Strategic Marketing - Coursework Example

? Answers Answer SWOT analysis is a strategic marketing tool that determines an organization’s strengths and weakness. Moreover, it helps to identify probable opportunity and threat for the organization. Caffe Nero Group is one of the leading and independent coffee bars that are operating in UK market. A SWOT analysis has been highlighted below in order to determine the internal strengths, weakness and external threats, opportunities for Caffe Nero Group LTD. Strengths Provider of fresh food and excellent coffee. High Profitability and Rapid Growth. Effective product differentiation strategy and huge range of products. Partnership with several big brands and acquiring several potential outlets. Effective business expansion strategy. Effective employee strength. Significant reputation among the target customers. Weaknesses Major of the outlets are located only in UK, therefore, they are failing to capitalize on the potential global opportunities. Due to this, they are lacking to achieve the advantages of economies of scale. Only provide Italian style foods and major of the brand names are not known to people. Inadequate food sector than other existing competitors. Lack of change process adoption. Limited presence in global market place. Depending on one supplier. Opportunities Product diversification strategy and implementation of internet cafe in business process. Further 450-500 store expansion in both international and domestic market within 2015. Future international business expansion plan due to the economic development of several countries. Change of social trends to hang around in a coffee bar for several purposes. Threats Huge competitive market place due to the presence of potential organizations, such as Costa, Starbucks, Subway, Greggs and Bakers Oven. Fluctuating currency exchange rate in global market. Economic downturn and low disposable income of middle class people and political instability. High bargaining power of suppliers and high price of coffee can affect the business output. If people change their trends in near future, such as from coffee consumption to tea, then it will affect the overall industry. Answer 2 UK coffee and sandwich market is significantly growing due to the presence of several leading branded coffee and sandwich chains. Caffe Nero Group Ltd. is one of the popular coffee chains in UK. The organization is popular for its high quality coffee and effective fresh food items. The organization has followed Italian style in its product differentiation strategy. However, in terms of segmentation strategy, the organization has implemented Demographic and Geographic segmentation. In terms of Geographic segmentation, the organization has majorly focused on the people of UK. It is the social trend of UK people to consume coffee products, such as cold coffee, regular coffee from the coffee chains. Moreover, the organization has, established their stores in major cities in UK in order to achieve potential target customer base. However, the organization has understood the geographical potentiality of places and established the stores according to the trends. In terms of demographic segmentation, the organization has classified its target customers in three groups, such as income, age and gender. It is evident that, women are the maximum users of coffee shop comparing to the male users. Therefore, the organization has targeted the ladies to achieve growth. The target customers are aged between 35 and 55. Busy office goers are the major target customers Caffe Nero. Finally, the organization has targeted people of high income group as they are the potential customers of coffee and sandwich shops. Answer 3 This part will propose a marketing mix strategy to Caffe Nero for further improvement. Marketing mix strategy consists of product, price, place and promotional marketing strategy. Product The major product of the organization is coffee. Due to this, everybody knows that, Caffe Nero is a coffee house and serves fresh foods, pasta, sandwiches and parties. In UK the organization is operating through significant number of stores and near about 3000 employees are working under this organization. It is evident that, the organization focuses on the Italian style food. It is suggested that, the organization should implement product diversification strategy in their business process in order to achieve more market share and rapid growth in near future. Price Caffe Nero is popular due to the high quality coffee and fresh food items. Moreover, the organization has implemented reasonable pricing strategy for the food products. The organization used to collect the high quality coffee beans from the farmers and pay them appropriate money. It has helped the farmers to improve their social condition. The price of the product range is not so high comparing to the other potential competitors. In order to achieve growth and increase market share, Caffe Nero should implement competitive pricing strategy in order to maximize business profit. Place Place is an important factor for any kind of business and their marketing strategy. The major of the stores of Caffe Nero is located in UK. Moreover, the location of the stores has eased the purchasing option of the buyers from each and every store. The organization has established lots of branch in UK. Moreover, they have started global expansion process in order to increase their market share. They only depend upon one supplier. It is suggested that, the organization should increase the number of outlets in both global and domestic market. Moreover, they need to look for several cost effective suppliers. This strategy will increase the core competency of the organization. Promotion The organization has implemented summer frappe promotional strategy for the newly developed products that is highly, topical, visible and successful. Promotional marketing strategy plays an important role for the growth of a business. Now-a-days, social media promotion is becoming one of the effective promotional strategies. The organization can create a page in Facebook and post information about new products, services, events and achievements. This strategy will increase the brand awareness among the social media users. Moreover, the organization can implement digital and print media promotional strategy. It will increase the brand awareness among the households. Lastly, in-store promotional strategy can increase the brand image and brand value. Effective in-store customer service, sales strategy, providing information about new products and implementing happy hours can increase the brand recall and customer loyalty. Read More