Expansion Strategy and Marketing Mix for Coffee Shop in Spain

This report presents a comprehensive analysis of Marvin & Smith's Coffee Shop's expansion plan into Spain. It begins with an introduction to business practices and marketing strategies, emphasizing the importance of marketing mix elements (Product, Price, Promotion, and Place). The report justifies the expansion by examining Spain's economic growth, unemployment rates, and logistical considerations, highlighting the country's attractiveness for new businesses. It addresses ethical considerations and structural challenges related to expansion, such as adapting to local tastes and promoting the coffee shop effectively. The report details the application of marketing mix strategies tailored to the Spanish market, including product adaptation, competitive pricing, promotional activities, and location selection. It also discusses the impact of organizational culture on business expansion and the need to adapt to local consumer preferences. Finally, the report touches upon the importance of financial information in decision-making, evaluating the impact of profitability and liquidity on business strategies. The report concludes by summarizing key findings and recommendations for successful expansion. The report is designed for students to study the application of business practices to real-world scenarios.

BUSINESS ESSENTIALS

Executive Summary
Business organizations can undergo continuous revenue generation as well as growth
with proper business management and development practices. Marketing of products
as well as well as the development of marketing plan contributes towards business
development practices. Marketing mix strategies are developed as well as directed in a
way towards substantial growth as well as the development associated towards the
business organization. Among all other countries in Europe, Spain stands out to the
most effective one in terms of GDP as well as other statistics. Statistical research
indicates that the Spain economy it undertook a major expansion in the previous period
which makes Spain a favorable location for business growth and development

Table of Contents
Introduction ...................................................................................................................................4
Research as well as decision regarding expansion Marvin and Smith's coffee shop in the
European Union ............................................................................................................................4
Justification ...................................................................................................................................6
Structural challenge of expansion ................................................................................................7
Marketing mix strategy in relation to the coffee shop expansion plan.........................................8
Organization Culture .....................................................................................................................9
Application of financial information towards evaluation of impacts of profitability and liquidity on
decisions making.........................................................................................................................10
Conclusion ..................................................................................................................................11
Reference List:............................................................................................................................12

Introduction
Application, as well as development of various business practices, plays an important
role in appropriate business functioning. Business organisations can undergo
continuous revenue generation as well as growth with proper business management
and development practices. Marketing of products as well as well as the development of
marketing plan contribute towards business development practices. Marketing mix
strategies are developed as well as directed in a way towards substantial growth as well
as the development associated towards the business organisation. Strategies
associated with marketing mix consists certain sets of actions, tactics or certain specific
guidelines that a company uses regarding promotion of its brand or products associated
with the targeted market.
Concepts associated with marketing mix consists of 4Ps, which typically forms a typical
marketing mix plan. Marketing mix strategy includes Product, Price, Promotion, and
Place. However, in recent scenario concepts of marketing mix fundamentals consists of
several other Ps which includes Packaging, Positioning, People and even Politics as
vital mix elements. This study lays sufficient emphasis towards identification as well as
an implementation of marketing mix strategies towards business development
associated with Marvin & Smith's Coffee Shops in the Malaga,Spain . This study lays
sufficient emphasis as well as the contribution towards marketing fundamentals as well
as business expansion.
Research as well as decision regarding expansion Marvin and Smith's
coffee shop in the European Union
It is observed from the case study that Marvin and Smith’s coffee shop has established
itself strongly in terms of promotion of strong fair trade and equality. Since its opening
and establishment, it has successfully opened two coffee shops additional in as well as
around London. Hank and Patty have decided to focus on an overseas expansion plan.
Bagautdinova et al. (2014, p.75) mentioned that Expansion of business is necessary for
continuous profit as well as revenue generation along with long-term business.

Figure 1: Economic growth rate of Spain
(Source: Pictet WM-AA&MR , Datastream 2017 )
Studies, as well as research on various factors, indicate that Spain in comparison with
all other European Union emerges as the good marketplace for new business. Good as
well as developed business in Spain is contributing towards the attraction of business
markets. It also increases sufficient amount of scope for new and emerging markets.
The most important fact associated with business development in Spain is that it
requires young as well as hardworking population. As per research as well as statistical
figures, it is observed that economic growth in Spain can be affected negatively as a
result of the ageing population. As per forecast the percentage of an aging population is
estimated to rise to 32.3% in 2050, which will seriously reduce as well as contract the
working age population by around 15.2 million. As a result, Spain will continuously
require young people as well as the entrepreneur to carry out its business operations. It
is also worth noting that Spain has highest employment rate in European Union

Figure 2: Unemployment rate in Spain
(Source: Tadeineconomics.com , 2017)
In due consideration with figure 2, it is observed that unemployment rate in Spain is
undergoing continuous reduction which implies sufficient scope as well as opportunities
for new markets as well as business. Growth of business is associated with
employment. Business cannot undergo proper growth without money in the hands of its
citizen, which comes from employment
Justification
Logistical considerations
Research as well as analysis of various factors contribution as well as increment of
GDP mainly came from net trade (0.4 percentage points) and fixed investment (0.1
percentage points). Also, changes insufficient amount of inventories added 0.4
percentage points to growth
Statistical research, as well as figures, clearly indicate that quarter wise expansion as
well as development rose to about 1.6 percent which is much faster in comparison to
0.5 percent in June. The imports in Spain went up at a slower rate at 0.9 percent (from
2.4 percent). The increments associated with the Gross capital fixed formation is rising
and went up to about 0.6 percent, following a 1.7 percent in the June quarter ,

supported by sufficient amount of investment in machinery as well as in equipment (1.5
percent from 3.3 percent) and that in other products (0.6 percent from 0.9 percent).
Meantime, construction investment contracted by 0.4 percent, after a 0.5 percent rise in
Q2. As per statistical research, the Spain economy has undertaken a major expansion
of 0.8 percent on first quarter in 2017, following a 0.6 percent growth in the previous
period and falling back market expectations of a 0.6 percent expansion. Results of
estimate indicate various contributions which are mainly derived from fixed investments
and trade while household consumption and government spending were stable. Study
as well as analysis of the above factors, it clearly indicates the impacts of business
growth as well as the development of business development functions.
Ethical considerations
As per research as well as statistical research on various factors the economy
associated with Spain, it undertook a major expansion of 0.8 percent. In September
quarter of 2017, following a 0.6 percent growth in the present period and defeating
market expectations of a 0.6 percent expansion. In addition to the factors appropriate
code of conducts as well as work-related ethics plays an important role in business
expansion and development. In Spain a “Code of Conduct” is followed in Spain.
Programs such as Anti-corruption programmes are established by the government of
Spain.
Li et al. (2014, p.100) commented that proposition as well as initiative towards zero
tolerance and action to corruption is strictly obeyed in all places of Spain. Epifanova et
al. (2015, p.137) mentioned that, corruption free country along with initiatives towards
the attraction of business clients. In Spain, in addition to that, public is assured of
corruption free services. Both the Code of Conduct and the Mission Statement are
followed in Spain Apart from that instruments along with Training are offered
Structural challenge of expansion
Expansion and development of Marvin and Smith's coffee shop in Spain imply more
emphasis towards Spain foods and snacks. Normally in the Malaga,Spain it mainly
deals with majority of English products. Upon its relocation to Spain, products directed
towards Spain people are necessary to be launched for gaining public attraction. In

addition to that popular products Spain will have to be taken into consideration as well .
Communication, as well as interaction with new clients and driving them towards the
coffee shop, consists of main part of a promotion of products. The promotion should be
mainly directed towards distribution of leaflets as well as pamphlet
Marketing mix strategy in relation to the coffee shop expansion plan
Review et al. (2015, p.107) commented that strategies and various programs are
associated to the marketing mix.It consists certain sets of actions, tactics or certain
specific guidelines that a company uses regarding promotion of its brand or products in
the targeted market conditions. It consists of concepts related to 4Ps, which typically
forms a typical marketing mix plan. Marketing mix strategy includes Product, Price,
Promotion, and Place.
Product
Li et al. (2014, p.100) commented that products comprise the first step associated with
marketing mix strategy. It lays as well as explains the products which are necessary to
deal with. Selection as well choice of products must be such that it is able to satisfy the
needs of the public associated with the targeted market. Expansion and development of
Marvin and Smith's coffee shop in Spain imply more emphasis towards Spain foods and
snacks. Normally in the Malaga,Spain it mainly deals with hot drinks such as tea,
cappuccino, sandwiches, and pasta. In Spain products comprising of snacks such as
such as Spätzle, Bratwurst, Bratkartoffeln and Rouladen are necessary to be launched
for gaining public attraction. In addition to that popular desserts in Spain such as Black
Forest cake, Bremer Klaben, Brenner are necessary as well.
Price
The second element of the marketing mix consists of a price. As mentioned by
Epifanova et al. (2015, p.137) price is very important as it directly influences the
profitability as well as popularity associated with the coffee shop. According to survey
as well as reports on various factors, popular coffee shops in and around Berlin are of
Oliv Café, Konditorei und Cafe Buchwald, Brotgarten and Weichardt Brot. As a result,
the owners of Marvin and Smith’s coffee shop must consider as well as identify its
competitors regarding facilities as well as prices adopted by them and fix its own price

accordingly. The pricing strategies are necessary to be followed such a way such that, it
is able to establish itself in Spain. As a result, normally a fruit salad should not exceed 2
- 3 EUR. The typical price for coffee and other beverages ranges from 2 - 3 EUR. Meat,
as well as grilled products, costs approximately 5 EUR. The pricing of products must lie
within the price range and also should comply with its location as well.
Promotion
Promotion is a part of marketing mix strategy, which mainly deals with appropriate
communication with all its new clients. Communication, as well as interaction with new
clients and driving them towards the coffee shop, consists of main part of a promotion of
products. The promotion should be mainly directed towards the distribution of leaflets as
well as pamphlets. As it is relatively new in Spain, sufficient amount of money may be
lost in an advertisement. It is necessary to develop a small and effective start
Place
The location should be chosen such a way such that, it offers sufficient amount of traffic
as well as visitors throughout the entire year. Presence as well as the existence of
similar coffee shops and its products necessary to be determined before selection of
appropriate place. The place should be selected such as nearby to an institute and
offices. Places having facilities such as public Wi-FI. Parking garage or nearer to
shopping malls. Stress as well as emphasis should be given to places having no
refreshment centers till date
Organization Culture
Song et al. (2017, p.200) illustrated that The culture, as well as the values of the
organization, plays an important role in shaping as well as the development of
organizational practices. Here, it is observed a case of Marvin and Smith's coffee shop,
run by Hank and Patty, the culture of the organization is directed towards offering best
products to the customer's Products comprising of High quality tea and herbal
products are obtained from Fair trade registered Foundations in Eastern Uganda and,
where possible. East African inspired snacks as well as products such as snacks,
pastries and cold drinks fresh mango juice is offered towards their clients and
customers. The impacts associated with expansion of business domains in Spain will

affect some of its functions. The culture of the organisation which was present in
Malaga,Spain , may not be sufficiently the same in Spain. Along with addition of
products directed towards Spain culture, the culture of the organization will undergo
sufficient amount of change. Sufficient impacts associated to culture of the organization
will be depicted. Materials as well as its food products are directed towards Spain food
culture as well as tradition. Apart from that values as well as the languages of the coffee
shop will undergo significant amount of changes Spain culture as well as tradition will
be followed in the coffee shop. In addition to that sufficient approach is directed
towards Spain languages. The culture as well as tradition of the coffee shop will face
considerable amount of changes with its expansion
Structure of management
The structure of the management plays an important role of determination as well as
representation of organizational culture as well as traditions. The coffee shop while its
services in Malaga,Spain , the management structure of the shop is likely to change.
Application of financial information towards evaluation of impacts of
profitability and liquidity on decisions making
Studying as well as due considerations of the coffee shop in Malaga,Spain lays
sufficient emphasis towards an analysis of financial as well as budgetary statements. It
is observed that total assets of the organization stands to about 113.000. The estimated
capital of the coffee shop is about 100.000. As observed from the financial statement
with emphasis on income statement on December 31 2016. It is observed that the
Gross profit of the coffee shops stands to about 208,000. The deductions associated
with its contents are namely Electricity Salaries & Wages Rent and Rates, telephone
bills as well as depreciation for payment amounts to about 181.200. The net profits
earned by the coffee shop mainly stands to 26.800. It is noted that among all expenses,
cost associated with Rents are maximum among all other expenses. Effective decision
is necessary to be taken regarding costs associated with rents of the shop is necessary
to be minimized.

Conclusion
This study lays sufficient emphasis towards planning as well as development of factors
towards expansion of the coffee shop far around the Europe. Initiative is directed
towards expansion of its business to other parts of Europe. Among all other countries
in Europe, Spain stands out to the most effective one in terms of GDP as well as other
statistics. Statistical research indicates that the Spain economy it undertook a major
expansion. Factors as well as statistics indicate the growth of Spain economy.
Continuous rate of growth will result in business development . An addition to these
factors, in Spain a “Code of Conduct” is followed. Apart from that Programs are
directed towards Anti-corruption programmers. These practices are established by the
government of Spain. Resolution as well as proposition to zero tolerance and action to
corruption is strictly obeyed in all places of Spain. Initiatives towards reduction towards
corruption will attract business from all parts of the world. The coffee shop while
expanding its branch Spain will be able to carry out business activities free from any
disturbances resulting from corruption.
Expansion of Marvin and Smith’s coffee shop in Spain implies more emphasis towards
Spain foods and snacks. Normally in Malaga, Spain it mainly deals with hot drinks such
as tea, milkshake, latte, cappuccino, sandwiches and pasta basically more emphasis
towards English products. In expansion to Spain, selection of products such as products
comprising of snacks such as such as Spätzle, Bratwurst, Bratkartoffeln and Rouladen
is necessary to be launched for gaining public attraction. In addition to that popular
desserts in Spain such as Black Forest cake, Bremer Klaben, Brenntar are necessary
as well.

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