Marketing Paper

MARKETING PLAN

Assignment 1: Part A: Your Marketing Plan

Latanya Hawkins

Strayer University

MKT 500

Dr. Onukwugha

January 24, 2018

Introduction

Jolly Java is a unique neighborhood coffee shop located in Bowie, MD and has been in business since 2016. We offer different types of locally grown coffee beans. We also partner with the community college to provide work opportunities for students who are interested in being entrepreneurs. What makes this coffee shop unique is that it provides a friendly environment where people can meet and network with others from the neighborhood. We will also have Open Mic nights to give local performers a platform to showcase their talent. Jolly Java offers a place for people to meet in a comfortable, face to face meeting environment.

Executive Summary

Jolly Java is a coffee shop that offers different varieties of coffee and partner with local coffee roasters from the District of Columbia, Maryland and Virginia (DMV). We believe in supporting the community by hiring local talent which is why we partner with the community college to employ students and provide them with growth opportunities within the business. Jolly Java will offer a variety of menu options including of assorted coffee drinks, food items, and pastries. We are aware that people have the option of going to any coffee shop within the area, so we wanted to offer something different to stand out from the competitors.

Situation analysis – Jolly Java is a new business and marketing is important to its success and future profitability. The basic market need is to have a platform for local performers to have a place to showcase their talent and to meet other performers to network and connect. Jolly Java has researched the coffee shop market to determine profitable sales, costs, trends and competitors.

Market analysis

Market Trends

The market trend is headed towards a more community environment than a commercial setting. The coffee shop patrons would like to experience a new and innovative place where they can enjoy coffee. The Open Mic night will add a new dimension to the coffee shop experience.

Competitors

The Competition comes from several different sources.

Restaurants

There are many different types of restaurants where they offer Open Mic nights. However, many of them do not have the business mission to serve and employ the community.

Coffee Shops

Coffee Shops are typically a social setting that does not foster an environment where the customers are communicating with each other. Most people go to the coffee shop to access free Wi-Fi or have business meetings. Coffee shops rarely have any type of activities that helps the people in the community get to know each other.

Marketing Strategy

Jolly Java’s goal is to compete with the leading coffee shops like Starbucks and Einstein bagel. We would like to have a coffee shop in the Prince George’s County area that contributes towards the growth of the economy within the county. Jolly Java’s strategy will be based on communicating value to the targeted market. This will be done through a variety of methods. The first method will be to strategically place advertisements in the local newspapers, and Arts magazines that details all the entertainment in the DMV. The libraries and schools will have advertisements posted to target the younger demographic. Another source of marketing will be to develop relationships with companies that have a similar customer base. One example is Busboys and Poets. Busboys and Poets is a restaurant/bookstore that offers Open Mic Nights for local talent. In strategically building a relationship with Busboys and Poets, it will be mutually beneficial where both organizations will develop visibility for each other. The other form of advertising will be to target potential customers by offering 10% off for a first-time visit. The coupon will be an incentive to draw in a for new business.

Financial objectives - A double digit growth rate for each future year and reach profitability within the first year.

Marketing Tactics

Jolly Java will use live videos such as Facebook Live and Instagram stories to capture attention and encourage followers to connect more with the shop. We will highlight our team members on live video so customers can get to know them. We will take our followers behind-the-scenes to show what it’s like to prepare the coffee and food items in the real time. We will promote new coffee flavors based on the feedback that we receive from the Customers.

Another marketing tactic will also be to offer free Wi-Fi to our customers to gain new subscribers. Before guests connect online they will be directed to a capture page to collect their email addresses. Lastly, we will use user generated content. We will encourage our customers to leave positive reviews on our Facebook Business Page, Yelp and Google and based on their experience by providing a direct link with their email receipts where the customer can click and write. (www.profitableventure.com)

Financial Projections

· Starting Number of Customers Per Day = 50

· Number of Days Open Per Month = 26

· % Monthly Growth Rate of Customers During Year 1 = 10%

· % Monthly Growth Rate of Customers During Year 2 = 8%

· %Monthly Growth Rate of Customers During Year 3 = 5%

Jolly Java will estimate the average purchase per customer visit and then estimate what the average cost will be for that order.

· Average Purchase per Customer Visit = $5

· Average Cost of Goods Sold per Customer Visit = $2

Break-Even Analysis

Implementation controls

The following chart is to identify key marketing programs.

Mission Statement

To establish a coffee business that will serve assorted coffee drinks and to invest in the community by supporting local establishments while providing a relaxed and friendly atmosphere.

Short Term Goals

The short-term goals that Jolly Java would like to achieve within the next year is to make sales and marketing a priority, build and nurture customer relationships, attract and retain talented employees, and collaborate with the team to brainstorm new ideas. To achieve this, we will do research on how to use online tools to automate marketing of the business to generate new customers. We will achieve this by offering weekly specials through social media outlets on Facebook, Twitter, and Instagram and then schedule the messages to post throughout the month. Another goal will be to automate reordering supplies. We’ve researched past invoices to see how often we purchased stock items like coffee beans, sugar, syrups, and cups. The data will be used to create an automated reordering of mostly used supplies. This will help us to analyze our ordering habits and save money by reducing how often we purchase less popular items and instead focus on ordering the most used products in cost-saving bulk quantities. To build and nurture customer relationships, employees will recall details from the regular customers, such as remembering their favorite coffee or pastry and, having their favorite barista make their drink order, as well as addressing them by their name while greeting them. (www.MPlans.com) This can easily build high-quality relationships and grow a loyal customer base. Secondly, it’s important for Jolly Java to attract and retain talented employees by offering flexible and balanced work-life schedules. Working hard is important but taking time to relax and recharge batteries is just as important. It’s important to have areas in which the employees can relax. We believe that celebrating the team’s success is key to keeping employees motivated. Occasionally, we will bring the team together to take a break from the day and go out to lunch together to celebrate wins.

Long Term Goals

The long-term goals that Jolly Java would like to achieve is to increase sales, brand recognition, and host promotional events. To increase our sales goal, we will focus on increasing the number of customers that we have by this time next year. We currently average 50 customers per day. We would like to see 100 per day. Brand recognition is important to Jolly Java. To achieve this, we will maintain a consistent presence on social media, regularly participate in community activities and events and include our company logo on all advertisements. Jolly Java will also be hosting promotional events for our Open Mic nights. To increase our customer base, we will be utilizing the event planning tool Eventbrite. We will charge a small cover of five dollars to bring in additional revenue for the business. Hashtag marketing will be used to promote events as well. Hashtags are used to search and group specific topics. Twitter is a good social media site for hashtags. (www.smallbusiness.chron.com)

Environmental Analysis

Competitive – A variety of coffee shops offering the same products and competing for the same customer base. Restaurants hosting Open Mic nights on the same night

Economic – Market uncertainty and unemployment is commonplace; Consumer confidence is improving slowly; Health conscious people who would like to lower their caffeine intake.

Political – Employment law, states increasing minimum wage

Legal – New legislation around sustainable coffee production will impact consumers in the United States

Technological – New inventions, including advanced roasting techniques can provide advantages. An App to make it easier for customers to place an order online and pick it up to decrease wait time.

Sociocultural forces – Lifestyle changes, including longer working hours are making a coffee ‘pick-me-up’ a regular part of the working day. Coffee containing high levels of anti-oxidants which are beneficial and may protect against diabetes, Parkinson’s and liver disease.

SWOT Analysis

Strengths

· Strong relationships with local vendors

· Talented well-trained staff who are customer attentive

· Events for local talent for our Open Mic Nights.

Weaknesses

· Limited marketing budget to develop brand awareness

· Having consistent talent for Open Mic night

· No experience with opening/running a business

Opportunities

· The ability to attract a different target market (i.e. non-coffee drinkers)

· The ability to hire and train employees from the local colleges

· Opportunity to open franchising

Threats

· Competition from other coffee shops/ Open Mic venues

· Price increase supply and demand, cost of living

· Competitors offering similar products

REFERENCES

Kotler, P., Keller, K.L. (2016). “A Framework for Marketing Management”, Sixth Edition. Northwestern University, Dartmouth College.

Webb, C. (2019, January).” Marketing Plans for a Coffee House” Retrieved from https://www.smallbusiness.chron.com

Palo Alto Software (2018). “How to write a Marketing Plan” Retrieved from https://mplans.com/articles

Start DateEnd DateBudgetManagement

Advertising2/1/20163/1/2020$500Jason

Marketing Plan Completion2/1/20163/1/2020$9,000Jason

Strategic Relationships2/1/20163/1/2020$4,500Jason

Promotional Advertising2/1/20163/1/2020$3,000Jason

Total Advertising Budget$17,000

20162017201820192020

Potential CustomersGrowth

Open Mic Customers10%150,000$ 165,000$ 181,500$ 199,650$ 219,615$

Regular Customers8%120,000$ 129,600$ 139,968$ 151,165$ 163,258$

Other 0%0%0%0%0%0%

Total

18%270,000$ 294,600$ 321,468$ 350,815$ 382,873$

Monthly Revenue Break-even37,000

Assumptions:

Average Percent Variable Cost18%

Estimated Monthly Fixed Cost22,312