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Answers Answer 1 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…
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Download file to see previous pages... 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 ...Download file to see next pagesRead More
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