Strategic Marketing Plan: Revelator Coffee Expansion in Australia

This report presents a strategic marketing plan for Revelator Coffee's expansion into the Australian market. It includes a situation analysis using tools like PESTEL and Porter's 5 Forces, revealing opportunities and threats within the Australian coffee industry. The plan outlines segmentation, targeting, and positioning strategies to effectively reach key customer groups, particularly young adults aged 16-34. A detailed marketing mix is proposed, focusing on product quality, competitive pricing, strategic placement, and impactful promotional activities, including social media marketing and loyalty programs. The implementation phase involves setting up coffee shops in prominent urban areas and utilizing various advertising channels. The plan also includes a budget estimate for establishing a coffee shop and outlines methods for evaluation and control, such as customer feedback and database analysis, to ensure continuous improvement and customer satisfaction. The goal is to build a strong brand image, foster customer loyalty, and increase sales by 25%.

Running Head: Marketing Plan
Marketing Plan for Revelator Coffee in Australia
Name of the student:
Institute Affiliation:
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Running Head: Marketing Plan
Executive Summary
Revelator Coffee is originated in the US and planning to expand in the Australian market. A
strategic marketing plan has been devised to make the expansion successful. With the help of
external and internal environment analysis, the threats and opportunities have been found out.
PESTEL analysis, Porter’s 5 forces analysis, SWOT analysis and industry life cycle analysis
are some tools that were used for situation analysis. Segmentation, Targeting and positioning
have helped to design a suitable marketing mix. Marketing mix gives a clear idea of product,
price, place and promotional strategy with the estimated budget. Moreover, an idea has been
proposed for evaluation and control.
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Running Head: Marketing Plan
Table of Contents
Executive Summary...............................................................................................................................2
Situation Analysis..................................................................................................................................4
Marketing Goals and Objectives............................................................................................................5
Marketing Strategy................................................................................................................................5
Marketing Implementation....................................................................................................................7
Evaluation and Control..........................................................................................................................8
References.............................................................................................................................................9
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Running Head: Marketing Plan
Situation Analysis
External environment
The detailed analysis of the external environment, it has been observed that the Australian
market is suitable for expansion for Revelator Coffee. Reports say that the government rules
and regulations are in favour of opening new cafes in Australia that can be seen as an
opportunity. The culture of a market plays an important role while expanding in a new market
(IBISWorld, 2018) It has been noticed that people in Australia enjoy high-quality coffee
(Hurst, 2014). As coffee culture is a part of Australian culture, the company has a great
chance to operate successfully in the country. Price of the coffee needs to be set in a way so
that people from different income groups can be catered.
Industry Analysis
Reports say that the coffee industry in Australia has experienced a growth of around 2.7% in
2017-18 and further growth has been anticipated. Industry life cycle indicates that the coffee
industry is in the growth stage at present which can be really favourable for Revelator Coffee.
From Porter’s 5 Forces model, it is clear that the bargaining power of the suppliers is low
while the bargaining power of the customer is really high. Big Players like Starbucks,
Unilever will be a tough competition in this case. Finally, soft drinks, tea can be act as
substitutes of coffee. It has been suggested that Revelator coffee adopts diversification for
market development.
Internal environment
From the SWOT analysis of Revelator coffee, it is clear that the main strength of the
company is good taste and alluring packaging. As Australians enjoy good quality coffee,
Revelator can take this as an opportunity. On the other hand, the main weakness of the
company is a weak brand image while the major competitors have a strong image in the
country.
Customer environment
Coffee culture in Australia is popular. People go to coffee shops and cafes to relax with
friends and families. Especially, young people love to spend time over coffee in an ambient
atmosphere.
Conclusion on SWOT
The company needs to invest time and effort to create a strong brand image in Australia.
Visibility among people is really important here. As they already make coffee of good taste
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Running Head: Marketing Plan
with good packaging, it is important to build a great brand image and value to compete with
the big players in the market.
Marketing Goals and Objectives
The marketing goal of Revelator Coffee is:
 To build a strong brand image and to earn customer loyalty
 To increase the sales by 25%
Objectives
The main aim is to create a strong brand image in the market and to earn loyal customers.
Mostly young people from age 16-34 are regular to coffee shops. They are reported to be the
most loyal customers as well (Smith, 2015). They love high-quality coffee and a nice
ambience. They are the main target customers. Apart from that, it is a good idea to target the
low-income group people as well.
Marketing Strategy
From the situation analysis, it is clear that there is a strong competition in the coffee industry
where big giants like MacDonald’s, Starbucks are playing where Revelator coffee is totally
new in Australia with a weak brand image. Flexible government rules and regulations are an
advantage in this case. Another advantage is the coffee culture of Australia. People in
Australia love to relax over a coffee. Nowadays, with increased white-collar jobs, people
often choose coffee shops for important discussions. They enjoy good quality coffee and a
soothing atmosphere. As the company makes good coffee and concentrates on attractive
packaging, it would be easy for them to satisfy the customers. The main challenge is to make
the brand known among people. Moreover, nowadays people are having soft drinks and tea as
a substitute for coffee. Keeping that in mind, apart from adopting a suitable pricing and
promotional strategy, Revelator coffee needs to adopt diversification for market development.
Segmentation
Target marketing is based on three basic steps that are segmentation, targeting and
positioning (Ambinakudige& Choi, 2009). Segmentation involves identifying the parts of the
market with a similar demographic, behavioural, psychographic and geographic requirement.
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Running Head: Marketing Plan
MARKETING STRATEGY:
Target Audience:
(IBISWorld, 2018)
Target Market A
Target Market B
Target Market C
Demographic
Age
15-34 (36.8%)
35-54 (36.5%)
55+ (26.7%)
Gender
Males and
females
Males and
females
Males and
females
Income
Lower incomes
levels
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Segment 1 Segment 2 Segment 3
Demographic Age 16-34 (36.9%)
35-55
(36.3%) 55 +(27%)
Gender Male, Female
Male,
Female
Male,
Female
Income Lower income High income
Lower
income
Occupation
Student/Started
working
Working
professional
Mostly
retires
Geographic Australia Australia Australia
Behavioural
Regular
drinkers. Loyal
to a brand
Regular
coffee
drinkers.
occasional
drinkers
Physiographical
Visiting coffee
shops are part
of routine
Prefers
restaurants
and fancy
cafes for
coffee on a
regular basis
refers to
drinking at
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Running Head: Marketing Plan
Steady income
levels
Lower income
levels
Education/
Work
experience
University
Transitioning
into work
Full-time work
Retired or
approaching
retirement
Geographic
Australia
Australia
Australia
Behavioural
Daily drinkers
who value brand
loyalty
Daily drinkers
but are loyal to
cafes and
restaurants
Occasional
coffee drinker.
Drinks at home
Physiographical
Views coffee as
an affordable
and essential
part of their daily
routine.
Social coffee
drinkers
Views coffee as
necessary,
however, are
more likely to
frequent cafes
and restaurants
than coffee
shops.
Increased trend
of at home
drinkers
MARKETING STRATEGY:
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Running Head: Marketing Plan
Target Audience:
(IBISWorld, 2018)
Target Market A
Target Market B
Target Market C
Demographic
Age
15-34 (36.8%)
35-54 (36.5%)
55+ (26.7%)
Gender
Males and
females
Males and
females
Males and
females
Income
Lower incomes
levels
Steady income
levels
Lower income
levels
Education/
Work
experience
University
Transitioning
into work
Full-time work
Retired or
approaching
retirement
Geographic
Australia
Australia
Australia
Behavioural
Daily drinkers
who value brand
loyalty
Daily drinkers
but are loyal to
cafes and
restaurants
Occasional
coffee drinker.
Drinks at home
Physiographical
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Running Head: Marketing Plan
Views coffee as
an affordable
and essential
part of their daily
routine.
Social coffee
drinkers
Views coffee as
necessary,
however, are
more likely to
frequent cafes
and restaurants
than coffee
shops.
The increased trend
of at home
drinkers
Target market
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Running Head: Marketing Plan
Based on the segmentation, it has been seen that most people between 15-34 prefer to go to
coffee shops on a regular basis for socializing and relaxing. They love to spend time at coffee
shops as part of their daily routine. Moreover, they are loyal to their preferred brands. These
people are mostly students and young professionals. While, targeting, Revelator coffee has
chosen one primary and one secondary market.
 The primary market is Segment 1 with people between 15-34 years of age and is
regular to coffee shops.
 A secondary market would be people from lower income groups to cater to both
segment 1 and 3.
Positioning
As the main aim of the primary target customers is to socialize over coffee, it is important to
offer them a great experience. The positioning of the company is to provide good quality
coffee at a soothing ambience with a value for money. It is very important to keep the price
affordable so that it can attract maximum customers. Going to a coffee shop is more of an
experience than a coffee nowadays. The company should offer an unforgettable experience
every time a customer walks in.
Marketing Implementation
Product: In this case, the company needs to focus on good quality coffee with different
variables such as espresso, latte etc. Attractive coffee mugs and great quality coffee and good
customer services would be the three layers of the product.
Price: The price should be in an affordable range as the main target customers are in the age
group of 15-34.
Place: Revelator coffee needs to open new coffee shops in the country. Apart from that, they
need to offer home delivery through an online store as well.
Promotion: Promotion is the most important section while trying to enter a new market and to
create a brand image. As young adults are hooked to social media nowadays, the company
needs to promote through social media. They need to set up coffee shops at high traffic areas
to make it visible and prominent.
In the 3-year period,
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Running Head: Marketing Plan
 The store will be set up at different prominent urban areas of Australia.
 Billboards will be set up.
 Promotions will be done through social media ads.
 TV commercials will be aired.
 The loyalty program will be offered to customers.
Marketing team and marketing head will carry on these activities. Initially, three to four
stores will be set up within six months. After observing the sales and customer trends, a
number of stores will be increased with the required changes in the strategy. Promotional
activities will be performed throughout the time period.
For setting up one coffee shop, the estimated budget is:
 Space= $50,000.
 Initial cash balance = $40,000.
 Initial Inventory = $11,000.
 Equipment = $50,000.
 Furniture = $17,000.
 Budget for promotion = $80,000
Evaluation and Control
Revelator Coffee will make a database of customers coming to the coffee shops. They will
include all the details of the customers such as age, spending habit, choice of orders,
frequency of visit. The company will offer promotional offers accordingly. The company will
be able to evaluate the customers by the database. They will keep a feedback form and
suggestion and complain box to get the feedback from the customer so that they can improve
the quality of product and services. With the suggestion box, they can introduce new products
in future. It is a great way to evaluate the product and services if the customers can directly
give their feedbacks. Getting real-time suggestions will help the company to gauge their
improvement.
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Running Head: Marketing Plan
References
Billboards Australia. 2018. How much does a billboard cost?. Retrieved from:
http://www.billboardsaustralia.com.au/advice/faq
Brook, B. 2016. Starbucks coffee is quietly expanding in Australia after humiliating
retreat eight years ago. Retrieved from:
http://www.news.com.au/finance/business/retail/starbucks-coffee-is-quietly-
expanding-in-australia-after-humiliating-retreat-eight-years-ago/news-
story/b7f136c4d78f24aaa600a3822b1e31b4
Coffee Club. 2018. The Coffee Club. Retrieved from:
http://www.gloriajeanscoffees.com/au/about/ourstory.aspx
Daciuk, E. 2017. Facebook Advertising Costs by Industry 2018. Retrieved from:
https://fitsmallbusiness.com/how-much-does-facebook-advertising-cost/
Dada, A.G. 2014. Buyer Psychology and Customer Value: Why People Buy
Starbucks coffee?. Retrieved from:
https://theadaptivemarketer.com/2014/09/01/buyer-psychology-customer-
value-people-buy-starbucks-coffee/
Dawson, T. 2013. How Starbucks Uses Pricing Strategy for Profit Maximization.
Retrieved from:
https://www.priceintelligently.com/blog/bid/184451/how-
starbucks-uses-pricing-strategy-for-profit-maximization
Gloria Jeans. 2018. Gloria Jeans Coffees. Retrieved from:
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Running Head: Marketing Plan
http://www.gloriajeanscoffees.com/au/about/ourstory.aspx
Grewal, D., Levy, M., Mathews, S., Harrigan, P., Bucic, T. 2015. Marketing.
Australia: McGraw Hill Education.
IBISWorld 2017. Coffee Shops in Australia. Retrieved from:
http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/au/industry/de
fault.aspx?entid=5381
IBISWorld 2018. Cafes and Coffee Shops in Australia. Retrieved from:
http://clients1.ibisworld.com.au.ezp01.library.qut.edu.au/reports/au/industry/de
fault.aspx?entid=2015
O’Dea, C. 2015. Millennials: Cafe culture comes to Wall Street. Retrieved from:
https://www.ipe.com/investment/millennials-cafe-culture-comes-to-wall-
street/10010014.article
Smith, G. 2015. Study: Millennials Are the Most Brand-Loyal Generation. Retrieved
from: https://www.inc.com/geoff-smith/millennials-becoming-more-loyal-in-era-
of-consumer-choice.html
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