The Success of Bean Around the World - Case Study Example

Market analysis of ‘Bean Around The World Introduction The café, ‘Bean Around the World’ would be focused on its strategy of providing fresh products that would provide the customers with wide variety of beverages, fresh salads, sandwiches and other snacks from around the world. Coffee beans and tea leaves from across the world would ensure that people coming from different nations and culture are able to enjoy the natural taste of their preferred beverage. ‘Bean Around the World’ would be started with the initial budget of £81, 020 in 2010 in Central London. The forecasted third year budget of £181, 950 reflects the success of the marketing strategy. 2. Market Strategy In such a scenario, an effective marketing strategy would ensure the success of the Café, especially when it is located at the heart of London. The focus of the business would be customer satisfaction. 2.1 Development of website and e-marketing Creation of website would hugely facilitate in advertising its various goods and services to the huge potential market in the cyber space which is accessed daily by millions of people. The website would provide an opportunity to showcase the products and services to attract the future customers and meets their individual demand through customised features of the interactive website. The e-business activities and online shopping would also help in the creation of unique database of customers whose preferences would be exploited to create niche position in the market. The personalized marketing through blogs and other networking sites like facebook, twitter etc would also give huge leverage to the business. 2.2 Market segmentation Market segmentation is vital for differentiating elements in the highly competitive business environment. The segmentation helps to create a niche in the market. The mixed segmentation is hugely popular in the contemporary times and gives a big leverage to the companies to plan its market strategy in a more flexible manner and successfully introduce their products in a new market. Analysis and identification of the changing trends of the customer requirements are important ingredients to gain leverage against their rivals (Grant, 2007). Psycho-demographic is chosen as the focus area primarily because of the fact that the competition within the industry demands a creation of a niche market for coffee shop to become a success. ‘Bean Around the World’ faces stiff competition from the already established brands like Starbucks, Costa, McDonald’s etc. Psychographic or lifestyle pattern categorises the market according to which people exhibit a well defined way of living, maintaining a set of standard and displaying a typical purchasing behaviour. The business would be catering to the different demographic segments of the market comprising of young executives, adults and children. The fresh products that are customised to the needs of the individual customers would serve as major differentiating elements in its products which can be easily promoted within this group. 2.3 Consumer psychology and Behavioural pattern Understanding of consumer psychology plays a vital role in the development of marketing strategy and planning. The behavioural pattern of the people, in the decision making process of buying products and services, help provide important clues for preparing appropriate advertising strategies and campaigns so that maximum mileage could be garnered for the products. The marketing decisions would be focused towards creative inputs and efforts would be made to develop better understanding with customers with regard to consumer demands and correlate it with the product so that appropriate advertisement strategy could be developed. 2.4 Mixed marketing The 4Ps of marketing along with Porter’s five force model have become a critical factor of success. In the contemporary times, the product, competitive price, promotional techniques and place also need to incorporate other issues. 2.4.1 Product, price and place The wide range of differentiating products at competitive price would be made available to the customers in trendy, state of the art coffee shop. ‘Bean Around the World’ would strive to become the best service provider in the field of fresh coffee, tea and snack. The café would ensure customer satisfaction through the relaxed ambience where they can enjoy and relax with their favourite music, television shows, books etc. The wi-fi internet would enable the customers to continue with their business while enjoying their break from the work with coffee. Indeed, the place would ensure that people can de-stress in comfort in short time. 2.4.2 Promotion The café would primarily be promoting its goods and services through its cyber presence. The colourful and interactive website would showcase its products and encourage people’s response. Its plan to cater to the online customers around London would greatly enhance its popularity. The coffee shop also plans to strengthen its online presence through social networking sites vis-à-vis facebook, twitter etc. where it can directly interact with the public. 2.4.3 Five forces’ analysis Porter’s five forces model of industry competition are highly relevant for the coffee shop. The five forces analysis of business is intrinsic part of competitive advantage (Porter, 1996). They which are: industry rivalry; bargaining power of suppliers; bargaining power of buyers; competition from substitute; and threat of entry. The industry rivalry amongst the Cafes and fast food centres is important criteria for introducing cutting edge differentiating element in the products to gain leverage. Coffee shop’s strategy to customize its products as per the changing requirements of the people would be its major strategic win. It would also ensure quality and customized products at relatively low cost and therefore it would be able to bargain with its customers. The quality and creative input within the product gives huge advantage to the suppliers and puts one in a bargaining position. The bargaining power of buyers is also reduced when there is short supply of quality goods which have great demand. In this case, the buyers increasingly prefer them because of their quality products which are distinctly differentiated from their rival through variety, customization and uniformity of state of the art service. In the contemporary environment of advancing technology, competition from substitute become highly likely and the company needs to adopt innovative approach to its marketing. ‘Bean Around the World’ would successfully meet this aspect by evolving flexible strategies like customized products and introducing elements of surprise within the products as well within the marketing of the products and services. Last but not the least is the threat from new entrants of the business. The globalization has provided facilitating grounds for new entrants and therefore, the existing firms must ensure that speed and flexibility become intrinsic part of their strategy. They become extremely important ingredients for the products so that the organizations can timely and efficiently meet the fast changing preferences of the customers. ‘Bean Around the World’ would competently use the concept and at the same time, it has also created the ambience that promotes its image of a lifestyle brand. 3. Need for more aggressive marketing Mixed marketing techniques are the most prolific example of integrated marketing communication. Viral marketing, broadly classified as the unorthodox techniques of emerging new marketing strategies, is low cost and has potential to reach to a larger audience. It has great potential of exponential growth through diversity of new approaches and initiatives in its market strategies. In the recessive trends and for a new business, this type of marketing becomes highly relevant. Using posters, balloons, pamphlets, sponsorship; utilizing various distribution channels like tickets, carry-bags to advertise its products; blogs, internet messaging etc. would help in promoting the coffee shop. One needs to be more open when Shultz (2001) say that it is the end-users who now control the markets rather than the marketers. ‘Bean Around the World’ must understood the compulsions of the contemporary times and adopt innovative and mix market strategy for its products and services to meet the challenges from its rival companies in the market. (1280 words) Reference Grant, Robert M. (2007). Contemporary Strategic Analysis. (6th edition). Blackwell. Porter, M.(1996). What is Strategy. Harvard Business Review, Nov/Dec 1996. Shultz, Don E. (2001). Bid Farewell Strategy based on old 4Ps. Marketing news; Feb 12, 2001; 35,4; ABI/INFORM Global. p 7. Read More