Marketing Strategy (74/100):
Hopkinson's Coffee shop
The assignment was to create a marketing strategy for Hopkinson's Coffee, an independent coffee shop situated on St Michael's Hill.
I really enjoyed conceiving this strategy as I felt like I could effect tangible change, since Hopkinson's is a real business in Bristol (under an alias) located in an area I encountered daily.
Additionally, being part of the target demographic I identified allowed me to incorporate real-life insights that made this task feel highly authentic.
Highlights:
1. Audit
2. Target Market & Strategy
3. Product & Price
4. Place & Promotion
01
AUDIT
I conducted an internal and external audit for the business, using the PESTLE and SWOT frameworks.
Externally, Socio-political trends show increasing interest in ethical consumption and sustainability, and technological shifts towards digitalization emphasize the importance of online presence. Its main competitors were Megacorporations, which pose price and accessibility challenges, and artesan specialists with similarly high product quality, pricing and service levels.
Internally, Hopkinson’s benefits from its unique brand, sustainable, high-quality products, and prime location near the University. However, its weaknesses were its lack of digital presence and limited differentiation.
02
TARGET MARKET & STRATEGY
Using the TOWS framework, I identified that the most profitable long-term strategy for Hopkinson’s to gain competitive advantage and grow its business was to leverage their student niche, and cater precisely to their needs by improving convenience – illustrated through the Porter's Value Chain.
This is the most profitable demographic due to their dominance in the existing customer base, reliable flow through the University, and easy accessibility through Hopkinsons’ convenient location.
I also recommended a repositioning that emphasises its USP and differentiation from competitors – sustainability and quality, which should be emphasised through the slogan: ‘Sustainably Sourced, Sold & Served’. This provides a long-term strategic advantage, as it would cost competitors considerable expenditure and complexity to replicate, requiring complex alterations in supply chains.
03
Product & Price
PRODUCT
As demonstrated by Ansoff’s Matrix, Hopkinson’s should maximise perceived value amongst students by introducing products appealing to convenience, for example…
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A "student specials" menu, using targeted communications through naming products after desirable and relevant effects.
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Expanding product range to include products that appeal to students – for example coffee liqueur, and Lion’s Mane, a new product that no other competitors supply
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PRICE
Due price sensitivity amongst students, it should initially follow a competitive pricing strategy (benchmarked just below artisan competitors) to enhance appeal – and once loyalty and market is achieved, gradually increase price to match.
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A segment-based pricing system for the student specials
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Relational pricing tactics to encourage customer loyalty and retention through habit and relationship building (for example, offering discounts through loyalty cards).
04
Place & Promotions
PLACE
It should satisfy students' behavioural and convenience needs by:
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Refurbishing the unused cellar as a study space
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implementing an online delivery system to exploit trends in purchase behaviour towards online delivery, increasing accessibility and expanding reach.
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Creating a window display made from upcycled coffee beans frozen in resin that visually communicates its USP to footfall.
PROMOTION
To increase brand awareness and strengthen positioning, it should…
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Collaborate with University societies and events that align with its positioning, (eg Coffee-soc and Fashion Forwards-soc).
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Partner with sustainably-focused organisations to attract environmentally-conscious customers, for example ‘Refill Return cup’ and ‘Too Good To Go’.
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Improve online and social media presence to increase brand awareness and maintain communication to stay front-of-mind, (regularly monitoring analytics). Increase channel volume to extend market coverage, using TikTok and Instagram to reach a younger audience and LinkedIn for partnering with businesses and shareholders.
