Coffee Shop Essay

The purpose of this merchandising political program is to divulgeline the complete merchandising strategy, tactics, and programs for Dot. L chocolate tree (hereafter, Dot. L). Dot. L is a medical specialist drinking chocolate Company that focuses on specialty burnt umber of caffe latte, cocoa base products and foods as well. Dot. L is a saucy burnt umber berry shop in the river side district. Dot. L bequeath be known for over 6 flavors of latte, chocolate and chocolate based products. In addition, dead snacks and sandwiches leave al unrivalled be offered to ac ships company the cappuccino and coffee bean based products.The coffee shop establishment lead play modern music for ambiance and provide free radio internet access for patrons to attract professionals in the nearby argument beas. The mission of Dot. L is in the void of the city, Dot. L give the axe supply you the ease of a precious. Dot. L volition be un like some early(a) coffee shops in that i t leave alone introduce customers to the different flavors of coffee and foods in a leisure non pressure milieu. Furthermore, in a competitive grocery like Starbuck, Dot. L banks to set itself ap fraud by r distributivelying out to those diversity flavors of latte without the high termss. The target market consists of two market segments People who ar profoundly in love latte and tidy sum who hope have a relaxing time vexation people from the downtown business centers and professional buildings Situation compend is explored. This includes an overall trade environment analysis for the company as well as more specific situation analysis such as competitor and customers action for the marketing analysis. An evaluation is conducted followed by an action plan outlining how to chance upon the marketing objectives, which includes promotion, price discounts, a bi-monthly newsletter, advertising in television and search for new channel partnerships.Company overview and the Missi on didactics Dot. L volition be a distinctive coffee shop which have own characteristics and ending that will serve the river side residential district. The coffee shop offers flavored latte and other coffee products, light snacks, foods and free wi-fi serve for customer surfing on-line. The Dot. L primary place of operation will be located on the river side with nice view of Brisbane River. The business someones in the top executive building will add to the number of patrons and the circumstance their alike can attract consumer to choose that place. There are plans to loose additional locations after 3 stratums of operation.Dot. L will operate from Mon twenty-four hour period to Sunday. Monday thru Thursday, five employees will be liveing from 10 a. m. to 10 p. m. Friday and Saturday will work the same however, trey employees closing will work until 12 a. m. The equal for each full time labors might be 16 dollars per hour and the toll for part-time labors might be 9 d ollars. The name of this coffee shop is Dot. L which means L refers to latte. Therefore latte as company core coffee products and latte art can be discovered in Dot. L. pic As stated in the companys mission statement Dot. L aims to be the coffee bar have own style and culture in Australia. In the vanity of the city, Dot.L can bring you the ease of a precious. Table of Contents Executive Summary2 Company overview and the Mission Statement3 Introduction6 harvest-tide Description6 Environmental Scan7 Economic environment7 Legal, political and regulatory environment8 Social and pagan environment8 Technological environment9 Competitor9 food market inquiry10 Customers12 market objectives and Market tactics12 Marketing objectives12 Product12 Price13 Place13 Promotion14 Marketing Tactics15 Market forecasting16 meet plans17 Financials18 Control20 cobblers last21 Reference list22 Appendix 124 Introduction This marketing plan examines the steps required to reposition Dot.L cafe in the Australian marketplace. Dot. L is a cafe steel will locate on river side in Brisbane. Dot. L offers a categorization of coffee, specialty coffee of Latte, coffee based products and foods. In addition, in order to attract consumers latte art also be adopted into the coffee products. Basically the price for the fixturely coffee the price will not over four dollars. The cafe will focus on the business people and ordinarily customers. Dot. L in Australia employ approximately 30 labors includes chiefs, shop assistant, shop keeper, senior manager. The Dot. L grime name comes from its core products will offer in the cafe that aim to 1.Attract consumers 2. Build shuffle 3. Trade profit achieve to the highest degree 8-10% The marketing plan followed by analysis the situation in marketplace, competitors analysis for the Dot. L entry into the market. Furthermore, market research and customers analysis will provide to assist the Dot. L to locates the market accurately. It also considers the market forecasting and financials for the tether-year period. Product Description The Dot. L will offer galore(postnominal) items that would have perfect taste. From traditional coffee to the light snacks and foods, Dot. L will offer something traditional and master copy for all tastes.Daily latte specials will be offered, featuring a different blend and flavor each day. The cafe specialty will prefer to European style design. The six different lattes are includes cafe au lait ghetto latte or bootleg lattes hot or iced latte versions of chai, matcha, and Royal milk tea red latte latte macchiato and Caffe latte. Latte and Coffee will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. Flavors will be available at an additional charge of $0. 50. Espresso, cappuccino, mocha, and other specialty topes will be available in two sizes and will cost $3. 75 and $6. 50. Environmental Scan.Economic environment sturdy business, consumer confidence and high export price for raw materials have fuelled the economy for 16 years. Australia has a sanitary economy with per capita gross domestic product (GDP) of $ 38,000(CIA, 2009), and GDP was estimated to be growing at 3. 8% per year (CIA, 2009). However, in 2008 with the impact of the global frugal crisis, manufacturing output and employment started to falter, and the Australian economy headed into a sedate slowdown (Jackson, 2008). Even through, in 2010 the economy has begun to turn for the better, the consumers purchase tendency is not recover.As some(prenominal) cause and effect, consumers cut back on spending, specifically on food, clothing, furniture, entertainment, cars and mobile phones (Uren, 2008). The economic conditions in Australia cave in opportunities and risk for Dot. L. The decrease in consumer spending will force cafe industry to seek specialist assist to retain customers and maintain sales. In the other hand, this will increase the demand for specialist service like Dot. L whic h can provide business men have plcae to release pressure. However, the reality of a downturn may cause sellers to cut back on all spending including on retail consulting and training services.Additionally some retailers are likely to go out of business. Legal, political and regulatory environment Small business makeing through labeling and forwarding conclusively builds company and product recognition. Positioning the ludicrous product through private label aimed at the target market results in an effective, low cost marketing strategy. It is the solution to getting customers into the store and back again and again. In American, the government publishes a legislative memo of a cyber-cafe restriction in 2006 (New York Civil Liberties Union, 2006). The China government also publishes the same restrictions.Because intimately of the cafe will provide the service of internet, so, they should pay attention to theses legislative issue (Rodnin, 2005). Social and cultural environment A ccording to Australian Coffee Traders Association, Annual General Meeting 2006 that pointed out overall speaking, the Australian coffee market is very competitive but consumers are brand-loyal (ACTA, 2008). Australia is a country of different immigrants, curiously proud of a traditional strong coffee culture started by European immigrants(AusFoodNews,2010). The strong coffee culture of Australia has influenced growth in coffee shops, especially among the younger generation.Coffee drinking has become an intrinsical part of the modern lifestyle. In Australia, the specialist coffee shops have become more than just a place to drink coffee. Increasingly, coffee shops serve as places to meet for business and pleasure a location for peace and quiet away from home and office. ACTA (2008) stated that more than one billion cups of coffee are consumed in cafes, restaurants and other outlets each year, this is an increase of 65% over the last 10 years. The Coffee ingestion of Australian per capita has doubled over the last 30 years (ACTA, 2008).According to a new herald by Euromonitor International Consumer Foodservice in Australia. (2004) the number of transactions through coffee shops grew by 7% and nurture sales grew by almost 29%. Technological environment Technological advances in Australia have resulted in an increase usage of the internet. This has resulted in all industry expanding into a new channel offering services, marketing and selling products over the internet. For Dot. L, the cafe can take this advantage which is using intern as the companys channel to promote the marketing. CompetitorThe popularity of franchising as a business opportunity in Australia has also had a significant impact on the number of chain specialist coffee shops, such as Gloria blue jeans, The Coffee Club, Zarrafas Coffee which expanded mainly through franchising (Market Research World, n. d. ). Euromonitor Internationals research figures that the Gloria Jeans chain had the lar gest increase in outlets in 2004, thereby boosting its market touch from 28% in 2003 to 37% in 2004. Gloria Jeans has already opened over 900 shops just intimately the world, and 407 stores are established in Australia-wide.Therefore, Gloria Jeans can be regarded as the most mesomorphic competitor. The Coffee Club has expanded its business to overseas, including Beijing, Bangkok, Dubai and Thailand. It has had more than 200 stores across the whole world. Compared with these two brands Gloria Jeans and The Coffee Club, Zarrafas Coffee is a young brand. The brand comes from Gold Coast, and it only has 14 years history. Zarrafas Coffee has 41 stores across South East Queensland. Consequently, Zarrafas Coffee can be thought as the least powerful competitor for Dot. L.According to the report, sales of hot drink products in Australia surpassed A$1350m in the year 2008 and is expected to be worth A$1473m in 2013, with the coffee category accounting for the largest share followed by tea (Trading Room, 2010). It can be assumed that more people might enter the cafe industry. Market research In this section is to present the research about the marketing research for the Dot. L Coffee. Since this is a brand, the main goal of the Dot. L Coffee is to establish brand awareness among the target audience, which is business people, and 94 percent of them are aged 25 to 40.In this research, it chooses 10 male and 10 female to do the interview. encounter 1 The Frequency of the respondents to have coffee pic externalize 2 The Buying Habits of the Respondents pic According to the variant 1 and 2, of the business people that polled, 70 percent utter they have coffee every day. And a full 58 percent said they prefer to revel coffee in the cafe. Others will enjoy coffee in their office or at home, here, 52 percent of them will cloud the coffee products in the coffee shop, and 47 percent of them prefer buy it form the supermarket.Figure 3 The Acceptable Price per Coffee of th e Respondents pic 45 percent of the respondents said that they would like Latte, and both of respondents who prefer Espresso and Mocha are divine 15 percent, 25 percent of respondents choose Cappuccino. Referring to the figure 3, 70 percent of them represent the acceptable price per cup of coffee is $3-8 dollars, and below $3 dollars and preceding(prenominal) $8 dollars will share the same percentage of 15 percent. Take a look at this chart, the best media mix, then, would be a combination of TV and magazine advertisements.Both of TV and magazine were divine 30 percent of the total population. And 20 percent of people prefer print advertisement. To conclude, even though our target audience is clearly defined, introducing a new product is always a gamble. But with the decent media mix we can certainly lessen the chance of failure. Customers The primary target market for the Dot. L Coffee will be the local business people. The cafe will be a sit-down coffee shop with wi-fi connecti vity. The cafe will serve a variety of flavored latte, coffee products, drunkennesss, sandwiches, and treats to local customers.The target market consists of two market segments, that is people who are deeply in love latte and people who hope have a relaxing time and business people from the downtown business centers and professional buildings. Marketing objectives and Market tactics Marketing objectives The purpose of this marketing plan is to launch a cafe with sonant bakery, and professional coffees and which will bring simple cozy and friendly atmosphere. Based on the product features and marketing 4P principles, the three years specific marketing plan will be given over as the pursual to ensure objectives and expectations are met.Product First off all, the key customers are those people who fond into Latte which means the product consider is designed as professional Latte maker with friendly, easy communicate, able relationship atmosphere. In order to match the product co ncept simple and cozy so that the colouringing of the cafe should be designed as clean, comfortable. And the coffee cup and tableware would be designed to match the inner decoration as mildness and simple. The main special coffee is Latte. Meanwhile, espresso, cappuccino, mocha, and other specialty drinks will be available too.The latte flavors will include vanilla, chocolate, and caramel. This can be designed as the kickoff year menu and in the following three years the product will be cooked correspond to the market trend. Price The Dot. L cafe will specially offer delicate bakery with other beverages such as soda and juice. Coffee will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. alone prices take into consideration the cost of material, 25% for food and 45% for beverages. Espresso, cappuccino, mocha, and other specialty drinks will be available in two sizes and will cost $3. 75 and $6. 50.All different deserts will be sold by the slice such as cheese cake, chocolate cake, muffin, sandwich and cupcake. Prices range from $2. 75 to $8. 00. The frequent customer can join the membership and participate the buy 10 get one free activity. Place The cafe name Dot. L is from the coffee Latte which is combined with espresso and steamed milk. Hence, the image of the cafe will deliver simple and warm message to customers. The location of Dot. L will be choosing at Brisbane river side. The space will be designed with a glass room and interior will be more concise and mediterrane an style.The common area will have white coffee tables adjoin by plush chairs and sofas and allow customers to set up laptop and spread out paperwork. The walls will be painted into warm color to enhance the relax and friendly atmosphere. Promotion Besides, in order to develop the market and receive good story from the very commencement exercise. The Dot. L coffee bar will be promoted in a variety of ways. The annual budget allotment for advertising is $19,904 for the first year of operation. These monies will be distributed as follows 1. Southern Star Southern Star will be printed monthly showing the every night specials.They will be distributed throughout the area on cars, handed out at the library, delivered to the local office buildings, and posted on street signs and other obvious places. 2. Radio The cafe will run many another(prenominal) an(prenominal) radio spots on local radio stations. The ads will feature the daily coffee specials and will air during the morning and afternoon drive times to capitalize on drive-by traffic. 3. Entertainment The Dot. L coffeehouse will feature local entertainment every other weekend. The entertainers will provide music, poetry, art, and dancing. These events will be promoted through additional print and radio spots.Besides, Dot. L will engage in promoting premium varieties of coffee by educating their customers about the different coffees that are available. This strategy would lead to increase d sophistication among customers. 4. Web strawman The Dot. L Cafe will promote the business and specials over the net profit through a website. The website will be updated monthly to advertise specials and product offerings. The Radio and newspaper advertisement could be launch at the first half year to attract more customers. Entertainment and web presence should be substantial as long term promotion plan in the next three years.The Dot. L Cafe will promote itself to its new customers by offering discount memberships for frequent consumers. There will be buy 10 get one free card available for coffee. The remaining advertising budget will be used to print membership and frequent consumer cards. Serve the highest quality food and beverage and meanwhile maintain low cost of goods and inventory is one of the key objectives. Thus Logistics and distribution would be a crucial part as well. The fresh meats, cheeses, and vegetables will be purchased through good reputation food source distributors.The researching and negotiating of the best prices with distributors would be put into the project process too. Marketing Tactics To achieve the above marketing objectives, this plan considers the tactic through the marketing mix which includes product, promotion and pricing. Colour appeal, packaging and style are included in product section. As the before shown, the target market of the cafe is business people who works in downtown and modern buildings. These potential customers can be regarded as white collars and the middle class. They hold well-paid, and are to pursuit quality lifestyles.Based on these, the basic colour tone will be set as dark colour tone, such as chocolate-brown and black. The logo of the cafe is to stress a simple but elegant style. Because Dot. L cafe is a new brand for customers, so the promotion strategy must be heavy to entice the brand trial. The advised promotion approaches are print ad, billboard ad and in-store promotions. Setting a bill board ad on the way to the city and riverside is strongly advised. The cafe locates on the riverside for this reason, putting ad on ferry is recommended. The pricing objective is to appeal the people who take coffee daily.A regular size cafe au lait which is the main product is priced as $4. 50. The cafe can give 5% discount to people who hold senior card. Furthermore, a point card can be given in the store when customers are making purchase. The card allows that customers can get 1 free coffee after they buy 9 coffees. Market forecasting There are more than 100 cafes in Brisbane, and 17 cafes exist in Southbank where a part of riverside is. According to one market research (Weston 2010), more and more Australian have already totally accepted the coffee culture in addition, they are very to enjoy this culture.Therefore, a big growth on takeout coffee is brought by this social change. As a matter of fact, the flourishing demand of coffee drinking directs to the blast of many specific coffee shops. According to another research, Australians prefer to coffee with milk rather than other styles. Datamonitors Market Data Analytic (MDA) database indicates that retail coffee sales in Australia gained around A$752m. The Australia coffee market is in the second place around the Asian Economic in 2008. Another research predicts that the total amount around A$473m of profit can be reached in 2013.All in all, it can be concluded that there is a huge potential in the cafe market. Action plans According to the planed given above the relevant GANTT chart will guide this project go swimmingly complete on time. Figure 4 The Dot. L Project Schedule Dot. L ? ? Start-up Assets to Fund $26,000 inwardness Funding Required $88,290 Total Assets $26,000 Liabilities and Capital Liabilities Total Liabilities $33,290 Capital Planned Investment $55,000 Loss at Start-up (Start-up Expenses) ($62,290) Total Capital ($7,290) Total Capital and Liabilities $26,000 .2. Break-even Analysis Break-even data is presented in the chart and table below. pic Figure 6 Break-even Analysis Monthly Units Break-even 7,294 Monthly Revenue Break-even $18,462 Assumptions Average Per-Unit Revenue $2. 53 Average Per-Unit inconstant Cost $0. 63 Estimated Monthly Fixed Cost $13,847 3. Projected Profit and Loss In the first year, the Dot. L Coffee will have sales of about $533,764 of operation. In year two and three the Dot. L will have sales increases of about 10%, resulting in sales of $576,551 and $622,575, respectively.Operating expenses are $304,136 for year one, $327,694 year two, and $353,326 year three. The results for the first three years of operation are net income of $36,521 for the first year, $42,356 for the second year, and $47,819 for year three. Control Dot. L will continually evaluate the marketing environment, particularly the economic environment, due to the economic downturn, and the competitive environment. Further, in relation to the sp ecific tactics undertaken by Dot. L for the 36 month period, each will be assigned a person who will be accountable for the success of the tactic, as well as a specific final review date.Tactic responsibility Review date Promotions to focus on augmented product and core product Marketing tutor May 2010 benefits Determine price discounts and rollout strategy to clients Create newsletter and implement process for it to be focus Team Aug 2010 distributed monthly More Direct-response advertising in television Marketing Manager Sep 2010 instrument selling short-term modification recommendations Search for distributors with which to form channel Sales Director Jun 2011 partnerships . Expand business to more location Marketing Manager Mar 2012 Channel Manager Nov 2012 Sales Director Jan 2013 Conclusion This report sets out the marketing plan for Dot. L in Australia. It was decided that, Dot. L aims to be the cafe have own style and culture in Australia. In the vanity of the city, Dot. L can bring you the ease of a precious. The marketing strategy was explored, including each of the marketing mix areas, and tactics were recommended relating to direct-response an promotions, price discounts, and occur channel partnerships.It is believed that there is opportunity for Dot. L to built own brand culture and expand in cafe industrys marketplace. It is, therefore, this marketing plan can assist Dot. L growth in the marketplace.Reference list Acta (2008). AUSTRALIAN COFFEE STATS. Retrieved May 16, 2010 from http//www. acta. org. au/article. php? a=2 Hofmann (2008). Specialist coffee shops in Australia see vigorous expansion. Retrieved May 17, 2010 from http//www. franchiseek. com/Market_Trends_Coffee_Shops_Australia_0706. htm Jellie (2006). Coffee by numbers.Retrieved May 17, 2010 from http//www. smh. com. au/news/good-living/coffee-by-numbers/2006/07/17/115298845 5398. html New York Civil Liberties Union(2006), Legislative Memo Cyber-cafe Restrictions Retrieved May 17, 2010 from http//www. nyclu. org/content/legislative-memo-cyber-caf%C3%A9-restrictions-2006 Rodnin(2007), Motherboard makers may be affected by Internet cafe restrictions in China, Retrieved May 17, 2010 from http//www. vaosoft. com/forum/index. php? showtopic=441&pid=612&mode=threaded&show=&st=0 Shaun Weston (2010).Australian love coffee. Retrieved May 15, 2010, from http//www. foodbev. com/report/australians-love-coffee Trading Room (2008). Australia a nation of coffee drinkers. Retrieved May 17, 2010 from http//www. tradingroom. com. au/apps/view_article. ac? articleId=1196615 Wong (2010). Aussie cafe culture accounts for biggest growth in coffee. Retrieved May 17, 2010 from http//www. ausfoodnews. com. au/2010/03/04/aussie-cafe-culture-accounts-for-biggest-growth-in-coffee. html Appendix 1 The Questionnaire of the Coffee Market.This is a marketing research of the style, habits and opinions of coffee in your workaday life. Section 1 Basic Personal Information 1. What is your gender? A Male B young-bearing(prenominal) 2. What is your age? A 18-25 B 26-30 C 30-40 D Above 40 3. What is your Occupation? A Students B Business men C Employee D Others 4. Are you married or single? A wed B Single 5. What is your familys size? A 1-2 person B 3-5 person C 6-8 person D Above 8 person Section 2 6. Where can you get the information about coffee? A Internet B Magazine/ newspaper C TV D marker Advertisement E Others 7.Where are you usually buy the coffee product? A Supermarket B Internet C Coffee shop D Others 8. How offen do you drink coffee? A Every day B 3-4 times per week C Once a week D Never 9. Where do you usually drink coffee? A Cafe B At home C At office D At campus E Others 10. What kind of coffee would you like? A Latte B Espresso C Cappuccino D Mocha E Other specialty drinks 11. How much of a cup of coffee is acceptable for you? A $2-3 /cup B $3-5/cup C $5-8/cup D $8-10/cup E Above $10/cup Thank you for your participation