7p's analysis for Caff'e Nero'

Topics: Marketing, Pricing, Coffee Pages: 6 (1615 words) Published: November 13, 2013
Service analysis (7P’s) and recommendation : Caffe’ Nero

Caffe’ Nero was founded by Gerry ford in 1997 which aiming to be authentically Italian, serving premium espresso-based coffee, fresh high quality food, and a neighborhood gathering spot by the end of 2000, the Nero team had built 31 cafes and established the company as a national brand and received British Design Council award for best company identity (Official Caffe’ Nero website). Caffe’ Nero considered themselves as both a fast moving consumer good (FMCG) or service provider. when marketing 4P’s strategy is enough the marketing mix is used when assessing the tools that can be used to influence buyer decisions(Kotler et al. 2009) When marketing FMCG the first 4P’s: 1.) product which is value or benefit provide to customer. 2.) place which is distribution channel granting accessible to organization including internet, retailer and wholesaler 3.) promotion which is communicating message and value to customer in relevance to benefit and value of using particulars product rather than the feature of product. and 4.) price which factor that costing to consumer and providing income to organization. of the marketing mix is often sufficient to use (Kotler et al. 2009) .

In addition of the service organization, others 3P’s : 1.) people which refers to customers, employees, management and everybody else involved in it 2.) physical evidence which refers to The surrounding in which the service or product is delivered 3.) process which refers to procedure and activities through the entire process of providing service to customer(Zeithaml & Bitner, 2003) are another major part to considered due to 5 characteristics of the service provider and service receiver that are “intangible, inseparable, heterogeneity and perishable”(Zeitham’, Parasuraman, and Berry,1985). Ensuring majority of the consumer satisfaction service provider make use of these three element transferring from intangible service to more imaginable tangible service in addition of increasing in consumer satisfaction will lead to increasing in profit and brand loyalty.

The marketing mix helps companies to develop better strategies, so that the product or service they offer would target their target market accurately.7P’s strategies help service organization to identify, obtain, manage their competitive advantage and unique selling proposition (USP) this attracts the audience’s attention and place them in the right combination of positioning in the consumer mind and organization real positioning. The model of the marketing mix may be implemented to help the individual and the Company how to produce the new offer to the place of the market. It may also be used to examine the current strategy of the marketing (Hamel & Prahalad, 2010)


Overall market analysis: To integrating analysis of the 7P’s marketing mix accurately marketer needs to know the overall situation and behavior of organization. In addition with designing proper 7P’s strategy to meet their target market satisfaction and maintain customer good relation in the right position.

Target market: In the establishing of Caffe’ Nero retail business mostly intention on coffee lovers, tourists and italian food lover unhesitatingly mains target market is switching to middle income, middle age customer group that looking for their Italian style in culinary art, business people and student. Positioning: Caffe’ Nero position themselves as valuable premium grade coffee provider, cheaper price in comparison to their main competitor integral with strong brand positioning as a European-continental-style chain of coffee shops. Furthermore there already expanded to several country in European union creating a enormous opportunity for synchronizing more ingredient, culture, food in order to enhance their the advantage in positioning.

Unique selling proposition (USP): Caffe Nero's selling strategy importantly stress on its...
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