MKG701 Marketing Plan: Brewtown, Situational Analysis & Strategy

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AI Summary
This assignment provides a comprehensive marketing plan for Brewtown, a Sydney-based coffee company specializing in single-origin coffee. The plan includes a situational analysis, SWOT analysis, and PESTLE analysis to evaluate Brewtown's internal and external environments. It defines marketing goals and SMART objectives, outlines a marketing strategy with market segmentation and positioning, and discusses marketing implementation, evaluation, and control. The report also covers key marketing concepts like the marketing mix and provides recommendations for Brewtown to enhance its market position and achieve its financial goals. This student-contributed document is available on Desklib, a platform offering study tools and resources for students.
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Running head: MARKETING MANAGEMENT
Marketing management
Name of the Student
Name of the University
Author Note
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Executive summary
This assignment has been based on Brewtown that is located in Sydney and is a local
company in Australia. The company has been able to capitalize the market, as the owner
Adam Wang had researched the market where the customers preferred in having single estate
coffee. This resulted in serving the coffee according to the taste and preference of the
customers. The company changes its offerings on a weekly basis so that the consumers do not
get bored with the same products that are offered by the company. This assignment is based
on the marketing plan of the company where the internal and external environment of the
company has been evaluated. The marketing strategies that needs to be taken up by the
company has also been listed so that it can understand the use of it. The evaluation and
control of the marketing strategies has also been provided in the assignment.
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Table of Contents
Case Background.......................................................................................................................3
Situational analysis.................................................................................................................3
SWOT analysis.......................................................................................................................4
PESTLE analysis....................................................................................................................6
Market planning theory..............................................................................................................8
Concept of marketing.............................................................................................................8
Marketing mix........................................................................................................................8
Analysis of internal marketing environment..............................................................................9
Marketing goals and objectives................................................................................................10
Marketing objectives............................................................................................................10
SMART objectives...............................................................................................................11
Marketing strategy...................................................................................................................11
Market segmentation and positioning..................................................................................12
Marketing implementation.......................................................................................................12
Evaluation and control.............................................................................................................13
Conclusion................................................................................................................................13
Reference List..........................................................................................................................14
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Case Background
Brewtown is located in Sydney in Australia where the customers are served with
specialised coffee. The café has improved its offerings to the customers based on their tastes
and preferences. The owner of the café is Adam Wang and he noticed that the customers in
the region were fond of single origin coffee and started to offer them according to their
liking. This led to the opening of the company in the year 2014 in Sydney so that it can serve
the customers in a proper manner, which will help them in increasing their level of
satisfaction. The café made it a point that the different kinds of beans that were being used for
the coffee were being roasted on a weekly basis. This led to the change in the taste of the
customers as in one week the company would serve Ethiopian coffee to the customers where
as in the next week they would provide Brazilian coffee.
Situational analysis
This section should identify the current market and major segments for your organisation and
review key consumer needs and factors that may affect consumer purchasing
The company makes it a point to cater to the different needs of the customers so that it
can result in increasing its level of sales in the market. The major segments that the company
targets are the customers who are in the age of 25 years and above. The main reason for
targeting these customers is that it will allow the company in increasing its profit levels, as it
attracts the different income groups. The company makes it a point to cater to the different
needs of the customers by providing them with the best quality of single estate coffee. This
allow the customers to be attracted towards the company. It has also affected the purchasing
of the customers in a positive manner, as the customers are able to get the choice of the
coffee that they want in the market within an affordable price range (Armstrong et al. 2015).
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18-24 25-30 31-36 37 and above
0
1000
2000
3000
4000
5000
6000
7000
8000
Income Levels
Income levels
Table showing the income levels of different age groups
The above chart shows the frequency of income between the different age groups that
are present in the market. It can be seen that the Australian economy has a large amount of
disposable income in the age group of 25-36 years, as they work in different sectors that
enables them in having a differentiated level of income. The major strength of the company is
that it can attract the people of this particular age group as they are willing to spend in the
cafe, as the company is able to provide the coffee according to their taste and preferences.
The goal of the company is to provide the products to the local customers in an international
standard so that its objectives and financial goals can be met in a proper manner.
SWOT analysis
The strength of the company is that it uses freshly brewed coffee seeds, which are of
better quality so that it can enhance the taste of the customers. They also use coffee that are
of finer quality so that the customers can prefer the company over the rivals. The company
operates in an independent manner, which helps them in changing their goals and objectives
so that it can result in increasing the satisfaction level among the customers. The new
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offerings that are provided by the company on a weekly basis helps in changing the taste and
preference of the customers as well. This is a major strength for the company, as it provides
variety to the customers. The company also maintains the surrounding environment, which
has helped in reducing the level of pollution to a great extent. It also uses the advanced coffee
equipment so that the products can be given to the customers in a sustainable manner (Wrenn
and Mansfield 2014).
The major weakness of the company is that the rising prices in the goods that are
being provided by the suppliers. This has resulted in increasing the level of price of the
finished products among the customers as well. To maintain a better quality of coffee
products in the market, the inflated costs will hamper the level of reputation that the company
has in the market. It may also affect the quality of services that are being given to the
customers. The company also has another weakness that is the sound of the coffee machines
that is too loud. Since the company works every day, the employees are sometimes misguided
with the rosters that are being maintained for the weekend and the morning shifts. This has
increased the level of dissatisfaction among some of the employees as well (Chaffey and
Smith 2013).
The opportunities of the company is that it can provide the products to the customers
that will help them in maintaining an active life style in the market. The use of nutritional
benefits by the company will help in boosting the level of stamina among the consumers so
that they can be fit and active. The company also needs to provide flexible shifts to the
employees so that they can be motivated in serving the organization in a better manner. The
use of advertising campaigns by the company needs to be encouraged so that it can spread
awareness among the people regarding the products that they want the customers to try
(Baker 2014).
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The threats for the company is the different competitors like Gloria Jeans and Coffee
Club may hamper the reputation of the company. The waste materials in the company are
rising to a great extent that needs to be recycled so that it can be sustainable in nature. The
company has not taken up any policies to conserve natural water sources so that it can be
sustainable and mostly relies on the water that is being supplied by the government. This has
increased the cost of the company in using the necessary products to a great extent (Wood
2013).
PESTLE analysis
The political environment in the country supports the café industry, as it helps in
collection of large amount of taxes. The government provides support to the café industry and
looks in to the matter that is is competitive in nature. The government had launched the
Australian Competition and Consumer Commission (ACCC) in 1995, which helps in
protecting the rights of the consumers. The competitive pricing policies in industry allows the
company in serving the best quality products to the consumers so that it can help in
increasing their level of satisfaction (Tomczak, Reinecke and Kuss 2018).
The country has been facing an economic crisis since 2009 and its rate of Gross
Domestic Product (GDP) had decreased by 0.8 percent due to the crisis. This had to be
improved with the help of roper funding system that was provided by the government. This
led to the expansion of the economy by 1.2 percent and the food industry improved as well.
The food industry in the country has been making good progress due to the accumulation of
large amount of income in the hands of the customers (Kotabe and Helsen 2014).
The country has diverse group of culture and is mostly influenced by the British
traditions, as it was a colony of the British Empire. This has led to the rise in the diverse
cultures and the population is mostly cosmopolitan in nature. The rise in the advanced
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medical facilities has increased the rate of mortality in the country as well, which has become
a sustainable challenge as well. The initiative known as Australian Working Together that
was started by the government helped in increasing the rate of contribution and provide
support to the social welfare so that the economy can be recovered in a proper manner
(McDonald 2016).
The restaurant industry has been using the latest technologies so that it can help in
reducing the cost of production so that the products can be supplied to the customers at a
lower and competitive rate. The increase in the rate of innovation has helped the companies
in organizing their budgets so that the consumers can be provided with better quality of
products. The use of the latest technologies has resulted in increasing the purchase of food
products to 53 percent (Turnbull and Valia 2013).
The changes in the legislative actions has helped in changing the operations of the
company according to the needs and preferences of the customers. Additionally, the approach
that is liberal in nature has helped the country in combining the retail supplies with that of the
food businesses. The Intellectual Property laws that are present in the country has allowed the
cafes in patenting their products so that it does not get copied by some other rival companies.
This has resulted in increasing the competitive advantage of the companies in the market as
well (Renz and Herman 2016).
The government of the country has taken various measures that has helped in
protecting the environment so that it can help in curbing the level of pollution. The
environment friendly actions that has been taken by the government has even helped the food
industry in being sustainable in nature by minimalizing the level of wastes and increase in the
use of recycled materials (Chaffey 2016).
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Market planning theory
Concept of marketing
Marketing is an important part that helps the company in attracting the customers with
respect to the products and services that are being offered by them. The café needs to target
the right customers and segment them accordingly by taking in to consideration their needs
and preferences so that the level of satisfaction can be increased to a great extent. This will
help the company in increasing its level of profits in the area as well. The use of the right
marketing mix by the company will help in identifying the right products that needs to be
supplied at the right price so that it can attract the customers towards the business
(Mooradian, Matzler and Ring 2013).
Marketing mix
The use of the proper marketing mix will help the company in promoting the products
in a proper way so that the customers can be aware of the services that are being delivered.
The plan of the company needs to be developed in a manner, which will help in increasing
their level of profits. The development has to be done with the help of objectives that has
been taken up in the company so that the process can be done in proper steps. The plan of the
company is to segment the customers according to their needs and preferences so that it can
help in attaining a higher level of satisfaction. This will help in providing the products to the
customers at a proper price so that they can be able to purchase it. This will allow the
company in increasing its level of profits in the market as well (Piercy 2014).
The 4P’s of the mix includes the product, price, place and promotion. The products of
the company are coffee, which is the primary focus for the company. This is due to the fact
that the company uses better quality of coffee beans so that its level of profits can be
increased in the market. The price of the coffee is kept competitive so that it can help in
attracting majority of the customers towards the company. The company is situated in Sydney
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and has gathered proper feedback from the customers regarding their tastes and preferences,
which will result in increasing their level of satisfaction. The company promotes its products
and services by advertising on the online and print media platforms. This helps in increasing
the level of knowledge among the customers regarding the type of products that are provided
by the company. The use of better communication skills in the market helps in spreading
awareness among the customers as well (Solomon et al. 2014).
Analysis of internal marketing environment
The company needs to use the products that will help in attracting the younger
generation as well. This will help in increasing the level of profits, as families will also
accompany them. More innovative products need to be made by the company so that it can
help in attracting more number of customers. This will help in increasing the attraction of the
company in the market. Proper training needs to be imparted to the employees so that it can
help in increasing the level of services in an efficient manner. This will also result in getting a
better feedback from the customers, as their problems can be addressed in a better manner.
The customers need to be segmented in a proper manner so that it can help in meeting the
specifications of each segment based on their psychographic and behavioural attitudes (Ayub
et al. 2013). This segmentation will allow the company in providing the products according to
their needs and preferences so that the level of satisfaction can be increased in the market.
The company also needs to align the culture of the organization according to the values of the
customers so that it can associate themselves with the customers in a better manner. This can
be done with the help of effective training programs for the employees by the organization,
which will help in increasing the satisfaction level of the customers. The use of rewards and
recognition among the employees will also keep them motivated within the system so that
they can function in a proper manner (Johnston and Bate 2013).
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The weaknesses of the company can be capitalized by identifying the right kind of
suppliers so that the products that are being supplied by them can help in increasing the
competitive advantage of the firm. The company also needs to invest in technologies that will
provide them with a better quality of machine so that the sound that is made within the
company can be minimized to a great extent. This will help in maintaining the ambience of
the place so that the customers do not get disturbed by the sound of the machineries that are
being used in the café. The roster of the employees need to done taking in to consideration
the personal lives as well. This will help in maintaining a better balance with respect to the
life and the work period for the employees. The the employees will also feel motivated within
the workplace due to the important things that the company is taking care of in a better way.
The SWOT analysis that was conducted has shown that the company needs to address
some of the issues in a proper manner. The company needs to maintain its activities in a
sustainable manner so that it can help in improving its level of efficiency in the market. This
will result in increasing the number of customers in the market as well. The reputation of the
company can be increasing by seeking the opportunity of promoting the products of the café
in the market in a proper manner. The use of different promotional methods will result in
increasing the attraction of the customers towards the company. It will also result in
spreading awareness regarding the products and services that are being offered by the
company to the customers so that their interests can be increased towards the company (Renz
and Herman 2016).
Marketing goals and objectives
Marketing objectives
The major objective of the company is that it will try to build its loyalty among the
customers in a better way. This can be done with the help of supplying better quality of
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products so that the customers can be satisfied to a great extent. Another major objective of
the company is to develop its innovation process on a continuous manner by keeping in touch
with the customers and initiating the feedback process so that it can develop the products in a
better way. The use of the single region coffee beans will allow the company in gaining a
competitive advantage in the market as well (Rowley 2016).
SMART objectives
Specific The company needs to increase its level of profits in the market in a
sustainable manner and provide better quality of products as well
Measurable The increase of the profits has to be 15 percent on a quarterly basis so
that it can reach its target profit in a proper manner
Aggressive The use of market penetration strategy along with promotional methods
needs to be done so that customers can be attracted towards the company
Realistic The profit objectives needs to be feasible and can be achieved by
supplying better quality of products to the customers
Time-Bound The profit levels that the company will achieve needs to be done within a
period of 1 year (Grant 2016)
Marketing strategy
Consumer loyalty can be increased by the company by providing the products that are
of better quality. This will ensure that the consumers would mostly choose the company over
the rivals that are present in the market. It will also ensure that the loyalty among the
customers can be increased with the help of the process of feedback so that proper suggestion
can be given by the customers regarding the type of products and services that they want
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