Marketing Strategy of Health Cafe

Introduction

Marketing refers to the study and management of exchange relationships. Marketing is normally used to keep, create and help in customer satisfaction. During the marketing process, the services and goods tend to move from concept to the customer (Armstrong, Kotler, Harker and Brennan, 2015). This report the various marketing strategies that the management should consider while starting up of the new cafe to ensure that they achieve their set goals and objectives. Through the marketing process, the public will be made aware of the existence of the cafe.

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Marketing Rationale

For the cafe management to be successful in achieving their set goals and objectives. The management of the cafe will have to ensure that they match the services and products they offer with the existing market needs. The rationale for employing different marketing strategies is to help the management of the cafe to be in a better position of understanding the existing market needs and how they can completely satisfy them ( Harrison and Reilly, 2011). Implementing of effective strategies will help in the realization of the desired profit margins and as well as increase the sales volume of the cafe.

Marketing Concepts

There are five main marketing concepts under which the management of the cafe can design and carry out their marketing strategies which are the product concept, production concept, marketing concept, concept of selling and societal marketing concept (Dibb, Simkin, Pride and Ferrell, 2005).

In the production concept the management should understand that the consumers will be more willing to eat and drink from the cafe if their foods and drinks are highly affordable and as well as available. The management should always ensure that they do not run out of food and drinks to ensure that even at night the customer can get what he/she wants without failure.

In the product concept, the public and the consumers tend to prefer the goods and services which are of high quality, show innovative features and performance. The management should ensure that the drinks and food offered at the cafe are healthy and will not affect the consumer. To enhance the quality of the products that the cafe will be offering the management should ensure that they maintain the hygiene of the restaurant on a 24hr basis and this will also help in attracting the customers whether during the day or at night. The management should be innovative especially in the manner in which they present their services.

Under the marketing concept, the cafe management should be able to identify the wants and needs of their target market and also deliver more customer satisfaction as compared to their competitors. They should ensure that they value their customers. The implementation of this concept tends to be customer oriented.

About the selling concept, the consumers are not in a position of buying enough of the products offered by the firm unless it is operating on a large scale basis of promotion as well as selling. Implementation of the selling concept helps the management to focus on their sales. The management should be careful while implementing the selling concept while marketing their cafe.

The Difference between Mass Marketing, Niche Marketing and Market Segmentation

The management of the cafe should consider the appropriate type of marketing that will be more effective. The mass marketing usually focuses more on the use of offline platforms and mediums while on the other hand, the niche marketing concentrates more on the use of the web (Buhalis, 2000).

The mass marketing is a form of marketing that mainly concentrates on the use of mass media and mass distribution. Large organizations mainly use this type of strategy, and therefore it is not suitable to be implemented in the marketing of the cafe.

The niche type of marketing mainly concentrates on the smaller market segments. The market group that is targeted by the niche form of marketing are those which their needs, wants and preferences are easy to identify. The niche marketing is suitable to market the cafe since it targets the people of a particular location as it does not have several outlets. This type of marketing will also help the management to work within the marketing budget.

Market segmentation refers to the manner in which the management of an organization classifies their customers. There are four main types of market segmentation which are demographic, psychographic, geographic and behavioral segmentation.

Importance of Branding and USP of products and Services

The cafe should have a Unique Selling Proposition. A unique selling proposition helps a customer to determine if the services being offered at the cafe are better than for your competitors as well as if the prices are fair. Branding is important as it helps an organization's products to be differentiated from those of other organizations.

Marketing Mix

Applying of the marketing mix in the management of the cafe will help solidify the marketing strategy that has been set up and as well as give the management a strong and effective marketing section for their business plan. Incorporating of the 4P's of the marketing mix will assist the management to be able to strengthen their competition against competitors as well as internal analysis. The 7P's of marketing mix include product, price, place, promotion, positioning, packaging, and people (Huang and Sarigollu, 2014).

The management of the cafe should highly consider their products. They should pay attention for example regarding how they want their menu to look like. During the marketing strategy, the management of the cafe should have detailed information about the food and drinks that will be offering which is supposed to be included in the Services and Products section of their business plan.

The management of the cafe should be able to consider how much it will cost to set up the cafe and the price of their food and drinks to avoid overcharging. The prices set should be able to cover all the costs incurred though not all of the products that will be sold at the cafe should be considered as being a primary profit Centre. The management should choose a pricing combination method which favors them as well as the customers. Some of the pricing methods that can be implemented in the running of the cafe include cost-plus pricing, value pricing, and competitive pricing. The prices set at the cafe should be able to match the expectations and demands of the customers. They should also consider the pricing of the other cafes in that particular location. The management should not set too high or low prices for their foods and drinks since some consumers have the perception that low pricing means the goods and services being offered are also of low quality.

The management of the cafe should strategize on how they intend to promote the cafe and make the public aware that it exists. They should implement different types of advertising such as using different social media sites to create awareness about the cafe, what they offer, their location and their operation time. Use of social media in promotion plays a significant role as it helps in creating awareness about the existence of a given brand.

The management should ensure that the cafe is strategically positioned. The cafe should be in a position whereby people can easily locate it whether at night or during the day. Considering that the cafe is supposed to operate at night as well, the management should ensure that there is enough security. Other things that the management should consider when deciding the place that the cafe should be set up include foot traffic, parking, and the main streets.

Designing and Conducting of the Market Research

The market research will be conducted by evaluating how big the market is where the cafe is supposed to be set up, whether is a market for the services the cafe intends to offer, who the potential customers will be, who the competitors of the cafe are and the best marketing ways that will be appealing to the customers.

Planning and Carrying the Marketing Campaign

To ensure that the marketing campaign is successful the management will be required to ensure that marketing campaign fits into the marketing plan, determine the manner in which the success will be measured, set out the marketing campaign budget, set out the marketing campaign objective and parameters, create an action plan and choose the marketing strategies that will be used to communicate with the customers.

SWOT Analysis

Carrying out of the SWOT analysis is important to help the management of the cafe not to go wrong while performing the economic analysis considering the cafe aims to generate income, expand the business to several locations and grow the business. The SWOT analysis helps in determining the strengths, weakness, opportunity, and threats to the business (Helms and Nixon, 2010).

The following is the summary of the SWOT analysis that was conducted. One of the strengths is that the cafe will not be limited to only the location where it will be set up but also having an excellent customer service will help achieve the success of the cafe. The weakness that was associated with setting up of the cafe was that the cafe will be starting on a small scale and might not be in a position of meeting the high demand that may be realized after the marketing as there will only be one outlet. The opportunity of setting up the cafe is that not many cafes operate on a 24 hours system and most of them tend to close at night and hence all is required to have a good customer service to ensure that the customer will be willing to come back to the cafe. After the analysis, the potential threat of running the cafe is that the authority might not allow the cafe to be operated in that particular area at night due to security issues.

PESTLE Analysis

The PESTLE analysis is a concept a marketing principle that is used by organizations and companies to keep track of the environment that they are operating in or which they want to launch a new product, service or project. The mnemonic PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental factors (Dwyer and Tanner, 2002).

Technological factors refer to the factors that involve technological innovation which may affect the manner in which the company or organization is being operated negatively or positively. Technology can help the cafe to have a competitive edge. For example, the management of the cafe should ensure that they utilize various technological techniques to display their food labels, their packaging style as well as their mode of food production.

The economic factors assist in determining the performance of an economy that has a direct effect on a company or an organization which results in long-term effects. The management should consider the interest rates, inflation rates, economic growth patterns and the foreign exchanges rates of the country before they start up the cafe.

When starting the cafe, the management should consider the political factors of that particular region or country where the cafe is supposed to be set up. Some of the political factors that the management should consider include the tax policies of starting up a fast food restaurant, trade tariffs, and the fiscal policy.

The social factors help the management to evaluate the social environment regarding the target market. Social factors in a given market environment help the management to evaluate various demographics, population analytics and the cultural trends in that particular region.. For example, they can install Wi-Fi in the cafe since with the current generation most people are addicted to the internet, and hence it will be convenient to them to eat at the restaurant as...