Contents

Topic .............................................................................................................................................................. 1

Objectives ..................................................................................................................................................... 2

Background ................................................................................................................................................... 3

Methodology ................................................................................................................................................ 4

Presentation and Analysis of data ............................................................................................................... 6

Conclusion .................................................................................................................................................. 12

Recommendations...................................................................................................................................... 13

Bibliography ................................................................................................................................................ 14

Appendix..................................................................................................................................................... 15
 Topic
• An investigation into the effectiveness of the marketing mix strategies employed by

Royal Palm Coffee House and its impact on the sales of the business for the period

January 2023 to December 2023.

1
 Objectives
• Identify the existing marketing strategies used by Royal Palm Coffee House.

• Explain how effective these strategies have contributed to the sales of Royal Palm Coffee

House for the period January 2023 to December 2023.

• Outline two recommendations based on the analysis of the business to improve sales.

2
 Background
This research investigates the marketing mix strategies utilized by Royal Palm Coffee House

(#28 Park Street, San Fernando, Trinidad) during the period of January to December 2023.

Established in 2015, Royal Palm Coffee House is an independent café specializing in locally

sourced coffee blends. It operates within the highly competitive coffee industry, amidst major

chains like Starbucks and Rituals. The company's emphasis on distinctive product offerings, with

an annually updated menu, alongside its commitment to social responsibility has fueled its

growth. This is evidenced by significant kitchen upgrades in 2017, which expanded their menu

capacity and an ambiance revamp in 2018, which enhanced the customer experience.

This research holds significance for us as students of business with an interest in marketing. By

analyzing Royal Palm Coffee House's strategies, we seek to gain insights into how a local,

independent business can effectively differentiate itself and thrive amidst strong competition.

Additionally, this research benefits society by promoting an understanding of effective pricing

strategies, fair-trade practices and underscoring the business’s commitment to local and social

responsibilities. Furthermore, Royal Palm's use of sustainable packaging reduces pollution,

protecting the environment, setting a positive example which can potentially inspire others to

adopt similar environmentally conscious practices.

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 Methodology

Primary Data Collection:

To investigate the café’s marketing mix strategies, this study employed a mixed-methods

approach combining qualitative and quantitative data. Initially, we began our investigation using

primary data, which was information gathered directly from the source for the first time. In this

case, a semi-structured interview was conducted face-to-face with the manager on September

5th, 2023 at 5:00 P.M. to obtain in-depth insights into strategic decision-making, target market

analysis, and campaign evaluation. Sixteen open-ended questions in the interview allowed for

flexibility and the pursuit of detailed explanations regarding the rationale behind various

marketing choices, enriching the overall analysis.

Secondary Data Collection:

Then, we furthered our research with secondary data. Secondary data refers to existing

information collected by someone else. Here, the café’s accountant presented us with the internal

business records. These included sales reports, which we analyzed to identify sales trends,

correlate product introductions with revenue, and pinpoint the impact of promotions and pricing

strategies. Inventory data helped establish patterns in product demand, inform pricing decisions,

and offer clues about efficient supply chain management.

This careful combination of interview findings and analysis of secondary business data allowed

for a multi-dimensional, comprehensive analysis.

4
Limitations:

A potential limitation of the interview process was time constraints. It was challenging to find a

mutually convenient time for both the interviewer and interviewee. Additionally, internal records

proved inconsistent and occasionally outdated, posing a challenge for accuracy as there was no

effective way to address these discrepancies.

5
 Presentation and Analysis of data
LINE GRAPH SHOWING THE SALES PER MONTH

$7,000
$6,500 $6,500
$6,000
$6,000
$6,000 $5,500

$5,000 $5,500 $4,500

$4,000 $4,500
SALES

$3,000
$3,000

$2,000 $2,500
$2,000

$1,000

$0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

MONTH

Peak sales in June and November were observed, each hitting $6,500. This coincides with the

end of the school term, suggesting increased student activity for exams and holidays. Overall,

annual sales average around $4791.67, with the medium of $5,500 and the mode is $6,500.

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 PIE CHART SHOWING THE PRICING STRATEGIES EMPLOYED

25%
30%

20%
25%

Premium Pricing Competitve Pricing Bundle Pricing Promotional Pricing

Royal Palm Coffee House favors premium pricing (30%), suggesting customer recognition of

their unique offerings and quality commitment. Competitive (25%), Bundle (20%), and

Promotional (25%) Pricing play a lesser role, indicating the company's focus on individual

product appeal over price-driven tactics.

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 THE DISTIBUTION CHANNELS USED TO DISTRIBUTE PRODUCTS.

Producer → Consumer

This study identifies Royal Palm Coffee House as the producer and those who purchase its

offerings as the final consumers.

TABLE SHOWING THE UTILIZATION OF PROMOTIONAL

Promotional Strategy Utilization (%)

Merchandising 30

Discounts & Incentives 24

Social Media Marketing 26

Public Relations 20

Merchandising (30%) and social media marketing (26%) are the most used promotional

strategies, highlighting their significance for in-store presentation and digital engagement.

Discounts & Incentives (24%) and PR (20%) is less prioritized, suggesting a greater focus on

direct customer outreach and sales-focused tactics.

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 TABLE SHOWING PRODUCT OVERVIEW FOR 2023

Category Total

Products Sold 75%

New Products Added 2%

Changes to Products and Services 2%

Strong sales of $35,583 which was mainly through signature lattes that students purchased every

morning before school, it was shown that 150 units were sold daily in 2023 which indicated

positive customer reception to the café's product offerings, including new additions like Cold

Brew Coffees and Vegan Pastries. Furthermore, changes such as Increased Pastry Sizes and

Dairy-Free Options likely also contributed to the success.

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 LINE GRAPH SHOWING THE IMPACT ON SALES BY THE PRICING STRATEGIES
$16,000
EMPLOYED.
$15,000

$14,000

$12,000

$10,000
Impact on sales

$8,000

$7,500
$6,000

$4,000
$2,000 $4,250
$2,000

$0
Premium Pricing Competitve Pricing Promotional Pricing Bundle Pricing

Types of Strategies used

Premium pricing dominates this strategy mix, responsible for $15,000 of sales, suggesting

customers perceive the offerings as high-quality and exclusive, justifying higher costs. While

promotional pricing ($7,500), competitive pricing ($2,000), and bundle pricing ($4,250) also

play a role, their impact is considerably less, emphasizing the success of premium pricing.

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 BAR CHART SHOWING THE IMPACT ON SALES BY THE
PROMOTIONAL STRATEGIES EMPLOYED
$14,000

$12,000
$12,000

$10,000
IMPACT ON SALES

$8,000 $7,500
$6,850

$6,000

$4,000

$2,400
$2,000

$0
TYPES OF STRATEGIES EMPLOYED

Merchandising Discounts & Incentives Social Media Marketing Public Relations

Merchandising emerges as the most effective promotional strategy, driving $12,000 of sales,

showcasing the importance of appealing in-store displays in influencing customer decisions.

Social media contributes $7,500, highlighting its value for targeted brand awareness. Discounts

& Incentives $6,850 and PR $2,400 show a weaker impact, suggesting refinement in these areas.

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 Conclusion
This project investigated Royal Palm Coffee House's marketing strategies, demonstrating their

commitment to quality, superior customer experience, and meaningful customer connections

fostered through social media. Their premium pricing strategy aligns with the belief that

consumers prioritize exceptional coffee and are willing to invest in a satisfying experience. The

success of this strategy, driving a strong $15,000 of sales, validates this approach. Moreover,

strategic merchandising plays a crucial role – generating nearly half of sales – emphasizing the

importance of a welcoming in-store ambiance. This, in conjunction with their targeted social

media engagement, demonstrates Royal Palm Coffee House's astute understanding of crafting a

resonant marketing mix tailored to their audience.

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 Recommendations
Summertime Specials: Craft enticing promotions geared towards families and local residents.

Introduce combo deals on refreshing drinks, lunch items and more. Consider partnering with

nearby attractions (pools, parks) for cross-promotional offers to draw in new customers during

July and August to boost sales.

Rethinking April: Reorient April promotions away from typical student focus, due to the

closure of schools. Host themed events (like a spring-themed open mic night) that appeal to a

wider demographic. Promote catering options for local gatherings or businesses to compensate

for decreased student traffic which would promote adult traffic into the café thereby increasing

sales.

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 Bibliography
Whitcomb, A. (2018). Essential principles of business for CSEC (4th ed.). Hodder Education.

McCarthy, E. J. (1960). Basic marketing: A managerial approach. Richard D. Irwin.

Royal Palm Coffee House. (n.d.). About us. Royal Palm Coffee House. Accessed June 30, 2023,

from https://royalpalmcoffeehouse.com/web/.

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 Appendix
Interview Questions

Please answer the following questions by providing as much detail as possible. Your

answers will be used for academic purposes only and will be kept confidential.

1. Can you provide a brief history of Royal Palm Coffee House and describe its development

since its establishment?

2. Has selling the product been profitable within the time period January 2023 to

December 2023?

3. Can you describe the type of products that Royal Palm Coffee House offers?

4. Have changes to the menu impacted on the sales of the business?

5. Has the pricing strategy used impacted on the sales of the business for the year?

6. What is the exact location of Royal Palm Coffee House?

7. Why was this location chosen?

8. What are the current marketing mix strategies that Royal Palm Coffee House employs?

9. What promotional activities does Royal Palm Coffee House engage in?

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10. How have the promotional techniques employed impacted on the sales of the business?

11. Have you observed any notable sales trends during promotional periods or specific times

of the year?

12. How has the introduction of new products influenced sales growth at Royal Palm Coffee

House?

13. What challenges has Royal Palm Coffee House encountered in implementing its

marketing mix strategies, and how were they addressed?

14. Based on your experience with the business, do you have any recommendations for

improving the marketing mix strategies at Royal Palm Coffee House?

15. How does Royal Palm Coffee House adapt its marketing strategies in response to

customer feedback and changes in the market environment?

16. Can you share any future plans or strategies that Royal Palm Coffee House has in place to

further enhance its sales and customer base?

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Dear Sir/Madam,

I am a fourth form student at ASJA Boys' College San Fernando and I am currently pursuing

CSEC Principles of Business. Completing a School Based Assessment (SBA) project on a

topic associated with the principles of business is a requirement for the course.

The topic that I have chosen for my SBA is the effectiveness of the marketing mix strategies

employed by Royal Palm Coffee House and its impact on the sales of the business for the period

January 2023 to December 2023.To carry out this research, I require data from your business, such as

information about your products, prices, distribution channels, promotional activities and sales

figures.

I am writing this letter to solicit your permission to use your business as the subject of my SBA

project. I would also like to request your collaboration in providing me with the requisite data

and permitting me to observe and interview some of your staff members. I assure you that the

data acquired will be used solely for academic purposes and will be kept confidential.

I would be grateful if you could confer me this permission and support me with my SBA project.

If you accept my request and agree to allowing me to interview you as well as your employees,

please call (Student Name), a member of this group at (insert phone number) or email me personally at:

(insert email address)

Thank you so much for your time and acknowledgement.

Sincerely,

Antonio Archer

(Acting head of this group project)

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