Analysis of Market Trends and CoffeeVille Business Performance Report

This report analyzes the market trends impacting CoffeeVille, a Melbourne-based cafe, covering various aspects of its business and marketing strategies. The report delves into statistical concepts such as normal distribution, probability sampling, correlation, customer lifetime value, and measures of dispersion to interpret market data effectively. It examines CoffeeVille's strategic objectives, marketing activities, and overall performance, including its marketing mix, promotional mediums, and customer experience. The analysis includes an overview of CoffeeVille's operations, the identification of information sources for market trend analysis, and an assessment of its marketing plan. Specific techniques like the Delphi technique, RFM analysis, and the use of statistical tools like XLSTAT and SPSS are also explored. The report also addresses legal and ethical considerations in marketing, such as electronic messages, social media comments, and advertising regulations, providing a comprehensive view of CoffeeVille's market position and future opportunities.

Interpret Market
Trends

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Question1.....................................................................................................................................1
Question 2....................................................................................................................................2
Question 3....................................................................................................................................2
Question 4....................................................................................................................................2
Question 5....................................................................................................................................3
Question 6....................................................................................................................................3
Question 7....................................................................................................................................3
Question 8....................................................................................................................................3
Question 9....................................................................................................................................4
Question 10..................................................................................................................................4
Question 11..................................................................................................................................4
Question 12..................................................................................................................................4
TASK 2............................................................................................................................................5
1. Overview of Strategic objectives, marketing and overall business performance of
CoffeeVille...................................................................................................................................5
2. Identification of sources of information which could be used to identify market trends and
developments...............................................................................................................................6
3. Analysis of different aspects in context of CoffeeVille...........................................................7
4. Market Trends & developments...............................................................................................8
5. Central Tendency.....................................................................................................................9
6. Review of marketing plan........................................................................................................9
7. Information Sources...............................................................................................................10
8. Qualitative Analysis...............................................................................................................11
9. Marketing Needs....................................................................................................................12
TASK 3..........................................................................................................................................12
Covered under PPT....................................................................................................................12
CONCLUSION..............................................................................................................................12

REFERENCES..............................................................................................................................13

INTRODUCTION
Market trend can be defined as perceived tendency of financial market so that it can
move in a particular direction over time. By following all such types of trends business entities
can attain long term success as it helps to meet expectations of clients. In order to interpret them
the analysers are required to conduct detailed study of the company so that market data could be
studied accurately (Edwards, Magee and Bassetti, 2018). The organisation which is selected for
this report is CoffeeVille. It is one of famous cafes which are operating in Melbourne. It was
founded by Emma and Rufus Belcastran. This report is based upon analysis of market trends in
the industry. For this purpose, this assignment covers various topics such as discussion of
different statistical terms such as normal distribution, probability and non probability sampling,
correlation etc. Along with this assessment of market trends of CoffeeVille is also covered under
this report.
TASK 1
Question1
Conversion rate leads to sales: The rate which reflects percentage of customers who are
taking desired actions is known as conversion rate. It is very important for business entities as it
helps to reduce the customer acquisition cost by enhancing the value from existing market place
or clients.
Measures of central tendency: These are the numbers which are mainly used to
represent a middle number of a data series. There are three different types of it mean, mode and
median. All of them are mainly used in statistics and very important with the help of it
representative value could be figured out (Okonkwo, 2016).
Net response rate: It can be defined as the measurement of the amount of individuals
who have responded on a specific call of action. It is very important for the organisations to
analyse action of customers on the marketing activities which are conducted by the company for
the purpose of attracting large number of clients.
Sampling: It is process of taking sample for specific processes in statistical analysis. The
observations are taken in it from a large size of population. It is important because it helps to find
representative distributions so that bias could be ignored. It also helps to get near accurate
outcomes in limited time period.
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Time series analysis: It can be defined as a technique which is used in statistical analysis
to deal with time series information or a specific trend. It is vital to conduct it as it can help to
identify the forces which are leading a trend in a specific time series.
Response models: It can be defined as the set of different models which are used by
marketers in business entities to determine the way in which clients collectively or individually
responded to the market activities. Its significance for companies is that it helps to identify the
way in which competitors interact with marketing efforts (Vogel, 2018).
Question 2
Normal distributions: It is a probability distribution method which is symmetric about
the mean which shows that data near mean is far or frequent from the data. If it is shown on a
graph then it will be reflected in the form of bell. It is useful statistical concept which fits in
different natural phenomena such as IQ scores, heights, blood pressure and measurement error.
There are two different names of it which are as follows:
 Gaussian Distribution
 Bell Curve
Question 3
In order to calculate customer lifetime value first of all average purchase value is
calculated which is multiplied by average purchase frequency rate. It will result in customer
value. The resulted amount is multiplied with customer lifespan to calculate customer lifetime
value. This information is mainly used in such businesses which are relationship focused. Most
of the banking and insurance service companies use it to sale their products (Blankespoor,
deHaan and Zhu, 2018).
Question 4
Measure of dispersion is used to analyse dispersed or spread out level of data values.
There are two main measures of it which are standard deviation and range. Both of them shows
difference between data value and mean and greatest and least data values.
Example: Data series is 4, 6, 9, 3, 7. In this series greatest number is 9 and lowest
number is 3. So the range is 9 – 3 = 6
Standard deviation's formula= √ ∑ x – mean 2 / N
Mean = 4 + 6 + 9 + 3 + 7 / 5
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Mean = 5.8
Standard deviation = √ 29 – (5.8)2 / 5
= √ 29 – 6.73
= √ 22.87
= 4.72
Question 5
Delphi technique: It is a method which is mainly used for forecasting purposes and it is
based upon the outcomes which are received from multiple rounds of questionnaires which are
sent to panel of experts. In order to find answers for different questions various rounds are
conducted and questionnaires are provided to the group of experts. With the help of this
technique, responses of all the experts are aggregated and shared with all the members of group.
Main purpose of using it is to identify the point of extent where large number of experts agree
about an issue (Eiling and Gerard, 2014).
Question 6
Probability sampling: It can be defined as a technique of sampling which is used to
select a sample from a large population with the help of a theory of probability. For this purpose
random selection is used.
Non probability sampling: It is a type of sampling technique in which sample for the
research purpose are collected without giving equal chance to the individuals in the population to
get selected.
Question 7
Net present value of a customer: It can be defined as the current value of future
revenues from which all the today's cost of future expenses which are related to them are
deducted. Major element which is used to calculate it is discounted rate.
Question 8
Correlation: It is a technique which is used in statistical analysis for the purpose of
determining relationship between two different variables. These are dependent and independent.
When both of them moves in same direction then it is known as positive correlation. If one
variable is increasing and another is decreasing or both are leading in opposite directions then it
is known as negative correlation (Crane, Kawashima and Kawasaki, 2016).
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Question 9
XLSTAT: It can be defined as statistical solution which is mainly used in Microsoft
Excel. It is very beneficial for individuals to enhance their analytical capabilities in Excel by
using it as it offers different types of functions such as SUM, AVERAGE etc. Some specific
features of it are as follows:
 With the help of it mathematical problems could be solved easily.
 It helps to enhance analytical capabilities and reduce burden of work by facilitating
individuals to complete critical work in less time.
Question 10
SPSS (Statistical Package for Social Science): It can be defined as a technique which is
used in statistical analysis for different purposes such as survey, assessment of competitors,
conducting market research. Some of its specific features are described below:
 It is very easy technique which could be learned and used by individuals easily.
 It helps in effective data management (Hollister and Smith, 2014).
Question 11
RFM (Recency, Frequency, Monetary) analysis: It is a type of analysis which is
mainly used in marketing to identify best customers by analysing three different aspects of their
purchasing behaviour. These are how recently they have purchased a product, how frequently
they but it and what amount is paid by them for it. The RFM score is used by companies to find
customer's value for the organisation whether it is high or low.
Question 12
Electronic messages: It can be defined as a communication strategy which helps to
conduct two way communication between two parties. Commercial electronic messages are
considered as spam messages which are sent to recipients by companies to sale their products. It
is covered by Private and Electronic Communications Regulations which are released by ICO in
Australia.
Social media: Yes, Company A is accountable for these comments even though these are
made by someone else because the company have not deleted it from its page willingly. It can
leave negative impact upon its market image and customer base. It is covered by social media
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law as it guides companies to share information at different places (Dube, Lester and Reich,
2016).
Advertising: The betting Odds which was played by Radio Station X is not permitted
because it is an illegal activity to show such types of adverts between the match. Code of practice
can be defined as a document which covers different rules and regulations which are related to
compliance of legal legislations. The code of practice which is implied on current scenario is
Australian Association of National Advertisers (AANA) which is a complete guide for marketing
and advertising activities (AANA, 2019).
Code of ethics: Australian Association of National Advertisers Code of Ethics is a self
regulatory system which is mainly related to marketing and advertising communication. It guides
all the companies and other mediators such as radio channels to share only legal content for
promotional activities. Main objective of it is to make sure that the processes which are used for
the purpose of marketing should be legal, truthful and decent and should be prepared according
to sense of obligation. It is mainly underpinned by a transparent, robust and transparent
grievance handling system which is controlled and monitored by AD standards (Bloome, 2014).
TASK 2
1. Overview of Strategic objectives, marketing and overall business performance of CoffeeVille
CoffeeVille is a coffee shop which is owned by two people Rufus and Emma Belcastran.
Most of the marketing activities are managed by Emma and marketing research related functions
are performed by Rufus. Currently its employee strength is around 5 to 8 full time and casual
staff members. There are various objectives of the organisation. All of them are as follows:
 To become a superior coffee experience provider so that revenues could be increased.
 To enhance customer traffic between 250 to 300 per day in order to increase sales.
 Conduct promotional activities so that brand recognition could be enhanced.
 To establish goodwill in the market so that people rate it between 7 to 10 (Baker,
Grinstein and Harmancioglu, 2016).
Marketing activities which are conducted by CoffeeVille provides various benefits to it
by enhancing awareness regarding it among customers. Its marketing mix states that price of all
the varieties of food which is offered by it is very low which helps it to attract large number of
customers. 70% of the business is generated with the help of takeaway orders which is a result of
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its effective marketing activities. In order to promote itself superior customer experience is
delivered by it to its clients. There are various mediums which are used for promotional
activities. These are advertising in local magazines, encouraging articles, direct mail to local
businesses etc. Over all performance of the organisation is very good as the marketing plan
shows that the staff members at Cafe try to render best services to the clients so that they could
be retained for a long period.
2. Identification of sources of information which could be used to identify market trends and
developments
In order to source information regarding market trends in food sector various options
could be used. All of them are as follows:
Google: It is one of the best and cheap way which could be used by CoffeeVille to be
aware of market trends. With the help of it information regarding technological enhancement and
potential changes in governmental policies (Martinez, 2014).
Trade magazines and newsletters: There are various trending trade magazines which
are mainly published to aware business entities regarding latest trends in the market. Daily news
letter is also a good option which could be used to be aware of market trends. Both these
alternatives could be used by CoffeeVille to gather information regarding latest trends such as
demographic and economic changes.
Looking at own target audience and noticing their buying habits: All the clients and
their buying habits could be analysed by CoffeeVille to gather information regarding continuous
changes in their taste and preferences. With the help of it information regarding market trends
such as social and cultural aspects could be collected easily.
Looking at the trending topics at social media websites: Social media is also a good
option to gather information related to latest market trends such as technological enhancement.
CoffeeVille can look at the topics which are trending on such websites it can help to make
changes in business activities according to it so that long term business goals could be attained.
Trend spotting blogs: All the business entities such as CoffeeVille can create their own
blogs or check other trending blogs to gather information regarding current market trends such as
environmental trends.
All the above described sources could be used to gather information regarding
competitors. Organisations which are operating business in same sector use same sources to
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promote their business. All the sources which are used to collect information regarding market
trends are beneficial for the identification of competitors. Some of them for CoffeeVille are
Zelda's, Cafe Verdi etc.
3. Analysis of different aspects in context of CoffeeVille
There are various market trends which are required to be analysed by CoffeeVille in
order to execute all its operational activities in appropriate manner. By focusing on all of them
the organisation will be able to reach all its long as well as short term business goals. All the
trends are as follows:
Economic trends: It can be defined as the direction in which economy of a country is
moving. In order to run all the operational activities smoothly it is very important for CoffeeVille
to be aware of all of them. Some of their examples are changes in taxes, tariffs and trade rates,
cost pressures. If the managers of the coffee shop are not aware of them then it can leave
negative impact upon functionality of whole business (Migliore, Schifani and Cembalo, 2015).
In CoffeeVille all the employees use different sources such as Google, blogs, newsletters
to gather information of them. With the help of it all the business executional activities are
performed appropriately.
Demographic trends: All the trends which are changing due to alteration in gender, age,
income level, education level etc. are known as demographic trends. Currently taste and
preferences of customers are changing regarding the items which are consumed by them due to
enhanced standard of living.
In order to be aware of such changes in CoffeeVille managers analysing buying
behaviour of customers who are visiting the cafe. It helps to offer them such products that they
are willing to buy.
Changes in technology: technology changes with time and also affect preferences of
clients. Some of its examples are self ordering services, robotics etc. All the employees in
CoffeeVille are using social media websites to be aware of such trends.
It helps to fulfil all the requirements of customers and motivate them to visit CoffeeVille
to spend their quality time (Bellon and Penvern, 2014).
Environmental trends: For all the business entities it is very important to comply with
environment trends as it helps to establish a positive market image. In food sector these are using
eco friendly cutlery, ignoring plastics etc. are current trends.
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In CoffeeVille managers use different sources such as trade magazines to be aware of
them in order to establish a good image in the mind of customers and legal authorities.
Social and cultural trends: All such types of trends which are related to belief, customs
and practices of customers are known as social trends. In order to increase number of clients it is
vital for CoffeeVille to keep updated regarding them.
There are various sources which are used in CoffeeVille to collect information regarding
latest social and cultural trends. These are looking at buying behaviour of clients. For example,
clients love to watch videos of cooking to analyse that the food which is consumed by them is
hygienic or not. It is a social trend which is focused by CoffeeVille to enhance overall
performance of business.
4. Market Trends & developments
The market trends of the cafe is oriented with the requirement of cater and far for a
refined and friendly and socially aware for customers. In present time cafe become more
Sophisticated in a number of different ways -
 Coffee and food quality – As per the market trend it has been analysed that to make
coffee they preference to high quality ingredients to increase number of customers in
broad way. They are providing fresh, quality, coffee, pastry etc. Urban consumers focus
on the individual likes and dislikes and develop their taste through good quality
ingredients. Furthermore, mostly consumers focus on the voice views on coffee and food
quality to influence the peer's behaviours (Tresidder, 2015).
 Health awareness – In present time mostly consumers focus on their health and find out
seek healthy options to intensify their health and appearance to expression of active life
styles. Additionally, now consumer aware for the health and focus on food ierances. The
consumer focused on the presented choice such as – lactose free, gluten free and
vegetarian.
 Speed - Customers learn to understand pace of service as breakfast and meal periods are
becoming more space-pressured.
 Ethical Practices - Buyers will specifically look for and patronize businesses with reliable
moral procedures
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 Access to information on products, services, promotions, discounts, company practices
and policies - There are providing all information to customers that they want through
internet like websites and social media.
 Distrust or scepticism towards more traditional, wide-casting media such as newspapers,
television and radio – Electronic narrow casting delivering promotional messages with
the help of electronic social media and word of mouth to particular teams of users that
performs in effective manners. These manners are popular, effective, cost effective
system of reaching particular products as well as services with the help of positive
qualities to electronic social media like trustiness, sensitiveness, directness and chilliness
(Scrinis, 2016) .
5. Central Tendency
Range of age
20
30
40
50
60
Mean 40
Median 40
6. Review of marketing plan
There are analysing of the marketing plan of Coffee Ville on the basis of the company of
company in the current market. It is analysed that the marketing plan of the company developed
to assure about the different marketing activities that are connected with strategic objectives of
company to meet with the mission, vision and values. After situation analysis it is getting that
market characteristics and key strength and weakness are connected with the demand of
customers.
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