Introduction to Marketing: Kinfolk Cafe Case Study

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Introduction to Marketing

Table of Contents
EXECUTIVE SUMMARY............................................................................................................. 3
MARKETING OBJECTIVES..........................................................................................................4
TARGET MARKET......................................................................................................................5
MARKETING STRATEGY............................................................................................................ 6
MARKETING BUDGET............................................................................................................... 8
CONCLUSION............................................................................................................................9
REFERENCES........................................................................................................................... 10
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EXECUTIVE SUMMARY
The Kinfolk cafe is a social enterprise based in Melbourne, Australia. The cafe offers organic
and healthy food and beverage options to the customers. It is a volunteer-driven company
with volunteer waiting staff. The main aim of the cafe is to support the charity and it does
not focus on earning higher profit or revenue. The situational analysis has provided a clear
overview of the current market situation and demand of the company. Through the
situational analysis, it has been founded that the current products and services of the cafe
are not up to the market demand. Moreover, the marketing strategies are also lagging
behind its competitors. Thus, this report would enable the company in formulating effective
solutions to the current business problems by establishing SMART marketing objectives,
determining the target market and formulating effective marketing strategy and budget for
the company. The marketing strategy is developed by using the concept of the marketing
mix so that the company could successfully achieve its business objectives.
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MARKETING OBJECTIVES
By analysing the current industry environment, strengths, and weaknesses of the company
the key marketing problems that are affecting the business of Kinfolk cafe are lagging
marketing strategies, ineffective products and services and increasing competition in the
industry (Kinfolk, 2019). The problem of the weak marketing strategies could be resolved by
utilising the latest marketing trends such as the use of digital technology and social media
websites such a Facebook and Instagram to attract a large number of customers towards
the cafe. The products and services offered to the customers are also not attractive enough
to fulfil the demand of the customers thus; there is a need for upgrading current product
range by including more organic food and beverages option such as innovative salads,
organic burger and milkshakes to the menu.
In order to deal with the identified problem and attract a large number of customers
towards the cafe raising higher charity amount, the following SMART business objectives are
developed (Woodruff, 2019).
OBJECTIVES
OBJECTIVES SPECIFIC MEASURABLE ACHIEVABLE REALISTIC TIME
BOUND
To boost
total sales by
50%
Increasing
the sales rate
by 50 %
Increment in
business sales
by 15 % per
month
By employing
innovative
marketing
strategies
such as
digital
technology
The
increasing
demand for
organic and
vegan food
would
support in
achieving the
objectives
Within Next
3 months
To increase
the social
media
presence of
the company
Increasing
the social
media
presence of
the company
by
developing a
business
profile
By increasing
the number
of social
media likes
and
subscription
to the
business page
and profile by
more than
To achieve a
higher
number of
social media
subscription
for the
company as
compared to
the
competitors
By driving
higher traffic
to the
company
profile and
boost brand
awareness
among the
customers as
well as
Within the
next 3
months
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1000 generating
leads to
sales.
Upgrading
the current
product
range to
meet
customer
needs and
demand
Including 10-
15 new food
and
beverage
products in
the current
menu
By increasing
the number
of products
offered to the
customers
Through
innovating
and
researching
with the
organic food
products
By increasing
sales of the
new
products
Within the
next 2
months
TARGET MARKET
The Approach of STP (segmentation, targeting and Positioning) model is largely used by the
business organisations to selecting its target market.
SEGMENTATION
In segmentation, the potential customers of the company are divided into groups. The
potential customer market of the Kinfolk cafe is segmented on the basis of the demographic
and psychographic attributes of the customers (Bhasin, 2018). The customers of all age
group, who prefers to eat healthy and organic food products with a desire to contribute to
social welfare, are the potential customers of the cafe.
TARGETING
The potential customers who desire to taste new and innovate as well as organic food items
are the potential targeted customers for the business. The company has targeted the
general population and people that belong to the lower income range or more by providing
affordable organic food products to the customers. This would support the company in
gaining higher customer attention and sales along with higher profit (Hanlon, 2018).
POSITIONING
Positioning is related to how customers perceive the company or its products. The cafe has
positioned itself as a social welfare organisation that works for charity by offering
sustainable and organic food and beverages at a reasonable price.
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MARKETING STRATEGY
After setting the business objectives and target market, the next thing is to devise an
effective strategy to reach to the targeted market and achieve the set business objectives
successfully.
The current marketing strategies of the cafe are based on encouraging social services like
volunteer staff and a friendly atmosphere. However, this strategy is only helpful in
captivating the attention of the customers located nearby or bypassers. Therefore, it is
required to formulate a more specific and comprehensive marketing strategy to achieve the
predetermined objectives. The elements of the marketing mix or a marketing mix strategy
can be effectively applied to formulate an effective marketing strategy for the Kinfolk cafe
(Khan, 2014).
Since Kinfolk cafe is a service-oriented organisation the 6P’s of the marketing mix is
determined below;
[Source: Shabbir, 2015]
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PRODUCT:
In order to deal with the increasing competition and comply with the customer's
demand, it is important to upgrade the current products of the Kinfolk cafe. The company is
currently providing organic food products such as fragrant dishes, porridge yoghurt and
coffee. The company should also focus on blending contemporary food products with the
existing ones by innovating with its products. The company could offer flavoured beverages
blended with organic alcohol to capture a large number of customers.
PRICE:
In order to attract a large number of customers and improve sales, the cafe should
also focus in offering its products at an affordable cost so that the people belonging to lower
income group could also access to the products. This would also enable to improve the sales
of and profit.
PROMOTION:
For gaining the attention of a large number of customers, the company should also focus on
contemporary marketing practices by using digital technology and social media (Khan,
2014). By formulating social media pages and profile, the company can easily and effectively
promote its business among the wide range of customers within the minimum budget. Thus,
the targeted audience would be reached through social media advertising and promotion.
PLACE:
Kinfolk cafe is located in the one of the busiest city in Australia i.e. Melbourne, this the
positive point for the company. The company could also improve the interior and exteriors
to attract customers. The interior and exterior of the company must reflect its business
objective of social welfare so that the customer clearly understands the objective of the cafe
and contribute to its vision along with enjoying its outstanding services.
PEOPLE:
The key people in the cafe are its staff members (Khan, 2014). The waiting staff of the cafe is
consisting of the volunteers that promote a friendly atmosphere at the company. the
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volunteers are the main impetus of the company that supports in providing extraordinary
services to the customers with their will.
PROCESS:
The company follows an easy and friendly process of training the staff and processing food.
It is a social enterprise that runs with the purpose of charity and thus, 100% of profits from
the business are donated to the charity institutions. Moreover, it only uses seasonable food
to produce their food and focuses on sustainable business operations.
MARKETING BUDGET
For implementing the decided marketing strategy, the marketing budget of around $10,000
is prepared for the company. The breakdown of the marketing cost is presented in the
below table:
Activity Cost
Research and development of new products 1,500
Market research 1,500
Acquisition of raw material 5,000
Business promotion 2,000
Total 10,000
The above budget structure has clearly provided an overview of the required cost for
achieving the business objectives of the cafe. The project is planned to be completed within
the set time period of 4 months.
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CONCLUSION
The developed marketing strategy and plan for the Kinfolk cafe would support the
organisation in attracting a large number of customers towards the company to earn higher
profit and contribute to the development of society. The solution to the key business issues
and problem affecting the business of the cafe are identified and analysed so that the
company can gain success in business. The developed SMART goals would support the
organisation in improving its current position in the market by improving sales, upgrading
products and reaching to the larger customers base through the use of social media. The
marketing mix elements has supported in formulating systematic business strategies to
capture the target market and achieve ultimate business objectives of the company.
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REFERENCES
 Bhasin, H., 2018. 4 types of Market segmentation and how to segment with them?.
Online available at https://www.marketing91.com/4-types-market-segmentation-
segment/ last accessed on 21st May 2018.
 Hanlon, A., 2018. The segmentation, targeting and positioning model. Online
available at https://www.smartinsights.com/digital-marketing-strategy/customer-
segmentation-targeting/segmentation-targeting-and-positioning/ last accessed on
21st May 2018.
 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.
 Kinfolk, 2019. About Us. Online available at http://kinfolk.org.au/ last accessed on
21st May 2018.
 Shabbir, 2015. GSB-06: Place & Process – 6P’s of Marketing mix | Part 1. Online
available at http://www.gasstationbusiness101.com/gsb06-place-process-6ps-of-
marketing-mix-part-1/ last accessed on 21st May 2018.
 Woodruff, J., 2019. Example of a Smart Objective for a Marketing Plan. Online
available at https://smallbusiness.chron.com/example-smart-objective-marketing-
plan-11290.html last accessed on 21st May 2018.
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