HI5004 Marketing Plan Project Assignment Sample

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• Subject Code : HI5004
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• Subject Name : Marketing Managemnet

Marketing management 

Table of Contents

Introduction

Competitive Information

Environmental scanning

Market demand forecasting

Step 1: Collect information

Step 2: Choose a market approach

Segmentation and targeting

Positioning

Reference

Introduction

The goal of this report is to introduce our plan as opening a new coffee shop that provides a good quality customer service and creates a unique environment. We are focusing on opening a coffee shop that plays the right kind of music based on analysis from the cloud-based service “Rekignition”. In detail, the technology we use allows customers to analyse the type of music they like based on the coffee they order and the facial expressions they choose. In our coffee shops, we have a few specific fields that play a variety of music; after ordering coffee, customers can arrange seating in the appropriate place of their choice. We also offer customers a reward scheme that allows members to sign up for them using the face recognition system. Since we live in a world where many people are under pressure, the main purpose of running this coffee shop is to create a cozy and comfortable environment (Chien, 2018).

Competitive Information

It is important for businesses to understand who the competitors are and what information they need. Therefore, it is necessary to collect, analyze, research, and manage all the information from the competitors in order to gain a competitive advantage in this intensely competitive market. For example, Starbucks is our competitor; it is the largest coffee chain in the coffee industry. We are selling some similar products in both businesses, but some things can be distinguished, which can be customer service, price of coffee beans, price, and advanced technology. According to research, most Australians would prefer to go to local coffee stores, because the texture of coffee beans is different than American coffee.

Starbucks was a failure because of the culture in the Australian market, not adapting to Australian tastes (Ronald & Amelia, 2017). The price of coffee at Starbucks is considered to be expensive, with the price range ranging from $ 3- $ 8 depending on the different cup sizes and types of drinks, which means not every customer is affordable, even though it has different options. For comparison, we should consider a fraction of the price of coffee. Based on online reviews from customers, Starbucks' customer service may not be as good as customers expect, for example, to spell misspelled coffee cups. However, in competition with Starbucks, we focus on finding information about competitors' offers, to differentiate products and services to stand out in the industry (Blake, 2019).

Environmental Scanning

Opening a new coffee shop requires good study and research on all the factors that can affect the long-term performance of the business. Not only does this help the business strengthen its current position in the competitive environment, other than that, is instrumental in identifying the competitor’s weaknesses, prospective customers, and help in adapting with the cutting edge technological advancement in this platforms in addition to those devices that can be best used to sell products or services (Wu, Yang, Tang & Liao, 2017). All internal and external factors can be analyzed as in the form of points lying underneath:

Strength

One of the outstanding benefits is the variety of services and products offered. It is a coffee shop that offers wish music and high-quality coffee. Using technology, customers listen to the music of their choice; creates a unique environment that encourages relaxation (Muhammad & Anwar, 2018). Also, we're using technology so, customers can arrange for such places according to their mood. Moreover, all “baristas” are trained to treat coffee with their heart and to adjust the taste and quality every day; therefore, providing the best quality is guaranteed. The high-speed of Wi-Fi is also a powerful point that allows the customer to spend their time using technology devices.

Weakness

Based on the fact that not all customers are music-lovers and the software plays the music based on the majority types of coffee has been ordered, some people may not be enthusiastic about this factor which leads to uncertainty of customer loyalty.

Opportunities

Drinking coffee is part of Australia's culture, a lot of people who love coffee desire a high-quality taste and a new unique place to spend time with their friends or even alone time.

Threats

The biggest threat is all current existing coffee shops which can be local or franchise coffee shops. Furthermore, other target market trends such as milk tea or alternative healthy beverage. Changing prices of coffee beans and instant coffee with cheaper price are also should be put into consideration (Chen, & Kuo, 2017).

Market Demand Forecasting

In order to predict the demand for our cafe, we use a combination of forecasting methods to get accurate parameters to maintain our goal of survival, stable sales in the short-term plan and grow into a chain of coffee in the medium-term plan and can become the franchise brand in the long-term plan of the future (Torga & Spers, 2020).

Step 1: Collect information

Based on the information we collect, we will select specific products to serve potential customers to maintain and grow sales.

Reviewing the plan to promote marketing by addressing any marketing or promotional program that may help in the increase in the product’s demand can be used. We will explore the data to create a sound marketing plan and then re-evaluate how successful the plan is, the advantages and disadvantages of that plan. For example, do special promotions or holiday promotions stimulate our products? From there we take all into account when forecasting demand, especially if we intend to repeat the used sales strategy.

In addition, we reviewed the main indicators. Determine the cause of the customer's product needs. Some of the main indicators include both the aspect of demographic along with environmental factors. Age, gender, geographic location, and any other identifying group of characteristics are included in the Demographical aspects. For example, extremely harsh winters can be the cause of a drop in sales.

Next, we have to look at the market. Analyze every word and deed of competitors, customers, and any other participants in our market. For example: Considering whether a competitor is running a major promotion or sales campaign.

Finally, we reviewed the previous months. We look at previous month's figures, sales discrepancies, and see if there are any factors that influence the parameters, or the discrepancies? For example holiday time, weather: heavy rain or sun, winter or summersets’. This helps us in the identification of the annual as well as seasonal fluctuations, from which we will devise a marketing plan that will address the future time (Johnston, 2017).

Step 2: Choose a market approach

At first, we will use experimental marketing methods including advertising, promotions to measure the awareness of the product, the share of the market, along with its penetration techniques, in relation to total sales. Align the strategy based on the information gathered to minimize the problem of introducing the product on a wider scale.

Step 2 involves the incorporation of a method to survey customers by phone or e-mail, Ask about coffee drinking preferences, what to expect when going to a café, all of these help us to analyse the subjective buying behaviour. The customer is the person who knows best the needs for a given product. Information can be collected by us from them in many ways: phone or e-mail, review order history statistics, market trends. Ask about buying plans in addition to subjective purchasing behaviour. They need to use large survey samples in order to simplify results considering our ability to buy the product and add the results (Traoré & Badolo, 2016). The customer who knows best is in the need for a given product. The downside of this survey, however, is that they often inflate real demand. Although a person may be interested in a product, actually buying it is another matter and is very costly and financially time-consuming. So we also have to consider these two factors.

Step 3 we will forecast demand. We summarize the collected results, then analyse and discuss the project.

Step 4 to Monitor and adjust the forecast to keep the data up-to-date and constantly updated to avoid subjective judgments that will cause mistakes to be made. Affect our ability to grow customers and financial ability.

In short, forecasting demand helps us plan a clear development plan in the short, medium and long term to bring our Coffee shop to market in an effective yet stable way of earning revenue and development with a low cost and no waste strategy.

Segmentation and Targeting

As the beginnings of the coffee industry, we realize that to be successful in Australia we must first meet the tastes of our customers. We identify our category by dividing customers into 3 main ages. Our target customers are those who have a great taste of coffee and want to enjoy a whole cup of coffee without any hindrance. For example, university students prefer to work on an assignment in an open space like, in a coffee shop. Also, we focus on delivering outstanding coffee to customers between the ages of 25 and 39. They are workers, teachers, who do not have much time to stay but prefer a cup of high-quality coffee. Last but not least, we also notice middle-aged customers who get an exceptional taste of the coffee. Their standards are really hard to satisfy, but we believe with good marketing research and product development, we can meet their needs accordingly (Moon, 2018).

Positioning

We try our best to create an atmosphere for customers to enjoy coffee along with listening to music which is mostly attached to their emotion at that time. Additionally, a deep-learning machine will help us approach customers and enhance services for our targeted market. Recently, "Rekignition" - has the ability to distinguish many different facial expressions. Therefore, it is not too difficult to implement this application in our business (Zhao, 2018).

Reference

Blake, L. J. (2019). How agile is my competitor? Can strategic agility attenuate latecomer challengers? The case of Café Coffee Day (CCD) in India. Journal of Management, 7(2), 1-10.

Chen, H. T., & Kuo, C. M. (2017). Applying a severity-performance loss analysis in-service failure research. Journal of Service Science Research, 9(2), 121-145.

Chien, S. C. (2018). Building the Customer Satisfaction Forecasting Model for Coffee Chain Stores: A View from Service Quality, Customer Value, and Brand Equity. IJASSH.

Johnston, M. (2017). Eclipse Coffee Bar-Business Plan (Doctoral dissertation).

Moon, M. A. (2018). Demand and supply integration: The key to world-class demand forecasting. Walter de Gruyter GmbH & Co KG.

Muhammad, A., & Anwar, F. (2018). Industry and Strategic Analysis of Lamno Robusta Coffee; An Application of Multy Criteria Decision Analysis (MCDA) Techniques to Analyze A Small Scale Farming Group. In Proceeding of the First International Graduate Conference (IGC) On Innovation, Creativity, Digital, & Technopreneurship for Sustainable Development in Conjunction with The 6th Roundtable for Indonesian Entrepreneurship Educators 2018. European Alliance for Innovation (EAI).

Ronald, R., & Amelia, A. (2017). The determinant of Customer-Company Identification (CCID) of Starbucks in Indonesia.

Torga, G. N., & Spers, E. E. (2020). Perspectives of global coffee demand. Coffee Consumption and Industry Strategies in Brazil (pp. 21-49). Woodhead Publishing.

Traoré, F., & Badolo, F. (2016). On the co-movement between coffee and cocoa prices in international markets. Applied Economics, 48(40), 3877-3886.

Wu, Y., Yang, L., Tang, A., & Liao, Z. (2017). College Students and Coffee Purchasing: Factors that Affect College Students’ to Consume Coffee from A Specific Coffee Brand.

Zhao, Z. (2018). Improvement and Innovation of Appearance Design of Coffee Machine. Journal of Engineering Mechanics and Machinery, 3(1), 1-5.

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