The Italian Coffee Shop

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Coffee is a widely consumed beverage in almost all parts of the world. In some regions, coffee consumption has become a culture owing to its associated pleasure. Many restaurants brew, serve branded coffees to their customers who enjoy conversations, friendships, and alliances while enjoying their coffee. It takes good planning and implementation to set up an appealing coffee shop that offer high quality coffee brews to customers. Europe is the most noteworthy consumer of coffee, with Italy, an European nation, ranks 12th among coffee consumers in the world. It also ranks 7th largest consumer in Europe alone translating to a high demand for coffee products (Sadler, 2015). Likewise, coffee consumption has become both a culture and a norm in this region, and the large population that consumes coffee creates an opportunity for the café establishment. Alongside the historical link with coffee, Italy also has a wide variety of coffee preparation and serving including cappuccino, espresso, and latte hence the prospect to select a single specialization or diversify its products.

Facts

In Italy, most of the coffee drinkers prefer bold coffees and more often than not, locals rarely walk about with the cups of coffee in their hands. On the contrary, the beverage is enjoyed by many in quick shots either standing at the counter or in sit-down cafes particularly for lattes and cappuccinos. Nevertheless, Italian locals do not spend much time consuming the tasty drink. Furthermore, the culture and lifestyle of coffee drinkers are embedded in the preparation of good, high-quality coffee with consumers ranging from youths to adults (Amanda, 2016). The presence of trendy cafes with appealing interiors and well-prepared beverages is a culture prevalent in this country. As such, the proposed coffee shop intends to invest in this region whose culture and lifestyle promotes coffee consumption in large quantities.

Ethical Considerations

The café must also consider fairtrade adoption. This process is essential for the provision of economic empowerment to local workers and coffee producers through transparent pricing, enhancing long-term business relationships and respect for labor safety as well as environmental standards (Ford, 2017). In this way, the café participates in corporate social responsibility while at the same time indirectly enhancing the continuous flow of quality coffee. Secondly, customers will always prefer a place where the baristas understand their work, are welcoming and offer a personal environment. Apparently, most big chain coffee shops lack this crucial component. As such, the coffee shop will make sure that staff members are adequately informed, friendly and fit with the brand (O'Conor, 2015). Motivation through monetary and non-monetary gains will also be applied to improve productivity and maintain customers.

Approximately two-thirds of coffee consumers including three-quarters of youths between 16 and 24 years of age buy coffee when out. Based on this insight, the coffee shop will be best established in a busy urban area where the population walking on foot is highest. Although property in such regions is high, the fact that most people drink on the go means that only a small space is required hence reducing the price for lease or buying the property. One area that must also be considered is the creation of a visually charming shop with attention to detail and an expression that honor the Italian coffee culture (BBC News, 2016).

Logistics

The shop’s location must be readily accessible to both suppliers and customers hence the need for its establishment in an urban place where most people are walking. Suppliers are crucial for the business thus attention to detail when it comes to sourcing and supply is paramount, coupled with treating well the suppliers. Quality is everything, and it begins with producers to the consumers (O'Conor, 2015). The shop will, therefore, ensure strict guidelines for the procurement, preparation, and distribution of coffee.

Q2. Marketing Mix

Product

Rather than focus on one or two coffee products, the coffee shop can utilize the wide variety of available coffee beverages and serve customers. Beginning with the local order espresso, other varieties including Caffè, cappuccino, caffè Americano, café lungo, café macchiato, latte macchiato, caffè corretto and caffè shakerato (Amanda, 2016). On top of that, most of the favorite cafes offer coffee only with a few providing pastries and even much fewer businesses with fresh bread. The coffee shop can improve on this prospect by venturing into product diversification including freshly baked pastries.

Price

As mentioned before, coffee consumption in Italy cuts across the youth and adults. For this reason, the pricing must be satisfactory to all the potential customers. Although the government taxes may affect the cost of coffee, it is essential to utilize competitive pricing based on the existing market prices (Bhasin, 2016). By matching the value of the beverage with consumer demand and expectations, customers are likely to flock more to the café.

Place

The location of the business must be in an area where business can be generated. The coffee drinking culture calls for an approach that involves targeting large masses on foot, for instance, the city centers, strategically located outlets in entertainment centers, near universities and even shopping malls. Foot traffic is the primary consideration for place followed by the overall population that is likely to pass by and consume the product. Furthermore, the design and display of the business will be developed in a manner that can be easily recognized from a distance, as well as an ambient interior that appeals to the customers (The Startups Team, 2017).

Promotion

The coffee shop’s campaign must involve the utilization of media mainly local magazines to advertise the location and products offered. The use of television advertisement is also an option although the cost may have to be reviewed first. Another promotional strategy is the application of sales campaigns which involve the provision of special rewards to customers. This approach acts as both a loyalty program as well as a promotional tool to reach new customers while at the same time maintaining the existing clients (The Startups Team, 2017). Lastly, social media sites including Facebook and Twitter are essential platforms to display the uniqueness of the coffee shop and entice new customers.

References

Amanda, 2016. What to Know about Coffee in Italy - and where to Find the Best Coffee in Rome. [Online] Available at: http://www.revealedrome.com/2016/03/coffee-in-rome-italy.html [Accessed 31 October 2017].

BBC News, 2016. Starbucks to open first coffee shop in Italy. [Online] Available at: http://www.bbc.com/news/business-35684831 [Accessed 31 October 2017].

Bhasin, H., 2016. Marketing Mix Cafe Coffee Day. [Online] Available at: https://www.marketing91.com/marketing-mix-cafe-coffee-day/ [Accessed 31 October 2017].

Ford, J., 2017. Should Your Business Adopt Fair Trade Practices?. [Online] Available at: https://quickbooks.intuit.com/r/green-business/business-adopt-fair-trade-practices/ [Accessed 31 October 2017].

O'Conor, L., 2015. How to start a ... coffee shop. [Online] Available at: https://www.theguardian.com/small-business-network/2015/may/14/how-to-start-coffee-shop-business [Accessed 31 October 2017].

Sadler, P., 2015. Best Destinations in Europe for Coffee. [Online] Available at: http://www.adventuresofacarryon.com/best-destinations-europe-for-coffee/ [Accessed 31 October 2017].

The Startups Team, 2017. How to start a café or coffee shop. [Online] Available at: https://startups.co.uk/how-to-start-a-cafe-or-coffee-shop/ [Accessed 31 October 2017].

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