Marketing Plan. The Mission Statement Term Paper

Pages: 15 (5045 words)  ·  Style: APA  ·  Bibliography Sources: ≈ 21  ·  File: .docx  ·  Level: Master's  ·  Topic: Business

, 1994). They might inform the administration of the developments that can be completed in the teaching and management of sales and service workforce (Clark at al, 1992). To keep customer loyal and happy, company must integrate information based on complaints into established and trusted sources of intelligence within the company (Adamson, 1993, p.444).

5. Provide the following information about the marketing strategies:

a. Discuss the company's competitors, and its strengths and weaknesses.

The existing market share is concentrated at the top with brands such as Starbucks, Caribou Coffee, Coffee Bean and Tea Leaf, Diedrich (Gloria Jean's) and Peet's Coffee take the bulk of the shares. At the bottom, the share is quite fragmented and split. The strategy assumed by the top shareholders relies heavily on the location of the outlet. Most companies choose locations that are convenient for the drivers and pedestrians. Characteristic locations include suburban or downtown retail centers, university campuses office buildings and shopping malls. Some outlets are more spacious than other outlets. The decisions to have bigger or smaller outlets vary by the size of the local market and the location of the outlet. Some outlets, located primarily in airports and large malls and stores, even offer a kiosk format, i.e. without sitting space (Altmann, 2007).

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Term Paper on Marketing Plan. The Mission Statement Assignment

In the past the major reason why people preferred not having coffee was that it was considered to be very harmful for the health, but recently approximately 19,000 studies have been conducted to understand the advantages or disadvantages of drinking coffee and many of these studies were focused on finding out the relationship between the consumption of coffee and diseases like cancer or high blood pressure but no relationship has been found between these diseases and coffee, in fact, according to these researches it has become evident that the consumption of coffee is actually good for health. For the people of America and the American coffee industry this is very good news. According to Tomas DePaulis, PhD, who is a research scientist at Vanderbilt University's Institute for Coffee Studies, an institute that itself studies the effects of coffee on health says that It has become evident from the researches that coffee is far more advantageous than it is harmful for health. Since it has become apparent that for majority of people coffee is very healthy, it can be very beneficial news for the coffee industry (Franchise Direct, 2011).

Opportunities in the current American coffee industry:

The stimulating effect that the coffee has on people is one of the reasons why its consumption is increasing day by day. The extent to which the coffee industry is established in the American society can be judged by the fact that approximately 54% of the adult American population drinks it every day, which means that 400 million cups of coffee are consumed on daily basis in America. Not only do the people go to the coffee houses to get themselves coffee but this trend of socializing in the coffee houses, meeting people and going there just for the sake of relaxing has also proved to be a factor in increasing the consumption of coffee (Franchise Direct, 2011).

In America although the coffee industry is really established but there is still a lot of room for more coffee houses and bars as the demand for the specialty coffee is increasing day by day. This can be estimated by the fact that Italy has around 200,000 coffee bars while their population is only 60 million, whereas, U.S. has the population of around 290 million with only 21,400 coffee houses (Franchise Direct, 2011).

Although the specialty coffee market is not growing at the rate that it used to in the early nineties when the growth for the specialty market used to get doubled every two-year but this demand is still increasing. The reason that is given for this increase in demand is the growing trend of the American population towards the consumption of the premium-priced and up-market coffees. The availability of opportunities and the room for development in the coffee industry could be estimated by the fact that it was expected that the coffee sales would increase by up to 125% from 2005-2010 and that they would reach $18,839 million in 2010 (Franchise Direct, 2011).

The coffee industry has undergone a lot of change with regards to the way they used to serve the coffee, for example; now the trend of drive-thru, carts and kiosks has increased a lot, mainly because the 'on-the-go' American people who prefer getting their coffees this way in order to save time. All these drive-thrus and kiosks require very little investment to set them up and therefore, further prove the fact that there are a lot of opportunities available out there. In fact Massimo Zanetti Beverage Cafes USA INC has been offering the chance to franchise a Chock Cafe Kiosk for an investment cost as low as $20,100. A licensing agreement was signed between Borders Books and Music and Seattle's Best Coffee in 2004 according to which Seattle's best coffee was going to open their cafes in all the Border Books and Music Stores (Franchise Direct, 2011).

Emerging threats for (and from) the current American coffee industry:

One common threat that all the businesses and industries can face is of the economic recession which can not only reduce the revenue because of the inflation but can also reduce the customer's intake. This is exactly what is happening now-a-days as recession has over taken almost every business. This problem can be overcome by introducing offers to ensure that the customers get back to the stores and start consuming the coffee again, for example; Starbucks closed 7,100 stores all over the country in order to train their employees so that they could deal with the customers in a better way in order to ensure that they get an increase in the number of customers coming to their stores. Similarly, Seattle's Best Coffee introduced the buy one get one free offer to increase the flow of customers to their coffee houses (Franchise Direct, 2011).

One of the things that one has to keep in mind while running or planning to run a coffee house is the possibility of an increase in the costs of the dairy products which can't really be predicted but they can have a huge impact on the business (Franchise Direct, 2011).

The good thing about the coffee franchise business is that it is very diverse, for example; if a person doesn't have enough capital to open up a standalone coffee house he/she could open a drive -thru or kiosks, which require a lot less capital than a standalone coffee house would require. A good example of this kind of business is the Cuppy's Coffee and More Inc. which offer franchises for the Kiosks, Cart Unit, Mobile Unit and Full Service Units. Therefore, someone with even low investment capital can start a business as the franchise cost varies from $2,500 for a single Cart Unit to somewhere around $25,000 for a Complete Service Unit. However, the total beginning cost for a Cart Unit is approximately $27,000 to $56,900 and this cost includes the cost of the cart as well (Franchise Direct, 2011).

Before starting any kind of business there are a lot of things that needs to be kept in mind and same is the case with the coffee business. One not only needs to have a very solid business plan but also know your target market, an attractive location etc. All this is where using the franchise can help new entrants as they can provide the franchisee with good brand names, operating systems, extensive training program, trade mark, location, purchasing power and also lets them not worry about some of the hurdles that are always there while setting up a new business (Franchise Direct, 2011).

b. Determine the differentiation strategy in relation to the closest competitor.

The products that are being offered by the Cafe Coffee Time have a very distinct Indian taste to them and it is very evident that they had been trying to target the Indian customers with the coffee as well as the eatables. The products that they have in their stores are samosas, tikka sandwiches, biryani, masala sandwiches etc. (The Indian institute of planning and management, 2011). They have decided to diversify these products and add those products that offer a very distinct American taste to them in order to attract the American consumers.


In India Cafe Coffee Time has priced its products by keeping the young age group that it caters to in mind, for example; a cup of coffee at Cafe Coffee Time costs from Rs. 17- 54. Also, no drastic change in their pricing strategies has been noticed since the time that it has come into being and what little prices they have changed, they are because of the government taxes etc. (The Indian institute of planning and management, 2011). It is looking for the… [END OF PREVIEW] . . . READ MORE

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