Caffe Nero - 5 year Marketing Plan Coursework Example | Topics and Well Written Essays - 2250 words

Caffe Nero - 5 year Marketing Plan - Coursework Example Today, millions of people across the globe enjoy a wide range of coffee products offered by Caffe Nero. The core value is to offer the customers with highest quality services and products to keep them staying again and again. Caffe Nero promoted a culture of progression and innovation and has generated around ?165.6 million GBP in 2011 (Caffe Nero website: Performance page). The company intends to grow its operations by setting up new outlets throughout the United Kingdom during next five years. Our vision is to entice locals from around the areas to come and try all the unique and delicious coffee and related food our shops have to offer. We want the atmosphere to be a family friendly environment in our coffee shops where people feel comfortable, hanging out, and having a good time, while having an up-class feel with different coffees and food available for customers to enjoy. This marketing plan has been prepared after analyzing various issues regarding the coffee industry in Unite d Kingdom. The main objective of this marketing plan is to highlight the critical issues for successful launching of new outlets of Caffe Nero in UK during next five years and to attain a competitive edge against well-established rivalries in the market. We believe that by getting crucial financial support through the sale within first two years, Caffe Nero will be able to capture 17-23% of the coffee shop industry in UK. The project has estimated that it will enjoy a 25 to 30% market share by the end of 2017. Market Analysis United Kingdom is going to be a new growing country of coffee drinkers as its coffee industry is one of the most competitive coffee industries in the world. The industry had done a business of around ?5.8 billion in the market which was an increment of 7.5% to the preceding year. The role of UK coffee industry is quite substantial in the overall economic growth of United Kingdom as the coffee chains support the strength of shopping malls as well as attract the customers towards other surrounding businesses. The UK coffee market consists of independent coffee outlets, branded chains, and non-specialized operators, making a combined total of about 15,723 coffee outlets in UK (companiesandmarkets.com). The competition is quite severe between different competitors especially Costa Coffee, Starbucks, and Caffe Nero are the three leading chains in the industry. Costa Coffee is leading the industry having a market share of 40.4% while Starbucks stands two with a share of 30.7%. Caffe Nero has a market share of 14% and is facing great competition from the other two rivals. Costa Coffee, Starbucks, and Caffe Nero have 1552, 757, and 530 outlets respectively and thus have more than 80% combined share of coffee market (Peach Report, July 2012). The competition is getting stronger day by day because the products are of similar nature; therefore, customers have numbers of choices to switch over from one brand or taste to the other. It is estimated tha t UK coffee market will exceed 20,000 outlets mark by the end of