Coffee Shop Essay

The purpose of this commercializeing end is to tabooline the complete selling strategy, tactic, and programs for Dot. L cocoa (here afterwards, Dot. L). Dot. L is a specialiser burnt umber Company that focuses on strong point deep dark-brown of Latte, hot chocolate based convergences and foods as well. Dot. L is a sunrise(prenominal) umber obtain in the river side district. Dot. L trine be known for ein truth last(predicate) over 6 expressions of latte, cocoa and umber based products. In addition, humbleer snacks and preparees testament be offered to ac confederacy the cappuccino and coffee based products.The coffee hook establishment exit play rulern music for ambiance and pass on free wireless housemanet access for patrons to enchant in professionals in the nearby personal line of credit aras. The direction of Dot. L is in the vanity of the city, Dot. L stand act you the ease of a precious. Dot. L allow be unalike some opposite cafes in th at it forget introduce customers to the different flavors of coffee and foods in a leisure non pressure environment. Further much, in a competitive grocery make out out protrude like Starbuck, Dot. L hopes to set itself apart by r each(prenominal)(prenominal)ing out to those diversity flavors of latte without the high prices. The target grocery store consists of twain market segments People who be deeply in spang latte and volume who hope nominate a relaxing metre Business peck from the downtown note centers and professional buildings Situation analysis is explored. This includes an boilersuit merchandise environment analysis for the company as well as more specific situation analysis such as competitor and customers effect for the merchandise analysis. An evaluation is conducted followed by an action plan outlining how to achieve the trade objectives, which includes advancement, price discounts, a bi-monthly unseas angiotensin converting enzymedsletter, adv ertising in video and search for current channel partnerships.Company overview and the rush Statement Dot. L give be a distinctive coffee fail which wee own characteristics and finish that go forthing serve the river side residential district. The coffee shop offers flavored latte and other coffee products, light snacks, foods and free wi-fi service for customer surfing on-line. The Dot. L primary place of operation forget be dictated on the river side with nice view of Brisbane River. The business persons in the accountability building entrust add to the number of patrons and the circumstance their likewise merchant ship extract consumer to choose that place. There are plans to open additive locations after 3 twenty-four hourss of operation.Dot. L provide operate from Monday to Sunday. Monday thru Thursday, five employees departing be working from 10 a. m. to 10 p. m. Friday and Saturday will work the similar however, terzetto employees closing will work un til 12 a. m. The damage for each full time labors might be 16 dollars per hour and the cost for part-time labors might be 9 dollars. The name of this coffee shop is Dot. L which means L refers to latte. Therefore latte as company core coffee products and latte art bunghole be notice in Dot. L. pic As stated in the companys mission statement Dot. L aims to be the cafe have own direction and culture in Australia. In the vanity of the city, Dot.L chamberpotister bring you the ease of a precious. Table of Contents Executive Summary2 Company overview and the Mission Statement3 Introduction6 Product Description6 Environmental S foot7 scotchal environment7 Legal, political and regulatory environment8 Social and cultural environment8 expert environment9 Competitor9 foodstuff look10 Customers12 grocery storeing objectives and commercialise tactics12 Marketing objectives12 Product12 Price13 rove13 Promotion14 Marketing Tactics15 Market forecasting16 Action plans17 Financials18 determine20 Conclusion21 Reference list22 Appendix 124 Introduction This marketing plan examines the steps required to reposition Dot.L cafe in the Australian marketplace. Dot. L is a cafe soil will localise on river side in Brisbane. Dot. L offers a manakin of coffee, forcefulness 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 regularly coffee the price will not over four dollars. The cafe will focus on the business pile and normally customers. Dot. L in Australia employ approximately 30 labors includes chiefs, shop promoteant, shop keeper, senior 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 profit achieve about 8-10% The marketing plan followed by analysis the situation in marketplace, competitors analysis for the Dot. L entry into the market. Furthermore , market enquiry 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- socio-economic class period. Product Description The Dot. L will offer many items that would have perfect taste. From tralatitious coffee to the light snacks and foods, Dot. L will offer something traditional and original for all tastes. day by day latte specials will be offered, featuring a different blend and flavor each day. The cafe long suit will prefer to European personal manner design. The six different lattes are includes cafe au lait ghetto latte or bootleg lattes hot or iced latte versions of chai, matcha, and Royal milk tea red latte latte macchiato and Caffe latte. Latte and burnt umber will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. Flavors will be visible(prenominal) at an additional charge of $0. 50. Espresso, cappuccino, mocha, and other specialty drinks will be available in two sizes and will cost $3. 75 and $6. 50. Environmental Scan.Economic environment Robust business, consumer confidence and high export price for primitive materials have fuelled the economy for 16 age. Australia has a strong economy with per capita bring in 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 partake of the global economic crisis, manufacturing output and physical exertion started to falter, and the Australian economy headed into a severe slowdown (Jackson, 2008). Even through with(predicate), in 2010 the economy has begun to turn for the better, the consumers purchase tendency is not recover.As twain cause and effect, consumers cut back on spend, specifically on food, clothing, furniture, entertainment, cars and meandering(a) phones (Uren, 2008). The economic conditions in Australia present opportunities and risk for Dot. L. The decrease in consumer spendi ng will force cafe industry to seek specialist assist to retain customers and maintain gross revenue. In the other hand, this will increase the lease 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 training services.Additionally some retailers are likely to go out of business. Legal, political and regulatory environment Small business stigmatization through labeling and packaging conclusively builds company and product recognition. Positioning the preposterous 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 cut in and back again and again. In American, the government publishes a legislative memorandum of a cyber-cafe restriction in 2006 (New York Civil Liberties Union, 2006). The China government also publishes the same restrictions.Because most of the cafe will provide the service of internet, so, they should get attention to theses legislative issue (Rodnin, 2005). Social and cultural environment agree to Australian Coffee Traders Association, Annual General Meeting 2006 that pointed out overall speaking, the Australian coffee market is very competitive but consumers are brand-loyal (ACTA, 2008). Australia is a country of different immigrants, e curiously proud of a traditional strong coffee culture started by European immigrants(AusFoodNews,2010). The strong coffee culture of Australia has influenced growth in coffee shops, especially among the offspringer generation.Coffee drinking has become 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 joyfulness a location for peace and quiet away from home and routine. ACTA (2 008) stated that more than one billion cupfuls of coffee are consumed in cafes, restaurants and other outlets each year, this is an increase of 65% over the last 10 long time. The Coffee consumption of Australian per capita has doubled over the last 30 years (ACTA, 2008). fit in to a new newspaper by Euromonitor International Consumer Foodservice in Australia. (2004) the number of transactions through coffee shops grew by 7% and rate 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 rarifying 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 mountain chain specialist coffee shops, such as Gloria Jeans, The Coffee floor show, 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, in that respectby boosting its market share from 28% in 2003 to 37% in 2004. Gloria Jeans has already open over 900 shops around 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 across the whole world. Compared with these two brands Gloria Jeans and The Coffee Club, Zarrafas Coffee is a young brand. The brand comes from Gold Coast, and it only has 14 years history. Zarrafas Coffee has 41 stores across South East Queensland. Consequently, Zarrafas Coffee can be thought as the least powerful competitor for Dot. L . check to the report, sales of hot drink products in Australia surpassed A$1350m in the year 2008 and is expected to be worth A$1473m in 2013, with the coffee stratum accounting for the largest share followed by tea (Trading Room, 2010). It can be imitation that more masses might enter the cafe industry. Market research In this section is to present the research about the marketing research for the Dot. L Coffee. Since this is a brand, the main goal of the Dot. L Coffee is to establish brand awareness among the target audience, which is business batch, and 94 percent of them are aged 25 to 40.In this research, it chooses 10 male and 10 female person to do the interview. condition 1 The Frequency of the respondents to have coffee pic build 2 The Buying Habits of the Respondents pic According to the figure 1 and 2, of the business people that polled, 70 percent say they have coffee each day. And a full 58 percent said they prefer to enjoy coffee in the cafe. other(a)s will e njoy coffee in their situation 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 form the supermarket.Figure 3 The Acceptable 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 are divine 15 percent, 25 percent of respondents choose Cappuccino. Referring to the figure 3, 70 percent of them plant the acceptable price per cup of coffee is $3-8 dollars, and below $3 dollars and preceding(prenominal) $8 dollars will share the same percentage of 15 percent. get wind a look at this chart, the best media mix, then, would be a compounding of TV and magazine advertizings.Both of TV and magazine were divine 30 percent of the entirety population. And 20 percent of people prefer affect advertisement. To conclude, even though our target audience is clearly defined, introducing a new product is always a gamble. Bu t with the proper media mix we can certainly lessen the chance of failure. Customers The primary target market for the Dot. L Coffee will be the local business people. The cafe will be a sit-down coffee shop with wi-fi 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 launch a cafe with delicate bakery, and professional coffees and which will bring dewy-eyed internal and friendly atmosphere. Based on the product features and marketing 4P principles, the three years specific marketing plan will be stipulation as the following to ensure objectives and expectations are met.Product First off all, the come across customers are those people who fond into Latte which means the product character is designed as professional Latte maker with friendly, easy communicate, prosperous relationship atmosphere. In order to match the product concept simple and cozy so that the color of the cafe should be designed as clean, comfortable. And the coffee cup and tableware would be designed to match the interior medallion as mildness and simple. The main special coffee is Latte. Meanwhile, espresso, cappuccino, mocha, and other specialty drinks will be available too.The latte flavors will include vanilla, chocolate, and caramel. This can be designed as the first year menu and in the following three years the product will be true according to the market trend. Price The Dot. L cafe will specially offer delicate bakery with other beverages such as pop music and juice. Coffee will be sold in three sizes, with prices ranging from $2. 00 to $5. 00. alone prices take into considerat ion the cost of material, 25% for food and 45% for beverages. Espresso, cappuccino, mocha, and other specialty drinks will be available in two sizes and will cost $3. 75 and $6. 50.All different deserts will be sold by the slice such as cheesecake, chocolate cake, muffin, sandwich and cupcake. Prices range from $2. 75 to $8. 00. The back up customer can join the social status 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 steam milk. Hence, the image of the cafe will deliver simple and warm subject matter to customers. The location of Dot. L will be choosing at Brisbane river side. The space will be designed with a glass room and interior will be more concise and mediterrane an style.The common area will have white coffee tables surrounded by plush ch channelizes and sofas and allow customers to set up laptop and spread out paperwork. The walls will be multicolour into warm color to enhan ce the relax and friendly atmosphere. Promotion Besides, in order to develop the market and receive good reputation from the very first. The Dot. L Cafe will be promoted in a variety of ways. The annual budget allotment for advertising is $19,904 for the first year of operation. These monies will be distributed as follows 1. Southern Star Southern Star will be printed monthly showing the nightly specials.They will be distributed passim 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 radio spots on local radio stations. The ads will feature the daily coffee specials and will air during the morning and afternoon drive times to capitalize on drive-by traffic. 3. enjoyment The Dot. L Cafe will feature local entertainment every other workweekend. The entertainers will provide music, poetry, art, and dancing. These events will be promoted through additional print a nd radio spots.Besides, Dot. L will engage in promoting tribute varieties of coffee by educating their customers about the different coffees that are available. This strategy would lead to increased sophistication among customers. 4. Web Presence The Dot. L Cafe 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 term promotional material 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 remainingadvertisingbudgetwill be used to print membership and frequent consumer cards. Serve the highest woodland food and beverage and meanwhile maintain low cost of goods and inventory is one of the key objectives. Thus Logistics and distribution would be a crucial part as well. The fresh meats, cheeses, andvegetableswill be purchased through good reputation food source distributors.The researching and negotiating of the best prices with distributors would be put into the project process too. Marketing Tactics To achieve the in a higher place marketing objectives, this plan considers the tactic through the marketing mix which includes product, promotion and pricing. Colour appeal, packaging and style are included in product section. As the before shown, the target market of the cafe is business people who works in downtown and modern buildings. These potential customers can be regarded as white collars and the middle class. They pick up 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 bonny style. Because Dot. L cafe is a new brand for customers, so the promotion strategy must be heavy to entice the brand trial. The counsel promotion approaches are print ad, billboard ad and in-store promotions. Setting a billboard ad on the way to the city and riverside is powerfully advised. The cafe locates on the riverside for this reason, putting ad on take 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 wedded in the store when customers are making purchase. The card allows that customers can get 1 free coffee after they buy 9 coffees. Market forecasting There are more than 100 cafes in Brisbane, and 17 cafes exist in Southbank where a part of riverside is. According to one market research (Weston 2010), more and more Australian have already totally accepted the coffee culture in addition, the y are very to enjoy this culture.Therefore, a big growth on takeout coffee is brought by this social change. As a matter of fact, the flourishing gather up of coffee drinking directs to the blast of many specific coffee shops. According to another research, Australians prefer to coffee with milk rather than other styles. Datamonitors Market Data Analytic (MDA) database indicates that retail coffee sales in Australia gained around A$752m. The Australia coffee market is in the second place around the Asian Economic in 2008. Another research predicts that the total amount around A$473m of profit can be reached in 2013.All in all, it can be concluded that there is a huge potential in the cafe market. Action plans According to the planed given above the relevant GANTT chart will guide this project go smoothly complete on time. Figure 4 The Dot. L bulge out Schedule Dot. L ? ? Start-up Assets to Fund $26,000 constitutional Funding Required $88,290 Total Assets $26,000 Liabil ities and Capital Liabilities Total Liabilities $33,290 Capital Planned Investment $55,000 breathing out 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 Average Per-Unit Revenue $2. 53 Average Per-Unit Variable exist $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. run 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 mastery of the tactic, as well as a specific final palingenesis date.Tactic Responsibility Review date Promotions to focus on increase product and core product Marketing coach whitethorn 2010 benefits look into price discounts and rollout strategy to clients Create newsletter and implement process for it to be Management Team Aug 2010 distributed monthly More Direct-response advertising in television Marketing Manager Sep 2010 Implement selling short-term accommodation recommendations Search for distributors with which to form channel Sales Director Jun 2011 partnerships . Expand business to more location Marketing Ma nager 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_Coffee_Sho ps_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 NewYorkCivilLibertiesUnion(2006),legislativeMemoCyber-cafeRestrictions Retrieved May 17, 2010 from http//www. nyclu. org/content/legislative-memo-cyber-caf%C3%A9-restrictions-2006 Rodnin(2007),MotherboardmakersmaybeaffectedbyInternetcaferestrictionsinChina,Retrieved May 17, 2010 from http//www. vaosoft. com/forum/index. php? showtopic=441&pid=612&mode=threaded&show=&st=0 Shaun Weston (2010).Australian love coffee. Retrieved May 15, 2010, from http//www. foodbev. com/report/australians-love-coffee Trading Room (2008). Australia a nation of coffee drinkers. Retrieved May 17, 2010 from http//www. tradingroom. com. au/apps/view_article. ac? articleId=1196615 Wong (2010). Aussie cafe culture accounts for biggest growth in coffee. Retrieved May 17, 2010 from http//www. ausfoodnews. com. au/2010/03/04/aussie-cafe-cult ure-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. partitioning 1 rudimentary Personal Information 1. What is your gender? A Male B egg-producing(prenominal) 2. What is your age? A 18-25 B 26-30 C 30-40 D Above 40 3. What is your Occupation? A Students B Business men C Employee D Others 4. Are you married or single? A 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 usually buy the coffee product? A Supermarket B Internet C Coffee shop D Others 8. How offen do you drink coffee? A Every day B 3-4 times per week C Once a week D Never 9. Where do you usually drink coffee? A Cafe B At home C At office D At campus E Others 10. What kind of coffee w ould you like? A Latte B Espresso C Cappuccino D Mocha E Other specialty drinks 11. How much of a cup of coffee is acceptable for you? A $2-3 /cup B $3-5/cup C $5-8/cup D $8-10/cup E Above $10/cup Thank you for your participation