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10 Old Grimsbury Rd, Banbury OX16 3HG, UK

BMP6008 Integrated Digital Marketing Strategy

Assessment Brief:

Based on Dark Woods Coffee case study, you are commissioned to prepare an executive report to Dark Woods Coffee directors to address the following issue in consideration of the relevant literature and industry examples

Analyse Dark Woods Coffee’s macro and micro market environment and its potential market segments. Explain how you plan to target each segment through your digital marketing communications mediums. You should outline and critically evaluate your chosen digital marketing communications mediums. At the end of your report provide a brief of the main skills that you have developed during delivering this module. Your report should be produced in a professional report style and should contain no more than 2000words excluding the references and appendices sections

Solution:

DIGITAL MARKETING REPORT

Executive summary

This assignment explores and analyses the environmental factors associated with Dark Wood Coffee through a digital marketing aspect. The purpose of this report has been to explore external and internal environment of Dark Wood Coffee. The external environment analysis has been presented with PESTEL framework in which each factor presented varied impact on the organisation. Significant findings correspond to current issues facing the organisation in the form of poor segmenting according to porter’s generic forces. This includes alignment of itself to ‘Differentiation Focus’ while an optimised approach will be ‘Differentiation’ in terms of scope and competitive advantage. For meeting such optimised requirements, three recommendations has been provided in the form of digital marketing methods.

Introduction

Digital marketing and its strategy are defined as how digital technology platforms are used to support the overall business objectives (Ritz et al., 2019). As learned during the sessions, the importance of understanding digital marketing corresponds to the requirement to create a consistent direction for online marketing with a focus on business growth. This report aims to analyse the environmental factors of Dark Woods Coffee (DWC) and provide solutions regarding digital marketing issues being faced by the organisation. A two-stage approach has been placed for practical analysis, such as conducting environmental research followed by recommending issue mitigation through a digital marketing method.

Dark Woods Coffee identifies itself as a ‘adventurous coffee roaster, Barista school, and pop-up café’ (darkwoodscoffee.co.uk, 2022). Started in 2013, the organisation caters itself to the Business to Business (B2B) and Business to Consumer (B2C) market through its multiple products. Lead by Damian Blackburn, the company has won two ‘Golden Forks’ award (darkwoodscoffee.co.uk, 2022).

Figure 1: Dark Woods Coffee (Source: darkwoodscoffee.co.uk, 2022)

Environment Analysis (macro & microenvironment, DWC generic marketing strategy & existing/potential market segment/s)

The environmental analysis will be executed in the macro and the microdomain. The PESTLE framework will be used for the macro domain, while microenvironment analysis will focus on research through multiple variables.

VariablesFactorsImpact on DWC
PoliticalOccurrence of BrexitThe political decision of executing a no-deal Brexit impacted the coffee industry on a large scale. This includes the drastic shortage of workforce and delivery issues between multiple locations (French, 2018). The impact on DWC would be sourcing coffee beans to cater to the growing demand. Potential market segments, in this case, would be expanded into the retail UK market through digital channels.
EconomicGlobalisationThe impact of globalisation on the coffee industry would include exporting more volume. During 2019-2020, the UK coffee industry exports were 545.6 million GBP (taken from college resources). Impact on DWC would be catering to a larger wholesale order in the B2B market within the UK and global market. The potential market segment would be the B2B market segment focusing on the UK.
SocialHigh penetration of online interactionThe UK has one of the highest internet user penetration rates at 92.17% (Johnson, 2022). Hence, the impact on DWC could be attributed to the ability to attract a large volume of customers through their dedicated online presence. The potential market segment psychographics demands new flavours within the existing roasting mechanisms.
TechnologicalHigh penetration of mobile phone applicationsIncreased penetration of smartphonesAn average person in the UK spends close to 148 minutes on a smartphone (Struger, 2021). As such, the impact on DWC would be an opportunity in tapping this technological wave to expand and effectively market itself. The potential market segment would be based on demographics with the age variable. This is because of the higher possible use of smartphones but the lower age brackets.
LegalStringent marketing and advertising law Online advertising in the UK requires adherence to specific attributes. This includes providing an accurate description of the product and ensuring strong data privacy (gov.UK, 2022). The impact on DWC would be mostly positive due to the existing specific presentation of their products and services. The potential market segment would be based on behavioural segmentation as the company operates mainly in the B2B market.
EnvironmentalPromotion of online activities regarding sustainable business verticalsPromoting sustainable business verticals in the online mode would complement the understanding of various factors associated with environmental protection. The market segment would be exploring a high-value target market that looks for ecological attributes in a business.

Table 1: PESTEL

The microenvironment could be explored based on the following aspects:

·       Digital interaction of the customer

DWC presents a very distinct form of digital interaction to the customer base, both in the B2B and the B2C market. Evidence corresponds to the dedicated digital presence through the website and multiple social media channels such as Facebook (facebook.com, 2022). The overall impact of this variable on the organisation would be a potential growth market due to high volumes of digital presence. Additionally, the website also provides an online shopping experience through an e-commerce mechanism. This further improves digital interaction with the customers especially presenting the whole range of products and services segmented. Example, in this case, corresponds to providing training to baristas in a B2B format in the HORECA business aspect (darkwoodscoffee.co.uk, 2022)

·       Choice of consumer and digital influence

The Choice of the consumer in the coffee business has been focused on availing premium coupled with artisanal coffee (taken from college resources). This Choice is essentially fuelled by access to digital content across the UK and globalised markets. Evidence of the same could be attributed to the recent viral trend of making Dalgona Coffee during the recently concluded covid-19 induced lockdown (Cabbuag, 2021). The impact on DWC would be a higher demand for their coffee range, especially the ‘Under Milkwood’ by winning the Golden Fork from the North of England (youtube.com, 2016). Through this digital influence, customer acquisition and digital marketing approaches vary.

Based on the current business model of DWC, the generic marketing strategy could be identified as digital marketing through a website marketing approach.

Similarly, the generic strategy could be sourced from Porter’s Generic Strategies.

Figure 2: Porter’s generic strategies (Source: Taken from college PPT)

Relative to the strategies identified, it could be inferred that the organisation focused on the differentiation focus aspect. Rationale against the same lies in providing artisanal products with the same coffee type. However, the market is very niche, limiting the organisation in digitally marketing itself across the existing UK market. For example, though having specific differentiation, the majority of the share is concentrated with Starbucks. The uniqueness coupled with the wholesale business model should have increased the organisation’s digital presence. Evidence of poor digital presence could be attributed to only 4676 individuals following the organisation’s Facebook page (facebook.com, 2022).  Hence, the major problem so identified could be attributed to the poor digital presence that may hamper the organisation’s growth in the B2B market and the B2C market in the long end.

Currently, the organisation is a wholesale coffee roaster with a focused market in West Yorkshire (darkwoodscoffee.co.uk, 2022). Hence, the potential market segment would be the B2C market by considering the business model of Starbucks. However, the required differentiation would be based on concentrating solely on the e-commerce market with value-added services in the form of training home cooks to be professional baristas with their coffee. Hence, the potential market segment would be a combination of B2B in the HORECA system and B2C in an e-commerce model. In the B2C segment, the potential market will focus on psychographic and demographic division. This is because of millennials’ affinity towards digital space and demand for the uniqueness of products (Robichaud and Yu, 2021). Catering to the HORECA segment would ensure the organisation have extensive reach to the customers of those restaurants and retail outlets. As a result, the issue regarding focusing on niche markets would gradually be converted into emphasis on ‘Differentiation’ approach having broad scope. However, this process entails one of the most challenging aspects in the form of competition mainly from established brands.

Recommendations (critically evaluate and propose your recommended digital marketing method/s to target DWC’s existing/potential market segment/s)

In targeting the likely market segments of DWC, the following digital marketing methods are recommended:

·       Application of social media marketing

The application of the same would be through extensive marketing with Facebook and Instagram. The target segmentation would be a combination of demographics and psychographic. For example, an age group between 16-30 years would be targeted through this social media marketing through demographic segmentation. This bracket has been considered because of the most likelihood of having active social media presence and possibility of sharing. On the contrary, for the 31-45 years age group, the emphasis would be placed on those customers that demand a premium and high-quality product in the beverage segment.

Figure 3: Instagram page of Dark Woods Coffee             (Source: instagram.com, 2022)

The significant advantage associated with social media marketing is the potential of an organisation to reach high number of customers. This is because of the extensive social media users on which the marketing could be conducted. UK is home to an active user base of 54 million (statista.com, 2022). As a result, this would complement extensive access to the B2C target market in the potential market segment. However, one of the major issues would be reaching out to many online-based customers. The core rationale is focused on low followers of the organisation in the social media space, as stated earlier. The implementation process would be creating compelling social media posts coupled with collaboration with multiple influencers across the UK market and in the global space. An extended process would be embedding direct selling links in the social media posts and describing the uniqueness of the products, such as the use of green coffee beans.  

Social media marketing will target DWC customers by promoting the services and products offered through out segmented social media. For example, along with the age group, core geographic area will be UK on which marketing be conducted. USP of the products such as providing different taste within the same coffee types and high nutritional content through green beans will be presented to potential customers. Additionally, regular posting on social media sites would improve brand identity and awareness which would culminate in higher sales figure.

An additional issue would be catering to the data privacy requirement based on the Data Protection Act of 2018 that mandates strict compliance in the personal event data is collected (legislation.gov.uk, 2022). Since targeting the B2C market based on social and technological factors would require collecting and storing secured data. However, this increases the cost of marketing and operations because of the effective encryption of data requirements. Additionally, collecting personal data in a B2C market increases the risk of identity theft and MITM. However, this issue could be controlled by placing customer data through extensive security measures (Jordan et al., 2018).

·       Application of search engine optimisation

In catering to the existing B2B market, the DWC should implement search engine optimisation centric digital marketing. Search engine optimisation (SEO) is the process in improving the visibility of the website in search engines such as Google (Bhandari and Bansal, 2018.). Improved visibility is identified through higher rank in search engines that aids in increasing traffic to a website.

This would be associated with improving the current website by increasing visibility and making the same place at the top of the search engine during a search by relatable terms. Application would include updating the website in a regular manner to attract traffic and linking the same with social media marketing. Additionally, based on the metadata obtained through the access of website cookies, the flow and nature of traffic could be identified. The primary benefit of such an approach would be catering to a combination of B2B and the B2C market, focusing on the HoReCa (Hotel/Restaurant/Catering) segment. The ApplicationApplication of an effective search engine optimisation would mitigate risks associated with social media marketing, such as data protection, reduction of fake enquiries and customer responses. SEO would benefit DWC by increasing the traffic on their website which would increase the customer conversion rate and meet digital marketing requirements.

·       Application of mobile marketing

The application of mobile marketing would complement direct marketing to existing and potential customers in the digital space. Additionally, creating a mobile application would complete effective customisation of products and services, which would reduce operational costs for the organisation coupled with catering to the growing demand for mobile-based services due to the high penetration of smartphones and the internet. The minor issue would be regular real-time analysis of the application and making a version that consumes less mobile space but has many functions, including integration with google maps, to cater to the potential e-commerce market in the long end (Zambrano-Vega et al., 2019)

Developing and marketing through mobile application would enable creation of customised customer profile. Hence, a customised service could be provided to the WDC users. Additionally, through the application, the target of e-commerce market development would be ensured while maintaining strict data security protocols. A premium profile would additionally be provided 24×7 service that will increase customer base.

In all the recommendations, the positioning would be both in the high quality and high price bracket and high quality and low-price bracket. This would complement catering to the intended customer base through the digital channels while restricting the influence of competition directly.

Skills developed

During the delivery of this module, I have developed multiple soft skills and professional skills. For example, I have improved my analysis approach based on extensive relationship mapping. Evidence of the same could be identified in the form of pestle analysis. Each factor was mapped to DWC to understand the impact and identity market segment. Additionally, I have understood different types of marketing and the process required to target a potential customer or existing one. Evidence of this corresponds to recommending social media marketing and search engine optimisation among others.

Similarly, in the professional aspect, I have gained skills regarding various aspects of marketing coupled with its attributes. For example, I have learned about multiple marketing communication mediums in the digital marketing space and the importance of STP (Segmentation, Targeting, Positioning) during a digital marketing space. This would complement me in the practical ApplicationApplication of concepts and theories in the corporate area.

Conclusion (summary of your environment analysis & recommendations)

Overall, it could can be summarised that external and internal factors have a differential impact on the organisation. This is because of the changing dynamics of business coupled with the availability of new technologies that would revolutionise the coffee business across the UK market. Similarly, for meeting the significant issues identified in operating on the niche market, the mentioned recommendation would be helpful. For example, using social media marketing would increase the scope of operations and cater to DWC to operate on the differentiation segment in porter’s generic studies aspect. Additionally, emphasising search engine optimisation will improve reaching out to existing markets in the B2B mode.

References

Bhandari, R.S. and Bansal, A., 2018. Impact of search engine optimization as a marketing tool. Jindal Journal of Business Research7(1), pp.23-36.

Cabbuag, S., 2021. Nostalgia for Normalcy: Online Produsage in a Filipino Food-Related Facebook Group Amidst a Pandemic. Southeast Asian Media Studies3(1), pp.1-1.

darkwoodscoffee.co.uk2022. About Us – Specialty wholesale coffee roaster – Dark Woods Coffee. Available at: https://darkwoodscoffee.co.uk/about (Accessed: 9 March 2022).

darkwoodscoffee.co.uk2022. Awards – Specialty wholesale coffee roaster – Dark Woods Coffee. Available at: https://darkwoodscoffee.co.uk/awards (Accessed: 9 March 2022).

darkwoodscoffee.co.uk2022. Barista Training – Specialty wholesale coffee roaster – Dark Woods Coffee. Available at: https://darkwoodscoffee.co.uk/training (Accessed: 9 March 2022).

darkwoodscoffee.co.uk2022. Specialty wholesale coffee roaster – Dark Woods Coffee. Available at: https://darkwoodscoffee.co.uk/ (Accessed: 9 March 2022).

facebook.com2022. Dark Woods Coffee. Available at: https://www.facebook.com/darkwoodscoffee/ (Accessed: 9 March 2022).

French, S., 2018. How trade unions are mobilising around the challenges of Brexit. LSE Brexit.

gov.uk2022. Marketing and advertising: the law. Available at: https://www.gov.uk/marketing-advertising-law (Accessed: 9 March 2022).

instagram.com2022. Login • Instagram. Available at: https://www.instagram.com/darkwoodscoffee/?hl=en (Accessed: 9 March 2022).

Johnson J 2022. Topic: Internet usage in the UK. Available at: https://www.statista.com/topics/3246/internet-usage-in-the-uk/#topicHeader__wrapper (Accessed: 9 March 2022).

Jordan, G., Leskovar, R. and Marič, M., 2018. Impact of fear of identity theft and perceived risk on online purchase intention. Organizacija51(2), pp.146-155.

legislation.gov.uk2022. Data Protection Act 2018 Available at: https://www.legislation.gov.uk/ukpga/2018/12/contents/enacted (Accessed: 9 March 2022).

Ritz, W., Wolf, M. and McQuitty, S., 2019. Digital marketing adoption and success for small businesses: The application of the do-it-yourself and technology acceptance models. Journal of Research in interactive Marketing.

Robichaud, Z. and Yu, H., 2021. Do young consumers care about ethical consumption? Modelling Gen Z’s purchase intention towards fair trade coffee. British Food Journal.           

statista.com2022. UK: social media usage 2021 | Statista. Available at: https://www.statista.com/statistics/507405/uk-active-social-media-and-mobile-social-media-users/#:~:text=The%20United%20Kingdom%20(UK)%20was,the%20population%20of%20the%20UK. (Accessed: 9 March 2022).

Struger M 2021. Outstanding Smartphone Usage Statistics UK Edition [2021]. Available at: https://cybercrew.uk/blog/smartphone-usage-statistics-uk/#:~:text=The%20mobile%20internet%20penetration%20rate,in%20the%20world%20at%2078.9%25. (Accessed: 9 March 2022).

youtube.com 2016. Under Milkwood – Dark Woods Coffee – Golden Fork from North of England Available at: https://www.youtube.com/watch?v=WRtl8tIcK7M (Accessed: 9 March 2022).

Zambrano-Vega, C., Acosta, G., Loor, J., Suárez, B., Jaramillo, C. and Oviedo, B., 2019, February. A sales route optimization mobile application applying a genetic algorithm and the Google Maps navigation system. In International Conference on Information Technology & Systems (pp. 517-527). Springer, Cham.

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