Marvin and Smith's Coffee Shop Business Expansion - Essay Sample

Introduction

Expansion of business is one of the immediate considerations that come into play whenever a business achieves a certain level of success. Achieved success fuels dream for growth and expansion of business into new markets. The success for Marvin and Smith's coffee shop, having been started in London and even set up two more coffee shops within the same location, calls for expansion of coffee shop as a way of acquiring new markets.The need for expansion of Marvin and Smith's coffee shop is also attributed to the rising demand for the East-African inspired coffee taste. As the economies get global, expansion of business across borders becomes a necessity. However, the expansion process requires a careful approach to avoid the pitfalls that fast-growing businesses are likely to face (Hill, 2008). The choice for locations for expansion, therefore, becomes a key factor. Chosen locations for expansion should provide a market for a business.

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Finland is the chosen country for expansion of Marvin and Smith's coffee shop. Across the globe, Finland is the country with the highest rates of coffee consumption. According to statistics, coffee is linked to most of the situations of Finn's lives. In different occasions, whether in sorrow or joy, at work or at home, spending time with friends or family, at bus stops or while seated by a campfire, coffee must be available(Santos, 2013). A strong link of Finn's lives to coffee makes coffee a drink that allows for a second think of the next line as well as a great way to fill a silent moment. The culture of drinking coffee by Finns has shaped their working lives with legal coffee breaks included in the work schedules. It is common that an individual can have two coffee breaks in addition to the lunch break(Santos, 2013). The high rates for coffee consumption in Finland make it the best location to expand Marvin and Smith's coffee shop business.

Finland coffee shop business is operated on great ethical considerations with business organizations creating trade partnerships based on transparency, respect and seeks to uphold greater equity in international standards. Finnish coffee culture is therefore based on partnerships that contribute to sustainable developments and offers better trading conditions(Santos, 2013).Besides the fair-trade concerns, worker welfare is also an important consideration in business. Finland is considered one of the countries that enjoy advanced and comprehensive welfare systems. The welfare system for Finns is designated to guarantee dignity as well as decent living conditions for everybody(Santos, 2013). Comprehensive social insurance for workers is upheld within the country making it a suitable working environment.

Although the coffee culture in Finland allows for setting up a coffee shop in most regions across the country, identification of strategic business locations is important. Expansion of the for Marvin and Smith's coffee shop business into Helsinki, the capital of city of Finland,is subject to target the ever growing market scene for coffee business in the city. The huge population of the city serves as a potential market for the business (Hill, 2008). Also, with the development structure and infrastructure in the capital city, supplier deliveries from East Africa are subject to remain efficient. Although supplier delivery durations from East Africa varies by approximately two hours as compared to London, the transport networks to Finland remains efficient translating into efficient service delivery to the targeted city consumers.

Market Mix

A marketing mix serves as a model defining market options while introducing a new product or service into the market. It defines the way in which a new product or service is introduced into the market. Even as Marvin and Smith's coffee shop business seeks to expand into a potential consumption location, there is a need to put right products in the right place and time with the right price. Otherwise, getting a single element of the market mix wrong is likely to spell a disaster for the coffee shop business. A workable market mix for Marvin and Smith's coffee shop business is subject to aid a clean mix creation, product development and provides a guide towards improving a business (Khan, 2014). A clean mix creation is realized whenever all the elements of a market mix are compatible therefore forming a strong chain of the bond. Introducing East African Coffee taste in a country whose supply originates from Brazil is considered a new product development and therefore must rely on strong bonds of the elements of the market mix. Compatibility of the elements also proves vital in improving the overall working of the business in a new setting.

Product

Product in a market mix refers to the item sold to consumers. It entails whatever constitutes the menu given to consumers and must deliver the minimum level of performance to keep the other elements on course (Khan, 2014). In the case of Marvin and Smith's coffee shop business expansion to Finland, the product is coffee. While the main retail product for the business is coffee, a fine taste of the coffee product from Gumutindo Coffee, Uganda, and a relaxing environment with an East African feel contributes to the levels of appeal to consumers. Themed evenings and being practical to consumers by providing basic necessities such as power point sockets and also contributes to the appeal of the product.

Price

Price refers to the value put on a product for the consumers. Just like any other element of the market mix, pricing also requires due attention because it has a significant impact on the rest of the activities for the business. Decision making on everything that a consumer has to give up to acquire a product is considered a competitive weapon that helps businesses exploit market opportunities(Khan, 2014). It must, however, be consistent with other elements of the market mix since it shapes the perception of consumers about a product. Marvin and Smith's coffee shop is subject to settle on a competitive market price for coffee products in Finland as a way of realizing business growth. Too low prices are subject to limit business growth while too high prices could affect the demand for the product(Khan, 2014). Factors considered while setting up the price for a product include the costs of production, the impression to consumers and the role of pricing in sales and promotion.

Promotion

Promotion refers to strategic plans for communicating with consumers. It entails all the activities undertaken to ensure that the product is known to target consumers. Promotion raises awareness of a product to targeted consumers. Through different mediums including advertisements, social media platforms, press reports, words of mouth and commissions Marvin and Smith's business would intend to reach the target market as a way of creating awareness (Baker, 2016). Based on the unique taste of the East African coffee in a region dominated by Brazilian coffee taste, Marvin and Smith's businesscould bank on the unique test to promote the product. The unique taste in the market could also be used to differentiate the product and make it stand out from the rest of the products. Effective promotions enhance sales and create and fosters brand loyalty.

Place

Location for setting up a business is an important factor for the success of the business. A place for setting up a coffee shop is determined by a variety of factors including consumers, accessibility, and security (Hill, 2008). A coffee shop requires a densely populated setting as a way of getting large numbers of consumers. Having identified Helsinki as the place for locating Marvin and Smith's coffee shop business, identification of an eye-catching setting that makes it easy for consumers to access. A coffee shop requires a spacious setting in which consumers can move in with families or friends and still develop a great feeling for the environment. Besides accessibility to the shop, it should have adequate space for parking as well as secure for consumers.

Key Factors to Consider During the Business Expansion

The business expansion comes along with growth and development opportunities for a business or an organization but also faces a number of challenges. Making a step into an international market calls for consideration of lots of variables including differences in language and cultural barriers. As Marvin and Smith's coffee shop business gets into Finland, there is a need to understand the coffee culture and lifestyle for Finns, understand their potential customers, how quick the coffee shop needs to expand in the new setting as well as how much resources would be invested in the business. Adapting to a new environment and immediately setting a go marketing strategy that would see the coffee shop business succeed in a competitive environment are also important factors to consider(Hill, 2008). Human resource management and marketing, therefore, become important considerations for an effective evolution to face realities in new market settings.

Human Resource Management

Realizing a competitive advantage in a new market is among the important considerations that business owners must put in place. For instance, Finland is a country with a deep culture of coffee beverage implying that a breakthrough in the market would require proper execution of established strategic approaches. A business venturing into the country's deep culture, therefore, require a competent Human Resource Management (HRM) team to manage people in the business to help gain competitive advantages (Noe et al., 2017). A working HRM team ensures that employee performance in the business setting is maximized in accordance withthe employer's strategic objectives. Depending on backgrounds, people often have different opinions, priorities, goals, and beliefs that must be managed for appropriate productivity in business locations. Aligning employee objectives to strategic objectives set by employers is also considered a significant move towards ensuring that the staff is much more committed to service delivery compared to competitors. HRM ensures that only competent persons are engaged

Besides the traditional functions of Human Resource Management's role in ensuring competency among staff, active involvement in customer service welfare is also important for the progress and development of the coffee shop business. Consumer engagement is an important element of realizing business growth and progress (Noe et al., 2017). Since Marvin and Smith's coffee shop business operates in a business environment in which it serves a range of consumers with different concerns, addressing consumer concerns become an issue of great concern. The HRM will ensure that services are aligned to meet consumer needs.

Marketing

Marvin and Smith's coffee shop business expands into a competitive setting in which aggressive marketing of the product must be done. Unless awareness is created about the product, penetration of the business into the beverage industry is subject to be a challenge even though the duct stands as the best. Providing consumers with an exclusive preview of the coffee brand that Marvin and Smith's coffee shop serves is considered an important step towards gaining consumer loyalty (Baker, 2016). An exclusive preview for the product could include invitations to let coffee consumers feel a taste of East African coffee product. Consumer loyalty is subject to be realized by engaging consumers through sampling invitation.

Advertisements through different mediums including social media platforms, fliers, and television and magazine adverts is also an important form of marketing for the business. Adverts in different platforms are subject to create awaren...