Higher-Education Faculty

Assignment Cover Sheet

Subject Marketing Management

Subject Code and
___HI5004___ Group1 x Group 2 □ Group3 □ Group 4 □
Group
Lecturer Anh LE
Assignment Title Group Report 1
Due date 30/09/2019
Submission Date 29/09/2019
Contact details Student’s name Thi Xuan Yen LE

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Telephone No 0423 109 489

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Student Email: [email protected]

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STUDENT/S PLEASE NOTE: I/We certify that:

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1. This assignment is my/our work. I/we acknowledged and disclosed fully any
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assistance received in its preparation and cited any sources from which I/we used
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data, ideas, words, either quoted directly or paraphrased.

2. This assignment was prepared by me/us specifically and only for this subject.
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3. This assignment has successfully been submitted to the FINAL CHECK via
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SafeAssign/Blackboard and the SafeAssign report is attached to this assignment.

►Student name: _____Thi Xuan Yen LE______Signature: __ _________

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4. This assignment is identical with the work submitted via SafeAssign/Blackboard.

Student name/s Student number Signature
Thi Xuan Yen LE JEC3049
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This cover sheet and the SafeAssign Paper Information must both
be attached to your assignment.
Melbourne - 185 Spring Street, Melbourne Australia 3000, Telephone: +61 3 9662
2055, Facsimile: +61 3 9662 2083
Sydney - Level 6, 91 York Street, Sydney Australia 2000, Telephone: + 61 2 9299
1400, Facsimile: +61 2 9299 0211
Holmes Commercial Colleges (Melbourne) Ltd ABN 50 005 085 585 Email:
[email protected] Website: www.holmes.edu.au

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 Table of Contents
Introduction......................................................................................................................................3
Competitive Information.................................................................................................................4
Environmental scanning.................................................................................................................4
Market demand forecasting...........................................................................................................5
Segmentation and targeting..........................................................................................................7
Positioning.......................................................................................................................................8

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HI5004
This study source – Marketing
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 Introduction

This report aims to introduce our plan as opening a new coffee shop which provides
a good quality customer service and creates a unique ambience. We are focusing on
opening a coffee shop that plays suitable kinds of music based on the analysation
from “Rekignition”. In details, the technology that we are using can analyse kinds of
music that customers prefer based on the coffee that they order and their facial
expression. In our coffee shop, we have some specific areas that play different types
of music; after ordering coffee, customers can be arranged to sit in the area that is
suitable to their liking. We also offer customers a reward scheme, which allows
members to sign up themselves by using through the face recognition system. As we
are living in a world that many people are stressed, the main purpose of operating

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this coffee shop is to create a relaxing and comfortable environment.

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 Competitive Information

Competitor is one of the vital factors needs to be considered. It is important for

business to understand who their competitors are and what need to know from
competitors. Therefore, it is important for firms to research and analyse all the
information from theirs competitors; in order to gain competitive advantage in the
intense competitive market. By collecting the information, organisation should need
to come up with the strategy plans, with how and what goals are they going to
achieve. For example, SWOT analysis is one of the strategies commonly used in the
business, which considers internal and external environment factors. On the other
hand, one of competitors that we can put into consideration is Starbucks. It is the

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largest coffee chain store around the world within the coffee industry. It’s obviously

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shown that both businesses are selling the same product on selling coffee drinks, but

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one thing can be differentiate from the competitors, which can be the service, quality
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of coffee beans, prices, ambience and mores. According to the research, Starbucks
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was fails to pay attention to the Australian coffee preferences and culture. In
Australia, most of the Australian would prefers go for the local coffee stores, as the
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quality of the beans textures is different comparing to American coffees. As in the

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early years before Stabucks step into Australia, Australia has already built up its own
coffee cultures. However, the coffee of the prices can be a matter as well in the
competitive market. Hence, we can still see there is a lot of the local coffee shop still
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successfully sustained in the industry, that is because the local firms truly know who
is theirs target market and what they want and need, and understands well the
competitors, most importantly is based on research about the customer needs,
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adding value to the product, to attract more customers and gain profitability, in aim to
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achieve the goal and objective.

Environmental scanning

Opening up a new coffee shop requires well studies and research to all factors that
may impact the long-term viability of the business. It not only helps the business find
its strengths in its current environment but it also identifies the weakness of
competitors, potential customers and coming technological platforms and devices

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 that can be best used to sell a product or service. All internal and external factors
can be analyzed as below.

. Strength

One of the outstanding advantages is the various services and products offered. This
is a coffee shop that serves desire music and high quality coffee. By using
technology, customers will be listened to a type of music that is suitable to their
liking; creating a unique ambience that promotes relaxation. In addition, we are using
technology to scan facial emotion of customers; therefore, customers can be
arranged to areas that suit their moods. Furthermore, all baristas have been trained
to treat the coffee by their hearts and adjust the taste and quality every day; hence,
providing best quality is guaranteed. Hi-speed of Wifi is also a strong point that

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allows customer to spend their time using technology devices.

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. Weakness

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Based on the fact that not all customers are music-lovers and the software plays the
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music based on the majority types of coffee has been ordered, some people may not
be enthusiastic about this factor which leads to uncertainty of customer loyalty.
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Opportunities

Drinking coffee is part of Australia's culture, a lot of people who love coffee desire a
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high quality taste and a new unique place to spend time with their friends or even
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alone time.

Threats
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The biggest threat is all current existing coffee shops which can be local or franchise
coffee shops. Furthermore, other target market trends such as milk tea or alternative
healthy beverage. Changing prices of coffee beans and instant coffee with cheaper
price are also should be put into consideration.

Market demand forecasting

In order to predict the demand for our cafe, we use a combination of forecasting
methods to get accurate parameters to maintain our goal of survival, stable sales in
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 the short-term plan and grow into chain of coffee in the medium-term plan and can
become the franchise brand in the long-term plan of the future.

Step 1: Collect information

Based on the information we collect, we will select specific products to serve

potential customers to maintain and grow sales.

Review your marketing plan: Any marketing or promotion program that may help
increase product demand. We will explore the data to create a sound marketing plan
and then re-evaluate how successful the plan is, the advantages and disadvantages
of that plan. For example, do special promotions or holiday promotions stimulate our
products? From there we take all into account when forecasting demand, especially

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if we intend to repeat the used sales strategy.

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In addition, we reviewed the main indicators. Determine the cause of the customer's

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product needs. Key indicators include demographic and environmental factors.

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Demographics include age, gender, geographic location and any other group of
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identifying characteristics. For example, extremely harsh winters can be the cause of
a drop in sales.
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Next we have to Look at the market. Analyze every word and deed of competitors,
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customers, and any other participants in our market. For example: Considering
whether a competitor is running a major promotion or sales campaign.
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Finally we reviewed the previous months. We look at previous month's figures, sales
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discrepancies, and see if there are any factors that influence the parameters, or the
discrepancies? For example: holiday time, weather: heavy rain or sun, winter or
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summer, etc. This helps us identify annual and seasonal fluctuations, from which we
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will devise a plan. marketing right for future time.

Step 2: Choose a market approach

At first we will use experimental marketing methods including advertising, promotions

to measure product awareness, penetration, market share and total sales. Align the
strategy based on the information gathered to minimize the problem of introducing
the product on a wider scale.

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HI5004
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 We also incorporate a method of surveying customers by: phone or e-mail, Ask
about coffee drinking preferences, what to expect when going to a cafe ... and
subjective buying behavior. The customer is the person who knows best the needs
for a given product. You can collect information from them in many ways: phone or e-
mail, review order history statistics, market trends. Ask about buying plans and
subjective purchasing behavior. Use large survey samples to generalize results. Ask
about your ability to buy the product and add the results.

The customer who knows best the need for a given product. The downside of this
survey, however, is that they often inflate real demand. Although a person may be
interested in a product, actually buying it is another matter and is very costly and
financially time consuming. So we also have to consider these two factors.

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Next Step 3 we will forecast demand. We summarize the collected results, then

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analyze and discuss the project.

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After completing Step 3, we proceed to Step 4 to Monitor and adjust the forecast to
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keep the data up-to-date and constantly updated to avoid subjective judgments that
will cause mistakes to be made. Affect our ability to grow customers and financial
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ability.
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In short, forecasting demand helps us plan a clear development plan in the short,
medium and long term to bring our Coffee shop to market one. Effective way, stable
revenue and development with a low cost and no waste.
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Segmentation and targeting

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As a start-up in the coffee industry, we understand that to be successful in Australia,

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we should first meet the taste of our customers. We identify our segmentation by
dividing customers into 3 main age groups. Our target customers are those who
have a great taste of coffee and want to enjoy a whole cup of coffee without any
disruptions. For example, university students like to sit and work on assignment at an
open space in a coffee shop. Besides, we also focus on delivering outstanding coffee
to the customers whose age ranged from 25 to 39. They are workers, teachers,
whom don’t have too much time to stay but prefer a high-quality cup of take-away
coffee. Last but not least, we also target middle-aged customers who have an
exceptional taste of coffee. It is really hard to satisfy their standards, but we believe
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HI5004
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 with a good marketing research and product development, we can meet their
requirements in no time.

Positioning

For our targeted market, we try our best to create an atmosphere for customers to
enjoy coffee along with listening to music which is mostly attach to their emotion at
that time. In addition, a deep-learning machine will be there to help us approach our
customers and enhance our services. Recently, the cloud-based service
“Rekignition” - developed by Amazon has the ability to distinguish many different
facial expressions. Therefore, it is not too difficult to implement this application into
our business.

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HI5004
This study source – Marketing
was downloaded Managementfrom
by 100000792663997 – Group Assignment
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on 05-31-2021 05:03:32 GMT -05:00

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HI5004
This study source – Marketing
was downloaded Managementfrom
by 100000792663997 – Group Assignment
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on 05-31-2021 05:03:32 GMT -05:00

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