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Anayse the marketing plan for Atlas Coffeehouse café that is situated in Singapore.

Overview of Atlas Coffeehouse

The report helps in analysing the marketing plan for Atlas Coffeehouse café in Singapore to ensure the success. The aim of the respective company is to launch a new brand of full cream milk in Singapore. With the implementation of different marketing strategies along with internal and external environment analysis, this will help the company in gaining profitability, sustainability and growth.

The main aim and purpose of the report is to understand the different kind of marketing tactics that can be applied by Atlas Coffeehouse café as to gain competitive advantage in the market. The mission of the café can be achieved by the café by establishing and offering world class offerings in an effective manner. Furthermore, the external and internal environment analysis can help in understanding the threats and the competition.

TLC Café is one of the full-service café that is located in Singapore and the café features full menu of different moderately priced food items that are influenced by French and African cooking traditions (Atlascoffeehouse.com.sg, 2018). The main aim of the restaurant is to introduce full cream milk in their café that can help them in gaining competitive advantage. The café specialises in providing different kind of hot and cold coffees along with providing the customers with different services at an affordable rate.

The products and services of Atlas Coffeehouse café includes the first-class delivery of the hot along with cold beverages inclusive of flavour syrups and fruit smoothies. Atlas Coffeehouse café includes the selling of consistent quality foods and services and this will help them in gaining competitive advantage (Adams, Gabler and Landers 2017). The other kind of services that are included in Atlas Coffeehouse café is to generate ideas as to help the customers and increase the sales through the development of the menu with creative promotions.

The mission of the Atlas Coffeehouse café is to offer the customers a classic experience at an affordable rate. The mission of the café is to generate huge profitability in the market with providing quality services at an affordable rate. Furthermore, the café wants to introduce the full cream milk item in their menu and gain competitive advantage in the market. The respective mission of the company has helped the company in going a long way in their operations. The café has tried to increase their sales by improving their different operations effectively.

The vision of the Atlas Coffeehouse café is to bring the individuals together and enjoy the different variety of coffee shakes of their café. The company believes that they can weave fabric of positive relationships between the different customers and experiences that supports and promotes the common humanity programme. The café can achieve the entire vision of their company by understanding the moves of the different competitors in the market and try to apply different techniques to improve the marketing strategies as well.

Products and Services of Atlas Coffeehouse café

Atlas Coffeehouse café has to develop both short and long-term goals as this will help them in establishing the brand that are defined to attain the effectiveness of these goals. With the help of collaboration and planning the financials, this can assist Atlas Coffeehouse café in expanding the business in the future.

The short-term goals and objectives of the company are as follows:

  • To listen to the customers and understanding their preferences appropriately
  • To build and nurture the customer relationships effectively
  • To attract and retain the talented employees in Atlas Coffeehouse café as this can assist them in gaining competitive advantage in the market

There are different long-term goals of the Atlas Coffeehouse café that includes:

  • Profit- the personal income in the excess of more than $50000 per year within the next five years
  • Employees- Proper hiring of competent employees who are loyal and committed towards the task performed by them
  • Clientele- create a clientele of individuals who work and live that specific area

From the analysis of goals and objectives, it can be analysed that both short and long-term goals are essential in nature in the organization as this helps in meeting the customer expectations and be more competitive in nature as well.

Atlas Coffeehouse café has to create value for the different customers by analysing the different tastes and preferences of the customers. The menu has to be changed by Atlas Coffeehouse café as this will provide them understanding their value proposition.

The idea of the café to introduce the full cream milk as the main target customers are between the age group of 15-30. Furthermore, they need to create win-win price and this was a big issue for the competitors as this kind of introduction of the item in Atlas Coffeehouse café can be a huge competition for them.

Lastly, Atlas Coffeehouse café has to analyse the desire of the customers in the competitive market as this can deliver the different products and services to the target customers. The segmentation, targeting and positioning is required to be conducted by them in order to compete with the other coffee shops.

The success of Atlas Coffeehouse café is based on the entire effectiveness in addressing the different negative impacts of the five forces in the industry environment. Atlas Coffeehouse café has respond to the five forces to maintain the position in the market. Atlas Coffeehouse café helps in indicating that the company has tried to address the different issues in industry environment.

Threats of the new entrants is moderate in nature and the barriers are high, however it can be seen that the initial investment for starting a coffee brand is not high. The saturation level in the respective industry is moderately high and the new entrants can compete with them at local level. The different external factors that contributes to moderate force of threat of new entrants are as follows:

  • The cost of doing business is moderate in nature
  • The cost of brand development is high in nature (McDONALD 2016)
  • The cost of the supply chain is moderate in nature

The threat of different new entrants shows that the new entrants can have significant impact, however it will not create huge impact on Atlas Coffeehouse café. The new competitors can be a huge competitor of Atlas Coffeehouse café and they can compete in a moderate level as well.

Mission and Vision of Atlas Coffeehouse café

Threat of substitutions is the second factor wherein Atlas Coffeehouse café can face huge competition from the different competitors in the market. This force pertains to the entire impact of the different substitute goods or services on Atlas Coffeehouse café. In case of Atlas Coffeehouse café, these are the different external factors that includes the following:

  • The availability of the different substitutes has created a strong force
  • The switching costs is low that has a strong force
  • The low cost of the different substitutes has a strong force

This component of the threat of substitutes helps in indicating that the different substitutes have strong kind of potentiality can negatively impact the business of Atlas Coffeehouse café (Hsu 2016). The customers of Atlas Coffeehouse café can easily shift towards their substitutes as there are different other options which can be a loss for the company. Furthermore, the coffee café has to consider the threat from the substitutes as the top most concern and reduce such with implementation of different technological advancements (Armstrong et al. 2014).

Bargaining power of suppliers is one of the factors wherein it has been noticed that the Atlas Coffeehouse café faces the bargaining power of the different suppliers in the market (Sheth and Sisodia 2015). The following external factors can contribute towards the weak force or bargaining power of the different suppliers that includes:

  • High suppliers’ variety creates weak force
  • Overall supply has weak force
  • There is moderate force on moderate size of the individual suppliers

This model shows that the suppliers will not have much impact on the Atlas Coffeehouse café as the overall supply lessens the entire impact of the single supplier on the organization. This kind of policy reduces the entire influence of suppliers on business has moderate size compared to supply chain of Atlas Coffeehouse café (Strauss and Frost 2016).


Bargaining power of customers
 is the other factor in which it has been noticed that bargaining power of the customers. In this model, the respective force is based on effect of the individual and grouped customers have on the business of Atlas Coffeehouse café. The different external factors contribute towards the strong bargaining power of the customers that includes the following:

  • The low switching costs has strong force
  • The availability of the substitutes has strong force
  • Small size of the individual buyers has weak force

In this particular component of Porter’s Five Forces analysis, Atlas Coffeehouse café has to implement different strategies that can help the company in attracting the customers and be more competitive in comparison to the other competitors in the market. The customer’s focus can shift from Atlas Coffeehouse café to other cafes in the market as there are different kind of options available to them (Armstrong et al. 2014).

Competitive Rivalry is the last factor wherein it has been noticed that Atlas Coffeehouse café can face strong rivalry from the other competitors in the market (Moutinho and Vargas-Sanchez 2018). The following external factors contribute towards the strong force of competition that includes the following:

  • There are large number of firms that have strong force
  • Variety of the firms has moderate force
  • The low switching costs has strong force

Objectives and Strategies of Atlas Coffeehouse café

This element is one of the main factors of the porter’s five forces model wherein it can be analysed that the respective company can face different kind of competition from the other coffee café outlets. This competitive rivalry has to be taken by the company in an effective manner as this can be a big threat for the Atlas Coffeehouse café.

The key players or the competitors of Atlas Coffeehouse café in the market are as follows:

Starbucks is one of the competitors of Atlas Coffeehouse café. Starbucks is performing excellent in satisfying the different demands of the customers. The market share of the respective café in the US coffee chain industry is 39.8% and the revenue of the company worldwide is 22.39bn USD (Pride and Ferrell 2016). The marketing objectives and strategies of Starbucks include:

  • Excellent customer service
  • Quality based differentiation
  • High focus has been always on the satisfaction of the customers
  • Excellent brand merchandise

The main marketing objectives of Starbucks includes:

  • To increase the market share of UK to more than 17%
  • To grow the average spending of the customers by more than 5%

Caffè Nero is the other competitor of Atlas Coffeehouse café wherein the market share of the company has increased to more than 29.6% and the revenues has increased to more than 22 US dollars. The main marketing strategies of the company includes the following:

  • Introduction of the system of CRM in the industrial division
  • Refocus the range of the products on high margin items (Gronroosn 2016)

The main marketing objectives of Caffe Nero includes:

  • To increase the presence of the café in different parts of the world (Armstrong et al. 2015)
  • To improve the advertisement campaign of the company in an appropriate manner

These are the two main competitors of the Atlas Coffeehouse café that plays a major role in analysing their strengths and their competitive advantage. The organization named Atlas Coffeehouse café has to take care of the different objectives and strategies of both Starbucks and Caffe Nero as to analyse their techniques to improve their presence in the entire world effectively.


Furthermore, it is necessary for the café to understand their CRM programs along with introduction of new item full cream milk in their menu. Atlas Coffeehouse café has to handle the different grievances of the customers along with marketing the different strategies and techniques to improve their productivity in the market with implementation of different kind of technological advancements appropriately.

The PESTEL analysis of Atlas Coffeehouse café helps in providing a proper insight of the entire external environment wherein the different cafes operate and this strategy aids the formulation of the strategy of those organizations in an effective manner. In order to introduce new product named full cream milk in the competitive market, proper PESTEL analysis is required to be done to evaluate the unfavourable and favourable conditions in country’s political, economic, social, technological, legal and environmental setting.

Political

  • The key political imperative that is faced by Atlas Coffeehouse café are the concerns over the sourcing of the raw materials that has attracted the attention of the different politicians in West where it helps in sourcing the raw materials. Atlas Coffeehouse café has to adhere to different rules and regulations effectively as this will help in adhering to the sourcing strategies.
  • Secondly, the political imperative that can be faced by Atlas Coffeehouse café is the regulatory kind of pressures within the home market as there is greater scrutiny of the processes of the business.

Economic

  • The rise in the operational costs along with labour costs are the inflationary macroeconomic environment can cause issues in the profitability of the company in a negative manner (Krishnan and Malick 2015)
  • The different studies have shown that there are different consumers who are shifting their focus on different alternatives that can be threat to Atlas Coffeehouse café (Baker 2014)

Socio-Cultural

  • The key socio-cultural issue that can be faced by Atlas Coffeehouse café is related to expanding their customer base in the market. The company has to include the growing coffee culture that can be one of the opportunity for Atlas Coffeehouse café (Baker 2016)
  • Secondly, the other issue is related to the increase in the health consciousness that can be an issue for Atlas Coffeehouse café as there are different issues related to the same.

Technological Factors

  • Atlas Coffeehouse café is well poised as to reap the different benefits to the different customers in an effective manner (Holliman and Rowley 2014)
  • It can introduce different kind of mobile payments along with analysis of the preferences of the customers. Through online mode, the company can attract different customers in an appropriate manner to provide them with different deals

Creation of Value for Customers in Atlas Coffeehouse café

Legal Factors

  • Atlas Coffeehouse café has properly ensured that it does not run afoul of different rules and regulations in different countries from wherein it will help them in spreading their business

Environmental Factors

  • There are different outcomes about the business practices of Atlas Coffeehouse café and from the customers themselves. The different CSR programs has to be included by Atlas Coffeehouse café in order to analyse the environmental factors.

With the help of PESTEL analysis, Atlas Coffeehouse café has to consider the different kind of political, social, environmental, economic and environmental factors. These factors help the café in managing the issues related to them and solve the issues effectively and mange the issues in an accurate manner. It has been noticed that there are different environmental factors that has affected the brand image of Atlas Coffeehouse café, however such issues can be solved by the company with the implementation of technological advancements strategies.

The internal or micro analysis is essential in nature to be done by Atlas Coffeehouse café. The value chain analysis of the respective coffee shop named Atlas Coffeehouse café is required to be done as this will ascertain the different internal practices of the café. The value chain analysis is the analytical framework that helps in assisting in identifying the business activities that helps in creating value and competitive advantage can be gained by them in an appropriate manner. There are primary and secondary activities that are included in the value chain of Atlas Coffeehouse café that is required to be including inbound logistics, operations, outbound logistics, marketing and sales and services. On the other hand, the support activities include human resource management, infrastructure, technological development.

Furthermore, from the value chain analysis, it can be analysed that inbound logistics of Atlas Coffeehouse café refers to the selection of the finest quality coffee beans along with milk products. The company has appointed different suppliers for procurement of different coffee beans and other products and services. Additionally, the Atlas Coffeehouse café has to operate in various countries as this will help them in managing the direct sales. Internationally, the company has to expand the market in different other countries as this will generate more than 79% of the entire revenue.

The outbound logistics is the other element wherein it can be seen that there is no such presence of the intermediaries in the selling of the products in different countries. As a new venture, the respective café has to analyse the practices of the other competitors in the market to gain competitive advantage in the market.

 Furthermore, the sales and marketing activities of Atlas Coffeehouse café includes the different kind of quality products to the customer than the aggressive marketing. The services that are required to be provided by Atlas Coffeehouse café has to be in such a manner that this will provide and assist them with new product launches such as full cream milk appropriately.

Porter’s Five Forces Model Analysis

On the other hand, there are different support activities that includes the infrastructure of Atlas Coffeehouse café. The infrastructure of the company includes management, financial and legal requirements that has to be identified and analysed effectively. In order to compete with the other competitors in the market, this requires Atlas Coffeehouse café to complement with good customer service along with providing incentives to the employees appropriately (Kotler, 2015).

The human resource management and technology development is the main attribute for Atlas Coffeehouse café as the consistency of the products is major attribute that has to be managed by the company effectively. It is mandatory in nature for them to produce different kind of services in such a manner that can create positive work culture for the employees appropriately. The procurement of the goods and services is essential in nature as this will help the company in involvement of procuring goods and services effectually.

Caffe Nero is one of the major competitors of Atlas Coffeehouse café wherein it has been analysed that Caffe Nero is the direct competitor, however the distinguishing factor of Café Nero is that the quality is much better than Atlas Coffeehouse café and the wide range of assortment as well. Secondly, the brand positioning of Caffè Nero adopted European style, however Atlas Coffeehouse café includes the different American style coffee.

Furthermore, the other distinguishing point is that Caffe Nero has different outlets in the different countries; however, it is not the same for Atlas Coffeehouse café as they have limited outlets. Caffe Nero has huge scope of growing in different areas along with expansion of their menu. However, it is difficult for Atlas Coffeehouse café as the menu is limited and this can be a big disadvantage for the café as well. Caffe Nero targets the different tourists in UK or Italians for the Italian kind of cuisine.

 The main target customers of Caffe Nero is basically the premium or high-class individuals basically from the age group of 15-30 years aged individuals. The segmentation that has been done by them includes the different geographic locations and the company attracts more customers in the market. Furthermore, the price of the coffee that is served by them is £2.35 and there is around 11% discount provided on the purchase of the coffee to the individuals. The positioning of the Caffè Nero has been done in such a manner that the main unique selling proposition of the café is to sell high quality item by charging slightly greater prices for the new innovated products in the market (Kotler, 2015).

Starbucks is the other competitor of Atlas Coffeehouse café wherein it can be seen that the pricing of the café is higher than Atlas Coffeehouse café wherein they charge £2.60 per coffee. The promotional strategy adopted by the Starbucks include that the customers can gain 15 stars to earn a free coffee. Starbucks has targeted the age group from 22-60 years age group and this involves the high-income group individuals. The positioning of the Starbucks has been done on the basis of the premium coffee shop as they created high standard innovated products with excellent kind of service that is provided to them.

Furthermore, it can be noticed that Starbucks provides different products along with this they have gained strong brand positioning as well in the competitive market. This is one of the designer coffee shops that sells premium coffee and it features exclusively in different established countries.

Strengths

  • It has excellent brand visibility along with brand name
  • The young crowd is the target group and it is spread in more than 200 countries
  • There are different loyalty programs that helps in offering discounts and attracts customers (Kotler, 2015)
  • The coffee quality is excellent and they have included different new items in their menu that includes full cream milk
  • There are frequent offers provided by Atlas Coffeehouse café as this helps them in becoming one of the famous brands in the entire world

Weaknesses

  • It is perceived as one of the most expensive brands in the country
  • There is huge rate of competition from other coffee shops or fast food joints (Kotler, 2015)
  • The menu is less innovative in nature
  • The self service that is available at Atlas Coffeehouse café can be uncomfortable for the different customers who are visiting the café
  • The entire management team has not worked together for a very long period

Opportunities

  • Proper introduction of new and cheaper versions of coffee that can help them in diversifying the entire menu
  • Atlas Coffeehouse café has to introduce variants in coffee and tea along with full cream milk that will help them in expanding the business appropriately
  • Atlas Coffeehouse café has different tie ups with different companies for different promotional activities (Kotler, 2015)
  • There is huge scope of innovation for the company as they are planning to introduce a new menu named full cream milk as this can help them in gaining competitive advantage
  • The operating hours is restricted in nature that can be increasing more customer base

Threats

  • There is huge threat from the existing coffee chains along with fast food outlets
  • This is dependent on different kind of government commodity rates
  • The overall and entire macro environment is to support the high disposable income
  • The large unorganised market is one of the major threat that can create huge issues for their business
  • Lastly, there are customers who are becoming health consciousness and they prefer to avoid coffee, this can be a threat for the company

Segmentation- The young generation individuals both boys and girls who prefer drinking coffee and likes to hang out with different friends and relatives.

Targeting –  The main target individuals of Atlas Coffeehouse café includes the middle and high-income groups individuals in the market (Kotler, 2015)

Positioning- The positioning has been done by Atlas Coffeehouse café in such a manner that it is the kind of beverage that invokes love, sense of warmth and love on the different individuals. The main target market of Atlas Coffeehouse café is the mass market as they will gain more competitive advantage (Kotler, 2015).

The different marketing objectives of Atlas Coffeehouse café includes the following:

  • To provide quality-based differentiation products along with excellent customer service to the target customers
  • To create an excellent brand merchandise as this will focus mainly on the customer orientation
  • To use the different unconventional methods and techniques for branding along with marketing

Products include the analysis of the core service by providing uplifting coffee experience along with providing supplementary service such as facilitating the information and payment methods. This helps in enhancing the consultation in an appropriate manner (McDonald and Wilson 2016).

Price includes the competitive pricing that has been adopted by Atlas Coffeehouse café along with proper revenue management of the organization in an appropriate manner. the value-based pricing is essential in nature for Atlas Coffeehouse café as to adopt that will help them in attracting more customers (Kotler, 2015).

Place is the other essential element that includes the central location of the café as this will help them in attracting more customers. The place plays a major role in analysing the relationships between the different parties along with proper speciality operations. Atlas Coffeehouse café has created different convenient locations to gain more competitive advantage (Kotler, 2015).

Promotion is the element of marketing mix that includes the different public relations with the customers and making them aware about the different offers. Atlas Coffeehouse café has to use the communication mix as to include corporate design and sales promotion in their café in order to gain more customer base.

People is the other element that includes the different partners along with target customers of the company. Atlas Coffeehouse café has included different kind of organizational training to the different employees as to make them trained about the various activities (Kotler, 2015).

Process is the element wherein this includes the physical evidence is essential in nature for Atlas Coffeehouse café as the process will differentiate them from the other competitors in the market. The proper maintenance of the equipment along with analysing the different database for the loyalty cards (Kotler, 2015).

Physical Evidence is the last element that has to be considered by Atlas Coffeehouse café as to gain stronger customer base in the organization. Atlas Coffeehouse café has created strong customer base wherein this included the different presence in various cities and trying to explore in different countries as well.

Particulars

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Situational Analysis

Objectives

Strategy Creation

Action Plan

Control Mechanism

References

Adams, F.G., Gabler, C.B. and Landers, V.M., 2017, June. Green Logistics Competency: A Resource Hierarchy View of Supply Chain Sustainability. In Academy of Marketing Science World Marketing Congress (pp. 31-40). Springer, Cham.

Armstrong, G., Adam, S., Denize, S. and Kotler, P., 2014. Principles of marketing. Pearson Australia.

Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. Pearson Education.

Atlascoffeehouse.com.sg. (2018). Home | Atlas Coffeehouse. [online] Available at: https://www.atlascoffeehouse.com.sg/ [Accessed 22 May 2018].

Baker, M.J., 2014. Marketing strategy and management. Palgrave Macmillan.

Baker, M.J., 2016. What is marketing?. In The Marketing Book(pp. 25-42). Routledge.

Gronroos, C., 2016. Service Management and Marketing: Managing the Service Profit Logic. John Wiley & Sons.

Holliman, G. and Rowley, J., 2014. Business to business digital content marketing: marketers’ perceptions of best practice. Journal of research in interactive marketing, 8(4), pp.269-293.

Hsu, P.H., 2016. The Study of Multi-level Marketing Industry’s Channel Conflict and Management–A case of Company M.

Kotler, P., 2015. Framework for marketing management. Pearson Education India.

Krishnan, J.J. and Malick, T.V., 2015. A Study on Marketing Services. International Journal of Engineering and Management Research (IJEMR), 5(6), pp.421-423.

McDonald, M. and Wilson, H., 2016. Marketing Plans: How to prepare them, how to profit from them. John Wiley & Sons.

McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The marketing book (pp. 108-142). Routledge.

Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI Tourism Texts. Cabi.

Pride, W.M. and Ferrell, O.C., 2016. Foundations of marketing. Cengage Learning.

Sheth, J.N. and Sisodia, R.S., 2015. Does marketing need reform? Fresh perspectives on the future. Routledge.

Strauss, J. and Frost, R.D., 2016. E-marketing: Instructor's Review Copy. Routledge.

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