Assessment 3: Analyzing Michael's Cafe Marketing Mix Strategy

This report provides an analysis of Michael's Cafe's marketing mix, focusing on product, pricing, place, and promotion strategies. The analysis highlights the company's failure to meet its advertising promises regarding weight loss and allergy accommodations. The report suggests changes to the marketing mix, including offering complementary products, seeking professional reviews to build customer trust, and adjusting pricing strategies to regain customer confidence. It also examines the impact of these changes on the cafe's marketing objectives and provides a budget analysis. The conclusion emphasizes the importance of a well-defined marketing mix for business success, stressing the significance of unique products, appropriate pricing, and honest promotion strategies. The report includes references to relevant marketing and business research.

Business
(Assessment 3)

INTRODUCTION
Marketing mix is a marketing plan which covers
various aspects such as product ,price place and
promotions.
The study will give various possibilities which
can help the business in improving its sales
revenues and creating a effective customer base.

Michael's Café Marketing Policy and the case study
The company has failed to comply with its promises of weight loss through their exotic coffee
bean increasing the metabolism of the of the body.
It also made promises for its products to cater for allergies like dairy-free, gluten free, nut free
etc.

Success of the advertising campaign
The advertising campaign became successful as people are becoming more health conscious.
Coffee is a very commonly used and is daily necessity of many office workers.
The advertisement successful as Cafe made promises about weight loss increasing the
metabolism of the body It attracted many office workers and health professionals due to its
weight prospects and low cost.

suggest changes to the marketing mix
Product
Cafe can sell complementary products like chocolates instead of cup to the customers which will attract special attention of
customers.
Cafe should take professionals reviews for gaining the trust of the customers for organic food as well as for products which can
cater for some allergies.
Pricing
Cafe should lower down its prices to stabilise its existence keeping in view of the down fall experienced due to the wrong promises.
Cafe should use customer based pricing approach to gain the trust of the customers.

monitor the marketing mix
Michael should lay procedures for
tracking sales response of the
customers and reviews after
launching every new marketing
campaign.
Objective of the cafe is to increase
sales and attract loyal customer
base.

changes will impact Michael's Café's marketing objectives
The change in marketing mix will make a slight effect on the desired marketing objectives of the
cafe. Complementary products will increase the costing of the coffee , but it cannot increase the
prices of the products because of the failure it has faced in past. Professional reviews will help in
gaining customer trust over the product.
Increasing the promotion channels will help n attracting new customers and will also increase
the brand awareness in the region.

budget will be required to adjust marketing mix
Month Jan Feb March April May June
sales 15000 16000 17000 18000 15000 20000
total cash inflow 15000 16000 17000 18000 15000 20000
cash outflow
rent 2000 2000 2000 2000 2000 2000
salaries 5000 5000 5500 5500 5500 5500
administration
cost 1500 1500 1000 1000 1200 2000
total cost 8500 8500 8500 8500 8700 9500
Net profit 6500 7500 8500 9500 6300 10500

CONCLUSION
Marketing mix elements have a specific importance in the success of the business . Product
should be unique and specific to have a standing in the market. Its pricing strategy should be
dependent on the positioning of the business.
Promotion give a business a new hike to the business but at the same time false promotions can
damage the business significantly. Place of the business also influence the target customers

References
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
Storey, D.J., 2016. Understanding the small business sector. Routledge.
Veblen, T., 2017. Absentee Ownership: Business Enterprise in Recent Times-The Case of
America. Routledge.