MKG701 Task 2: Comprehensive Marketing Plan for Black Velvet

This report provides a comprehensive marketing plan for Black Velvet, a dessert shop based in Sydney, Australia. It begins with an executive summary, followed by an introduction and background of the company, highlighting its mission and keys to success. The report includes a situation analysis, covering consumer and financial aspects of the market, as well as an external market analysis focusing on competitor and environmental factors. An internal market analysis is performed using a SWOT framework, identifying strengths like innovative ideas and weaknesses such as high prices. The report then outlines SMART objectives and a detailed marketing strategy, including segmentation, targeting, positioning, and the marketing mix. It concludes with a marketing implementation plan and methods for evaluation and control, aiming to guide Black Velvet in expanding its business and competing effectively in the confectionery industry. Desklib provides access to similar solved assignments for students.

RUNNING HEAD: Marketing Plan of Black Velvet 0
Black Velvet
Marketing Plan
(Student Name)
1/15/2019
Executive Summary
Marketing Plan plays a prominent role in the growth of any business. It helps the company to
achieve their targeted goal in more effective manner. The country such as Australia has hub

Marketing Plan of Black Velvet 1
of restaurants in which one of the leading dessert shops caters the innovative product to their
consumers with variety of flavors. It is considered as one of the leading desert shops in
Sydney due to their innovative flavors in dessert and beverages. The confectionery industry
in Australia provides huge earning to their companies. In the year 2018, such industry has
earned USD$ 5700 billion that attract maximum firms towards such industry that increase
competition in the market. The major competitors of Black Velvet are Cake Shop, Swiss
Bakery and so on which give a huge competition to the Black Velvet by providing their
service at low price. Black Velvet need to concentrate on their marketing strategy to compete
with such competitors in the market therefore, they can provide a variety of flavor in dessert
and beverages that would make them unique from others. The Black Velvet should use
competitive pricing strategy as well as an effective promotional strategy to target their
consumers in a more effective manner. In the following report, an effective marketing plan
has been covering for Black Velvet that would help them to reach out maximum consumers
in a more effective manner.

Marketing Plan of Black Velvet 2
Table of Contents
Executive Summary...................................................................................................................1
1. Introduction............................................................................................................................3
2. Background of the company..................................................................................................3
2.1. Mission............................................................................................................................4
2.2. Success keys....................................................................................................................4
3. Situation Analysis..................................................................................................................4
3.1. Consumer Analysis..........................................................................................................4
3.2. Financial analysis of the Market......................................................................................5
4. Brief of external market.........................................................................................................5
4.1. Competitor Analysis........................................................................................................5
4.2. Environmental Analysis..................................................................................................6
5. Internal Market.......................................................................................................................7
5.1. SWOT..............................................................................................................................7
6. SMART objectives...............................................................................................................10
7. Marketing Strategy...............................................................................................................11
7.1. Segmentation, Targeting, and positioning.....................................................................11

Marketing Plan of Black Velvet 3
7.2. Marketing Mix...............................................................................................................12
7.3. Earlier issues..................................................................................................................13
8. Marketing Implementation Plan...........................................................................................14
9. Evaluation and Control........................................................................................................16
10. Conclusion..........................................................................................................................16
References................................................................................................................................17

Marketing Plan of Black Velvet 4
1. Introduction
Marketing planning is an effective tool to enter a new market or to survive in competitive
market. It plays vital role in success of any business. Every company needs to have strong
base of planning to compete their competitors in more effective manner (Hawkins and
Mothersbaugh, 2010). Australia is hub of restaurants; such industry is experiencing strong
growth over the past five years. It is among the few countries wherein the consumption of
food is high (Lee, Hallak and Sardeshmukh, 2016). One of the restaurants in Australia, Black
Velvet is planning to expand their business with a new variety of foods and new stall in
Sydney (Black Velvet, 2018).
In the following report, proper analysis will be done for the expansion of business and
accordingly marketing plan will be prepared to enter in the new location of the country.
2. Background of the company
Black Velvet is one of the famous dessert shops in Sydney. The shop is formed in 2014 with
the goal of bringing sublime dessert experiences to Sydney. It is based on the innovative as
well as an attractive concept in which their journey continues while searching for the best
international talent for caking making and they collaborate with the artists who are best in
their fields of passion. The shop is catering exceptional flavors to their consumers such as
black velvet, lemon vodka, passion fruit velvet, Italiano and so on that made them famous in
the street of Sydney. They have won gold medals in Annual Bake-Off awards that made their
business more successful. They have created the base of loyal consumers by catering to the
high quality of products as well as services at a competitive price. Variety of desserts offered
by the company with various flavors such as salted caramel cupcakes, cheesecakes, flavored

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coffee with options of sugar-free or less sugar, vegan as well as gluten-free to suits the
requirement of the individuals (Black Velvet Sydney, 2018).
2.1. Mission
Black Velvet mainly focus on the quality of products with innovative ideas at the modest
process to meet the expectations of consumers as well as attract more loyal native and tourists
2.2. Success keys
 Innovative Flavours
 High-Quality Product
 Competitive Pricing
3. Situation Analysis
3.1. Consumer Analysis
The confectionery industry of Australia has shown as strong growth in the past scenario, as
the people of Australia are addicted to the coffee as well as desserts. Australia is included
among the few countries wherein prompt consumption of the coffee is very high. The
population of Australia has extremely attracted towards the roots as well as tastes of the
products (Wardle and Chang, 2015). The consumers of Australia are very keen to know about
the foundation of coffee beans and the interest of the consumers towards such product
utilized in the tactical plans of most of the companies. The individuals of Australia are sweets
lovers that made them a force to visit such innovative shops to taste the flavor. They are knee
about the taste of the product with effective prices. The spending power of the consumers is
high for foods and they are mainly attracted towards the product at a reasonable price. The
eating and traveling out are the main leisure-spending activities by the consumers of

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Australia. It has been analyzed that around 20% of the individuals spend significantly by
eating-out. The consumers mainly prefer tasty, provenness, and environmentally friendly
products. The consumers of the young generation are mainly interested in lower price items.
The option of healthy as well as concern towards the environment through not important for
them but not fully ignored. Price is the main factors that affect the purchasing power of
consumers (Govindasamy and Lisle, 2015).
3.2. Financial analysis of the Market
The confectionery industry of Australia plays a prominent role in providing earning to such
firms. It has experienced unexpected growth over the past five years. The growth has been
shown as 7% in the past five years in the economy of Australia with the growth of revenue is
estimated to be increased by an annualized 2.7 5 over the five years which represent as
healthy growth in such industry. This industry has earned more than USD $ 5700 million till
the year of 2018 that attract as well as force the new companies to enter in such market
(Watson et al., 2016). The growth is determined by the trends towards the finest eating,
health consciousness, as well as decent consumerism. With such growth, the Black Velvet
also enjoyed great earning from such industry and motivates the company to expand their
business with innovative ideas as well as flavored in desserts and beverages. The government
imposed low taxes on bakeries that help the Black Velvet to earn more profit in such market
with more effective manner (Bucchini et al., 2016).
4. Brief of external market
4.1. Competitor Analysis
Black Velvet faces huge completion in such industry which affects the earning of the
company at greater level. The major competitors of the shop are local bakery such as Cake

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Shop, Swizz Bakers, Christopher’s Cake Shop, as well as international cafes such as
Starbucks, Costa Coffee and so on. The competitors cater similar products to the consumers
at a lower –price that attract the consumers towards such cafes. It is the major threat to the
Black Velvet that affects the performance as well as earning of the café at greater level
(Leigh and Triggs, 2016).
4.2. Environmental Analysis
Growth and stability of economic
The growth and stability in the economy of Australia affect the revenue of the companies in
an effective manner. The government imposed low taxes on bakeries and most of the items
are tax-free shown positive aspects for the growth of the confectionery industry. The
government also reduce the tax rate on small companies from 28.5 % in 2015-16 to 27.5 % in
2016-17 (Marjanova, Temjanovski, and Jovanovska, 2016).
Socio-Cultural Trends
There is significant change in the lifestyle of the individuals in Australia. The individuals are
becoming more health conscious as well as make changes in their eating habits. Therefore, it
would be easy for the Blue Velvet to target those consumers who prefer low sugar or sugar-
free products. The individuals of Sydney has a busy schedule that resists them to visit places
for food therefore, Blue Velvet offer their services online to reach out those consumers (Kitto
et al., 2015).
Technological Advancement
Australia is a developed the country, as well as the advanced technology, is being used in all
types of industries. The companies also used advanced channels for marketing their products

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such as social media and digital marketing. It motivates Black Velvet to enter with innovative
ideas and able to target maximum consumers by using digital marketing tools
(Arvanitoyannis and Tserkezou, 2016).
Marketing planning theory and concept
Marketing is the process of targeting consumers through the various median to make them
satisfied in the market. There are different marketing theories to approach consumers in a
more effective manner in such competitive markets such as segmentation, marketing mix,
alignment, and lifecycle. The product or services are designed to solve the problems of
consumers, their needs, or wants (De Mooij, 2018). Market segmentation is the craft of
representing the product of the company to segments that want it, can afford it, and know
how to access it. Moreover, the idea of the marketing mix is to organize all the aspects of the
marketing plan around the habits, desires, as well as the psychology of the target market
(Baker and Saren, 2016).
5. Internal Market
5.1. SWOT
Strength
Innovative Idea
The innovative ideas, as well as presentation, are the main strength of Black Velvet. Black
Velvet presents their products in an innovative manner with new themes and designs that
make them distinct from other cafes and bakeries.
Variety of Flavour

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Black Velvet caters a variety of flavor to their consumers that provide the possibility of
choices in the products of Black Velvet. It has introduced over a hundred flavors for the
cupcakes with different innovative flavors such as salted caramel, bacon, and cheese and so
on to make it stand out in the market.
Customer Service
The employee of Black Velvet has gone through the training as well as capable of knowledge
and skills to provide quality service to their consumers. They are required to wear a tidy
uniform to make a good impression to the consumers as well as greet the consumers with a
cheerful smile once they entered in the shop (Bull et al., 2016).
Weakness
Lack of Permanent Workers
The issues related to the employees are one of the main weaknesses of the company. They
have a lack of permanent workers that force the Black Velvet to employ more part-time
workers. Most of the part-timers are foreigners that are not as fluent as other are that create
lack of communication in the place.
High Price
The second weakness of Blue Velvet is their rice. The price of their products is high that
attract maximum consumers towards their competitors due to the reason they are delivering
products at a low price, for example, Blue Velvet sale 1L standard chocolate fondue cake at
$105and other competitors sale that similar cake at a low amount.
Opportunities

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Low tax rate
The low tax rate imposed by the government provides an opportunity for the Black Velvet to
earn more profit by expanding their business by introducing more innovative products and
services for the consumers.
Growing Demand for Innovative desserts
The demand for innovative desserts is growing in the market that provides an opportunity for
the Black Velvet to target maximum consumers in more effective manner.
Online order
The demand for online orders is increasing in the recent scenario due to the busy life schedule
of the consumers. They mostly prefer to order online to save their time. It gives an
opportunity to the Black Velvet to target more consumers by providing online services to
them.
New Sugar-Free Product
In the recent scenario, the people are more hath conscious that provide an opportunity to the
Black Velvet to target the consumers by catering sugar-free products to the consumers. It
would help in increasing the satisfaction level among the users.
Other Opportunities
The other opportunities for the Black Velvet are the stable economy, advanced technology,
and continuous growth of the industry which would help them in achieving targeted goal.
Threat
Local Competitors

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The major threat for Black Velvet is local competitors such as Christopher’s Cake shop,
Swiss Bakerz, Infinity bakery and so on. They cater their services at low price to attract
maximum consumers.
New Innovation
In the competitive market, Black Velvet needs to continuing the innovation in their products
to attract consumers. It increases pressure among the employees and made them tough to
survive in such a competitive market.
Change in Taste and preference
In the fluctuating market, the taste and preferences of the consumers are rapid changes that
would create an issue for Black Velvet to analyze and caught such changes in taste. It would
increase dissatisfaction among consumers (Phadermrod, Crowder and Wills, 2019).
6. SMART objectives
Specific
 Gain Market Share
 Increase the satisfaction among consumers
 Establish a raw competitive advantage over competitors
 To reenergize with innovate ideas
Measurable
Black Velvet has an objective to achieve 75% of satisfaction among the consumers and has
an objective to increase 20% of their market share in such industry.
Achievable