Principles and Practice of Marketing - Coursework Example

Principles and Practice of Marketing Table of Contents Executive Summary 3 Introduction 4 Discussion 4 Marketing Plan 4 Analysis of the market 4 Business proposition 6 Action Plan 7 Evaluation 8 Recommendations 8 Contingency Plan 8 Conclusion and reflection 8 References 10 Executive Summary In this project factious organisation is name Sweet Cafe which operates in the market of United States. Its prime mission is to offer quality products in competitive price so as to increase its market share and profit margin. Other than this in order to increase its customer base, it penetrated the UK market and implemented the strategy of cost leadership. Along with this it also implemented varied types of discounts and incentives to the couples and students. Introduction In this age of competitiveness and high bargaining power, sustainability is the most desired dream of any organizational entrepreneur. This might be possible, only if the entrepreneur of an organization introduces varies types of inventive products. It might help the organization to satisfy the changing requirements and demands of the customers in an effective way. So that it might enhance the profitability and productivity of the organization in the market among many other rival players. Similarly, the entrepreneur of the organization named ‘Sweet Cafe’ also desired to attain a competitive position and brand image in the market of United States among many other rival contenders. However, in order to do so, the organization needs to undertake a marketing plan, prior introducing any new product so as to make it successful in all aspects. Only then, the market demand and reputation of the organization might get enhanced to a significant extent as compared to other contenders. Discussion Marketing Plan Analysis of the market The organization of ‘Sweet Cafe’ is a newly opened organization in the market of United States, which is extremely competitive. Due to which, the organization of ‘Sweet Cafe’ always tries to develop newly developed product with varying flavours such as Doppio, Decaf and Black eye and many others. Only then, inspite of being a small organization, operating locally in the market of US might enhance its range of customers and brand value as compared to its biggest competitor, Starbucks. Not only this, it might also increase its popularity and market share thereby amplifying its productivity and reliability within the minds of the local customers. This might become one of the noteworthy strengths of the organization of ‘Sweet Cafe’ as compared to others. Not only this, another important strength of the organization of ‘Sweet Cafe’ is to offer high-quality products at a competitive price, so as to attract a wide range of customers. However, the most important weakness of the organization of ‘Sweet Cafe’ is lack of reputation and image in the market. On the other hand, the most important strength of Starbucks is high reputation and brand image in the market of United States that proved effective in enhancing its customer bases and profit margin. But due to quite high price, the organization of Starbucks might only attract the premium range of customers, which is quite profitable on behalf of ‘Sweet Cafe’. However, inspite of low reputation and image, the sales trend of the ‘Sweet Cafe’ is quite high due to its high quality of products as presented in the below figure. Source: (Bradley, 2007) But in order to enhance its market demand and brand value of its products, the organization of ‘Sweet Cafe’ tried to make an estimation of its total sales and total revenues in the coming years. So that the market share and productivity of the organization might get enhanced by almost 50 percent as compared to previous year. Sales forecast of Sweet Cafe March, 2014 April, 2014 Sweet Cafe, Espresso $ 2 $ 3 Sweet Cafe, Decaf, Doppio $ 3 $ 4 Sweet Cafe, Black Eye $ 2 $4 Total sales $7 $ 11 Business proposition In order to improve the sales and total profit margin of the organization of ‘Sweet Cafe’, it tried to penetrate into the markets of United Kingdom. However, in order to position its products and reputation, the organization tried to offer the best quality and taste of coffee So that, it might present a unique feeling within the minds of the customers thereby amplifying their reliability and trust over the brand as compared to others. Apart from this, it also tried to offer the products at a lowest competitive price so as to attract a wide range of customers. By implementing the cost leadership strategy, the organization of ‘Sweet Cafe’ might target the customers of all age-groups and all income groups. Only then, the profitability and dependency of the organization might get increased that may proved extremely effective for it in future age. Furthermore, the organization of ‘Sweet Cafe’ also desired to offer high-ended discounts to the college or university students in order to retain them for longer period of time. By implementing this strategy, the organization might increase its customer base thereby amplifying its net income and total revenue. As a result of which, the organization might reduce its business threat of substitute products and new entrants. Orther than this, the organization of ‘Sweet Cafe’ also desired to offer the facility of WiFi for the youths so as to make the ‘coffee-time’ more interesting and enjoyable. This strategy might also act positively over the organizational profitability thereby enhancing its demand and consistency in the market. Action Plan Product proposition In order to increase the level of awareness and demand of the organization of ‘Sweet Cafe’, it tried to offer varied types of flavoured coffee such as flat white, Breve, Caramel, Iced coffee and many others. By doing so, it might become successful in attracting a wide range of customers of varying income groups and age-groups. This is extremely advantageous for the organization of ‘Sweet Cafe’ thereby amplifying its consistency and trust. Apart from this, in order to improve the market share and brand value of the organization of ‘Sweet Cafe’, it might try to implement competitive pricing strategy. By doing so, it might become successful in presenting the products at the lowest price that may increase its customer base and demand. Along with this, by implementing such type of strategy, the level of uniqueness and popularity of the organization of ‘Sweet Cafe’ might also be increased to a significant extent. Moreover, the organization also might try to offer varied types of discounts for the newly wedded couples so as to increase its awareness and reputation in the market among others. Other than this, due to the presentation of such types of discounts, the total sale of the products of the organization might also be enhanced to a considerable extent as compared to its competitor, Starbucks. In addition to this, in order to increase the range of sales and profit margin of the organization of ‘Sweet Cafe’, it desired to locate its outlets in such a position that might be easily accessed by all the customers (Bradley, 2007, pp. 123-134). This might help the organization to improve its profitability and position in the market of United Kingdom as compared to the other rival players. Not only this, in order to retain the customers for a long period of time, the organization might try to recruit the best quality of suppliers so as to attain the best ingredients. Only then, the organization might offer the best quality of products at the best price to its customers. Furthermore, the organization of ‘Sweet Cafe’ also tries to promote the features of its products in social media’s, online sites and banners so as to attract a wide range of customers. Other than this, it tries to offer a high-quality of customer services so as to satisfy their demands and requirements. This might help the organization to amplify its profitability and market value among others. Evaluation If the above mentioned strategies and policies are used in an accurate way, then the organization of ‘Sweet Cafe’ might increase its total sale targets and total revenues. Along with this, it might also increase its customer bases and market value as compared to many other rival contenders. As a result of which, the brand image and popularity of the organization might also get enhanced, significantly thereby amplifying its position and sustainability among other rival players. Recommendations In order to amplify the total revenue and profitability of the organization of ‘Sweet Cafe’, it may try to introduce products such as light snacks and desserts. This might help in improvement of the image and reputation of the organization in the market among others. Along with this, it might also increase the total revenue of the organization of ‘Sweet Cafe’ in the future era. Contingency Plan In case, the project is not successful in all aspects, then the organization of ‘Sweet Cafe’ might try to offer its products at a distinctive price. Then, it might help in enhancement of the total sale and profitability of the organization to a significant extent among others. Conclusion and reflection Conclusively, it might be stated that due to the implementation of such type of strategies and policies, the profitability and demand may get improved. Along with this, implementation of such type of strategies might also increase the brand image and market share of the organization thereby amplifying its prosperity and popularity in the market of United Kingdom as compared to many other rival contenders. As a result of which, the strengths of the organization might get enhanced thereby reducing its weaknesses as compared to others. This might prove extremely effective for the organization that may increase its consistency and uniqueness in the market to a considerable extent. Thus, it might be clearly stated that, in order to retain the position and demand of the organization, presentation of appropriate products at an effective price. References Bradley, N. 2007. Marketing Research: Tools & Techniques. New York: McGraw-Hill. Read More