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MOHAMED NAJEEM

3/25/19
STRATEGIC MARKETING MANAGEMENT

As per my understanding the heart of any business success lies in its marketing techniques as it
allows the organization to realize what exactly what to sell to customers. The most perspective of
your business depends on successful marketing. Marketing management simplifies the activities
and functions which are involved in the distribution of goods and services. According to Philip
Kotler, “Marketing management is the analysis, planning, implementation and control of programs
designed to bring about desired exchanges with target markets for the purpose of achieving
organizational objectives.” Marketing management has obtained importance to meet thriving
competition and the need for developed strategies of distribution to reduce cost and to increase
profits. Marketing is very beneficial for the transfer, exchange, and movement of goods. Marketing
management today is the most important function in a commercial and business enterprise. To
understand the importance of marketing in the real time business world, I have chosen and done
research in Coffee Cream which is coffee shop.

Coffee Cream can be viewed as the only premium Coffee Shop in Changuvetty, Kottakkal, Kerala
established in 2015 by Farooq and Saleem. It is the one of the well-crafted and ambient focused
coffee shops among the Kottakkal region. Pastries and Cakes are the items on their product range
from which the organization make its majority of the profit currently. They are focused on
providing the best tasting cakes for their customers in the present market but the price is bit
premium when compared to the rivals around them. They are probably the one who are not ready
to compromise on quality either, they argue that these factors are the one which differentiates
Coffee Cream from others of their present market. They don’t operate in multiple region other than
the first business unit in Chenguavetty. They argue that they never mind the competition or about
competitors around them, but the reality is bit different as there are coffee shops like Cream Castle
which operate close to Coffee Cream and has almost the same product range but priced
aggressively, therefore it is or could be a competitor for the organization.

LO 1: Understand the principles of strategic marketing management

1.1 Discuss the role of strategic marketing in an organization

Strategic marketing is a method through which an organization differentiates itself from its
competition by focusing on its strengths to provide better service and value to its customers. In a
nutshell, the goal of strategic marketing is to make the most of an organization’s positive

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differentiation over its competition through the consumers’ perspective. Strategic marketing is the
way toward coordinating all business viewpoints to the marketing target of the association.
Procedures in strategic marketing comprises of breaking down business condition, rivalry,
recognizing market openings and dangers and forecasting future plans and taking an interest in
setting destinations and formulating corporate and business unit strategies.

A firm should set its marketing actions such a way so that it can achieve customer satisfaction and
organizational goals. It should include planning and executing of the ideas of conception, pricing,
promotion and distribution of goods and services in order to satisfy customer. To achieve these
objectives Coffee Cream might approach towards strategic marketing. It is more structured process
because it helps to identify its resources and opportunities to achieve sustainable competitive
advantage in the market. Moreover, it aims at to analyze and evaluate organizational effectiveness.
Coffee Cream can achieve better understandings about its existing and potential customers by
communicating through marketing activities. We can enumerate the role of strategic marketing in
Coffee Cream as below:

 It can assist Coffee Cream to understand customers’ need and demand so that new areas
can be opened.
 It relates marketing strategy with business strategy.
 It structures Coffee Creams future direction strategically.
 It assists to increase organizational effectiveness and revenue.
 It helps to identify and create new opportunities for the organization.
 It considers customer voice to take decision about various aspects.
 It helps to develop proper marketing structure.

Strategic marketing is a method through which an organisation differentiates itself from its
competition by focusing on its strengths to provide better service and value to its customers. The
goal of strategic marketing is to make the most of an organisation’s positive differentiation over
its competition through the consumers’ perspective. Tactical Marketing refers to the actions a
company takes in order to market a product. These actions generally include generating leads,
placing ads, building websites, creating brochures and other mailings and implementing a follow-
up system. Tactical marketing is the way the product is placed in front of potential customers. In

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the strategic marketing, it is concerned with the long term and has a broad focus, covering
competitive positioning and the development of new products while Tactical marketing has its
focus on the short term, and day-to-day marketing activity such as price discounting and customer
communication (Roberts, 2019). So, from this understand that the Strategic marketing is having more
future preference and it have a good connection with strategy. By choosing the Strategic Marketing
over the Tactical Marketing there are many benefits which could get for the organization. Strategic
Marketing helps in evaluating the current environment of the organization in the market as it helps
in assessing the positioning and performance of an organization. It could also help in establishing
clear marketing objectives with SMART. Strategic marketing helps in creating products and
services that provide the organisation with high profits. This is because strategic marketing starts
off by conducting a SWOT analysis of the organisation, a market analysis of the consumers and
the existing trends in the market. This information is then used to create the optimal products and
services for the consumers.

In the Coffee Cream, they are doing the Tactical promoting as they just spotlight on the day by
day or month to month deals. They just attempt to sell the item in the market with expanding deals.
They have a decent consumer loyalty in the market when contrasted with different associations in
the market like their primary rival Café Cream Castle. In any case, fundamentally, they have no
attention on the making handouts and the setting promotions, they accept on complete mouth
publicity. We can't perceive any accumulating of the Coffee Cream more than two in the Kottakkal
Market. It is the one of the shortcomings of their advertising in light of the fact that by this they
can't achieve or mindful the favored client or their divided clients. They are truly adept at giving
their administration and the items at the best in the market. Indeed, even the most settled
organizations are giving the commercial to their items in the market to draw in the clients. Along
these lines, as I would see it, the first is should be in the refreshment of the advertising techniques
in the Coffee Cream. Along these lines, for this we can put the vital marketing idea to the Coffee
Cream to give an upper hand in the market. On the off chance that they don't go for a Strategic
Marketing, the association will confront lost key bearing in the association and they will lose their
focused-on clients.

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Espresso Cream is presently just rehearsing the strategic advertising as they just spotlight on the
best way to assembled the business age from the present market. On the off chance that the Coffee
Cream is just spotlight on the strategic advertising, they will neglect to make an upper hand in the
market. By receiving the strategical advertising in the Coffee Cream, they will get the three
direction in their association. The first they will get the client center as they do the STP and it
could help in putting the venture and exertion just in these focused-on clients which could build
the expense and the constructed the brand picture on the part. Likewise, by adjusting the entire
association towards the hierarchical objectives by interdepartmental direction helps in proficient
accomplishment of the association. Additionally, the key marketing could expand the upper hand
over the contenders by structure marks through the STP. It additionally helps in concentrating on
their favored clients or focused on clients, in this manner helps in executing the advertising systems
as indicated by them.

The key marketing is beginning with the SWOT analysis, so it could enable Coffee To cream in
understanding the quality and shortcoming of their assets and advertising methodology, the clients
and the present patterns in the market which gives a superior measurement in the market and where
to begin the improvement in the promoting and giving the administration and items in the exact
way, accordingly to diminish the expenses in the business. As it sets the reasonable goals in the
promoting, it could likewise help in provide a guidance to the advertising office and furthermore
helps in accomplishing the general business targets and technique. By the key marketing, it could
enable Coffee Cream in the surveying the situation in the present market and in this manner helps
in modifying the presentation of the market. Along these lines, the Strategic Marketing causes in
figuring out where to contend, how to contend, and when to contend. These are a few advantages
and job will be accomplished when Coffee Cream plan for the Strategic Marketing. Presently, we
need to talk about the Strategic Marketing Planning Process in the associations and in Coffee
Cream.

1.2 Explain the processes involved in strategic marketing

Coffee Cream’s strategic marketing planning process should seek to establish a clear direction and
unified purpose for marketing efforts. The outcomes are documented in a marketing plan and
updated regularly by the marketing management. Strategic marketing process of Coffee Cream

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might involve 5 steps: identifying a mission, analyzing the situation, setting objectives, developing
a marketing strategy and planning for evaluation.

Identifying a Mission: The first step is to articulate the mission statement to anticipate future
benefit from target customers. It also includes a clear explanation of ongoing role for the goods
and services of the organization. For instance, an airline could state a mission to provide
continuous innovation in global transportation.

Analyze the Situation: In this step organization conducts SWOT analysis to evaluate and
understand the resources they can build on and the challenges they face. For example, using best
quality technology would be a key strength for smart phones while a poor relationship with dealer
would be a weakness. Opportunities and threats are derived from the influence of external factors
like changes in taxation systems.

Setting Objectives: The third step is to set clear and measurable goals so that decision makers have
a basis for making choices. In general objectives are expressed in terms of some quantitative
measures like sales revenue, net profit, market share etc. For example, targeting an increase of
sales by 5% within a year may be realistic but not within a quarter.

Developing a Marketing Strategy: In the fourth step a marketing strategy is developed by targeting
market from where organization highly likely to add value. Managers also determine
implementation tactics of effective ways of mixing product, promotion and price to the prospective
buyers.

Planning for Evaluation: At the very last stage of strategic marketing organization specifies how,
when and by whom the overall activities are to be monitored and assessed over time. (Byrne, August
26, 1996)

1.3 Evaluate the links between strategic marketing and corporate strategy

Corporate strategy is set up with overall business concept and the CEO of the organization is
responsible to set the overall corporate strategy. On the other hand, marketing is the operational
strategy which includes activities such as product identification, advertising, selling etc. Corporate
strategy is developed not only for marketing department but also for the others. Strategic marketing
assists marketing department in achieving marketing objectives so that corporate strategy will also

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be achieved. In an organization, corporate strategy is supposed to be determined before setting


marketing strategy. For example, to achieve corporate strategy such as sustainable competitive
advantage marketing strategy will be providing quality goods and services. A suitable marketing
strategy may be the best way to achieve the corporate strategy because it is unswervingly
connected with the customer from which value of an organization derived. Marketing strategy
emphasizes more on the customer and value creation. The more value creation the more
competitive advantage.

By connecting the corporate procedure with the promoting will provide guidance on the marketing
office in which they have to center later on. By utilizing an explanatory instrument, for example,
SWOT to work through an organization appraisal, you may find holes between your present
position and where you need to be. This procedure gives the lucidity you have to build up a
reasonable marketing system to accomplish your key objective and push your business to more
prominent benefits and higher piece of the pie.

In the Coffee Cream, there is no different branch of the advertising. It is looked after by the Owners
itself. There is no different staff or any others for the marketing obligation. They have just an
attention on the day by day deals and have no emphasis on any mission or vision in the association.
There are three levels system in an association. Utilitarian level, Business Level and the Corporate
Level. Be that as it may, at present they have no kind of the corporate level technique in the Coffee
Cream and they just have the practical level methodology and the business level procedure and the
proprietor of the Coffee Cream Saleem has no goal in the corporate system as he not mindful of it.
This is driving them in concentrating on the strategic advertising and they have no vital course
other than the everyday investigation of the deals and benefits. It will be a future risk for them as
it can prompt the absence of the heading in the market. The principal thing that we can do is to
mindful about the vital vision for the association and if conceivable, the proprietor needs to enlist
for a key initiative and the board program which is as of now given by The B school International
at Calicut. By this the proprietor will get the advantages of the connecting the vital vision with the
marketing of the Coffee Cream. As the mission and vision isn't taken in the Coffee Cream for the
key bearing, we can propose the vision and mission to them as a piece of the corporate procedure.
The proposed mission and vision explanation are:

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Vision: ‘To be the most preferred coffee shop in Kerala state by 2025, and to be a 2nd home for
customers where they can enjoy the moments alone or with loved ones.’

Strategy: Delivering quality assured products and services for our people with providing
innovative product varieties.

With the end goal of the accomplishment of these announcements they have to interface all the
vital advertising targets with this. The entire association is having to take a stab at the
accomplishment of this key vision and mission. For this the Coffee Cream is having to adjust every
one of the workers and the partners to this. The primary partners of the Coffee Cream are the
Employees and the Customers. For this they have to interface the entire parts of the STP and the
marketing mix towards this objective. By connecting procedure with the promoting, it will assist
them with aligning the all the advertising methodologies towards the hierarchical targets in this
way builds the effectiveness. Likewise for the advertising division as the capability of the
proprietor is low on different capacities other than cake making, he neds a help inside the
association who have a preparation in the marketing of the association, else they need to give the
preparation of the promoting for the administrator, Mr. Riyas and furthermore different
representatives can contribute their thoughts.

LO 2: Understand the tools used to develop a strategic marketing strategy

2.1 Assess the value of models used in strategic marketing planning

Their business environment of cakes and other eateries is so competitive especially in the global
and national level and growing at a rapid pace. To cope up with the competition Coffee Cream
shall use following techniques and models for risk assessment in the environment, competitor
analysis, internal and external analysis.

Porter’s 5 Forces Model: Competitive forces of an organization can be analyzed by a framework


developed by Michael E. Porter. This framework is commonly known as Porter’s 5 Forces Model
and the forces are as below:

1. Risk of new entry by potential competitors.


2. Revelry among established organization within industries.
3. Bargaining power of suppliers.

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4. Bargaining power of buyers.


5. Threat of substitute products.
Porter said in this model that those organizations have lesser opportunity to raise price and earn
profit where these forces are strongly active. He added also that weakness of these forces means
there is more opportunities to earn greater profit.

Risk of entry by
potential competitors

Bargaining power Rivalry among Bargaining power


of suppliers established organization of buyers

Threats of substitute
products

Figure 1: Porter's 5 Forces Model (Porter, November-December 1996)

SWOT Analysis: To integrate internal environment and external environment an organization


emphasized both evenly. The best way to integrate them is SWOT analysis: Strengths,
Weaknesses, Opportunities and Threats. SWOT analysis allows an organization to identify its
strengths, weaknesses, opportunities and threats. Strengths and weaknesses of an organization are

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the internal factors where opportunities and threats arise from the influence of external factors.
SWOT analysis suggest to focus on strengths of the organization and to shore up on weakness. It
also allows capitalizing opportunities by recognizing threats.

Internal
Factors Strengths Weaknesses

External
Factors Opportunities Threats

SWOT Analysis

PESTLE: PESTLE is a very common and widely used technique to analyze external environment
of an organization. PESTLE stands for Political, Economic, Social, Technological and Legal
analysis which is also read as SLEPT. An organization needs to take into consideration external
environmental factors while conducting strategic analysis and doing market research. PESTLE
analysis allows an organization to understand its business position, market growth and decline,
potential and direction for operation. Political elements decide the degree to which an
administration may impact the economy or a specific industry. Financial components are
determinants of an economy's presentation that legitimately impacts an organization and have
reverberating long haul impacts. Social elements involve the social condition of the market.
Innovative Factors alludes to computerization, innovative work and the measure of mechanical
mindfulness that a market has. Legitimate elements incorporate Competition Law, Employment

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Law, Health and Safety, Product Safety, New Laws and so on. Natural Factors: Environmental
components incorporate every one of those that impact or are dictated by the encompassing
condition. This part of the PESTLE is vital for specific ventures especially for instance the travel
industry, cultivating, farming and so on. Elements of a business ecological examination
incorporate however are not restricted to atmosphere, climate, geological area, worldwide changes
in atmosphere, natural balances, Energy utilization, Waste transfer, Environmental assurance law
and so on. (Johnson, Scholes and Whittington, 2008)

The primary advantages of utilizing the PESTLE Framework are that it Helps to diminish the effect
and impacts of potential dangers to your association and gives a component that empowers your
association to recognize and abuse new chances. Yet, the principle difficulties are the procedures
must be led consistently to be powerful and regularly associations don't make this venture and it
is emotional as each individual has an alternate sentiment and various individuals will see outside
factor in an unexpected way.

Stakeholder Mapping

Mendelow’s Power Interest Matrix is used to analyse the stakeholder groups based on the Power,
the ability to influence our organisation strategy or project resources and Interest, how interested
they are in the organisation or project succeeding. By this tool we could get the which stake holder
have more influence and power on the organization. This tool also helps to understand how we
need to deal with them. The group with High power and high interest need to ‘Manage Closely’
while group with high power and less interest need to be ‘Keep Satisfied’. The group with low
power and high interest need to ‘Keep Informed’ while group with low power and less interest
need to be ‘Monitor’ (Mindtools, 2019).

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Porter’s Generic Strategies

Porter had introduced the Generic Strategies in late 1985 in his Book to create competitive
advantage for the organizations. He had proposed four strategies for the organizations in his book.
These three are Cost Leadership, Differentiation and Focus (Low Cost and Differentiation). The
Cost Leadership strategy involves being the leader in terms of cost in your industry or market.
Differentiation involves making your products or services different from and more attractive than
those of your competitors. In Focus strategies, it concentrates on particular niche markets and, by
understanding the dynamics of that market and the unique needs of customers within it, develop
uniquely low-cost or well-specified products for the market (Mindtools.com, 2019).

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The BCG (Boston Consulting Group) Matrix

It is important to know the market share and product portfolio of the organization to analyse the
current performance and the effectiveness of business plans in the market, there is the importance
of the BCG Matrix coming to play. The BCG matrix uses market share and market growth criteria
for determining the attractiveness and balance of a business portfolio. The Boston Consulting
group’s product portfolio matrix (BCG matrix) is designed to help with long-term strategic
planning, to help a business consider growth opportunities by reviewing its portfolio of products
to decide where to invest, to discontinue or develop products. The Matrix is divided into 4
quadrants based on an analysis of market growth and relative market share; Star, Question Mark,
Cash Cow, Dog (Johnson et al., 2017).

Question Mark: The Question Mark is the first quadrant of the BCG Matrix. It has a low relative
market share position, but they have compete in a high-growth industry. These products need high
investment but the cash generation is very low. This known to be Question mark because the
organization must decide whether to strengthen them by pursuing an intensive strategy (market
penetration, market development, or product development) or to sell them.

Star: It is the second quadrant and it represent the organization’s best long-run opportunities for
growth and profitability. Divisions with a high relative market share and a high industry growth
rate should receive substantial investment to maintain or strengthen their dominant positions.

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Forward, backward, and horizontal integration; market penetration; market development; and
product development are appropriate strategies for these divisions.

Cash Cows: It is the third quadrant have a high relative market share position but compete in a
low-growth industry. They generate cash in excess of their needs, they are often milked. Cash cow
divisions should be managed to maintain their strong position for as long as possible. Product
development or diversification may be attractive strategies for strong cash cows.

Dogs: It is the last quadrant and have a low relative market share position and compete in a slow-
or no-market-growth industry. They have a weak internal and external position, these businesses
are often liquidated, divested, or trimmed down through retrenchment.
Ansoff Matrix

Ansoff matrix is used to find out new potential areas where a company can take it products and
market, including the markets where company has not even related with. It provides alternative in
four different ways. Market penetration is increasing the current market share using existing
capabilities. Market development is entering to new market and segmentation using existing
capabilities. Product development is creating new products in current market firm serves. Then
there is diversification where offering new products to the new market. (Campbell, Stonehouse and
Houston, 2002), (Lynch, 2006).

Market Penetration: Introduce new Product Development: Develop new and


marketing mix and penetrate deeper into the varieties of products which is tasty and
current market. healthier.

Market Development: Allow franchising and Diversification:


grow quickly into other potential markets or
grow organically.

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Market penetration: In the market penetration option, I suggested to improve the marketing
strategies especially promotion. The promotion is very weak in the Coffee Cream. Also, they are
now following the improper segmentation in their organization. Proper management of the
segmentation can increase the sales.

Product development:

Market development: In market development, I suggested the plans for a chain of coffee shops
in the new markets. Chain of coffee shops helps to reduce the cost and increase the popularity
leads to the strengthening of brand.

With the help of Ansoff Matrix, I was able to suggest three options for Coffee Cream. The first
one is to penetrate into the market with right segmentation and promotional activities, the second
is to develop latest and unique products in the current market by investing in research and
development. The third one is to build a chain of shops in the brand name Coffee Cream by
franchising or organically expanding to other potential markets. From these three options, I think
the best option would be the third one, because the coffee shop industry is becoming as a trend
setter especially in Malabar region of Kerala nowadays as people are almost trying to copy the life
styles of western people and most of the youth and working-class people now likes to have a
hangout place where they can have good times by sipping a coffee or other beverage and loafs.

These are the models utilized in the Corporate and Business level in the vital marketing arranging.
PESTLE Framework is utilized in the key marketing arranging in examining the External
Environment in the Phase 2 of situational audit. What's more, it helps in the detailing of new
chances and dangers later on. On account of the SWOT, it helps in distinguishing the qualities and
shortcomings of the association and this apparatus have a different area in the vital marketing
arranging stage 2 itself. On account of the BCG Matrix, is useful for chiefs to assess balance in the
organizations' present arrangement of Stars, Cash Cows, Question Marks and Dogs and it gives a
base to the board to choose and get ready for future activities. This additionally utilized in the
Phase 2 of the vital marketing getting ready for examining the item portfolio for making the
technique for it later. On account of the Ansoff Matrix, this model is utilized in the Phase 3 of the
key advertising arranging in which use to make new destinations and to break down the
development openings or choices in the market.

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When we go to the Porter's Generic systems, it gives the development alternative for the
associations. This model provides the guidance or system for a business in the Phase 3 of vital
advertising process. Finally, we have the Porter's Five Force, by utilizing this model recognizes
the challenge and appeal in the market and furthermore helps in stage 3 of the vital promoting
getting ready for key detailing. As talked about before there are two different models utilized in
the practical level which are STP and Marketing Mix and it will examine in the coming
undertakings.

2.2 Discuss the links between strategic positioning and marketing tactics

Strategic positioning complies with the development of a product or service and a marketing mix
to occupy a specific place in the minds of the targeted customers. Positioning is required for
perceptual processes of customers, greater competition and growing volume of commercial
messages. It allows organization to screen out more information, to share more customers and to
promote clutter. Marketing tactics are the measurable goals that an organization attempts to
achieve for a target market within a specific time period.
The principle advantage of the quality of the positioning of the items we offer in our firm is that it
can make the upper hand in the market through the gathering of the requests and needs of the
purchasers. It can help in adapt up to the market changes and help to meet the desires for the
purchasers in the market. By positioning an item in the market, the association can just need to
structure the advancement for as indicated by this item. By positioning the item, it helps in winning
consideration and enthusiasm of shoppers and furthermore help to draw in various kinds of
purchasers. The positioning likewise makes the whole association advertise arranged other than
the individual selling. In any case, the principle difficulties are likewise there when we position an
item is that each organization needs to position its items positively in the psyches of customers, so
there is normally an abnormal state of rivalry. New organizations regularly think that it’s hard to
position their items in a market that has contenders who are doing well in the market. Additionally,
making out a specialty in a huge and aggressive market is frequently hard for private ventures
especially who does not have huge fund, such huge numbers of newcomer’s center around a
restricted section toward the begin, fabricating their image personalities before venturing into

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bigger focused fields. Another shortcoming is that keeping up an aggressive position in a market
is constantly troublesome. There is likewise an issue when we reposition the brand as a brand
known for being a minimal effort elective will be hard to showcase as an extravagance thing when
an organization adjusts to fulfill the needs of another market. The connection between the position
and the marketing mix on the grounds that every segment of the marketing mix is straightforwardly
connected to the positioning that an organization takes in the market. For instance, if an item is
situated to the great high value, it worries with the all component of the Marketing mix, for
example, Product, value, advancement, and spot. In this way, we first we have to examine about
the marketing mix.
As indicated by the Pride and Ferrell, Marketing mix is the four promoting exercises that a firm
can control to address the issues of clients inside its objective market. The marketing mix alludes
to the arrangement of activities, or strategies, that an organization uses to advance its image or
item in the market. The 4Ps make up an average marketing mix - Price, Product, Promotion and
Place (Pride and Ferrell, 2006). It causes you to characterize your advertising alternatives as far as
value, item, advancement, and spot with the goal that your offering meets a particular client need
or request. The marketing mix is a decent spot to begin when you are thoroughly considering your
arrangements for an item or administration, and it encourages you to keep away from these sorts
of errors. Item speaks to a thing or administration intended to fulfill client needs and needs. The
price is the deal cost of the item reflects what buyers are eager to pay for it. Place is alluding to the
point of offer and the advancement. This alludes to every one of the exercises attempted to make
the item or administration known to the client and exchange. Be that as it may, in the present idea,
there are viewed as 7Ps particularly as a result of the sprouting of the administration divisions. It
demonstrates that the fundamental piece of the administration areas are the workers and the
framework or administration quality they are being found in the administration associations. In
this way, there is a need to broaden the marketing mix. The all-inclusive promoting mix
incorporates People, Physical Environment and Process. Physical Evidence includes how we
console our clients. Individuals includes who are our kin and are there aptitudes holes and the
Processes mirrors all the inventiveness, control, and structure brought to promoting the board.

The fundamental advantages of the advertising combine is that it brings various ideas of Marketing
into one, causing Marketing simpler to do to and oversee and permits partition of promoting from
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other organization exercises and designation of marketing assignments to authorities which


empowers an organization to differ its Marketing exercises as per its assets, economic situations
and client needs while the Marketing Mix does not make reference to building associations with
the shopper that has turned into a noteworthy promoting center, or the brand encounters that
purchasers purchase.

Presently, we can examine about the connection of the positioning and the 4Ps in the Coffee
Cream. In the Coffee Cream the principle position taken by them are the excellent item and
administration with high cost and they have the attention on the businessmen or high class or more
normal class individuals over the age of 30 in the Kottakkal market. The Coffee Cream is for the
most part meaning to give the best administration in the market superior to the competition. The
Coffee Cream has just one branch at the Kottakkal Market. As an administration area industry, we
have to break down the all 7Ps in the marketing mix of the association. The connecting of the
position and the promoting mix is significant in the Coffee Cream as like different firms to make
an upper hand in the market. In this way, gives take a look at the all-encompassing promoting a
chance to mix of the Coffee Cream.

The marketing mix of the Coffee Cream is beginning with the item. The items in the Coffee Cream
are Cakes, Coffees, Juices, and the eateries, for example, sandwich and different things. The nature
of the Cakes in the Coffee Cream is exceptionally well known in the Kottakkal Market as the most
selling thing is the cakes. One of the Owner Mr. Saleem is having an experience on this preparing
field of more than 18 years which is an extraordinary quality for them. They are marketing their
cake as the principle. The brand picture is likewise high for the Coffee Cream in the Kottakkal
Market as they are having a first mover advantage. The client administration is additionally
extremely fulfilled in the Coffee Cream. The improvement or the framework offices of the Coffee
Cream is likewise sufficient other than the low space inside the association and in the stopping
region. According to the positioning of their image, they are doing great in the item quality and
different things like administration. The following component is the Promotion of the Coffee
Cream. The fundamental strategy pursued by the Coffee Cream in the advancement is the mouth
exposure. We can't perceive any sort of the Ads in the Kottakkal Market and this is the one of the
disadvantages of their advancement. Despite the fact that they have a fan base in the market with
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the mouth exposure as extraordinary compared to other apparatus in the client maintenance and
client fascination, they are not full make mindful the focused-on clients of them. it is the one of
the thing which I saw from the visit to the Coffee Cream as they are situated it for the better than
expected individuals over than age 30 however when I went to the Coffee Cream, there are for the
most part numerous families and the section matured 20-30 years are introduced in the shop. This
demonstrates they have issue with the limited time system and they have to correct it. As I would
see it, the recommendation to comprehend it as to grow their portion of the age to 20 or above as
there are numerous universities, medical clinics, workplaces and youth individuals present in the
Kottakkal Market. Additionally, they have to pull in their focused-on clients by giving the
promotions in the internet-based life, and in the spots like the Clubs which have the participation
of the significant business people. The personal selling isn't a thought in the Coffee Cream and all
are centered around the giving of the best administration for the clients. As I would like to think,
the main advancement through the mouth attention can be influence them later on in light of the
fact that they are neglecting to mindful their focused-on clients. They are likewise centered around
the Branding of their shop for expanding the upper hand later on market.

The other one is the Price and the Coffee Cream is concentrating on the high value contrasted with
the market. They are concentrating on the Premium valuing as they give the high cost to their items
or the administration and nature of both. The estimating they are doing in the positioning of their
item. They are exceptionally cautious in taking the crude materials of the items and they center
around the best crude materials accessible as they buy Coffee Beans from the CCD, the best beans
in India. In this way, the cost will likewise increment as the quality improves. In the Place
component, the clients are having just alternative of the coming up to the coffee shop. They are
not having any dispersion framework or logistics as they are not giving the home conveyance for
their item. As the real thing expected to convey is the Cakes, they are not going for broke that the
cake is having a high consideration required. As I would like to think, later on they can go for the
convey home bundles with low plastic substance materials. In the individuals, there is no different
division in the Coffee Cream for the Marketing and the proprietors are conveying it. As I would
like to think, it is sufficient as a little shop and they not expected to delegate other one official in
the market other than giving an assignment of the activity pivot to the present representatives in
the Coffee Cream in which they expected to help the marketing undertakings to the proprietors
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and need to bring new thoughts. The consumer loyalty is likewise exceptionally high in the Coffee
Cream because of the way of life and the administration inside the association. The training and
the development likewise dependent on the positioning as they for the most part select the
accomplished workers from the reputed firms like CCD, Starbucks and others.

In the process component, the client center is significant in the Coffee Cream as a worker. The
entire procedure incorporates into the Coffee Cream is carefully founded on the client focal point
of value. From purchasing the crude materials to the serving the clients is arch in all respects
cautiously. The mood and the foundation are intended to help the positioning yet the primary need
the association is the parking spot and the showroom space. As the focused-on clients are high
class, they will accompany the greater vehicles, for example, autos and they need some protection.
In this way, they have to build the showroom space or expected to make an upper floor and
increment parking spot. They can likewise execute the unique taxis as the meeting space for
individuals required the business talk and a space for the exceptional occasions like Baby shower,
birthday festivity and so on which is presently drifting in the between the individuals on the off
chance that they incorporate the individuals in the section of 20-30 years. Finally, the Physical
Evidence, we can say that the name is itself a proof of their image in the Kottakkal Market.
Additionally, the high degree of consistency of the client is likewise a proof to the acknowledgment
of their item and the administration. In any case, there expected to build strategies which expected
to make the client maintenance in the Coffee Cream for expanding progressively like the input
from the client through the Social Media to get joined even after they left from the association and
they can likewise utilize this number for wishing the exceptional occasions like birthday,
commemoration and so forth to the clients which will build both feeling of thought and connection
for the clients and furthermore can help in getting the deals for the cakes for that occasions. By
dissecting every one of these components in the Coffee Cream and when connection it with the
positioning of astounding item, administration and high value, they are practically very much
connected with the positioning yet there are a few issues in certain components either. The primary
issues are appeared in Promotion, Process and others.

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2.3 Analyze the merits of relationship marketing in a given strategic marketing strategy

Customers are the value creator of an organization. Success of an organization depends on the
satisfaction of their customers. Organization needs to take appropriate strategies to satisfy them.
This includes providing quality product and services at minimum price, ensuring availability, post-
sale services, polite behavior with customers etc. The goal of relationship marketing is to develop
loyalty between customer and organization. It may be with particular brand or product to the
targeted customer base. Relationship marketing provides following benefits.

Customer Value: Relationship marketing assist in determining who the most valuable customers
for the organization are. It also determines who are too costly to maintain relationship with. For
example, relationship with a non-profitable customer will lead subsequent cost by nonpayment or
less payment.

Communication: Philip Kotler suggested in his books that organization should find it’s easier and
more efficient to obtain and keep their customer. Organization can provide promotional incentives
for repeat communication.

Innovation: Organization such as Starbucks through their website MyStarbucksIdea.com offers


their customer to provide ideas. It allows customer to vote, discuss and share their views and ideas.

Customer Feedback: Relationship marketing allows organization to open communication and


cooperation so that customer concern, complaints and compliment can quickly be addressed.
Organization can use customers’ feedback to make appropriate adjustment with the products and
services.

Advocates: When customers are pleased and satisfied with a consistent experience, they share this
information with others. Relationship marketing use these tactics for suggestions and
recommendations.

This model helps the organization to study about the stakeholders and key market domain that may
be important to them. In this model they proposed 6 markets in which they need to focus and which
are Customer Market, Influence Market, Referral Market, Supplier Market,
Employee/Recruitment Market, and Internal Market. Customer Market contains buyer,
intermediates, final customers and retailers. They are our final consumers for a product. Influence

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market includes stakeholders as well as third parties. Referral marketing is when we buy something
after being referred by our friends and relatives. In general, we can understand this term as ‘Word
of Mouth’. Supplier Market includes Suppliers. Employee/Recruitment market helps an
organization to keep the best people who can add values to the organization. They should be
talented, experienced, skilled and royal. Internal market applies to the customers and employees
within the organization (Payne and Ballantyne, 2005).

These are the most important markets that needed in the relationship market in the organization.
From these group or market, the most valuable customers or the group is the Customer market
which involves the final customers. Now, we need analyze that the Coffee Cream is whether doing
the relationship market or not. Currently the customer retention in the Coffee Cream is high due
to the service give to them. In my opinion, the relation between the customers and the employees
are very high as the customer retention shows it. There are three tools that enables the relationship
marketing in an organization and which are social, financial, and structural.

As I would like to think, they can complete three sides in for the relationship promoting and these
eventual chose by the income they have. In the social side, they can make a network in the internet-
based life or WhatsApp in the Coffee Cream. through this the clients can be educated through it
and offer their considerations and thoughts on the association and by and by. The numbers can be
gathered by the criticism structures and they can request the authorization of the including of every
client in the Coffee Cream. Through this a network will be framed for the sake of the Coffee
Cream. By this, the individuals can be expanding their espresso accomplices for the association.
The clients who are nearer in these talks will come the Coffee Cream at explicit interims and can
visit with an espresso will be a deal expanding for the Coffee Cream. they likewise will direct
more social affairs and as the representatives is more, they will happen to the business talks and
speculation plans. It will be likewise a decent alternative for the resigned high-class individuals
who need an espresso accomplice. The individuals in the gatherings or network can likewise share
the new proposal to the Coffee Cream as they will have more involvement in the associations.
Likewise, as referenced before, Coffee Cream could likewise send welcome on the unique evets
like the birthday, commemoration which is gathered through input structure can make a feeling of
thought and along these lines offers of the cakes for that occasion. The principle benefits as it can
build the client maintenance and the deals. It is additionally least expensive route in keeping

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relationship. The difficulties will be the readiness of the individuals in giving their numbers as
they are representatives and furthermore the utilizing attitude of the clients to the online
networking.

In the budgetary segment, we can present the steadfastness card framework in the Coffee Cream
in which they will get prize or limits by accomplishing the specific focuses in a month.
Additionally, they can offer limits to the or prize to the individuals who gave best
recommendations and thoughts in the input structure. This framework is incorporated with the
'later charging' choice which gives the individuals that they can pay bill later or through application
if just gave enlisted installment strategy. The clients who took participation likewise can contribute
on the business or can a business investor on the off chance that they need it. The enlisted
individuals will get faithfulness focuses expanded according to the deals and on the uncommon
events like birthday and wedding commemoration (additional focuses on this event). The
reliability focuses can be reclaimed from Coffee Cream shop over all shops in the event that they
go to for a development plan. The principle difficulties will be the expense for the application. As
I would like to think these are a portion of the best approach to secure the present clients in the
Coffee Cream, on the grounds that the locking of the current clients is significant other than gaining
new clients.

LO 3: Be able to use strategic marketing techniques

3.1 Use appropriate marketing techniques to ascertain growth opportunities in a market

Industry profile

The growing demand for coffee globally will drive the market for specialty coffee shops during
the forecast period 2017-2021. Coffee is the second-most traded commodity in the world after oil.
It is cultivated in nearly 45 countries. Brazil, Vietnam, Indonesia, and Colombia are the leading
producers of coffee globally. Coffee is the second-largest beverage segment in the US after soft
drinks and the global market value of coffee is expected to witness a 5.5% CAGR, during the
forecast period. About 44% of the United States coffee demand comes from the millennial. In eight
years, through 2016, the daily consumption among 18 to 24-year-olds increased to 48% from 34%
while, it is increased to 60% from 51% among the population aged 25 to 39 years, as reported by
the National Coffee Association in New York. Moreover, adults aged 60 years and above

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witnessed a decrease to 64% from 76 %, including the 40 to 59 age group. Café culture in
developing countries like China and India is becoming a fashion symbol and is driving the coffee
consumption globally. Some of the primary factors driving the global specialty coffee shops
market are the expanding global urban population, increasing demand for on-the-go coffee
products, and increasing purchasing power of the population in emerging countries. Growing
urbanization and consumerism are leading to a rapid rise in the consumption of premium products
like specialty coffee.

The café segment has been witnessing a success in India with many national and international
brands came to operate in the market. And the people who prefer cafes nowadays are also improved
with coffee becoming more of a fashion statement among the millennials. As per reports there are
approximately 100 café and bakery chain brands with an estimated 3200 outlets spread across
various cities in India. The Café Coffee Day being the largest player in terms of number of outlets.
They account for 1556 outlets as of 2015 and has market share of 46%. Although the global
landscape is consolidated among the top brands, local operators can compete and even dominate
at the market level. Café culture is highly varied across markets, which makes understanding local
preferences key to success. This benefit local operators in their domestic markets but may also be
key to developing concepts that can rival the dominant global chains, as local players begin to seek
expansion. https://www.businesswire.com

www.mordorintelligence.com

After analyzing the industry profile lets analyze the growth opportunities in the market for the
Coffee Cream. For this I am using the STP tool. The STP is stands for Segmentation, Targeting,
and Positioning. STP is a familiar strategic approach in Modern Marketing to build the targeted
marketing plan. It is one of the most commonly applied marketing models in practice.

Before this phase doing a market, research will enable Coffee Cream to identify the best marketing
mix which should include right product at right price in the right place by using of most suitable
promotional techniques. To create the right marketing mix organization must ensure that the
product has right features, price is accurately charged, product will be in right place at right time
and target group of customers are aware through promotion. (O'Reilly, March 3, 1997)

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Stage 1 Stage 2 Stage 3


Prior to Marketing During Marketing After Marketing Activity
Activity Activity

Market Research Developing the Evaluation of Marketing


Marketing Mix Effectiveness

The initial phase in the STP is the Segmentation and it is the partitioning of the client base into
gatherings of individuals with comparable needs. This permits the association in making the way
to deal with address each gathering's issues cost-successfully, and this gives a gigantic favorable
position over contenders who utilize a one size fits all methodology or a methodology of the item
to every one of the clients. There are numerous ways we can fragment our objective clients and
which are Demographic, Geographic, Psychographic, and Behavioral methodology. Statistic
incorporates the Age, Sex, Education, Martial Status, and Occupation of the clients. Geographic
incorporates the Country, Region, State, or City while Psychographic incorporates Personality,
Risk Aversion, Values, Lifestyle and the Behavioral incorporates the how individuals utilize the
item, how steadfast they are, or the advantages that they are searching for. In the Targeting, we
have to focus on the portion by finding the most appealing ones and in the Positioning, we have to
position the item to focus on the most important fragments utilizing marketing mix.

The principle advantage of utilizing the STP in the advertising is that it helps in the use the
association's assets successfully. It helps in draw in the correct client to the result of the
associations. It diminishes the danger of marketing an item to the clients who are not out of luck.
It builds advertising proficiency by coordinating exertion explicitly toward the assigned portion in
a way predictable with that section's qualities. Likewise helps in client maintenance and aides in
diminishing the expense. Be that as it may, the fundamental difficulties are that when the firm
endeavors to serve a few market portions, there is an expansion of items. Cost of creation ascends
because of shorter generation runs and item varieties and need a substantial venture when taking a
position one to other because of the changing of advances like hardware and others. All in all, the

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STP is an extraordinary compared to other device for focusing on the client and demonstrating the
development chances of the organizations' part. In this way, here we have to dissect it for the
Coffee Cream.

In the Segmentation, the Coffee Cream is right now looking the representatives or more normal
high-class individuals matured 30 or above. The principle focused on clients are the individuals
from the Kottakkal Region. As the Changuvetty locale have numerous schools, foundations, clinics
and different firms, they have issue with the getting clients in the market. The Coffee Cream
additionally fragmented to the individuals who are searching for the estimation of the best
administration and items in the Kottakkal Market and the person who need a decent espresso
experience and having a way of life who need a spot to remove his pressure. In the present
situation, when I visit the shop, there I could see more individuals with families and youths
maturing 20-30 in the Coffee Cream. The above reports from the Euromonitor demonstrates that
the measure of their present clients will increment 6% in 2020 than 2000. Along these lines, the
area is developing in the Indian market. In any case, on the off chance that they figure out how to
reschedule the division, by including the more youthful matured individuals of 24-35, they will
get a decent measure of the clients in light of the fact that similar reports demonstrates that the
65% of the Indian populace is in underneath 35 and the common laborers likewise expands,
subsequently the discretionary cashflow moreover. This is observers from my own experience that
these matured individuals are more in the coffeehouses. If they are with this fragment, they can
present gathering corridors independently as the occasions without the cake and the gathering is
low in the present market. Likewise, on the off chance that they are proceeding with this section,
they have to address a top-notch advancement and need to build the taxi for the better security and
can present the meeting corridor and private parlors for the couples and representatives who need
the private space. Along these lines, the degree is exceptionally high in this more youthful portion
and it can likewise expand the client base in the market as like CCD and Starbucks. As I would
like to think, it is better them to take the fragment of the above as it expanding in the market
according to the Euromonitor report. The primary advantages of this section for the Coffee Cream
is that they use the asset of the Coffee Cream viably. It will give them where to concentrate on the
correct client and executing the marketing mix with them. The principle challenge which will look
by them is the cost required for actualizing of these strategies and advancement expected to

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mindful the new portioned clients yet this expense can be earned after the fruitful arraignment of
this arrangement.

3.2 Plan how to use marketing strategy options in a market

Now we have to create the marketing strategy in the corporate level and business level. The
different models are discussed in the previous sections. Here, I am using Porter’s Generic Strategy
and the BCG Matrix and finally Porter’s Five Force for analyzing the competition and the
attractiveness for the Coffee Cream.
Porter Generic Strategies: Michael E. Porter describes three general strategies to achieve and
maintain competitive advantage. These three strategies can be categorized in two dimensions:
Strategic Strength and Strategic Scope. Strategic strength is a dimension that arises from the side
of supply and suggests the organization to focus at the core competence of the organization. On
the other hand, strategic scope is a dimension that arises from demand side and suggests the
organization to focus at the size of the market organization want to target. Porter identified two
competencies: Product cost Efficiency and Product Differentiation.

In the Porter's Generic Strategy for the Coffee Cream, I did the separation system. Separation
methodology includes making your items or administrations not quite the same as and more
appealing than those of your rivals. The separation system is to furnish best quality administration
and items with premium valuing and an attention on the brand building. This was the choice
pursued by the real organizations resembles CCD, and Starbucks. The primary advantage of this
technique is the owning the supporters to the association if the clients are treated as their will and
if the clients keen on our way of life. The primary difficulties that could look by the Coffee Cream
is the acknowledgment of them in them in different markets. Additionally, later on there will be
numerous shops with the equivalent of their procedures however it can be overcome by structure
a special culture inside the association.

Porters 5 forces:

Porter's Five Forces is a model that identifies and analyzes five competitive forces that shape every
industry and helps determine an industry's weaknesses and strengths. Frequently used to identify
an industry's structure to determine corporate strategy, Porter's model can be applied to
any segment of the economy to search for profitability and attractiveness.

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Competitive rivalry:

Currently it wouldn’t be bad to state that Coffee Cream has no rivals in their present market.
Because they are to serve a niche market in Kottakal and there are no other cafes nearby them
which offers the product and service like them. Their products are priced at premium so is the
quality but it doesn’t mean that they do not lose on sales to other café’s such as Cream Castle
which functions just meters away from Coffee Cream. This is because, others are pocket friendly
but at the same time they are not able to match the quality which Coffee Cream offers both in
product and services. But if giants like Café Coffee Day (CCD) or Barista someday come and
started to function in their market or when they have to expand to a larger market where these
kinds of players exists, the whole scenario would be changed as Coffee Cream might struggle to
sustain in that competitive field just because of the brand name the CCD’s or Barista has. For the
time being no one else in their market is doing what they do and they just have some profit in good
numbers. When we view in a broader market’s angle, the competitive rivalry would be very high.

Supplier power:

Currently they do rely on suppliers but not on a huge number, the coffee beans are purchased
directly from CCD, Bangalore and other raw materials for the making of pastries are bought from
long term suppliers who supplies the best raw materials available, for example they use fresh
creams in cakes which are natural but at the same time there are cheaper alternatives which can’t
be claimed as natural. There are a lot of alternative sources available but it would be difficult to
get the best product out of them if we don’t have a long-term relationship with the suppliers.
Therefor it would be good to conclude that the supplier power is moderate in the business.

Buyer power:

They are having around 80% repeated customers. It won’t be easy for them to switch from Coffee
Cream’s product to that of others which of quality better than Coffee Cream as we couldn’t find
another alternative which provide the same experience as them in Kottakal. But things could go
wrong if someone else start to provide quality products and services at comparatively lesser price
than Coffee Cream. The point to consider here is that it’s really difficult to provide quality for
cheaper price in this segment as the reduction of expense is something which all the café owners
has to deal with. Therefor people who know this won’t be much considering the price premium

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which they have to pay for the quality they receive. Buyers chance to bargain is less when it comes
to Coffee Cream.

Threat of substitution:

Nowadays technology is advancing in every aspects and specialty coffees could be prepared own
our own with the help of automatic coffee machines in house itself. People prefer to drink other
things like fruit juices, tea etc. would affect the profitability. Lassi Shops and other small scale
businesses like these are fast growing in the market where Coffee Cream operate, they both
provides many varieties of beverages and drinks at much cheaper price and people may prefer that
also. From the above points it would be easier to conclude that threat of substitution is on the
higher side.

Threat of new entry:

Anyone with money can plot a same kind of Café like Coffee Cream. But it is not compulsory that
it to have a threat on Coffee Cream as this particular field requires highly efficient expertise in
order to sustain profitably in the market. People needs to have the all basic ideas about the
operation inside the Café as it is the one of the most important aspects of Coffee Cream. The owner
of Coffee Cream has this as he started as an employee in cake making but it took almost 15 years
to plot Coffee Cream in Kottakal, and he have tasted and researched about what he wants to deliver
to the customers. Operational efficiency and unique product secrets are key in order to sustain
profit. But people might often try to get into this business by looking it from outside and therefore
threat of new entrants is high.

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BCG Matrix: Coffee Cream

In the Coffee Cream, the Star product is the Cakes. Varieties in the cakes are now a trending
product in the market. From marriages, Birthday celebration to special occasions, the cake is now
a good moving product. The cake is the most profitable business in the Coffee Cream. Also, the
sale of the cakes from the Coffee Cream are increasing day by day. Thus, we can add them to the
Star product of Coffee Cream. Coffee Cream should use invest more in the Cakes in the future. In
the future they can use different varieties in the cake products which could help in more profit.
Coffee Cream have 3 product section in their Cash Cow Stage which is juices, coffees and eateries.
For the further growth in this section they have to bring out the new varieties in these products.
One of the unique products introduced by the Coffee Cream is the Bubble Tea. But it is a failure
product in the market. The feedback was not that great and it didn’t create any demand for the
product. Now, it is a Dog product for the Coffee Cream. It is still continuing in the market, but it
could be stopped anytime. One of the reasons why it is continuing due to the low production cost
for the item and they see it as a one of the products used for promotion of the Coffee Cream. But
if they continue to use this in their promotion, which may can affect the brand image.

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Also, the other challenge will come in the future for the Coffee Cream is in their Cash Cow
products. Juice Shops, Coffees, and Eateries like Sandwich and Burger are counted as the most
plotted shops in the market. We can see numerous amounts of shops in this category. So, it is a
low-growth industry but the varieties in the Juices, Coffees, and Eateries makes them profit out of
it. But it could be copied by competitors, bored to customers can make it to move to the question
mark, so they should make sure that they are bringing varieties in these in the market to sustain.
Recently there are no question products in the Coffee Cream.
After analyzing of those three models in Coffee Cream, based on the available position in the
market, market share of the overall industry, brand picture, assets limits, and mastery control, there
are 4 sorts of the contenders are ordered. These contenders are Market Leaders, Market
Challengers, Market Followers, and the Market Niches. The market chief will have the biggest
piece of the pie in the pertinent item in the business and it has a prevailing position in the market.
Market challengers are known as next in line firms. They possess second, third and lower positions
in an industry. The Market adherents want to pursue pioneer instead of to challenge and they don't
confront the pioneer straightforwardly. A few devotees are skilled to challenge yet they want to
pursue. A specialty is an all the more barely characterized little market or having set number of
purchasers whose requirements are not being great served by existing merchants. In this sort the
Coffee Cream is viewed as in the Market adherent. The pioneer is the Starbucks and the Challenger
is the CCD in India. The fundamental test that will face to the Coffee Cream is that the adherents
will be higher in the time and they will have a situation in the market yet on the off chance that
they are prevail with regards to making a similar quality administration and the item marginally
lower than the pioneer or challenger can assist them with promoting the position.
3.3 Create appropriate strategic marketing objectives for a market

Strategic marketing aims at achieving customer satisfaction so the value of the organization will
increase. A well-defined objective of strategic marketing plays a crucial role in business
performing. Setting marketing objectives is critical because organization has to articulate these
with the overall mission and goals and also determine how it will be benefited. Marketing
destinations are objectives set by a business when advancing its items or administrations to
potential purchasers that ought to be accomplished inside a given time period. It is the little
marketing technique set to accomplish the authoritative destinations. When we setting the

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destinations, it is critical to guarantee that they are explicit, quantifiable, reachable, practical and
time-explicit or we call it us SMART targets. It helps in deciding the viability of the advertising
procedure. By setting the advertising goals with SMART, the association will get numerous
advantages. The first is that it will weight on one explicit objective than general one. It is difficult
to decide whether a group is gaining a ground without quantifiability. These advancements
encourage groups to remain centered. It gives the workers inspiration as it is set by their bore.
Importance in promoting destinations serves to picking objectives that have worth in the situation
and when bound it helps in adequately overseeing time and setting due dates and it will expand
the focal point of your colleagues and will take care of the issue of past due. The time period is an
indispensable piece of advertising targets since it keeps objectives from disregarded. The primary
test is that if the arrangement is neglected to complete one target in the time span. It can likewise
make the issue to other.

Let us look at the future options for the Coffee Cream. Ansoff has given many options for the
future growth plans of the Coffee Cream. The three options that have been obtained after the
analysis are:

Market Development:
Diversification:
Developing shops in the
other markets and
Integrated modern
develop a chain of shops
bakery model
in the brand name
'Coffee Cream'

Market Penetration:
Product Development
Making efficient
marketing strategies like
XXXXX
efficient promotion and
segmentation.

Market Development: In market development, I suggested the plans for a chain of coffee shops in
the new markets. Chain of coffee shops helps to reduce the cost and increase the popularity leads

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to the strengthening of brand. I have selected the Market Development option for the Coffee
Cream. Chain of bistros decreases the expense and increment the fame prompts the fortifying of
brand and in the market entrance alternative, I recommended to improve the advertising procedures
particularly advancement. The advancement is powerless in the Coffee Cream. Additionally, they
are currently following the inappropriate division in their association. Legitimate administration
of the division can expand the deals. Along these lines, presently need to make the marketing
targets for the Coffee Cream utilizing the SMART. The advertising targets utilizing the Ansoff
Matrix as SMART as pursues:

 Increase the level of clients whose criticism on administration as astounding to 95% inside
part of the arrangement.
 Needed to expand the piece of the overall industry and deals rate in the Coffee Cream up
to 25% at the mid of 2020.
 Establish another shop at Perintalmanna in the late spring of the 2020.
 By the end of year three, achieve 15% of sales through the Internet

These are the three goals for the Coffee Cream utilizing the SMART and Ansoff Matrix. The initial
two destinations are the piece of the market infiltration and the third one is a piece of the Market
Development and all the transient plans. On account of the principal target of the expanding the
level of the clients whose criticism on administration as fantastic to 90% inside part of the
arrangement, Coffee Cream needs to guarantee that the administration and the item quality is
sufficient with the inclination they given in the market for example the positioning od the superb,
high cost. The principle reason for this goal is to guarantee that whether the individuals are keen
on the way of life and the administration of the Coffee Cream and this could be taken by directing
the criticism structure and the representatives who take the 1000 positive clients in a month
expected to compensated. The primary advantage is that they will get the seeing how the
individuals are acknowledged them and it helps in client maintenance and marking. The test can
be taking of the input from the clients through internet-based life and from store as the numerous
clients won't be keen on it however this could be overwhelmed by remunerating the clients for the

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best criticism and thoughts. As I would like to think, this thing could be attainable in the present
situation.

The following goal is to expand the piece of the overall industry and deals rate in the Coffee Cream
up to 15% at the mid of 2020. The motivation behind this goal is to build the piece of the pie in
the Kottakkal Market and need to complete a decent advancement methodology for this. The
primary advantage will they get from this goal is that they will have the more piece of the pie in
the market. The fundamental test this could face is the challenge from different shops who as of
late began their positioning in the brilliant high cost however the Coffee Cream is continually
having a first mover bit of leeway and they need to keep up it to accomplish this.

The last goal is the building up of the new shop on the Perinthalmanna in the mid-year of the 2020.
This is a piece of the market advancement. The primary advantage is to get the chance to expand
the measure of the shops to diminish the oct and increment the marking. The primary test that will
face will be the test because of the acknowledgment and the replicating of the way of life of the
Coffee Cream in the new shop. This could overcome by appropriate preparing and for the
acknowledgment their advancement expected to in point. In the present situation, it is a feasible
for them as the acknowledgment in the Kottakkal Market for instance. Be that as it may, the
marketing condition can change because of the happening to the new contestants which expanding
in the present circumstance and there will different shops in the Perinthalmanna who have a first
mover favorable position like Planet Café.

LO 4: Be able to respond to changes in the marketing environment

4.1 Report on the impact of changes in the external environment on a marketing strategy

The elements of external environment are uncontrollable but have direct influence on marketing
strategy. Thus, their existence may be either boon or threat to the organization. Efficiency of an
organization does not depend only on building strength and analyzing weakness. It requires a third
eye view for how external environment affects the organization externally and internally for
strengthening itself. If an organization is sound and efficient internally then external environment
may pose some threat on operation and profitability by imposing tax. (Banerjee, March 2002)

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Here we need to discuss about the impact of the external changes in the marketing strategies of the
Coffee Cream. for this purpose, I am using the PESTLE Framework. The PESTLE framework of
the Coffee Cream as follows:

They are in a politically stable region, Introduction of GST


cause to price increase for raw materials and decreased
profitability.
Political and economical Increased FDI in India, Increasing Disposable income
Hiking of operation and labour cost, Demonetisation in
India.
Adoption of the coffee drinking culture is an opportunity to
the coffee shop industry, preference for healthy products as
Social
people are getting educated makes way for organization to
bring out such products & increase sales.
Coffee making machines which are available for home is a
Technological threat for company. New technologies in baking helps work
easier and efficient for the workers.
Employment laws are to be followed and health related
Legal
laws.
Environmental disasters in the places where the coffee
beans and other raw materials are cultivated will make
Environmental
things tougher for the supply chain of the organization.

From the PESTLE Analysis, we can see there are numerous variables are influencing the Coffee
Cream from their outside condition. The primary factor that influence the promoting methodology
is the Social components and the financial elements for the Coffee Cream. The fundamental factor
is influencing the marketing systems of the association is the Social factor which is the way of life
of espresso drinking from cafés is expanding in the market. It is a great thing for the espresso

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cream as it helps in the development of the market. The other one is the high inclination towards
best administration and brands. This is likewise a positive thing for them as they are giving the
most ideal client administration in the association however the marking is the should be engaged
in the market. They previously made a brand in the market of Kottakkal yet the benefit
amplification from the Kottakkal is certifiably not a smart thought for the Coffee Cream as the
challenge increments. Along these lines, they need to concentrate on the extending the market to
the business sectors. In the financial components, Demonetization in India influenced the most in
the Coffee Cream. It has diminished a portion of the clients opting to visit the Coffee Cream.

From the political elements the mina factor that could horrible to them is the execution of the GST
in the items. It has expanded the cost of the items in the Coffee Cream marginally. In the financial
variables, the elements are the expanded FDI in India and expanding Disposable salary is a great
factor for the Coffee Cream when they extend their market while the climbing of activity and work
cost is an ominous factor. In the Socio-culture factor, moving of way of life to a more beneficial
mode and the high instruction level are ideal components for the Coffee Cream as the higher-class
individuals are the focused-on clients. In the innovative variables, the primary good things are they
can advancement through the internet-based life and different stages however the negative factor
for the Coffee Cream in the mechanical factor is the accessibility of modest espresso making
machines and nearness of further developed espresso making machines in home and workplaces.
Be that as it may, as I would like to think, this factor and the rising of the online are not a major
risk starting at now on the grounds that the administration is matters in the Coffee Cream, and the
individuals going to the shops are enamored with the administration and the quality which can't be
given by the online stores. The other lawful variables and the natural elements don't have high
effect on the Coffee Cream starting at now. Thus, from this we can comprehend that the
development of the stores like CCD and the Starbucks is a decent alternative for them as a brand
with an emphasis on the support of the clients.
4.2 Conduct an internal analysis to identify current strengths and weaknesses in a marketing
strategy

In this task, we have to do is the marketing audit of the Coffee Cream. In this task we have to
discuss about the market structure and the SWOT Analysis of the Coffee Cream. In the Coffee

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Cream, there is no department for the marketing and the whole marketing is controlled by the
owners. So, there is no existence of a proper marketing structure in the organization. For now, we
can analyse the Strengths and Weakness of the Coffee Cream with respect to the Marketing
Strategy of the Coffee Cream.

Strengths Weaknesses

 Brand Name  Not a vast range of differentiated

 First-mover advantage. products

 Customer retention is high  One of the better ideas but lack of


efficient expansion plan
 Best in Quality, Service and taste
 Weak in the segmentation
 Efficient Financial resource
 Marketing strategies
 High quality and modernised
machineries  Slow implantation on innovative
ideas
 Best ambience provided in the local
or competing market.  Fear of losing control

 Good employee skill and strength  The area is too primitive

When we go to the quality of the Coffee Cream, we can't give their image a chance to name a
remarkable one. Both the high class and low-class individuals acknowledge their image picture as
the best coffeehouse in the market when notwithstanding the evaluating of the items. Be that as it
may, the truth of the matter is that they are giving items that are promising at their rate.
Additionally, they have first-mover advantage available. They have first brought the idea of this
engaged café in the market. It makes them extremely exceptional to the clients. Actually, even
now they have no contender to them that can be incorporated into the vital gathering. Be that as it
may, as a nourishment and refreshment shop, they need to confront numerous rivalries from their
market.

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The Customer maintenance in the Coffee Cream is high because of the client experience given by
the shop. The atmosphere is exceptionally unwinding and impeccable. The interest for the item is
high in the market. The quality, administration and taste of the results of espresso cream is likewise
causes them in getting the clients who has visited early. One of the other factors that is offer
solidarity to them is proficient money related asset. The effective stream and reinforcement of the
monetary assets makes them monetarily stable from all other budgetary issues. This encourages
them in getting a decent income in unsurpassed through association. They are utilizing the high
caliber and modernized hardware in preparing, fermenting, and every single other movement. The
primary concern about the Coffee Cream is, similar to different shops there are not utilizing the
machine with one touch espresso making, yet the espresso, milk and the cream are made
independent and blending according to the client needs. This can make a client customization and
furthermore makes delectable. The best thing about the Coffee Cream is the nearness of high gifted
representatives and it is an advantage for the organization. They have one representative from each
Starbucks Mumbai, and Café Coffee Day Bangalore. All others are talented; a significant number
of them were laborers at CCD, and other driving Coffee shops along India. Espresso Cream is the
extraordinary compared to other idea went to the Kottakkal showcase after a great deal of research
and exertion.

The fundamental shortcoming of the Coffee Cream is that they have absence of productive
development plan. We can't make benefit augmentation from one shop from constantly. The best
way to make develop and make benefit is the extension. It is dismal that such a potential
organization is coming up short on development and plans. I ponder the absence of plans, however
the reluctance to get it going. They are stressing over the costs in the association. This could be
overwhelmed by growing and make a decent and productive dissemination channel. The dread of
losing control is the other factor that constraining back their extension plan. They are not prepared
to lose their strategies on the extension. However, this ought to be overwhelmed by a productive
arranging. Despite the fact that they have a major menu yet something is absent in the menus.
These for the most part reflect in the heated segments. The absence of sandwich and burger things
is an incredible missing in the Kerala like market. However, they are said that they will present
new scope of prepared items before the current year's over Ramadan. Another is the wasteful
division. They are sectioning their shop for just representatives and exceptionally living society

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individuals. In any case, it isn't sufficient to make benefit from one market and when going with
development plan. There is a portion in the middle of adolescents and working men, wherein
individuals spent more for the diversion and nourishment and this fragment is expanding in
practically all business sectors in India. Kottakkal is likewise honored exceptionally with this
portion. Thus, some fixing in the client portion can have some effect.

Changuvetty is the one of the noticeable center point and business center however not favored with
the schools and it is the extraordinary botched chance for them. The Marketing techniques put sent
by the Coffee Cream are not worthy and not proficient. They didn't draw out any promotions in
any piece of the market and they are offering need to the mouth exposure. This won't sufficient to
draw in the clients outside the market and get a brand mindfulness the market. The usage of new
and imaginative thoughts is delayed in the Coffee Cream. They are executing an arrangement
requiring some investment. In any case, the thoughts are executing at the Coffee Cream is done
after huge research. The region in the Coffee Cream is excessively crude. There is issue in the
space given by the association. Not every person there might whine but rather they focus on the
businessmen scanning for unwinding will require more protection. Thus, on the off chance that
they are going with the development plan, they have to think about it.

After the analysis of these strengths and the weakness, I have derived some of the opportunities
and threats for the Coffee Cream which is as follows:

Opportunities Threats

 Grow as a brand with a strong


 High competition from the local and
preference in the customer
global players
experience and service.
 Lack of expansion plan
 Enter new market

 Introduce new varieties in foods

The open doors for the Coffee Cream are very in different markets because of their one of a kind
administration quality. Thus, the Coffee Cream have as chance to develop in different markets

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with inclination to the Customer experience and administration. Develop as a chain of shops is a
superior strategy to get up to speed the brand ubiquity rapidly. This could make a space in the
market, on the grounds that in Coffee Shop Industry the most significant inclination is given to the
client experience and the client administration quality. They have a decent development open door
in the Kerala showcase in that part. In this way, the develop as a brand is a decent open door in
commanding the market. They can likewise enter the new markets with a similar item or with
assortments of items in our nation or to the outside nation. Presentation of assortments have a
major degree in this café segment. Along these lines, on the off chance that they prevail with
regards to making a superior space in the market it will be something worth being thankful for to
the Coffee Cream.

The primary danger for the Coffee Cream is rivalry from both neighborhood and worldwide player
simply like different organizations. The down falling economy of India has likewise a risk to the
association. As the organization has the base in Malappuram, Kerala, India, the nationalization of
the Gulf Countries hugely affects the economy of the Kerala State. The builds measure of the
joblessness rate and the low discretionary cashflow in these years additionally influenced the
clients in spending society. The absence of the extension plan is the significant risk to the
association. The benefit augmentation from a similar market to the association for quite a while is
never a worthy factor. Thus, in the event that they are not developed from the market, the
circumstance of the will be more awful.

4.3 Propose strategic marketing responses to key emerging themes in a marketing strategy

We have examined a significant number of the components which is going to influence the Coffee
Cream in the past errands. We recently found that the Coffee shop industry is till sprouting in the
market. Right now, the Coffee Cream additionally going with advancement of the development in
the market. Be that as it may, the development of the business can't decide for the future totally as
the advertising condition can change continuously. Thus, later on there can be numerous subjects
that will go to the associations you work. The principle topics which can be come to play in the
association will be the Globalization, Technology, Competition.

Later on, the fundamental topic will look by the Coffee Cream can be the Globalization and the
Competition. We realize that the globalization is changed the method for working together in any

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nation as the neighborhood business have bad dream of working together in the nation. For the
Coffee Cream we can say that the all-around perceived brands like Starbucks will coming to India
to each city inside the 2025. Along these lines, for withstanding the massive challenge and the
globalization, the first can do in the Coffee Cream is the making networks and fans for them which
can be an advantage in their future development. These can be predominantly accomplished
through the proficient arrangement of the relationship advertise and the Brand building. For the
brand assembling, and making the fans they can do is making the way of life of the 'Espresso
Cream Way' in the association which is should have been the one of a kind client experience inside
the Coffee Cream and it should have been encountered a similar route for the entire shop crosswise
over they go. That is the point at which the individuals go into another shop, they have to get the
comparable experience over yonder. For this a monstrous measure of the preparation is required
and there will be required spending plans yet result could be help them in their future development.

Making the networks is another path in locking the clients which have done by the Apple and the
Nike in the market. As said over, the conceivable, and the least expensive path in making networks
is the making of the local gathering in the social medias and offer advantages to the top-notch
individuals who is the utilizing the application of the Coffee Cream referenced before. By making
this network, we will get a base from the nearby network itself, this will help in the getting the
help from the base of the India. This empowers us to make a solid base of the nearby help from
India itself in the event that they go for the extension plan and the making chain of the shops
crosswise over India. One of the benefits of making this neighborhood support anyplace in India
is that the unwaveringness of the Indians is excellent for this sort of shops. This could help in
withstand with the challenge from the worldwide market players and different players in India. On
the off chance that they accomplish a huge position in the market in the market, they can go for
the other creating nations like South Africa and attempt to make a base ahead of schedule as
conceivable before it tuns to a created nation. The top of the line item in the Coffee Cream are the
Cakes. Thus, in the season of the advancement they can mark their cakes as the cake business has
a development in advancement. We can't perceive any gatherings without the cakes and cakes. In
this way, they can mark their cakes likewise in various assortments.

Through the innovative subjects, I very little almost certain about that the online shops can
obliterate the coffeehouses as the individuals come in the Coffee Shop for their experience. Be that

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as it may, one thing I question that the individuals are going to the cafés for the associating with
the companions and other and furthermore for the pressure help. Yet, we are in a universe of
confronting the happening to the age of have low enthusiasm for mingling and all are intrigued to
be a loner and devote to the cell phones. In this way, in this situation we have to consider how
bistros can hit later on. The single direction to fix it by the network creation which is said before.
In this way, the clients can know the benefit of mingling. The innovation can likewise help in the
web-based picking later on for the conveyance of the cake in a superior way and they have to make
a worthful sites with recollections in it which expected to draw in clients. There are a portion of
the transient strategies expected to done in the Coffee Cream for the refinement of the
administration. The principal thing that they are awful with their online life exercises. Along these
lines, they have to improve it. Through web-based life they can go for criticism and offering
advancement to their image, creation and so forth. Setting up of organized tab or modified gadget
in taking requests to keep away from line. The other one is the infrared set up for clients. Messages
dependent on the Special Occasions to the Customers and different approaches to improve
advancements like Conducting of the Programs or Schemes as per the Seasons which is
presentation of specials in each event like the Summer and Winter.

Conclusion

Strategic marketing management aims at to assist the organization in achieving competitive


positioning within few years. While developing a strategic marketing strategy it is important to
analyze both internal and external factors of the environment and identify the opportunistic and
treat factors. Organization must remind about the customers, the value creator, while developing
marketing strategy. The strategy should include pricing and distribution systems, and also define
communicating ways to customers. Most challenging and difficult task in strategic marketing
management is to implement it in practically. Organization should identify it drawbacks and
response to key emerging themes in a marketing strategy.

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Kotler, P, Wong, V, Saunders, J & Armstrong, G 1996, Principles of Marketing: European Edition. Prentice Hall Europe.

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