K Café Coffee: Analysis and Marketing Plan for International Markets

This report provides a comprehensive market analysis for K Café Coffee, focusing on its potential for international expansion. It begins with an introduction outlining the company's current market position and the rationale for international growth. The report then conducts PESTLE analyses of both Malta and Japan, evaluating the political, economic, social, technological, legal, and environmental factors of each market. Following this, a SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats. Porter's Five Forces are applied to analyze the competitive landscape, particularly in Malta and Japan. The report explores business buying and consumer decision-making processes, market entry strategies, and the STP (Segmentation, Targeting, Positioning) approach. Finally, the marketing mix is discussed, leading to a conclusion summarizing the key findings and recommendations for K Café Coffee's successful international market entry.

Running Head: MARKETING IN BUSINESS 0
Marketing in Business
(Student Name)

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Table of Contents
Introduction......................................................................................................................................2
PESTLE Analysis............................................................................................................................2
PESTLE Analysis of Malta..........................................................................................................2
PESTLE Analysis of Japan..........................................................................................................3
SWOT Analysis...............................................................................................................................4
Porter’s Five Forces.........................................................................................................................5
Porter’s Five Forces Analysis of Malta........................................................................................5
Porter’s Five Forces Analysis of Japan........................................................................................5
Business Buy and Consumer Decision Making...............................................................................6
Method of Market Entry Strategy....................................................................................................7
STP..................................................................................................................................................8
Segmentation................................................................................................................................8
Targeting......................................................................................................................................8
Positioning...................................................................................................................................8
Marketing Mix.................................................................................................................................9

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Conclusion.......................................................................................................................................9
References......................................................................................................................................11

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Introduction
Expansion of business in the international market will provide new opportunities to the company
to extent their zone of targeting consumers and achieve great success in the international market
in an efficient and effective manner. To entre in the new market, it is required for the company to
analyze the new market and make their marketing plan accordingly (Sualang, Massie and
Pandowo, 2017). Targeting consumers in competitive market is one of the biggest challenges for
the company. It is highly required for them to prepare strong marketing strategy while analyzing
the market potential in an effective and efficient manner. (Ingram et al., 2015). One of the
leading and innovative café K Café Coffee currently has a strong presence in the country UK.
The café manage the market of business to business and business consumers to enhance their
performance. They manage 15 coffee houses in the country as well as have wide range of
consumer products for in-home consumption, retailed through all the major super market chains.
The café has their own unique blends in which they roast them in their own roaster that is mainly
open to the public for the tours as well as interactive roasting sessions. They serve and offer
variety of products to their consumers related to coffee (Waheed et al., 2017). Moreover, they
also cover other beverages to expand their menu and service better services to them in an
effective manner. K Café Coffee has achieved great success over the past few years that make
them recognizable in the UK market. They already enjoy their brand value in such country. The
café can expand their business in the international market to serve their services internationally.
International market is full of opportunities and threats that are required for K Café to analyze
the market potential before entering in the market. The expansion of their business in the
international market will give new birth their business. They can able to target their consumers
internationally as well as can increase their share in the international market. The café can also

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earn their goodwill in the international market that will make them more successful (Tadajewski
and Jones, 2016).
In the following part there will be detailed analysis of the European and Asian market which is
majorly suitable for them to expand their business and which market has more potential
according to which the marketing strategies and the way they will target their consumers will be
analyzed and will be prepared by the face in an effective and efficient manner.
PESTLE Analysis
PESTLE Analysis of Malta
Political Factor: the government structure of Malta is very strong. In the year 2016, the
government of the country raised the revenue to Euro 3.7 billion whereas the expenditure was
Euro 3.8 billion. It resulted as the government of the country net lending or borrowing is
negative at Euro 0.64 billion in the year 2016 (Sammut‐Bonnici and Galea, 2015).
Economical Factor: it is one of the smallest members of the European Union as well as has one
of the fastest growing finance sectors in the international market. The country enjoys the lowest
rate of tax in the EU, with great regulation as well as highly skilled but affordable workforce
(Tutak and Brodny, 2017).
Social Factor: the culture of Mala is reflected in a mixture of the Arab as well as Italian
traditions. The people of Malate are highly literate as well as have deep appreciation of the arts.
Te people consume coffee on regular basis in Malta. According to the analysis, the consumption
of coffee in Malta is 2.3 kilos per capita per year. The country ranked in the 50th position

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amongst 146 countries. It represent that the demand of coffee in such country is high (Guagnano,
Santarelli and Santini, 2016).
Technology: in term of technology, the country is considered as one of the updated country in
the world. The country has de great strides in developing the information society. The
government has taken various initiatives towards the expansion of technology in the country that
makes the country more successful. The use of internet and online shopping is high (Simoes et
al., 2017).
Legal Factor: Most of the people in Malta is employed in the manufacturing as well as service
sectors. The country has two chief labor unions which are the General Workers Union and the
Union of United Workers. They protect the interest of employees as well as the businesses are
required to register their business under the lawsuit of Malta to grow in such market (Mol‐
Gomez‐Vazquez, Hernandez‐Canovas and Koeter‐Kant, 2018).
Environmental: the country is also concerned towards protecting the environment. They have
introduced certain Acts that forces the business to follow such rules to protect the environment in
an effective and efficient manner (Attard Tonna and Shanks, 2017).
PESTLE Analysis of Japan
Political Environment: the political environment in such country is rigid. The government has
direct and strict control over the business that resists the companies to expand their business in
such market. A policy deadlock is blocking the necessary reforms that suffocating the productive
firms of japan.

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Economic Environment: the country suffers from public debt 201% of GDP. It represent that the
GDP growth of the country is 0.9%. it is characterized by the small farms labor intensive
technologies. They have achieved tremendous economic development by taking the advantage of
their maritime location as well as resources (Rasnan et al., 2016).
Social Analysis: Japan is situated in northeaster Asia between the North Pacific as well as the
Sea of Japan. Food rice is the staple of the Japanese diet. They also prefer seafood, beef, dairy,
vegetables as well as fruits. They rarely drink unhealthy beverages due to the reason they are
concern towards their health.
Technological Factors: the country Japan has reached a level equivalent to or beyond the US in
term of technology. The country stood third in the global market for adopting high intensive
technology. It represent that the country is highly technical country.
Legal: the legislative organ of Japan is the National Diet. The Prime Minister of the country is
the main head of the government. The law regarding the composition proceedings has been
revealed as well as the law regarding the corporate arrangement proceedings, while still in the
effective, it rarely utilized (Cho et al., 2017).
Environmental Factors: the country majorly focused on the reduction of the solid waste that is
going to landfill. It is in the response to the lack of affordable space that is available for the
landfills sites. They have set strict rules and regulation on the business to protect their
environment in an effective manner (Hou et al., 2015).
SWOT Analysis
Strengths

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 The main strength of K café is their quality. K café has its own unique blends that make
the coffee more delicious. They serve quality coffee to their consumers that make them
more recognizable in the competitive market in an effective and efficient manner.
 K Café Coffee also holds regular pop up events throughout the country by utilizing the
roast wagons network that has been customized into the mobile coffee serving solutions.
Such approach make the café to take the brand to the consumers by popping up at the
festivals, sporting events as well as any kind of exhibitions throughout the country in an
well-organized manner.
 The café has strong marketing strategy that they have adopted. It makes them more
competitive in the market in an effective as well as efficient manner (Bull et al., 2016).
Weaknesses
 The price of the product of K Café Coffee is high as comparison to their other
competitors. It made them less competitive in the market due to the reason their
competitors attract their consumers through offering low price product to them.
 The café failed to introduce innovative product in the market that make them less
competitive in the international market at greater level.
 The café also faces issues of retaining the staff in their café. The permanent staffs are not
been tackled by the café in an efficient manner. They have majorly lack of permanent
employees that forces the café to hire more part-time employees in the café (Phadermrod,
Crowder and Wills, 2019).
Opportunities

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 The political environment of Malta is positive whereas the political environment of the
Japan is rigid that give an opportunity to the café to expand their business in Malta rather
than in Japan.
 The population of Malta are concern and keen for the coffee whereas the population of
Japan are more heath conscious that forces them to ignore such kind of beverages on
regular basis that provide an opportunity to the café to expand their business in Malta
rather than in Japan to cover maximum number of consumers and satisfied them in an
effective and efficient manner at greater level (Abdel-Basset, Mohamed and
Smarandache, 2018).
Threats
 The low cost of entrance in such industry increase high level of competition in the market
that affected the overall performance of the café at greater level. They need to
concentrate on their business more efficiently that may enhance the cost of their business
at greater level.
 The pressure of innovation in the competitive market made tough for the café to survive
in such competitive market at greater level.
 The café can also face threat of changing in taste and preference of the consumers. It may
affect overall sales of the company at greater level (Gurel and Tat, 2017).

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Porter’s Five Forces
Porter’s Five Forces Analysis of Malta
Threat of New Entrants: the threat of new entrants in such industry is high due to the reason the
demand for café in such country is high that attract maximum number of individual to entre in
such industry to grow in a market in an effective manner. It will create threat of new entrants for
K café in such industry at greater level.
Bargaining power of consumers: the bargaining power of consumers in such industry is high
due to the reason the cost of switching to other café is low for the consumers that give them an
option to try other cafes as well. Therefore, it represent that the bargaining power of the
consumers are high in the market that will force the face to control over their cost to deliver low
price products to their consumers (Moreno-Izquierdo, Ramón-Rodríguez and Perles-Ribes,
2016).
Bargaining power of Suppliers: the bargaining power of suppliers in shuck industry is low for
the café due to the reason there is high number of suppliers available in the market who supply
similar products. It enhances the level of competition among them that forces them to supply
their products to the clients at lower prices.
Threat of Substitute: the café can face the threat of tea or other cold beverages in term of
coffee. The consumers can switch to the tea that is one of the biggest threats for the café due to
the reason it is majorly the strong product that most of the people like. Therefore, the threat of
substitute in such industry is high.

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Rivalry: there is healthy competition in Malta that can affect overall performance of the café at
greater level. The sales of the café may highly affect due to the reason of high completion in the
market. The major competitors for K Café Coffee will be Café Riche, Starbucks, and Café
Jubilee. They deliver quality product at reasonable prices to their consumers that make them
competitive in the market. Starbucks has already set their brand image in the international market
that attracts maximum number of consumers towards their product in an effective and efficient
manner (Pera, 2018).
Porter’s Five Forces Analysis of Japan
Threat of New Entrants: the treat of new entrants in japan is low due to the reason of strict
rules and regulations imposed by the government of Japan resist the new business to enter in
such market. However, the barriers for entry in such market for the café are also high.
Threat of Substitute: the people of Japan are concerned towards their health that forces them to
drink green tea, juices that are the biggest substitute of coffee for the consumers. therefore, the
threat from substitute for the café is high due to the reason the consumers can shift to such drinks
anytime and most of them also uses on regular basis that make them resist to drink coffee
(Takata, 2016).
Bargaining power of Suppliers: there is rise in the prices of coffee beans in Japan that forces
the suppliers to deliver the coffee beans in low margin to attract their clients towards their
products. The market is also overcrowded that increase competition among the suppliers of Japan
which forces them to sells their product at nominal prices.

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Bargaining power of Consumers: the bargaining power of consumers in such industry is also
high due to the reason there is number of options for the consumers to try. It can affect overall
sale of the café at greater level.
Rivalry: he café can face he competition in the market. The major competitors for K Café
Coffee are Gloria Jeans, Caribou Coffee as well as Tully’s Coffee. Such competitor sells similar
products including the specialty as well as high quality of food. There is also high competition in
terms of the volume of the operations (Mighty, 2017).
Therefore, from the above analysis of the market it is highly recommended to the K café to
expand their business in the country Malta due to the reason, they have positive political and
economic environment that will create an opportunity for growth in such country in an effective
manner. Moreover, the demand of coffee in Malta is high as comparison to the Japan therefore; it
can help the company to enhance their sale in Malta in an effective and efficient manner.
Furthermore, while analyzing the strength of the company and the industry analysis in which
there is healthy competition in the Malta that will give an opportunity to the café to adopt
innovative method to enhance their performance.
Business Buy and Consumer Decision Making
The market of business to business is different from the consumer market. K café manage both
B2B activities as well as B2C activities in their business. They need to take different decision
making according to the B2B and B2C process. In B2B, the decision making process and the unit
are more complex (Rodrigues and Borges, 2015). The decision of B2B is made by the several
employees with each specializing in a different field. The B2B decision makers are more
accountable for their judgments as well as therefore have more complex requirements as

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compare to the consumer buyers. In B2B decision making process, the individual gather the
information and then find the alternatives, the product that has high weightage evidence then it
will be chosen from the alternatives and relevant action will be taken by the businessman while
purchasing the products (Wheelen et al., 2017). The main reason behind such analysis is that
they purchase on bulk that crate huge difference in prices. The decision to buy a product or any
services has commercial purpose therefore, the sale require a rationale analyses, a longer
consideration time as well as ongoing assistance by the seller (Gerbl, McIvor and Humphreys,
2016).
In the decision making process of B2C, the sales are generally less rational as well as more based
on the impulse. The process of decision making is shorter in time as well as individual in the
decision making. In such process the consumer buy limited or small amount of product directly
from the retailers to satisfy their needs and wants in an effective and efficient manner (Alavi et
al., 2016).
Method of Market Entry Strategy
Here are different methods of entering in the new market that can help the business to grow more
successfully in the new market such as Franchising, Joint Venture, Licensing, and Own
Subsidiaries. Therefore, K Café Coffee will adopt Franchising as well as Own Subsidiaries to
enter in the market of Malta (Laufs, Bembom and Schwens, 2016). Such methods are explained
in below points in detail:
Franchising: it is one of the widespread known marketing strategies. It is the process in which
the agreement is done between firms that one firm makes an agreement with another form to sell
their products (Min, Kim and Zhan, 2017). The second firm has right to get the trademark as well

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as logo of the products. Therefore, K Café Coffee will provide that option to the firms of Malta
to expand their business in every corner of the market. The interested firms will get in touch with
K Café that will help both the companies to grow in the market in an effective manner. There are
certain advantages and disadvantages of adopting such methods as they are explained in below
points:
Advantages
 It will give an opportunity to K Café Coffee to grow rapidly as well as to be wide spread
known.
 K Café Coffee can enter into new market with least investment in an effective manner.
Disadvantage
 It will be tough for K Café Coffee to check that franchisee effectively manage the quality
of their services or not.
 Failing in providing the quality service by franchisee will affect the image and goodwill
of the Café at greater level.
Own Subsidiaries: it is one of the processes in which the firm own 100% of the overseas entity.
Therefore, K Café Coffee will expand their business in Malta by introducing their own
subsidiary outlet in the approachable area to main their quality of services in an effective as well
as efficient manner. There are certain advantages as well as disadvantages of adopting such
strategy are explained in below points:
Advantages

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 K Café Coffee can have tight control over their services that will be provided to the
consumers due to the 100 % of ownership.
 K Café Coffee could have 100 % of profits in its wholly-owned subsidiaries.
Disadvantages
 The cost of investment in the new market will be high for the café.
 The risk also lies in the uncertain foreign market, the unfamiliar political as well as
economic environment or any cultural gap (Chetty, Ojala and Leppäaho, 2015).
STP
Segmentation
Segmentation is required to analyze to analyze the behavior and taste of the consumers to target
them in an effective and efficient manner. The target segment of K Café Coffee is explained in
below points:
Geographic: Malta is one of the Islands where most of the tourist visited that place. Hey majorly
prefer innovative theme and products that can calm them with the taste
Demographic: the purchasing power of people is high in such country. In general, the young
generation has great spending power as they have great demand for the customized coffee as
well as other beverages. The average income of the people is $10000 to $50000.
Behavioral: most of the population in Malta prefers healthy as well as tasty food. The recent
trend in such industry represents that the innovative coffee with the efficient services are majorly
famous among the residents of Malta.

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Psychographic: the major trends in Malta are the habit of healthy consumptions. The salty, sugar
as well as plump is majorly being switched by the bold and vigorous flavors in Malta (Chang and
Chen, 2015)
Targeting
Targeting is one of the process through which there is selection of potential consumers to whom
a business wishes to sell the products or any services. Therefore, K Café Coffee will target
demographic segment of the industry to attract the consumers. The economic condition of Malta
is positive that help in enhancing the power of purchasing among the population of the country.
They will target the consumers between the ranges of 17-37 due to their more spending power
than other age groups of segment. They will target both gender. The price range of the products
will be normal to target normal range of consumers for the products (Funk and Hirschman,
2017).
Positioning
Positioning is one of the processes to identifying the concept for each target segment, select one
of the best and then communicate it. The positioning theories that can be adopted by K Café
Coffee are explained in below points:
 Provide customer benefits: K Café Coffee will provide unique customer benefits to them
that will make them competitive in the market. They will focus on overall style as well as
the upcoming trend in the market.
 Use price as a positioning element: K Café Coffee will sue the price as a strong tool in
their business. They will offer low quality product to their consumers. The price of the

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products will be in that manner that the consumer would have full worth of the money
spent by them (Kuncoro and Sutomo, 2018).
Marketing Mix
Product
K Café Coffee is one of the well-known brands in UK. Therefore, they will cater quality and
variety of products to their consumers. The ambiance of the café will be comfortable and trendy.
They will cater different products in coffee such as coffee latte, mocha, cappuccino, Americano,
espresso as well as flat white to attract maximum consumers. They will also add other beverages
and products such as Black Velvet, Lemon Vodka as well as Passion Fruits to cover maximum
number of consumers in an effective manner.
Price
The café will adopt bundle pricing strategy in their business to target their consumers. it is one of
the concept in which the multiple products will be provided at lower price than the consumer
would face while they will purchase each item individually. It will force the consumers to
purchase multiple products to avail maximum discounts.
Place
The coffee shop will be set up at the crowded place of Malta as well as near beaches. It will help
them to target tourist as well as local consumers in an effective and efficient manner. The main
aim of the coffee shop is to have more than six coffee shops in that city.
Promotion

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The coverage of media in Malta is very effective that will support K Café Coffee to promote
their products in an efficient manner. Therefore, the coffee shop will adopt social media as a
marketing tool to spread awareness about their brand in the new market. They will use Facebook,
YouTube, as well as Instagram as a platform to target the consumers. K Café Coffee will also
provide heavy discounts on particular products such as buy one get one free, promo code of 50%
off to target consumers in an effective and efficient manner (Gujral, Rauzela and Chuchu, 2016).
Conclusion
From the above analysis it can be concluded that entering in new market require strong
marketing strategy to survive in such competitive market. K Cafe Coffee is one of the leading
café in UK. They have set up their goodwill in an effective manner. After achieving such
success, they are planning to expand their business in the international market. International
market is full with opportunities and threats; K Café Coffee is only required to analyze such
opportunities to grow in the international market. The company has two market options which
include Europe or Asia. According to the macro environment analysis, they are recommended to
expand their business in Malta due to positive working environment in such country and highly
demand of coffee will provide an opportunity to the business to target their consumers in an
effective manner. After analyzing the market, the company will target young generation as their
purchasing power is better than other generation. The coffee shop will serve variety of coffee
products to their consumers along with other beverages and eatable products such as Black
Velvet and so on. They will adopt social media as tool to target their consumers. at the end, it is
required for the café to make marketing strategies and budget to grown= in the international
market in an effective and efficient manner.

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