COFIX

MARKETING
PLAN
 COFIX MARKETING PLAN

Contents

INTRODUCTION...............................................................................................................................2

SITUATION ANALYSIS....................................................................................................................7

SWOT.....................................................................................................................................................7
PESTEL................................................................................................................................................10
PORTER’S 5 FORCES.............................................................................................................................12

OBJECTIVES AND DIRECTION...................................................................................................16

STRATEGY.......................................................................................................................................18

MARKET SEGMENTATION....................................................................................................................18
TARGET MARKETS...............................................................................................................................20
POSITIONING.........................................................................................................................................21
PERCEPTUAL MAPPING.........................................................................................................................23

TACTICS...........................................................................................................................................24

ACTIONS...........................................................................................................................................29

MOTIVATION FOR AN ALL EMPLOYEES FOR ALL STAGES..................................................................31

RISK MANAGEMENT.............................................................................................................................32

CONTROL.........................................................................................................................................33

CONCLUSION..................................................................................................................................34

REFERENCES..................................................................................................................................35

APPENDIX........................................................................................................................................37

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 COFIX MARKETING PLAN

Introduction
Nowadays planning plays one of the key roles in business and marketing. Successful
development of a company requires a marketing plan, which means a comprehensive analysis
of the current state of the business, detailing future marketing activities and communications
required to achieve the company's goals. The marketing plan is accompanied by an estimated
budget for each item of expenditure, an account of potential risks and a contingency plan of
action. Our team has chosen a popular coffeehouse named Cofix, for which we decided to
draw up a detailed development plan. Our choice fell on this company, because we are really
interested in analyzing the coffee market as a whole and such an interesting player in this
area. Our analysis will be based on the model of effective planning of marketing strategies -
SOSTAC. Our task is to investigate each of its components.

Relevance of this topic:

In our opinion, this activity is an excellent experience in business analytics. Today's
professionals must have the knowledge of such powerful planning tools that will be very
helpful in developing further sufficient marketing procedures.
About company:
Cofix is a young coffee brand that is today one of the main leaders in the Russian coffee
market and is famous for its unique menu, where all food and drinks are sold at one fixed
price. The aim of the company is to maintain the position of the Cofix as one of the most
recognizable and respectful brands.

Cofix's branding is impressive. Every message, every element and every effort are consistent
with a single style and mission. For 8 years of successful existence in the market, the
company has managed to develop its own marketing business strategies and accustom
millions of clients to easily recognizable and high-quality content1.

Goal: to maintain the position of the Cofix as one of the most recognizable and respectful
brands2.
Competitors

1
Zhang, 2020
2
Petrova, 2018
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 COFIX MARKETING PLAN

The segment of coffee, especially nowadays, is more popular than ever. A product such as
coffee is appreciated by almost everyone, as it tones up and makes you wake up faster, for
many people it even causes addiction. Therefore, this segment is very attractive for an
entrepreneur, however, the competition is very intense. With regards to Cofix, it has a certain
number of competitors in St. Petersburg. For instance, the data compares the main
characteristics of most competitive companies of Cofix (see Appendix A).

We select the list of most influential companies which by certain indicators can exert pressure
on Cofix:

Baggins Coffee:
It causes pressure on cofix due to the high number of coffee houses (20 branches) in St.
Petersburg. Frequently it is located near the universities that lead to reduction of Cofix
consumers among students. However, it is much inferior to Cofix in product quality and
product range. Cofix has a wide range of products focused on current trends in society like
vegan etc. And slightly higher Baggins coffee prices (125. Rub) compared to Cofix (120Rub)
on popular cheque positions also negative influence on customer flow. But at the same time,
they have equal size of coffee house area, which unsuitable for majority of consumers. It can
be considered as moderate competitor3.

Elton Coffee:
Relatively small number of coffee houses in St. Petersburg (13). However, they attract
customers with unusual coffee drinks (unique coffee cocktails) on the menu. But still,
ordinary customers who have stable preferences in taste can identify that the quality of basic
coffee drinks is lower. Accordingly, the group of experienced consumers will be more
interested in the Cofix product. But at the same time, they have quite equal size of coffee
house area, which can cause queues and losing of some part of clients. Therefore, Etlon
Coffee can be considered as moderate competitor4.
Starbucks:
Cofix (18) has more retail shops than Starbucks (16), which state that Cofix can covers the
regions of St. Petersburg. However, Starbucks is a premium coffee shop which policy usually
propose that quality coffee should be expensive. Therefore, Starbucks a focus on the more
3
Tran, 2018
4
Mungalov, 2018
3
 COFIX MARKETING PLAN

mature and wealthier consumer group, who understand feel of prestige and can afford it.
However, Cofix also promotes the idea of high-quality products, which also attracts a mature
group of buyers thanks to very significantly low prices. Besides, Starbucks gives the buyer a
sense of social prestige that generally outweighs that audience on them. What is more, Cofix
and Starbucks are similar in assortment, except for the unique drinks that are the hallmark of
Starbucks. Moreover, big coffee shop area it is strong competitive advantage as this wealthier
consumer group mostly prefer to sit inside and enjoy your coffee. Nevertheless, we can say
that cofix shares this group of customers with Starbucks. Based on this, we can claim that
Starbucks the strongest competitor this segment5.

Шоколадница:
This coffee house can be considered a full-fledged restaurant that is more directed to
promoting other dishes than on the quality of coffee and, in terms of pricing policy, is mostly
focused on a mature group of customers. However, number of “Шоколадница” coffee house
is decreased due to finical crisis in the company(19). With regards to coffee lovers, it will be
inferior to Cofix, which the quality of the offered coffee is much lower and “Шоколадница”
does not offer various milk which vital for some customers. Therefore, in turn, it leads to the
dominance of Cofix, and the capture of a wealthy audience interested in enjoying coffee. As
result, we can highlight that «Шоколадница» is a moderate competitor that will significantly
reduce its market impact in the future6.
Customer Avatar
Talking about our customers, we may describe them as the true connoisseurs of traditional
and experimental coffee drinks craving reasonable prices. But the practice of constructing a
customer avatar and consequently perform the accurate analysis is very useful for the
marketing plan.
Since our team members often visit Cofix, we paid great attention to the content of people
who often consume the products of this company. We decided to conduct an interview in one
of coffee house near “Lakhta Center” to set out the clients of the Cofix in more detail.

Thus, we interviewed 2 respondents and now can present their certain characteristics:
The First respondent:

5
Boundarenko, 2019
6
Vereshchagina, 2017
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 COFIX MARKETING PLAN

Name: Olga Vladimirovna The Second respondent:

Gender: female Name: Igor
Age: 30 years Gender: male
Geography: Saint Petersburg center Age: 20 years
Occupation: Sales manager Geography: Saint-Petersburg center
Earning: 50000 RUB Occupation: Unemployed higher
Marital Status: married education student
Preferences: coffee lover; daily attends Earning: absence
coffee house; prefers cappuccino, Marital Status: unmarried
appreciates the high quality of coffee and Preferences: Visits the coffee shop three
ingredients, and interested in convenient times a week, prefers latte, appreciates
location. affordable prices.

Although this is not a description of the entire consumer group of this company, however, it
allows us to assume about the potential consumers of this segment and their key features. There
are primarily people of different ages from 18 to 30, living in big cities, of both marital status
and of different occupations. They can be both paid workers and unemployed but commonly
they love coffee drinks.

Communication Channels
Cofix has been working in Russia since 2016 and it has well-established channels for
advertising and actively promoting its product to be always in the public eye.7
The main channels of communication with consumers are the website, Instagram and VK page,
smartphone application, advertising posters on billboards, bus stops, distribution of leaflets.
However, not all of them are effective enough in terms of attracting the attention of the
consumer.

Effective communication channels include8:

Instagram and VK page:

7
(Danaher & Rossiter, 2011)
8
(Danaher & Rossiter, 2011)
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 COFIX MARKETING PLAN

Since almost everyone has at least one page on social networks, it is easier for them to go to the
official communities of the internet company and read reviews under the posts about new
products of the company, give their recommendations, subscribe to the community, and receive
information about seasonal promotions.
Smartphone application:
In this application there is such a function as "Secret agent of Cofix", so everyone can
anonymously leave a review about the work of cooperation, or the quality of products. Also,
the application constantly notifies about new offers, and since modern people constantly have a
phone with them, this leads to instant perception and reaction.
Advertising on buses, billboards, and public transport stops:
Advertising of this format is very effective since it is constantly in the view of the consumer. In
addition, the main slogan is placed on the poster - everything from 60 rubles, which makes the
consumer want to drink a cup of coffee and not overpay. Besides the posters contain the
addresses of the coffee shop, so the consumer can immediately estimate how long to go to the
nearest coffee shop.
The ineffective way of advertising Cofix products can be attributed to:
The website:
People are less likely to visit sites, since the application is much easier to use. It contains only
the basic and necessary information for the consumer - the menu, addresses of the nearest
coffee shops and a column of reviews. In addition, when opening the site on the phone, it does
not adapt to the format of the phone screen, so it is much more difficult to hit the appropriate
button to find the information you need.
Distribution of leaflets:
An even more ineffective advertising option, since most of the consumers do not keep these
leaflets in their pockets or wallets, considering it is as a junk. At the first receipt of leaflets,
potential consumers immediately throw them away. Thus, information about the products is
lost.

Situation Analysis
SWOT
Strengths:

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 COFIX MARKETING PLAN

Strengths describe things that a company does well and qualities and features that separate this
company from its competitors. Moreover, it can be connected with internal resources such as
skilled and knowledgeable personnel and tangible assets such as intellectual property, capital,
technologies and others. For Cofix strengths can be identified the following strengths9:

o Attracting pricing strategy – Customers are interested in fixed prices and this results
into successful advertising campaign. Low prices on coffee and meals increase Cofix
target audience and allow people of different income level visit Cofix coffee houses.
o Convenient location – Cofix coffee houses are located all around the city both in the
city center and on the outskirts of the city. This gives an opportunity for every person
to quickly get to one of the coffee houses and take a cup of coffee, for example.
o Variety of partners – Cofix has a great variety of partners including such companies
and services as “Tele2”, “Еда.app” and “МЕТА digital”. These collaborations
improve the overall customer loyalty level and assure the Cofix reputation as well.
o Eco-friendly campaign – Such campaigns attract new customers because eco-
friendly movement is gaining its popularity in the modern world now. Eco-friendly
campaign can improve Cofix reputation and attract such audience as young people
who care about our environment.
o Full automation of the production line – The whole production line of Cofix is
atomized from supplies storage houses to special customer apps that make this
company technologically advanced and give it advantage on the market.

Weaknesses:
Weaknesses describe things that a company lacks and things that its competitors do better than
it. What is more, it can provide information about resource limitations and unclear unique
selling proposition. Cofix company has the following weaknesses:

o Franchise differentiation – There is no certain common rules for all franchise coffee
houses and this results into different appearance of coffee houses and level of service
provided. For example, in some coffee houses people can eat and drink inside the
coffee house and in some only takeaway option is provided. Similarly, in some coffee
shops additional personnel trainings are provided and in some there is no such option.
This can be a big problem as it can influence the overall customer satisfaction level.
9
(Ghazinoory, Abdi & Azadegan-Mehr, 2010)
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 COFIX MARKETING PLAN

o Customer quality doubts – Low prices on coffee and beverages can set up a wrong
interpretation of quality of goods as many people nowadays consider that if the price
is low – the quality is low too. People need real evidence that the quality of goods in
Cofix coffee houses is high.
o Undeveloped interior – Cofix has total black design in each of its coffee houses,
however, this attracts only teenagers and young people who are studying at
universities as other age categories can consider such design and inability to sit and
relax in some coffee shops rather inconvenient.

Opportunities:
Opportunities describe underserved markets for specific products, few competitors in the area,
emerging need for the company’s products and services and press and media coverage of the
company. Cofix opportunities can be identified as following10:

o Set common rules for the whole franchise – Common rules are essential in case of
wide franchise program so that every coffee house would have similar rules and
customers will be satisfied with the appearance of the coffee house and the services
provided no matter where it is located and who bought the franchise.
o Provide the results of quality control procedures – People need real evidence that
the quality of food and drinks in Cofix is high so regular official quality control
procedures can be implemented from the external company to receive independent
results which can guarantee customers the quality of beverages and drinks.
o Improve the appearance of Coffee houses – For many people it is essential to sit in
the coffee house, relax and chat with their friends and relatives so it can be a great
opportunity to improve the appearance of these coffee houses by introducing place
and furniture to sit inside.
o Introduce new promotion tools – Promotion should be developed all the time
because new trends appear and the company should adapt to these trends so Cofix
company should introduce modern promotion tools such as, for example, advertising
through Tik Tok platform.

Threats:
10
(Ghazinoory, Abdi & Azadegan-Mehr, 2010)
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 COFIX MARKETING PLAN

Threats11 provide information about emerging competitors, changing regulatory environment,

negative press, and media coverage, and changing customer attitudes towards the company.
The following threats can be identified for Cofix company:

o Coronavirus pandemic – Coronavirus pandemic dramatically affected the overall

restaurant industry including coffee houses due to the limitations such as restricted
working hours and only takeaway method of selling goods. All these limitations can
have a negative influence on the sales of Cofix company.
o Strong competitors – Cofix has strong competitors such as Starbucks and Baggins
coffee, for example. This means that it is rather difficult for Cofix to maintain its
position in the market and remain profitable.
o Increasing supplies price – Nowadays the inflation rate is rather high so the price for
supplies is growing with time so this is the reason why it can be difficult in the future
to maintain Cofix pricing policy in the future.
o Influence of economic crises on ordinary people – Economic crises had a negative
influence on the lives of ordinary people and some of them do not want to waste
money on cafes and restaurants and this can result into lower overall sales of the
company.

PESTEL
Political factors:
o Foreign policy: Foreign policy is about Russia's relations with partner countries of
the company, which are suppliers of resources. it is the main factor in political area
since if sanctions are imposed, it will complicate the activities of Cofix, and supply
chains will be crushed.
o Laws: Russian laws and various legal norms regulating the catering industry impose
certain restrictions on the operation of a coffee shop. The most dangerous changes in
legislation can be held in taxation and licensing fields that make a big deal of harm to
the operating of coffee shop12.

11
Mind Tools Content Team, 2021
12
(Buye, 2021)
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Economic factors:
o Demand: The purchasing power of the population is a factor determining the level of
demand for the company's products. This is important because when population
income falls, people will give preference to other alternatives.
o Inflation: Inflation is very stressful for company and company faces rising labor and
operating costs. Due to the inflationary environment in Russia, that is more than 5
annual percent - is stressful for the company due to expenses increase.
o Exchange rate: Exchange rate directly influence company's expenses and pricing
because all raw materials are purchased in dollars and euros due to the most of Cofix`
suppliers are foreign firms13.

Social factors:
o Population structure: Since the main target segment of the company are young
people, the structure of St. Petersburg population affects the attendance of Cofix.
o Social strata change: The baby boomer generation is retiring. Social strata of
population also impact the company. In Russia spending for older consumers will
decrease and will increase for Gen X and millennials.
o Upcoming Trend: Trends also influence the company. Now it is environmentally
friendly trend and «Green» consumers worry about the social and environmental costs
of the brands they consume means.

Technological factors:
o Information technology innovation: Information technology innovation is about the
development of social networks, the development of various applications for mobile
devices, have an impact on the growth of the popularity of the Cofix.
o Biotechnological innovation: These types of innovation include very important
innovations - the emergence of innovative technologies in the methods of roasting
beans and preparing drinks help to improve product quality and reduce costs.
o Service innovation: Service innovation is about development of technologies in the
field of customer service such online payment and delivery development, creation,
and simplification of online orders.

Environmental factor:

13
(Albu, 2014)
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 COFIX MARKETING PLAN

o Pollution expenses: Due to environmental pollution, the company is forced to incur

additional costs by installing additional filters on machines that deliver raw materials
and semi-finished products to coffee points of sale14.

Legal factors:
o Consumer protection laws: Consumer protection legislation forces the company to
fulfill any whim of the client, if the client thinks that the product is not perfect, then
the client can request material compensation, which complicates the work of the
company.
o Employment laws: As regards employees, there is also a privilege in Russian
legislation. A dismissed employee can sue a large amount of money in court,
moreover, before going on maternity leave or simply dismissing an employee, it is
necessary to pay the employee a guarantee, sometimes in the amount of several
salaries15.

We have prepared visual standard of PESTEL analysis, which properly shows abilities and
threats that affect Cofix (see Appendix B).

Conclusion
The analysis proves the point that in Russia at this moment factors brings more negative
effect than positive because most important factors – economic and political are mostly
negative, so Cofix is operating in a relatively instable external environment.

Porter’s 5 Forces
The current Porter’s Five Forces analysis model provides a wealth of information
about the degree of opposition of Сofix to such external conditions as: bargaining power of
customers, bargaining power of suppliers, threats of substitution products, fear of “new
players” and competitive rivalry16 (see Appendix C).

Competitive Rivalry: Strong force:

o Large number of firms:

14
(Albu, 2014)
15
(Buye, 2021)
16
(Dobbs, 2014)
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 COFIX MARKETING PLAN

Strong pressure on the sale of their products is exerted by a huge number of firms of different
sizes, which already have established competitive strategy. These firms also interested in the
similar customer segments which increases the degree of intensity of competition with Cofix.
And rapidly these firms try to compete by price reduction. Therefore, it causes strong impact
on Cofix as they already have affordable price policy which does not imply changes in prices
and even more so their significant decrease However, thanks to Cofix policy, which provides
constantly monitors the quality of products, raw materials, the development of unique options
for existing analogues, which actively influences the forces of competition. In other words,
while updating the assortment, Cofix should constantly looked for and focused on new eco-
friendly, healthy ingredients (for example, baked goods - no corn syrup; different types of
eco-milk and sugar-free syrups.
o Low switching costs:
Since many companies such as “Etlon coffee”, “Baggins” have ways to compete with only
through price reduction, which plays an important role in attracting the attention of the buyer
especially who directly interested on affordable price of products. This causes a big blow to
Cofix, because positioning themselves as the brand with the highest quality, unique and
diverse product, they are not able to significantly reduce the prices of products.

The bargaining power of buyers: Moderate force

o Low switching costs:
As we have already pointed out above, many coffee brands are ready to reduce the price to
switch the attention of the client to their Brand. This puts pressure on Cofix, since it has an
already established policy of low price that fully satisfy the consumer of different earning and
below this price, Cofix is not ready to move. Unlike other coffee shops. However, such a
decrease in price is usually accompanied by a decrease in the quality of coffee, which repels
the client, and the client will not return to the same institution again. For this reason, that the
Cofix can dominate over other brands, so despite the satisfactory price, the quality did not
fall, that is, the producer did not force the client to overpay, but also did not save on
purchasing materials.
o High degree of substitutes:

In the 21st century, such a business as coffee shops is almost the most popular. And each
client when choosing a coffee shop is often guided by his own factors such as an acceptable
chain category, convenient location and just a familiar, beloved place and social, cultural

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directions in society in terms of food and responsibility approach of shops. Therefore, this
factor still has strong force on Cofix. However, it tries to keep up with the times, to take into
account the new constantly emerging needs of customers. Even often outperforming their
competitors but unfortunately not always. Many coffee shops have long been leading a
vegetarian dish, different types of milk for a healthy lifestyle, which thus has a negative
impact on the Cofix, because it acts as a catch-up. Although not everyone is ready to offer the
same vegetarian dishes with almost no extra charge as Cofix. This can compensate for this
force, but to finally minimize it, you need to pay more attention to the preferences of different
segments.

The bargaining power of suppliers: Weak force

o A wide variety of suppliers:
This factor puts minimal pressure on Cofix. Most countries are improving their infrastructure,
establishing regional integration, which contributes to the establishment of relations not only
with the main supplier countries, but also with new potential suppliers who are ready to offer
more favorable terms of cooperation. Therefore, the Cofix does not need to fight for a
specific supplier, conduct constant negotiations and change the policy of purchasing raw
materials due to the new restrictions imposed in the supplier's country.
Cofix is presented with a large selection of potential suppliers who are ready to offer their
own conditions that satisfy the Cofix.
o Large overall supply:

This fact further weakens the strength of suppliers, which causes a fierce struggle between
suppliers for the right to supply raw materials. Even the increase in the cost of labor in the
supplying countries is not a very difficult situation for Cofix, since it is possible to change all
suppliers or introduce new farming technologies, which allows saving on labor.

Threat of substitutes: Strong force

o High availability of substitutes:

The widespread availability of restaurants, coffee shops and other outlets with a similar
assortment indicates a high risk of lost profits. Especially in St. Petersburg, where there are
coffee shops at every turn, in every neighborhood. Offering the same assortment, local coffee
shops push many people to the idea that why go further if there are nearby points. Another

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pattern that can cause such a variety of coffee shops is the thirst to try and compare. To this
end, consumers are still pushed by a fairly low price to various coffee shops. Therefore,
attraction a client on a permanent basis is a very difficult process. However, Cofix has all the
prerequisites for this - it is a low price for products, high quality, which often cannot boast of
analogues and constant updating of the range in accordance with the requirements of the
companies. Also, instant coffee drinks, coffee machines also pose a danger of changing
customer preferences. Despite the active policy of Cofix on a variety of products and constant
improvement, it is impossible to predict changes in customer preferences.
o Cheap price of substitutes:

This also poses a threat, since the economic situation of the buyer plays an important role,
and a tendency may arise that the consumer will be forced to replace Cofix products with
cheaper analogues which also produce some profitable for consumers promotions like
combination of several product in one order with affordable price.

Threat of new entrants: Moderate force

o Moderate costs of running a business:

Nowadays, a cafe is one of the most suitable forms of a business model, franchising options
for famous brands are very popular. In addition, the maintenance of one coffee house is
several times cheaper than servicing a chain of coffee houses like Cofix. Therefore, it led to
losing a certain group of customers, because new players usually select the place of the city
with almost or complete absence of coffee houses. And as result the capture the certain group
of potential customers. However, Cofix themselves provides opportunity for young
entrepreneurs to take part of Cofix team and take its franchise. So Cofix can capture the great
share of St. Petersburg market.
o High costs of brand development:

Often small, novice coffee shops do not have enough resources for brand development -
advertising, affordable purchase prices. And only thanks to convenient location for example
near metro, shopping center, they cover the certain group of customers. Nevertheless, this is
favorable for Cofix as it is company with great working experience, customer recognition.
And in some cases, the desire of some customers to get satisfaction from well-known coffee
house, force consumers to changes their daily route and visit Cofix17.

17
(Bruijl, 2018)
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Conclusion
Analyzing the strengths and weaknesses of Cofix based on the above model, it is worth
emphasizing the strong threat from competitive rivalry. The influence of these forces can be
compensated by a competently realizable strategy of intensive growth and self-promotion,
including the constant attraction of key customer segments by different activities and events.
And its competent integration with the general strategy of broad differentiation aimed at
improving the product and modifying it to provide oneself with the advantage of a unique
product.
At the same time, brand should not get out of control the power of customers, which Cofix
can reduce. Since the brand is not aimed at reducing prices, Cofix must constantly innovate
and introduce new promotion tools, for example more developed special mobile app for
customer, monitoring of special offers and accumulation of points which can awaken the
gambling of customers. and increase the flow of customers.

It is important to develop distribution channels for the product, for the convenience of remote
purchases of this product. Moreover, working with the public also provides advertising for the
brand. The constant visual availability of the brand will make the client think about the
positioning of the company and influence his desire to cooperate with Cofix.
Moreover, it is also worth moving towards a gradual compensation of the strength of new
players. Since it is simply impossible to monopolize this market, Cofix should focus more on
those segments of customers who are ready to follow Cofix and consume only its products
and sacrifice time to find this coffee shop.

Objectives and Direction

We have chosen the direction of raising awareness of customers by improving brand-specific
metrics because of the main problems of Cofix company which have been identified through
SWOT analysis. After deep analysis of Cofix threats and weaknesses we can identify the
following problems of Cofix company. They are mainly connected with low customer
awareness of the Cofix policy and incorrect approach to customer attraction. It is necessary to
separately identify each problem:
1. The main problem lies in the customer mistrust to this company. People are not sure
about the quality of served drinks and beverages and there are not public justifications
of quality control procedures. This problem arises due to the lack of customer
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 COFIX MARKETING PLAN

awareness about the main Cofix policy: “High quality for low prices” and company’s
inaction concerning this problem. It is essential to raise brand awareness in order to
provide customers with information about the true quality of goods and services and
gain trust of the target audience.
2. Another problem is incorrect tools that the company use in order to gain interest of
the audience. Nowadays the audience is rather jaded and companies need to introduce
new procedures of attracting customers in order to raise their popularity. Cofix
company has really strong competitors and it need to think over new creative tools
that can attract new customers and increase the overall popularity of the company.

The following objectives have been proposed in order to identify the best one which will
suite the situation of Cofix company and will help to solve the problems that have appeared.
o Increase the everyday flow of people in Cofix coffee houses by 20% in one year
(using updated advertising campaigns and modern promotion tools).
o Adapt up to 70% of brand products such as cups and straws in order to make
them more eco-friendly during the next five years (this will help to promote Cofix
production and attract new customers).
o Increase the number of “Cofix Club” phone app users by 30% in one year (in
order to increase customer loyalty).

To set an appropriate objective we used the SMART approach which is used to make sure
that the goal is clear and reachable.18
S – Specific (these objectives are focused on specific issues and allocated to the particular
challenge of the Cofix’s operating activities.)
M – Measurable (The objectives that are mentioned above can be easily tracked using such
tools as surveys and interviews when our aim is to measure such objectives as customer
service and some brand-specific metrics. Moreover, data from monthly reports can be used in
order to evaluate objectives that are connected with profit issues and market share.)
A – Attainable (The objectives that have been mentioned are significant for the further
development of Cofix company. In addition, this company obtains all the necessary resources
to achieve these objectivities.)
R – Relevant (The company’s mission and needs are aimed to increase Cofix’s profit and
market share but identifying its customer’s needs as the most valuable thing that should be

18
(Ogbeiwi, 2017)
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 COFIX MARKETING PLAN

taken into account while developing the plan of the future developing that is why these
objectivities can be considered relevant to the company’s mission and vision.)
T – Time Based (A specific time period have been set for every objective that have been
mentioned earlier19.)

Despite the fact that all these objectives can influence the problems of Cofix company and in
some degree can help to solve them, we decided to chose only one and focus on it. The most
reasonable objective is the first one which stays for increasing the everyday flow of people in
Cofix coffee houses by 20% in one year because it is tightly connected with customer
awareness of the Cofix company itself, its policy and overall popularity of the brand.
Moreover, in order to achieve this goal Cofix company need to renovate its advertising
campaign and introduce new tools of promotion which is directly connected with the second
problem that have been mentioned before.
To conclude this part, the following direction and objection have been identified for the
following analysis, actions and control sections of the marketing plan:

Direction: Raise brand awareness by improving brand-specific metrics.

Objective: Increase the everyday flow of people in Cofix coffee houses by 20% in one year.

Strategy
Market Segmentation
Nowadays, four main segments of the audience can be distinguished.
The actively environment involved segment:
o Psychographic segmentation - This group can be characterized as strongly
concerned about the environmental situation in the country and in the world, with an
increased level of social responsibility and moral values. However, at present this
segment in Russia is not very popular and not very large. Nevertheless, this direction
is supported by the state and the world community.
o Socio-demographic segmentation - Basically, representatives of generation Z, young
people, a student of higher education, female with an active civic position, high
ethical requirements and norms with a stable situation in the family, age range from
30 to 45 years.
19
(Ogbeiwi, 2017)
17
 COFIX MARKETING PLAN

o Geographical segmentation - Mainly residents of the central regions of the country -

Moscow, St. Petersburg20.

Main benefits:
Satisfaction with a conscious and responsive approach of the Coffeehouse and its employees
in terms of new cultural, ecological trends in society, combined with knowledge about the
safety of the products used.
Share of all buyers – 20%
Technology-oriented segment: Middle-size segment:
o Psychographic segmentation - This group values the technology side of delivering
services to customers who are primarily interested in service availability and ease of
acquisition through online ordering.
o Socio-demographic segmentation - Predominantly young people, representatives of
generation Z, in the majority of students for higher education, students of secondary
education are not excluded, and married men who are looking for convenient services,
in the age from 35 to 50 years old.
o Geographical segmentation - Also the central regions, and the developed regions of
the country21.

Main benefits:
Speed, quality, and convenience of service delivery. Often, satisfaction with the convenience
of providing a service exceeds satisfaction with the product itself.

Share of all buyers – 20%

High quality product-oriented segment:

o Psychographic segmentation - This group can be called coffee connoisseurs who are
willing to compare the qualities of coffee in different retail outlets. In most cases, they
determine the quality depending on the price.
o Socio-demographic segmentation - A relatively small segment, the main
representatives are married women, aged 25 to 45 and young people studying for
higher education are representatives of wealthy families.

20
(Goyat, 2011)
21
(Goyat, 2011)
18
 COFIX MARKETING PLAN

o Geographical segmentation - Mainly residents of the central regions of the country -

Moscow, St. Petersburg22.

Main benefits:
Satisfaction derived from product, place, and sign of privilege.

Share of all buyers – 20%

Product availability focused segment. This group is the largest:
o Psychographic segmentation - The main conditions for purchasing goods are low
price and convenient location. Naturally, coffee is considered as an object of primary
needs satisfaction.
o Socio-demographic segmentation - Predominantly the adult category of citizens
from 30 to 60 years old, the level of education varies from secondary to higher, equal
shares of married and unmarried, males and females. Students with low incomes in
the family.
o Geographical segmentation - All regions of the country.

Main benefits:
Satisfaction with price, and quick service, convenient location.

Share of all buyers – 40%

Target Markets
Target matrix:
1. High quality product segment.
2. Product availability focused segment.
Appendix D shows the full Target matrix of four segments in the market (see Appendix D)23.
Trend:
From the point of view of coffee shop attendance, the second segment can be called the most
stable and regular, since buying coffee from them is aimed at satisfying the basic need for
coffee, or waking up before the working day, and the affordable price is another incentive.
Speaking about the first and third segments, they will also show average traffic, since they

22
(Goyat, 2011)
23
(Aghdaie & Alimardani, 2015)
19
 COFIX MARKETING PLAN

can be more chaotic, because they do not want to enter a coffee shop in an inconvenient
location, a gloomy environment inside, or the lack of constant Internet support for the site.
Affinity:
From the point of view of the correspondence between the segment and products, segment 2
is more ready to consume this product, since a wide range of products are sold at an
affordable price, convenient location, fast service - there are always several cashiers and
baristas; there are self-service points. The first segment also tends to consume our products,
since coffee shops follow the International Standards for the preparation of coffee and
roasting of beans, there are always fresh products on the shelves that undergo quality control
and are updated every period.
Acquisition cost:
Regarding the high cost of attracting customers, the representatives of the second segment are
mostly middle class, and it is quite easy to attract attention due to the already existing pricing
policy. However, it makes sense to attract the first segment, although these are people of a
higher class, but Cofix promotes coffee and products that meet European and International
quality standards.
Competitive Rivalry:
In terms of competitive rivalry, relatively low performance in segments 1,2,4. The conditions
for using Cofix advantages are in the rivalry of the price policy, a greater number of points
and high quality, also adapted menu for vegetarians. Therefore, despite the larger number of
competing points, our brand has a well-established image and very pleasant poster and
advertisement with open call to buy cheap and quality food. And most likely, when entering
the metro, a visitor will choose our store from two coffee houses.
Targeting strategy:
As a result, Сofix will build its target strategy around the first and second segments. Since it
is possible to build an image of its target audience:
o This is the middle class that is interested in fast service combined with an acceptable
price of goods.
o And at the same time, they presented a higher class interested in high-quality coffee,
products oriented to new trends in society, satisfying the need to enjoy the product -
its taste, quality, and places of manufacture of this product (a sense of prestige)24.

24
(Ward, 2020)
20
 COFIX MARKETING PLAN

Positioning
Cofix has decided to position itself using unconventional marketing strategy that is unique
and not usually used by other companies in the industry due to difficulties of its achieving.
They positioned themselves as small and cheap coffee shops that contain both high quality
products and a fairly low price for these products, offering customers delicious coffee and
various desserts for it.25
Thus, we can say that Cofix positioned itself as a coffee shop where people can take coffee
with themselves while they are going somewhere, take a little coffee break and surf the
Internet during taking the rest as well as for informal meetings because the main focus of the
company is on increasing the quantity of products sold, trying to serve as many clients as
possible.26

Elements of differentiation:
o Pricing: fair and low prices;
o Product variety: a wide range of products offered to the buyer including hot and cold
drinks, salads, sandwiches, desserts and other products for people living at the pace of
the 21st century;
o Availability: large and frequent distribution of the coffee shops throughout the city;
o Promotion: following trends and spreading through the app;
o Design and atmosphere: stylish quickly recognizable design with pleasant
atmosphere;
o Reliability: trust in the brand due to the high quality of products;
o Service: high-quality and fast service.

According to the Positioning Matrix table (see Appendix E) it can be observed that the most
two important elements of differentiation – competitive advantages are pricing and
availability.27

25
(Khrennikov, 2016)
26
(Camilleri, 2017)
27
(Kalafatis, Tsogas, & Blankson, 2000)
21
 COFIX MARKETING PLAN

To begin with, pricing is implemented through penetration pricing strategy that only
few companies use, however, by using this strategy Cofix has achieved an amazing market
advantage that competitors cannot reach.
What is more, If we consider prices in more detailed way it can be observed that:
1) All prices are very low – there are no products that cost more than 180 rubles (180 rubles
is the maximum price in the coffee shop);
2) According to scaled pricing, the prices differ according to the volume of coffee. So, for
the smallest cup of coffee it will be 60 rubles, for middle cup that is 2 times bigger than
the smallest it will be 120 rubles and for a triple portion it will be 180 rubles (the highest
price in the coffee shop, as it was already mentioned). Here, it can be seen that all price is
fairly distributed according to the volumes;
3) The last but not the least is the food price. The price range of food also lies in the interval
from 60 rubles to 180 rubles. Despite the fact that food is diversified, its prices still very
low by using economies of scale strategy when large volumes of product are produced.
Appendix F shows the actual prices of the Cofix menu (see Appendix F).

Availability is the second important element of differentiation. It manifests itself as in

the huge distribution of coffee shops throughout the city, even in distant from the centre
places, as in the diversity of availability of points of various formats fitting into the
infrastructure of the city. For example, there are coffee shops with large rooms, chairs to
relax while some points are « with a through-passage» when there is only a bar counter
without seats so that a person can take coffee with him in a crowded place.28
The poorest element of differentiation is a promotion that is about advertisement
campaigns, following trends and other promotion tools. This element is low due to the
delayed company`s reaction to modern trends as an eco-friendly trend in which the company
began to penetrate actively. Moreover, the company recently developed its web app and is
now promoting it, trying to increase customer coverage and loyalty through the app. The last
but not the least point is that Cofix doesn`t has strong advertising campaigns unlike its main
competitor – Starbucks - you rarely see ads of Cofix. Therefore, Cofix will try to increase
brand awareness by using upgraded ads campaigns.

28
(Khrennikov, 2016)
22
 COFIX MARKETING PLAN

Perceptual mapping
Comparison elements: price and quality.
According to perceptual mapping (see Appendix G), it can be seen, that Cofix takes a
competitive advantage by offering rather high-quality products despite the fact that it charges
the lowest prices compared to competitors. This strategy, which has shown rapid success, is
used to attract cost-conscious buyers and entice customers from competitors because the main
competing coffee chains have prices one level higher. If we consider the most successful
competitor of Cofix – Starbucks – it is seen that high quality is achieved through charging
very high prices, even unfair high prices due to prestige of the Starbucks. The other 2
potential competitors, Baggins and Etlon, that rival Cofix don`t achieve so high a level of
quality as Starbucks to beat Cofix with the same quality but lower prices. Thus, we conclude
that Cofix actually has only one competitor – Starbucks, that wins a bit with higher prestige
and quality.29
What is more, here are some other points that should be mentioned about positioning
of Cofix. Brand is positioned in both ways: expressive and functional. From positioning
approaches view we can see that Cofix is market related and customer related. Firstly,
market related approach can be seen in their advertising campaigns when it was written
«Nothing but cofix» meaning that this brand is the best on the market. Secondly, customer
related approach is traced through advertisement with phrase «Food and drinks at the fairest
price», offering a unique reason for the buyer to buy the product.

Tactics
Product:
Cofix products are based on understanding the needs of the target audience. Therefore, brand
symbols, quality level based on consumer perception, appearance of products, variety of
assortment will be taken into account by Cofix.30
The core benefit is a direct purchase of the main product of Cofix – coffee. The expected
product is associated with the needs of consumers as it was already mentioned – high quality
tasty coffee in stylish packaging.
1) Firstly, Design of each coffee shop should be sustained in strict, but nevertheless
pleasant and attractive colors - brown, white, dark. Also, all coffee shops should use

29
(Gigauri, 2019)
30
(Rafiq & Ahmed, 1995)
23
 COFIX MARKETING PLAN

minimalism - a design that denies any unnecessary items, creating space and freedom.
Secondly, nevertheless the logo is extremely restrained, its dimensions should be very
large. This will be done so that people from far away could see the coffee shop.

2) Appearance of the product is very important and many companies on the market are
distinguished by a unique design of a product. That is why the total black and
minimalistic design of Сofix packaging stands out of the variety of the other products.
Therefore, a cup of coffee should be very noticeable on the street that is why Cofix
will make brighter white color design of the brand logo on the packaging for greater
contrast.

3) Variety of the assortment were considered from the view of a person in a hurry to get
to work. Consequently, Cofix should provide baking, lunches, breakfast, that allows
consumer to have a very quick but satisfying snack.

4) Quality level was considered from customers view, and we have come to the
conclusion that the most important for people to feel not the smell, but the outstanding
taste. Therefore, high quality grains of the middle price segment will be purchased to
make an outstanding taste.

Pricing strategy:
Pricing strategy of the Cofix company is Penetration pricing – when the price of a product
is initially set low to quickly reach a large portion of the market and initiate word of mouth. It
has low prices for all food and beverages and widely provide fixed prices. We suggest to
make a set of strategies (to add one more strategy) and implement pricing through 2 strategies
that are based on price reductions to make the profit margin larger despite low prices. The
first one is economies of scale – when the company produces a high quantity of products,
consequently making the price of the product very low, it is about the enlargement of
production. It can be observed on the Figure 1 that increasing output leads to lower costs
making the profitability higher. This is essential for us to have free money at our disposal for
the successful execution of actions aimed at increasing the flow of customers. The second
one is called scaled pricing – it is already used by Cofix - when a customer is offered the
option of paying more for additional value. This approach provides the flexibility of customer

24
 COFIX MARKETING PLAN

needs` satisfaction. This set of strategies is much better instead of other strategies because all
of the citizens of Russia have an opportunity to buy high-quality products in Cofix for low
prices. Therefore, this pricing strategy helps us to achieve our objective: raise brand
awareness and increase competitiveness. Thus, low pricing is the main competitive advantage
and the most stable format during the crisis.31
Appendix H shows the Diagram of Economics of scale (see Appendix H).
Distribution Channels:
The most usable distribution channel for Coffix company is to sell products directly when a
manufacturer sells its product directly to the end user without intermediaries. This channel is
more effective instead of others because our company do not need wholesalers and retailers
as we sell «fast-food» products. Potential consumers of Cofix brand want to take coffee and
eat some snacks quickly, so they can buy all products in our coffee shops that shops that are
located everywhere.

Promotion:
Communication with the consumer is an important part of our project. Thanks to this, people
will be able to get to know our brand, understand its value and mission. Through a
communication company, we are going to build loyalty, awareness, and interest in the brand.

Our idea is to combine digital and engaging promotion. Most of the communication will be
through popular social networks like Instagram and YouTube. Company strives for
transparency, we want the buyer to be close to the company, to share our successes and
achievements, work results and contribution. This is the only way the customer can trust.
Meetings, educational webinars and interviews with managers and specialists of the company
will be held through online streams on YouTube with the live chat opened. Secondly, the
most popular promotion methods, that will be used, are native advertising, which occurs
when viewing various sites, as well as targeted advertising on the Tiktok, Instagram,
VKontakte and Facebook platforms. Also, an important method of promotion is the
maintenance of two social networks - Instagram and Vkontakte. Surprisingly, Cofix does not
have advertising on the YouTube platform, as well as maintaining a YouTube channel.

Brand new information about our phone app “Cofix Club” will be also popping up there just
in time, so that our followers get to know about updates and promotions promptly. Moreover,
31
(Rafiq & Ahmed, 1995)
25
 COFIX MARKETING PLAN

we are going to raffle prizes among subscribers, as well as cooperate with bloggers for
advertising on the Instagram, as the most demanded platform nowadays.

Speaking about offline traditional communication tools, we have chosen billboard

advertisements. Old-fashioned, but effective and working method to make the brand noticed
by the buyer. For instance, “One low price - one high quality. Try COFFIX for yourself!”
will definitely make a person interested due to such customer related approach.
Furthermore, sampling is a perfect way to engage simple walking around people and
encourage them to try for themselves the product, and that trial may potentially lead to the
regular purchases of our coffee. We will organize such events in crowded places, as well as
during holidays and festivals in large cities. Events play an important role in offline
advertising and Cofix started offline campaign with experimenting with new formats of
coffee shop. For example, a few weeks ago, Cofix opened a street food outlet where people
could taste any food in the world, thus Cofix attracted 4 times more customers than
predicted.32

Our message we going to deliver: “Are you in seeking coffee with the most attractive
prices, modern look, and eco-friendly policy? Congrats that you have found
COFFIX !!!!”

Eco-friendly: Cofix has eliminated the use of disposable plastic straws by creating caps
without tubes and by using straws from the alternative materials from all around the world.
Paper is the most suitable and popular one today.

What is the audience? Our goal market are all consumers who is in love with coffee, who
cannot imagine their life without coffee at the morning or simply during the day. Age is not
the limit in our campaign. As many people of all society layers, as possible. So Cofix will use
pull strategy due to customer orientation.

Expectations: highly raised brand popularity, increased mobile app downloads, active
discussions, reviews, disputes, rumors on the Internet and throughout social networks.

32
(Avlonitis, 2016)

26
 COFIX MARKETING PLAN

People:

Cofix's marketing mix will pay special attention to the development of personnel and the
creation of a professional team capable of serving customers with maximum diligence. Each
employee is essential in achieving common goals, since an untrained and not mastered
employee will not be able to provide the client with a decent level of service that Cofix
constantly mentions.33

Based on this, uncertainty in the actions of employees will visually frighten customers and
lead to a decrease in the total flow of customers to the coffee shop.

Therefore, Cofix carefully thinks out the strategy of training, and the development of an
employee in a new workplace, pay special attention to:

o Training in working with equipment (Practical tasks to improve the technique of

making coffee, cooking and reheating food and etc.)
o Training to work directly with the client. (This includes imparting practical skills for
polite customer contact and expression of loyalty.
o Building Organizational Responsibility (That is, instilling in employees a sense of
high responsibility for the quality of the materials used, the coffee making process,
observance of public hygiene and personal hygiene)
o The formation of personal motivation among employees (a sense of employee interest
is the key to the success of relationships between clients. If staff is fully motivated, it
will completely be invested in process of making, servicing and producing coffee, in
communicating with the client, and at the same time carefully advertise other Cofix
products)34

Physical evidence:

Physical evidence of Cofix:

1) Firstly, a huge number of coffee houses with a large brand logos in all their diversity:
from small stands to full-fledged cafes with a cozy design and a sense of space, it will
be wider due to the opening of a street food cafe.
33
(Avlonitis, 2016)
34
(Rafiq & Ahmed, 1995)
27
 COFIX MARKETING PLAN

2) Secondly, its noticeable style of cups that can be seen in the hands of people strongly
influences the presence of the brand in the city, due to the fact that people leave these
cups and just walk with them.
3) Thirdly, brand presence on social networks is one of the physical evidence elements -
Instagram, Facebook, Youtube, Vkontakte and website should be maintained and
uninterrupted support on these sites should work daily.
4) Finally, the uniform of the employees is also an essential element of physical
evidence, so the Cofix will issue new eye-catching clothing for employees working in
coffee shops and other employees working in offices.

Process:

The process of delivering the service will be standardized in Cofix. It will start with
informing the client about Cofix in any way: from advertising and a fast-working stylish
website to word of mouth. The next task is to encourage the client to take concrete action
with the slogan "the most delicious coffee at a very low price". At the next stage, right at the
moment of serving the client, the client does not have to wait long for his order, because the
special feature of Cofix is the very fast speed of coffee preparation. But if the client does not
like the provided product or service, he can demand full immediate compensation, which
means that it is important to take care of their customers. The next step is customer retention
by informing about new promotions through the application or website.35

Actions
Some notes: due to the ever-changing situation with the coronavirus, it is impossible to say
exactly how clearly the time frame will be fulfilled. Since the aggravation of the situation in
St. Petersburg may lead to significant delays in some of the planned steps.
Budget: 87 million rubles. Our budget includes the following items of expenditure:

o SMM managers salary fund - 3.5 million rubles for six months
o Event managers salary fund – 3 million rubles for six months
o Expenses for targeted advertising - 10 million rubles
o Expenses for opening points of new formats for events - 25 million rubles
o Organization of events and master classes for half a year - 45 million rubles
35
(Rafiq & Ahmed, 1995)
28
 COFIX MARKETING PLAN

o Expenses for contests for six months - 500 thousand rubles

Outsourcing:
Our plan involves hiring eight SMM managers who are dedicated to creating and
distributing targeted advertisement on YouTube, Instagram, and other social networks. In
addition, we hire three event managers to organize social activities that are suitable for the
specifics of our company.
In Appendix I we show all the steps of our actions (see Appendix I)36

First step: (the duration from 2 weeks to 5 weeks):

Cofix will launch various contests, quizzes, and sweepstakes to increase interest to our brand
and stimulate the sale of our products. With this method, you can choose several directions
for applying this sweepstakes:
o Gift giving of 700-gram packs of coffee for those who purchased 20 cups of coffee
during the promotion period.
The basis of this competition will be a contract with a wholesale coffee supplier “Majaro”,
which is new supplier for the company. In this way, gambling people will “cling” to this
competition and, accordingly, will visit Cofix more often and buy coffee more frequently.
One more advantage that this promotion tool can be repeated several times per year.
o Raffle of 5 professional “Delonghi” coffee makers for the amount of money in
checks more than 15 thousand during the promotion period.
The basis of this tool is making a contact with the “Delonghi” company about the free
delivery of 5 coffee machines. In exchange, Cofix provides brands of coffee machine with
advertising, and in the eyes of the consumer associates Cofix also with a well-known and
reliable brand of coffee machines.

Second step: (the duration from 3 weeks to 7 weeks):

Since the company has specialists who are engaged in promoting the brand on Instagram and
Vk, Cofix loses a large audience of Youtube fans on the Internet. Consequently, Cofix hires 8
SMM managers on permanent basis for constant control of activities and promotion, and for

36
(Chaffey & Smith, 2017)
29
 COFIX MARKETING PLAN

sudden reaction to changes in the views of subscribers. So, it creates a working team to
actively promote the brand in the following areas:
o Two specialists from the team will actively develop and increase number of
subscribers the Cofix YouTube channel, promotes products of the Cofix in
entertainment way. Because according to statistics, the most loyal consumers are
YouTube users.
o Another six specialists will be responsible for the creation of popular, viral targeted
advertisement for both social networks and especially YouTube. They will target an
audience with an average age of 15-45. Advertisement will be constantly broadcast
before the video and remind the viewer of the existence of such a brand as Cofix and
cause a desire to visit coffee house thanks to the mind-blowing delicious products and
entertainment content.

Third step: (the duration from 4 weeks to 9 weeks):

Cofix will organize various events to attract the attention of customers through the hype.
Thanks to gradual removal of restrictions from the coronavirus. Moreover, a lot of people
after a period of self-isolation, eager to go out and interact with the public. For this, at the
third stage, Cofix will hire three event managers who will directly deal with the selection of
the event topic and the organization itself. 37
Mass events will also differ in their specifics:
o The opening of a new street food outlet:
It will be accompanied by a free distribution of Cofix products, distribution of coupons for
the next purchase, and free coffee of certain categories.
o Hosting an event with tasting of different types of coffee from all over the world:
This is held in several central coffee houses in the city, where baristas make coffee with
exotic varieties of coffee beans at the usual Cofix prices.
o Conducting master classes:
At these events, baristas give practical lessons on making coffee with various flavors, milk
and additives, give advice on improving the process of making coffee under home conditions.

Motivation for an all employees for all stages

Reward system:
37
(Piercy & Morgan, 1994)
30
 COFIX MARKETING PLAN

During many steps, for example, organizing events, a specialist who will participate in public
master classes, they will be provided with bonuses such as cash rewards, bonuses at the end
of the month for contribution to organization events.
Self-Satisfaction:
As Сofix continues to evolve and the recognition of Сofix increases, therefore many
employees will be satisfied that they are part of this organization.
Acquisition new knowledge:
For example, the specialists involved in advertising on social networks and YouTude will
also give direct instructions to baristas, cashiers, so that they entice the customer after buying
coffee to visit our page in social networks, or watch a video related to his purchase on our
youtude channel. As a result, the advertising specialists will pass on some knowledge to all
the workers involved in the sales system38.

Risk Management
o The risk associated with the introduction of new restrictions due to the
coronavirus pandemic. Then, according to the contingency plan, all major events
that involve the presence of many people as master classes will be transferred to the
online format, that is, anyone who wants to take part can enter to the YouTube
channel, where the online broadcast will take place. This will be especially acute only
for tastings of foreign coffee, but this can be organized through the online application
Cofix. By means of stimulating customers through the absence of delivery prices,
people can still accept ordering various exotic varieties of coffee and thereby
participate in events. And this will also allow Cofix to save money by reducing some
budget expenditures)

o The risk associated with a lack of funds for other steps. The contingency plan
involves taking money from contingency extra funds or searching for investors, and
thanks to the funds received, change some steps. For instance, the several events of
the third step can be combine into one, while providing advertising to the investor.
Other actions in such a situation are to artificially suspend the following stages, and
assess the overall progress for the company at current stage.

38
(Chaffey & Smith, 2017)
31
 COFIX MARKETING PLAN

o The risk associated with the failure of an advertising campaign on YouTube.

This is an unlikely event, but the contingency plan implies redirecting the work of
SMM managers to other social networks like Telegram and WhatsApp to consider
targeted advertising. And redistribute the funds remaining from this stage between the
next stages in order to increase their advertising efficiency. As an option with the
money saved, invite a popular actor or public figure for the event, so that further he
will be associated with Cofix among clients.

Control
To ensure that the first step is successful, we must look at the financial metrics (sales KPI)
of the company. We need to look at them because, through contests and giveaways, we attract
a flow of customers, which will lead to sales increase. Hence, we need to look at sales-related
financial simple metrics such as Profits and Sales volume. However, we can consider some
advanced metrics as Gross Profit and Operating Cash flow. We look at Gross Profit to see
how much revenue is left after subtracting the cost of goods sold, and we look at operating
cash flow to measure how much cash the business has as a result of its operations. All of
these metrics will be compared to the previous periods. These KPI should be monitored every
month by administration department including managers.39
To make sure that the second step is successful, we can use simple metrics such as the
number of views under the video on YouTube, the number of subscribers on the
YouTube channel. Moreover, to make sure that targeted advertising works, we will look at
metrics such as Impressions, Clicks, Click-through-rate and Cost-per-click. These metrics
will show how many people have seen our advertisement, how many clicked on it, how much
the client`s click cost. These metrics should be monitored frequently – weekly – to be aware
of how targeting campaigns are going, because the key point is a contingent response the
slightest change in statistics.40
To make sure that the last step is successful, we can simply estimate the number of
people who attend our master classes and events, it is also important for us to measure
customer satisfaction. Customer satisfaction will be known by collecting data by
questionnaires to measure exactly how satisfied customers are with our events. The required
amount of satisfied people should be at least 70 percent mean about success of the step.
Surveys will take place after each event and will be launched by the marketing team. The
39
(Stobierski, 2020)
40
(Kosir, 2015)
32
 COFIX MARKETING PLAN

survey data will be analyzed by the analytical department, including managers who can carry
out qualitative analysis and sentiment analysis of the respondents' answers.

Conclusion
To sum up, our team emphasize that Cofix is a unique coffee shop because it combines a
policy of affordable prices with high quality products, which is a rarity. And thanks to this,
Cofix can compete freely, without losing its original positioning, and without changing the
basic concept of the brand.
The existing means of advertising influence on the consumer now effectively carry out the
task of promoting the Cofix. However, to achieve further goals of extent company ownership
zones in the market, the approach to the self-promotion of Cofix should be refined. We are
convinced that our marketing plan is really exclusive because in our project we were able to
look at the company from completely different angles and used mixed approaches through
some combinations of them.
Thus, we believe that Cofix will be successful in increasing the flow of customers and the
recognition of its brand, since they have the necessary experience and have a basis for future
advertising actions. And because of the above-mentioned specific actions, the implementation
of which must be observed in a certain sequence. Consequently, it will lead to Cofix ability to
attract more customers and capture a significant share of the market segment of interest.

33
 COFIX MARKETING PLAN

References
Cossa, D. (2020). As a pandemic, MATE digital and "Food. app" helped the Cofix network
launch ecommerce and increase the average check. International Journal of Entrepreneurship,
40, 200-328. Retrieved from: https://studiopanda.ru/novosti/kak-pandemija-mate-digital-i-
eda-app-pomogli-seti-cofix-zapustit-ecommerce-i-povysit-srednij-chek/

Lang, V.К. (2020). Your Ultimate Guide to Marketing Objectives (Define, Measure &
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Appendix
Appendix A: Main Cofix Competitors

Coffee house

Variables Cofix Starbucks Шоколадница Elton Coffee Baggings Coffee

Share of St.
Petersburg 15% 13,30% 16,00% 9,80% 10%
market
Number of
18 16 19 13 20
branches
Quality of
High-quality High-quality Medium quality Medium quality Medium quality
coffee
Price per
cappuccino
120 RUB 265 RUB 140 RUB 105 RUB 125 RUB
(250
milliliters)
A wide range of
products
A wide range of
All types of
products
coffee, different All types of coffee,
All types of coffee, All types of
Variety of milk, breakfast, breakfast, lunch,
different milk, coffee, snacks, All types of
lunch, healthy desserts, snacks,
products breakfast, lunch, vegan unique coffee coffee, snacks
menu, desserts, juices, various
menu, desserts, cocktails.
snacks, juices, drinks.
snacks, juices, various
various drinks,
drinks.
unique coffee
cocktails.
Coffee shop
small big big small small
area

Appendix B: Pestel Analysis

Ability (+) Probability Impact on the

Group of factors Factors In total
or Threat (-) [0,1] * company [1,5]
Foreign Policy - 0,9 5 -4,5
Political
Laws - 0,7 4 -2,8
Demand - 0,7 5 -3,5
Economic Inflation - 0,8 3 -2,4
Exchange rate - 0,7 5 -3,5

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 COFIX MARKETING PLAN

Demography + 0,6 3 1,8

Social Social strata change + 0,8 4 3,2

Upcoming trend - 0,8 2 -1,6

Information Technology + 0,8 4 3,2

Biotechnological
Technological + 0,7 4 2,8
innovation

Service innovation + 0,8 3 2,4

Environmental Pollution expenses - 0,7 2 -1,4

Consumer protection
- 0,9 2 -1,8
laws
Legal
Employment protection
- 0,9 1 -0,9
laws

Appendix C: Porter’s Five Forces Analysis

The bargaining
power of suppliers
A wide variety of
suppliers
Large overall supply

The bargaining Competitive Rivalry Treat of substitutes

power of buyers High availability
Low switching cost Large number of firms substitute
The high degree of Low switching cost Cheap price of
substitutes substitutes

Treat of new
entrance
Moderate costs of
running a business
Appendix
HighD: Target
cost Matrix
of brand
development

Size Trend Affinity ACQUISITION COMPETITIVE PROFITABILITY

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 COFIX MARKETING PLAN
COST RIVARLY

Segment 1 +++ +++ +++ ++ +++ +++

Segment 2 ++++ ++++ ++++ + +++ ++++

Segment 3 +++ +++ ++ +++ ++++ ++

Segment 4 +++ ++ ++ +++ +++ ++

Appendix E: Positioning Matrix

Not easy
Important Distinctive Superior Communicable
copied

Pricing 10 9 8 9 8

Product
6 4 6 5 2
variety

Availability 6 7 7 6 8

Proportion 7 2 4 6 3

Design and
6 6 7 7 2
Atmosphere

Reliability 8 5 6 4 7

Service 8 7 6 4 5

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 COFIX MARKETING PLAN

Appendix F: Cofix
Menu

Appendix G: Perceptual Mapping

High quality

Starbucks

Elton 39
Cofix Coffee
Baggins
Coffee
Low Price High Price
 Шоколадница

COFIX MARKETING PLAN

Low quality

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 COFIX MARKETING PLAN

Appendix H: Diagram of economies of scale

£ 

Increasing
output leads to
lower average
costs
P1

P2

Q1
Q
Q2

Appendix I: Our Steps for Actions

Start of
promotion.

Cofix will hold various

contests, quizzes, and
sweepstakes to increase
interest to our brand and
stimulate the sale of our
Step 1 products.

Gift giving of 700-gram

packs of coffee for those Raffle of 5 professional
who purchased 20 cups of “Delonghi” coffee makers
coffee during the promotion for the amount of money in
period. checks more than 15
thousand.

Cofix hires 8 SMM managers

on permanent basis for
constant control of activities
and promotion, and for Step 2
sudden reaction to changes
in the views of subscribers.
Creation of popular, viral
targeted advertisement for
Actively develop and increase both social networks and
number of subscribers the especially YouTude.
Cofix YouTube channel.

Cofix will organize various

events to attract the attention
of customers through the
Step 3 hype.

Hosting an event with

tasting of different
The opening of a new Сconducting master
types of coffee from all
street food outlet. classes.
over the world.

Increased flow of 41
customers