External And Internal Analysis Of Aroma Espresso Bar In Canada

• Conduct an external analysis of the market in which Aroma Espresso Bar competes and report your findings. This analysis must comprise 4 parts: A) Name the broad-product market in which the Aroma Espresso Bar competes and comment on the characteristics of this market. B) Comment on the broad environmental factors influencing future market health. C) Identify two key competititors for Aroma Espresso Bar and briefly comment on their competitive strategies. D) Describe a segmentation model for the broad product-market in which TBC BRAND competes (the narrow product-markets (submarkets) within this broad product-market). Your answer should identify qualifying and determining dimensions for each submarket, and be in the form of a table similar to Exhibit 4-12: Segmenting the Broad Product-Market for Motel Guests in a Large Urban Area in the article in the course kit: Focusing Marketing Strategy With Segmentation and Positioning.
• Conduct a thorough internal analysis of how Aroma Espresso Bar competes within this market and report your findings. Your commentary should convey an understanding of the following aspects (if the information is publicly available or these aspects are observable): Aroma Espresso Bar heritage, mission, vision, values, key leadership, culture, core capabilities (assets and competencies) value proposition and marketing mix (a detailed review of its product, pricing, place, promotion and people strategies)
• Infer Aroma Espresso Bar’s strategic platform (Brand Purpose and Brand Identity) from your internal analysis of this brand. Use the formats, “Aroma Espresso Bar exists…” and Aaker’s Brand Identity. (See examples in lecture notes and in the Aaker text)

1.External Analysis

The market analysis is the highest priority in the making of a business strategy. External analysis of the market is divided into four parts; to identify the product market, to understand the environmental factors affecting the future of the market, to analyse the other competitors and creation of a segmentation model.

The products of Aroma Espresso Bar are part of the food and beverage market of Canada. Canada has a growing fast food market ("Food and beverage sector performing well", 2017). Canada’s food and beverage market has a growth of 3.2 percent, which is couple of percent more than Canada’s overall manufacturing sector("chiptole", 2017). In 2014, Canadian food and beverage industry has estimated sales over 71 billion USD. This sector includes big giants like Mc Donalds, Burger King and many more. According to the Bank of Canada, the food and beverage industry will grow 2.6 % in the GDP, when the total economic growth of the country will be limited to 1.3%. There are various sectors in the food service business (Bostock, 2017). They are:

Restaurants

Home delivery

Take away

Food Trucks

Aroma Espresso Bar is a restaurant, which serves fresh food and coffee. Though it has adopted according to the taste and requirement of Canada and also introduced other beverages to suit the customers.

Restaurants are categorized according to the form of service they provide. The categories are:

Ethnic restaurant

Fast service restaurant

Fine dining restaurant

Casual dining restaurant

Cafeterias

Fast food

Pub

• This type of restaurants offers fresh food and quality beverages (Coffee) to its customers.
• It charges a bit more than the Fast food restaurants.
• Aroma offers recipes on chicken, eggs and vegetables.
• The customers have to order their food in the counter and seat down at the table for the meal.
• These restaurants offer meals in medium rate (8$ to 15$).
• These restaurants offer diverse recipes in its menu.

• It is also offers coffee as a major beverage, which brings it in a direct competition with other cafeterias.
• The other alcoholic and non alcoholic beverages are also available in the market.

The business of Aroma Espresso Bar is dependent on various political, economic, socio cultural and technological factors. They are:

Factors	Effects
Political factors	The taxation policy, the international trade, inflation, overall labour laws and business laws affect this business.
Socio-cultural factors	The eating habit of people has been changing in the last decade. The social norms of dining outside have changed over the years and have been a big boost for the restaurants.
Technological factors	The factors like digitalization and use of better technology has affected the restaurants big time.

The food industry of Canada is thriving at this point of time. Hence, large giants like Mc Donalds, Burger King, Dominos, Star bucks and many others have expanded their business in couple of years.  According to the reports of “Technomics” in 2014, Fast Service or Fast Casual restaurants have recorded a magnanimous 987 million USD business in Canada. One of the major players in this sector is South St. Burger Co and Smoke (Bostock, 2017).

The reputation of South St. Burger Co has only grown with time. Since 2008 it has expanded up to 100 locations in the country.  The menu items are lesser in number, hence it has accomplished itself in fast dining. South St. Burger Co. has upped their sales by 6 percent in the year of 2015. The cost of the food products are from $7 to $13, which is quite cheap(Bostock, 2017).

Smoke is another prime competitor of Aroma. According to reports it will hit 1300 units in the year 2019. One of the officials of Smoke Poutinerie claims that the company has increased 12 percent of sales in the year 2015. Smoke Poutinerie offers a range of products from $2.99 to $13(Bostock, 2017).

Identification of the product market

The segmentation model of Fast Casual dining restaurants are:

Consumer	Demands	Features
Higher Professionals	Comfort, fresh and healthy food, diverse menu options, good service and costly décor are required.	Working professionals with busy working schedules, needs quick service, time is valuable for them.
Romantic  Couples and other groups	Comfort, calm environment and cheaper food items are required.	Couples and other groups wants to spend quality time with good fresh food.
Family	Comfort, good service, substantial seating arrangements and other forms entertainment is required.	Primarily these people come in the eateries to relax, have fun and spending some quality time.
Students	Clean ambience, cheaper food, and tasty recipes are required for the students.	Fast service is required.

Aroma Espresso Bar was opened in Jerusalem, Israel 1994. It is owned by a Jewish couple , Davidson and Earl Gorman("Chapter 4. Food and Beverage Services | Introduction to Tourism and Hospitality in BC", 2017). In 2001, Aroma opened its branch in Toronto, Canada. Aroma has about 25 million customers across the continents and owns 30 branches in Toronto.

• Aroma eyes competition with giants like Starbucks, Tim Hortons or Second Cup. It wants to hold its uniqueness in terms of taste and versatile products it offer. It targets customers of fine dining restaurants, as it is costlier("Blog - Aroma Espresso Bar", 2017)

It offers an ethnic and special form of coffee, which is unique in Canada. It also changes its recipes according to the location, as it targets different customers every time. Aroma wants to increase their productivity but sustain their quality as well("Chapter 4. Food and Beverage Services | Introduction to Tourism and Hospitality in BC", 2017).

A Jewish couple, Davidson Gorman and Earl Gorman, leads aroma.

• Despite the fact that Aroma was opened for the Israeli migrants in Canada but it adapted according to the market situation. It has developed food and coffee according to Canadian market and hence, has become successful in expanding the customer range("Blog - Aroma Espresso Bar", 2017)

Aroma has expanded its market in less than two decades in Canada. It has opened about 126 outlets in North America. Among, which it has 33 outlets in Ontario and 30 outlets in Toronto. Therefore, it has been successful in alluring taste buds of Canadians in all major cities. The capability of understanding a market and strategize  according to it makes Aroma unique unlike many of its competitors (economy, & Klemmer, 2017).

• Product: Aroma offers coffee, alcoholic drinks, beer, fresh salads, soups, meat and others.
• Pricing: The cost is lesser than its competitors like Starbucks, Second Cup, St South Burger Co and others. Aroma offers Cappuccino for 4.25$ whereas Star bucks, Second Cup and Tim Hortons demands 4.95, 4.30 and 4.40 respectively ("Aroma Espresso menu", 2017).

• Promotion: Aroma is a smaller enterprise if compared to its competitors like Starbucks and Tim Hortons. It advertises itself through social media like Facebook, Twitter and Instagram. It has also established its presence in the food applications like Zomato in the recent times Blog - Aroma Espresso Bar", 2017).

• People: Aroma hires people from the Food and Beverage background. They buy their raw materials from the local dealers.

• Brand Purpose

Aroma Espresso Bar provides coffee, salads, bread and various forms of continental food.

• Brand Identity

The essences of Aroma Espresso bar are:

• Its versatile menus according to location (It has different food products in Canada and USA)
• A difference of taste and good authentic Israeli coffee unlike other competitors.
• Good, friendly service and customer relations.
• Its involvement in various charities and social work ("CSR report", 2017) ("Blog - Aroma Espresso Bar", 2017)

References

Aroma Espresso menu. (2017). Aroma Espresso Canada. Retrieved 25 May 2017, from https://aroma.ca/product-category/menus/

Aroma Espresso menu. (2017). Aroma Espresso Canada. Retrieved 25 May 2017, from https://aroma.ca/product-category/menus/

Blog - Aroma Espresso Bar. (2017). Aroma Espresso Bar. Retrieved 25 May 2017, from https://www.aroma.ca/blog

Bostock, A. (2017). Aroma Espresso Bar Continues Its Aggressive Expansion in Canada. Foodservice and Hospitality Magazine. Retrieved 25 May 2017, from https://www.foodserviceandhospitality.com/aroma-espresso-bar-continues-its-aggressive-expansion-in-canada/

Bostock, A. (2017). The Fast-casual Segment Remains an Important Player in 2016 - Foodservice and Hospitality Magazine. Foodservice and Hospitality Magazine. Retrieved 25 May 2017, from https://www.foodserviceandhospitality.com/the-fast-casual-segment-remains-an-important-player-in-2016/

Chapter 4. Food and Beverage Services | Introduction to Tourism and Hospitality in BC. (2017). Opentextbc.ca. Retrieved 25 May 2017, from https://opentextbc.ca/introtourism/chapter/chapter-4-food-and-beverage-services/

chiptole. (2017). Retrieved 25 May 2017, from https://: www.chipotle.com

CSR Annual Report: www.iajvs.org/documents/IAJVS2012annualFINALtoPRINTER.pdf

CSR report. (2017). CSR report. Retrieved 25 May 2017, from https://www.iajvs.org/documents/IAJVS2012annualFINALtoPRINTER.pdf

economy, F., & Klemmer, C. (2017). Canada’s food and beverage manufacturing sector poised for growth. Manitoba Co-operator. Retrieved 25 May 2017, from https://www.manitobacooperator.ca/news-opinion/opinion/canadas-food-and-beverage-manufacturing-sector-poised-for-growth/

Food and beverage sector performing well. (2017). Yorkton This Week. Retrieved 25 May 2017, from https://www.yorktonthisweek.com/agriculture/food-and-beverage-sector-performing-well-1.19437132

Food and Beverage Services: www.opentextbc.ca/introtourism/chapter/chapter-4-food-and-beverage-services

Food and Beverage statistics, Casual Restaurants: www.hoovers.com/industry-facts.casual-restaurants.1443.html 

Indirect competitor, Chipotle, Mexican grill: www.chipotle.com