Black Beans Case Study

PART 2
Analysis of Marketing Outcomes and Areas of Improvement
Marketing metrics are a set of measures that are utilized to determine the marketing
performance of the organization. To effectively achieve this aim, the chosen metrics
should reflect the organization’s industry and strategic position at a point in time. The
metrics should relate to the mission and strategy of the organization and should
investigate the following areas:

Return on market investment (ROMI)

ROMI seeks to determine the profit generated as a result of marketing investment.
This may be determined by the following formula and may be used to determine the
ROMI for the entire organization or a discrete set of products.
Customer satisfaction
If customers are not satisfied with an organization, they will eventually find someone
else to meet their needs, hence customer satisfaction is of vital importance to an
organization. Poor customer satisfaction is usually an indicator of future decline even
if the current situation appears in good shape.

Market Share
Aims to determine the organization’s revenues as a portion of total revenue
generated for a particular market. This is usually done by comparisons of total sales
of an organization verses those of competitors or by organization’s respective share
of usage by consumers.
Specific metrics may be used to determine market share vary and should be specific
to the market and organizational strategy.

Brand Equity
This is the intangible value added to a product because of the brand it bears. Brand
equity may be determined at three levels. The first is organizational, that is, the value
of brand as an intangible asset. The second level is the product. This may be
determined by comparing the price of equivalent branded and ‘no name’ products.
This assumes that all other variables are controlled, to better understand the value of
brand equity at the product level, revenue should also be considered. The third level
of brand equity is that of the consumer and the organization’s ‘mind share’, how
aware consumers are of the organization’s brand.
Cause and Effect Analysis
Marketing objectives
Effect: Increase foot traffic in the café by 30% for 2011.

Cause: Possible factors would be marketing and facility expansion.

Effect: Increase awareness of the Black Beans Café brand by 50% in the Sydney CBD
area in 2011
Cause: Major factor would be from marketing
 Financial Objectives
Effect: A double-digit growth rate for each future year.
Cause: With increase of marketing, profit increases, strengthen with financial
management.

Effect: Reduce the overheads through disciplined growth, and reduced wastage.
Cause: Better operations management and team roles establishment.

Effect: Continue to decrease the variable costs through purchasing and purchasing
from new suppliers.
Cause: effective networking and research and development.

Existing Targets and Market Trends

The market trend for cafés is headed toward a more sophisticated customer. The café
patron today compared to the past is more sophisticated in a number of ways. The
reason for this trend is that, within the past couple of years, café offerings have
increased, providing customers with more and new choices. Café patrons no longer
need to accept a limited number of options and most are not prepared to. With more
choices, patrons have become more sophisticated. This trend is intuitive: it is easy to
observe a more sophisticated café patron in the city market, as well as in major
suburbs, where there are more choices available.

Black Beans Café strongly believes that its customers have become more interested in
speed of service than any other issue, provided they receive quality food. That is why
people patronize the café and are loyal customers.

The market can be segmented into three target markets:

Dine-ins: people that order and eat in the café.
Businesses: business that require prepared food for delivery to their premises (for
business meetings, seminars, etc.); catered morning and afternoon teas and lunches.
Take-away: people who prefer to purchase take-away food to eat at their desk, I the
park, etc.

The Black Beans Café customer is typically aged between 20 and 60, working in
businesses within 250 meters radius of the café. Other customers are people who come
to the CBD occasionally for business, shopping or other reasons.

Market Analysis and Its Effect to the Organizational Objectives

Market analysis consists of the following tools:

 Market Demographics
 Market Needs
 Market Trends
 Market Growth
  Economy
 Political
Based on the market analysis, organizational objectives should be change to
accommodate the market:

Marketing objectives
1. Increase foot traffic in the café by more than 25% for 2011.
2. Increase awareness of the Black Beans Café brand by more than 40% in the Sydney
CBD area in 2011
Financial Objectives
1. More than 10% growth rate for each future year.
2. Reduction of wastage
3. Continue to decrease the variable costs through purchasing and purchasing from
new suppliers.

Documentation of Marketing Performance Review Process

When preparing reports in documenting the marketing performance review process,

once the process of data collection and analysis is completed, the findings must be
communicated. Information and recommendations can be delivered in written format or
as a verbal presentation. The report should:
 Restate the objectives of the audit
 Discuss the main findings of the audit
 Provide recommendations based on audit findings

When preparing a report, consider these questions:

 What is the problem and purpose of the report?

 What is the scope of the report?
 Who is the target audience?
 How much does the audience know about the topic?
 Are there technical terms that may require definition or further explanation?
 What will recipients do with the report?
 What is the length of the report?

Audience analysis
Different audience may require different information at different levels of complexity.
Therefore, it is important to consider in relation to the audience.

Report Format.

 Title page
 Introduction
  Body
 Conclusion
 Recommendations
You may also include the following additional components in your report:
 Executive Summary
 Table of contents
 Attachments or appendices
 Reference list
 Glossary
 Index

Checklist
 Developed a process to analyze marketing outcomes and determine the areas of
improvement.
 Conducted a Cause and Effect analysis to analyze successes and performance
gaps
 Determined the process of analyzing over performance against the existing
targets, study the market trends and revising the targets accordingly.
 Analyzed the changes in market (external) and documented their possible
consequences on the organizational objectives
 Explained the procedure and ways to document the entire marketing
performance review process