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CASE STUDY

Moka has been open in Ahuriri for a while now and has expanded to include full caf operations with more seating for customers and food service.

Sam is aware that to optimise the cafs operations Moka needs to increase the number of customers and build customer loyalty.

Sam understands that marketing is about satisfying customers profitably, but is unsure what activities would be best for the new caf so he has asked you for assistance.

As a new business Sam is very aware that it is crucial to make smart marketing decisions for Moka. The business cant afford to waste resources and effort on marketing that doesnt work. Sam knows that the marketing needs to be efficient and effective to attract new customers and keeping them coming back.

Starting to read about marketing Sam realises that there is so much more to marketing than just putting an advertisement in the local newspaper or offering discounts! Consumers have a lot of choice when it comes to coffee and there is strong competition, especially in Ahuriri. Sams aim is to find, win and maintain customers by delivering greater value than the competitors.

1.1 Understanding the marketing environment

To be able to make good marketing decisions you firstly need to understand Mokas current marketing environment. A SWOT analysis is a useful tool to help you identify and analyse the internal (the environment within the company) and external environmental factors that are most relevant to Moka.

Analyse Mokas current marketing environment and complete a SWOT analysis. You can make assumptions based on your research into factors that would be relevant to Moka. Use the template on page 4 to present your SWOT analysis.

1. 1.2 Choosing the target market

As Moka has limited resources you recommend that the caf focus on one specific market segment to start with. Your aim is to develop a point of difference for this one market segment to establish Moka as the preferred caf for that target market. You have visited many different cafs and have noticed that different places seem to have different groups of customers. For example the hip caf in central Napier seemed to have mainly business people having meetings or grabbing a quick coffee while on the cafs free wifi with their phones.

You wonder which target market Moka should best select, as you want to identify the group of customers that offer the best opportunity for Moka. Describe the target market you recommend Moka focus its marketing efforts on. Briefly explain why you recommend this particular target market.

1. 1.3 Developing the marketing mix activities

Once Moka has defined a clear target market it is time to develop appropriate marketing mix activities tailored specifically to appeal to the chosen target customers. The marketing mix will create and deliver value to target customers; establish Mokas position by influencing how consumers think about Moka compared to other coffee providers and build profitable customer relationships.

Use the template provided on pages 5 & 6 to present your recommended marketing mix activities for Moka. Develop specific marketing activities that will create value for Mokas target market.

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