Riadha Coffee House is a small, self-owned business in New York that sells hot coffee to the public, mainly working citizens and university students. The company is located strategically in the city where many university institutions and office complexes are situated. The location of the business is one of the strategic tools used to ensure the business succeeds in achieving its objectives. To evaluate the company’s capability to achieve its objectives, internal weaknesses, strengths, external threats, and opportunities (SWOT) are analyzed. External elements, including political, economic, social, technological, Legal, and regulatory (PESTL), are also analyzed. The company’s marketing plan and strategic analysis are based on SWOT and PESTL analysis.
The marketing plan highlights the strategies that will drive the company’s growth. The current profit margin is 30 percent, and the target is to reach 40 percent in the next two years. The improved profitability will consequently lead to improved shareholder returns and return on investment. In addition, the business plan aims at making the business more relevant to the changing environment to retain its value in society. It is, therefore, worth committing more resources and time to develop and implement the business plan that will assist Riadha Coffee House to rise to a higher level of operations.
Part B: Marketing Plan
Branding is an important aspect when it comes to marketing. A strong brand attracts customers to an organization and its products; therefore, it is an ingredient to a successful performance (Ferrell & Hartline, 2011). Riadha Coffee House is not an execution to this requirement, which entices for the development of a reliable brand. In this case, the brand name to be used is Riadha Coffee House, also the company’s name. A slogan is also an important branding tool because it is used in advertisements to attract customers. The slogan for the company is “Enjoy to the Last Drop,” an attractive watchword to entice the customers to flock in to confirm the claimed level of enjoyment to the last drop.
A logo is a visual tool to differentiate an organization and its products from competitors. An attractive logo is important because it demonstrates the quality of services and products offered. The Riadha Coffee House will use the following logo in its operation.
Brand extension is a business strategy applied to increase customer satisfaction by introducing additional products to complement the primary product. The primary product for Riadha Coffee House is hot coffee. The brand extension will include additional products such as cookies, chocolates, ice creams, and other eatables to satisfy customers with different tastes and preferences. The motive behind this move is to ensure that customers with different needs, as far as refreshments and snacks are concerned, have their needs satisfied (Ferrell & Hartline, 2011). In addition, this would increase the sales collected and profits earned by the company.
Time Table for the Plans Execution
To execute the business plan, it is important to have a clear implementation schedule. The plan will be executed within one year, while some activities will be conducted concurrently to ensure that the business will be up and running within one year.
|Phase 1||Presentation of the proposal and seeking the capital required||0 – 3 months|
|Phase 2||The acquisition and renovation of the business premises||3 – 4 months|
|Phase 3||Development of the organization structure and identification of skills required||4 -5 months|
|Phase 4||Acquisition of skills/human resource and training||4 -5 months|
|Phase 5||Lunching of the business||5 – 6 months|
|Phase 6||Advertisement||6th – months|
|Phase 7||Monitoring and evaluation of the operations and changes in non-operational areas||6 – 12 months|
The table implies that the business starts operations at the beginning of the 6th month. Between the 6th and 12th months, the management evaluates and monitors how the operations occur and rectify some areas that show weaknesses and functional challenges. At the end of the first year, the business will have fully stabilized in terms of capacity and operations. Advertisement for the first six months after the launching of the business assists in informing potential customers of the business’s existence and the products offered.
A positioning statement provides information about the unique features that make the company, the brand, and its products to be relevant and successful in the market. The Riadha Coffee House’s products and services will benefit consumers; the healthy and fresh coffee and other products will assist in refreshing customers’ needs without implications (Ferrell & Hartline, 2011). The users of the products, particularly young people in colleges and universities and employed individuals would find Riadha Coffee House an appropriate place to hang out and chat with their companions. Competitive strength will be assured because of the high-quality products, highly skilled and motivated employees, and affordable prices.
Innovation is another positioning driver to be used in Riadha Coffee House operations. In this case, modern technology would be used to improve the quality of services, preparation of products, business transactions, and communication (Rogers, 2001). For example, social media and email communications are used to reach out to customers and inform them about the products offered. In addition, it assists the management to know the perception of the customers about the organization and its products.
Riadha Coffee House is a self-owned business whose primary product is hot coffee. The businesses will be located in one of the main streets where many potential customers pass by during their daily activities. The business owns one outlet in New York and intends to expand to other streets and towns within the next five years. The location is unique because New York is a major city with many people within the targeted customers’ bracket.
The Mission Statement
Riadha Coffee House is on a mission to offer customers high-quality hot coffee and companion products. In the operations, Riadha Coffee House intends to demonstrate respect to customers, suppliers, and employees, who are the primary stakeholders to drive the business’s success.
The relevant marketing science of customer behavior
Customers’ behaviors influence their decisions when it comes to purchasing and consumption. Customers are either motivated or driven aware from purchasing a product based on a number of factors, including quality, price, tastes and preferences, and convenience, among others. Successful marketers try to understand the specific factors that drive consumer behavior by developing strategies to capture their interests. Riadha Coffee House identifies high-quality products and services, variety of products, close interaction, and interrelation as factors contributing to target customer behavior.
The identified factors will be considered when modifying marketing strategies. First, Riadha Coffee House values the need to provide various products to meet the different needs and tastes of the customers. Therefore, in addition to hot coffee, other products, including cookies, chocolates, and ice creams, will also be included in its market. Secondly, quality evaluation and monitoring will be conducted regularly to ensure that only healthy and fresh products are offered to the customers. Thirdly, the employees would be expected to offer high-quality services to the customers through communication and addressing their needs effectively.
Lastly, developing a customer database capturing their contacts will be an instrumental marketing backup. Sending messages to the customers regularly, particularly during special days such as holidays, birthdays, and weekend draws the attention of customers, a situation that drives them to repurchase and consume products offered at Riadha Coffee House. The identified strategies are important because they assist in convincing potential customers that Riadha Coffee House offers quality products (Rogers, 2001). Eventually, the business develops a pool of loyal customers that drive its revenue and profits and market share growth. Therefore, the overall growth and development objectives of Riadha Coffee House will be realized.
Ferrell, O. C., & Hartline, M. D. (2011). Marketing strategy. Australia: South-Western Cengage Learning.
Rogers, S. C. (2001). Marketing strategies, tactics, and techniques: A handbook for practitioners. Westport, Conn: Quorum Books.
Ryan, D., & Jones, C. (2012). Understanding digital marketing: Marketing strategies for engaging the digital generation. Philadelphia, PA: Kogan Page.