1.1.1 Market Needs Coffee shop customers, by nature, are looking for somethingspecial — that’s why they are willing to pay so much for a cup of coffee! Manycustomers of the big national chains, while satisfied with their daily coffeewould be intrigued to find a local coffee that is different.1.1.
2 Market Trends · Uniqueproducts (specialized roasts, local ingredients, locally themed or nameddrinks, custom drinks by the ‘star’ barista, etc.)· Games,puzzles, mind benders and other activities that encourage customers to lingerover their coffee· Hostingor sponsoring local events (entertainment, readings, book clubs, etc.)· Usingtechnology to creatively compete in marketing with the big chains — serviceslike Facebook, FourSquare, Yelp, and GooglePlacescan increase visibility in the local market.· Deliveringamazing service from knowledgeable baristas — spend lots of time training staffand utilize online services.· Sellingcoffee-related items (and track down any co-marketing opportunities with alocal community college or other student-related group in the area)1.
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1.3 Market Growth Despite theeconomic woes, 37% of total coffee consumed as classified as “Gourmet.” Accordingto the study, suggests consumers were set on drinking good coffee and visitingtheir local coffee shop even in the face of an uncertain economy. The sales of coffee dominate sales of hotbeverages, making up 83.3% of the total hot beverage market consumption is expectedto increase through 2017 at an average annual rate of 2.7%, while teaconsumption is expected to increase through 2017 at an average annual rate of3.1%. Positive expectations for continued growth in coffee sales, despite its”mature” product position in the market, are due to the innovations in premiumcoffee products (pods, single-serving instants, etc.
)1.1.4 Positioning The Cafe Jio will position itself as a localcoffeehouse or a ‘suburban’ coffeehouse providing a sanctuary for those in the’burbs’ without the hassle of having to drive downtown · Bycharging similar prices as the large chains – the service and quality of theproduct will commensurate with the price· TheCafe Jio is genuinely unique place togather and meet friends, and enjoy coffee· Amenitiessuch as free WIFI, chess games, comfy overstuffed chairs, create a relaxingenvironment · The market does not need a caféoffering fast food breakfasts or another after hours bar· The Cafe Jio will position itselfas the alternative to the chain/franchise/fast food coffee house. 2.
0 Marketing Strategy and Implementation TheCafe Jio will provide a quiet and relaxing environment to enjoy gourmet roastedcoffee and smoothies and an opportunity to visit with friends, catch up onone’s email, or read a chapter of a book. The Café will fill the great void providing originality in a sea of facsimile,corporate coffee shops. The café’sbaristas will be extremely knowledgeable and offer assistance in any coffeepurchase while simultaneously providing customers with outstanding service. Thecustomers will have direct impact on the business of the organization. The needof the customers will be of prime focus while developing marketing campaignsthat will provide competitive advantage. The employees in the organization willform an integral part to drive the growth of the business. The employees haveto be motivated to develop extensive marketing plans for the success of theorganization.
The brand image can be improved by using media for the promotionof the product. Sincethere are strong competitors in the market, the positioning strategy will be forcustomers who prefer quality products at reasonable pricing. The organizationhas to do a segmentation analysis to identify the target market. The quality ofthe product will be the key selling proposition for the brand. The strategy forpositioning will be based on the consumer needs.2.1 SWOTAnalysis The SWOT analysis examines the café’s strengths and weaknessesthat need to be addressed.
Further, thissection examines the opportunities presented to Café as well as potentialthreats. · Basedon its smaller size, the fact that it is not a franchise, the Cafe Jio is aunique coffee shop concept unlike any other. · Theowner has firsthand experience, in operating and starting new restaurants, · Handpickedbaristas will bring professionalism and enthusiasm to the shop. 2.1.
1 Weaknesses · Franchisesare the easiest way and often the safest conduit to start a café; the café willnot have the backing of one of these established entities. · TheCafe Jio has a minimal budget and is competing against larger and more establishedcoffeehouses for market share. 2.
1.2 Opportunities · Thedemographics support the need for a unique coffee shop. · Additionalopportunities to target the active and recently retired target market and 45years+ age group.· Asmall slice of a much bigger pie is the goal. Only 40 percent of the nation’scoffee drinkers are consuming premium ground and whole bean coffee.
Encouragingcoffee drinkers to become coffee connoisseurs is the key to continued growth. · Thelocal coffeehouse/café market. 2.1.3 Threats · Theexisting Coffee shop could pose significant threat to market share.
2.2 StrategyPyramid · Inthe short-term, a number of promotions and activities are planned around launchof the business to create awareness. Thecoffee shop will have a contest offering 20 bottomless mugs and will publicizethis promotion via radio advertising, as well as countertop displays andposters in the shopping plaza. · In addition, during its first year ofoperations the coffee shop will pass out a limited number of coupons for a freecup of coffee to prospective customers visiting the shopping center.