KAVV Marketing Strategies - Case Study Example

The marketing plan

The marketing plan is structured to make sure that the business stands a chance against its major competitors. For the business to develop and make more profits in future, it should consider the 4Ps of a marketing plan. KAVV internet café will have to establish itself in an environment which is good for the operation of the business for it to succeed against its competitors. The main aim of the business is providing quality services and this can be achieved through the formation of an appropriate marketing plan which will help the business to succeed.

The pricing plan

Due to the presence of various competitors in the market, the pricing strategy of my business will be structured in a way which will make the business attract more customers. The prices of the different services and products which are offered in this business are set at affordable prices which will attract many customers to the firm (Burrell, 2012). The products and services offered are quality thus enabling the business to stand a chance in competition with the other firms in the market. The analysis of the buying patterns of the customers shows that offering quality services will skew the customers to the services which are offered by the company. This is good for the company since it aims at making a good first impression in the market by charging friendly prices which will improve its market share. In coming up with a correct charge for the internet services offered by this company, we consider the cost of other internet servers. This helps in determining the price since the servers and the internet providers use different schemes of pricing which makes the price of the internet to vary. In this case, my business will use the local networking server which is cheaper and more effective since it provides high download speeds. Using the monthly subscription on the internet services in this company, KAVV internet café will provide high speed internet services and also this will automatically determine the cost which is going to be charged to the customers in this market.

. To determine how the prices of services will cost, the business will have to do some costing and pricing. This will include the direct costs and indirect costs. The formulae which is used in determining the rate per hour is; Rate per service hour= Direct cost per hour + Charge for gross profit per hour. The charges of the profit per hour include indirect costs and the profits which are expected to be derived from the business operation.

Some of the competitors in the market use a pricing scheme which incorporates both the monthly and hourly charges of the internet providers. Therefore, this causes a great threat to the survival of the firm in this market. The development of KAVV internet café will depend on a comparison of the prices of the competitors in order to come up with a price which will favor the consumers of internet services and also face away the competition in the market (Roberts, 2012). Using a market survey in the market, the business will know the correct pricing of the service offered which will enable the firm to stand a chance in competition. The table below represents the different prices which are offered by the competitors in this market which will help the business to come up with an effective pricing plan.

Competitors

Prices of internet services on hourly basis

Java net internet haven

₤4

Mobinet internet firm

₤4.3

Michelson internet cafe

₤ 4.1

From the table it is evident that setting the price at a lower level than the competitors will make the business have more sales as compared to its competitors. The price which is charged by the firm is 3.9 pounds. The fact that my business will include provision of drinks and food at an affordable fee will make the sales to grow since the people will be able to access internet services while taking drinks and food. To the loyal customers who are honest and reliable to the firm, my business will offer credit services(Valancius, 2011). They will be allowed to browse at 3.8 dollars after the first hour of using the internet services. This will help to maintain customers and encourage customers to browse more for less charges.

Place

The location of KAVV internet café will determine the number of customers it gets. The strategic location of this business in a place whereby there are many middle aged people will improve the sales of the company since they are the people who mostly use the internet services. Another factor which will determine the location of this business will the cluster of competitors in a given location. A place whereby there are many firms offering the same product is not suitable for the operation of the business, but a place whereby there are few firms offering internet services and many middle aged people will be the correct place to structure up the business. The price of the structure where the business will be hosted will also determine the location of my business. A place whereby the monthly wages of shops are expensive will not be effective in putting up the business, but a place whereby the wage price is cheap will be favorable for setting up the business. Therefore, after several considerations on the site of placement of the business, the business will be located near a shopping mall where the number of middle aged people are more. The prices for rent in these places are considerably cheap as compared to the expected profits which are going to be reaped from the business operation. There are many middle aged people which will make the sales to be more. The location of the business is favorable because there is a large parking lot which will be able to accommodate many people. Also the place is spacious therefore it can hold more than 100 people at once without congestion. The proximity of the business to the downtown business community is high which makes the place very appropriate in carrying out the business activities. The business location is visible since it is located on the way to the shopping mall. The distance between the business and the shopping mall is 100 meters which makes it easily accessible to everyone.

The product

My business will use some accessories which are acquired cheaply to make sure that the capital needed to start the business is not much. KAVV internet café will use wide screen TFT screens which have a high processing power and high connection speeds to the internet. The high processing speed of the system units will enable the computers to open many tabs at the same time without hanging. This will provide the value of the money paid in by the customers since they are able to browse fast and effectively. The internet speed will be determined by the connectivity used. My business will connect to one of the fastest networks, which is not limited even with the location of the business. The connection of the high internet speeds and also the system units make the internet sensation in KAVV worth coming back for more. The wide screens enable the users to view easily without straining to get the information required.

Apart from the internet services, KAVV internet café will also provide food and drinks to the regular customers which keeps the customers satisfied. The customers, do not need to go outside to find food and drinks because they are provided in the business premise.

Promotion

For my business to pick up promotional campaigns will be required. This will give the customers an opportunity to try out the services of the business and compare it with others. Promotion activities enable the business to develop linkages and get networked to other customers. The promotional strategies which are pulled up will build the awareness to consumers of the existence of the business premise. The strategies which are used by KAVV include putting banners outside the shop which explain the services which are offered by the organization and also the prices of the different services offered, foods and drinks(Westwood, 2013). To the customers who are out of reach, the market researcher in the business will email the target customers, which will create an awareness about the existence of the business and the cheap services which it offers. Due to the existing competition in the market, there is need for additional investment in promotion which will enable my business to gain a big market share.