
 Expansion through branches
Hopkinson’s company is one of the most popular brands. The company tends to have
customers who are loyal and which helps in maintaining the stability of the business. In the
model of analysis, the wide-ranging global change helps in strengthening then company through

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the supporting operations. For example, the company Hopkinson’s have a wide-ranging network
of suppliers that are being selected based on the principles concerning the quality of Arabica
coffee beans. However, the company also enables diversification in business either through the
acquisition or development of its other branches. Diversification limits the risk of the market as
well as of the industry.
Weaknesses
Weaknesses are the internal factors that tend to reduce or limit the potentialities of
business. The weaknesses of the Hopkinson’s coffee shop are as follows
 High priced points
 Generalised standards for majority products
 Imitability of products
The high price points of the company maximise the margins of the profit but also limits
the affordability of its products. The internal strategic point is considered to be a weakness
because it tends to reduce the market share of the company. This is more applicable in areas
where the income is tentatively low. The generalised standard is also considered to be a
weakness because it reduces the flexible nature of the coffee as well as the chain business of the
coffee company. On the other hand, the products of Hopkinton’s coffee can be easily created by
other stores or companies. The other companies tend to sell the products at a lower price in
comparison to the Hopkinton’ company. Additionally, the design, as well as the environment of
the Hopkinton’s coffee shop, can also be imitated. The environment of the business also tends to
empower competitors.

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Opportunities
This part of the swot analysis tends to focus on the external factors of Hopkinson’s
company for the growth in business and development. The opportunities that Hopkinton’s coffee
company has are as follows
 Enlargement in the developing market
 Diversification in the business
 Partnerships or coalitions with other companies
Hopkinton’s coffee company can increase their income through the expansion in the
markets that are developing. This opportunity intends to take away the attention from the U.S
market from where the revenues of the company are being generated. The diversification of the
products will also enhance the stability of the company in the long term basis. For example,
through the higher rate of diversification, the company will be enabled to limit the general
chances of the growth. The industry environment also tends to reinforce the presence of the
company as well as the share of the market either through partnerships or associations with the
other companies. For example, the association with the significant companies enhances the
distribution as well as the market share of the consumer goods of the company like the coffee,
which is ready to drink.
Threats affecting the Hopkinton’s coffee company
Threats are considered to be the external factors which tend to reduce or limit the
performance of the business. The threats of the Hopkinton’s coffee company are as follows
 Competition with the coffee sellers of lower cost

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 Imitation
 Independent Coffee house movements
The Hopkinton’s Coffee house tends to have huge threats from the other competitors that
exist in the industry and who tends to sell its products at lower prices. Imitation of the
Hopkinson’s coffee from the other companies also acts as a major threat for the company. The
environment of the industry is also subjected to independent movements of the coffee house.
These movements are considered to be the socio-cultural efforts that tend to support the
functions of the local coffee houses and it also tends to oppose the enhancement of multinational
chains of the coffee house.
Pestle analysis of the Hopkinson’s coffee company are as follows
The political factors affecting the Hopkinson’s coffee company
The business is dependent totally on international trade. The biggest producers of coffee
are in Asia, Africa and South America, and yet the coffee is popular in North America and
Europe. The relationship of trade between different countries that produce and even consumes
coffee plays a significant role in regulating the price of the coffee, which ultimately tends to
impact sales (Cadle, Paul and Turner 2014). There are other international trade agreements
which enable the success of the coffee.
Economic factors affecting the Hopkinson’s coffee company:
With the increase in the rate of the economy, the incomes of the consumers are also
increasing. Tough this directly impacts the industry of goods, it also has a huge impact on the
industry of food and drinks. Since the customers are becoming rich, they tend to buy more luxury

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items like tea and coffee. With more income, the customers are even going to splurge on the
coffee of the higher quality. Similarly, if the country is suffering from any economic losses then
the customers will tend to buy only the necessary items instead of spending their money on
luxuries items.
Sociological factors affecting the Hopkinson's coffee company
One of the basic sociological factors that affect the Hopkinson's coffee company is the
consciousness of health among the customers. The customers of the present situation want to be
more healthy. This is making them exercise more and eat healthier food. Various studies indicate
coffee to be an unhealthy drink as it contains a huge amount of caffeine. Caffeine tends to
deprive the sleep and effect on the moods. Since, the consciousness of health is on the recent
trend now, the customers are trying to avoid the coffee as much as possible and drink those
drinks which are beneficial for the health. this is one of the reason behind the reduction of the
demands of coffee. Another sociological factor that seems to affect the hopkinsons coffee
company is the fair trade of business. Fair trade is an international movement that aims to
recompense the farmers who lies behind the production, instead of the middle man who have
gained huge amount of profits since the history. Coffee is considered to be one of the significant
focus for the fair trade. Since the demand for the coffee products of the fair trade is increasing,
there will be huge increase in the income of the farmers while loss for the middle man. On the
other hand, the over all size of the company should be effected by the fair trade until the fair
trade reduces the consumers.
Technological factors affecting the Hopkins coffee company

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One of the major factor affecting the industry of food and drink is genetic engineering.
The genetic engineering includes the modification of production at the genetic level to increase
the shelf-life as well as the taste. Coffee which is genetically engineered is gaining all the
popularity very rapidly. The genetically engineered coffee should help in enhancing the industry
of the coffee as the producers of the coffee industry tends to get a huge amount of profit by it.
However, some consumers do not prefer drinking genetically engineered products because of the
unsupported side effects. Another technological factor affecting the Hopkinson's coffee house is
the invention of appliances which are specifically made for the coffee. Drip machines, coffee
grinders and espresso makers are some of the appliances which are available in the stores of
every coffee shop. These appliances make it easier to drink the coffee as well as encourages the
customers to buy the appliances in their home. Though it does not tend to affect the size of the
coffee company, many customers tend to buy these appliances and have their coffee in their
home rather than going to the stores for having it.
Environmental factor affecting the Hopkinson’s coffee company
One of the major environmental factor affecting the Hopkinson coffee company is its
sustainable farming. Some issues like the automotive CO2 emissions are not related to the food
and drink; there are some issues which are in connection to them. Unsustainable process of
farming a=leads to deforestation. The utilization of pesticides, fertilizers and the consumption of
water are some of the issues of distress in regards to framing. On the other hand, the world is
engaging itself in more sustainable practices of farming. This results in the enhanced cost of the
customer which harms the industry of the coffee.
Legal factors affecting the Hopkinson’s coffee company

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Since the coffee falls under the category of foods and drinks, it tends to follow all the
rules and regulations that the food and drink industry must follow. The Hopkinsons coffee
company must, therefore, follow the laws that are in connection to storing, transporting and
brewing. Since the coffee contains a huge amount of caffeine, it is also bound to follow the
standards of caffeine in some major parts of the world. Over time, these standards are increasing
rapidly.
Recommendation
Some of the recommendations that Hopkinson’s coffee company can implement in the
upcoming future are as follows:
Consistency in serving the finest quality of coffee
Espresso coffee is the kind of product in which consistency must be maintained. The
customers of the coffee industry will be passing away from various coffee stores to get the right
quality of the coffee. The perfect location with easy accessibility and view will not be enough to
attract the customers. The Hopkinson’s coffee company must, therefore, engage themselves in
buying appliances like the espresso coffee machine with 61 group heads and set with the right
pump and temperature. The coffee machine must, however, be installed with demineralized and
purifier of water. Utilization of the conical grinder is essential. However, it must be assured that
the product that is brought is of the highest quality. Additionally, it must also be assured that the
coffee is made with 90% Robusta and10% of the beans which are roasted. Every cup must also
be made with barista which is fully drained. This will enable every cup of coffee to be the
ultimate god shot.

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Ergonomics is essential
The location in which the Hopkinson’s coffee company is about to set their store must be
carefully chosen. The Hopkinson’s coffee company must ensure that they do not compete with
the other competitors of the drinks. Coffee sales of the high volume are the basic step of all the
coffee shop so it must be ensured that the workstation has easy accessibility to dustbins, storage
of beans, and milk which are bar fridged. The best set up of the Hopkinson’s coffee shop must
have a sink which is inbuilt and must have a cleaning which is easy going. The register of the
cash must also be kept in close juxtaposition to the Hopkinson’s workstation. This will enable
the organiser of the company to hear the orders of the customers and even have e a head start of
making even in the busy schedules.
Use of the loyalty cards
The loyalty cards must be given to the customers who regularly visit the Hopkinson’s
company. This will be attracting new customers to visit the company. However, the customers
who are loyal to the company will also remain loyal and will not approach the other coffee
shops. The customers tend to feel happy when they get the offer of getting the eight product free
on buying the fourth product.
Promotion of the multiple sales
Hopkinson’s coffee company cannot depend totally on coffee if they are supposed to
make more profits than expected. The coffee may be considered to be the main reason behind the
customers coming to the coffee shop, but the Hopkinson’s coffee shop should include multiple
sales to get many profits. To get a huge amount of profits, the sales from the coffee must be 40%

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weekly and sales of two items per each transaction of the customers. The Hopkinson’s coffee
shop must also sell foods, drinks and foods. This will enhance the sales of the coffee shop.
Limit the assortment
Hopkinson’s coffee company must keep various foods and drinks along with the coffee in
the stores for the satisfaction of the customers. However, it must be ensured that too many
products must not be available in the market as it will only be creating anguish among the
customers. The company must possess three types of food, three types of sizes and three types of
food only. Too many of the items in the store will be requiring more effort from the part of the
management, and this will eventually not add anything in the revenues as well. Too much of
items will not even enhance the experience of the customers. So limited products and strategies
must be maintained.
Mechanization of margins
Hopkinson’s coffee company must ensure that they make the price of the product
according to the value of the customers and not according to the value of the market. Some items
must, however, be sold at the lower price as well and this loss must, however, be compensated
with a high rate of margins on the other products which are of the utmost priority to the
Hopkinson’s company or belongs to the don’t care or the addictive category of the customers.
The beachhead strategies must be kept high
Initially, lots of problems will be faced in attracting a new customer to the coffee shop.
Therefore the company Hopkinson’s coffee shop must implement a strategy in which the