4006mfh- Principles Of Marketing Assignment Sample

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Introduction

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The fundamentals of a start-up rely on its business strategy, management and other perspectives. The proper execution of all these strategies can make the company gain competitive advantages in a specific target market. Bangor is a small city in Wales, UK and does not have a lot of coffee shops over there; hence starting up a cafe business over there can be a great idea for an entrepreneur. In this study, the business planning, strategy, and market analysis for a start-up called “Tocoffee” has to be discussed. Along with that, a set of recommendations can also be there for the betterment of the business in future.

Discussion of the start-up

Initially, the business plan is to start a coffee shop in a locality of Bangor, Wales to give the citizens of Bangor a supreme experience to taste the goodness of freshly ground coffee and beverages. Besides that, there can also be arrangements for different kinds of snacks and cookies. In case this business does well in Bangor, in future, the extension of this business can also be considered by the authority. The main theme of this coffee is decided to be the heritage of Wales and for that different sculptures, wall hangings and other pieces of decorations that represent the culture and heritage of Wales can be displayed there. 

Moreover, people can walk in and relax over there sitting in a peaceful environment with music. It is also thought to set up a small library in the cafe with limited collections of magazines and books so that people can spend quality time by engaging themselves in reading and playing music. The staff can be trained properly before joining the restaurant and it is decided to recruit local people to make some contribution to the well-being of Bangor. 

Marketing Mix

The 7Ps of marketing mix theory help an organization or business to set different clear objectives for the future of the business by analyzing the current situation. It also helps the business organization maintain a position and hold a reputed image in the market (Anjani et al. 2018). On the other hand, market mix refers to a set of tactics that mainly aims to meet the demands of the customers and help the organization to achieve its business goal. Therefore, the fundamentals are the same, hence 7Ps marketing mix theory is considered an important tool for explaining the objectives of the business providing a guideline for the future of the business or organization and giving a chance to gain competitive advantages (Do & Vu, 2020). The main 7 elements of this marketing mix theory are Product, price, place, promotion, people, process and physical evidence.

Product

Products design the deliverables of the company and also the additional services that the company is gouging to serve their potential customers. Meeting the core needs of the customers is the main aim of these products, hence the products are required to be designed accordingly (Komari et al. 2020). The main deliverables products of Coffee are different types of hot and cold beverages and exotic ranges of coffees made from freshly grounded coffee beans. Different ranges of tea are also going to be there. 

In cold beverages, there can be fruit juice, mocktails and different others. Paper from different kinds of freshly baked snacks can seek the attention of the customers. The deliverables services can be stated as a free wifi facility, a small library, a music system and a great peaceful ambience. Therefore, it is expected that the customers can enjoy services and in the future, different additional products and services can also be launched.

Price

In the marketing mix theory, this element is considered as the one and only “Revenue generating” element and the other elements are dependent on it. The main motto of any kind of start-up is to generate profit and to do that the price of all the products needs to be designed carefully and sensitively so that everyone can enjoy the services (Jindal & Aribarg, 2021). The pricing strategy also denotes the positioning of the coffee shop in the market. Therefore, the price is a highly sensitive element of this market mix and needs careful design. Therefore, Toffee decided to adopt a low-cost strategy at the initiation and also provide a range of inauguration offers so that the customers can easily be attracted by the offers. After that, the price hike can be considered depending upon the profit of the shop.

Place

The concept of this business is a physical store and not an online cafe initially, therefore people are requested to walk in and enjoy their delicacies (Cudny, 2021). The place for this coffee shop is decided to be in a busy area of Bangor so that the office and school college-goers can easily enjoy their services. In the case of the distribution chain, it is initially decided that only one branch can be there. After that, depending upon the profit and the impact that this cafe is making on the citizens of Bangor, the decision regarding the opening of other branches can be considered. 

Promotion

The most important element of the marketing mix is deciding the main appealing features and criteria of the products so that the customers can be easily attracted by the appealing advertisements of the products and the services (Yapari, 2020). In the initiation period, Tocoffee is required to make their promotion attractive. In this promotional process, Tocoffee can make proper use of social media platforms, other digital platforms and different newspapers. As this is initially in one city in the UK, then the Roadside hoardings and pamphlets can also work well for the company. 

People

As stated earlier the staff can be properly trained before going to this organization. Only the people from Bangor can be given priority regarding the recruitments. A set of codes of conduct and other values can be taught to the staff of this cafe. 

Process

The main goal of this coffee shop is to promote a smooth process and run a customer-friendly journey from the initiation of this project. For doing that, the support and cooperation from each staff and customer are expected. 

Physical evidence

This element is supposed to provide a range of tangible causes regarding the quality experience (Loo & Leung, 2018). That this cafe is providing. In this case, the potential physical evidence can be a union of the staff and members of the cafe, the local citizens residing outside the cafe area, and also the online reviews of the cafe can be an important part of physical evidence for Tocoffee. 

Therefore, it is expected that Tocoffee can make a significant profit by using this 7Ps marketing theory in their business process. 

Segmentation, Targeting and positioning

Along with analyzing the marketing mix for the upcoming business, it is also required to work on the STP strategy for the business. STP strategy stands for Segmentation, Targeting and positioning and collectively these three elements can decide the future of a start-up and can provide guidelines and recommendations for building the market reputation of the company (Kurniawan, Saudi & Wijaya, 2018).The STP analysis of to coffee is discussed here. 

Segmentation

This is the first element of STP strategy and provides guidelines regarding the creation of the market segmentation and allows this segmentation to create a significant impact on the behaviour of the cafe (Ç?nar, Yetimo?lu & U?urlu, 2020). The segmentation of Tocoffee can be done from different perspectives such as psychographic, demographic, lifestyle and beliefs and values of the customers. Therefore, based on these criteria the menus and services of Tocoffee can be decided. A current cafe market analysis of the city of Bangor is also going to be done to get an idea regarding the choices of the customers. However, before the initiation, to know the choices and likes and dislikes of the citizens of Bangor, different surveys, and interviews can take place. 

Targeting

Market targeting is the second important element of the STP strategy and provides ideas regarding the target market of an upcoming and existing business (Usman et al. 2020). Market targeting is dependent upon various factors in the case of Tocoffee such as the size of the market, money, Accessibility, business focus and different others. In this case, the main target market of Tocoffee is to grab the attention of the local citizens of Bangor and then to proliferate their business in the surrounding area in future. As it is a coffee shop for all ages of people, hence the menu selection and the present ability of the items are required to be up-to-date and classy. Along with that, the hygiene issue also needs to be monitored. 

Positioning

Positioning is the third stage of an STP strategy and it indicates the image-building of any organization in local as well as national aspects (Fayvishenko, 2018). Therefore, it is also a crucial element and Tocoffee is required to consider different positioning strategies for their purposes. A value proposition can be an important element of positioning and an attractive tagline of this cafe can attract the attention of a wide range of customers. "Come and experience the best coffee ever", can be a value proposition for Tocoffee, and it can help the customers to give try the new coffee shop. The marketing and positioning are correlated with each other; therefore, an effective marketing strategy can contribute to reputation building and image building for Tocoffee. Promotional activities can include digital promotion, pamphlet distribution and different others. 

Therefore, from this STP strategy an idea regarding the segmentation, targeting and positioning strategy of Tocoffee is obtained and justified and it is expected that in future, it can be helpful for this organization. 

Importance of market research

Market research is highly advised for every start-up for knowing the target market more closely and then work on the business strategy based on this. Along with that proper market research also helps an organization recognise their potential competitors in the same field of business (Dvorský, 2018). Thorough market research is highly advised to Tocoffee to get an idea regarding the potential competitors of this company. In the case of Tocoffee, proper market research can bring a range of advantages to the business, such as the decision-making process can be ber for this organization and hence, this company can customize their deliverables to serve a wider range of customers. Apart from that, the investment can also be secured as proper market research can give an idea regarding the ongoing trends of the market. Effective investment in the right domain can be possible for Tocoffee. 

The business opportunities can be clearer and the upcoming visions of this business can be clearer by this (Serrado et al. 2019). A customer-centric approach can be established and customer satisfaction can be escalated by the quality services that are going to be provided by Tocoffee. An idea regarding the product service of Tocoffee can be obtained by doing proper market research. Before entering a new market, any company is always advised to conduct proper marketing research, so that the economic and the other advantages of the market can be obtained by this company. This also helps in achieving competitive advantages in a completely new market. 

The market research activity of Tocoffe can include analyzing the current trends of Coffee in the market of Bangor. Along with those interviews, surveys can also take place to know the choices of customers closely; therefore the deliverables of this company can be designed accordingly as per the choice of the customers. Competitor analysis is also regarded as a part of market research (Dalpiaz & Parente, 2019). The recent products, customer satisfaction trends and revenue need to be monitored by Tocoffee in the Bangor region so that a clear idea can be obtained through this. Along with that, product analysis is also regarded as an important part of market research and in this aspect; Tocoffe is advised to analyze different products, delivered by their competitors of them and then process their products accordingly. In this way, the market research can be done by Tocoffee.

However, it is expected that Tocoffee can do a proper market analysis before the initiation of the new project. This market analysis can provide Tocoffee with a better chance to know their customer well and closely. This can help in future also, to know the market of their future endeavours too. Hence the overview regarding the industries, the suppliers and the potential customers can also be helpful for proper business analysis and the management in future. The decoration ideas and decorative pieces collection is also needed to be based on proper analysis of the heritage of Bogor, as this cafe is going to represent the heritage of Bangor as well as of Wales. 

Recommendation for the business

Analyzing the upcoming market trends of cafe business in Bangor and the possible dynamics of business in Bangor, a set of recommendations is made for Toffee to uplift the business pattern and trends of this business. The list of recommendations is stated below

Different options regarding the selection of deliverables, the basic theme of the restaurant, the appearance and the customer service are going to be studied thoroughly before starting the business.

• The location is required to be good enough to catch the maximum number of customers and the rent of the appointment is also needed to be reasonable here Bangor, Wales is chosen (Hartmann et al. 2019). 
• The atmosphere is needed to be relaxing and comfortable and make a person bound to spend a good amount of time over there.
• The customer service needs to be updated and the staff are advised to be friendly with the customers (Lee & Lee, 2020).
• Customer loyalty is always recommended and a trustworthy relationship with the staff and the customers are expected. 
• To coffee is also recommended to deliver freshly brewed coffee and a wide range of snacks to attract the customers and also the quality of the food is needed to be good.

Conclusion

This study is based on an analysis of the business strategies for an upcoming business start-up called "Tocoffee" in Bangor, Wales. For doing a business analysis firstly the main dimensions, approaches and other sides of the business are analyzed. For the marketing mix analysis, this study has taken the help of the 7P marketing mix theory and with the help of this theory, all the 7 elements of this theory are evaluated for Tocoffeee and also proper justification is made. After that, the Segmentation, targeting and positioning strategies for Tocoffee are also analyzed here. Along with that a value proposition is also made for this upcoming Cafe in Bangor. Lastly, a list of recommendations is also made for the betterment of the service quality and phenomena of the business. It is expected that with the help of these recommendations and proper analysis of the marketing theories, Tocoffee can make a significant market position in Bangor and other parts of Wales soon.