Analysis of Caffe' Nero

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Table of contents

1.Introduction
2.Marketing Environment Audit
i.Internal and External Audit
ii.Competition
iii.SWOT analysis
3.Marketing Objectives
i.SMART goals
4.Marketing Strategy and Tactics
i.Segmentation
a)Segmentation
b)Targeting
c)Positioning
ii.Ansoff growth theory
iii.Porter’s generic strategy
iv.Tactics
a)The seven Ps
b)Kotler’s seven Cs
5.Evaluation
6.Appendixes

1.Introduction
Gerry Ford founded Caffe’ Nero in 1997. Caffe’ Nero is the biggest privately owned coffee chain in UK. His intension was to open up a chain of continental style coffee shop in UK. Currently Caffe’ Nero operates in England, Scotland, Wales, Turkey, and United Arab Emirates. Caffe’ Nero has over 400 stores and 3000 employees. Caffe’ Nero concessions in some UK major stores like Heathrow Airports, House of Fraser, bookshop chain Waterstone’s and also Caffe’ Nero Express outlets opened up in train and underground stations According to Allegra Consumer Reports Caffe’ Nero has been named as top rated espresso bar for the last 8 years by it is consumers (see table below). 2009 ALLEGRA CONSUMER REPORT RESULTS

COFFEE QUALITYATMOSPHERESERVICE QUALITYFOOD QUALITYAFFORDABILITYOVERALL WINNER 1.CAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NERO 2.COSTA COFFEESTARBUCKSCOSTA COFFEECOSTA COFFEECOSTA COFFEECOSTA COFFEE 3.STARBUCKSCOSTA COFFEESTARBUCKSSTARBUCKSSTARBUCKSSTARBUCKS

ALLEGRA AVERAGE RESULTS FOR 2002 TO 2009
COFFEE QUALITYATMOSPHERESERVICE QUALITYFOOD QUALITYAFFORDABILITYOVERALL WINNER 1.CAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NEROCAFFÈ NERO 2.COSTA COFFEESTARBUCKSCOSTA COFFEESTARBUCKSCOSTA COFFEECOSTA COFFEE 3.STARBUCKSCOSTA COFFEESTARBUCKSCOSTA COFFEESTARBUCKSSTARBUCKS

Source: www.caffenero.com

Gerry Ford the entrepreneur of Caffe’ Nero is planning to increase his coffee shop outlets by 1000 in the next five years, he wants to increase his Caffe’ Nero Express outlets, increase the number of outlets in Turkey and United Arab Emirates. He also plans to open Caffe’ Nero outlets in China, Middle East, India, the Nordic countries, and Central Europe under a franchise deal. Gerry Ford also thinks that key to his success is how he markets his product. Therefore, marketing strategy is crucial part of the success of the business. The report below is marketing environmental audit and a marketing plan for Caffe’ Nero for the current annual year. Source: www.caffenero.com

2.Marketing Environmental Audit
Knowing the current economical climate in preparation of marketing plan of Caffe’ Nero for the year carrying internal analysis, external analysis, and knowing the competitors is very important.

i.Internal and External Audit
To carry out external environmental analysis of the Caffe Nero PESTEL analyses used (see Appendix 1 for details). PESTEL analysis is mainly concentrated on macro-environmental effects that are uncontrollable in the business. In order to set marketing objectives knowledge of those factors are crucial. Knowledge of internal factors is important as well, those factors analyzed through using 5 M’s. Evaluating internal environmental can be used to correct the errors, as this is micro-environmental analysis and those factors are controllable.

ii.Competition
Cafe Nero is third largest chain coffee shop in UK after Starbucks and Costa coffee, those are the main competitors of Caffe’ Nero. In addition, around three thirds of the profit generated from food therefore Eat, Pret A Manger, and Greggs classed as Cafe Nero’s competitors as well. To analyze the impact of the competition on Caffe’ Nero Porter’s Five Forces analysis (see Appendix 3 for details) is used. Michael E. Porter of Harvard Business School developed Porter’s Five forces analysis in 1979. Porter’s Five Forces analyses concentrate on industry analysis and business strategy evaluation.
Graphical representation of Porter’s...
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