Marvin's Coffee Shop: Business Expansion and Marketing Mix in Germany

This case study analyzes the potential expansion of Marvin and Smith's coffee shop, focusing on the German market, particularly Frankfurt. The report examines various considerations, including structural, logistic, and ethical factors, to determine the feasibility of establishing a new coffee shop. It highlights Germany's strong coffee culture and tourism as key opportunities. The marketing mix, encompassing product, price, place, promotion, and positioning, is tailored to the Frankfurt market, emphasizing the use of high-quality, fair-trade coffee beans and unique services such as Wi-Fi and charging stations. The study also addresses potential implications of expansion, such as staff issues, organizational culture, and competitive advantages, while also detailing the importance of staff training, organic and fair trade products, and local events to promote business. The report concludes with a discussion of how the coffee shop can cover a wider geographical area while addressing potential challenges.

CASE STUDY ABOUT
MARVINS COFFEE SHOP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
1. Expansion of Coffee shop with its considerations..................................................................1
2.Marketing Mix of Marvens Coffee shop..................................................................................2
3. Implications could be undertaken for covering wider geographical area...............................3
REFERENCES................................................................................................................................4

INTRODUCTION
Business expansion could be done by various organization by observing its profitability,
competitive advantage and liquidity. The present report is giving brief discussion about Marvin
and Smith's coffee shop. Its location has been analysed by observing trend and per capita
consumption of coffee. It had determined opportunities with context of demand of type of coffee
with its popularity. The present report is depicting different consideration such as structural,
logistic and ethical. In the same series it had presented tailored marketing mix with context of
coffee shop in Germany, Frankfurt.
1. Expansion of Coffee shop with its considerations
Every business is dealing with different perishable and products which are consumable as
it had gained so much competition with context of its competitors and there is requirement of
appropriate management to creating dominance in its market. For establishing a unique and new
product in different place is considered as very difficult task as business plan should be attractive
and along with this capital and environment must be prevailing which could be pick by particular
business. Germany, Frankfurt is considered as best country for setting up coffee shop due to
global tourism destination among countries of Europe (Exporting coffee to Germany, 2018).
There is presence of deep culture of coffee as it had gained third position for coffee in which 1
and 2 is USA and Brazil respectively. By observing its trend it had huge consumption which is
more than water so it could be justified that it is great market for opening coffee shop with
unique taste. Coffee machine had been referred as status symbol and consumption rate is
increasing which creates benefit to coffee shops.
 Structural consideration: Germany, Franfurt is location for opening new coffee shop as
country's layout is considered as very close proximate to its neighbouring place. There is
huge probability of tourists who pass via Germany it might be meeting point for different
visitors. It had presence of the best road and speed rail network along with modernized
airport with appropriate landing spaces. So, it could make customers by offering coffee
beans from Uganda (de Almeida and Zylbersztajn, 2017, pp.45-53).
 Logistic consideration: Germany, Frankfurt had various locations which could be
accessible locations which could implement GIs location technology. It is one of the
developed country so coffee supply would be easily performed without any delay due to
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Cargo freights from Entebbe. It would be offering and environment along with East
American feel on basis of access of socket of power point for charging laptops, phones
and free Wi-Fi.
 Ethical consideration: Germany is considered as adapting fair trade along with BioFach
and Anuga trade Fairs which are situated. The coffee shop would source its raw materials
from Fair Trade Registrations Foundations in niche products. It would be ensuring about
quality of beans which creates competitive edge from its competitors. In the context of
welfare staff, values equity and various labour rights are very important for German
population (Why Germany's coffee market keeps growing, 2018).
2.Marketing Mix of Marvens Coffee shop
Marketing mix provides helps for justifying various decisions in context of price,
product, place and promotion of specific product. The expansion of coffee shop would be
considered by below stated factor:
Product: It would be reflecting about its services and products which would be offered
by coffee shop in Germany, Frankfurt. It would be providing various types of coffees such as hot
coffee, cappuccino, cold coffee with and without ice cream, beverages such as snacks which are
inspired by East African, cold drinks like fresh mango juice and pastries. They would be using
the finest beans of coffee from Gumutindo coffee as fair trade supplier in context of Uganda
which would be providing focus on farmers which are enabling in Uganda for getting an
independent income without any mediators. It would also provide unique and extra services such
as socket of charging laptops and phones and free Wi-fi. It has been specialised with beans of
coffee shop as they belong to own field so it creates safe factor for consumer. It would also
provide short board games as it would highlight inn process of recruitment.
Price: Cost of product and services would be decided as it would also follow pricing
system which is value based due to use of organic fairly sources. It could be reason for charging
more than compared to its competitors (Nakajima, 2014, p 23).
Place: Services would be offered near to malls, football pitches and shopping street as it
would attract various tourist and local people as well. It would be providing product of new
quality in specific market as various young people from that particular location would try this
product. These particular areas consist of very distinctive network of road which would not
shield delivery of supplies in harsh weather as well. It would also expand its business with
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different outlets in Germany, Frankfurt. In the same series, these areas consists of huge security
so it does not have requirement of managing risk whose outcome would tend to reduce its cost.
Positioning: The mind set of consumer would be easily set due to its unique factor of
beans which are organic and used. It would also ensure about staff which must be trained to
qualitative standard along with different opportunities of wages and development.
Packaging: It would also provide cappuccino, cold coffee in take away format also
which should be using cups and glasses which are made from product which could be use and
throw. It would not invest high on promotion as it tends to earn very small margin or losses
which might end up closing. It would be partnering to conference, seminar and various local
events such as Oktober Fair. It would be directly implementing promotion strategy like board
game event (Germany Cofee Market, 2016).
Promotion: It would promote its business by advertising it special column in newspaper,
local channel (television) of Germany, Frankfurt, social networking websites.
Process: It would be providing best staff facilities along with its consumers, because if
staff is happy then they would try to keep there customers happy.
3. Implications could be undertaken for covering wider geographical area
Staff Issue: This issue is very famous in organizations especially which are operating
globally. As its outlet is going to expand in Germany, Frankfurt so it should employee those
people who are familiar to culture but as a new organization it could not directly hire local
people because of trust and loyalty factor. There is requirement of combination of staff of local
also as it would create conflict among them. If there is presence of conflict then it would incur
liability for organization which would directly impact financial and brand image.
Organisational culture: It is considered as very important factor for any business entity
especially for coffee shops. It is directly interlinked to increment in sales as there is presence of
better culture then it would generate more sales. If culture is not maintained properly then it
would be raising conflict related to diversity.
Competitive advantage: Germany has presence of various coffee shops as it is
developed country so creating unique feature, it would be giving taste of roast coffee beans with
East African taste which might create some issues but it is demand in Germany, Frankfurt so it
also becomes a competitive advantage for its consumers.
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REFERENCES
Books and Journals
de Almeida, L. F. and Zylbersztajn, D., 2017. Key Success Factors in the Brazilian Coffee
Agrichain: Present and Future Challenges. International Journal on Food System
Dynamics. 8(1). pp.45-53.
Nakajima, T., 2014. Price Formation of Coffee Beans: New Evidence from the Japanese
Market. Research in World Economy. 5(2). p.23.
ONLINE
Exporting coffee to Germany. 2018. [Online] Available through:<https://www.cbi.eu/market-
information/coffee/germany/>
Germany Cofee Market. 2016. [Online] Available
through:<https://www.mordorintelligence.com/industry-reports/germany-coffee-market>
Why Germany's coffee market keeps growing. 2018. [Online] Available
through:<http://gcrmag.com/market-reports/view/why-germanys-coffee-market-keeps-
growing>
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