How can Renaissance coffee shop build upon their marketing mix in order to increase their sales? |
Contents |
Action plan: Preface: Acknowledgements: Problem identification: The current market share:
Activity | Date | Place |
Conduct an interview with the Cafe manager to gather primary data about the business | 15th August 2014 | Pioneer Mall, Renaissance coffee shop |
Visit the ministry of trade to gather secondary data about the industry | 20th August 2014 | Lesotho, Maseru, The ministry of trade and cooperatives |
Draft an outline of the project | 21st August 2014 | The library |
Write up the first draft of the project | 25th August 2014 | The library |
Submit the first draft | 2nd September 2014 | School |
Receive a critic on the first draft | 5th September | School |
Revise and improve the project | 6th September 2014 | Library |
Revisit the working premises of the cafA© for further data collection | 10th September 2014 | Pioneer Mall, Renaissance coffee shop |
Research Question: How can Renaissance coffee shop build upon their marketing mix in order to increase their sales? Hypothetical framework: Renaissance coffee shop is a modern day cafA© specializing in serving rich, nutritious and yet affordable meals, mostly focusing on sandwiches and hot beverages. The cafA© hosts a broad customer base, ranging from working middle class individuals to high profile personnel such as the king, His majesty king Letsie III. The coffee bar faces fierce competition from well established international conglomerates such as “WIMPY” and “SPUR”. These multinational corporations hold two great advantages over Renaissance coffee, firstly, they benefit greatly from their track record as they have been established for many years now. Secondly, they benefit from economies of scale of advertising, since there are hundreds of outlets throughout the world, the contribution of each is significantly low. I am on a mission to apply the knowledge I have acquired from my business and management studies course to draw up a proposal that will help Renaissance coffee build upon their marketing mix in order to increase their sales.
Renaissance coffee shop first opened its doors in November 2009. It was opened collectively with the Pioneer mall and has since been the under dogs, relative to its closest competitors. As part of my data collection I will mainly rely on primary data. This will include surveys ang questioners to the management, staff and the public at large. I prefer using primary data because I can get more accurate and reliable results. The surveys and questioners will be tailored to address the issue at hand of marketing. However I will also make use of secondary data such as the business accounts and records. I also intend to obtain further secondary data from the ministry of trade about this particular industry on a national level. This will help me realize just how much potential the business has to grow. In assessing the market share, sales, income statements from launch date and primary data were obtained and assessed. These reports show exactly the position of the business. Expansion is indispensable to a business’s success. A company will inevitably, at some stage seek to develop. This development may well be organic or peripheral, to attain higher sales and returns, improved economies of scale, and bigger market share. Organic growth is when a company increases its operations with in-house funds such as preserved profits or selling assets. Whilst peripheral growth is when expansion is funded with money obtained outside the company, this might be through a loan or selling a share of the company. Equipped with a rising economy, expansion is a widespread incident in Lesotho, in all industries. As such, this branch of the assignment draws up a marketing plan for the cafA© to be a cut above the rest
The marketing mix is a set of manageable, strategic marketing tools that a business make use of to create a preferred response from its target market. It involves everything that a business can do to manipulate demand for its products or services. It is also a tool to help marketing planning and execution. There for in other to later be able to make suitable suggestions to the business on how to alter their marketing mix, I had to establish their current market position in respect with their closest competitors. I conducted a survey within a population of hundreds of people who do their shopping at pioneer mall, taking only a sample of 50 people which are potential customers due to the lack of resources and time. My survey questions were as follow:
If they have been:
If they haven’t been there before:
My survey results: How often do you eat out in a month?
4 or more… | 3-4 times | 1-2 times | Only once |
10 | 25 | 10 | 5 |
What is your favorite restaurant in town?
Spur | Ocean basket | The Sun hotels | Renaissance | Other |
20 | 10 | 15 | 3 | 2 |
Have you been to Renaissance?
Yes | No |
23 | 27 |
What was your experience like? (Sample population is now 23)
Excellent | Good | Acceptable | Bad | Poor |
3 | 13 | 4 | 3 | 0 |
How likely are you to recommend it to someone else?
Very likely | Likely | Maybe | Not really | Never |
3 | 13 | 4 | 3 | 0 |
Do you have any suggestions for improvement?
With competition severe as never before, businesses discover the necessity to grow, either through the two possibilities I have pointed out, organic or external growth. This is to strive for being the market leader in the particular industry. Renaissance CafA© has not been left behind, the management decided to expand the businesses operations by opening a second outlet at the Maseru mall. As still part of my research, I also interviewed the 2 of the waiters/waitresses at the restaurant in other to help me later when giving an evaluation: My survey questions were structured as follows:
The results I obtained: Waiter 1:
Waiter 2:
Data analysis: In this research project, I will be using Marketing Mix, with the 4 Ps model as my data analysis tool. I chose the marketing mix because it is ideal and crucial for determining a product or services offer. I will also be applying the Ansoff matrix. The Ansoff matrix is a strategic planning tool that provides a framework to help business strategies for future growth. Marketing mix:
Ansoff Matrix: The Ansoff matrix crucial strategic planning tool that helps devise strategies for future growth, I will be using it in my research project to help me devise plans or suggestions on how the business can actually grow in the future. This tool consists of the following;
Based on the data I have collected through the surveys and research I conducted, I believe the business should apply market penetration and product development. The reason why market develop and diversification would not work is because market develop requires a lot of capital as the business is required to venture into new markets; this is followed by intense promotion of which the business cannot afford. While diversification is the most risky strategy because both product and market development are required. In this case of a restaurant, product development is significantly cheaper than in other industries, the chef should just be more experimental and the customers can be used as testers through special offers such as “chef’s special” References www.wikipedia.com www.managementhelp.org www.contentmarketinginstitute.com www.sba.gov
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How Can Renaissance Coffee Shop Build Upon Their Marketing Mix in Order to Increase Their Sales?. (2017, Jun 26).
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