Marketing Plan 1 Marketing Plan Kimberlyn Rice Marketing Management MKT 500 Dr. Maiosun Kawwaff 26 April 2016 Marketing Plan 2 Marketing Plan 1.1. Introduction Boroxy Sitting initiated its business in 2005 in Dubai, by the collaboration of two partners named Roman Reigns and Abu Musa Al-Rumi. They started their business by selling the equipment's related to the coffee. They imported the coffee beans from the main retailers of the world. In 2007, Tom Josef became its new partner and initiated new spirit in the company by introducing the money in the business. They deviated from their core business and started their first coffee outlet with the prime location of Jadef Metro of Dubai. They produced the best quality coffee and delivered the best services to their customers' in their taste. The company covers different beverages and coffee products in their product line. The company serves the ice and hot espresso beverages, brewed coffee, baked pastries, Tazo tea, Salads, and sandwiches. They are regularly expanding their business and also introducing the different beverages. The company believes the differentiation strategy and identification of their brand. Boroxy Sitting has created a huge number of loyal customers in the few years. The product diversification strategy provides its monopolistic competitive market. The logo, Trademark, and superior quality make their product differentiated from their customers. Boroxy Sitting is also expanding its business to the international markets and has about 50 stores in all over the world. It has hundreds of employees and a wide range of customers in all over the world. 2.1. PESTLE Analysis PESTLE is the most effective and strategic analytical tool. It is upgraded version of PEST analysis and is used to analyze the external issues (Kaplan & Norton, 2008). The global economic recession has affected the people demand and reduced the purchasing power of people. Marketing Plan But, the research shows that the consumption of coffee is not reduced while the customers are shifting towards low priced products. Thus, the firms have the abilities to influence the purchasing power of their customers by providing the cheaper products. The Boroxy Sitting's wide ranges of the products deliver coffee according to the economical range of the customers. 2.1.1. Political Factors The political factors cover the corruption, tax policies, tariff and trade control, political environment and legislation procedures. The raw material is the most important material for the companies and has also attained the attention of the politicians. While, it is necessary for the multinational companies to abide by the laws and trade policies of the host governments. The Boroxy Sitting also has to face the regional integration to expand their product business. 2.1.2. Economic Factors The developing countries' economies are now expanding, and the purchasing power of their individuals is now expanding. It is the opportunity for the Boroxy to expand its economic activities to the middle economies to raise its revenues. The high labor cost and the inflationary environment have increased the stress over the profitability of the company. 2.1.3. Socio-Cultural Effect The culture is an important fact that affects the business strategies. The coffee is becoming the first preference of the customers, and they are diverting towards this. The educational level and their values also induce individuals to prefer coffee for relaxation. 3 Marketing Plan 2.1.4. Technological Factors The Boroxy Sitting should take the advantage of the technological up-gradation. The Boroxy may introduce the apps to expand its customer's range. The company has introduced the Wi-Fi facility to the customers to induce them to move towards the Boroxy Sitting. The company may introduce the e-payment system to facilitate its customers (Ferguson, 2002). 2.1.5. Environmental factors The business practices of the Boroxy Sitting are concerned to the advocacy groups and activists. The ultimate consumers have shown their concerns also regarding the environmental problems. It is necessary to focus on the environmental effects and global warming issues for those countries that produce the coffee beans. 2.1.6. Legal Factors The Boroxy sitting has improved its performance by fulfilling the ingredients regulation. It is necessary to concerns that relate to the caffeine consumption and health regulations. The licensing, trade and customs regulations are also the important legal factors for the company. 3.0. Strategic Market Plan The Boroxy Sitting can enter the new market by introducing the new products to raise the revenues and increase the share of its market. It's bulky market share and competitive advantage allow the Broxy Sitting to introduce the fat-free frozen yogurt for the Youngers. The company may introduce the ice cream flavor and sophisticated foods to enhance its sale. The company has produced a wide range of loyal customers, and the further diversification will allow expanding its customer area. The company is targeting the primary and secondary market. 4 Marketing Plan 5 The primary target of the Boroxy Sitting is the individual of age 18-34, and their secondary target involves the individuals aging 34-54. The primary and secondary market involves the different age groups due to their different consumer choices and preferences. The age group of 18-34 is less interested in drinking coffee, but they visit coffee bars. The diversification may induce them to purchase the fat-free yogurt and ice cream. The individuals of this age group usually prefer the healthy and light food. 3.1. Marketing Mix Strategies The Boroxy Sitting has developed its taste and brand in the worldwide customers. The new products will add the benefit and competitive advantage of the product. 3.1.1. Product: The products of the Boroxy Sitting involve the drip and espresso drip coffee and several beverages that based on the cold and hot drinks. The company expands its product line to salads, pastries, cakes, and sandwiches. The products that are available are all branded. 3.1.2. Price: The Boroxy Sitting set its price according to the customers' response. The company believes in producing the good product at the reasonable price. The coffee is the main product and ranges to 2.5$ to 3.5$ and also offers different sizes of the cups. 3.1.3. Place: The Boroxy Sitting started its business from Dubai and now has expanded its business to the UK, USA and the most of the European Nations. The company should place its stores in the Asia, as it is also the huge market. 3.1.4. Promotion: The Boroxy Sitting issues its cards to the customers for promotion purposes. The company believes in promoting its product through the social and electronic media. Marketing Plan 6 3.2. Situation Analysis: It is necessary to understand the internal and external situation for the company to expand its product. The 5C's is the most influential source to analyze the situational analysis. The 5C's is the environmental scan that discusses the microenvironmental, internal and macro environmental situations (Steenburgh & Avery, 2010). 3.2.1. Company: The main product line of the Boroxy Sitting is the \"Coffee\" The company is recognized with its product diversification at the reasonable pricing strategy. The company has the goal to expand its product to the all over the world with good quality. 3.2.2. Collaborators: The Boroxy Sitting uses the C.A.F.E. practices for a sustainable supply of its coffee beans. The CAF provide the guidelines to purchase the quality oriented beans from the suppliers. The main suppliers of the company are Columbia, Vietnam, and Brazil. 3.2.3. Customers: The Company is focusing the wide range of its customers on making large sales. The company is diversifying its products to induce more customers to come towards the stores of the Boroxy Sitting. It reasonable price strategy induce more customers to enjoy the products of the Boroxy Sitting. 3.2.4. Climate: The political, environmental, regulatory, social, technological and cultural environment involves the climate factors. 3.2.5. Competitors: The local tea and coffee cafes, Dunkin Donuts, McDonald's are the main competitors of the company and are raising issues. Marketing Plan 7 4.1. The Boroxy Sittings' Goals: The goals of the company describe the life of the company. The companies usually have the short term and long term goals (Nonaka, 2008). The short term goal of the company is to open 100 new outlets at the end of 2018. The company does not open franchises. The long-term goal of the company is to open 1000 new stores within 2025. The main aim of the company is to be recognized as the brand. The company is valuing its customers to increase the market share. The company is adopting new products to raise its market share. 5.1. SWOT Analysis The SWOT Analysis provides the internal and external analysis to the company (Hill & Westbrook, 1997). The internal analysis of Boroxy Sitting provides the additional insights for its products and customers are willing to pay for it without increasing their cost. It shows that the customers are not focusing the price of the product but the quality and the brand image. 5.1.1. 5.1.2. 5.1.3. 5.1.4. Strength Prime location of the stores Strong relationship with the suppliers The sustainable and good brand image The company has its stores and not the franchise system Weaknesses Less product diversification Less focus on the internal matters Less intensify to adopt the new technology The profitability reduced due to competition Opportunities Product diversification The development of new products Franchise opportunity to expand the business Introduce such products that may introduce in the outlets easily Threat Economic crises threat Change of market trends 8 Marketing Plan Threat from the competitors Introduction of new caffeine-based products References Hill, T., & Westbrook, R. (1997). SWOT analysis: it's time for a product recall. Long range planning, 30(1), 46-52. Kaplan, R. S., & Norton, D. P. (2008). The execution premium. Barcelona: Deusto. Nonaka, I. (2008). The knowledge-creating company. Harvard Business Review Press. Marketing Plan 9 Steenburgh, T. J., & Avery, J. (2010). Marketing Analysis Toolkit: Situation Analysis. HBS Case, (510-079). Week 7 Discussion "Hit Your Mark With Matched Messaging" Watch the video below then respond to the questions that follow: Develop a brief IMC for the company or product you are working on in your assignments. First, tell us about your company or product. What is your unique selling proposition? How do you distinguish your product or company from your competitors? Now, think about how to communicate this information using the AIDA principle. Describe your ad and promotion. How would you vary your ad for different media platforms? How would you vary the schedule to air it for maximum coverage with minimal expense? Video Segment Reference: Tribus. (2013, May 6). What is integrated marketing? [Video file]. Retrieved from https://youtu.be/k6WF0O1Mnvk