E-MARKETING 1

E-Marketing Plan for CaféPod Coffee Company

[Name]

Date
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Table of Contents

1.0 Introduction...........................................................................................................................3
1.1 Company and Industry Background.................................................................................3
2.0 Situation Analysis.................................................................................................................4
2.1 Macro-Environment Analysis (PEST Analysis)...............................................................4
2.1.1 Political Factors.........................................................................................................4
2.1.2 Economic Factors......................................................................................................4
2.1.3 Social Factors.............................................................................................................4
2.1.4 Technological Factors................................................................................................5
2.2 Micro-Environment Analysis (SWOT Analysis)..............................................................5
3.0 E-Marketing Strategic Plan...................................................................................................6
3.1 Segmentation and Targeting.............................................................................................6
3.2 Differentiation Strategy.....................................................................................................8
3.3 Positioning Strategy..........................................................................................................8
4.0 E-Marketing Objectives........................................................................................................9
5.0 E-Marketing Strategies.........................................................................................................9
5.1 4 Ps Marketing Mix Strategies..........................................................................................9
5.1.1 Product Strategy.........................................................................................................9
5.1.2 Price Strategy...........................................................................................................10
5.1.3 Place Strategy..........................................................................................................10
5.1.4 Promotion................................................................................................................10
5.2 Electronic Direct Mail (EDM) & Justification...............................................................11
6.0 Implementation Strategy.....................................................................................................12
7.0 Budget and Evaluation........................................................................................................12
8.0 References...........................................................................................................................13
9.0 Appendix 1..........................................................................................................................16
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1.0 Introduction
1.1 Company and Industry Background

CafePod is a London based brand specializing in the production of craft coffee to be enjoyed by
consumers in the everyday grind. CafePod focuses on coffee varieties such as gourmet popcorn,
coffee capsules, espresso compatible, breakfast treats, chocolates, and biscuits, all aimed at
enabling lovers of coffee to enjoy some quality drinking experience (CafePod, 2022). The brand
was founded in 2010, and since then with more than a decade in business, CafePod has remained
passionate about ensuring their goal of making great-tasting, high quality coffee that is easy to
prepare and exciting is achieved (CafePod, 2022). At CafePod, quality means craftmanship, and
this starts from the coffees blended by the brand to their roasters, as well as people bringing their
products to them. New product categories explored by CafePod include flavored coffee, decaf,
and infusions. The brand has a substantive online presence across different platforms that allow
them to sell directly to consumers, while also advertising their product varieties
(https://www.cafepod.com/).

The primary industry in which CafePod operates is the UK beverage industry. The industry
statistics indicate that the UK beverage industry makes a £30 billion contribution to the UK
economy, and this represents a 4.2% growth compared to the past year (Food & Drinks
Federation, 2022). Moreover, the beverage industry in the UK enjoys a £112 billion turnover
which account for 20% of the overall manufacturing in the UK. This also makes the beverage
sector the largest manufacturing sector in the UK (Food & Drinks Federation, 2022). The
beverage industry’s importance in the UK is way beyond turnover. Across the UK, 468,000
people are employed in the sector, making it an imperative part of the food and drink supply
chain employing 4.2 million people and injecting £126 billion into the UK economy (FTSE,
2022). The general growth of the UK beverage industry is largely driven by exports. This goes
beyond 220 countries and destinations globally, with a value more than £20 billion. The top three
destination markets are Ireland, France and the United States (FTSE, 2022). The industry
earnings over the past three years have remained considerably flat. In the meantime, firms
operating in the beverage industry such as CafePod have had a 4.4% annual growth in revenue.
The implication is that whilst more sales generation is ongoing, it might be that the level of
investment back into the business, or the cost of doing business has been on the rise, and as such,
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profits have remained stable (Food & Drinks, Federation, 2022).

2.0 Situation Analysis

2.1 Macro-Environment Analysis (PEST Analysis)
2.1.1 Political Factors

Coffee business largely depends on international trade for its success. It is notable that Asia,
Africa, and South Africa host some of the biggest producers of coffee, but the popularity of the
beverage is vast in North America and Europe, including the UK (Krishnan, 2017). As such,
trade relationships between coffee producing countries and the UK is a crucial determinant of the
beverage’s ultimate price tag, and this in the end affects sales. At the moment, several bilateral
trade agreements are in place, ensuring the success of the beverages industry in the UK.
Uncertainties surrounding trade such as those that involve the UK and the EU have a lower
likelihood of affecting the coffee market (Henökl, 2018).

2.1.2 Economic Factors

The continuous growth of global economies like the UK has a single implication: similar growth
in consumer income levels. This also means that there is more money available among
consumers to spend. This poses a positive impact on the beverages industry, since with
consumers getting richer, their likelihood of consuming coffee beverage also increases.
Moreover, the growing incomes means more likelihood of consumers splurging on higher quality
coffee grounds (Torga & Spers, 2020).

2.1.3 Social Factors

The perception of health among people in the society has changed a lot in the present century.
People today are more likely to make healthier choices, which also means that they spend a lot of
time eating better food, exercising, and avoiding given habits. Whilst many studies have opined
that coffee is healthy, another unavoidable fact is that it has high caffeine levels (Samoggia &
Riedel, 2019). Being part of a trend in health consciousness, caffeinated beverages are slowly
being dropped by consumers in the interest of improving their mood and sleep. Such trends may
mean that the demand for coffee could drop significantly (Samoggia & Riedel, 2019). The other
social factor in this respect is fair trade. This is a global movement aimed at offering better
compensation to farmer of a given produce rather than the middlemen who tend to benefit more.
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Fair trade movement has largely targeted the coffee industry. With consumers showing higher
demand for fair trade products (Semeen & Islam, 2021), the farmers are likely to earn higher.

2.1.4 Technological Factors

Genetic engineering is a key trend is the beverages industry globally. This technological trend
involves genetic modification of produce to result in improved shelf-life, higher yields, and
much more (Vanloqueren & Baret, 2017). the popularity of genetically modified coffee has been
on the rise within the industry. Generally, genetic engineering should be helpful for the growth
of the coffee industry, considering that it permits producers to earn more profits. Nonetheless,
there are consumers who are sensitive to consumption of genetically modified products citing
various side effects (Lusk et al., 2018). In addition, the introduction of coffee-specific appliances
is another important trend occurring in the coffee industry. Espresso makers, coffee grinder, and
drip machines are presently available ubiquitously. Such appliances increase the ease of
consuming coffee, thus encouraging consumers to consider brewing coffee at their homes
(Maciejewski & Mokrysz, 2019). Whereas this might not affect the overall coffee industry size;
it could lead to more consumers making and drinking coffee at home. This means that very few
consumers will go to outdoor cafes like CafePod.

2.2 Micro-Environment Analysis (SWOT Analysis)

SWOT analysis of CafePod is shown in table 1 below. It highlights the underlying strengths,
weaknesses, opportunities, and weaknesses of the brand. Table 1: SWOT Analysis of CafePod

Strengths  Availability of premium rates – CafePod has included premium rates in their pricing strategy for coffee, and
are consumers who are willing to pay for the same. Most consumers going for the premium rated coffee do so
result of prestige, the clean environment in the café, and excellent service.
 High-quality product service – there are several elements contained in CafePod’s quality products, and these
clean utensils and a clean environment, tasty coffee varieties, and a cheerful attitude among employees. Brou
together, these ensure that the brand delivers a positive message to their customers (CafePod, 2022).
 Unique and tailored customer experience – CafePod make all efforts to ensure that their customers are enga
personal level. Efforts geared towards making consumers feel good include a grin, a calm look, a wink, and e
simple banter. CafePod attempts to set themselves apart from their competitors through the provision of a
personalized customer experience (CafePod, 2022).
 The value of work – there are obvious labor values attached to cafes. For CafePod, the implication is that the
has to maintain promptness in handling their clients in the café. There is a higher likelihood of customer bein
appreciative when the brand puts their heart and soul into the business (Schmitt, 2010).
Weaknesses  The system is operated manually – CafePod still do most of their things manually and this is having a positiv
impact on the brand’s efforts towards high quality products and services. Whereas manual methods come wit
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share of benefits, they tend to be costly and time consuming (Seminario & Mendoza, 2018).
 Extremely competitive – the coffee market in London is highly competitive and features both small and big b
that sell virtually the same products. This leaves CafePod with no choice but to share the market share and
subsequent profits with the other rivals in the market (Food & Drink Federation, 2022).
Opportunities  New Techniques & Innovation – CafePod can leverage a big opportunity coming in the form of innovation a
adoption of new techniques in order to improve the performance of the brand in the market. Such opportuniti
also come in the form of a new flavor introduced, new work procedures, introduction of new seating arrangem
and so forth.
 Product Line Expansion – other than just selling variants of coffee, CafePod might also want to take advanta
the possibility of expanding their product range by giving snacks, cakes, cookies, and other goods to their cus
Doing so will not just be a lovely addition to their offerings, but will equally bring in extra income for the bra
(Thomadsen, 2012).
 Brand awareness via advertising – a new market may equally be targeted by CafePod by leveraging the pow
social media and other online business platforms.
 Home delivery and mobile app – the internet offers a myriad of opportunities and one of such which can be e
by CafePod is mobile device apps and home delivery services. This will offer the brand’s customers with an
alternative, thus potentially increasing the traffic into the business (Gupta, 2019).
Threats  Low profit margin – the cut of profits for CafePod is still low, threatening the brand’s sustainability.
 Market with a high price sensitivity – coffee prices cannot be increased beyond some point, which means tha
CafePod must set their prices within a given limit to keep in-flaw of customers. Explains the low profits.
3.0 E-Marketing Strategic Plan
3.1 Segmentation and Targeting

Market segmentation is termed by Dolnicar et al. (2018) as the classification of a market into
diverse groups of consumers on the basis of their needs, behaviors, or characteristics which could
require separate products or marketing initiatives. Psychotropic variables are also included in the
segmentation variables when considering brand diversity within a market. In its early years,
CafePod paid much attention to the high income earners in the market, and this was largely
comprising of individuals with well-paying jobs and proper education. Nonetheless, the brand
quickly discovered growth opportunities in the beverage industry, and subsequently developed
mechanisms of accommodating a wider scope of the market segment (CafePod, 2022).
Classification of market at CafePod follow four segmentation variables, including, demographic,
behavioral, psychographic, and geographic. Product differentiation approach is then used by the
brand for the satisfaction of various customer segments. In terms of geographic segmentation,
CafePod has café outlets in London that are a reflection of the tastes and preferences of the local
market. There could be similarity in the design of the cafes, but there is variation in the product
categories (CafePod, 2022). Moreover, CafePod has a vast online presence, starting with the
official website of the brand (https://www.cafepod.com), as well as social media platforms such
as Facebook and Instagram. In terms of demographic variable, CafePod’s main target market age
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are individuals aged between 22 to 60 years, male and female alike. This age bracket includes
students, employees, and professionals. Their lifecycle stage includes single people, couples who
are newly married, couples who have been married for long and with children, and even children
over six years. The psychographic variables considered by CafePod include social class and life
style. The brand thus targets middle- and upper-class markets, and such individuals have their
lifestyle revolving around being reformers, explorers, aspirers, mainstreamers, and achievers.
Lastly, in terms of behavioral segmentation, CafePod focuses on benefits sought and the degree
of loyalty of the customers. Benefits include having a place conducive for formal and informal
meetings, and work, while at the same time enjoying coffee at a premium price but with a
relaxing ambience (CafePod, 2022). Kotler (2017) explains that targeting in marketing revolves
around evaluation of every interest of the different segments of the market, then choosing the
most ideal segment(s) to enter and focus on. Elements that present higher chances of generating
profits and sustaining such profits over time are mostly chosen. In other words, targeting entails
the groups or segments that a brand opts to sell their products to. The focus of the target market
of CafePod’s premium quality coffee is office employees earning from middle to high incomes.
With CafePod having an extensive presence in London, the brand makes local delights that
showcase customers’ cultural characteristics. Moreover, locals who attempt out local treats that
CafePod offers are allowed to try the local coffee brewed in the UK. With people going after
sustainable and cleaner foods, the aim of CafePod is equally to avail tables onto which customers
can drink. These are placed on the official website of the company and can be easily accessed by
any customer.

3.2 Differentiation Strategy

The differentiation strategy used by CafePod is broad and generic, and this gives the brand a
competitive advantage via ingredients and products establishing an image of uniqueness and
specialty. The use of generic strategy is translated to different programs and strategies keeping
the brand against competitors. This strategy, however, comes with the challenge of compelling
CafePod to always be innovative as a way of maintaining their attractiveness and uniqueness
among customers (Pulaj et al., 2015). The growth of CafePod brand occurs via intensive growth
strategies revolving around market penetration, product development and market development.
CafePod, with the help of the strategies, ensure business expansion becomes a success,
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notwithstanding the intensity of competition they face in the London market. Moreover, CafePod
has intensive growth opportunities in parts of the market in which coffeehouses are yet to be
saturated (Islami et al., 2020). Through expansion, CafePod will be poised to fulfil their
corporate vision and mission, sticking to the goal of ensuring the brand becomes a market leader
in the coffee industry. Besides, the business diversification intensive growth approach is a
strategy that helps CafePod increase their actual potential for growth via operations external to
the coffee industry (Pulaj et al., 2015).

3.3 Positioning Strategy

The STP marketing strategies end with positioning, and this is regarded as a fundamental pillar.
Positioning an offering in the market revolves around using a strategic approach to market a
brand, creating and nurturing an image in the minds of consumers and within the target market
(Camilleri, 2018). At CafePod, the brand has focused on creating a unique market positioning
with the aim of ensuring that it is possible to clear distinguish their offerings from those of
competitors, while at the same time providing excellent strategic advantage in the target market.
The positioning strategy used by the brand is customer centric, offering beyond what the
customer needs. Other than the production of great coffee, CafePod also pays attention to the
promotion of a positive brand image and reputation across their target market via environmental
protection efforts, excellent ambience in their cafes, and social responsibility. Consequently, this
ensures customer feel that in using CafePod’s products, they are making some contribution to the
society and nature (Anderson & Anderson, 2017). The cafés owned by CafePod are designed
with free Wi-Fi services, coupled with a comfortable location in which customers might study or
rest. There are stores with ‘drive-thru’ for the customers who might be interested in entering the
store. CafePod equally extends towards the promotion of social responsibility by paying
attention to the community. Opportunities are offered by CafePod of hiring different employees
from diverse backgrounds, and offering education and career to the youth (CafePod, 2022). With
regards to environmental protection, CafePod has positioned themselves as the brand that takes
up a LEED approach (Leadership in Energy and Environmental Design), in terms of how their
stores are structured. Recycled coffee grounds are used by CafePod for their tables, alongside the
use of materials that are low in harmful chemicals for the sealants, adhesives, coatings, and
paints (CafePod, 2022).
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4.0 E-Marketing Objectives

The e-marketing objectives set out below are to be achieved within the first 12 months of
implementing this plan. These objectives are SMART (Specific, Measurable, Achievable,
Relevant, and Time-bound) in nature. They include: (i) To increase the sales of CafePod by 10%
from their existing customer base within the first 6 months of operation. (ii) To improve the total
organic traffic conversion rate for the brand by 24% within the first 1 year of operation. (iii) To
achieve a 15% return rate among those visiting the company’s website by the end of 2023. (iv)
To receive a minimum of 15,000 visitors every month from Bing and Google natural results by
the end of 2023. (v) To reduce the brand’s bounce rate to lower than 35% for all sources of
traffic by November 2023. (vi) To increase the level of engagement on social media platforms
like Facebook and Instagram by 25% within the first year of operation.

5.0 E-Marketing Strategies

5.1 4 Ps Marketing Mix Strategies
5.1.1 Product Strategy

The suggested product strategy that CafePod should consider for their target market in the UK is
product differentiation strategy. This strategy is aimed at encouraging consumers to choose a
specific product or brand over the other in a field filled with competitors. This means that
qualities are identified which set a given brand apart from the other similar brand, using such
differences to advance the choice of consumers (Valipour et al., 2012). CafePod can use this
strategy to focus on a particular niche of the UK market. For instance, the brand could find that
operating in London comes with a lot of competitive pressure. Consequently, a money-back
guarantee or exception service and products can be guaranteed by the brand. As a way of setting
a difference against existing rivals, the brand can consider laying emphasis on their support for
the local community. CafePod can execute this strategy by, for example, hiring locally, or
sourcing their raw materials and ingredients from local purveyors or farmers (Boehe & Barin
Cruz, 2010).

5.1.2 Price Strategy

Penetration pricing strategy will be the most ideal approach for CafePod owing to the size of the
brand, and the immense opportunities offered by the UK coffee industry. This pricing strategy
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involves a new product/service being offered at an initially lower price in order to grasp the
attention of customers. The main aim is to aggressively gain customers with low prices, hence
market share (Spann et al., 2015). CafePod is still a small brand in the market, and penetration
pricing strategy can be leveraged to gain two key advantages. The first is capturing market share
even when the brand still does not have significant product diversity (focuses largely on coffee
only). Second, this strategy can help build brand loyalty through attraction of new, loyal
customers. Rewarding customers who make continuous purchases is an effective way of gaining
such loyalty (Sije & Oloko, 2013).

5.1.3 Place Strategy

The official website of the brand, search engines, emails, and social media platforms should form
part of the brand’s place strategy. These channels will add relationship factors that CafePod can
take advantage of. For instance, the brand will be able to make instant responses to users who
ask questions on social media platforms like Facebook and Instagram; respond to any negative
reviews; add insightful recommendations through Quora; and interact with users directly, thus
harnessing the power of building relationships on the basis of where clients are most active
(Dewi, 2020).

5.1.4 Promotion

There are several promotional strategies that CafePod can adopt. The first is Search Engine
Optimization (SEO) – CafePod can consider optimizing their website in order to drive traffic to
the site, and help customers discover the brand when searching online for coffee shops. The
brand will need to ensure local search terms are targeted, as this is important in driving local
customers to the brand’s cafés (Bhandari & Bansal, 2018). The second is email marketing –
getting customers’ email addresses will be important for CafePod as those email addresses can
be used to send promotional messages to the customers. This is a quick and affordable
promotional tool that will keep CafePod at the top of their customers’ minds. This will also help
increase the brand’s overall visibility (Hartemo, 2016). The third strategy is direct mail flyers –
ads and coupons can be sent directly to people living in the target market. Such flyers may
contain offers available at the café. Moreover, CafePod should consider integrating the online
marketing with the direct mail by including website link and QR Codes in the mail. Lastly,
CafePod can adopt social media marketing. Conventionally, a lot of time is spent on social media
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by people, and it is important that CafePod considers that they are able to see and engage with
the café. The social media strategy of the brand should include paid ads and unpaid posts,
organically reaching people spending their time on Twitter, Instagram, and Facebook. For
example, pictures of CafePod’s coffee creation can be posted on Instagram and Facebook feeds
of the brand. Customers can then be encouraged to tag themselves with the page location when
they make online purchases. As such, social media can be used as a tool of drawing targeted
traffic to the brand’s pages and subsequently, products (Li et al., 2021).

6.0 Electronic Direct Mail (EDM) &Justification

The EDM developed for CafePod for their target audience is aimed at increasing the sales of the
brand from its existing customer base by 10% within the first 6 months. The EDM below is in
the form of an email advertisement that 20% discount for every customer who opts to celebrate
their birthday at CafePod. Considerably, the discount coupon is shrunk to miniature levels, but
one that will make an even bigger impression than what rivals could be potentially working to
unveil. The objective of the EDM is to increase the sales of the brand from its existing customer
base by 10% within the first 6 months. The discount coupon demonstrates how consumer direct
mail ideas can be used in business to attract the attention of customers and increase brand
perception (Appendix 1). The discount coupon is meant to impress on the mind of the audience
that CafePod cares about them enough to offer a 20% discount to those celebrating their
birthdays within a 30-day window. Moreover, the EDM also expressively informs the customer
that CafePod position themselves as the favorite coffee shop preferred by the customer, and in
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return, values and acknowledges their loyalty. The mail is meant to encourage a customer to trust
the brand even more, thereby making repeat purchases going into the future. Besides, an
assumption is made the customer will likely share this message within their social circle, and in
so doing, will be able to widen their influence far and beyond. CafePod can in this sense benefit
from a free electronic word of mouth (e-WOM) marketing (Ismagilova et al., 2017). At the end,
the goal of increasing overall sales by 10% within the first 6 months should be made a reality,
and even surpassed.

7.0Implementation Strategy

To implement the above e-marketing plan, the following strategies will be considered: (i)
Identifying key resources required for implementing the e-marketing plan. Resources might
include content writers, graphic designers, project managers, technical workers, and so on. (ii)
Creating a workflow, turning the plan into actionable tasks. Every marketing strategy will need
to have a deadline, owner, and priority. This will ensure proper organization and ease of
implementation. (iii) Managing the e-marketing project as a way of ensuring that everyone does
what they are supposed to do. In so doing, it will be easy to quickly identify emerging issues,
revising the plan back on track. (iv) Measurement of results against set metrics such as costs,
time, and tasks. This will help identify whether the set objectives were met or otherwise.

8.0Budget and Evaluation

The implementation of the above e-marketing plan will not cost anything beyond reasonable
figures for the brand. An average of $125 per hour will be needed. The projected budget for
accomplish all the strategies suggested in the plan would be $165,000 to $235,000 annually. This
figure includes ad spend, people, and technology. Averagely, the company will need to spend
between 7 and 11% of their total revenue on e-marketing. With CafePod’s annual revenue of
over $1.6 million, affording this marketing plan should be possible.
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