BUSINESS ASSIGNMENT Essay Example | Topics and Well Written Essays - 1250 words

BUSINESS ASSIGNMENT - Essay Example The segmentation has been done by using demographics and behavioural strategies. The target market has been chosen after identifying the size and profitability of the segments. After developing the positioning strategy, the marketing mix has been created for the target market. Finally, an overview of the financial plan of Manga Cafe has been discussed. IDENTIFIED PROBLEM The business plan of launching Manga Cafe in London appears to be a unique idea as there is currently not such cafe in London however, because of the aggressive competition among the international brands in the UK Cafe industry; Manga Cafe needs a very well-organised and efficient marketing plan. INDUSTRY COMPETITION Various coffee brands are operating in London; however, the three largest market leaders include Starbucks, Costa Coffee and Nero. The following positioning map shows the positioning of major cafe providers in London based on their quality of services and prices. Starbucks being the market leader is offe ring average quality but at very high prices, therefore, shares of Starbucks are declining not only in UK but in most of its major markets (Bishopric, 2011). Costa is expanding throughout UK because of its reasonable prices and better quality and in 2010/2011, company aims to open 130 more outlets in the UK (Bakeryinfo, 2010). Nero is considered as a cheap brand which offers value through high quality products and services. Positioning Map THE PRODUCT/SERVICE DESCRIPTION Manga Cafes are very popular among the Japanese communities. The increasing number of Japanese residents in the UK builds a strong demand for Manga Cafes in the UK, European and foreign markets. Since there is no Manga Cafe in London yet, therefore, launch of Manga Cafe in London appears to be a feasible business option. This cafe will fulfil the increasing demand of Japanese comics in Europe. The cafe will offer a platform to the people where they can come and enjoy reading Japanese comics. Moreover, additional ser vices will also be offered to entertain the visitors such as Japanese food, internet facility, games and DVDs. The visitors will be charged based on their duration of stay in the cafe. MARKETING PLAN Market Segmentation To segment the market, demographics and behavioral segmentation strategies have been used. In demographics segmentation, the consumers have been segmented based on their age, profession and nationality. Age: The age group structure of London in 2001 is given below (Office for National Statistics, 2002). Age Structure of People in London Source: Office for National Statistics Profession: The second demographic variable is profession and in London people belonging to different professions such as education, workers, professionals, unemployed reside. Nationality: The third demographic variable is nationality and since Manga Cafe is a Japanese cafe therefore, only Japanese nationals will be directly targeted. However, the total population of London in 2009 was 7,686,000 and it includes around people with 34 different nationalities (London.gov.uk, 2010). Table: London Population by Nationality Source: London.gov.uk In behavioral segmentation, the consumers who will be having knowledge, interest and positive attitude towards Japanese culture will be