MKTG6002 Marketing Report Sample

MKTG6002 Marketing Report

Objectives:

• To develop an understanding and appreciation about the influences of micro and macro environmental actors and forces that affect an organisation’s ability to serve the needs of the target market; To develop critical analytical ability to gather and analyse relevant data to facilitate decision making;

• To develop foresights to predict industry trend and tailor the organisation's practices to respond to the changing situation.

Linkages between Assessments 1 and 2:

Assessment 1 requires students to undertake the SWOT/TOWS analysis (Case Study will be

Provided on Blackboard). Students are advised to conduct comprehensive research through the Torrens Library database. The assessments 1 and 2 are interlinked where students need to summarise the situation analysis from their assignment 1 while discussing this section within the assessment 2, the marketing plan.

Instructions:

This assessment task entails you to develop a Marketing Environmental Analysis that comprises both the micro-environment and macro-environment. The micro-environment analysis involves a scrutiny of internal environment that facilitates specifying the strengths and weaknesses, while, the macro-environment analysis requires the scrutiny of demographic, economic, natural, political, technological, and cultural (DENPTC) dimensions which will assist in specifying the opportunities and threats. Changes within the macro environmental forces are outside of an organisation's direct control entailing an organisation's marketing strategies to be adjusted to capture emerging opportunities and minimise any potential threats. Therefore, in this assessment task you will need to:

• Articulate your learning about marketing concepts and principles covered from Module 1 to 3.1 to demonstrate your level of understanding to evaluate the organisation's overall situation;

• Critically analyse the link between marketing theory and practice;

• Demonstrate research skills to reveal the insights;

• Apply appropriate business report writing skills;

• Discuss appropriate strategies with regards to your SWOT analysis.

• Use the appropriate APA style both in text citation and the reference list at the end. You should use at least 10 relevant academic references from leading marketing journals and textbooks to showcase quality of your research. Please see more information on referencing here:

• https:// library.torrens.edu.au/academicskills/apa/tool

Solution

Introduction

The purpose of this report is to analyse the given case study and develop a marketing environmental analysis comprising both macro as well as micro environment, based on internal organizational capabilities and external environmental factors. According to the MBA Assignment Experts Overview, The report demonstrates the value proposition, buyer behaviour, and core brand values of the given case study organization. Based on relevant marketing theories, conceptual framework, and industry insights, this report also outlines effective marketing strategies that might enable the organization to expand across international markets effectively. Additionally, the report aims to critically evaluate customer requirements for creating value for consumers through development of organizational resources in the most efficient manner. Thus, this situational analysis report is based on the case scenario of an Australian wholesale coffee roasting company named Di Bella Coffee. While marketing the brand internationally, the company Di Bella Coffee attaches great significance to corporate social responsibility. Being passionate about sustainable growing of coffee beans, the company works closely with farmers and their communities to actively promote sustainable production of coffee to create a better world in future.

Value Proposition, Core Brand Values and Buyer Behaviour

According to (Byrnes, Khodakarami, & Perez, 2016), the concept of value proposition refers to the unsaid promise made by a business entity to deliver unique values to its customers. The value proposition of Di Bella Coffee focuses on creating a unique brand strategy. This covers premium quality coffee, effective service through customer intimacy, and the overall environment of the coffee shop that allows a strong sense of belongingness and community. Di Bella creates value proposition for customers through a strong brand positioning (Di Bella Coffee, 2022). Thus, the success of the coffee roaster is based on its unique value proposition of offering premium coffee. Core brand value is defined as the essence of products or services that make any brand unique, special, valuable, differentiated, and successful in the market. The core values of a brand create the overall personality of the brand. In case of Di Bella, the coffee roaster is passionately driven towards providing high-quality coffee products along with unparalleled customer services to all customers (Beig & Nika, 2019). Along with value proposition such as gain creators, quality product and service excellence, and pain relievers, core brand values of Di Bella have led the company to become a key player in the Australian coffee industry, For years, Di Bella coffee has been striving hard to offer value services along with an expansion of business operations across the booming Asian market (Lucas-Alfieri, 2022). The brand soon launched a new coffee category, namely espresso coffee as well as instant coffee that led to the development of TORQ, a new innovation of the brand. Thus, the brand focuses on creating a unique experience of coffee consumption, delivering quality service, and ensuring transparency and performance through the core principle of humanity. 
 

Figure 1: Value Proposition
Source: (Di Bella Coffee, 2022)

According to the research (Krishnan, 2017) the consumer buying behaviour around coffee in Australia has positively transformed with an increased number of customers who continue to educate themselves regarding the significance of buying as well as sourcing coffee in a sustainable manner. It has been identified by the study that the Australian coffee lovers are attempting to reduce impact on the planner by shifting to sustainable means and altering regular coffee rituals such as investing in reusable cups or purchasing sustainable coffee. The market research (Sammut-Bonnici & Galea, 2015) suggests that the Australian coffee industry is amongst the top-performing industries globally and coffee forming an important part of the country’s cultural identity. Over the past few decades, the overall coffee imports of Australia have nearly doubled, fuelled by the ever-rising appetite for good-quality coffee. So, the increasing demand of coffee in Australia is expected to cause a shortage of supply in upcoming decades. Di Bella Coffee has been making deliberate attempts over the years to evolve strategies for adapting to changing customer behaviour and to ensure customer involvement through various brand activities (Hawkins, 2019). 

Analysis of Macro-environment

This analysis refers to the most common and effective analysis of PESTEL analysis that covers factors like political, economic, social, technological, environmental, and legal. 

PESTEL Analysis

Political – The coffee business is dependent on international trade relations to a great extent. The largest coffee producers are located in Africa, Asia, and South America, and so Di Bella Coffee has considered marketing TORQ internationally by exporting products to the Chinese as well as Indian markets, both offline and online. The strategic decision of the brand to expand in developing economies is based on the effective trade relationships between nations that produce as well as consumer coffee, and this also determines the price tag for the product that ultimately impacts on global sales (Li & Sun, 2015). 

Economic – With the continuous growth of major world’s economies, the overall income of people grow, which means they have better purchasing power to spend on various items ncluding coffee as a refreshing beverage. With growing incomes, people tend to indulge in luxury and quality beverages such as superior quality coffee. The company owners of Di Bella believe that an effective way to operate competitively in the international market is by offering products globally where marketing, manufacturing, research and development and advertising are done economically. The brand makes the most of expanding into the developing economies where there is a steady increase in the income of people. 

Social – Nowadays, people are making a healthy choice that leads them to maintain a healthy lifestyle and reduce consumption of caffeine and other unhealthy beverages. As various studies have shown that coffee is an unhealthy beverage, growing awareness and health consciousness amongst global coffee consumers has led them to reduce coffee consumptions (Maciejewski & Mokrysz, 2020). This will have an impact on the overall demand for coffee not only in Australia but across the globe in the upcoming decades. 

Technological – Developments in coffee appliances make it easier to consume the product anywhere and people need not go outside anymore to consume coffee. This can have positive and adverse impacts on a business like Di Bella Coffee. It is also one of the first coffee chains to use a digital interactive platform across all stores across locations. The software allows easy interaction and social connection to global customers, and this promotes the brand’s reputation as a customer-oriented brand. 

Environmental – Consumers have become increasingly aware of the environmental concerns and they prefer sustainable farming more than ever. Although sustainable farming is associated with increased cost of products that may harm the coffee market globally, yet environmental awareness amongst global consumers is what driving the coffee industry. While marketing the brand internationally, the company Di Bella Coffee attaches great significance to corporate social responsibility (Mukhopadhyay, 2019). 

Graph 1: Coffee Use

Source: (Kripal, Chandrasekaran, Bhavanam, & Kumar, 2019)

Legal – As a part of legal factors, food standards are crucial for companies like Di Bella and these companies are subject to various laws in terms of production, storage, transportation, and brewing (Ilhan & Durmaz, 2015). These standards will make difficult for companies to handle and operate in the industry. An important aspect of legal consideration for the brand is to take into account all legislative regulations and laws so that the company may operate in the target market effectively and abiding by national standards and regulations. 

PESTEL Analytical tool; Source: (Alanzi, 2018)

Micro analysis

Key Competitors

Some of the key competitors of Di Bella include Starbucks, Dunkin Donuts, McDonald’s and other local coffee shops and stores. With each day, the market competition is growing steadily leading to reduction in price, improvement of quality, and promotion of sustainable farming practices (Sammut-Bonnici & Galea, 2015). Although market competition exists in the developing markets, Di Bella focuses on the Chinese and the Indian markets due to the increased demand for coffee, increased income levels, and cost-effectiveness in terms of cost of farming, manpower, etc (Rahardjo & Hasbullah, 2019). 

Source: (Palazzo, 2020)

Supplies:

The trade relationships between Australia and these Asian countries are strong enough to allow significant business expansion of Di Bella in the Indian and the Chinese markets. Another social aspect to be considered is fair trade, which refers to a movement to compensate food producers/farmers directly by discouraging middlemen. Coffee market is a prominent market for this movement, and with rising demand for fair trade in coffee industry, farmers will have increased earning. Being passionate about sustainable growing of coffee beans, the company works closely with farmers and their communities to actively promote sustainable production of coffee to create a better world in future. 

SWOT Analysis and TWOS Matrix

Strategic Recommendations

There are several opportunities for the brand such as market expansion in developing economies like China and India, scope of introducing new products in target markets based on tastes and preferences, scope of partnerships and franchising, exploiting latest trend and technology in the coffee industry, and improvement in delivery services. These opportunities exist when it comes to marketing globally, and may yield better outcomes of the business both financially and brand image. The company need to accurately test the concept of pickup locations as well as curbside to decrease crowding at cafes to offer people a strong commitment that will positively impact the world by promoting a warm atmosphere where every individual could feel the homely comfort. With the increasing global environmental issues caused by automobile emissions, industry wastes, and unsustainable farming, there is a shift in the way farming is done nowadays. It needs to focus on offering premium quality coffee with effective customer services.

Conclusion

To conclude, the company considers maintaining effective relationship with internal and external customers to develop and position itself as a reputed coffee brand. The company is open about experiencing change and accommodating themselves within the pace of global innovation. Thus, the company needs to develop proactive marketing strategies to cater to the needs of the internationalization of business. 

References

Beig, F., & Nika, F. (2019). Brand Experience and Brand Equity. Vision: The Journal of Business Perspective. https://www.researchgate.net/publication/336340978_Brand_Experience_and_Brand_Equity

Byrnes, W., Khodakarami, N., & Perez, C. (2016). The value chain: A study of the coffee industry. https://www.researchgate.net/publication/326786435_The_value_chain_A_study_of_the_coffee_industry

Di Bella Coffee. (2022). Retrieved from https://coffeebydibella.com/https://coffeebydibella.com/

Gürel, E. (2017). SWOT ANALYSIS: A THEORETICAL REVIEW. Journal of International Social Research. https://www.researchgate.net/publication/319367788_SWOT_ANALYSIS_A_THEORETICAL_REVIEW/citation/download

Hawkins, J. (2019). Why integration marketing : essential of integrated marketing communications. Scribl. Retrieved.https://lesa.on.worldcat.org/search?queryString=Marketing%20strategies&clusterResults=true&stickyFacetsChecked=true&groupVariantRecords=false

Ilhan, A., & Durmaz, Y. (2015). Growth Strategies in Busınesses and A Theoretical Approach. International Journal of Business and Management. https://www.researchgate.net/publication/283644997_Growth_Strategies_in_Businesses_and_A_Theoretical_Approach/citation/download

Kripal, K., Chandrasekaran, K., Bhavanam, S., & Kumar, P. (2019). coffee consumption. International Journal of Scientific Research. https://www.researchgate.net/publication/332036980_coffee_consumption

Krishnan, S. (2017). Sustainable Coffee Production. Oxford Research Encyclopedia.https://www.researchgate.net/publication/318358952_Sustainable_Coffee_Production/citation/download

Li, X., & Sun, C. (2015). A Study on the Core Values of the Brand. Journal of Service Science and Management, 868-875. https://www.researchgate.net/publication/287971389_A_Study_on_the_Core_Values_of_the_Brand

Lucas-Alfieri, D. (2022). Marketing the 21st century library : the time is now . Elsevier. https://lesa.on.worldcat.org/search?queryString=Marketing%20strategies&clusterResults=true&stickyFacetsChecked=true&groupVariantRecords=false

Maciejewski, G., & Mokrysz, S. (2020). New Trends in Consumption on the Coffee Market. https://www.researchgate.net/publication/338490476_New_Trends_in_Consumption_on_the_Coffee_Market

Malhotra, N. K. (2016). Marketing in and for a sustainable society. Emerald Group Publishing Limited. https://lesa.on.worldcat.org/search?queryString=Marketing%20strategies&clusterResults=true&stickyFacetsChecked=true&groupVariantRecords=false

Mukhopadhyay, J. (2019). Supply Chain Management in Coffee Industry in India. https://www.researchgate.net/publication/341029852_Supply_Chain_Management_in_Coffee_Industry_in_India

Palazzo, M. (2020). Beyond multi-channel marketing : critical issues in dual marketing. Emerald Publishing. https://lesa.on.worldcat.org/search?queryString=Marketing%20strategies&clusterResults=true&stickyFacetsChecked=true&groupVariantRecords=false

Rahardjo, B., & Hasbullah, R. (2019). Coffee Shop Business Model Analysis. Integrated Journal of Business and Economics. https://www.researchgate.net/publication/333854649_Coffee_Shop_Business_Model_Analysis/citation/download
Sammut-Bonnici, T., & Galea, D. (2015). SWOT Analysis. https://www.researchgate.net/publication/272353031_SWOT_Analysis