SMALL BUSINESS MANAGEMENT: CAFEPOD CASE STUDY

SMALL BUSINESS MANAGEMENT

INTRODUCTION

In this assignment will provide a report on the organization known as Cafepod that usually deals and transact in the deals of coffee products, structure along with its objective, mission and vision are stated in this assignment, Further in this assignment the organization’s market and its competitor analysis will be done and evaluated. Lastly, the company’s Pandemic effects will be taken into considerations and recommendations concerning to overcome its operational lag will be made.

BUSINESS PLAN OF CAFEPOD

CAFEPOD

This organization has been founded in 2011 as an autonomous coffee-making company. They are the coffee makers with offers premium quality of coffee to its enthusiastic and adventurous customer audience and allow them to taste it home. They aspire and aim to operate effectively to satisfy and enhance their customer's life process. They are influenced by the London coffee they want to consume – imagination, excitement, and limits. CAFEPOD was created by Brent Hadfield and Peter Grainger, who are businessmen and both attempted to make people happy and give them a boost in daily activity Anderson, 2017).

VISION AND MISSION OF THE COMPANY AND ITS BUSINESS STRATEGY

The mission of this organization is to inspire people to do well through the excellent quality of coffee which the corporation in concern manufactures. They believe in the concept of Value in, value out. No declaration will ever be truer than those in the coffee industry. Throughout the planning of their coffees, they are excruciating about the least aspect since this little information are all. They declared themselves specialists in the coffee capsules and that's what they do. This organization is arranging the coffee for ambitious coffee drinkers with high and departing ambitions. To enhance the productivity of the activity following the demands of customers, the organization targeted towards an enhanced quality of its coffee (Bednarczyk, 2019). 

MARKET ANALYSIS

STP ANALYSIS

Segmentation – it is referred to as the diversification of the business operations and its accessibility according to the diversified needs of the customers. The worldwide global demand for coffee pods and capsules is divided by type of capsules, off-trade and on-trade deliverance channel or network as well as geographically in regions like Europe, middle east, Africa, North America, South America and Pacific-Asia.

Target- The target market for this organization comprises and includes regular coffee consumers, coffee house enthusiasts, and coffee addicted customer base. Another market that it targets will be those who consume whole coffee beans at work or home. Such purchasers demand the cocoa bean to be processed inside the shop for the best way to offer a cup of coffee. The cafe's target market consists of all those who enjoy unique coffee-based drinks flavours and therefore are ready to pay the price to even get their requests (Anderson, 2017).

Positioning - It requires a comprehensive product design for the respective market segment and the creation of a promotional mix within each market segment chosen. The Organization Brand Growth Plan also aims to sustain the success of the product by customers' expectations. In that same sense, the organization, following effective brand recognition, has initiated actions to expand the selection of coffee goods to address customers' expectations (Lopatin et al., 2019).

COMPETITOR ANALYSIS

Nespresso and Tassimo coffee are indeed the biggest rivals of the company involved. The competitive advantage of the company depends on the various product portfolios generated by the firm overall these competitors. Conversely, the quality and efficiency of the coffee have managed to make much of the target customers aware of the brand. The company used many creative steps to maintain the quality of its procedures concerning to fulfil and match up with the requirements of customers by enhancing its taste and product. The main adjustments made by the organizations regarding the threat emerging by its competitors, when working in various global markets, depending on the assessment concerning the requirements of customers. Instead, it is the assessment of the customer requirements for powerful flavoured coffee that is the particular idea of Copepod. It has therefore helped the firm gain a high market share in the UK. However, the company involved has promoted restricted expansion in the various areas that have influenced brand building in various world economies and creating a strong and effective market standing there (Bednarczyk, 2019). 

ORGANIZATION AND MANAGEMENT

The management team at Cafepod Ensures the execution in the organization concerning the efficiency of procedures and structures, all the functional operations, discipline, code of conduct along with enforcement with all of the regulations and monitoring of financial and commercial operations. Ensure that the group approach is thoroughly developed in all aspects of the sector, contest conclusions, decisions where necessary and offer financial analyses and recommendations on all daily operations, strategies, goals and operators. The management of the organization always initiates plans and policies to encourage the use of appropriate connectivity strategies to maintain the operational efficiency concerning the requirements for sustainable development (Anderson and Anderson, 2017).

MARKETING PLAN OF CAFEPOD

Product - The Company concerned planned to produce good coffee that is brewed for customers. Fortunately, shifting expectations and consumer demand may influence the capacity of the company involved in maintaining the client base's retention. In this case, a wide selection of coffee choices will be produced by Cafepod (Soraite, 2016).

Price – Cafepod implements pricing strategies that are concerned with the fair pricing strategy for its customers. The individuals that are willing to pay a premium amount to satisfy their need are asked and approached for that only, and customers that can afford for the basic can go for the product of the affordable price that too with efficient technology.

Place - The worldwide global demand for coffee pods and capsules is divided by type of capsules, off-trade and on-trade deliverance channel or network as well as geographically in regions like Europe, Middle East, Africa, North America, South America and Pacific-Asia.

Promotion - Researches have claimed that the approaches of social networks are well-coordinated towards making the customer audience aware of the product developments undertaken by Cafepod In this case, Cafepod has taken relevant action to establish plans to initiate its product promotion through social networking and digital media platforms with a purpose to reach out the target customer audiences and make them aware of the coffee products they produce (Soraite, 2016).

FINANCIAL ANALYSIS CONCERNING THE CAUSE OF COVID-19

As during the pandemic situation the entire globe was struggling for the cause Cafepod was identified with goof financial strength through its revenue as it recognized the requirements of the customers and made coffee pods and capsules available and accessible by sitting at homes also.

As when the occurrence of COVID-19 contributed to the absolute lockout for several days worldwide, the demand for instant coffee and capsule had increased in highly liquid regions like North America and Europe. When most of the coffee stores remained locked, coffee drinkers around the world expressed their interest in coffee pods and capsule for immediate coffee drinks inside their own homes to enhance the taste and quality of coffee in their own homes. Furthermore, mostly during disease outbreak era, coffee pods and capsules were enhanced dramatically across online platforms.

The worldwide demand for capsules and coffee pods requires profits from capsule and pods. In the report on Trade and Off Trade, the consumer research component is considered. The off-trade section is also sub-divided into supermarkets, convenience shops, internet shopping as well as other retail outlets. The research also encompasses industry sales in the largest North American, European, Asian-Pacific as well as other areas in the world.  As the market demand for coffee pods and capsules increases, it was predicted that during the projection time-frame, the number of individual brand players in the market will expand. However, the economic and environmental deprivation of instant coffee and capsules in their wrapping and packaging was destructing the region’s growth performance. So, concerning that many new applicants developed innovative and safe products and solutions (Guido et al., 2020).

TOWS ANALYSIS

PIVOT STRATEGY

Under this strategy, the company will be provided with the certain recommendation that will cover the weakness or the operational lag that was faced by this organization due to the widespread of the covid-19 pandemic

EXPANSION IN OVERSEAS MARKETS

Copepod would make business growth around 3 and five years simpler for the organization. The growth in foreign markets will allow the company to sustain the sector. The agency involved has faced problems related to the small growth of the business in numerous areas. It also influenced the organization's capacity to raise understanding of the existing brand offerings for many customers. Concerning to increase and retain its customers' interest throughout their respective markets, mergers and acquisitions would help the company interested in forming alliances with the global product or brand (Osano, 2019).

MARKET PENETRATION

During this point, the company should use market penetration tactics to increase customer knowledge of relevant product proposals. It helps the company aimed in accomplishing strong relationship with the customers and further strengthens its popularity in the market. The company's business expansion campaign will assist the organization in leveraging a range of social media platforms to educate buyers of product ideas and also how the items are distinctive. By leveraging a comprehensive variety of social media platforms, the organization will continue to work efficiently and in alignment with business objectives (Remuzat et al., 2017).

PRODUCT DEVELOPMENT AND DIVERSIFICATION

To meet customers' preferences and expectations, the company should take relevant actions to establish a wide variety of coffee items. Instead, the company involved may take measures against the EPS packaging technologies throughout the productivity of the business processes, besides the existing product manufacturing process. The product diversification would therefore allow the company to gain a strategic edge over its competitors within the industry. The company's latest product range should comprise of solid flavorful coffee (Desmarchelier et al., 2018).

ENHANCEMENT IN THE PREMISES

To satisfy the demands of local and foreign customers, the expansion of accommodations and storage facility is expected to benefit the organization. By initiating comparison the plans for the organization regarding the growth in the overseas economies might be encouraged by relocating production and storage units within a substantially greater space, thus allowing the transportation and logistics operations to operate smoothly. An organization should continue the productivity of its operations to satisfy the increasing demand and requirements s of customers will take appropriate measures only for the expansion of its accommodation and organizational premises (Chesbrough, 2020).

CONCLUSION

This assignment has provided a proper report on the organization known as Cafepod that usually deals and transact in the deals of coffee goods and products, structure along with its objective, mission and vision are stated in this assignment, further, this assignment has also discussed the organization’s market and its competitor analysis. Lastly, the company's Pandemic effects had been taken into considerations and recommendations concerning to overcome its operational lag has been suggested successfully.

REFERENCES

1. Bednarczyk, A. (2019). A project introducing innovations in a coffee industry company (Doctoral dissertation, Instytut Technik Wytwarzania).

2. Anderson, E.T. and Anderson, E. (2017). Keurig: From David to Goliath: The Challenge of Gaining and Maintaining Marketplace Leadership. Kellogg School of Management Cases.

3. Guido, Z., Knudson, C. and Rhiney, K. (2020). Will COVID-19 be one shock too many for smallholder coffee livelihoods?. World Development, 136, p.105172.

4. Remuzat, C., Dorey, J., Cristeau, O., Ionescu, D., Radière, G. and Toumi, M. (2017). Key drivers for market penetration of biosimilars in Europe. Journal of market access & health policy, 5(1), p.1272308.

5. Desmarchelier, B., Regis, P.J. and Salike, N. (2018). Product space and the development of nations: A model of product diversification. Journal of Economic Behavior & Organization, 145, pp.34-51.

6. Osano, H.M. (2019). The global expansion of SMEs: the role of global market strategy for Kenyan SMEs. Journal of Innovation and Entrepreneurship, 8(1), pp.1-31.

7. Chesbrough, H. (2020). To recover faster from Covid-19, open up: Managerial implications from an open innovation perspective. Industrial Marketing Management, 88, pp.410-413.

8. Lopatin, V.A., Mukhin, K.Y., Seryshev, R.V., Trifonov, P.V. and Smirnov, V.V. (2019). Increasing the level of STP in information processing. International Journal of Engineering and Technology Innovation, 8(7), pp.583-588.

9. Soraite, M. (2016). Marketing mix theoretical aspects. International Journal of Research-Granthaalayah, 4(6), pp.25-37.