Free Essay: Marvin and Smith's Coffee Shop Expansion to Germany

Published: 2022-05-10
Free Essay: Marvin and Smith's Coffee Shop Expansion to Germany
Type of paper:  Essay
Categories: International business Marketing plan
Pages: 7
Wordcount: 1892 words
16 min read

Introduction and the country to expand the Marvin and Smith's coffee shop

Businesses established grow and expand at different rates depending on the extent of attractiveness evoked on the side of potential and present customers. In this case, the businesses, especially the ones in the food industry, ought to thoroughly research and gather adequate and real-time information regarding its potential business environment. Such information relates such factors as the kind of food mostly loved and considered attractive to customers, the sources of capital, the cultures and preferences of the target market, reliant source of the supplies used in business, the kind of and state of competitors, the accessibility of the business premises and the availability of a vastly dependable customer base. It is the information that is also suitable for a business seeking expansion in a new location. In this regard, the London based Marvin and Smith's coffee shop, in the food industry, seeking to expand its operations to the city of Berlin, Germany, should reliably gather and have such information before venturing and advancing in its moves. It is done so for the benefit of ensuring that it offers the products rightfully needed in the market, providing a competitive advantage amidst a throat cutting competition in the industry and subsequently yielding a substantial amount of profits. It is seeking to expand abroad because it has gained interest and attracted a considerably large chunk of foreign consumers, from countries such as Switzerland and France. In this context, a nation chosen within the European Union is Germany and specifically the city of Berlin due to some reasons favorable to the business nature of Marvin and Smith's coffee shop.

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First, Germany is a country with a vast collection, expanse, and extent of cultures whose interests are easily satiated by offering foreign stuff. It is a tendency favorable to the Marvin and Smiths business operations since it deals in the food of international blend and taste. More particularly, the focus is made by the business in of situating in the city of Berlin because of the availability of a vast population, estimated to be in the region of 3,562,166 people, with an approximate of 15% composed of foreigners from other 180 countries of the world. It is thus a cocktail of cultures with inclinations of foreign tastes, which in this case is the coffee and snacks imported from Uganda, an East African country. In this regard, the business will pick up quickly and propel towards profitability. It will have overcome a challenge of slowly gaining adaptability in a foreign country since its products are already more absorbable in the market. Moreover, the economy of the city is more of in the service sector due to the touristic nature of Germans and the Berliners. The people in Berlin are also more inclined to friendliness and open-mindedness, widely welcoming foreigners. The Marvin and Smith coffee business will hence obtain acceptability and a seamless blend with the German environment.

Furthermore, Germans value more ethical dispositions. The Marvin and Smith coffee business affirmatively correspond this approach in that t instills a spirit of the need to be very moral to its customers in the premises. It is a value incorporated from the onset of employee inception in the business, during recruitment and regularly in human resource management meetings reminding them of the required mode of behavior. Its workforce is dedicated to full responsibility and attendance to the call of duty where the customer service is prioritized. Furthermore, the business emphasizes on fair trade and equality, and it is in regular instances where it urges its staff to display them at the workplace.

The business also augurs well with the logistical considerations that come into play as it expands to Germany. It this case, of central focus is the expenses compared to the incomes generated from its business practice. In Germany, coal is mined in Ruhr region and is used in the production of electricity, making it locally available. It is thus convenient for Marvin and Smith coffee business since the electricity costs are considerably lower, reducing the overhead costs of electricity and enhancing more savings hence raising the net returns of the business. Also, the costs of snacks such as the coffee sold to the locals and the tourists are considerably high, increasing the income levels of the business given the lower prices expended in purchasing the supplies. It is also evident like German climate where during winter, the Germans prefer taking tours in different areas of their interest within the country. It is thus a period thus spells a boom in the business of selling East African coffee and snacks. Overall, such well calculated and favorable logistical consideration enables the situation of the business in Germany, Berlin, due to impending forecasted profitability and success of the business (KUMAR, D. 2016. P74).

Germany also offers a favorable trading environment given its cool political climate. As the Marvin and Smith's coffee expands into its territory, it will be able to overcome a challenge of foreign investment given a lot of other favorable factors. They include the availability of vast road network coverage in the city of Germany. It will facilitate efficient ferrying of its supplies, saving time used for doing other activities like attending to the customers and welfare programs. Also, rivers Rhine and Rhone provide proficient water transport of the business supplies. Adaptability in Germany is also readily convenient making the business get ground and flourish easily.

Marketing mix

As the Marvin and Smith's coffee shop expands abroad, there is need to plan for the excellent performance of the business strategically. In this regard, the focus is made on potential customers, the product, physical business environment, the price of the products and services, the current dictates of the laws and regulations governing businesses and the performance and mode of operation of competitors. All such information is factored in the business plan of Marvin and Smith's expansion to Germany. It is done to make the business be on the safe side in so far as competition, performance, progress, adaptability, and profitability are concerned (LUKACH, S. E. 2017. P21). The components that, individually, are to be addressed in marketing Marvin and Smith's coffee business in Germany are the product, price, place, promotion, process, physical environment, and people, detailed in the subsequent paragraphs.

First, the product is to be focused on in marketing the activities of Marvin and Smith when the process of expansion to Germany is being implemented. In this regard, the coffee offered and other snacks have to have their details comprehensively expounded in such a way that the current and potential customers being reached to will have their interest and attention captured, making them make a try of patronizing the premises of the business. In this process, they will start patronizing and once tasted the coffee with East African taste, will promote the business, which in the process will be n kit ways of realizing its objectives of profitability, prosperity, and in an excellent position to compete with other firms in the same line.

The advert should explain the source of the coffee berries used in making the drink in the shops. The fact that it is imported from Uganda will impress the Germans whose natural tendency of tourism is insatiable. In this case, the other competing firms whose coffee drinks have born monotony tendencies in the parts of consumers will receive blows given the mass preference ad migration of the consumers to the use of Marvin and Smith's coffee drinks. The respective quantities in which the coffee is offered to the customers should also be clearly stipulated during the marketing of the business product in Germany. It will enable the customers of diverse income and abilities ranging from the lowest to the highest in rank to feel considered and carry on the patronage. The other snacks imported from Uganda, which are sold alongside coffee, should be clearly highlighted in the marketing documents used in the adverts in Germany. Moreover, other crucial details on the products should be explicitly included in marketing, enhancing their understandability. They include the color of coffee being sold, its taste which for this case should be tailored to be appealing, the kind of smell; how soothing it is; it gives out when freshly served and the kinds of feelings always evoked when drunk. The Germans will be able to get full grasp of the information regarding the products offered by the business, hence knowing their existence before commencing their patronage

Additionally, pricing factor; a component of marketing mix; should be greatly considered in the designation of an advert of the business as it enters Germany. Owing to its sensitivity in the business and customer reactions, it should first be thoroughly examined in relation to the type and nature of products and services, level of satisfaction composing the returns a customer obtains from paying for it, the way in which the competitors price their own products in the same line, the prices of the closest substitutes of the product, the existing economic conditions and financial capabilities of the intended market, the costs of the inputs utilized as well as the level of the expected profitability of realizing the business' goals and objectives. In this case, the prices offered for the products; coffee and snacks; should have been arrived at after a well balanced scrutiny, consideration and rational mix of these factors. Also, the prices of the respective quantities of the products offered should be settled at and made known t the customers in an approach seeming satisfying to them (Suzuki, Shinya, and Hiroyuki Okamuro.2016 P34)

Also, the prices set should be balanced with the ones offered by the competitors and the ones provided for the closest substitutes such as tea and cocoa drinks. In this way, competitiveness will be obtained. The customers will be adequately informed of the prices which are in balance with those of the competitors against the good quality of the products offered. Besides, the customers should be informed of other benefits accruing to them once they patronize the premises and pay the stipulated amounts. In this case, the business offers some practical services required by the customers such as access to the free charging of their phones and the evening chats with Nana for advice. The customers will then see the value for their money and compare. The business will also get a comparative advantage over its competitors with no additional services.

Also, promotion and place components should be factored in for the marketing mix of Marvin and Smith's coffee as it seeks expansion to a different situation in Germany. In this case, the products offered should be advertised on various platforms deemed more convenient in reaching the target audience in Germany. They include the use of radios, televisions, newspapers, magazines, and pamphlets. They carry with them a well-framed message on the products and services of the business and inviting the members of the public to patronize its premises and make a step of purchasing the products specified therein. Also, the place where the business is located should be well exposed and known to the public, alongside excellent ease of accessibility. It is, therefore, a recommendation that the business Marvin and Smith's coffee be located in convenient places reachable by a good number of means of transport (GIOELI, A. 2014. P54)

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