Cafe Art Marketing Plan: Expansion Strategy to Melbourne, Australia

This marketing plan outlines Cafe Art's strategy for expanding its social venture into Melbourne, Australia. It includes an executive summary, situational analysis (SWOT, customer, PEST, collaborator, and competitor analysis), market analysis and strategies (segmentation, target market, and positioning), tactical plans (product, place, and price), budget (marketing and promotional), break-even point analysis, and sales forecast. The plan aims to increase market share, provide employment, coordinate with advertising consultants, promote a healthy lifestyle, gain recognition, enhance revenue for social welfare activities, and cover a wide range of consumers. It focuses on targeting health-conscious individuals and the younger generation, leveraging Australia's coffee culture and favorable external environment. The plan also addresses the competitive landscape and outlines how Cafe Art will differentiate itself through innovative art and a focus on social impact.

Running Head: MARKETING 0
Marketing
(Student Name)

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Executive Summary
Café Art is one of the Australian social ventures with the mission to connect the individual
affected by homelessness with the wider community through its art. Café Art Australia was
founded in August 2015. It is a non for Profit Company as well as all proceeds of calendar as
well as art sales are put back into the homeless community through facilitating photography
competition as well as exhibitions. The café is planning to expand its business in place other than
Sydney and are intending to broaden the horizons to Melbourne in the future. The café will target
health conscious people and young generation to make their life healthy. The revenue earn from
the café will be used for the social welfare purpose that will make them successful in helping
others. The consumers of Australia are coffee lover that will support the café to target such
people. Moreover, the external environment of the country is also favorable that provide new
market to the Café Art in an effective manner.

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Table of Contents
Executive Summary.........................................................................................................................2
Marketing Plan Objective................................................................................................................2
Situational Analysis.........................................................................................................................2
SWOT Analysis of Café..............................................................................................................2
Customer Analysis.......................................................................................................................3
PEST Analysis.............................................................................................................................3
Collaborators Analysis.................................................................................................................4
Competitors..................................................................................................................................4
Market Analysis and Strategies.......................................................................................................4
Segmentation................................................................................................................................4
Target Market...............................................................................................................................5
Positioning...................................................................................................................................5
Tactical Plans...................................................................................................................................5
Budget..............................................................................................................................................6
Marketing Budget........................................................................................................................6
Promotional Budget Plan (In AUD).............................................................................................7
Break-even point..........................................................................................................................8
Sale Forecast................................................................................................................................8
Conclusion.....................................................................................................................................10

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References......................................................................................................................................11

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Marketing Plan Objective
Marketing plan play a vital role in expanding the business in the market. Café Art will adopt the
marketing plan to expand its business in Melbourne. There are certain objectives of marketing
plan that is planning to be adopted by Café Art to expand its business in new market. Such
objectives are explained below:
 The main objective of Café Art is to expand its share in other market. It will help the café
to spread awareness about the existence of the café to the maximum individuals.
 Provide maximum number of employment to the required people in the market that help
in enhancing the standard of living of the individual in an effective manner.
 Contact as well as Coordinating with the advertisement consultant for two months to help
in analyzing the required as well as needs of the consumers (Piercy and Lane, 2015)
 Provide healthy lifestyle to the group of individual that support them in living in healthy
environment with healthy diet
 Become chooses as one of the “Best New Innovative Coffee” by the native restaurants
guide
 To enhance the source of revenue that will help in spending money more efficiently in
the social welfare activities (Saura, Palos-Sánchez and Cerdá Suárez, 2017)
 To cover maximum range of consumers for providing healthy food to them as well as
help in providing other than food services to them efficiently.
 The situational analysis will help the café to analyze the level of competition in the
market and the manner they can spread awareness about of its product more efficiently
and effectively (Cant, 2016).
Situational Analysis
SWOT Analysis of Café
Strengths Weaknesses
 Café Art offers its services in an
innovative manner. the café has unique
 The Café Art is required to convince
with the consumers to purchase its art.

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style as well as approaches to target its
consumers that make it one of the
biggest strength to them
 It is majorly known by most of the café
and get support by them more
efficiently
 It is majorly setup for helping others
that motivate other individual to make
anticipation in the activities of Café Art
(Fisher, 2017).
A sometimes consumer does not
understand the root cause of the Café
Art.
 Café Art majorly face issue in
managing the team members and raise
funds for their activities (Café Art,
2019).
Opportunities Threats
 Rate of tax in Australia is very low as
well as the government support for
NGOs that will support the café to
expand its business in new market
 The population of Australia is addicted
for coffee as well as changes its mind
towards healthy lifestyle therefore; it
will help the café to expand its business
in café field.
 As the price of Café Art’s will be the
new in the market therefore, that will
create issue for the café to attract
maximum level of consumers.
 Café Art is NPO Company; the main
aim of the café is providing services
rather than earning profit. Therefore, it
will create an issue for the café to run
over the cost that my cause loss to the
café (Kickstarter, 2019).
Customer Analysis
Consumers play an essential role in running the business. The people in Australia are keen for
coffee. They are extremely attracted towards the roots and the taste of coffee. It has been
analyzed that the consumption rate of coffee in Australia is high as comparison to the other
countries (Knox, 2016). They are keen to know about the foundation of the coffee beans as well
as interest of the consumers towards such product that is utilized in the tactical plan of most of

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the cafes. Around 20% of the individuals spend significantly by eating out. The consumers are
also switching towards its healthy lifestyle. They have adopted various methods to keep
themselves healthy in such junk food environment. The young generation also attracted toward
the low price product in Australia that increase completion in the market (Huse et al., 2016).
PEST Analysis
Political: the operation of Café Art is greatly affected by the government laws as well as
regulation of of Australia. The government of Australia has imposed various rules and regulation
to remove unfair competition in the market to control competitions and the consumers can able
to provide product at reasonable prices (Colic-Peisker, Mikola and Dekker, 2016).
Economic Factors: The growth of economic in Australia is in better condition a comparison to
the most of other OECD nations. The GDP of the country is higher than other developed
countries in the recent scenario. Furthermore, the rate of interest, rate of exchanges and the level
of employment in such country is high that will support café to run its business efficiently (Reilly
et al., 2018).
Sociocultural Factors: while analyzing the recent scenario, majority of the people are changing
its lifestyle patterns as most of the people are getting more conscious towards their eating habits
as well as majorly prefer healthy and well-balanced diet. Undoubtedly, the population of
Australia is keen for coffee as they are very dedicated towards the taste of the coffee (Howell
and Bardach, 2018).
Technological Factors: the new technology has led to the creation of the new product
efficiently. Therefore, the trend of online shopping is gaining the immense importance as most of
the consumer are using internet platform to order eatable products. It creates new market to the
company to target their consumers more efficiently and effectively (Millard, Baldassar and
Wilding, 2018).
Collaborators Analysis
Suppliers and distributors play a vital role in the business. While analyzing the collaborators in
Australia it can be found hat he bargaining power of collaborators is low due to high level of

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competition in the market. The number of suppliers in such industry is high that enhance the
level of completion in the market in an effective and efficient manner. Therefore, it would be
easy for the café to ties up and contact with the suppliers and can able to control over the cost of
raw material in an effective manner (Andersson, Ekstam, and Nilsson, 2017).
Competitors
The level of competition in Australia is high. There are more than 40,000 cafes as well as
restaurants that are operating in Australia. Since, there were only 36,500 of such business in the
year 2013. It represents tremendous growth in the food and beverages industry in Australia. The
industry has grown with 25% over the five year. Therefore, Australia involves great level of
competition that can create challenge for the Café Art. The huge demand as well as craving of
the customers for food can attract new restaurants to entre in such market more effectively (Lee,
Sardeshmukh and Hallak, 2016).
Market Analysis and Strategies
Segmentation
While entering in the new market, the Café Art is required to analyze the nature and behavior of
the individual in such market to target them more efficiently. The market is divided into different
segment. It is required for the café to analyze such segment to understand the behavior of
consumers as they are explained in below points:
Geographical
The local people of Melbourne mostly prefer food with full of nutrition as well as with full of
taste in an effective manner. The Melbourne is considered as one of the destination place for
tourist and working environment. Therefore, the café will be open in approachable area.
Demographic
The economic condition of the Melbourne is good that help in enhancing the purchasing power
of the people in Melbourne. Working people are more in Melbourne that generate great spending

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power of the consumers. The average income of the people is $25000 to $50000 (Kuester,
Konya-Baumbach and Schuhmacher, 2018).
Behavioral
The food behavior of the people in Melbourne is habit of healthy and tasty food. The people of
Melbourne are also participative in welfare activities that make the environment healthier. The
consumers also have a behavior of comparing prices. They majorly prefer low cost product or
services.
Psychographic
The eating trend in Australia is the habit of healthy consumption. The salty, sugar as well as
plump is highly switched by the vigorous and bold flavors in Melbourne (Grimmer, Kilburn and
Miles, 2016).
Target Market
According to the analysis of different segment of the city, the café will target all range of
consumers to deliver healthy food. The main target of the NGO is to deliver healthy life to the
consumers and invest the amount in welfare activities. The café will target all young and old
generation for its product. Those who are health conscious are welcomed by the Café. Poor
people who face challenges in surviving will be the main target audience for the Café.
Positioning
In order to convince the consumers for social activities, the café will introduce painting and
photography program in the café and promote them in the market. While attending the program,
the consumers will ale to get know about the main theme of the café and can able to support
them efficiently. The consumers will be provided donation awards and rewards that will motivate
them. The theme of the café will be healthy food and beverages. The main theme of the Café Art
will be innovative art that will be displayed in the wall of the café (Banerjee, 2017).

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Tactical Plans
Product
The café will be new in the market. They will cover coffee related products in its café. Its main
focus should be on healthy food. Therefore, they can offer healthy burger and snacks that will be
full of nutrition and art that will represent the theme of the café efficiently and efficiently.
Variety of coffee will be covered in the café such as café mocha, espresso, cappuccino, shakes,
and all type of juices, moose and smoothie that can attract maximum number of consumers in an
effective and efficient manner (Takata, 2016).
Place
The café will be opened at small level due to shortage of funds and donation. Therefore, the
place should not be that much popular but it can be near to the rush area. It will gain the attention
of consumers towards the café and can able to spread awareness about the café more efficiently
and effectively. Near shopping mall, the café will be situated that will support the café to expand
its business and entre in the new market with new concept in an innovative manner (Goi, 2009).
Price
Price plays a vital role in the success of growth of business. The Café Art is for the purpose of
social welfare. Therefore, the price of the products will be not very high due to the reason; the
main reason for set up such café is raising fund for the social activities. The café will also earn
through selling art and craft in the café. They will exhibit the painting on the wall and provoke
consumers to purchase that painting. The prices of the painting will be also nominal that will
help the café to raise the funds more efficiently and effectively from the market. Thus, the café
will maintain low pricing strategy in its business to raise maximum funds from the market
Promotion
Promotion is one of the essential platforms to spread awareness about the cafe. Café Art will
have no such huge amount that can be invested in the promotional activities. Therefore, the cafe
will majorly adopt the source of the social media marketing to control over the cost and can
spread awareness about the café more efficiently. The café will promote its page in Facebook

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and Instagram by sharing videos and pictures of the social activities that is already done by the
café. Arranging program will be also innovative manner to spread awareness about the product.
The café will also adopt traditional method to promote its café in the new market (Wu and Li,
2018)
Budget
Marketing Budget
Particulars 1st 2nd 3rd
Direct marketing 13000 12000 9000
Sales 9000 10000 11000
Traditional
advertisement
4000 5000 5000
Social Media
marketing
4000 8000 8500
Total 30,000 35,000 33,500
Promotional Budget Plan (In AUD)
Item Price(excludin
g VAT)
VAT Price
(including
Total
Value

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VAT)
Social media 1500 150.00 1650 1650
Search engine
optimization 500 50.00 550 550
Website 600 60.00 660 660
Flyers 900 90.00 990 990
E-mail marketing 500 50.00 550 550
Retail advertising 400 40.00 440 440
Banners 1000 100.00 1100 1100
TOTAL 5400 540 5,940 5,940
Break-even point
Cost-Volume-Profit Relationships -
Breakeven

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Per Unit
Amounts
Selling price $ 120.00
Variable costs $ 45.00
Contribution margin $ 50.00
Total fixed costs* $ 400,000.00
Breakeven in units 8000.00
Breakeven in dollars $ 960,000.00
Conclusion
From the above analysis it can be concluded marketing strategy play a vital role for the business.
Most of the companies have adopted different and innovative marketing strategies that made
them competitive in the market. One of the NGO, Café Art has settled its business in Sydney.
The café promote painting and pictures that is showcase in cafes. The amount raise from such
painting is invested in the social activities that are the major concern for the café. The Café Art is
planning to expand its business in the new market of Australia such a Melbourne. It is effective
market to expand its business. The Café Art will expand its business in the form of opening new
café in the new market. Café Art will open its own café to represent its photography and
painting. In the café the café will provide variety of products to the consumers that make them
stay in the café in an effective manner. However, the Café Art will face challenge in raising fund

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therefore; they will adopt normal promotional strategies to target its consumers. Different
programs will be arranged in the café o spread awareness about the café. The café will offer
healthy products to the consumers to make them healthy as well as tasty food to them. It is the
main focus of the café to target maximum consumer to help the society at greater level.

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nutrition, 19(17), pp.3142-3145.

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