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Pact Coffee Marketing home assigment Name Date 1

Table of Contents 1. Introduction of (your brand) ................................................................................................ 3 2. Product Category in (country) (e.g. Sportsshoe category in Iran) ....................................... 3 3. Marketing strategy ............................................................................................................... 5 4. Marketing mix ..................................................................................................................... 8 5. Recommendations .............................................................................................................. 11 6. References ......................................................................................................................... 12 2

1. Introduction of (your brand) Pact Coffee is a small-scale brand located in the United Kingdom. This coffee subscription service, which sources coffee beans from all over the globe, was founded in 2011 by Stephen Bartlett after an excursion to Ethiopia, where he witnessed significant barriers coffee farmers face. As such, the selected organisation is dedicated to ethical and sustainable practices, enshrined in its commitment to ensuring that such farmers are fairly compensated for their endeavours. The company also donates a portion of its profits to coffee-growing communities. The company utilises various subscription plans designated to meet the diverse needs of its consumers. The product comes in various assortments from which customers can choose and get their coffee delivered periodically, i.e., weekly, monthly, or every two months (Pact Coffee, no date). This coffee is famous and revered by consumers looking for high- quality and ethically sourced coffee where every proponent within the circle is appropriately compensated for their efforts. This brand has been well covered, with widespread media outlets such as The Guardian, The Independent, and The Telegraph applauding Pact Coffee’s commitment to equity and sustainability. Pact Coffee is a B Corp-certified company. This accreditation cements the organisation's pledge to attain benchmark social and environmental performance metrics (Pact Coffee, no date). According to Fonseca et al. (2022, p. 500), B Corp-certified companies typically are obliged to use their businesses as a force for good and change in the dynamic modern business landscape. 2. Product Category in (country) The coffee business in the United Kingdom has been booming, with creativity, innovation, and style key to maintaining a competitive advantage. With an estimated value of £4.7 billion in 2022, the growth in this thriving sector is driven by increasing consumer demand for high-quality, ethically sourced coffee, along with a growing preference for at- home consumption (Trollman et al., 2022, p. 43). Diverse competitors, including 3

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multinational giants like Nestlé and Jacobs Douwe Egberts, established UK brands such as Kenco and Nescafé, and a growing number of speciality coffee roasters and subscription services characterise the market. Additionally, Pact Coffee competes with other subscription- based coffee brands within the United Kingdom, such as Coffee Subscription UK and Park Up Coffee. This competition has influenced the formulation of different subscription plans catering to different penchants and budgets. The stiff and intense competition has led to these brands vying for customer attention through unique selling schemes, such as ethical sourcing, personalised recommendations, and eco-friendly packaging. With recent calls and concerns over the alarming rate of climate change, predominantly anthropogenic, many consumers tend to lean towards products and services that adhere to ethical and ecological prerequisites. As such, most UK coffee consumers are discerning in their coffee choice, with the majority on the lookout for high-quality, ethically sourced beans and are keen to pay a premium for these attributes ( Maye, Kirwan, and Brunori, 2019, p. 301) . Convenience and a personalised experience are significant determinants for consumer behaviour patterns and trends, with many consumers seeking products, in this case, coffee, that fit seamlessly into their lifestyles and cater to their tastes. With COVID-19 imposing a new way of life, i.e., a shift towards confinement, home- based activities, and reduced public activity, many people are spending more time in their homes and investing in home brewing equipment. This trend is expected to persist in the face of the pandemic as consumers appreciate the convenience and cost-effectiveness of brewing their coffee at home (Castellana et al., 2021, p. 2458). Industrial trends within the coffee niche unravel several notable differences between the United Kingdom and other countries, say the United States (Pact Coffee, no date). The UK market for coffee subscriptions is relatively emergent compared to other markets, such as the United States, which provides Pact Coffee 4

with an opportunity and platform that, if capitalised, would capture even a much larger market share. 3. Marketing strategy Marketing strategy is the overall plan that guides an organisation's marketing efforts, including identifying target markets, positioning products or services, and developing promotional activities. This crucial aspect is essential to small brand organisations for various reasons, such as enabling a clear distinction in a highly competitive market. Small-brand organisations are typically characterised by limited resources and budget constraints, necessitating them to adopt strategic choices for positioning their brand and standing out from larger competitors (Morgan et al., 2019, p. 20). A well-defined marketing strategy allows them to identify their unique selling points and communicate these effectively to potential customers. Additionally, a solid marketing strategy enables such organisations to discern the demographics associated with their targeted audiences by conducting market research analyses, which enables them to gain invaluable insights into their consumers' needs, preferences and behavioural tendencies. Such is significant in enabling them to adopt well- defined policies and frameworks, which result in improved customer experience and service delivery, thus propelling these brands forward by preventing consumer/employee turnover while improving the associated loyalty metrics (Dibb et al., 2019). Finally, another rationale for a well-defined marketing strategy results in maximum return on investment, ROI, of scarce resources, ensuring that any outlay spent directly contributes towards achieving both short- and long-term objectives. Segmentation and targeting Segmentation refers to dividing a market into distinct groups of consumers with similar needs, characteristics, and behaviours. Pact Coffee segments its market based on several factors, including coffee consumption habits, lifestyle, and values. Pact Coffee's 5

marketing strategy centres around targeting a specific segment of consumers – the coffee- conscious individual – who typically are passionate about coffee, seeking high-quality beans, ethical sourcing practices, and sustainable production methods. The targeted marketing audience is classically well-educated, environmentally conscious, and values convenience and personalised experiences. As such, this target audience can be categorised into the following distinct groups (Pact Coffee, no date) ; Group Attributes The Coffee Connoisseur This group has profound knowledge of coffee and seeks specially grown and produced beans, unique flavour profiles, and artisanal brewing techniques that contribute to improved customer experience. As such, this target audience group invest in high-quality coffee and appreciates the nuances of different brewing methods (Maye, Kirwan, and Brunori, 2019, p. 304). The Ethically Conscious Consumer This group typically encompasses individuals who prioritise ethical sourcing practices of coffee beans and are generally concerned about the well-being of coffee farmers. As such, they seek accountable and transparent brands about their supply chains and equity in the logistics cycle, where each associated proponent is compensated fairly (Lingnau, Fuchs, and Beham, 2019, p. 72). The Convenience Seeking Coffee Lover This group encompasses individuals who value convenience and appreciate the ease of 6

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having coffee delivered to their doorsteps. While they may not be as knowledgeable about coffee as other segments, these consumers still seek good-quality, ethically sourced beans. Positioning of Pact Coffee within the United Kingdom Coffee Industry Pact Coffee's positioning is centred on its commitment to ethical sourcing, sustainability, and creating a positive impact on the coffee industry from the consumer, farmer, and brand perspectives. The company is distinct from its competitors because it directly partners with coffee farmers, ensuring fair prices and supporting community development initiatives. For instance, Pact Coffee has partnered with the UK-based charity Cafod to support ethical and sustainable coffee production practices. This partnership helps reinforce Pact Coffee's brand values and allows the company to connect with conscious consumers interested in supporting sustainable and ethical causes ( Maye, Kirwan, and Brunori, 2019, p. 307)) . Pact Coffee also emphasises its sustainable practices, from sourcing to packaging, minimising its environmental footprint, such as carbon emissions and land degradation. Such positioning echoes its target audience notions and sentiments, particularly the first two groups, i.e., the coffee connoisseur and the ethically conscious consumer, due to its unwavering commitment and emphasis on quality, sustainability, and ethical practices, which in turn appeals to these individuals' values and desire to make a positive impact. Due to its small-scale status within a thriving coffee industry in the United Kingdom, Pact Coffee faces competition from various coffee companies, particularly those with a subscription-based business model in the UK, such as Subscription UK, Coffee Collective, and Perk up Coffee. These services offer similar subscription options and cater to similar consumer segments. However, Pact Coffee differentiates itself through its strong focus on 7

ethical sourcing, sustainability, and transparency. This manifests as the company's direct partnerships with coffee farmers, fair trade initiatives, and commitment to sustainable practices, which have redefined the organisation and set it apart from its competitors. Such attributes align with the values of its target audience and contribute to its positioning as a force for good in the coffee industry. 4. Marketing mix The marketing mix, commonly referred to as the 4 Ps, is an essential marketing framework that guides the adopted marketing strategies of a product or service by outlining four core elements essential for a successful marketing campaign ( Ridwan and Hanafiah, 2021, p. 274) . Product refers to the physical/intangible attribute of the item sold and potential benefits it offers a customer, i.e., how their product differentiates from competitors and what unique value it offers to customers. Price refers to the amount a consumer needs to pay to obtain a particular product or service offering and requires an articulate consideration of production costs, competition, target market, and perceived value. On the other hand, promotion encompasses methods used to communicate and increase the product's value to potential consumers, i.e., persuading them to purchase the products. Promotion includes advertisement, sales promotions, discounts, and direct marketing. Place is the final element and refers to the distribution channels used to get the product or service to the customer. The following is a breakdown of the marketing mix of Pact Coffee, UK; i. Product Coffee As the name suggests, Pact Coffee is a small coffee subscription brand that centres on acquiring and delivering carefully curated and selected coffee beans from different coffee farms globally. The coffee, typically sourced from revered coffee production zones, is a pinnacle in business ethical and sustainability practices while ensuring product diversity. The 8

organisation incorporates a symphony of unique flavours that echo consumers' sentiments and preferences. From the robust, earthy notes of Kenyan beans to the delicate intricacies associated with Ethiopian Yirgacheffe, Pact Coffee's collection caters to every coffee aficionado's preference. ii. Pricing Pact Coffee's prices are competitive with other coffee subscription services, with the company offering a variety of subscription plans based on the frequency of delivery and the amount of coffee desired to suit different needs and budgets. Pact Coffee's pricing is competitive with other coffee subscription services in the UK, such as Nescafe Dolce Gusto and Costa Coffee. However, Pact Coffee's commitment to ethical sourcing and expert roasting sets it apart from its competitors. According to the organisation's official website, the company offers three different subscription plans: a weekly subscription, a fortnightly subscription, and a monthly subscription. The weekly subscription costs £6.95 per bag, the fortnightly subscription costs £13.90 per bag, and the monthly subscription costs £27.80 per bag (Pact Coffee, no date) . The organisation also offers different coffee blends, with the associated costs varying depending on the roast level and the amount purchased. iii. Place The distribution location is significant for any organisation as the positioning attracts local and global consumers. Pact Coffee's coffee is available online and through select retailers. The company's website is intuitive, easy to use and navigate, and it provides customers with a wealth of information about its coffee, brewing methods, and sustainability initiatives that echo contemporary ecological concerns and the need for justifiable practices that will safeguard and guarantee a better tomorrow for the future generations. Pact Coffee also offers a variety of social media channels where customers can connect with the company and learn about new products and promotions. 9

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iv. Promotion Also referred to as marketing communication, Pact Coffee uses a variety of marketing channels to reach its target audience. These channels include: Channel Platform Significance Social Media Facebook Instagram Twitter The company uses these platforms to share stories, reviews, and testimonials about its coffee, farmers, and sustainability initiatives (Li, Larimo, and Leonidou, 2021, p. 60). Content Marketing Blog posts Articles Multimedia content (video, interviews, podcasts) This content educates consumers about coffee, brewing methods, and sustainability. Email Marketing Regular emails Pact Coffee sends regular emails to its subscribers with information about new products, promotions (sales discounts and offers), and company news. 5. Recommendations The organisation should adopt the following evidence-based recommendations to ensure a bright future that will not only underscore the organisation's commitment to ethical and sustainable practices but also ensure that there is practical return on investment and other financial incentives; 10

i. Pact Coffee should continue emphasising ethical sourcing and sustainability, especially in an era where consumers are increasingly concerned about the ecological and social implications of their purchases. ii. Pact Coffee should expand its outreach by making its coffee more available through astute supply chain mechanisms that will increase the products’ presence in more retail outlets such as grocery stores and coffee shops. iii. Pact Coffee can continue to engage its target audience by developing innovative marketing campaigns that are both creative and informative. 6. References Castellana, F., De Nucci, S., De Pergola, G., Di Chito, M., Lisco, G., Triggiani, V., Sardone, R. and Zupo, R., 2021. Trends in coffee and tea consumption during the COVID-19 pandemic. Foods , 10 (10), p.2458. Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., 2019. Marketing: Concepts and strategies . Cengage Learning EMEA. 11

Fonseca, L., Silva, V., Sá, J.C., Lima, V., Santos, G. and Silva, R., 2022. B Corp versus ISO 9001 and 14001 certifications: Aligned, or alternative paths, towards sustainable development? Corporate social responsibility and Environmental Management , 29 (3), pp.496-508. Li, F., Larimo, J. and Leonidou, L.C., 2021. Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science , 49 , pp.51-70. Maye, D., Kirwan, J. and Brunori, G., 2019. Ethics and responsibilisation in agri-food governance: the single-use plastics debate and strategies to introduce reusable coffee cups in UK retail chains. Agriculture and human values , 36 , pp.301-312. Morgan, N.A., Whitler, K.A., Feng, H. and Chari, S., 2019. Research in marketing strategy. Journal of the Academy of Marketing Science , 47 , pp.4-29. Pact Coffee (no date) The UK’s best coffee delivery & subscription service | Pact Coffee . https://www.pactcoffee.com/ . Ridwan, M. and Hanafiah, H., 2021. Analysis of Coffee Shop Marketing Strategy Om Bewok: Analisis Strategi Pemasaran Kedai Kopi Om Bewok. Indonesian Journal of Economy, Business, Entrepreneurship and Finance , 1 (3), pp.274-283. Trollman, H., Garcia-Garcia, G., Jagtap, S. and Trollman, F., 2022. Blockchain for ecologically embedded coffee supply chains. Logistics , 6 (3), p.43. 12

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