MK400 Agribusiness Marketing Report 2 Sample
Assignment Brief
You are required to finalise your marketing plan by completing the components 1-3highlighted and present your completed marketing plan.
1. Set your goals and objectives
Once there is clarity surrounding the business and its positioning, goals can be established. First, think long-term and specify the main business goals, e.g. size of the agribusiness, expansion plans or profit figures. Then, develop immediate objectives, e.g., whether it’s to establish the business in the market or to increase sales or customers.
2. Outline marketing strategies
Once goals and objectives have been specified, analyse short-term business objectives and identify the marketing activity, process or price that will help achieve the marketing objectives. Your marketing strategy could include;
Product/Service strategy
Pricing strategy
Position (place) strategy
Promotion strategy
People strategy
Process strategy
When choosing marketing activities, choose activities that suit the agribusiness business and targeted customers. For example, newspaper advertising is not advisable if the target market is primarily young adults who probably never read a newspaper but use social media as their primary source of information about products and services.
It is often helpful to choose multiple media that complement each other, to help with messaging. For example, advertising on local radio, as well as setting up social media channels and introducing a low-cost pricing strategy for first-time buyers might work well together. When used together, these strategies start to complement each other and reach a broader market.
3. Set the marketing budget
Knowing how much is available to spend on marketing and how to spend it is critical to the success of a business. A marketing budget focuses marketing activities on those with the highest likely returns.
When developing the marketing budget, ensure that it focuses on the requirements of current marketing goals. Advertising and promotion can be expensive. Make sure to pick options that will give you the best ‘bang for buck’, while still reaching target customers.
Your final marketing plan should be structured as follows:
• Title page
• Executive summary
• The business
• The market
• The customers
• The industry
• The target market
• The competition
• Marketing objectives
• Marketing strategy
• Marketing budget
• Supporting documents
Please refer to the following Government Websites for guides and templates
Business Queensland. (n.d.). ‘Writing a marketing strategy and plan’. Retrieved from https://www.business.qld.gov.au/running-business/marketing- sales/marketing/strategy-planning/writing-strategy-plan
Business Victoria (n.d.) ‘Marketing plan template’. Retrieved from https://business.vic.gov.au/tools-and-templates/marketing-plan-template
Solution
1. The Business
Introduction to the Business
Dare Espresso is a highly popular “premium” coffee brand. Dare Espresso is committed to providing a sustainable coffee experience to its wide range of targeted audiences. The “coffee products” of this brand are made from a “blend” of Robusta and Arabica beans (dareicedcoffee, 2024). These coffee beans are known for their enriched flavor profiles. In addition, Dare Espresso generally uses fresh milk in its coffee products (dareicedcoffee, 2024). The same enables to enhance the “texture” and “flavor” of its product-offerings. This healthy practice is highly appreciated among the health-conscious consumers at regional level (dareicedcoffee, 2024).
Business and Product Portfolio
The portfolio of this brand includes a “range” of coffee products. These product-offerings are designed to serve different preferences of the consumers (dareicedcoffee, 2024). One of the popular products is “ready-to-drink” Espresso (dareicedcoffee, 2024). It is made from the “signature blend” of Arabica and Robusta beans. It is available in various sizes. “Dare Espresso” also offers specialty coffee products such as “double espressos with zero sugar” and “oat milk-based espressos”. (dareicedcoffee, 2024) These product-offerings are aimed at targeting the consumers with specific “dietary needs” (dareicedcoffee, 2024). The brand is focused on attaining the “eco-conscious consumers” and “health-conscious consumers” (dareicedcoffee, 2024). These consumers value both “sustainability” and “quality” in their coffee choices.
Vision, Mission, and Objectives
Vision
The vision of Dare Espresso is to be a “leader” in the global coffee market. As initially stated, Dare Espresso is recognized for its commitment to “health”, “quality” and “sustainability” (dareicedcoffee, 2024).
Mission
The mission of this brand is to deliver a “premium” coffee experience that aligns with the values of eco-conscious consumers (dareicedcoffee, 2024).
Objectives
The key objectives are as follows
• Initiatives to increase “market share in Australia
• Expansion in the product ranges referring to the shifting preferences of the consumers (dareicedcoffee, 2024).
• Initiatives to enter into the international business environment.
In addition, Dare Espresso aims to reduce its “environmental impact” (dareicedcoffee, 2024). It is expected that adoption of strategic initiatives for exploring “sustainable packaging solutions” and “ethical-sourcing practices” will contribute to reducing “environmental footprint” of Dare Espresso in the coming days.
2. The Market
Market and Industry Analysis
The coffee industry is one of the “fastest-growing sectors” at the global scale. Such growth is driven by “increasing consumption” of coffee (Gosalvitr et al. 2023). Along with this, a significant shift towards “ethically sourced” and “premium” products has shaped the consistent growth of coffee industry sector. Based on the information available at secondary sources, the coffee market is “highly competitive” in Australia (statista, 2024). A wide range of population has become eco-conscious. They are willing to avail healthy sustainable product offerings as also relevant in the context of coffee products. In addition, “brand-specificity” or “brand-loyalty” has become an emerging trend among a significant range of population. This trend has been strongly identified among younger consumers (statista, 2024). These individuals often prioritize “transparency” in the brands they support.
Dare Espresso is highly committed to “sustainability” (dareicedcoffee, 2024). The same can be referred to as a significant strength of Dare Espresso. Even, the “premium quality” of its coffee blends is another important strength of Dare Espresso. Relating to this information, it is significant to state that Dare Espresso focus on offering “health-conscious products” to its wide range of targeted consumers (dareicedcoffee, 2024). This “premium coffee brand” has also encountered several challenges in the context of “limited product range”, “limited geographical reach”, “lack of presence” in international markets etc. Referring to these challenges identified, Dare Espresso needs to adopt necessary initiatives to expand into international markets. The same will contribute to potential business growth of Dare Espresso in the coming days. Apart from that, Dare Espresso must adopt necessary initiatives to expand its existing “product line”. This initiative will maximize its “customer base” to a great extent for university assignment help.
It is essential to emphasize on the key “threats” of Dare Espresso. The main threats experienced by Dare Espresso is “industry rivalry” (i.e. intense competition from the established industry leaders) and changing “preferences” of the consumers.
This is to be included in this context that the “global coffee market” is led by the “United States” in terms of “revenue generation” (statista, 2024). According to the information available at secondary sources, “Brazil” is the “largest producer” of coffee beans (statista, 2024). The growth of coffee industry is supported by innovations. Precisely, innovation has been introduced to coffee processing and product-packaging. Apart from that, various advanced technological innovations have been introduced to know about the “shifting preferences of the consumers”, “market demand” for the eco-friendly products. In addition, “sustainability” has become a key “differentiator” in the competitive coffee market nowadays.
3. The Customers
Target Market
Dare Espresso targets the "professionals" aged in between 25 to 40, "young adults" aged in between 18 to 24 and "older adults" aged 41 and above. These consumers are mainly “urban dwellers" with high "disposable incomes" (Sporchia, Taherzadeh & Caro, 2021). It has been identified that these “eco-conscious consumers” prioritize "health and “sustainability” in their purchasing decisions (Vadakkepatt et al. 2021). Dare Espresso appeals to both male and female consumers. This brand focuses on offering coffee products that serve the wide range of "dietary preferences” and “tastes” of the consumers.
The “target market” can be segmented based on “lifestyle”, “income”, “age” etc. Young adults belonging to the age-group are the “early adopters”. They are open to trying “new products” and “trends”. Professionals aged in between 25 to 40 are enriched with significant “purchasing power”. They tend to express their preferences for “premium products”. The older adults aged 41 and above are more health-conscious. They seek products that align with their “dietary needs” (Gosalvitr et al. 2023). Referring to this information, Dare Espresso can strategize its marketing efforts in order to effectively reach each age group. Precisely, market segmentation can be initiated in this way.
Customer Profiles
In addition to the information stated above, the “targeted customers” for Dare Espresso are “eco-conscious”, “health-conscious” individuals. These individuals prefer to consume coffee multiple times a week (Edelmann, Quiñones-Ruiz & Penker, 2022). In addition, these people are willing to pay more for “premium products”. Precisely, they prioritize “product quality” in line with their “values” (Oliveira et al. 2021). These customers are inclined to avail product from those brands that demonstrate a strong “commitment to sustainability”. Referring to this information, Dare Espresso is one of their favorite choices when it comes to consuming “premium coffee product”. In other words, “strong commitment to sustainability” is another “key selling point” for Dare Espresso (dareicedcoffee, 2024). “Dare Espresso” uses “fresh milk with no added sugar” to appeal the health-conscious consumers (dareicedcoffee, 2024). Along with this, “Dare Espresso” focuses on sustainable product-packaging initiatives. This approach appeals “eco conscious consumers” to a great extent.
The analysis of the target market has claimed the “growing” demand for “health-conscious”, “premium” and “ethically-sourced” coffee (Lee & Bateman, 2021). Referring to the information stated in this report, Dare Espresso is focused on offering “premium” quality, health-conscious and ethically-sourced coffee products. The same has capitalized on its strong market presence significantly.
4. The Industry
Industry Analysis
The global coffee industry is experiencing “consistent” growth. The same is driven by “increasing” consumption of coffee products as stated (Sporchia, Taherzadeh & Caro, 2021). In addition, a wide range of “consumer shifting” towards “ethically sourced” coffee products has been identified (Gatti et al. 2022). In Australia, the coffee market is highly competitive. The current industry players have introduced new “flavors”, “formats”, “sustainable practices” etc. to meet the evolving “consumer demands”. The US leads the global business landscapes in terms of “revenue generation” (statista, 2024). Brazil is the top producer of coffee (statista, 2024). These two countries have contributed to the “global supply chain”.
As per the information stated in this paper, ‘sustainability” is highly important in the coffee industry. The same has instigated the existing brands to adopt “eco-friendly practices” in order to meet the shifting preference of the consumers (Vadakkepatt et al. 2021). In other words, the “rise” of “eco-conscious consumers” is encouraging the brands to adopt more sustainable practices. As initially stated, Dare Espresso is committed to use “100% recycled plastic bottles” to ensure “sustainable eco-friendly product-packaging” (dareicedcoffee, 2024). Precisely, this brand’s focus on “health-conscious products” is well-aligned with the current industry trends.
5. The Target Market
Market Segmentation and Analysis
The target market of Dare Espresso is quite expanded. It has already been stated that the “primary demographic groups” include “professionals” aged 25 to 40, “young adults” aged 18 to 24 and “older adults” aged 41 and above (dareicedcoffee, 2024). In addition, Dare Espresso has targeted both male and female consumers (Tsai et al. 2020). “Dare Espresso” has focused on “urban dwellers” with adequate disposable incomes. It has been identified that these people willing to spend more on “premium products” (Lee & Bateman, 2021). Even, the urban consumers prioritize “health” and “sustainability” in initiating “purchasing decisions”. The “use of 100% recycled plastic bottles” has enabled Dare Espresso to become an “attractive choice” among the eco-conscious consumers.
In this relevance, it is significant to state that the “target market analysis” is based on extensive research into “market trends”, “consumer behavior” and “demographic data”. This research has unveiled the significant importance of “health” and “wellness” in shaping the “purchasing decisions”. In addition, it is important to mention that the growing demand for “eco-friendly products” has instigated the industry leaders to embrace sustainable practices in “product-packaging”. Referring to this information, Dare Espresso must develop effective marketing strategies by understanding the preferences of its target market (Sporchia, Taherzadeh & Caro, 2021).
Customer Behavior and Preferences
Proper understanding of “consumer preferences” can shape overall business growth of Dare Espresso. The target consumers of this brand are frequent coffee drinkers. Such frequent consumption indicates a strong demand for high-quality coffee products (Sporchia, Taherzadeh & Caro, 2021). In addition, these consumers prefer premium products. The same reflects their willingness to pay higher prices for coffee.
Health-conscious consumers often look for products that can complement a “healthy lifestyle” without compromising on taste (Šeremet et al. 2022). Even, a growing trend towards “eco-conscious purchasing behaviors” has been identified. Precisely, the consumers are looking for the products with eco-friendly product-packaging. The “commitment” of Dare Espresso to sustainability by using “100% recycled plastic bottles” has addressed this demand in a proper manner.
6. The Competition
Competitor Analysis
It has been identified that “Dare Espresso” operates in a highly competitive market (statista, 2024). This brand is experiencing tough competition from other industry-players including Nestlé, JAB Holding, Vittoria, Luigi etc (mordorintelligence, 2024). These companies are well-established with strong “brand recognition”, a “loyal customer base”, “extensive resources” etc. Precisely, the “competitive market dynamics” of coffee industry sector is shaped by a mix of both regional and international industry players. It has been identified that these competitors have developed strong “long-standing relationships” with their customers (Alsafra et al. 2022). In addition, these companies have embraced innovation in order to stay competitive. These companies continually launch new products to meet the “changing preferences” of the consumers. Apart from that, effective strategies are often introduced to upgrade their marketing strategies with time.
Competitor Products and Pricing
The competitors of Dare Espresso offer a “diverse range of options” when it comes to “product” and “pricing” strategies. The product-offerings of these brands serve various market segments. Competitors such as Vittoria and Nestlé have extensive “product lines” (mordorintelligence, 2024). Significant variations in “pricing strategies” have been identified. It has been identified that some of the brands focus on “affordability”. In addition, some other brands emphasize on “exclusivity” and “premium quality”. Many competitors have embraced innovation by introducing “organic”, “fair trade” and “functional coffees”. Such initiatives are aimed at attaining the growing demand of the health-conscious and eco- conscious consumers. The role of “brand positioning” is highly significant in shaping business growth of those brands (Lin et al. 2021).
Place and Promotion
Based on the information available at reliable sources, “competitors” in the coffee industry sector have established extensive distribution networks (Guimarães et al. 2022). Well-defined, effective distribution channel must cover both “offline” and “online” domains. It has been identified that the “competitors” have a strong retail presence. The same ensures that “product-offerings” of the “competitors” are easily accessible to the wide range of consumers.
In addition, the competitors adequately invest in developing “promotional strategies”. Relating to this context, it is significant to state that “digital marketing efforts”, “advertising campaigns”, sponsorships etc. some common practices that are employed to boost “brand visibility” (Faizin, Darmansyah & Aulia, 2024). Such initiatives often contribute to drive sales to a great extent. Many competitors also focus on consumer engagement by employing loyalty programs, social media platforms, influencer partnerships etc (Nadeem et al. 2021). These initiatives strategically enable those brands to connect with their targeted audience. In addition, the same contribute to developing “brand loyalty” over the period.
These strategies are highly effective in maintaining the market position. Even, these strategies can maximize potential consumer reach. Last but not the least, Dare Espresso can learn from these strategies employed by its competitors or other industry leaders. It will enable Dare Espresso to enhance its own “promotional” and “distribution” efforts.
7. Marketing Objectives
Setting of clear goals
The “marketing goals” of Dare Espresso include expanding the “product range”, increasing “brand visibility” and exploring “international markets” (Faizin, Darmansyah & Aulia, 2024). This premium coffee brand aims to increase “market share” by 10% in Australia over the next year. In addition, Dare Espresso must introduce at least two new “product lines”. Even, Dare Espresso focus on entering one new international market in the coming days. Apart from that, this brand aims to strengthen its sustainability efforts by reducing its carbon footprint (Garg et al. 2024). “Dare Espresso” has already introduced “eco-conscious packaging solutions” for its coffee-products.
Referring to the information stated, “Dare Espresso” must focus on enhancing its digital presence in order to achieve these goals. “Dare Espresso” needs to engage in “targeted advertising”. In addition, “Dare Espresso” must explore new “promotional channels” in order to reach a wider range of audience (Jacobi et al. 2024). It is expected that Dare Espresso can effectively guide its marketing efforts by setting achievable goals. It is essential to ensure that its strategies are properly aligned with the overall business objectives of Dare Espresso.
8. Marketing Strategy
Product Strategy
It has already been state that the “product strategy” of Dare Espresso focuses on offering “premium coffee” with “eco-friendly packaging”. Precisely, Dare Espresso aims to serve the “health-conscious consumers”. The brand has adopted strategic initiatives to introduce new “product lines” to serve different consumer preferences.
Figure 1: 4P’s of Marketing Mix
(Source: Abedian et al. 2022).
Pricing Strategy
The pricing strategy of Dare Espresso will be “competitive”. Dare Espresso must finalize the “final selling price” of its products a bit high in comparison to the “market price” of the similar products offered by other industry leaders. The same will reflect the “quality” and “sustainability” of its coffee-product offerings (Kesuma, Rusdan & Thahir, 2021).
Place Strategy
The distribution strategy must focus on expanding the presence of Dare Espresso in the “urban” retail locations. Dare Espresso must develop partnerships with eco-friendly retailers (Richey & Ponte, 2021). “Dare Espresso” must adopt strategic practices to ensure adequate availability of its product-offerings in “convenience stores”, “supermarkets” and “coffee shops”.
Promotion Strategy
The promotion strategy must highlight the “commitment” of Dare Espresso towards sustainable practices. The brand must employ “targeted” digital marketing campaigns including “influencer partnerships”, “social media ads” and “content marketing” in order to engage its target audience.
9. Marketing Budget
Marketing Activities
The “marketing budget” must be allocated across several “key activities” including “product development”, “digital marketing” and” market research” (business, 2024). Product development will focus on creating new coffee blends to serve the “emerging consumer trends. Market research will be conducted to identify opportunities for “international expansion”. Even, extensive marketing research will help in gaining valuable insights into the “shifting preferences” of the consumers.
Expected Returns
The expected “return on investment” (ROI) for these “marketing activities” will be measured in terms of increased “brand visibility”, “market share” and “sales” (business, 2024). It is expected that the “valuable insights” gained from marketing research will contribute to developing effective marketing strategies in the coming days. This strategic practice will enable Dare Espresso to enter new markets at the international level.
Budget Allocation
The budget allocation reflects the priorities of Dare Espresso. In addition, this ‘budget allocation” will emphasize on the areas where Dare Espresso expects to ensure the “highest returns”. The same will be presented in a tabular format along with a “timeline”.
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Table 1: Estimated Marketing Budget for Dare Espresso
(Source: created by the author).
10. Conclusion
In accordance with the information stated, Dare Espresso is well-positioned to succeed in the “competitive” coffee industry sector. This brand can achieve sustainable business growth by launching new “product range”, maximizing “brand visibility” and expanding into “new markets”. It is expected that Dare Espresso will establish itself as a leading player in the global coffee industry in the coming days. The marketing strategy outlined in this report has provided a well-defined roadmap for achieving these goals. In addition, this report has revealed why Dare Espresso must focus on maximizing “return on investment” through “strategic budget allocation” and “targeted marketing activities”.
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