Kaffiene: Strategic Marketing Report - Ireland Market Entry Strategy

This report presents a strategic marketing analysis for Kaffiene, a UK-based SME, aiming to launch organic green coffee in Ireland. It begins with an executive summary outlining the key strategies for achieving a competitive advantage. A PESTEL analysis examines the macro-environmental factors in Ireland, identifying opportunities and threats related to political, economic, social, technological, environmental, and legal aspects. The report evaluates market entry options, recommending strategic alliances as the most suitable approach for Kaffiene. It then delves into market segmentation, targeting potential customers based on behavioral and demographic factors. Porter's generic strategies are analyzed, with cost leadership identified as the most appropriate strategy for sustained growth. The report concludes with a summary of findings and recommendations, providing a comprehensive marketing strategy for Kaffiene's successful expansion into the Irish market.

STRATEGIC MARKETING

Executive Summary
Strategic marketing involves creating, implementing various strategies to achieve organization's
objectives and to have a competitive edge over others. This report includes PESTEL analysis for Kaffiene
to analyse macro environmental factors of Ireland, which states the positives, negatives factors and
opportunities and threats for Kaffeine in order to launch successfully organic green coffee and also
analysed various market-entry options and suggested most suitable market entry option for Kaffiene,
which was Strategic Alliances. The meaning of Market segmentation in business, targeting the market
share in general terms for expansion and growth among the potential targeted customers. Studying
behavioural approach and demography of Ireland to path out the market scenario, key points to work on
for business growth. Analysis of the Porters generic strategies and explanation of Cost leadership being
the most suitable strategy to use for further stable growth in economy.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
PESTEL ANALYSIS..................................................................................................................4
Market entry options....................................................................................................................6
Market segmentation...................................................................................................................7
Porters generic strategies.............................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Strategic marketing refers to plan, co-ordinate and apply strategic marketing tactics in order to
have competitive advantage and also helps in identifying company's goals and how to accomplish them.
Main objective of this report is, that a coffee shop named Kaffiene, which is SME of UK, wants to spread
their services to outside the country. They want to introduce a new product, organic green coffee, and also
to launch the same overseas.
The report provides PESTEL analysis to identify the factors the company will face while
launching the product, and also the opportunities and threats according to PESTEL analysis, which will
ultimately guide the company to take precautionary measures. This report also states different market
entry options including strategic alliances, mergers, acquisitions and FDI's etc and also critically explains
market segmentation and targeting customers. This report provides and justifies most suitable market
entry option for Kaffiene and how could they target potential customers efficiently. This report also
includes Porter's generic strategies, while also suggesting best suited strategy for Kaffiene, after critically
analysing.
MAIN BODY
PESTEL ANALYSIS
PESTEL analysis is a tool used by marketing professionals to analyse macro-environmental
factors that affects any organization and to identify opportunities and weaknesses.
Illustration 1: Pestel Analysis
(Source: PESTEL Analysis. 2019.)

Political Factors: In Ireland inflation has been increasing continuously, to compensate it Irish
government has introduced a program named Prosperity and fairness which allows more wage increase
(Pacesila, Burcea and Colesca, 2016). Ireland's trade policy is same as that of other European Union
members, because Ireland is also member of European Union since 1973.
Opportunities: Since Kaffiene is currently operating in UK, which is a part of EU, which follows the
same policies of trades. It will benefit the company in spreading their business and launching the product
their.
Threats: As inflation rates are on rise in Ireland. It can be a major hurdle for Kaffiene.
To overcome threats, high inflation provides businesses a chance to lower the cost of employee
wages. Kaffiene can enhance employee wages by amount which is less than the inflation rate, and that's
how it can bring down employee wages expenses.
Economic Factors: Ireland offers high level of freedom, strict laws of protecting individual rights, has
the lowest corruption and efficient laws for businesses (Pestel, 2019). Since Ireland is part of EU,
exchange rates of euro are same for other members. Ireland has friendly immigration policies.
Opportunities: Ireland's friendly immigration policies and same exchange rates of euro will provide
tremendous benefits to Kaffiene while entering into the country.
Threats: In Ireland, business organizations cannot change prices of their services. So it possesses a threat
for Kaffiene, because to counter inflation, rates needs to be changed.
To overcome this problem, Kaffiene or any other organization has to take approvals from
industry regulators in order to change prices of their products or services.
Social Factors: In Ireland there are 2 major languages which are widely spoken, English and Irish.
Ireland's majority of population which is around 32% falls in between age group of 45-65 years. There are
also reports of violence in between northern region of Ireland and Republic.
Opportunities: Kaffiene will have no problem while launching organic green coffee because major
population falls in between (45-65) years which are also health conscious. Thus, providing excellent
opportunities to Kaffiene to launch organic green coffee in Ireland.
Threats: Violence has been reported in some parts of Ireland and Irish language is also spoken widely
along with English.
To overcome these problems, Kaffiene shouldn't launch their services in northern part, and they
should balance the ratio of their employees speaking both English and Irish.
Technological Factors: Ireland is one of the most technological countries of the world and keeps on
investing on its technologies. This has resulted in high level advancement in technology of the country.
PESTEL analysis is a tool used by marketing professionals to analyse macro-environmental
factors that affects any organization and to identify opportunities and weaknesses.

Opportunities: Since Ireland offers huge investment options for IT industry, so Kaffiene will not face
any technological hurdles. Kaffiene can purchase and use the latest technologies to ease their
services/operations for customers.
Threats: One of the possible threat related to technological factor can be that it would have to make use
of innovative technology in order to differentiate it from its potential competitors. This can prove costly
for the organization as Kaffiene is a SME such huge investment can be a threat for the organisation.
In order to overcome this threat company should formulate effective budget and look for the bets
source of funding in the country.
Environmental Factors: Ireland follows EU's Environmental Technologies Action Plan (ETAP), it links
several key stakeholders, organizations and research institutes to develop environmental friendly work
culture (Sheehan and Kavanagh., 2018). Large area of country is dedicated to farming.
Opportunities: Since Ireland offers large amount of area dedicated to farmers. Kaffiene can easily launch
organic green coffee in Ireland, because they can easily acquire land area for coffee farming.
Threats:It may be difficult for Kaffiene to follow strict guidelines of Ireland's ETPA, while launching
their products and services.
To overcome this problem, Kaffiene should make sure that all of their activities/ operations come
under ETPA. They also have to make sure that the amount of waste production by their stores, and carbon
footprint is limited in Ireland.
Legal Factors: In Ireland there are still impacts of Brexit. Also, Ireland only allows Irish and British
people to work legally. Ireland has set minimum age of employees to 16 years.
Opportunities: Ireland has made flexible laws that allow Kaffiene to carry out their services/operations
effectively.
Threats: Kaffiene may have to face circumstances of Brexit, and they cannot hire workers from outside
European Union.
In order to overcome these, Kaffiene should hire more employees from within the country, and
plan their strategies according to the legal environment after Brexit.
Market entry options
There are various market-entry options available for organizations like Kaffiene to enter Ireland
for their product launch. These include strategic alliances, mergers and acquisitions, FDIs etc.
Strategic Alliance: In this option, organizations have to make partnerships with other local companies. It
is considered to be almost necessary activity, while entering into a foreign market (Zhou, 2017). This
strategy is usually carried out where there is totally different work, social and political cultures.

Mergers: Under this, two organizations agree to work in a different country or in a different
environment, and produces a third organization to carry out all the operations, also profits, losses risks all
are shared equally.
Acquisitions: It refers to the acquiring of existing small companies, because they may have solid
customer base and good market position (Thomas and Maine., 2019). It helps any organization to acquire
status of a local company, providing local benefits and also support from local government, but it is also
costly process.
FDI's: FDI is the immediate ownership of resources, and raw materials in the target marketplace or
region (Niu, Cui and Zhang., 2017).
It includes transfer of facilities like technologies and capital, etc. FDI's can also be made possible through
acquisitions. Through FDI, company can have huge control on operations in foreign country and also
provides opportunities to know about consumers and environment (Sears, J., 2019).
After analysing all the available options for market-entry of Kaffiene for launching organic green
coffee in Ireland. The most suited option for Kaffiene would be Strategic alliances. By doing strategic
alliances with any of the similar firm in Ireland, Kaffiene will quickly acquire knowledge of local markets
and resources from alliance, in order to set up operations and launch products speedily. This strategy also
increases reputation for both the partners, reduces complexity. Kaffiene's strategic alliances with other
companies will also enable them to compete with other big giants in similar firms. As discussed above
Illustration 2: Market Entry Option
(Source : Market entry strategy. 2015)

that there are some challenges in political, economic and legal factors, so alliance with local firms will
minimize the impacts of these factors/risks, because the local companies already have experience and
knowledge of the countries laws, rules and regulations, policies, environment, culture etc. This strategy
will also help to enhance skills and to learn existing technologies in Ireland quickly from local partners,
which will all ultimately contribute in success of Kaffiene. Kaffiene can launch organic green coffee
easily with the help of customer base of alliance, local company's brand image will also help Kaffiene in
attracting more and more customers. Thus, setting and improving company's reputation globally and
easing all the process of entering and launching the product organic green coffee there.
Market segmentation
Market segmentation can be defined as the process of dividing a target market into smaller, more defined
categories by precisely segmenting markets for efficiently expanding the organisation. It segments the
customers and allows to understand how new products can be launched in market to meet new needs of
customers by executing innovative strategies from top to bottom (Dolnicar, 2019). Targeting the market
means dividing the range of customers the company seeks to offer services to customers. By segmenting
the targeted market properly, company can strategically work on various points by which it can focus on
better Marketing efforts for the targeted customers.
The company offers great comfort in its cafes and has built royal image by offering quality coffee
products to its visitors Ireland has much younger generation people living, expanding the company there
Illustration 3: Market Segmentation
(Source: 4 types of Market Segmentation with examples.
2019.)

with wide focus on the product, it plans to cater large public there with all sorts of coffee beverages, food
items and offering a good ambience for its customers.
Keffeine is planning to launch new organic green coffee, which is a great healthier option for the people
of Ireland who believe in living a healthier form of life.
Behavioural segmentation
The organic green coffee is rich in antioxidants, less in caffeine content and also has many stress
reliving micronutrients, which gives boost to metabolism and has many health benefits. People who are
aiming for weight loss have a great option to go for green coffee, as it is scientifically proven to aid
efficiently in normalizing the body sugar and keeping a good heart rate (Liu and et.al., 2019). It contains
anti-ageing properties for humans with high concentration of chlorogenic acid present in it, it reduces the
redness associated with excessive sunlight exposure. It improves the energy levels as green coffee beans
have extracts of bringing the good feel hormones in flow, increases the energy levels in body. By strategic
marketing the segmentation of market can be done properly into groups of people with various choices
and tastes. People who are health conscious and love to have coffee can cater to this healthy option easily
which possess many health benefits and is an amazing sugar free substitute for diabetes patients as well
(August, Dao. and Kim, 2019). The green coffee beans are scientifically proven as an anti-diabetic
agent,by stimulating the natural insulin in body. It also keeps the blood pressure low and daily usage of it
keeps body fat content very low (de Villiers, Tipgomut and Franklin, 2019). By keeping these
characteristics in mind, behavioural segmentation should be used by company for its expansion.
Kaffeine brand always caters to the desires of customers in mind for reaching higher goals. The demands
of public needs to be catered completely, addressed fully for maintaining the name of brand. Company
should strategically segment the market for reaching the target customers effectively, build up the arenas
where it needs to work on for better execution of market sales.
It can deliver the justification to the potential target customers by segmenting them into 4 categories of
market- Purchasing habits, spending habits, brand interactions. Understanding the behavioural
segmentation requires you to know about customer choices, their requirements for a more comfort
experience with the brand. With the increasing completion of emerging cafe brands every day, company
need to innovate rigorously, work strategically to uplift its image in newer markets (Cole, Doremus and
Hamilton, 2019). Expanding its market in Ireland,Kaffeine should use the market segmentation strategy
of business properly for proper utilization of all its resources. It has to pool in more financial resources for
better training and services for reaching its target customers, for enhancing their experience with the
brand.

Company can also use the demographical study of Ireland to analyse the study, where are the
most targeted market spread, so it can make its presence felt by proper implementation of business
strategies for potential target customers with justification to the resources utilized in the organisation.
Porters generic strategies
Porter generic study is a business strategy to understand a firm’s relative position within an
industry to determine the profit levels within the industry. The fundamental works on analysing
company's functioning of resources on basis of above average profitability earned in competitive
environment among other brand. The three generic strategies for achieving above average performance in
an industry are:cost leadership, cost focus and differentiation focus.
Cost leadership-In this strategy a firm sets out to become the low cost producer in its industry. The
sources of cost advantage are varied depending on the structure of the industry (Subedi, 2016). A low cost
producer must exploit all its resources of cost advantage.
Differentiation-In this strategy a company seeks to be unique among the industry from its competitors by
working on dimensions that are widely valued and demanded by buyers. It selects one or more attributes
that many buyers in an industry perceive as more important and uniquely position itself to meet those
demands.
Cost focus-In this strategy firm focuses of seeking a cost advantage in its target segment by focusing on
low cost and upscale difference. The ultimate goal of the cost focus is to keep the prices lower than other
providers of similar products with superior quality.
Differentiation focus-In this strategy company focuses on being different among the competitors in
industry by keeping special need of target markets in mind, offering premium service for the best value.

Illustration 4: Potter's Generic Strategy.
(Source: Potter's Generic Strategy, 2019)
COST LEADERSHIP STRATEGY
Cost leadership strategy among the four generic strategies is best suited for Keffine to pursue
within Ireland,as larger population of country has younger generation which always wish to have products
within their budget. It should aim to offer the best price products among all competitors to keep the
customers satisfied and also work on maintaining techniques innovative (Chepchirchir, Omillo and
Munyu, 2018). A cost leadership strategy works on the principle that more the number of units produced,
lower will be the unitary cost. It exploits the scale of production, by bringing highly standardized
products in market and using advanced technology. It helps company to sell more products at seller
margin price. Keffine by adopting the cost leadership strategy in Ireland can gain productivity
enhancement on various levels by having benefits in economies of scale as efficient quality production
decrease the costs of production. Innovative technologies and better quality methods of production are a
major deal in cutting costs. It can be understood as better the technology used, more are the chances of its
staying a cost leader in the long run. A company needs to be huge to be a cost leader in the market. Even
if a company manages to produce just one product, but with full focus and efficiency,it can manage to
become the cost leader in that field of the market. More the focus that a company renders to its quality
service with good prices offered, more are its chances of becoming a cost leader in the market.
Keffine company by expanding its cafes in Ireland should focus on management skills within
company too by innovating more in its coffee products, to develop cost effective productive techniques
for the targeted market who choose healthier options of coffee. By offering good cost price range of

products brand develops satisfactory customers who maintain their relationship with brand due to its
quality and prices. It improves the sustainability of business, creates more capital for growth in long run.
It facilitates availability of more capital resources (Muigai, 2018). By implementing the cost leadership
strategy properly, company can make a prominent place in marketplace for itself as they are able to offer
competitive price range. The brands with the lowest cost of doing business with the best quality products
always have the greatest chance of survival. It increases the sustainability of brand to remain in the
company by the competitive prices and maintain the good profitability margin.
CONCLUSION
It can be concluded for the report that Keffine Company, UK brings out the key points company
needs to work on for expanding their business in Ireland. Introduction reads out the basic points on
working of company where it strategic studies it has to work on are discussed briefly. PESTLE analysis
shows the macro-environmental factors brand needs to work on which are political, economic, social,
technological, and legal and the environmental factors. The study on main market entry points for the
brand to make a prominent place in economy such as Strategic Alliances, Mergers and Acquisitions, FDIs
are discussed. Strategic alliance is the most suitable with justification of choice for expanding the
company in Ireland. The use of Market segmentation for targeting the potential customers, by adopting
the behavioural segmentation technique to understand the potential customers requirements. From the
analysis of all Potters generic strategies, cost leadership being the best suited strategy for adopting.