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Introduction
For a business to continue recording extensive and positive revenue generation, it must expand to countries with the right environment and target segmentation. The FiLLi Café management must assess the corporate tactical objectives to aid the venture in attaining the much-needed aim for growth and critically examine the Australian market as a projected expansion option for the company. At the same time, the report aims to offer an effective marketing plan that will aid in attaining the projected international expansion by utilizing a franchising approach. The FiLLi Café’s executive team will sufficiently deploy the best strategic decisions to help achieve the expansion objectives.
Marketing Management
Overview of the FiLLi Café Organization
FiLLi Café is a casual restaurant that offers delicious and healthy drinks to its customers. The venture started as a small-sized enterprise located at Mamzar, Dubai, in the United Arab Emirates (UAE). However, currently, the company has over 30 physical outlets in UAE, and it has opened other branches in Bahrain, Saudi Arabia, Kuwait, Kuwait, Qatar, and Oman (FiLLi, 2022). At the same time, the entity’s management plans to expand the business in the European Union, the United States, India, Malaysia, Hong Kong, and Singapore.
To a great extent, the firm deploys a franchising model that substantially assists in attaining its international expansion operations. As a result of its success, FiLLi Café employees sell more than 40,000 tea cups across its stores (FiLLi, 2022). The organization’s initial objective was to provide FiLLi tea and FiLLi Zafran tea selling to its clients; however, it has diversified to offer other food products, including FiLLi coffee. FiLLi Café’s mission is to be the most outstanding and preferred tea trademark worldwide by offering exceptional experiences to customers and bonding with them. Even though the firm has been established in other countries, the best alternative is to consider investing in a new market with stiff competition.
Australia as the Chosen Country for the Global Expansion with Reasons
Notably, Australia is the best market segment that multinational entities should consider investing in for their financial growth and performance. First, Australia is the world’s sixth-largest nation, with nearly 26 million individuals (David, 2021, para, 3). The country is extensively urbanized by four primary metropolitan areas: Adelaide, Melbourne, Perth, and Brisbane, making it favorable for restaurants, such as FiLLi Café, to thrive. The country has a gross domestic product of approximately $1.4 trillion, ranking it position thirteen, thus being one of the world’s largest economies (David, 2021, para. 2). In addition, regarding the per capita income, Australia is positioned at number ten. Therefore, it indicates most people can afford to purchase products even during an economic recession. The average country’s population is 39 years old, and almost 70% live in cities and suburban regions (Abd-Aziz et al., 2021, p. 10328). At the same time, the country has a stable government and suitable corporate tax levels, allowing entities, including FiLLi Café, to invest in it. Lastly, it has high literacy, health, and economic diversity levels, making the clients knowledgeable regarding the products offered by new entities in the state.
Tactical Corporate Aims and Marketing Purpose for a Specific Condition
To a great extent, the Australian market is the ideal choice for FiLLi Café to explore global expansion options. However, it is essential to pinpoint strategic objectives that will aid in achieving the established goals. Significantly, the company keeps adhering to its vision and mission statement, which are geared towards positioning the entity as the world’s leading tea brand. The firm aims to enhance its clients’ experience by linking them with high-quality flavored tea (FiLLi, 2022). The organization has been successful in UAE, and it is convenient to establish itself in Australia by opening its first outlet in Sydney.
Marketing management substantially contributes extensively to achieving FiLLi Café’s corporate objectives. Firstly, it involves assessing, planning, executing, and tracking initiatives designed to sustain beneficial exchanges with Australian target consumers to attain organizational goals. Notably, FiLLi Cafés venture growth plan is to deploy the franchising approach that mandates collaboration with Australia’s local investors. The primary aim is to ensure that Zafran tea, the entity’s specialty product, is accessible to most Australian-grounded consumers. The action rhymes with the firm’s goal of placing FiLLi’s outlets in core cities worldwide, enabling tea lovers to enjoy Zafran tea’s unique flavor. FiLLi Café has enjoyed exponential growth since its establishment, culminating in over 42 physical stores across various countries (FiLLi, 2022, para. 3). Figue1 showcases a typical FiLLi Café physical store in UAE, which can effectively host approximately 200 clients. The company will continue recording improved revenue generation by utilizing the franchising approach. FiLLi Café’s corporate objective is to attain 30% growth in the next five years. Significantly, the success of a given company depends on the efforts of a highly committed and qualified marketing team.
There are various marketing goals set by FiLLi Café management, such as delivering high-quality tea services across the world, which has resulted in its immense growth. The firm has pinpointed the demand to produce standardized tea as one of the primary contributors to the brand’s popularity. In addition, the company management’s effective decisions have increased customer loyalty and improved customer value levels in the UAE (FiLLi, 2022). However, attaining the same in a global market can be challenging, with minimal brand popularity. As a result, the primary marketing goal is to escalate FiLLi Café’s recognition in the Australian market by strategically placing its outlets in Australia’s core metropolitan regions.
Another marketing goal of FiLLi Café is to develop and sustain effective leadership. Its clients will be able to address their needs for the quality of tea products to the company’s management, who are willing to help them solve the impending issues. By venturing into the Australian market, through appropriate enhancement of customer relationship management by the marketing executive team, it is possible to escalate the daily number of sold cups. The company is expected to face stiff business rivalry from established brands, including Tea Cosy (Smith, 2018). However, having a better administration enables proper use of the franchising model and focuses on client value and tea standards.
FiLLi Café’s executive’s primary priority is the company’s growth in the Australian market. However, there is an increased need to navigate various tactical approaches to maintaining the local market management status. The company concentrates on manufacturing non-reproducible tea, for example, Zafran (FiLLi, 2022). However, huge competition can result in increased chances of producing similar products. Therefore, there should be an implementation of effective mechanisms aimed at increasing brand reputation. Therefore, investing in research and development will enable the company to attain its long-haul objective of maintaining the most loyal consumers.
How to Achieve Corporate Objectives by Using Marketing Plan
A marketing plan aims at offering a comprehensive blueprint that must be executed to achieve organizational objectives. Regarding FiLLi Café’s case, the goal is to venture into the Australian market by deploying the entity’s franchising approach. Significantly, the scheme will highlight the techniques utilized to popularize Zafran tea in Australia. The firm has recorded extensive business success in UAE, and it is worth using its previously applied marketing models. However, since the local market in UAE is diverse from that of the Australian target group demographics, more research is needed. The marketing plan’s objective would be to introduce FiLLi Café’s brand in a new market. Resources and tools are required to ensure the firm’s presence in the Australian market is sufficiently felt. Proper blueprint usage will increase Zafran tea’s popularity while escalating client value. It is vital to comprehensively analyze the components that will help implement the marketing plan effectively.
At first, the most crucial component includes the mission and the vision statement. FiLLi Café’s mission focuses on offering an experience that persuades clients and ensures they bond with the aroma of the flavored tea. At the same time, the company’s vision is to be the biggest and a highly recognized teal brand globally by amalgamating individuals’ love for tea. Therefore, such elements enable FiLLi Café to attain its organizational objective of advancing consumer value by providing a high-quality seasoned tea. On the other hand, FiLLi Café’s organizational structure is essential in making the business entity attain the planned corporate aims. Figure 2 illustrates how the store/ outlet manager is mandated with the company’s management operations and functions. FiLLi Café’s management must effectively deploy the present human resource proficiency to ensure the essential administrative elements, such as finance, resource distribution, logistics, and marketing, are sufficiently implemented.
In addition, key performance indicators (KPIs) and goals are key components of the marketing plan that aid in attaining FiLLi Café’s objectives. The entity’s exponential expansion has escalated the number of outlets outside and within the UAE over the past five years. At the same time, the daily cups sold have relatively increased. Figure 4 showcases the elevated rate at which FiLLi Café has improved the capacity of the sold cups since its establishment in the UAE. On the other hand, figure 5 depicts the exponential growth of the number of stores opened by the FiLLi Café management. Therefore, the daily cups sold and the number of outlets are essential factors that are deployed to measure the business performance.
Moreover, it is essential to consider various metrics while assessing venture progress and effectiveness. For example, FiLLi Café’s market plan efficiency will be evaluated using various KPIs, including revenue by store, outlet’s profitability, the number of restaurants opened in the next year, daily cups sold, average expenditure per head, income per available seats, and table turn time. All these KPIs will assist in measuring FiLLi Café’s performance in all newly designed outlets in the Australian market. Significantly, during the first year of venturing into Australia, the company’s key purpose would be to increase awareness and brand popularity. Therefore, multiple metric-driven goals would assist in the marketing plan’s success. They include increasing daily cup sales by 20%, opening 3-5 stores within two years, minimizing costs per restaurant by 10%, and escalating revenue generation per outlet by 8% (FiLLi, 2022). The KPIs would ensure the company management tracks FiLLi Café’s venture performance and determine whether it was ideal for establishing the firm in a new market.
Furthermore, another element of the marketing plan that aids in achieving the organizational objectives is the target audience. To a great extent, Australia is classified as a developed nation, and its demographic resembles that of the UAE. However, the latter comprises of Muslim majority, and the former is highly Christian-based. Nevertheless, Australian people’s income and spending patterns effectively match FiLLi Café’s target market. The primary category of the audience involves humans aged 18 and above, mainly living and working in metropolitan areas with annual average earnings of $30,000 (FiLLi, 2022). In addition, they must have a high preference for flavored tea, love visiting small or medium-sized café, chat at restaurants for extended periods, and frequently tour the beaches.
The primary objective involves targeting a specific market niche, whereby even though there are other business rivals in the hospitality industry, it will assist in enhancing customer value. Notably, outgoing and highly literate humans characterize the Australian market, particularly in cities, such as Melbourne, Adelaide, and Sydney. After work, FiLLi Café’s management aims at uniting all people at their restaurant with their flavored tea, thus increasing the firm’s revenue generation.
In addition, for the marketing plan for FiLLi Café to be effective, it must embed and utilize positioning and penetration strategies. The organization’s main prowess is based on the distinctiveness and the high quality of Zafran tea products. Even though the business entity is entering the Australian market intending to merchandise tea brands to consumers aiming for enhanced value, it is focused extensively on affordability issues. The prospective clients must be carefully presented with a well-designed and prepared menu that serves their monetary prerequisites and considers the customer’s safety and health concerns. While the established teahouses in Australia have a high customer base, FiLLi Café’s market entry strategy is grounded on the exclusivity and superiority of the Zafran tea brand, which retails at $8 (FiLLi, 2022). The products offered at FiLLi Café are cheaper than those provided by business rivals, including Tea Cosy. Considerably, the distinct nature and the traditional value of Zafran tea and the associated menu are the core prowess towards attaining the venture’s market penetration and positioning approaches.
Another crucial element of the marketing plan is the content initiatives and techniques. The alternative of deploying the franchising approach indicates that FiLLi Café’s management will utilize marketing promotion strategies. However, the firm’s executive reserves the right to determine the standard and the kind of content used (Kim and Kim, 2018). At the same time, there are various quality measures adopted to help the business owner establish a physical store. To a great extent, Zafran tea’s popularity acts as a strong marketing option, which challenges other competitive players in the Australian market. Nevertheless, it is vital to outline and assess the much-needed schemes deployed to publicize the brand’s presence.
Notably, Australia’s target audience entails highly mobile people who constantly use smartphones and the internet as the core source of information. The FiLLi Café’s marketing team must create easily distributable content via social media platforms, such as YouTube, Facebook, Instagram, Twitter, and Pinterest. Specifically, it is vital to utilize infographics, videos, and blogs. At the same time, it is crucial to use alternative adverts in traditional print media, including television, magazines, radio, and newspapers, which are accessible to many local populations (Kotler et al., 2019). The efficiency of the pinpointed channels in assessing the success of the market plan will be measured using multiple KPIs. Pageviews and feedback will determine the effectiveness of promotional campaigns and social media. In addition, Google analytics will be deployed to calculate the amount of traffic generated in emails and blog posts.
For the marketing plan to be successful for the Australian target audience, FiLLi Café’s employees should undertake a comprehensive business rivalry assessment. The FiLLi Cafés management must conduct a detailed evaluation of the primary tea in Australia as the company enters a market controlled by reputable coffee restaurants. Therefore, the executives will understand the entity’s positioning in the new market. The assessment procedure assists in identifying weaknesses and strengths related to the established venture concentrating on determining the opportunities to be harnessed (Kim and Kim, 2018). Since the Australian market is highly diverse, conducting business rivalry analysis countrywide remains challenging. Therefore, the assessment process strictly concentrates on tea cafés in Sydney.
Upon entry into the Sydney market, various tea houses create an environment of stiff competition for FiLLi Café. At first, the Tea Room QVB is situated at the Romanesque Victoria building in Sydney. It offers a favorable casual environment for its clients as the restaurant has elegant décor and furniture. The café produces highly standardized tea infused with herbal content and provides various gourmet food that sufficiently meets the customer’s expectations (Smith, 2018). Tea Room QVB has extensively invested in social media marketing, enhancing general brand recognition. In addition, Vaucluse House Tearooms is another competitor and is strategically developed to enable its customers to have an idyllic view of Vaucluse Museum as they enjoy different tastes of various tea brands. As a result, the café attracts a high number of clients, making it have improved revenue generation. The company management has ensured that the tea leaves are supplied from its owned estate gardens.
On the other hand, the Rabbit Hole Organic Tea Bar offers high-quality and natural tea, focusing on healthy eating and nutrition of the consumers. The restaurant opened in 2015 and has a larger customer base as it has more than five branches in Sydney (Smith, 2018, para. 2). At the same time, T Totaler was established as a family venture concentrating on Australian-grown tea and native botanicals. The company has invested substantially in research and development, opening four more branches in Sydney. The entity management has visited more than 20 nations to establish the best quality tea (Smith, 2018). Apart from serving organic tea, the venture provides loose-leaf teas that are packaged and labeled well. At the same time, the establishment offers training and workshop services for its customers who want to be educated and receive extensive information regarding tea production and blending.
Lastly, another notable business rival company in the Australian market is Tea Cosy. The company offers exceptional elegance and vintage as it is situated in a 180-year-old building (Smith, 2018). The décor and interior design create a casual environment recreating the 18th-century aura (Smith, 2018). The coffee company’s executive boasts of its ability to prepare and offer handmade scones and tea cosies, matching the client’s expectations. The tea and coffee are served in old vintage saucers and cups that enable the customers to visit the place, making the company record high profits.
Lastly, developing a budget is inevitable for the marketing plan to attain the organizational objectives. The franchising approach highlights that the business owner must use the most efficient marketing channel to publicize the brand. Therefore, FiLLi Café management needs to allocate adequate resources that will be utilized to cover multiple marketing activities. The budgetary allocation helps finance various promotional tools, such as advertisements and social media campaigns (Kotler et al., 2019). Generally, the marketing activities are expected to cost nearly $26,000, with room for adjustment. Table 1 comprehensively summarizes the budget allocation for FiLLi Café’s marketing campaign in the Australian market.
Table 1: Marketing Budget
The primary processes of marketing management involve conducting market research for the target audience, setting clear organizational goals, such as acquiring new customers, and enabling task automation to utilize resources efficiently and remain competitive. Other procedures include monitoring promotional activities, including social media and email campaigns, and ensuring all the performance goal metrics of FiLLi Café are met (Jell-Ojobor, Alon and Windsperger, 2022). The marketing plan substantially helps FiLLi Café’s management achieve the company’s objective of expanding and thriving in the Australian market.
Tools Used to Develop a Strategic Marketing Strategy
Application of Strategic Marketing Process and Models for the Organization
At first, the strategic marketing process defines how a company acts to attain its set direction goal. To a great extent, it encompasses a detailed assessment of the present Australian market situation to determine FiLLi Café’s preparedness for its expansion plan. The three common phases of the marketing process include planning, implementation, and evaluation. The common strategic marketing models include the 7Ps marketing mix to reach the target audience and SWOT (strengths, weaknesses, opportunities, and threats) analysis for establishing the capability of FiLLi Café to thrive in a new market (Kim and Kim, 2018). Therefore, depending on the company’s prowess, executives can develop marketing strategies to penetrate a competitive environment (Kotler et al., 2019). Even though FiLLi Café has sustained its popularity in the UAE’s teahouse sector, it faces challenges and threats that can affect its general venture operations. The available business prowess and chances outweigh the threats and weaknesses, and FiLLi Café can compete with other rivals and succeed in Australia. Table 2 illustrates various strengths and opportunities to help FiLLi Café successfully expand and thrive in the Australian market by utilizing its competitive advantage.
Table 2: FiLLi Café SWOT analysis
Critical Analysis of the difference between Marketing Management and Strategic Marketing
Significantly, strategic marketing is a long-haul method that enhances the venture’s competitive advantages. On the other hand, the marketing management’s objective is to establish a short-term tactic that assists the companies, including FiLLi Café, in attaining promotional goals. Therefore, marketing management is highly concerned with the demand to develop the business brand and advertise the entity, particularly to a new market segment, including the Australian audience (Sahir and Rosmawati, 2021, p. 460). Various marketing mix and segmentation strategies can be analyzed and evaluated to implement FiLLi Cafés marketing management. Assessing the 7Ps principles and the marketing blueprint assists the FiLLi Cafés executive to understand the short-haul goals that will enable the company to enter the Australian market effectively.
In addition, the tactical marketing goal is to drive the company to the right decision, using a top-bottom approach while making decisions to search for new opportunities from the existing venture. At the same time, marketing management focuses on building a brand and the market of the entity and utilizes bottom-up methodology while making choices to establish the present opportunities in a set business (Kotler et al., 2019). Its leadership requires discipline, proactiveness, and control, and marketing management is regarded as stable with fewer hindrances (Hanaysha, Shaikh and Alzoubi, 2021). Strategic marketing faces many obstacles, mainly from online technological developments, and the leaders must be proactive before the market reacts.
The Application of Marketing Tactics and Techniques
The Proposed Segmentation and Targeting for Australia
One highly deployed marketing technique and tactic is segmentation and target market. The typical market subdivision approaches are socioeconomic, geographic, and demographic. In the demographic methodology, various clients are grouped based on age, gender, annual earnings, family size, and occupation. They help business executives collect information about their target market. On the other hand, the socioeconomic segment distinguishes customers grounded on education, occupation, and income levels (Kotler et al., 2019). It ranks whether the target audience is upper or working class, particularly when setting the products’ prices. Even though international companies vent similar commodities, they deploy geographic segmentation to account for diverse purchasing power, competition, buying patterns, and tastes that customers from varying areas have.
For the FiLLi Café to grow and be established in Australia effectively, the management must identify the projected client to pursue and attain the value obtained by selling the company’s products. The entity’s executive must deploy segmentation and targeting approaches to identify prospective clients and make the Zafran tea product well-known across Australia. One vital marketing plan segmentation methodology that the company should adopt is demographics, which will assist FiLLi Café’s management in comprehending the prospective customers’ socioeconomic features (Kim and Kim, 2018). Significantly, FiLLi Café’s executives are firstly targeting people working and living in Sydney and the surrounding suburbs. In addition, the organization’s brand is aimed at individuals aged above 18, earning approximately $30,000 annually (FiLLi, 2022, para.4). The strategic objective is to reach clients who are not discouraged by costs while focusing on highly standardized flavored tea. As a result, outgoing, social, and mobile people are the ideal consumers targeted by FiLLi Café. Lastly, the customers targeted must love frequently touring the beaches, visiting small or medium-sized café, and chatting at restaurants for extended periods with a cup of hot and seasoned coffee or tea.
To a great extent, the best methodology for targeting and acquiring clients in the identified Australian market is building on the frequently FiLLi Café’s brand popularity. Even though the Zafran-flavored tea is highly appealing, FiLLi Café’s management must accommodate an option of making customized tea grounded on the client’s preferences. At the same time, the company’s executive team must develop a technological order system that allows people to create personalized menus using recipes offered due to the popularity of online teahouses (Kotler et al., 2019). Therefore, the customers will have the option to have their preferred product delivered to them. The primary objective is to ensure that the venture can sufficiently satisfy its target audience’s demands.
Marketing Mix Development of FiLLi Café in the Australian Market
Even though multiple models are deployed for strategic marketing, the ideal solution for the FiLLi Café venture context in its Australian market is using the 7Ps marketing approach. The methodology utilizes the component of the product, price, people, physical location, promotion, process, and place when assessing the merchandise mix in a market plan (Kotler et al., 2019). It is vital to perform a comprehensive appraisal of the core components in the 7Ps method to evaluate the fitness of the business entity in the suggested growth in Australia. Notably, FiLLi Café is already a dominating entity with a robust presence in manufacturing and selling highly seasoned tea. All the components of the marketing approach assist in evaluating FiLLi Café’s appropriateness and readiness in the Australian market.
At first, the Australian market provides all the necessary raw materials, including tea leaves, that would make the FiLLi Cafés product of Zafran tea to be produced cheaply. In addition, the product would thrive well in reaching high-end income earners within the larger Sydney metropolitan city and the surrounding suburban areas. Even though FiLLi Café might not offer the existing prerequisites among the customers oriented toward the supply of organic and herbal tea, Australia has vendors to supply them and help the Zafran tea brand to flourish in the existing market landscape (Hitt, Arregle and Holmes, 2021). The primary competitors, including T Totaler and Tea Cosy, have substantial popularity in the vast coastal Sydney, and the product imitation of Zafran tea might be inevitable. Since most coffee and tea in Australia are made of Chinese blends, FiLLi Café can produce a diversified product.
Regarding the price, most teahouse companies in Australia have adopted an affordable pricing strategy. On the other hand, the most established entity’s in the Middle East and the UAE, such as FiLLi Café, have adopted a discounted cost technique, which has led to their progress in acquiring improved revenue generation. Therefore, using the competitive pricing model in the Australian market enables companies like FiLLi Café to solidify their expected business performance level. Summative comparisons of the established teahouses, including Tea Cosy in Australia, indicate that FiLLi Café will provide the best competitive prices in Sydney. In Australia, most teahouses, such as Tea Room QVB, Tea Cosy, and T Totaler, offer tea and coffee prices with an average price of $12, while the cost of products charged by the UAE’s entities, such as FiLLi Café is relatively $8 (FiLLi, 2022, para. 3). In addition, the Australian government supports franchise ventures, and it will enable FiLLi Café to attain its key mission of improving client value.
Another crucial aspect of the 7Ps marketing mix is the promotion component. Australia’s commonly used promotional tools include social media, search engine optimization (SEO), traditional print media, email campaigns, and banners and brochures. Even though the presence of FiLLi Café might not be tangible in the Australian market, the freedom to use such activities will enable the brand to continue expanding its popularity across Sydney. The Australian government allows international companies to use various business expansion strategies, including marketing, to increase their brand recognition among the targeted users (David, 2021). In addition, the Australian administration does not interfere with the business leadership; therefore, FiLLi Café’s management would be able to make the effective decision to thrive in the country’s tea production and blending sector. Therefore, the same promotional strategies deployed by FiLLi Café in the UAE, such as social media and traditional print media, are available in Australia, thus making the company sustain its brand popularity.
Furthermore, FiLLi Café’s executives have embraced important initiatives to enhance the brand’s popularity on dominant social media platforms such as Facebook, Twitter, YouTube, and Instagram. Among all the member states of the Gulf Corporation Council (GCC), FiLLi Café is ranked to have the highest SEO searches (FiLLi, 2022). The company management uses easily distributable vouchers and word of mouth to promote the business. All these promotional strategies can be deployed in Sydney and ensure FiLLi Café maintains the same ranking level within the city’s expansive marketing environment. Notably, the efficiency of the promotional techniques utilized to evaluate the brand’s recognition status remains the prerogative of the strategies deployed by the respective business owner.
Another essential aspect for consideration is people, which will determine the success of FiLLi Café in the Australian market despite having many committed workers who contribute positively to attaining general organizational objectives. To a great extent, the employees must have a positive attitude and spearhead their efforts toward improving the quality of service and customer value (Goh and King, 2020). Therefore, all business stakeholders in the Australian market must be coordinated to ensure business success, including policymakers, customers, creditors, government officials, and vendors. FiLLi Café has almost 500 subordinates working across various physical stores (FiLLi, 2022, para 2). The customer reviews indicate that the company staff is accommodating. The company’s staff’s desire to establish FiLLi Café as the leading global flavored tea provider has precipitated the demand to secure the services of top blenders worldwide.
Significantly, FiLLi Café has the most qualified and experienced tea blenders with immense knowledge and capabilities that will enable the company to thrive in Australia. Notably, FiLLi Café is better positioned to challenge the market leadership of existing and established ventures, including QVB and T Totaler, in the respective market domain (Smith, 2018). In addition, the company focuses on recruiting the best talents in Australia that would immensely offer their skills within production, sales, and tea blending discipline. Therefore, experts and workers have largely contributed to the FiLLi Café’s popularity and best ranking at the UAEs food and beverages accreditation standards.
Another substantial element of the 7Ps marketing mix is the place. The FiLLi Café’s franchising approach indicates that all the physical outlets must deploy an arrangement accommodating large, medium, and small-sized customer bases. Significantly, FiLLi Café’s management does not have extensive limitations regarding a given store’s geographical location. For example, most FiLLi Café outlets in UAE are small kiosks in normal containers (FiLLi, 2022). Therefore, in Australia, the company can establish the business in low-budget rental areas with an adequate population to purchase the products. However, the management ensures all the establishments adhere to the set stands of décor and elegance.
Consequently, it is highly possible to have many FiLLi Café stores in Australia, provided it meets all the venture criteria of expansion. To a great extent, FiLLi Café will have a high competitive advantage compared to other companies, including Vaucluse House Tearooms and Tea Cosy, which substantially dwells on heritage and vintage buildings (Smith, 2018). Considerably, the operational approach deployed by the FiLLi Café management largely serves to assist the upcoming investors in developing and claiming the Australian market niche, which acts as an untapped market segment. For instance, the low-income will have increased accessibility and freedom to acquire highly standardized season tea offered at premium prices at firms, including Tea Rooms QVB.
Furthermore, the sixth component of the marketing mix, which is vital, is the physical evidence. Undeniably, the natural presence of FiLLi Café is unprecedented as it has over 40 stores within and outside UAE (FiLLi, 2022). The FiLLi Café is a registered member of GCC, enabling the entity management to expand its business operations within the larger Middle East areas. In addition, the venture executive has established a blueprint to see the construction and development of 6 extra outlets in the UAE (FiLLi, 2022, para. 3). company does not require to be established in physical infrastructures and buildings as it started as a roadside coffee house. Generally, FiLLi Café’s objective is to establish its stores in convenient regions of operations, whereby the customers can settle and enjoy their flavored Zafran tea.
Lastly, the process aspect of the 7Ps marketing mix is essential to ensuring the business success of FiLLi Café. The company was established in 2004, and its operational approaches, such as supply chain mechanisms, have been substantially improved (FiLLi, 2022, para. 2). As a result, FiLLi Café’s management must utilize the present operational methods and procedures to restate the company effectively in the Australian market per the proposed expansion plan.
Considerably, the business entity’s tactical aims are propelled towards enhancing client value and providing a premise for offering a high-quality seasoned Zafran tea. In addition, various existing processes can support FiLLi Café’s venture operations within the expansive Sydney metropolitan area regarding distributions, payment methods, and workers’ relationship management.
The proposed entry to the Australian market would face minimal obstacles as the company has established itself in the surrounding trading zones, including Malaysia and Singapore. Nevertheless, various anticipated problems regarding Australia’s venture regulations and policies may affect FiLLi Café’s progress during the initial stages of establishment, such as acquiring a business operation license and paying other fees (Gyenge et al., 2019). Therefore, while trying to comply with Australian administrative standards, FiLLi Café may not offer the best services to the clients.
Comparison of the Marketing Mix (7Ps) with the Chosen Competitor (Tea Cosy)
Even though many rival business companies are situated in Sydney, Tea Cosy has been selected to make a comparative analysis based on the marketing mix. Regarding the place, most of the stores of Tea Cosy are located in the Sydney central business district (Smith, 2018). There are approximately five branches across the Australian market. On the other hand, FiLLi Café is highly positioned as it is located in various regions, including Malaysia, Singapore, Qatar, Oman, and the United States (FiLLi, 2022). However, other competitors, such as Tea Cosy, threaten the market entry of FiLLi Café. In addition, Tea Cosy is strategically located in an 18th-century structure, attracting people to visit the place and enjoy the aura of an ancient environment (Smith, 2018). Tea Cosy is the most dominating teahouse in Sydney’s tea market.
Concerning the product element, Tea Cosy offers handmade vintage and organic tea and provides other diversified food products. For example, apart from producing traditional black tea and scones, Tea Cosy manufactures alcoholic drinks, including Tasmanian premium beer and sparkling iced tea (Smith, 2018). At the same time, FiLLi Café relies on its signature Zafran tea product to gain popularity, and therefore it can face extensive competition from Tea Cosy (FiLLi, 2022). The other aspect of the marketing mix that differentiates the two companies is people. FiLLi Café’s management only hires experts to ensure that they make high-quality and freshly prepared Zafran tea and ensure the customers are satisfied with the services and items offered by the company. On the other hand, Tea Cosy employs young individuals with minimal tea production and blending experience.
In addition, Tea Cosy and FiLLi Café have diversified prices attached to their product. At first, Tea Cosy embraces a premium pricing strategy, while FiLLi Café has adopted an affordable and competitive cost initiative. For example, Tea Cosy’s tea and coffee prices average $12, while FiLLi Café is relatively $8 (FiLLi, 2022, para. 2). Therefore, FiLLi Café’s management can ensure the company continues offering the same commodity prices in the Australian market to attract more customers. Regarding the physical evidence component of the marketing mix, Tea Cosy is situated in high-end buildings, while most of FiLLi Café’s outlets are located in small kiosks (Gyenge et al., 2019). Overall, FiLLi Café’s goal is to establish its stores in convenient areas of operations, whereby the clients can settle and enjoy their flavored Zafran tea.
Furthermore, the common promotional tools FiLLi Café’s executive adopted for effective entry into the Australian market include traditional print media, SEO, and campaigns. At the same time, Tea Cosy substantially deploys social media platforms, such as Facebook, Twitter, and Instagram (Smith, 2018). Lastly, concerning the process component of the 7Ps, FiLLi Café has an elaborate employee relationship management and improved payment methods, contrasted to Tea Cosy, which focuses on manual billing systems and has deteriorated worker engagement resulting in poor business operations.
Evaluation of Marketing Tactics Employed
The common marketing tactics deployed include SEO (blog posts), traditional print media, strategic automation (emails), and social media platforms (Facebook, Twitter, Pinterest, and Instagram). To a great extent, FiLLi Café can thrive in the Australian market as the tactics will help make the company’s goals a reality. For example, through SEO searches, most people develop extensive awareness of the products offered at FiLLi Café (Lee, Hallack and Sardeshmukh, 2019). Therefore, influencing customers to purchase the firm’s Zafran tea makes the entity increase its client base and record significant profits. At the same time, the deployment of social media platforms is less expensive than traditional print media. Most individuals in Australia use various social media platforms, such as Twitter, and companies, including FiLLi Café, can have various campaign hashtags to increase Australian brand awareness.
Application of Marketing Management in an Organizational Context
Assessment of Marketing Management Responsibilities and Obligations
The venture’s expansion plan objective is to ensure the firm’s brand becomes accessible to multiple clients. Therefore, the primary function of marketing management is to enable Zafran tea to be sufficiently availed to the projected consumers in the Australian market. Marketing management’s core duties involve selling FiLLi Café’s Zafran tea, including public relations, promotions, and advertising (Goh and King, 2020). Since the business entity is a recognizable brand, the main responsibility of the marketing manager would be escalating the product reach and popularization in the new market segment. Marketing management ensures proper coordination of various activities at FiLLi Café, such as product enhancement, sales forecasting, and trade promotion (FiLLi, 2022). Even though Zafran tea is FiLLi Café’s most popular brand, grading and standardization measures would enable the business goals to rhyme with the target customer’s expectations, thus increasing their satisfaction.
Furthermore, marketing management’s other notable functions and roles include financial regulation, staffing, and risk control. Since FiLLi Café is already established, it is unbeneficial to speculate massively in product development, compared to the typical marketing management responsibility that demands integrated endeavors of modern business entities. Consequently, FiLLi Café’s executive responsibility would be to improve the existing competitive advantage and maintain it in the Australian market. Significantly, FiLLi Café enjoys various marketing functionalities and does not require to invest in facilities, including assembling, storage, and packaging. Marketing management enables the company’s senior workers to benefit from effectively utilizing the supply chain model (Kotler et al., 2019). At FiLLi Café, marketing control functions would depend on the earlier regulation prerequisites within the Australian restaurant and hospitality sector.
Assessment of FiLLi Café’s Expansion Plan Effectiveness as Proposed to Achieve Corporate Objectives
At first, the appropriateness of the strategic marketing objective of FiLLi Café’s expansion blueprint will be realized by assessing and reviewing the developed marketing plan. To a great extent, the evaluation process will assist in establishing whether the marketing plan is delivering results per the business growth aims. Significantly, the effectiveness of the marketing management at FiLLi Café will help identify areas requiring adjustments and processes to be conducted regularly. Marketing management will help realize multiple models that, when sufficiently implemented, will aid in determining the strategic marketing objective of FiLLi Café’s expansion plan within the Australian market. One fundamental approach to evaluating a marketing plan’s effectiveness is calculating the return on investment (ROI) (Alston et al., 2021). The methodology will aid in pinpointing whether the allocated resources generate profits. Measuring ROI will assist in examining whether promotional tools and campaigns deployed to popularize Zafran tea are effective.
At the same time, FiLLi Café’s sales figures calculation helps determine the business performance level. The strategic marketing objective of the company entails ascertaining the number of cups purchased by the consumers in the newly established stores, which aids in pinpointing the Zafran tea products acceptance rate among Australians. The effectiveness of FiLLi Café’s marketing expansion plan relies on escalating the daily cups sold in successive periods. Another methodology deployed is the evaluation of the market reaction to establish FiLLi Café’s expansion plan efficiency. Observing the Sydney-based teahouse competitor behavior will be the best strategy for assessing segment perspectives. The expansion plan will be successful when the business rivals shift their operational, strategic marketing strategies to match that of FiLLi Café. Examining the nature of client viewpoints will require using multiple response mechanisms, such as click-through ratio and online engagement. Therefore, it will be easy to pinpoint the most suitable marketing campaign to enhance venture growth.
Generally, FiLLi Café’s scheduled expansion blueprint will be successful by calculating the business performance level in the Australian market. The appropriateness of the company’s strategic marketing objective will have many stores in Sydney and other metropolitan areas, ensuring the massive attraction of customers and, thus, more revenue generation. In addition, the expansion plan’s effectiveness will be attained by evaluating the sustainability of the new restaurant branches matching the entity’s business aims.
Conclusion
To a great extent, FiLLi Café’ has had a substantial presence in the UAE and the neighboring nations, mainly among the GCC members. The firm’s long-haul objective is expanding into other markets, particularly the developed states. Therefore, FiLLi Café’s executive must consider the alternative of growing the venture operations in the Australian market. The organization will deploy a franchising mode of expansion to open multiple physical stores in Sydney. In addition, the company’s management aims to escalate the accessibility of Zafran tea, which will increase the average number of cups sold daily. Implementing the proposed marketing plan and executing various tactics will help the organization attain its expansion goals. Nevertheless, FiLLi Café’s management must execute various marketing strategies to avoid potential obstacles in the Australian market. Proper coordination of efforts between the company seniors and other stakeholders will ensure the attainment of the growth objectives in the Australian market.
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