Analysis of Caffe' Nero Essay

4353 Words Mar 1st, 2011 18 Pages
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
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i. SMART marketing Objectives

Those objectives for Cafe Nero are set in quantitative and qualitative terms.

a) Quantitative objectives

Source: http://www.caffenero.com/CompanyInfo.asp?Section=FinancialInfo

Looking at previous data for Caffe’ Nero following quantitative objectives can be set:
• Increase the number of outlets to 50 in United Arab Emirates by the end financial year
• Increase the profit to 10-15 percent for the year on 2009 figures
• Reduce the operating costs to 20 percent in total in the next 5 years
• Increase the number of outlets to 1000 in the next 5 years on franchise deals and expand to Middle East

b) Qualitative objectives
• From external and internal analyses of Caffe’ Nero few errors were notified, therefore following qualitative objectives to correct those errors should be taken:
• Change the packaging on the food products and increase nutritional information in the next 3 years
• Improve Information System Technology used within company in the next 5 years
• Add new product to the product portfolio, and improve nutritional ingredients

4. Marketing Strategy and Tactics

i. Segmentations
There are so many people and organizations in the world, which means it is impossible for any business to reach or serve every customer. This can be possible by splitting up the market in smaller

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