Marketing strategy for Mochalicious coffee shop in Melbourne

Marketing

Product Description

There are two ways to look at the product for Mochalicious. The first is the product, which is coffee-based beverages and snacks; the second is the service. Melbourne has a very strong coffee culture, so the coffee needs to be brewed to a very high standard in order to meet the needs of the local market. There are a number of different elements to quality coffee -- good beans, good machines and well-trained staff. The beans will come from a local roaster to ensure maximum freshness. The machines will not be the highest-end machines because we are emphasizing flavoured drinks, but we still need to be able to make a serviceable flat white. The staff will receive extensive training both in pulling espresso but also in making the flavoured drinks as well.

The flavoured drinks will include the signature mocha, and perhaps different variations on the mocha theme. There will be cappuccinos, Irish coffees, iced coffees, frozen coffee drinks, Italian flavours, classic Australian drinks like the piccolo, long black and flat white, and more. The strong Australian coffee culture can be fussy, so it is important that we carry the basic drinks that everybody expects (Rose, 2010). There will also be offerings in pastries and snacks, as well. These will range from gourmet pies to sweets, cookies and things like that. These are to cure hunger in our customers and to give them a tasty treat to complement their coffee. In addition, food adds revenue without adding much to the fixed costs, since the food can be purchased from a third-party vendor.

The service element of Mochalicious is that the shop needs to be a comfortable place in which people can sit and relax. It will not be a pretentious hipster type of coffee shop, but one more relaxed for a mixed clientele, including Asians, students, moms and older people, too. The service has to be excellent, delivering great coffee-based beverages on time to every customer, with a smile, and make everybody feel welcome so that they want to come back.

The service component adds a lot to the product. The coffee experience is an integral part of Australian culture, and it has become this way because of the entire experience, not just the high quality of coffee. Australians are prolific consumers of coffee because they love everything about it. They love the drink, yes of course, but the experience of the local coffee shop is very important and there are cafes to suit every taste in atmosphere (Wheeler, 2010). Thus, the vibe of the shop is also important, and because Australia is a multicultural society in the big cities the shops need to cater to a wide range of clientele in order to draw in sufficient crowds.

Changes in the Business Environment

There are a number of changes to the business environment that can cause problems for an established business. A good example of this would be if the demographics of the neighbourhood change. Now, we know that the coffee shop business is based on building a regular clientele and this is done by having an in-store atmosphere that fits with the character of the neighbourhood. So when the neighbourhood changes, the shop either needs to change with the neighbourhood or it needs to make a change in location, to a place more suited to the shop's style. This is a decision that would need to be made on the basis of what types of changes were being made and whether the new demographics are well-suited to the shop's offering.

Another sort of change in the business environment would be an increase in the rent or other cost factors. The results of this would be declining profits. It is important that the coffee shop essentially build into its plans the ability to withstand financial shocks. There should also be an exit plan, especially if we get within a few months of a lease renewal. There are a lot of businesses forced to go out of business because of cost increases like higher rents.

There are not expected to be any changes to things like the love of coffee. This is ingrained in Australian culture, so much that even newcomers to Australia make a point to learn about the culture. Thus, such a change is not expected. It would be devastating to the business if it happened, but it won't. Demand is expected to remain strong. This is the same with other changes in the external environment as well, like in the political environment. It is not expected that there will be any changes.

Overall, Mochalicious expects to be well-positioned to adapt to changes in the market, because the company will have lots of money and a great brand, which are two things needed to weather any storm.

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