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Marketing Communications

Date: 18/05/2018

    

    

     

   REPORT ON THE MARKETING  COMMUNICATIONS   PLAN FOR THE LAUNCH OF  COFFEE BREAK CHAIN OF COFFE SHOPS IN THE UK

To: The Board of Coffee Break Refreshments Group Plc

MAY 2018

    

Table of Contents

1. Introduction

1. Context analysis:

2. Marketing Communication objectives:

3. STP: Segmentation, Targeting and Positioning strategies

4. Marketing Communications Strategies

5. Creative interpretations

6. Route to attitude change

7. Marketing Communications Mix

8. Media mix

9. Budget and scheduling

10. Control and evaluation

   1.Introduction

For centuries millions of people around the world have enjoyed the energising effects of coffee and even after hundreds of years of growth worldwide coffee consumption is on the rise1. The freshly made coffee shop industry goes through exceptional transformations due to rapid developments, a monumental boom and an almost unbelievable changes in client behaviour. Consumers are more discerning than ever and they pay attention and consideration not only to the price, but also to the origin, the blend and the ethical sourcing of the cup of coffee they decide to buy.

This Report aims to provide The Board of Coffee Break Refreshments Group Plc with relevant strategic marketing data and information to enable the Members of the Board to formulate a short, medium and long term strategy and to decide how the business will develop in a sustainable and profitable way.

.2. Context analysis

Industry issues (competition, market share)

The coffee industry has many barriers to entry, the main obstacle remaining the fierce rivalry between outlets within the industry. Three major players – Starbucks, Costa Café and Café Nero saturate the market with outlets situated in the most profitable locations (airports, railway stations, shopping malls, bus terminals, hospitals, universities, supermarkets, etc). They offer the widest quality range offers in their coffee products and for most coffee drinkers the consistency of taste, blend, strengths are essential when returning to have a highly addictive delicious drink. They also offer their own blend of coffees which consumers can take home and enjoy by making themselves the same drink they had in the coffee house. Coffee can be black, white (adding milk and or cream) hot, cold, chilled, blended by the customer according to taste with chocolate, cinnamon, syrup (99 varieties), brandy, cognac, whiskey, etc.

 Positioning map for the coffee marketplace

This  map is suggesting  criteria used by consumers  in this marketplace, and what tip of environment is created in the premises and the range of coffee's on offer, and a number of brands (bookshop cafes being a variety of individual brands).We want to put the Coffee Break brand in the same position with other brands like Nero or Costa.

3.STP: Segmentation, Targeting and Positioning strategies

All the employees that are needed to effectively run the business has been duly employed and trained to effectively handle their roles and help build the company. We have specifically trained our employees to handle the teeming influx of consumers everyday- this is hinged on the fact that we are located in a busy environment.

The needed equipment (Espresso machine, Coffee maker, and Coffee grinder, et al) and accessories (microwave, toasters, dishwasher, refrigerator, blender, et al) for a standard coffee café.

The Coffee Break will serve well brewed coffee in various forms to our highly respected customers. We are quite aware that people have the option of demanding the form in which they want their coffee to be served in, which is why we have taken time to research and learn the various ways coffee can be served,

 We will have established relationships with suppliers of some of the finest coffee beans from Brazil, Turkey, Africa, and Europe.

 The products that will be available in our coffee shop / bar;

Coffee Beverages served in different forms (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.

Sanwices and Pastries

Our vision is to build a coffee business that will by friendly,and will  serve as a stress reliever to our customers.

To establish a coffee business that will serve available assorted coffee drinks to our highly valued customers in a relaxed and conducive atmosphere.

The people we intend selling our products to are;

Corporate Executives

Business Men and Women

Sports Men and Women

Government Officials

Students

Airport Employees

Tourists

Familie

Our intention of starting a coffee shops is to test run the business for a period of 3 to 5 years to know if we will invest additional money, expand the business and sell franchise which is why we are only settling with just an outlet for now.

Strength:Our area of strength in Coffee Breakis is not limited to the location of the coffee bar and also the varieties of coffees that we serve, but also our excellent customer service and the ambience of our Coffee shop.

Weakness:

The perceived weakness for our business could be that we are starting on a small scale.

Opportunities:

The fact that we are going to be operating our coffee shops in hall UK. with unlimited opportunities to sell our coffees and pastries. We are certain that we are not going to struggle to attract customers; all we have to do is to maintain the quality of our products and also offer excellent customer services in order to continuously welcome repeated customers.

Threat:

One of the threats that are likely going to confront us is the policy of the local authority .

Our Competitive Advantage

We plan to run a standard coffee business which is why we hired one of the leading business consultants to work with us in setting up our coffee business.

Sources of Income

Our sources of income for Coffee Break are limited to the sales of different types of coffees and pastries. But in the future, we may likely go into the sale of franchise which is going to be an additional source of income for the company.

Sales Forecast

It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.

The sales projection  of the coffee shops and the traffic that the location attracts every day of the week:

Coffee (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al:

1,000 Cups of Coffee Per Day

Pastries (Sandwich, Bread, Meat Pie, Scotch egg, Pizza, Burger, and Fish Pie et al):

1,000 pieces per day

The idea is to attract as many people as possible to our coffee shops.

In view of this, our annual projected sales for  is put at about 500,000 pounds annually.This is in line with the industry averages for this size of coffee shop in the UK.

Our Pricing Strategy

When it comes to fixing prices for the range of coffees and pastries we sell, we are going to ensure that we set pricing in line with what is available in the coffee industry. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they consume our coffee and pastries

We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees.

Our Unique Selling Point; What Makes Our Coffee Shops Superior to Our Competitions

It is really advisable that every brand that wants to break even in their industry to have a unique selling point. This is what   we have done with the way we have carved out what makes us tick. Our unique selling point as a coffee shop cannot be far fetched; we are located in one of the busiest airports in the world. That alone will give us leverage over our competitors in the industry.

Part of our unique selling strategy is to ensure that we have assorted coffee in our coffee bar at all times. This will give our customers and potential customers the options to make their choice whenever they want to buy coffee from us.

As part of what we intend doing to outperformed our competitors and build a profitable coffee shop with loads of loyal customers, we will work towards ensuring that our coffee café is designed and constructed in such a way that it will meet the expected standard required by the authority and in such a way that it will be relaxing and conducive for networking and socializing.

We will also ensure that at all – times good music (live band, karaoke and jazz et al) will be played at the background to create the ambience that our customers will cherish while consuming their coffee in our coffee café.

Benefits Our Client Stand to Gain When They Patronize Our Coffee Shops

Aside from the fact that our customers will have the opportunity to buy neatly brewed assorted coffees, they will also have the opportunity to drink their coffee in a relaxed environment. We will ensure that we coffee beverages served in different forms (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.

In view of that, here are the benefits our customers and potential customer stands to benefits when they purchase our coffee from our coffee café:

Good quality and neatly prepared coffee

A relaxing and conducive environment for networking and socializing not ignoring the fact that at all times good music (live band, karaoke and jazz et al) will be played at the background to create the ambience that our customers will cherish.

The best price / deal they can get in the whole of the UK

Opportunity to choose from a wide range of assorted coffee

Excellent customer service experience from our highly trained employees

Strategic Marketing Alliance with Our Competitors in the Coffee Shop Industry

No doubt it will be pretty difficult to enter into a strategic marketing partnership with your competitor in the coffee shop business. This is so because every coffee café you come across would want to do all they can to attract as much customers as possible within the locations where their coffee shop is located.

If at all there is any strategic marketing partnership that can be formed in the industry, it could be between a coffee café and perhaps a coffee producing company or coffee wholesale distributor.

For instance; if you own a coffee shop, you can strike a marketing partnership with a coffee producing company or coffee wholesale distributor to supply you assorted coffees and then sell to your customers before making payments. With that, you can comfortably order as much coffees as possible since you are not paying on cash.

Our Customer Retention Strategies (Ways to Improve Our Customer Experience)

When it comes to retaining your customers in any business, you must work hard to continue to meet and even surpass their expectations whenever they buy your goods and services from you. The success of any business is directly proportional to the numbers of repeated business they are able to generate.

If a company is able to achieve over 60 percent retention the company will sure experience huge turn over. We have perfected plans on how to improve our customer experience from time to time whenever they patronize our coffee café.

These are the ways we intend utilizing when it comes to improving our customer experience so that we can create a good impression and generate repeated sales from them:

Ensures that our coffee taste good and neatly served at all times

Ensure we get feedback from our customers at all times

Give our customers the flexibility to choose from a wide range of assorted coffee.

Make use of effective customer relationship management

Ensures that we carry our clients along when making decisions that directly affect them.

Possible Ways We Intend Offering Incentives to Our Customers / Clients (Bonus, Discounts, etc)

Part of our marketing strategies which is clearly stated in our business plans is to ensure that we offer our customers incentives in order for us to retain them and of course continue to generate repeated sales from them and also to attract new customers. We know that if we are going to win our own fair share of the existing market, then we must be willing to outsmart our competitors.

In view of that, we will ensure that we sell our neatly brewed coffee a little bit below the average price in the industry. We will regularly give discount (different percentage) to our customers based on the total amount / cups of coffee they purchased from us any time they visit our coffee shop.

We will create a loyalty plan that will enable us reward our loyal customers especially those who are able to helps successfully market our locally coffees to their family members, friends and colleagues. Rewarding them could be giving them discounts on every purchase they make and also giving them gifts during special occasions like Christmas, New Year, Easter, Thanksgiving  Celebrations et al

After Sales Service and Customer Support

Well the nature of coffee business does not warrant that we offer after sales services or customer supports but we will ensure that we try as much as possible to always get feedback from everyone that purchases coffee from our coffee shop. With that we will be able to know how to meet their needs and improve on the quality of our coffee if need be.

We will ensure that we open several communications channels such as email, telephone and social media platforms so as to enable our customers communicate to us or lodge their complaints.

10 Possible Questions We Intend Asking Our Customers during Our Market Survey

1. Are you satisfied with the taste and quality of our coffees?

2. If you are not satisfied with the taste and quality of our coffees what areas would you want us to improve on going forward?

3. Which of our assorted coffee flavor do you prefer the most?

4. How would you want us to communicate to you when have any promo or if we have information that will benefit you or your family members and friends?

5. How much are you willing to pay for a cup of coffee?

6. Is there any flavor of coffee that you would prefer to buy which is unfortunately not in our menu? If yes please list them.

7. Are you comfortable with the security setting in our coffee bar? If no, in what area would you want us to improve on?

8. If you are to change one thing in our coffee bar what would that be?

9. Can you comfortably recommend our assorted coffees to your family members, friends and colleagues?

10. Are you satisfied with our customer service delivery? If not what areas would you want us to improve on?

   

Budget and scheduling

Activities/Time

May

June

Jul

Aug

Sep

Oct

Budget

1m

5m

2m

3m

4m

5m

LAUNCH

TOTAL

£20M

9.Budget and scheduling

The initial budget is built from 20 million pounds over a 6-month period. The basic idea is to open up around 40 coffee shops in the UK. Locations should be carefully chosen in commercial areas, airports, the city center and generally in places with high traffic.

At the same time with the search for locations we need to consider the allocation of advertising funds. This must be done in all possible forms, off line and on line.

Control and Evaluation

10.Offline marketing channels are TV, radio, direct mail, print advertising and billboards and more.

 • Print ads

• TV

• Radio

• Inserts

• Magazine and newspaper articles

• Classifieds

• Direct mail

• Direct response

• Local “distribution” channels

Online marketing reaches people via the internet, which can be accessed by PCs, tablets, smartphones.

-Text messages, e – mail, or via mobile apps (BBM, twitter, WhatsApp et al)

To ensure that you get the kind of traffic, attention, ratings, and commercial results you want you need to invest in and manage a wide array of different strategies and tactics.

References:

 The beloved brew is big business. The Motley Fool.  https://www.fool.com/investing/2017/01/23/11-coffee-stats-that-will-blow-you-away.aspx

 Western European Coffee Market Size Report http://www.scanews.coffee/2017/11/28/2017-western-european-coffee-market-size-report/

Chris, F and Graham, H., 2010. Marketing Communication. London: The Chartered Institute of Marketing.

 International Communicaffe at https://www.comunicaffe.com/here-is-the-secret-to-enjoying-a-greener-and-cleaner-cup-of-coffee/

https://www.researchgate.net/publication/284307352_Online_and_Offline_Marketing_Strategies_by_Indian_Colleges_and_Universities_A_Comparative_Analysis_of_Students'_Perception

Larry, P., 2014. Strategic Integrated Marketing Communications. South-Western: Cengage Learning.

Steven, P., 2008. Destination Marketing: An Integrated Marketing Communication Approach. New York: Butterworth-Heinemann.

Terence, A. Shimp, J and Craig, A., 2012. Advertising Promotion and OtheR Aspects of Integrated Marketing Communications. South-Western: Cengage Learning.

Tony, Y., 2012. Integrated Marketing Communications. Oxford: Butterworth-Heinemann.

http://pure.au.dk/portal/files/48206816/Measurement_of_marketing_communication_performance_in_B2B_organisations

https://media3.bournemouth.ac.uk/marketing/10branding/05position.html

https://www.profitableventure.com/coffee-shop-marketing-plan-ideas/

https://www.ukessays.com/essays/marketing/integrated-marketing-communication-plan-for-costa-coffee-marketing

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