CAFFE NERO:

FONTS

INTERNET MARKETING

Adapted from: West, Ford & Ibrahim (2012)

SALES MANAGEMENT

IDENTIFICATION

Sales Management:

UK saw 15% increase

online (Mintel, 2012)

/ Personal selling is part of the Promotional Mix

/ Involves Selling; Consulting; Advising; Recruiting; Training; Allocating; Motivating; Rewarding; Monitoring

INTERACTION

CUSTOMISATION

IIDC

Sales Force:

Search Engine Optimisation (SEO)

Objectives

Size

DIFFERENTIATION

Pay Per Click (PPC)

Evaluating

Recruitment, selecting

& training

Mixed System - integrated online/offline

OBJECTIVES

Develop strong customer relationships

SIZE

Precise and Measurable: SMART

Caffe Nero:

SERVICE MARKETING TRIANGLE

Give Caffe Nero sales force direction and purpose:

Department Stores:

EVALUATING

• 530 stores nation wide (Keynote, 2013), sell in 100 of these stores - 1 trained employee per store
• Up to small kitchen appliance department within each store - CN will supply training for staff

(Keynote, 2013)

Caffe Nero

RECRUITMENT & TRAINING

Extended marketing

mix: People

Ultimately, huge

impact on customer

satisfaction and profitability

Train to encapsulate

brand culture and identity:

Integrated with IMC

Recruit those with skills

specific to personal selling

Passionate

& motivated

Train with the idea

of rewarding sales force

Often carries negative associations, so specific tools to be chosen

"to change behaviour towards a customer based upon what they tell you, and what you already know about them is the centeral strategic process to differentiation in e-marketing' (Jiang, 2002, pp. 168-183)"

This will increase customer database and target market information

Internal

marketing

External marketing

(Keynote, 2013)

Employees

Customers

Interactive

marketing

(West, Ford & Ibrahim, 2012)

RECAP

Archetype:

• Everyman

Brand Attributes:

• Convenient - 600 stores
• Competitively priced
• Reputable brand
• Expert test
• Guarantee

RETAILING

REFERENCES

1. 'Specific Retail Strategy' used instead of 'General Strategy'

2. Use specific 'Retail Mix' components...

• Retail Week, 2013. Price Premiums. Retreived 26 November 2013, from http://www.retail-week.com/topics/supply-chain/price-premiums/5030576.article
• Google Maps (2013). Google Maps. [online] Retrieved from: https://maps.google.co.uk/ [Accessed: 27 Nov 2013].
• Jones, M., Mothersbaugh, D. & Beatty, S. (2003). The effects of locational convenience on customer repurchase intentions across service types. Journal of Services Marketing, 17 (7), 701--712.
• Jiang, P. 2002. Exploring consumers' willingness to pay for online customisation and its marketing outcomes. Journal of Targeting, Measurement and Analysis for Marketing, 11 (2), pp. 168-183.
• West, D., Ford, J. and Ibrahim, E. (2012). Strategic marketing. Oxford: University Press pp. 424
• Keynote (2013). Small Domestic Electrical Appliances - 2013 - Market Size. [online] Retrieved from: https://www.keynote.co.uk/market-intelligence/view/product/10858/small-domestic-electrical-appliances/chapter/4/market-size?highlight=coffee%20machine [Accessed: 27 Nov 2013].
• Keynote. (2013). Coffee & Sandwich Shops - 2013 - Coffee Shops. [online] Retrieved from: http://www.keynote.co.uk/market-intelligence/view/product/10826/coffee-%26-sandwich-shops/chapter/4/coffee-shops?highlight=coffee%20shops%20uk [Accessed: 27 Nov 2013].

PRICING

LOCATION

• Only component of the marketig mix to generate revenue

MERCHANDISING

Brand Extension - Convenience

1. Competitive Pricing

"To ensure success, retailers and services should locate in convenient locations for easy access and that attract the most customers. "

Manage stock and rate of stockturn:

efficient replenishment (Reynolds & Cuthbertson , 2004)

Branded Merchandise Displays

Store layout

2. Price Skimming

(Jones et al., 2003)

(Keynote, 2013)

Prodominantly on the high street (Retail):

3. Price Elasticity - inelastic

Future Products/Services (need satisfiers)

• Current Caffe Nero stores (530)
• John Lewis/House of Fraser/Fenwicks

+

(Google Maps, 2013)

4. Promotional Pricing

Online (E-tail)

+

• Coffee making workshops
• Flavoured syrups
• Branded coffee cups
• Machine cleaning kit
• Barista accessories

• Click & collect service available

• Consistency between retailers - prevents cannabalisation
• Offers to be targeted at our consumer segment, to increase success (Retail Week, 2013)
• Specific promotions nessessary as research shows this increases profit margins (Retail Week, 2013)

Also included as Loyalty Card Benefits/Discounts