Smokin Bean by Matthew Algie

Candidate ID: - 957880

MATTHEW ALGIE- SMOKIN BEAN •

Customer based contextual analysis (STP framework)

Targeted audience: Generation Z / Post-Millennials / iGeneration In today’s consumer landscape, particularly among Gen Z, there’s a growing demand for products that align with their lifestyles. While traditional coffee in diner mugs or paper cups still holds market share, innovative products and packaging have led young consumers to adopt coffee as a beverage of choice. Despite these shifts, young consumers aren’t rejecting their parents’ patterns. While they drive coffee trend growth and consume more coffee than older consumers, they’re also likely “coffee to-go” drinkers. (Refer Appendix A) These evolving preferences shape their coffee choices and influence the broader coffee culture in UK. (Jeff, 2023) Profile building for a Gen Z Coffee to-go consumer: -

1. Demographics: - Born (1997-2012) •

High school to university students and early professionals.

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Income: - Varies likely mid to low disposable income, depending on career stage.

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Geography: - Birmingham city centre and Edgbaston

2. Psychographics: •

Values: - Gen Z focusing on Sustainability and ethical sourcing of coffee beans.

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Reduced “convenience gap” and time efficiency

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Health-conscious choices.

3. Lifestyle: •

Coffee on the-go, by balancing Work, studies and social engagements.

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Trend-conscious choices, like switching to Vegan sources. (Like Oat milk, almond milk. Etc.)

• Social Status: Carrying branded to-go cups can be a subtle fashion statement.

Exploring the Generation Z market for the Smokin Bean: •

¾ Brits now drink at least one cup of coffee out-of-home weekly. Consumers seek convenience in their daily routines, including buying coffee to-go when shopping or refuelling. A study of 1,500 Gen Z consumers found that nine out of ten purchase coffee to-go, and nearly half prefer well-known brands. While a fifth of customers expect technology to eliminate queues for payments, the optimum “Convenience Gap” for takeaway products like coffee is between two and three minutes. (Nestle Professional, 2020) Smokin Bean Coffee in Birmingham can capitalize on Gen Z’s preference for coffee-to-go by strategically locating stores near universities and collaborating with retailers. This approach will help the company effectively communicate with its target audience and establish a strong brand presence. By

offering premium coffee-to-go options at affordable prices, Smokin Bean Coffee can attract new customers and differentiate itself from competitors like Costa Coffee. As per the YouGov survey 2023 (Refer Appendix B), Gen Z considers the “Convenience Gap” as a factor that motivates them to purchase coffee to-go.

Integrating Ansoff Matrix model for Market Targeting Strategy (Kyle Peterdy, 2023) Implementing the Market Development strategy outlined in the Ansoff Matrix, Location 01: - Sainsbury’s Local (16-20 Colmore Row, B32QD): The company can rely on this location as the retailer outlet lacks a coffee-to-go vending machine. This makes it easier for the company to penetrate the targeted market of Generation Z, as the location has the most recorded football of Aston Students who prefer to buy their daily meals and other youngsters traveling to Birmingham city centre.

Location 02: - Costcutter (The Vale, Edgbaston, B153SX): This spellbinding location is the retailer’s best bet. As outlet lacks a coffee-to-go vending machine, making it easier to penetrate the Generation Z market. The location has the most recorded football of the University of Birmingham Students, who prefer affordable meals and anticipate a good coffee option nearby while walking to campus.

Market targeting Strategy for Smokin Bean’: - Differentiated Marketing It will allow to create products and offerings that stand out and appeal to a unique need for their target segment. The main benefit of this strategy is building a consumer base loyal to your brand and being less susceptible to competitors outperforming you. (Refer Appendix C for Target Persona’s.)

Internal Contextual Analysis: A Cultural Web Model framework (Johnson et al 2018) For Matthew Algie the model can help create a consistent, engaging culture that resonates with customers, employees, and stakeholders. (Refer Appendix D) 1. Stories: Current narrative: •

Five Strategic Pillars Plan in action.

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Sustainable sourcing of the coffee beans.

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Sustainable sourcing of other products.

Desired narrative: •

Aim to certify 100% of coffee sustainably, by reflecting through commitment to farmers’ well-being and planetary preservation.

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Priority to promote a culture of inclusivity, respect and mental well-being.

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To achieve carbon neutral goals by 2040.

Customer testimonial and Spotlight: Jon, Zak, and Royal Russell School’s team have enjoyed working with Matthew Algie coffee roast. They look forward to collaborating on new projects. Ed Broderick expresses the school’s excitement for continued collaboration, highlighting Matthew Algie’s invaluable support, especially in branding. Royal Russell School is ready to redefine its catering services, and Smokin Bean is eager to join them.

(Matthew Algie, 2024)

2. Symbols: •

Logo and branding: The distinctive branding strategy employed by Smokin Bean, characterized by bold black text and a minimalist coffee bean design, effectively distinguishes them from their competitors in the market. (Matthew Algie,2024)

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Packaging: Smokin Bean utilizes Vegware Cups to enhance brand recognition by promoting the reuse of sustainably produced cups, thereby appealing to environmentally conscious consumers. (Matthew Algie, 2024)

3. Rituals and Routines: •

Barista Routine: Training staff for rapid, consistent service, emphasizing warmth and connection even during quick interactions, during the order process.

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Cultural Rituals: In-Store Celebration of Festivals in the United Kingdom offering exclusive discounts, promotions, or complimentary additions to espresso, such as desired Da Vinci syrups, to commemorate the festive season.

4. Power Structure: •

Employee Empowerment: Decentralized decision-making at the retail store level to handle unique customer needs efficiently.

5. Control Systems: •

Performance metrics: Currently, Smokin Bean is concentrating on enhancing customer satisfaction through the brand merchandising ideology. Furthermore, emphasizing the speed of service and waste reduction could further augment its value proposition. (Matthew Algie,2024)

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Incentives to the Consumer: After analysing the United Kingdom Generation Z market, the company can primarily focus on rewarding customers through tiered customer loyalty programs that provide immediate benefits and rewards on coffee-to-go purchases. British Gen Z values instant gratification over accumulating loyalty points in their accounts.

6. Organizational Structure: •

Flat hierarchy: To enhance innovative ideas within Smokin Bean team members, this model could work best within the organisation.

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Cross-functional team: Integrating and focusing on operations, customer support, to enhance final brand delivery. (Refer Appendix D) (Following Business Process reengineering on a fixed interval.)

External Contextual Analysis: Stakeholder Mapping and PESTEL framework Stakeholder Mapping for Smokin Bean (Refer Appendix E) •

If a stakeholder has high influence but low interest, keep them satisfied with regular updates and valuable feedback.

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Key stakeholders with high influence and interest require close management of their expectations. Meet with them more frequently than lower-influence stakeholders. Their feedback is crucial for decision-making.

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Customers with low influence but high interest need updates on progress, but not as often as key stakeholders. Low-influence, low-interest stakeholders only need project status updates, usually only for significant steps. (Ackermann, Eden, 2012)

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Detailed analysis of the External factors through in-depth “PESTEL Framework”, for Matthew Algie (Smokin Bean). (Refer Appendix F)

Business Contextual Analysis: Competitor Analysis of Matthew Algie (Smokin Bean) through Perceptual Map for Starbucks, Costa Coffee, Blank Street Coffee, Greggs, Pret, Caffe Nero. The Perceptual Map clearly indicates that Matthew Algie is positioned somewhere between the affordable and a brand with limited awareness of its current product portfolio. The marketing communication campaign aims to reposition the brand as a Coffee-to-go option that offers affordability and a comprehensive product portfolio.

(Refer Appendix G)

Marketing Communication Objectives: SMART approach (Refer Appendix H) Creating a SMART Marketing objective for Smokin Bean on three main elements that is “Awareness”, “Footfall”, and “Sales”. Utilizing the SMART approach, the campaign will implement digital marketing campaigns on Instagram, TikTok, and other social platforms to enhance brand awareness and customer engagement. Specifically, targeting Generation Z and commuters through location-based advertising. In anticipation of a substantial increase of 45% in Instagram followers and a 25% growth in website traffic because of the campaign. Additionally, the plan is to initiate awareness campaign initiatives at the newly chosen retailer outlets, including Sainsbury’s local and Costcutter at Edgbaston. Furthermore, expanding the customer loyalty program for British Gen Z consumers by enhancing the sustainability perception and introducing free takeaways every 7th day after coffee purchases for six consecutive days. Additionally, leverage the Point-of-Sale system to track customer purchase history and loyalty points. The campaign is estimated to utilize a budget of £150,000 and achieve an achievable growth of 45% in social media followers and 25% growth in website traffic by Q3 2025. The campaign aims to generate positive outcomes in overall sales, with an estimated 10% increase in Smokin Bean sales by the end of Q4 2025, driven by the significant contribution of loyal Generation Z consumers to overall revenue and growth.

Marketing communication strategy: Aligning the “Pull Strategy” with Gen Z’s preferences, behaviours, and values that involves emphasizing digital engagement platforms like “Instagram, TikTok, YouTube, and X”. Engaging content, influencer collaborations, and interactive social media campaigns attract Gen Z’s attention organically. Generation Z

values brands that align with their personal values, such as sustainability, diversity, and authenticity. This strategy focuses on creating a brand story and identity that resonates with these values. By highlighting eco-friendly packaging, fair trade sourcing, and local community support, Smokin Bean encourages Generation Z to seek out the brand.

Interactive experiences are important, as Generation Z enjoys being part of a community and engaging with brands directly. Engagement events include gamification, contests, and interactive experiences, such as launching an event in a university with rewards for frequent purchases and redemption of loyalty points (Fill, Turnbull, 2016). As a part of the brand Matthew Algie, Smokin Bean can focus on an interactive contest on the “X” platform for constructive criticism by location-based followers to assist them in reaching their potential market in the region. By offering complimentary coffee to-go for constructive criticism, this is often a strategic marketing move to demonstrate the new consumers base that “we are willing to acknowledge our shortcomings and engage in honest dialogue.”

Marketing communication campaign (Smokin Bean): Media planning: - POEM framework Generation Z spends a substantial amount of time on digital platforms. Therefore, strategizing the social media marketing communication campaign for Smokin Bean by using “Omni-channel” approach on platforms such as Instagram, TikTok, YouTube, and “X” could yield significant success by integrating the content across all the platforms. By meticulously crafting User-Generated Content (UGC) and challenges (e.g., TikTok challenges with coffee-to-go themes), short-form videos showcasing the brand’s story, sustainable practices, and creative seasonal coffee recipes can be effectively produced.

Given the attention span of British Generation Z and their status as native digital communicators with brands, advertisements on platforms like YouTube necessitate strategies that are concise and 15 seconds long, it can be Skippable in-stream advertisement or Bumper advertisements, as they do not engage with brands through lengthy content-based videos. Smokin Bean can categorize media content by utilizing paid media for influencer marketing. (Tuten, 2021) However, the company should prioritize and leverage “owned content” on Instagram and website, which can be utilized to create and control customized messages for target audience segments. This approach can generate constructive reviews and recommendations for the brand. Incorporating humor, memes, and slang into Instagram content can further enhance its value. As Generation Z is the most affected age group by their peers, collaborating with microinfluencers like web series Entrepreneur based in the West Midlands region on TikTok can enhance brand authenticity. Smokin Bean can also collaborate with local suppliers,

such as “Explode Social Media Ltd.” based in Birmingham, to facilitate collaborations with local artists, thereby reducing operational costs.

Media classification: For the Generation Z marketing communication campaign, Smokin Bean should prioritize three primary media classes: Outdoor media, Digital media (including digital out-of-home advertising), and In-store media for retail outlets. The key sources for the media used in the advertisement campaign would be either paid media strategy or owned media strategy. The primary media functional strategy should be “interactive strategy” to facilitate effective two-way communication with targeted Generation Z audience. (Fill, Turnbull, 2023) Smokin Bean Media strategy, Media Scheduling and Media Vehicle that is to be used: For Digital Out-Of-Home (DOOH), the company should promote at least one seasonal drink on the digital billboards located at Birmingham City centre Bus stops (specifically Priory Queensway Stops that are PQ1, PQ2, PQ3, PQ4, which are near the chosen retailer outlet), using “Pulsing frequency”, this can be achieved by collaborating with the leading partner “Adshel Live”. For interactive media, the company should focus on expanding the reach of the targeted Generation Z audience organically through Search Engine Optimisation. This will involve holistically working on the Smokin Bean website by adding personal stories, customers’ honest feedback, and most importantly, by regularly updating the retail outlet information. For social interaction, “Continuity frequency” can be

used by Smokin Bean that can focus on generating its own content for the seasonal drink that is to be promoted for one quarter, on platforms such as Instagram, TikTok, “X”.

In-store media can be optimized to enhance the “Point of Purchase, encounter” experience. This involves strategically displaying vending machines that prominently showcase the company’s branding, effectively differentiating it from competitors.

Additionally, implementing a reusable coffee to-go cup sourced from sustainable locations and providing information about this initiative on the coffee to-go Mug can serve as a “valuable touchpoint”. Planning for the Guerrilla marketing by collaborating with “Hussel Marketing UK” for the National Coffee Week at the “Bull Ring Shopping Centre” Birmingham central. (refer Appendix I). For Detailed Budget allocation for the media classification and vehicle. (Refer Appendix J and K) “Branding” aspect of the Marketing communication campaign of Smokin Bean using Paul Krugman's "three-hit theory," approach: Applying this theory to a targeted Generation Z-focused audience Smokin Bean coffeeto-go concept in the United Kingdom involves tailoring each aspect to resonate with the preferences, values, and behaviours of this demographic.

Phase 1: - Memorable message: - Smokin Bean prioritizes cold and warm leads and converts them into business prospect leads for the targeted audience by crafting simple and creative taglines that emphasize themes such as sustainability, affordability, and convenience for on-the-go consumption at their “point of purchase.” through Brightly branded coffee carts at the chosen retail outlet. This strategy aims to create salience

among the target Generation Z group, who value experiences, this encapsulates the values that Generation Z holds. Utilizing bold and minimalist designs for headlines and creative storytelling through humour and memes with vibrant colour schemes that are Instagram-worthy, Smokin Bean can attract the visual preferences of Generation Z for an engaging Instagram page. By creating short, 15-second engaging reels that share the recipe for trending seasonal coffee, company can generate user-generated content that can be shared across various platforms like TikTok to maintain the engagement of the targeted group.

Phase 2: - Repeated Exposure- Smokin Bean can achieve dominance on social media platforms by concentrating on platforms such as Instagram, TikTok, YouTube, and X. By strategically deploying its “owned content” through captivating videos showcasing the coffee-to-go experience, and challenges like (e.g., “Tag your coffee companion”), and collaborating with local influencers, Smokin Bean can generate substantial exposure on platforms like TikTok through frequent advertisements and branding exposure to the target group.

Phase 3: - Targeted Delivery – Smokin Bean can priorities the use of eco-conscious packaging and biodegradable cups with a creative branding appeal and this can be achieved by printing the Unique tagline on their Vegware cups, to appeal Gen Z’s environmental value. By featuring cultural inclusivity to their drinks, the company can offer diverse range of flavours to attract the new members in the targeted segmentation and this can be promoted in the advertising materials. (e.g., matcha, oat lattes). Rolling out the loyalty program for the frequent buyers to promote the essence of the “Price

Sensitivity Branding of the Smokin Bean” Running campaigns that involve user-generated content, like creating your own coffee art or designing custom sleeves, can add value to the final delivery to the targeted Generation Z. In conclusion, by delivering a cohesive, creative, and value-aligned campaign, the Matthew Algie brand can capture the attention and loyalty of the Generation Z audience while adhering to Krugman’s theory.

Smokin Bean can use consistent taglines and visuals across all platforms for maximum recalls. Creative and patented campaign names that can be used for a seasonal drink with a hashtag that drives to community impact of targeted Generation Z for Smokin Bean (Matthew Algie): •

“Good for You, Great for the Planet.”

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“Trending with affordability.”

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“Sustainability that lights up the happiness.”

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We don’t make it sustainable; we just do it the right way.”

Creating a “Persuasion framework” for advertising a coffee-to-go concept by Matthew Algie brand by targeting Generation Z in the United Kingdom. By analysing understanding of their preferences, behaviours, and values. Emotional Appeals: The Smokin Bean website prioritizes authenticity by showcasing real individuals and their narratives. For instance, it emphasizes ordinary occurrences, such as students obtaining coffee prior to lectures or engaging in one-on-one conversations with the intended audience to discuss the contentment and overall satisfaction derived from the coffee

purchased. The company can highlight coffee moments that transcend various subcultures, such as vegan alternatives or late-night study sessions. By employing retroinspired designs and templates for Instagram posts, the company can effectively evoke a sense of nostalgia while incorporating a contemporary twist into the content generated marketing strategy. (e.g., vintage aesthetics with trendy slang). Smokin Bean can prioritize the additional and logical product features to their espresso warehouse that promotes the option of customizability to coffee-to-go options for the targeted market by adding the new “Da-Vinci” syrups and flavours in the vending machine that are trending in the market. This unique introduction of Flavors and blends to the vending machine can provide a competitive edge in the market, as it encourages Gen Z’s market to be loyal to the brand that also provides sugar-free syrups like Hazelnut, Carmel, and Vanilla.

(Smokin Bean already provides the flavours as part of the additional customization; these basic flavours can be added to the vending machine at the start of rolling the contract to the new retail outlets.) As “Sustainability” is at the heart of the Smokin Bean the brand can priorities the advertising campaign through “ethically sourced coffee short stories” for the content marketing on the platforms like YouTube and Instagram.

Calculating the Gross Rating Points (GRP) for the Digital Marketing Communication Campaign of Smokin Bean, with a Focus on Instagram as the Primary Medium of “Owned Content Delivery” for the brand awareness campaign through Instagram advertisement.

Assuming the demographics for the targeted Gen Z between (age 10 and 27), the Instagram campaign budget is £35,000. The average cost per mile (CPM) for a Gen Z-

based individual in the United Kingdom is £5 to £7 (YouGov, 2023). For the Smokin Bean campaign, let’s assume a cost per mile of £7 for the 1000 targeted audience in Birmingham city centre. A well-established campaign typically has an exposure frequency of 2 to 3, let’s assume an average of 3 for the Smokin Bean campaign. Based on the estimated average reach per user, new users get approximately 30% to 40% impressions.

Assuming an impression reach of 35% for the Smokin Bean campaign, the unique reach is calculated. This unique reach accounts for approximately “43.74” GRPs for the campaign. (Refer Appendix L) Evaluations and Controls for the Marketing communications Campaign of the Smokin Bean: - To evaluate the performance of the Smokin Bean marketing communication campaign, the following key marketing metrics are utilized: “Reach and impressions”, “Engagement rate”, “Follower growth”, “YouTube video insights”, “Reels insights”, and click-through rate (CTR). These key performance indicators (KPIs) serve as indicators to interpret the data and ascertain the campaign’s success. (Appendix M)

References: •

Fernandes, J. (2022) UK - understanding coffee drinking among gen Z, YouGov. Available at: https://yougov.co.uk/consumer/articles/40257-uk-coffee-drinkingamong-gen-z-survey (Accessed: 05 December 2024).

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Shields, H. (2024) Customer spotlight: Royal Russell School, Matthew Algie.

Available at: https://www.matthewalgie.com/blog/customer-spotlight-royal-russellschool/ (Accessed: 05 December 2024).

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Tristancho, C. (2024) Stakeholder mapping 101: How to make a stakeholder map, Project Manager. Available at: https://www.projectmanager.com/blog/stakeholder-mapping-guide (Accessed: 05 December 2024).

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Brodowicz, M. (2024) Business plan: Coffee shop report example, aithor.com.

Available at: https://aithor.com/essay-examples/business-plan-coffee-shopreport-example (Accessed: 05 December 2024).

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Peterdy, K. (2023) Ansoff matrix, Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/management/ansoff-matrix/ (Accessed: 05 December 2024).

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2024 trends in coffee: What consumers want from coffee and coffee shops (2024) Mintel. Available at: https://www.mintel.com/insights/food-anddrink/the-coffee-and-coffee-shop-industries-what-consumers-want-in-coffee/ (Accessed: 05 December 2024).

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Wooden, R. (2023) Hello gen Z, Next Generation Coffee Drinkers., Gen Z coffee culture | UK | Climpson & Sons. Available at: https://climpsonandsons.com/blogs/journal/hello-gen-z-next-generation-coffeedrinkers?srsltid=AfmBOoo3TRsMoO1QGXYDaeJA1U159vuTUfmPdltX8ML_Uu47dXQ701c (Accessed: 05 December 2024).

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Cultural web model: A strategy for corporate culture (2022) Personio. Available at: https://www.personio.com/hr-lexicon/cultural-web-model/#how-do-you-usethe-cultural-web-model (Accessed: 05 December 2024).

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Government analysis function (2024) Government Analysis Function. Available at: https://analysisfunction.civilservice.gov.uk/policy-store/stakeholder-mapping/ (Accessed: 05 December 2024).

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Johnson, J.L., Maines, M.J. (2018). The Cultural Topography Analytic Framework. In: Johnson, J., Kartchner, K., Maines, M. (eds) Crossing Nuclear Thresholds. Initiatives in Strategic Studies: Issues and Policies. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-72670-0_2

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Eden, C. and Ackerman, F. (2013) Making strategy: The journey of strategic management. SAGE Publications Ltd.

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Fill, C & Turnbull, S 2019, Marketing communications: touchpoints, sharing and disruption. 8th edn, Pearson Publications.

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Kotler, P & Armstrong, G 2011, Principles of Marketing. 14th edn, Prentice Hall.

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Belz, Frank-Martin & Peattie, Ken (2012). Sustainability Marketing: A Global Perspective (2nd Edition). Wiley. ISBN: 978-1-119-96619-7.

Appendices

Appendix A: - Statista Graph showing United Kingdom’s Generation Z inclined towards Coffee to-go consumption (Data source: - YouGov 2023) Coffee consumption frequency in the United Kingdom in 2024 35%

31% 30%

25%

Share of respondents

23%

23%

20%

15%

11% 10%

9% 6%

5%

1% 0%

Several times a day

Once a day

2-3 times a week

Once a week

Around once a month

Source

Additional Information:

YouGov © Statista 2024

United Kingdom; August 2024; 2,004 respondents; 18 years and older; Online survey

I don't drink coffee

I don't know

Appendix B: - The motivations of Generation Z consumers when purchasing coffee are influenced by taste, price, and convenience. While taste and price are substantial factors, convenience ranks second, accounting for 20% of the influence. Notably, the higher proportion of British Gen Z individuals who have purchased coffee to-go (16%) in the past three months suggests a potential growth in the UK’s coffee to-go consumption market, as indicated by a recent study conducted by YouGov (2023).

Appendix C: - Let’s start with creating Persona’s for a Target Generation Z Consumer based in the Birmingham, United Kingdom: 1. Coffee to-go enthusiasts (Bathila Jayasiri): - Persona creation for Costcutter outlet Background: - Bathila, a 22-year-old student at the University of Birmingham, nurtured in Edgbaston. He is eager to discover a new coffee establishment with exceptional taste and a vending machine conveniently located near his walking path to the university. This would enable him to conveniently purchase coffee on the go.

Challenges: - Currently, there are no retail outlets within walking distance of Bathila’s accommodation that offer a vending machine for coffee. Consequently, he is unable to purchase coffee to-go for his morning lectures.

Motivation: - The establishment of a Smokin Bean’ coffee vending machine in Edgbaston, offering competitive pricing and a superior coffee experience compared to Costa Coffee, would significantly benefit Bathila and other members of his generation. It would provide them with a convenient and accessible option to purchase coffee for their work and daily routines.

2. Grumpy Coffee to-go Lover (Aidrian Yu): Persona creation for Sainsbury’s local outlet.

Background: - A 19-year-old international student from China at the University of Birmingham resides on Colmore Row. He eagerly anticipates the arrival of a coffee vending machine near his location. This would enable him to conveniently purchase coffee and board the city bus while commuting to the university.

Challenges: - Due to his limited time and unexpectedly hectic schedule, he is unable to patiently wait in line at Costa Coffee for an extended period to obtain his coffee.

Motivation: Smokin’ Bean’ solution aims to address the inconvenience associated with “Convenience gap” for a takeaway product like coffee, which typically requires 5-7 minutes after placing an order.

Appendix D: - Internal Contextual analysis of Matthew Algie (Smokin Bean) through “The Cultural Web Model” and “Business Process Reengineering”

Appendix E: - External Contextual Analysis for Matthew Algie (Smokin Bean) through Stakeholder Mapping.

Appendix F: - Detailed PESTEL analysis of Matthew Algie’s (Smokin Bean) Political Factors

•

•

Taxation Policies on Coffee Sourcing.

Regulations and trade policies changes.

Economic Factors

Social Factors

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•

•

• •

Political stability

Inflation in United Kingdom (West Midlands.)

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Operations cost.

Cost of Labour.

(Baristas minimum wages.)

Demographic (Generation Z vs Millennials.)

Lifestyle trends.

(Increased Coffee to-go demand among the consumers.)

Technological Factors •

•

• •

HealthConscious choices.

Coffee Vending machine (User interface) Marketing Technology (AI- Driven analytics.)

Delivery Platforms.

Environmental Factors •

•

•

Legal Factors

Sustainable coffee sources Waste manage ment.

Carbon footprints (2040, net zero goal.)

Political: Changes in taxation policies pertaining to coffee bean sourcing can have a significant impact on the overall business (Post BREXIT impact). Additionally, alterations in local government regulations regarding the operational licensing of vending machines within the retail chain can also affect the business. Furthermore, political stability in the region will enhance the value of the business model.

Economic: Inflation in the region can impact the overall sourcing of raw materials, including sugar, milk, and other ingredients. This disruption in costs associated with vendors can affect the profitability of the Smokin Bean business model. Additionally, economic downturns can reduce consumer spending on Signature coffee roast blends, posing a challenge to the company’s profit margins. Furthermore, wages for baristas and staff can increase the overall business operational costs for Matthew Algie.

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IP right

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Food and safe.

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CPL

Social: Demographics pertaining to the targeted Generation Z market can assist in prioritizing the overall Brand communication strategy by focusing on the experiences that have led to an increase in lifestyle changes, with a preference for coffee to-go consumption over traditional coffee consumption. This factor can also aid the business in conducting comprehensive research and development to align with the health-conscious preferences of the target market in the current era.

Technological: A unique user interface for a coffee-to-go vending machine that enables consumers to interpret and order coffee can significantly contribute to consistent purchases among the target market (Gen Z). The overall integration of an “AI-driven Data decision-making model” can assist the business in making more informed decisions for its advertising campaigns and customer engagement strategies. Furthermore, integrating with delivery platforms such as Deliveroo or Uber Eats can enhance the business model’s value in the market.

Environmental: Increasing Consumer demands for sustainability in coffee sourcing can provide Matthew Algie with a competitive advantage in the market. Furthermore, the overall impact of climate change can affect the coffee supply chain and the sourcing of coffee beans. The Smokin Bean goal of achieving carbon-neutral business operations by 2040 may not be as valuable as it seems, after analysing the current situations.

Legal: Compliance with health and safety regulations pertaining to food and beverage preparation may significantly impact the overall business operations of Matthew Algie.

Transparent labelling of ingredients and nutritional information is anticipated for the coffee products. The company should also ensure adherence to labour laws, including minimum wages for baristas and staff, and working conditions. Additionally, protection of trademarks, branding, and unique recipes should be prioritized.

Appendix G: - Perceptual Map for the Competitor Analysis of Matthew Algie’s Smokin Bean.

Appendix H: - SMART Marketing Objectives for Smokin Bean 12 Months marketing communications campaign.

Appendix I: - 3 main Media classes used for Smokin Bean’s Marketing communication’s distribution for the targeted Generation Z.

Media Vehicle

Digital out-of-home (DOOH) Digital Billboards at Bus Stops and Tram

Lines. (Collaboration with Adshel Live Ltd.)

Interactive media Smokin Bean website, Matthew Algie

website, Instagram, You Tube, TikTok, X.

In-store Coffee to-go mugs (With sustainability

branding), Point of Purchase (Vending machine Displays)

Appendix J: - Budget Allocation Overview with minor Evaluations and Controls for 12 months Marketing communications campaign of Matthew Algie’s (Smokin Bean)

Channel / Activity

Budget in (£)

Percentage % of total marketing cost

Instagram Marketing Campaigns

TikTok Marketing Campaigns + DOOH campaign Website Optimization (Search Engine Marketing) & Content creation “X” (formerly Twitter) Campaigns

Guerrilla Marketing Activations (In Q3)

£ 35,000

23%

£ 40,000

27%

£25,000

17%

£10,000

7%

£40,000

27%

Total Marketing Budget: - £150,000 (100% Usage)

Evaluations and measures of the Budget Engagement metrics for target Gen Z, content testing and corrections, influencer fees, ROI analysis by outsourcing the tools.

Viral reach, trend participation success, Bus Stops, follower growth, anticipated.

Website Traffic analysis, customer conversion rate, customer journey roadmaps.

Engagement analysis, sentiment analysis, campaign hashtag mentions, constructive feedback analysis.

1 week Event at Birmingham City centre (during Coffee Week in UK), social media buzz, QR code redemptions, Loyalty points redemption, Freebies to the audience around the event.

Appendix K: - Quarterly budget allocation for the market communication campaign of Smokin Bean: Month-by-Month Allocation Month

Activities planning for Smokin Bean campaign

Q1 (AprilJune)

Launch Instagram/TikTok campaigns, website optimization. and start guerrilla planning.

Budget in (£)

30,000

Q2 (July- TikTok challenge; influencer collaborations; loyalty program Sep) launching event; pop-ups near universities, for Sep intake.

45,000

Festive campaigns Roll out guerrilla marketing; X engagement Q3 (Oct- increase for Targeted Gen Z; Instagram/TikTok ads run on high Dec) frequency; start working on blog content for website, Freebies campaigns in universities (start rolling out)

50,000

Q4 (Jan- loyalty push, working on constructive criticisms, looks for the march) maintenance in the vehicle that is used for specific media.

25,000

Total Marketing budget used for 12 months campaign: - £150,000

Appendix L: - Gross Rating Points (GRP) calculation for Instagram marketing campaign of Smokin Bean.

Appendix M: - Evaluation and controls of the social media engagement metrics and Key Performance Indicators for the marketing communication campaign of Smokin bean for targeted Generation Z market.

Month

Q1 (AprilJune)

April

May

June

Activities Planned

KPIs & Marketing Metrics

Launch Instagram/TikTok campaigns; website optimization; and start guerrilla planning.

- Reach & Impressions: Track total reach and impressions of Instagram and TikTok ads.

- Engagement Rate: Target 5-7% engagement rate (likes, comments, shares).

- Follower Growth: Increase followers by 10% on Instagram & TikTok. - Video Views: Aim for 50K+ views on launch campaign videos.

- CTR (Click-Through Rate): Track click-through rate on website link within posts (Target: 1.5%-2%).

Launch Instagram/TikTok campaigns; website optimization; guerrilla planning

- Impressions: 250,000+ (Instagram & TikTok) - Follower Growth: 5% increase (Instagram & TikTok targeting) - Engagement Rate: 6% across both platforms.

Launch Instagram/TikTok campaigns; website optimization; start guerrilla planning for Q3

- Video Views: 75K views on Instagram/TikTok posts - Engagement Rate: 6-7% - CTR on website links: 1.5% clickthrough rate

Launch Instagram/TikTok campaigns; website optimization; start guerrilla planning for Q3

- Hashtag Performance: Track campaign-specific hashtags (#SmokinBean, #GenZBean’s) - User-Generated Content (UGC): Increase UGC by 15% (UGC submissions).

Month

Q2 (JulySep)

July

August

September

Activities Planned

KPIs & Marketing Metrics

TikTok challenge; influencer collaborations; loyalty program launching event; pop-ups near universities, for September intake students.

- Engagement Rate: Target 7-10% engagement for TikTok challenges and influencer posts.

- Influencer Performance: Measure engagement and reach of each influencer post (Target: 20K+ reach per influencer).

- Hashtag Campaigns: Track hashtag usage related to TikTok challenge (e.g., #SmokinBeanChallenge).

- Loyalty Program Signups: Track new loyalty program signups (Target: 2,000 sign-ups).

TikTok challenge; influencer collaborations; loyalty program launching event

- Video Views: 100K+ views for TikTok challenge posts - Influencer Reach: 500K+ reach target for influencer collaborations.

- Loyalty Program Registrations: First 500 sign-ups.

TikTok challenge; influencer collaborations; loyalty program launching event

- Engagement Rate: 8-9% engagement rate on TikTok challenge - New Followers: 10% increase in TikTok followers - Event Attendance: 200+ attendees at loyalty program launch.

Pop-ups near universities, for September intake students

- Engagement Rate: 6%+ engagement on Instagram/TikTok - Pop-up Event Traffic: Measure social media engagement during events (Target: 2,000+ social interactions).

- Loyalty Program Signups: 1,000+ new loyalty program signups.

Month

Activities Planned

Q3 (OctDec)

- Ad Impressions: 1M+ impressions across Instagram & TikTok (Festive ads).

- Engagement Rate: 10-12% Festive campaigns Roll out guerrilla engagement on Instagram/TikTok marketing; X engagement increase for ads.

Targeted Gen Z; Instagram/TikTok ads run on - Brand Mentions: Track mentions high frequency; start working on blog content across platforms, aiming for a for website, Freebies campaigns in 15% increase. universities (start rolling out).

- Freebie Campaign Engagement: 20% engagement on university Freebies posts.

- Blog Content Views: Track 5,000+ views on blog posts.

Roll out festive campaigns.

October

guerrilla marketing. increase engagement for Gen Z

November

Roll out festive campaigns; guerrilla marketing; increase engagement for Gen Z

KPIs & Marketing Metrics

- Instagram/TikTok Ads Performance: CTR > 2% - User-Generated Content: Increase UGC by 25% - Campaign Reach: 500K+ total reach for festive campaigns.

- Social Shares: Target 10K shares of festive campaign posts - Influencer Collaboration Reach: 1M+ reach - Freebie Campaign Engagement: 25% engagement rate.

- Ad Views: 300K+ views on Instagram/TikTok ads Instagram/TikTok ads run on high frequency; - Loyalty Program Engagement: December blog content creation; Freebies campaigns in 500+ interactions related to universities festive discounts and promotional codes.

Month

Activities Planned

Q4 (JanMarch)

- Loyalty Program Growth: 15% increase in sign-ups for the loyalty program.

Loyalty push, working on constructive - Feedback Engagement: Track criticisms, looks for the maintenance in 100+ comments with constructive the vehicle that is used for specific feedback. media.

- Media Performance: Evaluate vehicle media effectiveness (Track reach & impressions).

January

Loyalty program push; address constructive criticisms; media vehicle maintenance

- Social Media Feedback: 100+ engagement comments related to feedback - Loyalty Signups: 300+ new signups.

Loyalty program push; address constructive criticisms; media vehicle maintenance

- Engagement Rate: 7-8% engagement rate across social media posts - Loyalty Signups: 300+ new signups (Target: 600 in total for Q4).

Loyalty program push; address constructive criticisms; media vehicle maintenance

- Customer Retention Rate: 20% of new sign-ups should engage with the program during the campaign - Social Mentions: Monitor 100+ mentions of loyalty program.

February

March

KPIs & Marketing Metrics