1.1.1 Market Needs
Coffee shop customers, by nature, are looking for something
special — that’s why they are willing to pay so much for a cup of coffee! Many
customers of the big national chains, while satisfied with their daily coffee
would be intrigued to find a local coffee that is different.
products (specialized roasts, local ingredients, locally themed or named
drinks, custom drinks by the ‘star’ barista, etc.)
puzzles, mind benders and other activities that encourage customers to linger
over their coffee
or sponsoring local events (entertainment, readings, book clubs, etc.)
technology to creatively compete in marketing with the big chains — services
like Facebook, FourSquare, Yelp, and Google
can increase visibility in the local market.
amazing service from knowledgeable baristas — spend lots of time training staff
and utilize online services.
coffee-related items (and track down any co-marketing opportunities with a
local community college or other student-related group in the area)
economic woes, 37% of total coffee consumed as classified as “Gourmet.” According
to the study, suggests consumers were set on drinking good coffee and visiting
their local coffee shop even in the face of an uncertain economy.
The sales of coffee dominate sales of hot
beverages, making up 83.3% of the total hot beverage market consumption is expected
to increase through 2017 at an average annual rate of 2.7%, while tea
consumption is expected to increase through 2017 at an average annual rate of
3.1%. Positive expectations for continued growth in coffee sales, despite its
“mature” product position in the market, are due to the innovations in premium
coffee products (pods, single-serving instants, etc.)
The Cafe Jio will position itself as a local
coffeehouse or a ‘suburban’ coffeehouse providing a sanctuary for those in the
‘burbs’ without the hassle of having to drive downtown
charging similar prices as the large chains – the service and quality of the
product will commensurate with the price
Cafe Jio is genuinely unique place to
gather and meet friends, and enjoy coffee
such as free WIFI, chess games, comfy overstuffed chairs, create a relaxing
The market does not need a café
offering fast food breakfasts or another after hours bar
The Cafe Jio will position itself
as the alternative to the chain/franchise/fast food coffee house.
Marketing Strategy and Implementation
Cafe Jio will provide a quiet and relaxing environment to enjoy gourmet roasted
coffee and smoothies and an opportunity to visit with friends, catch up on
one’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’s
baristas will be extremely knowledgeable and offer assistance in any coffee
purchase while simultaneously providing customers with outstanding service.
customers will have direct impact on the business of the organization. The need
of the customers will be of prime focus while developing marketing campaigns
that will provide competitive advantage. The employees in the organization will
form an integral part to drive the growth of the business. The employees have
to be motivated to develop extensive marketing plans for the success of the
organization. The brand image can be improved by using media for the promotion
of the product.
there are strong competitors in the market, the positioning strategy will be for
customers who prefer quality products at reasonable pricing. The organization
has to do a segmentation analysis to identify the target market. The quality of
the product will be the key selling proposition for the brand. The strategy for
positioning will be based on the consumer needs.
The SWOT analysis examines the café’s strengths and weaknesses
that need to be addressed. Further, this
section examines the opportunities presented to Café as well as potential
on its smaller size, the fact that it is not a franchise, the Cafe Jio is a
unique coffee shop concept unlike any other.
owner has firsthand experience, in operating and starting new restaurants,
baristas will bring professionalism and enthusiasm to the shop.
are the easiest way and often the safest conduit to start a café; the café will
not have the backing of one of these established entities.
Cafe Jio has a minimal budget and is competing against larger and more established
coffeehouses for market share.
demographics support the need for a unique coffee shop.
opportunities to target the active and recently retired target market and 45
years+ age group.
small slice of a much bigger pie is the goal. Only 40 percent of the nation’s
coffee drinkers are consuming premium ground and whole bean coffee. Encouraging
coffee drinkers to become coffee connoisseurs is the key to continued growth.
local coffeehouse/café market.
existing Coffee shop could pose significant threat to market share.
the short-term, a number of promotions and activities are planned around launch
of the business to create awareness. The
coffee shop will have a contest offering 20 bottomless mugs and will publicize
this promotion via radio advertising, as well as countertop displays and
posters in the shopping plaza.
In addition, during its first year of
operations the coffee shop will pass out a limited number of coupons for a free
cup of coffee to prospective customers visiting the shopping center.