- MNM3709 -
STRATEGIC MARKETING
2021
Assignment 4
Strategic Report for:
Blacksmith Coffee Movement
by
Name Student number
Contact details
Date submitted
Page 1
,Declaration
PLAGIARISM DECLARATION FORM
Name :
Student No. :
Module code :
I, declare and commit that:
This assessment is my own work
I did not receive help from any other person/ student of entity
All the sources I have used or quoted from have been indicated and
acknowledged by means of a complete reference list.
Signature :
Date :
Page 2
,Table of Contents
Declaration .......................................................................................................................... 2
Introduction ......................................................................................................................... 4
1. The Five Ps of Strategy ............................................................................................... 4
1.1. Strategy Plan ......................................................................................................... 4
1.2. Strategy Ploy ......................................................................................................... 4
1.3. Strategy Pattern .................................................................................................... 5
1.4. Strategy as a Position .......................................................................................... 5
1.5. Strategy as a Perspective ..................................................................................... 6
2. The Dimensions of a Market Analysis ........................................................................ 6
2.1. Current and Emerging Submarkets ..................................................................... 6
2.2. Actual Market, Potential Market and Submarket Size......................................... 7
2.3. Market and Submarket Growth ............................................................................ 7
2.4. Market and Submarket Profitability ..................................................................... 7
2.5. Cost Structure ....................................................................................................... 8
2.6. Distribution Channels ........................................................................................... 8
2.7. Trends and Developments ................................................................................... 9
2.8. Key Success Factors ............................................................................................ 9
3. Sources of Sustainable Competitive Advantage ....................................................... 9
3.1. Relational Sources................................................................................................ 9
3.2. Legal Sources ..................................................................................................... 10
3.3. Organisational Sources ...................................................................................... 10
3.4. Human Resource Sources ................................................................................. 11
3.5. Product Sources ................................................................................................. 11
3.6. Pricing Sources .................................................................................................. 12
3.7. Promotional Sources .......................................................................................... 12
4. Factors that determine Strategy ............................................................................... 13
4.1. Demand Factors .................................................................................................. 13
4.2. Competitive Factors ........................................................................................... 13
4.3. Environmental Factors ....................................................................................... 14
4.4. Company Factors................................................................................................ 15
4.5. Risk Factors ........................................................................................................ 15
Conclusion ........................................................................................................................ 16
References ........................................................................................................................ 16
Page 3
, Introduction
Blacksmith Coffee Movement was established with a simple passion for coffee with a purpose
to bring change within society by creating jobs and skills development with the coffee Industry.
BCM is supported by Ciro and crafts beautiful blends by using sustainable sources. This
strategic report will focus on the following aspects: firstly the five Ps of Mitzberg’s view on
strategy, secondly analyse how BCM will be influenced by the dimensions of a market
analysis, thirdly the influence of the sources of sustainable competitive advantage and lastly
factors that determine strategy to use for future strategic planning. Throughout this discussion
the relevant theory will be emphasised and specific reference will be made to Blacksmith
Coffee Movement in a practical approach when analysing the below questions.
1. The Five Ps of Strategy
1.1. Strategy Plan
Blacksmith Coffee has a simple plan firstly to craft beautiful coffee bends and secondly a
purpose to bring change within society by creating jobs and skills development with the coffee
Industry. The strategic plan pursued by Blacksmith Coffee is firstly being in partnership with
CIRO to gain brand recognition within the South African economy and offer a variety of coffee
blends for sale in the market. The plan is to develop a marketing strategy that will allow
blacksmith coffee to enter the highly competitive market with an edge which is where the
Barista Upliftment Programme falls in place. This programme focuses on empowering the
youth by educating and training them to become professional Baristas which will lead to
consumers having a soft spot in the hearts towards this initiative because only through their
purchasing support the unemployment rate in South Africa can be reduced.
The products that Blacksmith Coffee sells also forms part of the strategic plan which includes
a variety of coffee blends, crockery, accessories and coffee machine capsules to enjoy coffee
at home. Furthermore in order to gain customer support, Blacksmith deploys another strategic
plan which is sourcing coffee beans using Fairtrade which means farmers are not exploited
and customers can trust the brand and its authenticity, thus customers who are local farmers
will appreciate and serve as brand advocates for Blacksmith Coffee.
1.2. Strategy Ploy
Blacksmith Coffee have developed a ploy, which is the Barista Upliftment Programme that
their competitors did not expect, in order to ‘out smart’ their competitors and gain profitable
attention, according to ToolsHero, (2020). The business started to offer Blacksmith Coffee
blends, such as fair-trade products for sale and when consumers purchase these products
they are partaking in putting a barista trainee through their three month BUP. They further
enhanced the ploy by marketing their services on their website and through various media
coverage so that their competitors are aware of this ploy that they've embarked on. This ploy
hasn’t been endured by many in the coffee industry thus, they are embarking on offering for
free of charge, yet highly skilled training barista course, followed by assisting the graduates in
employment placement within the Coffee industry as professional baristas.
Page 4
STRATEGIC MARKETING
2021
Assignment 4
Strategic Report for:
Blacksmith Coffee Movement
by
Name Student number
Contact details
Date submitted
Page 1
,Declaration
PLAGIARISM DECLARATION FORM
Name :
Student No. :
Module code :
I, declare and commit that:
This assessment is my own work
I did not receive help from any other person/ student of entity
All the sources I have used or quoted from have been indicated and
acknowledged by means of a complete reference list.
Signature :
Date :
Page 2
,Table of Contents
Declaration .......................................................................................................................... 2
Introduction ......................................................................................................................... 4
1. The Five Ps of Strategy ............................................................................................... 4
1.1. Strategy Plan ......................................................................................................... 4
1.2. Strategy Ploy ......................................................................................................... 4
1.3. Strategy Pattern .................................................................................................... 5
1.4. Strategy as a Position .......................................................................................... 5
1.5. Strategy as a Perspective ..................................................................................... 6
2. The Dimensions of a Market Analysis ........................................................................ 6
2.1. Current and Emerging Submarkets ..................................................................... 6
2.2. Actual Market, Potential Market and Submarket Size......................................... 7
2.3. Market and Submarket Growth ............................................................................ 7
2.4. Market and Submarket Profitability ..................................................................... 7
2.5. Cost Structure ....................................................................................................... 8
2.6. Distribution Channels ........................................................................................... 8
2.7. Trends and Developments ................................................................................... 9
2.8. Key Success Factors ............................................................................................ 9
3. Sources of Sustainable Competitive Advantage ....................................................... 9
3.1. Relational Sources................................................................................................ 9
3.2. Legal Sources ..................................................................................................... 10
3.3. Organisational Sources ...................................................................................... 10
3.4. Human Resource Sources ................................................................................. 11
3.5. Product Sources ................................................................................................. 11
3.6. Pricing Sources .................................................................................................. 12
3.7. Promotional Sources .......................................................................................... 12
4. Factors that determine Strategy ............................................................................... 13
4.1. Demand Factors .................................................................................................. 13
4.2. Competitive Factors ........................................................................................... 13
4.3. Environmental Factors ....................................................................................... 14
4.4. Company Factors................................................................................................ 15
4.5. Risk Factors ........................................................................................................ 15
Conclusion ........................................................................................................................ 16
References ........................................................................................................................ 16
Page 3
, Introduction
Blacksmith Coffee Movement was established with a simple passion for coffee with a purpose
to bring change within society by creating jobs and skills development with the coffee Industry.
BCM is supported by Ciro and crafts beautiful blends by using sustainable sources. This
strategic report will focus on the following aspects: firstly the five Ps of Mitzberg’s view on
strategy, secondly analyse how BCM will be influenced by the dimensions of a market
analysis, thirdly the influence of the sources of sustainable competitive advantage and lastly
factors that determine strategy to use for future strategic planning. Throughout this discussion
the relevant theory will be emphasised and specific reference will be made to Blacksmith
Coffee Movement in a practical approach when analysing the below questions.
1. The Five Ps of Strategy
1.1. Strategy Plan
Blacksmith Coffee has a simple plan firstly to craft beautiful coffee bends and secondly a
purpose to bring change within society by creating jobs and skills development with the coffee
Industry. The strategic plan pursued by Blacksmith Coffee is firstly being in partnership with
CIRO to gain brand recognition within the South African economy and offer a variety of coffee
blends for sale in the market. The plan is to develop a marketing strategy that will allow
blacksmith coffee to enter the highly competitive market with an edge which is where the
Barista Upliftment Programme falls in place. This programme focuses on empowering the
youth by educating and training them to become professional Baristas which will lead to
consumers having a soft spot in the hearts towards this initiative because only through their
purchasing support the unemployment rate in South Africa can be reduced.
The products that Blacksmith Coffee sells also forms part of the strategic plan which includes
a variety of coffee blends, crockery, accessories and coffee machine capsules to enjoy coffee
at home. Furthermore in order to gain customer support, Blacksmith deploys another strategic
plan which is sourcing coffee beans using Fairtrade which means farmers are not exploited
and customers can trust the brand and its authenticity, thus customers who are local farmers
will appreciate and serve as brand advocates for Blacksmith Coffee.
1.2. Strategy Ploy
Blacksmith Coffee have developed a ploy, which is the Barista Upliftment Programme that
their competitors did not expect, in order to ‘out smart’ their competitors and gain profitable
attention, according to ToolsHero, (2020). The business started to offer Blacksmith Coffee
blends, such as fair-trade products for sale and when consumers purchase these products
they are partaking in putting a barista trainee through their three month BUP. They further
enhanced the ploy by marketing their services on their website and through various media
coverage so that their competitors are aware of this ploy that they've embarked on. This ploy
hasn’t been endured by many in the coffee industry thus, they are embarking on offering for
free of charge, yet highly skilled training barista course, followed by assisting the graduates in
employment placement within the Coffee industry as professional baristas.
Page 4
