Marketing Planning and Management



Marketing Planning and ManagementCold Brew Marketing PlanStudent Names: Anastacia Clarke, Bernie Ng, Kaysee Felgate, Kirsty Chapman, Stephan Wang5715004284345Assignment InformationStudent Names and Numbers: Anastacia Clarke N9112561, Kaysee-Jane Felgate Faulkner N8592373, Kirsty Chapman N8794626, Sio wa Ng N9428763, Zixin Wang N9274481Tutor: Sandy SergeantTute Time: Wednesday 9.30amWord Count: 00Assignment InformationStudent Names and Numbers: Anastacia Clarke N9112561, Kaysee-Jane Felgate Faulkner N8592373, Kirsty Chapman N8794626, Sio wa Ng N9428763, Zixin Wang N9274481Tutor: Sandy SergeantTute Time: Wednesday 9.30amWord Count: 685800283845Table of Contents TOC \o "1-3" \h \z \u 1.0 Executive Summary PAGEREF _Toc303071037 \h 32.0 Situation Analysis PAGEREF _Toc303071038 \h 42.1 The Market 43 PAGEREF _Toc303071039 \h 42.1.1 Market Need 61 PAGEREF _Toc303071040 \h 42.1.2 Macro-environment PAGEREF _Toc303071041 \h 42.2 The Company PAGEREF _Toc303071042 \h 62.2.1 Mission statement 30 PAGEREF _Toc303071043 \h 62.2.2 Marketing Team 20 PAGEREF _Toc303071044 \h 62.2.3 SWOT Analysis PAGEREF _Toc303071045 \h 62.3 The Competition 126 PAGEREF _Toc303071046 \h 73.0.Market Segmentation And, Targeting PAGEREF _Toc303071047 \h 103.1 Segmentation PAGEREF _Toc303071048 \h 103.2 Target market 130 PAGEREF _Toc303071049 \h 104.0 Market size, demand and potential 28 PAGEREF _Toc303071050 \h 114.1 Estimated market demand PAGEREF _Toc303071051 \h 115.0 Marketing Objectives and Metrics 17 PAGEREF _Toc303071052 \h 126.0 Marketing Mix PAGEREF _Toc303071053 \h 136.1 Product strategies 87 PAGEREF _Toc303071054 \h 136.1.3 Packaging: 40 PAGEREF _Toc303071055 \h 146.1.4 Labeling. 42 PAGEREF _Toc303071056 \h 146.2 Pricing strategies PAGEREF _Toc303071057 \h 156.2.1 Pricing factors and sensitivity 184 PAGEREF _Toc303071058 \h 156.2.2Pricing strategy 80 PAGEREF _Toc303071059 \h 156.2.3 Cold Brew Prices 80 PAGEREF _Toc303071060 \h 156.2.4 Break-even PAGEREF _Toc303071061 \h 166.3 Placement strategies 109 PAGEREF _Toc303071062 \h 176.4 Promotional strategies PAGEREF _Toc303071063 \h 186.4.1 Social Media Presence 86 PAGEREF _Toc303071064 \h 186.4.2 Facebook &Instagram Applications 78 PAGEREF _Toc303071065 \h 206.4.3 Snap Chat 71 PAGEREF _Toc303071066 \h 206.4.4 Market Day Promotion Strategies 20 PAGEREF _Toc303071067 \h 207.0 Budget PAGEREF _Toc303071068 \h 218.0 Implementation Plan PAGEREF _Toc303071069 \h 22APPENDIX C: MARKET VISIT PAGEREF _Toc303071070 \h 271.0 Executive SummaryCold Brew is bringing a whole new dimension to coffee culture in Brisbane. We will be selling premium cold brewed coffee that illuminates the shortcomings of traditional iced coffee. Steeped over a long period of time, this smooth, strong and flavoursome beverage delivers. With beans sourced from Sponsors and local Brisbane roasters, Merlo, only the freshest quality can be expected from this product. The strategy for developing and launching this product is comprised of four essential components, product attributes, branding and position, packaging and labelling. Using a segmentations analysis, the firm has identified the major market segments, including Big Chance, trending and small chance. In accordance with the expected numbers of people in each group, the target market for our product is the young optimist, which is about 148 out of 267. Aware of this young dominating demographic, prices for market day are set at a base rate of Q$40. This will ensure a profit of 23.42 per unit sold. To optimise success, competitor’s prices were also taken into consideration, however, were not the key deciding factor. This is because Cold Brew has the competitive advantage of first movers effect in the market place. Implementing the blue ocean strategy, we are launching a product in uncontested market space, essentially making competitors prices, positioning and products irrelevant. Additionally, price bundling was incorporated to gain market share while still maintaining premium positioning. Despite having no direct competitors, Cold Brew researched each environmental level (Macro - Pestel, Indsutry –Benchmarking and Organisational – SWOT) to develop a strong marketing plan. In relation to the organisation environment a situation analysis was undertaken in order to identify current macro environmental trends and issues. The PEST analysis revealed that the young optimism market have busy lives and require ample energy for daily activates. It was assumed Cold Brew would be positively received within this demographic. The strength, weakness, opportunities and threats to Cold Brew were then developed surrounding this knowledge.Located in stall 49 (central to various entry and exits) on the day promotions stemmed from attracting large sums of foot traffic. Strong caffeine aromas, heavily branded barricades and Merlo branded umbrellas will appeal to consumer’s sensor and will influence purchasing decisions. Even though the Merlo brand is familiar and will attract attention on the day, Cold Brew is aware those wont help the sale of individual products unless the consumers are previous made aware. Therefore, Cold Brew has engaged innovative promotional tactics through social media avenues, Facebook, Instagram and Snapchat to generate brand an product awareness prior to the day. We are confident that each element of the marketing mix is strategically satisfied and Cold Brew will be a success and well received product. 2.0 Situation Analysis Cold Brew undertook a situation analysis to select the best target market. This includes an analysis of the different macro-economic trends and issues to identify current consumer trends and behaviours. 2.1 The Market 43Cold Brew is available on Market Day, September 25th and October 10th in Brisbane CBD. The market days are within QUTopia with a population of 276 citizens (161 female and 105 males). The mean QUTopianage is 21 and mean income is $262.12.2.1.1 Market Need 61Cafes at QUT will not be operating on the two market days; therefore QUTopians will be channelled toward our caffeine product. A large portion of QUTopians(148) identified themselves as ‘Young Optimism” against Ray Morgans Segment indicating they are “busy planning careers, attending university …and need the energy to do it.” (Levine, 1997). Therefore, there is a need for Cold Brew’s product.2.1.2 Macro-environmentA PEST analysis analysing current macro-economic trends / issues occurred. EnvironmentTrends/issuesImplications for our productPolitical/LegalHealth and Safety: Cold Brew will Abide by all regulations of the Food Act 2006 and Food Regulations 2006.QUTopia Laws and RulesCold Brew will take extreme measures to ensure the beverages our company sells are “safe and suitable for human consumption, and to prevent misleading conduct in relation to the sale of food.”[1] Food Act 2006.Cold Brew is adamant in following all rules and regulations set out by QUTopia. All managers have closely read through all QUTopia documents and have a clear understanding. Ensuring no rules are broken means no fines will be applied, therefore more moneyEconomicLow economyCompetitive pricing in the coffee marketCitizens have less disposable income than outside of QUTopia. Therefore, prices for our products must be slightly lower.Coffee is a huge business with nearly half the population of Australia (46%) drinking coffee according to the Australian Health Survey. [2]therefore; the coffee industry is incredibly competitive. Therefore, Cold Brew’s Pricing Manager has carefully analysed the market and figured the best price possible.Socio-culturalHealthy EatingCoffee Tastes and PreferencesHealth is incredibly important to many Australians. The use of Soy Milk/Almond Milk and low Fat Milk is becoming more and more popular. Health conscious people will not go near full-cream milk anymore. Implications may arise Cold Brew is not offering any of those options.Australians tend to prefer coffee with a more bitter taste and organic rather than sweet and sugary. Australia may lag behind in “coffee consumption per capita (the average Aussie manages just 0.3 cups a day, compared to the Netherlands’ 2.4) but it comes out top in all-round coffee snobbery.”[3] Starbucks failed in Australia because the Australians prefer a “good coffee” from independent roasters. This is a benefit for Cold Brew as many consumers view Merlo as ‘good coffee.’TechnologyUse of Smart PhonesThere is an increasing need for people to have the best and newest smart phone. This is because people love to stay in touch with social media. There are numerous platforms people like to connect on and Cold Brew is using all the mediums to the full advantage.Table 1: PEST Analysis2.2 The Company2.2.1 Mission statement 30Cold Brew aims to produce premium ice-coffee, freshly made and provided with convenience. This product accentuates quality-tasting coffee and influences positive psyche as it bring another dimension to caffeine.2.2.2 Marketing Team 20The team consists of a Marketing Manager, a Product Manager, a Pricing Manager, a Distribution Manager and a Promotion Manager. 2.2.3 SWOT AnalysisStrengthsWeaknesses·Knowledge: Excellent team members with strong knowledge from various industries including the food industry·Location: High level of foot traffic for our stall·Merlo Sponsor: Merlo is a highly reputable brand. It has been voted Australia favourite coffee brand from 2012-2014.[1] Customers will be drawn to our stall·Environment Friendly: Power is not necessary for the day and everything is recyclable·Quality: Product has gone through extensive testing to ensure the best taste·Price: Prices will be appealing for customers·Accessible Location: Easy and low costs associated with moving product from kitchen to stall·Communication: Marketing Manager has created a low-cost tool to engage with consumers via various online social media channels (Instagram, Facebook, Twiter).·Healthier: Our drink will typically be healthier than other coffee products.·Brand Loyalty: Customers who purchase on the first day market day will be rewarded with a discounted price if they return on the second market day·Traditional idea: Many brands already offer cold-brew drinks·Unhealthy: Many consumers view coffee as unhealthy drink and may be persuaded to choose a juice stall instead. Redbull is also associated as being unhealthy.·Indecisive: People can be indecisive on the day with too many choicesOpportunitiesThreats·Customer Need: Customers are willing to spend money on food and drinks when they are thirsty or hungry·Large Market place: Our product appeals to a huge market of busy students or staff members who wanting to stay awake to complete/mark University work.·Unknown Customer Base (Tourists): Any tourists travelling through on either market days will be drawn to us because we will have a Merlo tent. Merlo is a brand that people feel safe with choosing.·Appealing Product: Coffee is a product people are willing to spend money on·Weather Change: Brisbane’s weather starts to get warm towards the end of September, therefore consumers will be drawn to a cold coffee·Competitive Market: E ntering a market with many competitors·Competition: Competing with numerous other companies in the same industry·Vendi-Machines: vendi-machines on campus that sell Redbull·Weather: Weather has potential to impact high volume numbers as It tends to be much colder If it rains, thus customers will not want a cold drink but rather a hot drinkTable 2: SWOT Analysis2.3 The Competition Cold Brew is a part of the Other Specialled Food Retailing offering freshly brewed cold coffee. There are no direct competitors in QUTopia, however, six indirect competitors selling alternative beverages. Table 3 identifies the top 3 competitors and undertakes a competitor analysis.The competitor analysis demonstrates ‘Squeeze’ is Cold Brew’s strongest competitor as they offer a high-quality juice and have implemented marketing. Their location isn’t ideal, giving Cold Brew an advantage. ‘Coco Cortez’ also acquired ideal location for foot traffic. ‘Frozen’ who are selling tea have undertaken no marketing, with poor location and could go unnoticed. All indirect competitors are positioning themselves as providers of quality products therefore indicting a higher cost associated. Cold Brew will counter this attack by offering premium product with competitive pricing. Competitor 1: Coco CortezCompetitor 2: Frozen SummerCompetitor 3: SqueezeTarget market(s)QUTopians who fall into the ‘young optimism’ category who are busy and will pick the first drink they see to keep moving.QUTopians who prefer something light rather than chocolate, juices, smoothies or coffee to drink. Targeting any segment of people who have diary intolerances.Young QUTopians who fall into ‘young optimism’ or ‘look at me’ Ray Morgan segments for example young student who healthy conscious people who love fruit and staying fitProductChocolate drinks and chocolate goodsFresh Ice Tea DrinksFruit JuicesPriceSelling as a ‘high quality’ product indicates a higher price between $80-$90.Selling as fresh drinks with high quality services indicating a relatively high price between $ 70-85.Squeeze is sponsored, assuming most of their fruit will be free or cheaper, their product will be slightly cheaper between $50-80.PlaceStall 2, QUTopiaStall 46, QUTopiaStall 54, QUTopiaPromotionFacebook pageNo promotions as of yet.Facebook page, Second advertisement on QUTopia Official Facebook page, Instagram accountPotential competitive barriersCoco Cortez is placed in a premium position meaning consumers will be drawn to their first, and potentially buy their product and be not interested.Consumers with dairy intolerances will buy from Frozen Summer rather than us.Sponsored by Charlies Fruit Market – any client base Charlies Fruit has will potentially choose Squeeze,Potential strengths and weaknessesStrengths: Consumers who prefer cold chocolate drinks rather than cold coffee. Consumers who tend to buy on impulse rather than look around will purchase from Coco Cortez as they are in a premium position.Weaknesses: Consumers who do not like chocolate and coffee will not buy from Coco Cortez and consumer looking for more of a pick me up. Coco Cortez has not started advertising yet, therefore we currently have a competitive advantage.Strengths: Consumers who stick away from dairy products and/or coffee. Majority of entry point will lead to consumers seeing Frozen Summer before us.Weaknesses: So far no advertisements strategies are apparent. They will have no client base and will have no brand awareness on the day.Strengths: Attracts a strong market of people with dairy intolerances and wanting to stay healthy. Have started heavily marketing their product. Sponsored by reputable brand.Weaknesses: Position in a bad location with only one side of entryOur likely response(s)Create more attention to our Facebook and Instagram pages.Display Merlo effectively so consumers are drawn to usContinue to heavily market through uploading photos on Facebook and instagram.Continue heavily marketing hopefully reaching more customers than them. Also use our double sided store to the full advantage.Table 3: Competitors3.0.Market Segmentation And, Targeting3.1 SegmentationCold Brew analysed three segments in order to identify the target market.Big ChanceTrendingSmall ChanceGeographic description (all consumers come from QUT, which is based in and around Brisbane.)These people are expected to live in apartments and houses in and around the inner city with many friends.These people are expected to live just outside the inner city in houses with one or two friends.These people are expected to live in apartments in the inner city with many friends.Demographic descriptionYoung single university student.Age from 18-29. Occupied 44% of all students. The average income is 263 QUTopia dollars, which is the highest income in all brackets.Most of them are single student and age from 17-40. Occupied 10% of all the students. The average income for these students is 261 dollars.Young single student. Age from 18-25. Only 5% of all students is in this bracket.Psychographic descriptionYoung OptimismSomething BetterLook At MeBehavioural descriptionYoung Optimism wants to try everything. They are willing to spend a lot of money on new stuff. Usually somebody who has just entered their life and they are wish to impress.This group of people is beginning to mature. While they love the finner things in life, they are also trying to save money. As a consequence they tend to be concerned about what other people are doing.This pattern of people is more often found among teenagers, trying to ‘stand out’, seeking recognition by the family for being ‘grown up’ can occur at any time in a person’s life.Saving is not their concern as they have their whole lives ahead of them.Table 4: Segmentation3.2 Target market 130From the segmentation analysis, the young optimism will be the target market. This consists of approximately 44% of total market. Both male and female are in this bracket (aged: 19 to 29) and indicate to be young, energetic and enjoy new products. It can be seen that this market has a large size of people, influencing profitability. Without direct competition our business obtained a monopolistic position. Moreover, our product can be accessible through persuasive communication and product distribution.According to Martin (2001), businesses can develop some special strategies if they’ve identified needs and wants of customers. As café shops on campus will be closed at market day, our product can expect a large size of market share. Its expected most of customers will react similar and positive to our product.4.0 Market size, demand and potential 28The total market will consist of all the customers in that market day including, tutors, tourists, students etc. It’s expected over 267 people with tourists numbers not confirmed. 4.1 Estimated market demandKey FactorsFiguresMarket Potential267Target Market Size:148Usage/Purchase frequency:Consumers are likely to purchase 2 products during the two market days.Estimated market share30%Sales forecast-(b) x (c) x (d)148 x 2 x .30 = 88.85.0 Marketing Objectives and Metrics 17Four marketing objectives are analysed through the SMART objectives procedure. This will help Cold Brew maximise potential.SMART ObjectivesMetricHow the data will be collectedMetrics: How it will be measured1) Build initial hype within QUTOPIA Market with Social Media Presence. Upload at least 17 of the 20 expected posts.Exposure to MarketCold Brew Social Media pages on the 16th of September (1.5 Weeks Prior to Market Day 1) will be commence Daily Posts up until Market day 1. On the 30th of September (1.5 Weeks prior to Market day 2) Cold Brew will once again commence daily posts up until Market day 2 – Results will collected after Market Day 2.-To ensure hype is created during 10 days prior to each Market Day. During these 20 days, cold brew will be required to post/upload from either Facebook or Instagrm daily.2) Achieve the break even point after Market day 1Break Even PointCold Brew should break even by the end of business of Market day 1 (26th of September)The total cost of revenue and expenses will be considered – If revenue exceeds expenses, Cold brew will have successful broken even on Market Day 1.Selling at $40 (base price), 48 units need to be sold to cover the $1900 fixed costs ($1300 wages, $350 stall rent, and $250 email communication for promotion)3) Achieve 10% ProfitabilityNet Profit MarginCold brew should achieve at least 10% profitability after Market day 2Net Profit = Net income/revenue4) Achieve 20% LoyaltyCustomer LoyaltyCold Brew Crew cards will be handed out with each Cold Brew Purchase. These cards will allow loyal consumers to have a 10% Discount on Market day 2 if they return with the said card.- # of Cold Brew Coffee sold = # of Loyalty Cards Handed out.- # of Cold brew Loyalty Cards handed out divided by the Cards Redeemed on MD2 for the 10% Discount- E.g. 10 Handed out/ 20 Redeemed on MD2 = 50% LoyaltyTable 5.0 SMART Objectives6.0 Marketing Mix6.1 Product strategies 87Cold Brews product strategy focuses on creation of value for the consumer. The core product is a caffeinated beverage for energy stimulation; however, Cold Brew exceeds this basic service function (Grewal, Levy, Mathews, Harrigan&Bucic 2015, p. 240). Major issue associated with Iced Coffee have been identified and resolved, including bitter taste, quality consistency and watery caffeine. The product strategy is comprised of four components, product attributes, branding and positioning, packaging and labelling. Note, a licence for this stall is not required for grinding coffee beans refer to Appendix A.6.1.1 Product attributes: Our product meets core consumer demands with various superior product levels. Cold Brew’s steeps cold ground coffee over time, which infuses the water with caffeine. The coffee has been sourced from Brisbane’s local roaster, Merlo to ensure the freshest quality beans. Standard ratio measurements ensure consistency in taste, flavour and strength. A sweeter option available (caramel flavouring.) As a firm we have given a convenience product a specialty edge. Table 6 reveals the supplies and source:Ingredient/SuppliesSources/Suppliers3 Bean Arab Coffee Blend, Merlo Umbrella, Syrup FlavouringDonated by Merlo CoffeeFull Cream, Skinny, Lactose Free, Soy MilkPurchased from WoolworthsCups/StrawsPurchased from CampbellsTable 6.0: Ingredients and SuppliesMilk options ensure superior service and cater to individual needs. In addition to receiving premium Cold Brew, consumers will also receive a 20% VIP card from our Sponsors Charlotte Café.49149005016500 6.1.2 Branding and Positioning. 74Merlo’s brand provides leverage to get Cold Brew recognised on the market day. Our Branding strategy is to use the Merlo in cooperation of our new product Cold Brew. However even if the overall brand name is familiar it wont help the sale of individual products unless the consumers are aware of products available (Grewel et. Al. 2015). Our brand logo positions our target market to directly associate us with strong, superior, flavoursome beverages. The various product levels in Diagram 2 communicate our overall value proposition and differentiate the product from competitors. (Diagram 2286001028700001).Diagram 1: Product Levels 93The aggregation of these associations forms the foundation of this brand image (Grewal et al. 2015. p. 250) Evoking brand loyalty, VIP treatment and prize opportunities are offered to returning consumers.Our competitive advantage is innovating standard ice coffee to a premium level. As this adaptation is time-consuming, Cold Brew has secured advantage the ‘First Move’ in the QUTOPIA marketplace. A blue ocean strategy is evident as this is an uncontested market space that makes competitors irrelevant and generates new consumers value. (Crawford, C M. & Di Benedetto, A, C. 2015. p 432) 6.1.3 Packaging: 40Packaged plastic take away cup, with lid and straw. Strategically, heavily branded the T/A cups work as a promotional tool. The logo will be exposed throughout the marketplace and other stalls. Labels around cup with provide loyalty and VIP cards. 6.1.4 Labeling. 42Cold Brew Label is a sticker on the T/A cups. Consumers will also receive a charlotte café card with a map of the cafes location. This will give the 20% off purchases. Ingredients will be feature on the bottom of the cup.6.2 Pricing strategies6.2.1 Pricing factors and sensitivity 184As discussed in Section 2.3, Cold Brew has no direct competitors. However, indirect competition arises from three other businesses. In order to counter this, competitor-oriented pricing will be employed. Although is unknown what Cold Brew’s competitors will set their prices, an approximation can be gauged from released positioning statements.Each of the major indirect competitors (SQUEEZE, Coco Cortez, and Frozen Summer) has indicated high quality within their positioning. Their prices will therefore reflect this and it can be assumed more costly. Cold Brews position as a more premium product within the competitive market may pose a problem. However, Cold Brew’s first mover, blue ocean strategy will aid in strong market share.In pricing the product, budget and expenditure have great influence. Expected target market share and sales forecasting allowed the breakeven point to be calculated and price adjusted accordingly. This is detailed in Section 6.2.4.Previous research into food and drink consumption within the QUTopia marketplace has shown that it is purchased to satisfy the need. Due to this type of demand, Cold Brew’s product is elastic good, meaning consumers respond to the price. 6.2.2Pricing strategy 80Due to competition, either a competitive parity or status quo pricing strategy was deemed suitable. To maintain premium status competitive parity is appropriate. Competitive parity is the strategic decision of setting product prices similar to those of competitors (Grewal et al., 2015). This differs from status quo pricing, as price is not adjusted according to every fluctuation in competitor's price (Grewal et al., 2015). The use of competitive parity will maintain the positioning and perceived value of Cold Brew’s product. 6.2.3 Cold Brew Prices 80To set price, optional additions to the product must be taken into consideration. Price bundling will be utilized to “encourage customers to stock up so they won’t purchase competing brands” (Grewal et al., 2015).??Market Day prices are presented in Table 7.BaseWith MilkWith SyrupWith Milk and SyrupPricing Bundling (2 units, any combination)Price$40$45$45$50$80Table 7: Pricing of ProductsEvidently, a discount for buying the products with both milk and syrup added only included within the bundle. This is to maintain premium status. The average product price is $45, with sales forecast to reach 89 units, a profit of $23.42 per unit is expected.?6.2.4 Break-even068389500Diagram 2 reveals Cold Brew needs to sell 42 units over both Market Days in order to break even. Saleds projections of 89 units sold indicate that Cold Brew will break even.Diagram 2: Break Even (Source: )6.3 Placement strategies 109456565147383500Distribution is essential to drive products to the customer as the right time (Grewalet. Et. Al. 2015). There is potential that indirect beverage competition could intercept traffic. Cold Brew’s location (stall 49) is ideal at the centre of most access points (Diagram 3: QUTopia Map). However, there are many indirect competitors surrounding. As perceived at an alternative market place, consumers were drawn to food and drink stalls based on “aroma and attractive pictures” (Appendix 2). Diagram 3: Qutopia MapConsequently coffee aroma and heavy branding will be implemented. As a multi-access location the augmented product layer, to supply strong customer service is implemented. Table 8 reveal Cold Brews distribution features.Table 8: Distribution Feature.FEATURESCOMMENTSBaseLocationCold Brew is Located at Stall 49 within the market place. With 5 access points in close proximity.$40LightingSmall torches hanging from the Umbrella will attract attention and provide appropriate lighting for Managers to monitor quality control over their ratios of coffee to milk.Potential neighboursJust 5moothies is located at stall 51 and is considered an indirect competitor of Cold Brew as both organisations are selling beverages. However, as their site is unpowered we aren’t concerned about disruption with blender noises. Additionally, we have compensated for close proximity competitors (46, 51 and 54) with additional and different signage.Traffic FlowTraffic flow will be extensive in this area as the stalls can be access from both sides. This means that mangers will need to be serving both front and back customers. Additionally, there are large access points to the building located four stalls away.Floor coveringsThe floor is covered with carpet so the acoustics of the marketplace will be more thoroughly absorbed.Access to a wallCold Brew has no access to a wall so signage has had to be all stand-alone.PostsThere a no post located near Cold Brews Stall.SoundAs the building is large sound will echo throughout. The carpeted floor should help with acoustics but the Merlo umbrella will also shelter the store when directly communicating with Customers.ImpedimentsThe 1.5m2 size of the stall is going to be the biggest impediment. We will have to develop appropriate storage for ice, coolers, cups, lids, milk and coffee.Table 6.0: Direct Marketing Channel 6.4 Promotional strategies6.4.1 Social Media Presence 86Social media will be the primary platform for communication with target consumers. Not having a social-media presence in today’s market isn’t optional if you want to appear professional and compete in your industry (Folger, 2015). Facebook, Instagrm and Snapchat are recognized as the trending channels of Social Media CITATION Mor151 \l 1033 (Moreau, 2015) and are employed to promote the product Early-presence can assist the; awareness, interest and desire sections of the AIDA-Model. By achieving those, Cold Brew can encourage the action-stage CITATION Gre15 \l 1033 (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015).Key MessageCommunications Mix ElementPromotional TacticsCold Brew is CompetitiveAdvertising and Social MediaWe will be increasing our social media activity to a daily presence 10 days prior to MD1 and MD2. This will allow the us to gain awareness and the consumers can build more interest and desire (AIDA Model)Cold Brew is Up Market (High Quality)Advertising, Social Media and Direct SalesSince Cold Brew coffee is considered to be a speciality coffee, we are able to market our product as an “Up Market” Product. The Up-Market position will be expressed through our advertising and social media Channels, this will be done with images/fliers that imply a premium feel to the brand. The Up-Market message will also be backed up by the expressing how our suppliers are prestigious and that is what also makes our brand prestigious. This is because we will be sourcing our coffee beans from Merlo Coffee – Consumers will understand that we offer a prestigious and high quality coffee through being told when they approach the store.Cold Brew Crew – Forming a foundation for cult brand. (ie, The Cold Brew Crew, will get you through)Interactive, Direct Sales, Social Media and AdvertisementA cult brand is where their main customer base is known to be highly involved, energetic and loyal – Or in other words, fanatics or true believers in the brand itself, these consumers tend to feel as that they contributed to the brands succession or popularity (Investopedia, 2015). Examples of this can be RedBull or Starbucks, which is mores suitable comparison for our industry. We wish to create a cult brand feel for our consumers and they will be known as the ‘Cold Brew Crew’. This ‘Cold Brew Crew’ foundation will be expressed through all of our channels of promotion and more notably our direct sales. We will be handing out “Cold Brew Crew” cards to encourage Loyalty as stated in section 1.0 of the Marketing Metrics and Objectives. If we are successful in creating a cult brand, the high levels of loyalty and word of mouth will encourage profits largely and the performance of our MD2.Table 7.0: Communication Mix Table6.4.2 Facebook &Instagram Applications 78Stated in section 1.0 of the Marketing Metrics, Social-Media will be used to reach out to our consumers 10 days prior to each MD. The aim is to build publicity, excitement and awareness towards our product/brand. Advertising will encourage consumers entering the buying-cycle, which is important for early stages of the product life cycle CITATION Gre15 \l 1033 (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015). This type of promotion will be done through uploads i.e.,‘Tips for Latte-Art’ and ‘ Coffee Fact-of-the-Day’.6.4.3 Snap Chat 71Snapchat is a photo/video messaging app to post video “stories” that are shared amongst users CITATION Bet15 \l 1033 (Betters, 2015). To encourage active social media presence (Folger, 2015) Snapchat will be used to film the process of producing Cold Press Coffee. This Channel of presence can encourage the interest desire areas of the AIDA model CITATION Gre15 \l 1033 (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015) since it will entice the customers prior to MD1 and MD26.4.4 Market Day Promotion Strategies 20Market Day promotion strategy is evident in table 8: Strategy and description.Strategy DescriptionSocial media Facebook, Instagrm and Snapchat Links will be presented on a signBrand Loyalty – Strategic PartnershipWith each purchase, the consumer will be given a Charlotte Café 20% off card as well as a “Cold Brew Crew” Card on MD1.The “Cold Brew Crew” Card will have two main purposes, to encourage loyalty and consumer participation in promotionsEncourage Involvement and Arouse Excitement.CBC Cards will also include instructions on how to win the DIY Cold Brew Kit – Instructions: Upload a photo of you and your coldbrew on MD1, caption the image #coldbrewontherun and follow the Cold Brew Instagrm page to be in the chance to win. The winner will be announced prior to the commencement of MD2.Repeat PurchasesCBC Cards will be handed out with each purchase. These cards will explain that, if they are presented during MD2, they will receive a 10% discount on their MD2 Cold Brew.Table 8: Strategy and Description7.0 Budget Cold Brew BudgetStart Up Capital ($Q)4000Capital Retained ($Q)2100Projected Unit Sales89 Min Unit Price ($Q)40Max Unit Price ($Q)50Average Unit Price ($Q)45Cold Brew Anticipated Profit and Loss Statement($AUD) Real Currency($Q) QUTopian CurrencyTotalTotal Sales$4005Cost of ProductionMaterials $35Wages$1300Total Cost:$1335Gross Profit:$2670Expenses:Stall Purchase$350Email Promotion$250Total Expenses:$350Net Profit:$2070Anticipated Profitability of Organisation51.68%8.0 Implementation Plan8.1 Pre-Market DayActionTeam member responsibleDeadlineCommence daily posts/uploads of Snapchat, Facebook and Instagram 10 days prior to MD1All Members(Begin on the 16th of September and Ends on the 26th)Upload the Process of how we got the Cold Brew (Snapchat)- Kirsty Chapman26th of September8.2 At Market Day 1ActionTeam member responsibleDeadlineReceive some feedback from Customers (Do we need to change the Cold Brew recipe for better taste?) – Enquire through at least 5 customers. Ensure a script is prepared before the deadline.- Bernie (SioWa) Ng27th of SeptemberProvide Samples - As we wish to create as much awareness as possible, we will aim to have one member give out some free samples.- Any Member26th of September8.3 Post-Market day 1/Pre-Market Day 2ActionTeam member responsibleDeadlineHave we broken even? – By viewing our sales numbers, have we sold more than 48 units?-KayseeFelgate28th of SeptemberIf we have not sold enough units to break even – Implement additional promotions to increase sales for MD2-Bernie Ng9th of OctoberEncourage Loyalty – Ensure posts are placed on Snapchat, Facebook and Instagrm reminding our followers to bring their ‘Cold Brew Crew’ Card they received on MD1 to ensure the discount on MD2- Ana Clarke9th of October8.4 Market Day 2ActionTeam member responsibleDeadlineEncourage Loyalty – Ensure you remind the consumers that they can utilize their ‘cold brew crew’ card from MD1 – this will be included into our script.All Team Members10th Of OctoberAre we making enough sales? Briefly check the # of units sold.- KayseeFelgate1pm 10th of October8.5 Post-Market Day 2ActionTeam member responsibleDeadlineGroup evaluation of MD1 and 2.- All Members.10th of October close of business.Ensure our market area is clean and if not, delegate to clean.- Stephen Wang10th of October close of business.Reference ListABS. (2014, 03 14).Regional Population Growth, Australia, 2012-13. Retrieved from Australian BureauofStatistics: . (2014). Brisbane Demographics. Retrieved from Brisbane, Australias New World City: , E. (2015, Jan 29).What is snapchat and how does it work? . Retrieved September 1, 2015 from Pocket-Lint: , J. 2015. “Implementing A Small Business Social Media Strategy: Retrieved from:, D., Levy, M., Mathews, S., Harrigan , P., &Bucic, T. (2015). Marketing. North Ryde: Mc-Graw-Hill Education (Australia) PTY LTD.Investopedia. (2015, jan 1). Cult Brands. Retrieved sep 1, 2015 from Investopedia: , G. 2011, The importance of marketing segmentation. American Journal of Business Education, 4(6), 15-18. Retrieved from, M. (1997). Young Optimism. Retrieved from Ray Morgan Research: , E. (2015, jan 1).Top 15 Social Networking Sites You Should Be Using. Retrieved sep 1, 2015 from webtrends: A: Product and Stall Checklist (all businesses to complete)To ensure that your product and stall complies with Australian health and safety laws and the rules of QUT and QUTopia, please complete and sign the following checklist, Please note that these rules are monitored at marketday and any breach could result in your business being shut down on the spot. If your business requires a food license (as indicated in the product section of the plan, this will be provided by your tutor prior to marketday conditional on meeting all requirements).ItemDetailYour ResponseIs a food license required? your product have all ingredients listed on a label attached to the product?List the items to be shown on your label: Coffee, Water, Caramel Flavouring, Milk, Soy, Lactose FreeWhat are the dimensions of your stall? Must NOT exceed 1.5m x 1.5m in width and depthHeight: NoneWidth: 5.5 StepsDepth: NoneWill you be using electricity in your stall? If so please state the equipment you will be using: No Are there any stall features that require safety or mess precautions? Examples are:Boiling water/kettlesEsky’s (water condensation on floor)SpillagesPower cords that require taping down or hiding behind stallList the precautions you are taking: We will constantly have paper towels available to clean up any spillage. A serviette will also be given to our customer in case they spill any once they have left the stall. Every five minutes we will check for any spillages. APPENDIX 2 Product Health and Safety License Application (only businesses selling food, beverages or items that touch the skin to complete)ItemYour AnswerFor QUTopia, any product that touches the body or is ingested requires a product label listing ingredients. Does your product labelling comply with Queensland food labelling requirements? . “Coffee, Water, Caramel Flavouring, Milk, Soy, Lactose Free (type to be highlighted).Food items only:Does your product comply with food handling procedures including gloves if touching unpackaged foods such as fruit for smoothies, hot dogs or cakes/biscuits?Yes. Gloves will be used when making the products. All itemsHow are you transporting the food, beverage or item touching the skin to marketday?Is refrigeration or heating required for storage during transport or at marketday? If so please state the details.All beverages are to be transported in coolers with ice on the day.We will have paper towel for any spillages.-47625169545OFFICE USE ONLYLicense approved: ______________________________Tutor signature and date0OFFICE USE ONLYLicense approved: ______________________________Tutor signature and dateAPPENDIX 2: MARKET VISITLocation of market: Kelvin Grove villageTime, day and date visited: From 9:30 to 10:30 21 August, 2015Team members present: ZIXIN WANG (Stephen)Observations - Busy StallsWhat products were being sold?Who were the customers? (describe)How did they attract people’s attention?How do they handle queues?What consumer ‘need’ are they satisfying?·Observations - Busy Stalls:What products were being sold?Foods, vegetables, fruits or snacksWho were the customers?Everyone can be the customers for foods or snacks driven by hungry especially in the lunch hours. In this time, more people prefer having food to consuming other goods. The customers for vegetables and fruit are mainly housewife, young couples or some residents living around here.How did they attract people’s attention?Foods and snacks stall mainly use delicious odour and attractive pictures to get people’s attention.Vegetable and fruit stalls are on the other way. They mainly used a big sales sign to attract customers like 2 pineapples for 4 dollars. Also they set many row and column in their stall. So, the customers will spend more time in the stall.How do they handle queues?Some foods stalls may spend some certain time for cooking. So, the staff will give customers a number ticket so that customers could walk away for a few minutes and then come back for picking up.Vegetable and fruit stalls just try their best to charge to avoid the lone line.What consumer ‘need’ are they satisfying?Most of consumers are happy with the goods here especially in the relax weekend.Observations – Non-busy Stalls-What are their products?-How do staff respond when people walk past? (ignore them, make eye-contact)-Why do you think their stall is not busy?-What could they do to improve sales?What are their products?ClothesHow do staff respond when people walk past?They make eye-contact with every customers on the street even though few people come in to have a look.Why do you think their stall is not busy?The stallholder just sits there and reads books. People may don’t have enough time for selecting clothes in this busy market (people might need time to try on clothes). Some clothes are used clothes. Customers can purchase a new one with an inexpensive price.What could they do to improve salesChoosing a better location in the market and providing the changing place for people. Or they can provide a really cheap price which is below the price in store. ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download