Key Consumer Benefit: Target consumer will know that CW’s coffee is the best. Consumer who come to the store and buy coffee will see that along with coffee, Coffee World serves a wide variety of delicious and unique food that customer can enjoy from breakfast to dinner.
Support claims statement: Coffee World strives to be leader in prestigious coffee chain shop. Target consumers will be assured by knowing that every CW shop is the best in the town and the world meets here.
Appeal: CW will use the rational and humor mixed appeal to create awareness. The rational appeal will inform consumers of CW’s great coffee and the humor appeal will help target audience to remember the ads.
Source Characteristic: CW will not use any famous models/actors to deliver the message. Famous models/actors might overshadow the product. Marketers need to focus completely on the great features of Coffee World.
Communication Strategy
Marketers can use a combination of ideas. They can use demonstration and humor strategy. Commercials will demonstrate various features and benefits of CW’s different range of products. On the other hand, commercials or print ads will be funny in such a way that consumer will remember.
Media should cover 85% of the target consumer in one year period with a frequency of at least ten times during the year. A high involvement/feeling FCB planning model required with think-feel-do actions of the customer. Media strategy will use all kind of marketing communication tools to reach media objectives of building psychological and emotional motives.
Integrated Marketing Communications Plan
Marketers will reach 90% of target customer through advertising in TV, big screen and print media. The ad will be simply a black screen with the phrase fading in and out ‘Where the world meets!’. There will be a countdown timer underneath the date counting towards the release date. Brand name will not be attached in the ad. This ad will force consumer to anticipate what it will be. They will talk about this ad with everyone trying to find out what it could be. Ad will be placed and mixed within the popular shows.
Print media ads will be simply a black background with the caption ‘Where the World meets’. Ads will have a smoky coffee cup in the middle and release date will be underneath the coffee cup. This ad will be posted in every print media including transit and bus shelter. The aim of these ads will be to create interest, not to bombard the consumer.
Marketers will run their own column in newspaper or magazines. This will reinforce brand image. In addition, marketer can put the story of Coffee World in newspaper or magazines in such a way that consumer might think it is an article written on Coffee World. ‘Article’ will be place near the front within the first 10 pages of the newspaper or magazine for better visibility. Readers will be more inclined to see and remember it. This transformational creative tactics will appeal to target consumer and support their lifestyles.
Motion picture ads will be able to reach 99% of target market. People watch popular movies not only in theatre or rental, but on the internet too. Feature film ads can reach everyone in the household at least once. These ads will educate consumer that Coffee world is the place where they relax and can chat with their dear and near about their favorite movies.
Marketers will send thousands of ads in the mail to reach at least 35% of target audience with a response rate of 15%. Ad will have all CW’s premium offerings, website information and contact details with customer service hotline number. This ad will cost CW roughly 5,000 euro and 500,000 euro to send to 250,000 households.
Internet is easy and hassle free way to find out information about any product. Marketer can reach at least 90% of target audience through internet marketing. Spanish people heavily depended on internet and have access to the internet in some way.
Marketer will design separate website for Spanish consumer. Spanish home page will have flash intro. Home page will be accessible in four Spanish official languages. Consumer can find information about company, products, support, etc.
Banners and pop-ups will be place on different company’s websites that our target consumer will access frequently. Banner ad will have sliding display uncovering delicious coffee and fresh foods picture with little information. Marketers should not be so hopeful about pop-up ads as they are little trickier. Almost internet user use pop-up blockers in their computer. However, some software are not advanced enough to block pop-ups. CW’s pop-up will be very eye catching and it will direct consumer to the Spanish home page. Marketers can expect at least 5% response from this ad.
CW’ website will have a separate member page where consumer can log in and participate in various activities including promotional campaign. Member will be able to download ring tones, games, wallpapers, and more. They can sign up for prize draw and other promotional activities. We will design ‘Coffee World Toolbar’ that customer can download and it will send anonymously visiting website information to marketers. This information help marketer to target these websites for banner ads and pop-up ads. However, member section is to obtain customer’s information which will help marketers in future.
Evaluate Effectiveness of IMC Plan
Marketers can conduct surveys to find out the effectiveness of IMC campaign though out its execution process. Survey will show the effectiveness of brand awareness program and how well ads in TV, print media and outdoor media work. Marketer will have focus group to identify if the brand image was conveyed the way they wanted to. Website will have feedback option to get members constructive opinion. Website activities such as hits frequency need to be monitored closely. Marketers can hold contest for prize who fill surveys or subscribe to direct mailing list. Marketers can also recognition and recall test to access the effectiveness of print media ads.
Conclusion
Using the wrong MC tools and messages can interfere with the target market and ultimately lead to failure of IMC plan. The IMC plan that is organized and speak with one voice will translate into success.
Appendix
Company Background
Coffee World, an international premium coffee chain, is part of Global Franchise Architects (GFA) and is the first international special coffee brand to expand through a combination of corporate stores and a network of single unit franchisees. In late 1997, GFA launched the first ever Coffee World. Although the international arena is bursting with competition, Coffee World, in short span of time, has distinguished itself and emerged as a market leader due to its unwavering commitment to quality (Coffee World).
Coffee World is truly the place “Where the world meets” (Coffee World).
Proposed Product
Coffee World has invested in sophisticated equipment to roast the finest Arabia beans to create rich brews. The company places a lot of emphasis to prepare its iced and ice-blended coffees. Quality experts and roasting plant partners determine how the coffee will taste. Coffee World always look for franchise partner in overseas to open premium specialty coffee house to offer a comprehensive range of hot and iced coffees to its foreign customers. Coffee houses in international market are designed to give the look and feel of luxurious and comfortable living rooms (Coffee World).
Consideration for Overseas Expansion
When considering the Spanish market, Coffee World must consider the large population and the amount of travelers flocking in the main cities. Spain has a potential market for luxurious coffee house. Spaniards like socializing with others outside of the house and spend time in bar, café or restaurants. They are social bunch and definite coffee consumers. This is a great opportunity for Coffee World to open several outlets in major cities of Spain.
Macro Environmental Factors Analysis
Macro environmental factors analysis is important when marketers consider the external nature of the domestic market as well as the nature of the international marketing environment. Macro environmental factors analysis considers how easy it will be to move from domestic to international marketing (International Marketing Environment).
Political and Legal Analysis
Coffee World’s marketers need to find out:
- If there is any historical relationship between countries that might benefit or hinder international marketing.
- How political and legal factors differ from Coffee World’s home market.
- The influence of the European Union for trading in Spain. Analysis of the European Union and its authority over Spanish laws and regulations.
- Laws and regulation that Coffee World will encounter during the business in Spain.
- The political views of foreign competition in Spain (International Marketing Environment).
Parliamentary democracy has been restored after the death of General Franco in 1975 and parliamentary monarchy was established in 1978. A part of rebelian military force tried to impose a military-backed government in 1981, but King Juan Carlos used his personal authority to put down the bloodless coup attempt. Gonzalez government ruled Spain for 13 years since 1982. Spain joined NATO and EU during this period. Aznar government liberalized the economy with privatization program, labor market reformation, decentralization, integration into European institutions and monetary union since 1996. Aznar government took a leadership role in military action against terrorism after September 11, 2001. After the devastating attack on Madrid in 2004, Zapatero government immediately withdrew Spanish forces from Iraq, but continued to support construction effort in Iraq, Afganistan and Haiti. However, President Zapatero announced that he will not run for re-election in 2012 ([Background Note: Spain).
Overall Spain is politically stable and does not have any significant history of expropriation or interference with foreign investor (Expat inveting). Thus Coffee World will have a safe political environment to run the business in Spain.
Coffee World purchases their beans from number of countries and most of the countries have less political stability. Thus taxes fluctuate time to time. Coffee World has developed a special arrangement with farmers in china for high quality beans supply. However, Spain can trade freely between any countries in the European Union. That is why, Coffee World will be able to source the best prices for cups, napkins, bags, sugar, stir sticks, etc (Coffee in Spain).
The main purpose of the highly regulated employment law in Spain is to protect an employee’s rights. Jobs are grouped into different categories followed by different set of regulations. Labor laws are in favor of Coffee World as there is no significant noteworthy difference between Swiss and Spanish labor law (Employment law in Spain).
The law on the prevention of occupational risks and its corresponding regulations came into effect in June 2006. This law integrates management structure of companies and worker participation. Coffee World will have to create working environment that does not involve health hazards in Spain. It will require extra investment, but implementing this law at work will ensure productivity (Health and Safety at work in Spain: an overview).
Economic Analysis
Spain had to fulfill some criteria to join EU in January 1986. They had to open economy to trade and investment, embrace industrial base, revise economic policy, improve infrastructure to conform to EU guideline. These measures in turn boost up the economy and unemployment rate fell down from 23% in 1986 to 8% in mid 2007. The adoption of the euro in 2002 helped economy grow rapidly as interest rates reduced dramatically. Spanish firms started to invest in banking, insurance, road construction, solar power, food, etc. Strong Euro encouraged Spanish firms to investment in foreign market. However global financial crisis led Spain to a recession in second quarter of 2008. Unemployment rate was more than 20% and housing sales declined dramatically in the first quarter of 2010. The Zapatero government introduced several fiscal and monetary measures to combat recession. These measures include high spending on public works, unemployment benefits, reduced government employees salaries, froze pension funds and suspended public works. The measures were designed to reduce the deficit to 7% of GDP in 2011 and to below 3% by 2013. Government also issued a decree in mid 2010 to reduce rigidity in hiring and firing workers (Background Note: Spain).
The economic growth has been positive since the beginning of 2011. Income may fall and consumer confidence in products may decrease in the periods of positive growth. These factors may help Coffee World to make some profit. Although income levels remained stable, but price levels have been on the increase. Therefore purchasing power has been declined in 2011. This factor is not in favor of Coffee World. Consumers will think twice to spend four euro to buy a fancy coffee. Considering these economic factors Coffee World need to open outlets in those areas where people have high disposable income. Suitable areas can be densely populated white-collar areas and tourist spots (Explore economies: Spain).
Spain has been experiencing sky-rocking unemployment rate (21.3%) since global recession. This rate posed an obvious consumption threat for Coffee World. Youth are the most affected with unemployment rates of a whopping 40%. Employed young people tend to have more disposable income and they are very prospective customers for Coffee World (Spain fact sheet).
Low interest rate (1.25%) will encourage more investment in Spain. It’s a positive factor for Coffee World’s business in Spanish market. This low rate will also help unemployment rate and mortgage customer and the Spanish economy as a whole (Spain tax rates).
National taxes are made up of direct taxes on both corporate and personal income, assets, inheritance and gift taxes. Some other indirect taxes also payable, such as, value added Tax (VAT), transfer tax, stamp duty, excise and custom duty. Customer has to pay 16% standard rate for most products. However, a reduced 7% rate of VAT is applicable for basic foods, medial and pharmaceutical products (Financial services to Spain). High tax rates in Spain will have a direct impact on disposable income of Coffee World’s consumers and trying out new fancy Coffee might not be top priority for the average consumer. Coffee World will have to pay 30% standard corporate tax in Spain. As a non –resident company, Coffee World will be taxed on both income and gains of a brand carrying on a trade in Spain (Spain tax rates).
Due to high inflation (2.6%) Coffee World might need to increase price slightly (Spain fact sheet). Increasing them too much might have a negative impact on Coffee World’s business.
Exchange rate will play a critical role in Coffee World’s business in Spain. Since Coffee World has suppliers from various part of the world and some of the country suffers from political and economic instability. Therefore exchange rate can vary greatly time to time.
Competitors in Spain might pose a considerable threat of a price war. Coffee World’s competitors will be Starbucks, Gloria Jean’s coffee, Café Nero, Café vita, Douwe Egberts, Tim Hortons, etc. (List of coffee beverages). Marketers need to position Coffee World strategically in the Spanish market in such a way to counter price war.
Cultural Analysis
Coffee is drunk in Spain in great quantities and rated second after Switzerland in Europe. There are a sheer number of cafes in the country and many of café chains are of Italian origin. Café Commercial is one of the oldest cafés in the central region of Madrid. The Spanish Coffee Federation estimated in 2007 that each person drinks 599 cups of coffee every year in Spain. [Coffee in Spain]
Coffee culture strives in Spain so well that a café is not just a rest stop where one orders a coffee and snacks for the simple purpose of refueling. Coffee shop is a place where customer watch passers-by, read newspaper, think, gossip, or even date. [Coffee in Spain]
Coffee World will be able to tap into the Spanish coffee culture by offering a comprehensive rage of hot and iced coffees and the feel of luxurious, inviting and comfortable living room environment. The outlets have comfortable settings consist of luxurious couches, newspapers and magazines and upbeat music. Coffee World will offer in Spain a range of Spanish coffees, specially café solo, café doble, café con leche, café cortado, café sombra, café manchada, carajillo, etc. Coffee World will emphasis on creating close social bands and nexus of neighborhood (Coffee in Spain).
Food products offered by Coffee World in Spain must be registered with the health authorities and must conform with Spanish market (Austrade). Spanish are now very health conscious just like Switzerland. Coffee World will offer a fat-free selection and advertise skim milk, soya milk, etc to meet Spanish people health requirements (Coffee World).
Coffee World’s targeted market is comprised of young and middle-aged people. However, Spanish population is getting older and birth rate is very low (World population aging). Marketer can make sure that population grows with Coffee World consistently.
Just like coffee Spaniards are also healthy drinker of beer and red wine. Alcoholic beverages might pose a threat to Coffee World’s business as it doesn’t serve beer or red wine. Spaniards like to socialize with friends in the bar and bar serves coffee too (Angulo, n.d.). Coffee World can offer regional wine and beer. The outlets can be designed in such a way that people can sit at bar. This can be an alternative option to bring more customers during the later part of the day. However, marketer need to consider the changes that is required to renovate the original interior design of Coffee World.
Technological Analysis
Capsule system coffee machines are widely used in Spain. Spaniard can brew high quality coffee with the help of this machine at home. Research shows that more than 10% of Spanish use this machine at home. It can be a huge threat to Coffee World’s business (expansion.com). However, Coffee World can overcome this threat by providing more convenient, inviting, relaxing and luxurious living room environment which might be difficult to create at home.
Coffee World will require investing heavily for high tech equipments, cash registers, computers and internet in Spain. Top-notch coffee making machine will ensure high quality of coffee. Computers and cash registers will ensure the productivity, time efficiency and work quality. These high tech equipments will in turn ensure the customer satisfaction in Spain. Other famous international café chains (Starbucks, Gloria Jeans, etc) are already using these technologies in Spain (New technologies in Spain).
Marketers need to undergo research and development to improve accessibility of its website in such a way that customer participate in citizen journalism, share their ideas and constant feedback. To cope with sever competition in Spain; marketer must use the upgraded software to improve accessibility of the website. Website should be accessible in all four spoke languages in Spain. Marketers need to consider the content and look of the web pages. It might be good idea if look and contents of web page suits Spanish culture and different than home country’s web pages. As part of the integrated marketing communication in Spain marketers need to use social networking sites (facebook, Twitter, Linkedin or Tuenti) in such a way that young people join these sites to create additional brand awareness (New technologies in Spain).
Other Environmental Factors Analysis
Coffee World must abide the law of packaging and disposal process as Spain is becoming more environmental friendly. Any possible items used by Coffee World in Spain should be made from recycled products to reduce pollution and waste disposing process must be very efficient to keep the outlet clean. Coffee World should have regular touch with environmental pressure groups, such as, Greenpeace and Friends of the Earth. Marketer need to design outlets displaying ‘free trade’ image around the store to send the message to Spaniards that the outlets are eco-friendly. Marketers also need to aware of product certification, labeling, packaging, insurance, method of quoting and payments in Spain (Doing business in Spain).
Coffee World’s marketers will be blessed with new commercial cable operators and digital services in Spain. Public TV and radio are run by RTVE and 13 regional TV stations backed by regional governments. Digital Plus offer multi channel TV network. Internet users are growing fast in Spain. An estimation by internetworldstats in June 2010 shows that 29.1 million Spaniards use internet and more than 11 million people use facebook (Spain country profile). After the death of Dictator Franco, press and other forms of the media have complete freedom to comment on all political, cultural, and social issues (Press reference).
Entry Mode
Coffee World has number of different choices to enter into Spanish market. The various alternative market entry modes depend on several factors, such as, level of international marketing experience, market conditions and resources, etc. Czinkota et al. (2008) identified some entry modes, such as, exporting, licensing, Franchising, Joint ventures, wholly owned subsidiaries, strategic alliance, etc. (Czinkota et al., 2008).
Exporting is the entry strategy of selling the goods or services in the foreign market (Dickens, 2007). The advantages of exporting are low risk, low cost entry, learning opportunity, etc (Czinkota et al., 2008). Licensing is an agreement provided to a foreign firm, for the rights to manufacture a proprietor’s product for a fixed term in a specific market (Fletcher & Brown, 2005). Licensing is considered a relatively low cost, low risk and easy entry mode to new markets (Czinkota et al., 2008). Through strategic alliances a firm can fully utilize the expertise of its local partner to ensure smooth operation and distribution of the brand in the international market (Griffin & Paustay, 2007).
Franchising is basically a special form of licensing. In franchising, the franchisor grants the franchisee the right to do business in a specified manner. The franchisee has the right in the form of selling the franchisor’s products, trademark, production, preparation and marketing techniques (Czinkota et al., 2008). Franchising is an under explored entry mode in international markets, but it has been widely used as a rapid method of expansion within major developed markets in North America and Western Europe, most notably by fast food chains, consumer service businesses such as hotel or car rental, and business services. McDonalds, Dominos Pizza, Coffee Republic, etc are the biggest example of franchisor worldwide. These companies have strict rules on products, image, brand and marketing techniques. Franchising is low cost and low risk way to enter into international market (Czinkota et al., 2008).
Joint ventures refer to the business where two or more independent firms jointly establish a firm. It requires investment in international market and that is why it also referred as foreign direct investment (FDI) (Czinkota et al., 2008).
Wholly owned subsidiaries can be established in two ways: To takeover of an existing company in overseas market Or to establish a firm in the international market from scratch. This is also a form of foreign direct investment (Czinkota et al., 2008).
The key trade-off between the alternative modes of market entry is between the level of marketing control and the level of investment risk. Low intensity modes of entry minimize risk, but decrease marketing control. However, higher intensity modes of entry maximize risk, but increase the level of marketing control. The level of marketing control comes from involvement and involvement comes only from investment (Fletcher & Brown, 2005).
Both internal and external environmental factors influence market entry modes. The external factors such as demographics, economic, natural, technological, political and cultural, etc are the larger forces beyond the company's control. These factors will affect choice or market entry. Coffee World must decide carefully the composition of the company structure in the Spanish market and the appropriate division of Swiss and Spanish management. This is important for a delicate balance of consistency and change in the Spanish market (Fletcher & Brown, 2005).
Entry Mode of Coffee World in Spain
Coffee World (brand of Global Franchise Architects (GFA)) has been using franchising as mode of market entry since 1997. Thus, GFA will look for highly motivated organizations or entrepreneurs as franchisee for Coffee World in Spanish market. The master franchisee must be capable of opening multiple outlets in the first 5 years in Spain. To become a GFA franchisee, one needs to fulfill 3 C’s, that is, Capital, commitment and competence. GFA has developed a comprehensive Quality Management System and world class training curriculum to develop managers for franchisee. GFA will provide ongoing support to the franchisee in Spain to assure outlets are run efficiently with a continuous focus on the customer experience while promoting business by marketing the brand effectively. Above all, GFA conduct market study, site evaluation, store design and construction, supply chain, recruitment, research and development, etc to help franchisee in Spain. The franchisee will pay a standard international franchisee fees (Table 1), royalty fees and marketing fees to operate business in Spain.
Table 1: Coffee World
Competitor Analysis
There are some Italian origin café chains in major cities around Spain. There are also notable number of locally established cafes that have been in the business for more than hundred years. Café commercial is one of them has three separate cafes, Café Central, Café Munich and Café Suizo. Café Commercial has been doing business since 1880 and modernized themselves with internet and old fashioned classic design (Coffee in Spain).
Cafeteria Glorieta in Valencia is another oldest and most well known cafe in Spain. The café has been serving customers since 1929 with chocolate-filled croissants and other exquisite pastries (Coffee in Spain).
Starbucks has been dominating Spanish luxurious coffee market for long time. The company entered Spanish market in 2002 with two stores in Madrid. Starbucks has grown tremendously with a loyal customer base and has 75 outlets in Spain located in Madrid, Barcelona, Valencia and Sevilla (Starbucks in Spain).
Coffee World’s competitors in Spain are Starbucks, Jamaica Coffee Shop, II Caffe di Roma (Lavazza), Plantacioones de Origne care Rovi, Cafe & Te, Cafe Caracas, L'Espresso (Illy), Cafes Valiente, Natural Blend and Cafe de Indias (List of coffee beverages). These companies have more than 500 outlets around the Spain. There will be a fierce competition against Coffee World in Spain. Competition is growing steadily as the industry grows. These companies including Starbucks are trying to gain advantage by price cuts, aggressive expansion of products, significant product modification, launching a rival product, etc. (Spain: getting serious over coffee bars).
Marketing Mix
Product
- Premium Product: Coffee World sources the highest quality coffees from different parts of the world, especially from china. Coffee World has invested in sophisticated equipments to roast the finest Arabia beans to create rich brews. The company places a lot of emphasis to prepare its iced and ice-blended coffees (Coffee World).
- Product Differentiation: Due to fierce competition worldwide, especially in the Spanish market, Coffee World wants to achieve long lasting and profitable competitive advantage by differentiating its coffee products. That is why; Coffee World has a wide range of products for different tastes of consumers.
- Brand image: The Coffee World’s brand image is “an ambassador” that offers high quality coffee products with Swiss coffee style. Coffee shops are everywhere and competition is sky rocking high. Coffee World wants to grow as a global competitor with its unique approach and style. Careful selection of high quality Arabian beans, unique roasting method, wide range of unique recipes, comfortable and luxurious atmosphere, highly skilled barista make Coffee World one of the World’s premier coffee brands (Coffee World).
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Fresh Food: Along with coffee, Coffee World serves a wide variety of delicious and unique food that customer can enjoy from breakfast to dinner. Customer can treat themselves with something sweet food, such as, muffins, cakes, brownies, pastries and cookies. Coffee World have created a range of healthy natural products, such as, skinny blueberry muffin, muesli break, etc. Customer can enjoy an appetising meal with exclusive sandwiches with a light fresh salad. Coffee World also offers dessert or a mid-afternoon snack. All these fresh foods are available at Coffee World to attract different range of customers.
Price
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Coffee World follows ‘premium pricing’ strategy and use a high price because of the product uniqueness, luxuries such as attractive living room style outlet, trained baristas, premium product quality, strong brand image, etc. In Spain customer will pay about 2 euro for a regular coffee and 3-4 euro for a specialty one.
Place
- Coffee World is a chain coffee shop retailer in various countries including USA, Asian and European countries. The company has a strong personal relationship with the consumer. Products are promoted and merchandised by Coffee World directly and give the final selling price to the product (Place, distribution, channel or intermediary).
When marketers consider the nature of products in global market, they must consider ‘standardization’ or ‘adaptation’ of the product. Marketers often market the same, standard product in an international market. Sometimes they localize and adapt the product so that it pleases local tastes. International uniformity gives the customer convenience of buying same product in any international market. Standardization reinforces positive consumer perceptions of the product. Another benefit of standardization is economies of scale. Company benefits from the advantages associated with manufacturing in bulk. Some other benefits associate with economies of scale includes marketing operation costs, lower costs of investment, improved research and development. Standardization can improve product quality also. However, standardization gives the opportunity for a competitor to design tailor-made, differentiated or branded products that meets the needs of local market. It can be vulnerable for marketers. In some international markets (USA or European Union), marketers are forced to localize the product to avoid trade barriers. Therefore, marketers need to identify if they want to standardize whole product, or customer service, product support, pricing marketing communication and distribution channels (Products and International Marketing, n.d.).
Promotion
- Marketers require to consider some key issues when promoting Coffee World in Spanish market. There is a rich variety of Spanish media in Coffee World’s target market. Marketers need to consider local resources (for example, sales people or advertising expertise) for sales campaign. Spain is a multicultural country and Islam is the second religion. Marketers need to very careful about specific content or references to be made in advert. For example, showing naked legs in adverts may not be acceptable by Muslim community in Spain (International marketing Communication).
- Marketers must consider cultural issues when communicating with target audiences in different cultures in Spain. Spain has four official languages and it might be a challenge for marketers. Using only one language can be a disaster for marketers. Language choice may affect branding choices and the name of products. Dress and appearance choices can have impact on business. Spanish Customers are normally served by elegant waiters dressed in black tie (International marketing communication).
- Personal selling or sales force will not be a good idea in Spanish market as wages tend to be very high. Coffee World will have to set up a separate department for sales enquiries, making quotations, sending out product literature, etc. Additional investment will be required to recruit, motivate, organize and train local sales force (International marketing communication).
- Since literacy level is very high in Spain, marketer can use low or high visual campaign in press advert. However, marketers are required to consider various factors for press or other media adverts. Target market, languages, types TV or Radio channels, preferable TV channels for the target segments, suitable poster locations, behavior of the target population in cinema, etc (International marketing communication).
- Coffee World will have online presence, a separate website for Spanish target market to improve communication capabilities and provide information. Spanish website will allow customer a place to post and share ideas about Coffee World. Marketer will use web-based marketing using the domestic site.
- Marketer can also consider other potential medias, such as, sponsorship (for example, Spanish sporting events), trade missions, international or domestic tradeshows, public relations, etc. (International marketing communication). Marketers should also consider the integrated marketing communication to convey the message consistently.
- Coffee World will not use any price-offs promotion because it might lower the brand image.
Communication Strategy
TV will create substantial interest and communicate CW’s unique selling points to the target consumer. TV will reach 85% of consumers. Direct mail will be used to send attractive flyers with campaign theme and it will reach 30% of target market.
Full page ads in newspaper, magazines or other print media will create brand attitude and purchase intention. These might create desire to switch brand. Marketers will try to reach 20-25% target consumers with these ads.
Marketers will use outdoor media, such as, big billboard, transit, bus shelters. Transit ads will help CW to reach 65% of target audience and placing ads in bus shelter can reach 50% of target customer. The outdoor media will be only city based.
CW’s can reach 90% of target audience through Internet. Marketers can use Internet through email, banners, eye catching pop-ups, social networking sites, yellow journalism, etc.
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