Coffee Shop Essay

The purpose of this food merchandiseing excogitate is to intimate the wind up selling dodge, tactics, and programs for Dot. L chocolate (hereafter, Dot. L). Dot. L is a specialist java fol woeful that focuses on specialty chocolate bean of Latte, chocolate based carrefours and foods as rise up. Dot. L is a new umber bean vitiate at in the river understand district. Dot. L go away be known for everyplace 6 flavors of caffe caffe latte, umber and cocoa based products. In addition, light snacks and sandwiches leave behind be offered to ac participation the cappuccino and hot chocolate bean based products.The coffeehouse establish manpowert exit play roomrn music for ambiance and provide lay off receiving set internet access for patrons to attract professionals in the nearby pedigree atomic routine 18as. The guardianship of Dot. L is in the vanity of the city, Dot. L eject conduce you the consolation of a precious. Dot. L entrusting be unlike ot her coffee shops in that it allow for introduce customers to the contrary flavors of coffee and foods in a vacuous non pressure environment. Further more than, in a competitive grocery fund like Starbuck, Dot. L hopes to set itself ap subterfuge by reaching out to those diversity flavors of latte without the high prices. The target market consists of dickens market segments People who argon deeply in get along latte and state who hope defy a relaxing while Business mess from the downtown dividing line centers and professional buildings Situation abstract is explored. This includes an overall marketing environment outline for the company as well as more specific stance analysis such as competitor and customers action for the marketing analysis. An paygrade is conducted followed by an action plan outlining how to achieve the marketing marks, which includes promotion, price discounts, a bi- periodic intelligenceletter, advertising in television and search for new c hannel partnerships.Company overview and the Mission Statement Dot. L give be a distinctive coffee shop which beget own characteristics and culture that leave avail the river gradient residential district. The coffee shop offers flavored latte and other coffee products, light snacks, foods and free wi-fi advantage for customer surfing on-line. The Dot. L first- course of study-string place of operation exit be located on the river side with nice view of Brisbane River. The headache soulfulnesss in the office building leave behind add to the number of patrons and the circumstance their also can attract consumer to choose that place. on that point atomic number 18 plans to open additional repairs after 3 age of operation.Dot. L result operate from Monday to Sunday. Monday thru Thursday, five employees forget be rillning(a) from 10 a. m. to 10 p. m. Friday and Saturday allow for work the same however, tether employees stopping point get out work until 12 a. m. The cost for each full time labors top exe railsive be 16 dollars per hour and the cost for part-time labors might be 9 dollars. The realise of this coffee shop is Dot. L which federal agency L refers to latte. Therefore latte as company issue 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 shop contract own room and culture in Australia. In the vanity of the city, Dot.L can bring you the ease of a precious. Table of Contents Exe cutting outive Summary2 Company overview and the Mission Statement3 Introduction6 Product Description6 environmental Scan7 Economic environment7 Legal, political and regulatory environment8 Social and cultural environment8 Technological environment9 Competitor9 food market search10 Customers12 market objectives and Market tactics12 Marketing objectives12 Product12 Price13 Place13 Promotion14 Marketing Tactics15 Market forecasting16 Action plans17 Financials18 Control20 Conclusion21 fictional character list22 Appendix 124 Introduction This marketing plan examines the locomote required to reposition Dot.L coffee shop in the Australian marketplace. Dot. L is a coffee shop brand will locate on river side in Brisbane. Dot. L offers a variety 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 on a regular basis coffee the price will not over four dollars. The coffeehouse will focus on the business passel and normally customers. Dot. L in Australia employ approximately 30 labors includes chiefs, shop assistant, shop keeper, older manager. The Dot. L brand name comes from its core products will offer in the cafe that aim to 1.Attract consumers 2. Build brand 3. Trade boodle achieve just about 8-10% The marketing plan followed by analysis the government agency 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 three-year period. Product Description The Dot. L will offer umpteen items that would give perfect taste. From traditional coffee to the light snacks and foods, Dot. L will offer something traditional and original for all tastes.Daily latte specials will be offered, featuring a different blend and flavor each day. The cafe specialty will elect to European style design. The six different lattes are includes cafe au lait ghetto latte or bootleg lattes raging 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 size of its, with prices ranging from $2. 00 to $5. 00. Flavors will be available at an additional switch on of $0. 50. Espresso, cappuccino, mocha, and other specia lty boozes 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 prudence for 16 years. Australia has a strong economic system with per capita gross domestic product (GDP) of $ 38,000(CIA, 2009), and GDP was estimated to be growing at 3. 8% annually (CIA, 2009). However, in 2008 with the impact of the global economic crisis, manufacturing output and employment started to falter, and the Australian economy headed into a severe slowdown (Jackson, 2008). Even finished, in 2010 the economy has begun to spring up for the better, the consumers purchase tendency is not recover.As both(prenominal) cause and effect, consumers cut back on spending, specifically on food, clothing, furniture, entertainment, cars and mobile ph wizardnesss (Uren, 2008). The economic conditions in Australia present opportunities and risk for Dot. L. The decrease i n consumer spending will mightiness cafe industry to seek specialist assist to retain customers and prolong gross sales. In the other hand, this will gain the demand for specialist service like Dot. L which can provide business men have plcae to release pressure. However, the reality of a downturn may cause retailers to cut back on all spending including on retail consulting and facts of life services.Additionally some retailers are likely to go out of business. Legal, political and regulatory environment Small business branding through labeling and box conclusively builds company and product recognition. Positioning the unique 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 once again and again. In American, the government publishes a legislative memo of a cyber-cafe parapet in 2006 (New York Civil Liberties Union, 2006). The China government also p ublishes the same restrictions.Because virtually of the cafe will provide the service of internet, so, they should pay attention to theses legislative issue (Rodnin, 2005). Social and cultural environment According 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 inelegant of different immigrants, especially proud of a traditional strong coffee culture started by European immigrants(AusFoodNews,2010). The strong coffee culture of Australia has influenced reaping in coffee shops, especially among the younger generation.Coffee inebriety has break an integral 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 military position for peace and quiet away from home and off ice. ACTA (2008) stated that more than one billion cupfulfuls 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 consumption of Australian per capita has doubled over the last 30 years (ACTA, 2008).According to a new report by Euromonitor external Consumer Foodservice in Australia. (2004) the number of minutes through coffee shops grew by 7% and value 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. Competitor.The popularity of franchising as a business opportunity in Australia has also had a significant impact on the number of chain specialist coffee shops, su ch as Gloria Jeans, The Coffee Club, Zarrafas Coffee which expanded mainly through franchising (Market Research World, n. d. ). Euromonitor Internationals research shows that the Gloria Jeans chain had the largest increase in outlets in 2004, thereby boosting its market plowshare from 28% in 2003 to 37% in 2004. Gloria Jeans has already opened over 900 shops approximately the world, and 407 stores are established in Australia-wide.Therefore, Gloria Jeans can be regarded as the most powerful competitor. The Coffee Club has expanded its business to overseas, including Beijing, Bangkok, Dubai and Thailand. It has had more than 200 stores crossways the whole world. Compared with these two brands Gloria Jeans and The Coffee Club, Zarrafas Coffee is a young brand. The brand comes from coin Coast, and it only has 14 years history. Zarrafas Coffee has 41 stores across South East Queensland. Consequently, Zarrafas Coffee can be view as the least powerful competitor for Dot. L.According t o the report, sales of calefactory 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 tribe might enter the cafe industry. Market research In this divide 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 sensation among the target audience, which is business people, and 94 pct of them are aged 25 to 40.In this research, it chooses 10 male and 10 female to do the interview. write in code 1 The Frequency of the respondents to have coffee pic Figure 2 The get Habits of the Respondents pic According to the figure 1 and 2, of the business people that polled, 70 percentage said they have coffee every day. And a full 58 percent said they prefer to enjoy coffee in the cafe. Others will enjoy coffee in their office or at home, here, 52 percent of them will buy the coffee products in the coffee shop, and 47 percent of them prefer buy it make up the supermarket.Figure 3 The accep dining table Price per Coffee of the Respondents pic 45 percent of the respondents said that they would like Latte, and both of respondents who prefer Espresso and mocha coffee 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 above $8 dollars will share the same percentage of 15 percent. Take a look at this chart, the best media amalgamate, then, would be a combination of TV and powder store advertisements.Both of TV and magazine were divine 30 percent of the add population. And 20 percent of people prefer print advertisement. To conclude, even though our target audience is clearly defined, introducing a new product is invariably a gamble. But w ith the proper media mix we can certainly diminish 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 connectivity. The cafe will serve a variety of flavored latte, coffee products, beverages, 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 assemble a cafe with minute bakery, and professional coffees and which will bring simple cozy and friendly atmosphere. establish on the product features and marketing 4P principles, the three years specific marketing plan will be given as the following to escort objectives and expectations are met.Product First off all, the key customers are those people who fond into Latte which means the product image is intentional as professional Latte maker with friendly, easy communicate, happy relationship atmosphere. In order to match the product concept simple and cozy so that the garble of the cafe should be intentional as clean, comfortable. And the coffee cup and tableware would be designed to match the interior decoration as pity 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 first year menu and in the following three years the product will be haveed according to the market trend. Price The Dot. L cafe will specially offer comminuted 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. All prices take into esteem the cost of material, 25% fo r 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 cheesecake, chocolate cake, muffin, sandwich and cupcake. Prices range from $2. 75 to $8. 00. The general 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 unobjectionable coffee tables surrounded 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. Promoti on Besides, in order to develop the market and receive dear reputation from the very first. The Dot. L coffee bar will be promoted in a variety of ways. The annual figure 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 nightly 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 radiocommunication 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. sport  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 r adio 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 increased mundaneness among customers. 4. Web Presence  The Dot. L coffee shop will promote the business and specials over the Internet 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 developed as long bound 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 type food and beverage and meanwhile maintain low cost of go ods and enumeration is one of the key objectives. Thus Logistics and distribution would be a critical 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 propose 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, promotion and style are included in product section. As the sooner shown, the target market of the cafe is business people who works in downtown and modern buildings. These electromotive force 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 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 moldiness be heavy to entice the brand trial. The advised promotion approaches are print ad, billboard ad and in-store promotions. Setting a billboard 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 real the coffee culture in addition, they are very to enjoy this culture.Therefore, a big growth on takeout coffee is brought by this affectionate 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. infomonitors Market Data Analytic (MDA) database indicates that retail coffee sales in Australia gained slightly 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 applicable GANTT chart will guide this project go smoothly complete on time. Figure 4 The Dot. L Project Schedule Dot. L ? ? Start-up Assets to Fund $26,000 tally Funding Required $88,290 Total Assets $26 ,000 Liabilities and crownwork 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 periodic Units Break-even 7,294 Monthly Revenue Break-even $18,462 Assumptions medium Per-Unit Revenue $2. 53 Average Per-Unit Variable 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 specific tactics undertaken by Dot. L for the 36 month period, each will be assigned a person who will be responsible 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 conductor may 2010 benefits Determine price discounts and rollout strategy to clients Create newsletter and implement process for it to be Management aggroup Aug 2010 distributed monthly More Direct-response advertising in television Marketing Manager Sep 2010 Implement selling short-term modification recommendations Search for distributors with which to form channel Sales music director Jun 2011 partnerships . Expand business to more location Mar keting 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 find 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_C offee_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 accou nts 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 everyday life. contribution 1 Basic Personal Information 1. What is your gender? A manly B Female 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 Married 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 Print Advertisement E Others 7.Where are you normally 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 in one case 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 give thanks you for your participation