Marketing Plan MKTG.4

7/23/2019 Marketing Plan MKTG.4

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TABLE OF CONTENTS

I.Executive Summary.1

II.Vision, Mission, Goal (VMG)..2

III.Business Overview3Segmentation, Target, Positioning..3

III.1 Market trends

III.2 Demographic

III.3 Geographic

III.4 Behavioral

III.5 Psychographic

IV.SWOT Analysis..4

V.Marketing Mix (4PS)

V.1 Product..

V.2 Price..

V.3 Place..

V.4 Promotion..

VI.Marketing Goals and Objectives

VII. Marketing Strategies

VIII. Implementation Activities

IX.Budget and Sales Forecasts

IX.1 Sales Forecasts

IX.2 Expenses

IX.3 Contribution marginIX.4 Break-Even Analysis (Variable and fixed costs)

X.Evaluation of results

X.1 Measurement of

Performance

XI.Control Measures

XI.1 Contingency Plans

I. Executive Summary

South Prince Coffee Shop is determined to become a daily necessity for local

coffee addicts, a place to dream of as you try to escape the daily stresses of life

and just a comfortable place to meet your friends and enjoy the great taste of


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coffee, all in one. With the growing demand for high-quality gourmet coffee and

great service, South Prince will capitalize on its proximity to the College

campus to build a core group of repeat customers. South Prince will offer its

customers the best prepared coffee in the area, as well as Free Wi-Fi

Connection that its patrons can enjoy their visit.

The establishment will operate a 50 square meter coffee bar within a

walking distance from the College campus. The owners have secured this

location through a three-year lease with an option for extending. The company

is expected to grow sales revenue from P947, 755.85 in FY2015 to P1,

911,010.43 in year five. As South Prince will strive to increase a 25% gross

profit margin and reasonable operating expenses.

South Prince Coffee Shop can be an effective place to conquer stresses.

II. Vision


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At South Prince, were all about getting people together and enjoying each

others company. We believe that what we do can weave a fabric of positive

relationships and experiences that stretch from our coffee houses and out into

the world.

Our Vision

Improve the lives of our guests

Support the communities we serve

Promote our common humanity

Mission

We want to be a welcoming, comforting presence in every community we

serve and anywhere else we happen to show up. We know our guests have a

choice and we never want them to feel less than special.

Our Mission

Our Mission is toserve everyone better than anyone else.


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Our Goals:

Accomplishing and maintaining these goals helps enliven the caf and

enhance the wholesome spirit we want to project. These goals are long term,

ongoing and ever evolving as we grow and learn our business, and are in no

particular order:

1.To maintain positive balance in our lives so that the business rounds us

out and reflects our values.

2.To embody the meaning of hospitality through a strong, reliable staff.

3.To offer our community wholesome coffee that are satisfying, great

tasting, and worth every penny.

4.To have our employees and customers feel appreciated, supported and

satisfied, every time they come in.

5.To support local, independent business and the farming community

through buying locally, keeping it simple and in season.

6.To remain connected to our community with our charitable giving.


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7.To have this business comfortably support our employee family in all

ways possible.

III. Segmentation, Target, Position

3.1 Segmentation:

Initially South Prince was based as a Socio-Economic segmentation base

in consumer Markets as it has concentrated on social class particularly the

business class people those who are working at the office and wanted to have a

cup of coffee with a good atmosphere and facilities. South Prince also hadsegmented his market by geographic and demographically by selecting the store

location where they can find the educated and coffee lovers.

South Prince will focus its marketing activities on reaching the College

students and faculty, people working in offices located close to the coffee shop

and on sophisticated teenagers. Our market research shows that these are the

customer groups that are most likely to drink coffee. Since, coffee consumption

is universal across different income categories and mostly depends on the level

of higher education; proximity to the College campus will provide access to thetargeted customer audience.

The chart and table below outline the total market potential (in number of

customers) of gourmet coffee drinkers in Toril, Davao City.


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3.2 Targeting:

South Prince wanted to develop a reputable relationship with the

customers, Most of companies enter in a new market y serving a single

segment, and if this proves successful than they add more segments, initially

South Prince did the same thing targeted the parents with the young childrenand it was hit concept and it has added more segments by including Teenagers

and developed its product range also.

3.3 Positioning:

Here in this case the South Prince has developed a unique market

position for their products because if a product is to be exactly same like the

others on the market than consumers would have no reason to buy it. South

Prince has positioned them in the market as a highly reputed .In this case

South Prince has planned his positioning in such a way that it distinguish

their products from competing brands and give them the greatest strategic

advantage in their target markets. South Prince has a descriptively simple

statement to inspire and nurture the human spirit-"one person, one cup, and

one neighborhood at a time". South Prince positioning strategy was customer


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base so that it can give the best service more than what the customers expect.

South Prince has gained a competitive advantage over customer satisfaction

and employee satisfaction as South Prince had developed its positioning

strategy based on the customer and provided the utmost facility in terms of

layout, furniture to the music, and in terms of employee satisfaction South

Prince make employee as a partners and gave them a personal security with a

freedom to participate in the every decision of the business and make it

successful

IV. SWOT Analysis

The following SWOT Analysis captures the strength and weaknesses within the

company and describes the opportunities and threats facing the South Prince

Coffee Shop


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Company South Prince Coffee

Shop

East Coffee Bar Honey Bear Coffee

Shop

Strength Strong

relationship

with party

vendors.

Establishment

near from

schools and

offices.

Excellent staff

who are highly

trained and

customer

attentive.

Attractive

location

Lots of coffee

flavor

State-of-the art

equipment

Excellent

brand name

and visibility.

Weaknesse

s

A limited

marketing

budget to

develop brand

awareness.

Lack of

individual

attention to

The

operation is

seldom.

The products

are expensive.


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loyal

customers.

Opportuni

ty

Accessible to

all customer

specially for

travelers

Cheaper

varieties of

coffees.

Opportunity

to promote

their

products.

Tied up with

other

companies

for

promotions.

The

opportunity of

offering new

service.

Merchandising

Threats Emerging local

competitors.

Unorganized

markets.

Competition

from taverns.

Big

competitors

inside the

area.

Limited

income of

target

market.

The building is

prone from bad

elements.

Dependent on

government

commodity

rates.


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V. Marketing Mix (4Ps)

5.1 Products


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South Prince coffee shop specializes in coffee and related beverages. The

company sells coffee and cakes.

There are many different flavors and you can get them as Cappuccino,

Latte, Flat White, Hot Chocolate, Mochaccino, Long Black, Chai Latte,

and Hot tea.

Some of their most popular teas fall into the Chai Latte category. Its a

spicy black tea with cardamom, cinnamon, black pepper and star anise..

A South Prince Coffee Shop Cappuccino is similar to a latte but with

more foam.

South Prince Mocha is an espresso, steamed milk and chocolate with

whipped cream on top.

5.2 Pricing

In the form of prices for our products, the main objective to achieve is to

provide anaffordable and reasonableone, which is deemed by the

majority of the crowd. The price must be relevant towards the products

in quality and quantity, so the question we ask ourselves must be "how

much is a customer willing to pay for these products?". Only then, will


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we be able to place ourselves in the shoes of the customers and

understand their train of thoughts and considerations with regards to

paying for a certain product.

Also, the cost of production for the products itself, MUST be taken into

consideration. Currently, the ideal cost would be one that will give us an

edge over our competitors eg. East Coffee Bar, Honey Bear Coffee Shop

by having a slightly lower price, yet being able to earn a reasonable profit

margin

5.3 Pricing

The location of the store is crucial towards the business and human

traffic of the shop. In prime locations, the cost of the rent is likely to be

higher by a significant amount of money; however, there will also be a

bigger flow of human traffic and is essential that leads to an increase in

profits when more customers patronize the shop.

In the case of a "PRIME" area, it is one that is conveniently accessed,

equipped with the right environment which suits the ambience of the

shop, and also prospering and thriving with other list able shops that

will draw in the crowd.


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5.4 Promotion

Advertisements

We will definitely utilize the web to spread the word on our products as we are

familiar with many of the online platforms and all good companies use them.

We will use blogs and pay-per-click advertisements. We will also create a site for

our company and add as many links to other relevant sites so as to increase

our ranks in search engines and in advertisement sites such that it is easier for

people to discover over products, thus attracting more customers. We will

advertise in newspapers too to reach out to more people. Other than using

newspapers and the web, we will also use more traditional methods such as

through brochures, catalogs and posters. As we are a new company and do not

have a very big capital, we will not be advertising on expensive platforms such

as on television.

Design

We want to have a kind of colour scheme in which when people see it, they will

instantly be able to identify it as belonging to us. The colour scheme will be


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used in the interior design. For our logo, it will be something simple but can be

easily identified.

Customers

We want to have customers who are loyal, who patronizes our shop often and

recommends our products to their friends rather than just trying to get more

customers. We will use marketing techniques which do not involve constantly

pestering people to buy but rather asking for their opinions about our

products. We will try to be polite and friendly and solve complaints as quickly

as possible to increase our credibility and hence, attract loyal customers who

regularly patronize our outlets.

.


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VI. Marketing Goals and Objectives

Goals: To provide a substantial income and to create a business and working

environment where both the customer and employee are treated with dignity

and respect.

South Prince Coffee Shopsobjectives for thefirst yearofoperations are:

Become selected as the "Best New Coffee Shop in the town".

Turn in profits from the first month of operations.

Maintain a40%gross margin.


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Decreasing 2% of cost expense annually.

VII. Marketing Strategies

South Prince Coffee ShopsIncentive Programs

Reward your satisfied customers with a punch card or frequent customer card

that gives them a free drink after so many purchases. If you use a point-of-sale

terminal that keeps track of individual purchases, offer a freebie such as a

specialty drink or baked goods to thank your loyal customers. Hand out

discount cards to area employees, ask them to sign their names on the back,

and encourage them to give the cards to people so they visit your shop. Keep

track of who sends people, and reward that person with free drinks or baked

goodies as a thank you.


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Provide Extras

To get people to linger in a coffee shop, you need to offer more than just tasty

brews. To entice these people to your store, offer extras such as wireless

Internet access and space to work at a table. If you cater to business owners or

travelers, provide a few computer terminals. To entice people to buy more, offer

free samplings of your coffee and baked goods, and create a package deal that

includes a drink and baked good for a lower price than when bought

separately.

Branding

Carefully crafted signs that instantly help passersby see what you offer help

bring in people once the morning rush finishes. Develop an eye-catching logo

related to coffee, and use it on the sign to build your brand. Check local city

ordinances to determine the largest sign youre allowed to put on the sidewalk

in front of your shop, and use that size sign to make it visible to automobile

traffic. List the products your shop offers, such as gourmet coffee, specialty

drinks, baked goods and Internet access. For more branding, add stickers with

your logo to cups or use sleeves with your logo and website address on them.


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Cross-Promote

Get involved with nearby businesses and develop a cross-promotional

marketing strategy that builds traffic for all of you. Introduce yourself by

walking over and surprising a nearby business with a few cups of coffee. Start

with businesses that offer services or products where their customers are

required to wait 10 minutes or more, such as oil and lube change stores, hair

stylists, Laundromats, and repair shops.

VIII. Implementation Activities

Implementation Activity

Activitie

s

Ja

n

Feb Mar Apr May Jun Jul Aug Sep

t

Oct Nov De

c

Flyers x x / x / / x x / x x x

Ads and

Tarpauli

n and

other

strategi

c

relation

x X / / / / / / x / / x


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ship

!uip"

ent

#hec$

and"ainten

ance

/ x / x / x / x / x / x

IX. Budget and Sales Forecasts

9.1 Sales forecasts


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Year 1

Sales Expense Profit

January 171,445.00 89,206.01 82,238.99

e!ruary 198,555.00 108,075.05 90,479.95

"ar#$ 183,735.00 104,630.82 79,104.18

%pril 208,735.00 119,839.91 88,895.09"ay 198,290.00 111,036.11 87,253.89

June 160,675.00 95,724.88 64,950.12

July 154,330.00 95,874.33 58,455.67

%u&ust 168,360.00 100,248.68 68,111.32

Septe'!e

r 197,295.00 110,660.83 86,634.17

(#to!er 189,370.00 106,586.27 82,783.73

)o*e'!er 189,235.00 107,076.13 82,158.87

+e#e'!er 214,985.00 138,295.13 76,689.87

otal 2,235,010.00 1,287,254.15 947,755.85

37515585%,40%

57260000%,60%

Profit of Drinks and Desert

1

2


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JanuaryFebruaryMarchApril May JuneJulyAugustepte!ber"ct#ber$#e!ber&ece!ber0'00

20,000'00

40,000'00

60,000'00

80,000'00

100,000'00

120,000'00

140,000'00

Sales

&rin(s

&esert

Months

Value in Peso

Sales Profit

Drinks Desert Drinks Desert otal

January 109,745.00 61,700.00 51,388.99 30,850.00 82,238.99

e!ruary 97,755.00 100,800.00 40,079.95 50,400.00 90,479.95

"ar#$ 88,735.00 95,000.00 31,604.18 47,500.00 79,104.18

%pril 86,335.00 122,400.00 27,695.09 61,200.00 88,895.09

"ay 87,990.00 110,300.00 32,103.89 55,150.00 87,253.89

June 80,675.00 80,000.00 24,950.12 40,000.00 64,950.12

July 73,430.00 80,900.00 18,005.67 40,450.00 58,455.67%u&ust 83,860.00 84,500.00 25,861.32 42,250.00 68,111.32

Septe'!er 97,195.00 100,100.00 36,584.17 50,050.00 86,634.17

(#to!er 93,270.00 96,100.00 34,733.73 48,050.00 82,783.73

)o*e'!er 92,635.00 96,600.00 33,858.87 48,300.00 82,158.87

+e#e'!er 98,185.00 116,800.00 18,289.87 58,400.00 76,689.87


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otal1!"#9!#1"."

"

1!1$%!&""."

"

'(%!1%%.#

%

%(&!)""."

"

9$(!(%%.#

%

9.& *+penses

-ost an Expenses

January

/ent 15,000.00

"a#$ine an Euip'ent "aintenan#e 5,000.00

usiness %nnual /e&istration 500.00

Pro'otion 100.00

elep$one 999.00

-offee n&reients 5,552.06 36402.06

-aes 30,850.00

a!or salaries an a&es3 27,180.00

i&$t an ater Expenses 4,024.95

otal 89,206.01

e!ruary

/ent 15,000.00

"a#$ine an Euip'ent "aintenan#e 5,000.00Pro'otion 1,000.00

elep$one 999.00

-offee n&reients 3,903.22 54303.22

-aes 50,400.00



otal 108,075.05

"ar#$

/ent 15,000.00


Pro'otion 150.00

elep$one 999.00


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-offee n&reients 3,408.88 50908.88

-aes 47,500.00



otal 104,630.82

%pril

/ent 15,000.00


Pro'otion 100.00

elep$one 999.00

-offee n&reients 3,408.88 64608.88-aes 61,200.00



otal 119,839.91

"ay

ixe Expense

/ent 15,000.00"a#$ine an Euip'ent "aintenan#e 5,000.00

Pro'otion 150.00

elep$one 999.00

-offee n&reients 2,736.09 57886.09

-aes 55,150.00



otal 111,036.11

June

/ent 15,000.00


Pro'otion 150.00


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elep$one 999.00

-offee n&reients 2,043.95 42043.95

-aes 40,000.00



otal 95,724.88

July

/ent 15,000.00


Pro'otion 100.00

elep$one 999.00-offee n&reients 1,750.61 42200.61

-aes 40,450.00



otal 95,874.33

%u&ust

/ent 15,000.00


Pro'otion 100.00

elep$one 999.00

-offee n&reients 4,999.56 47249.56

-aes 42,250.00



otal 100,248.68

Septe'!er

/ent 15,000.00



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Pro'otion 100.00

elep$one 999.00

-offee n&reients 5,739.00 55789

-aes 50,050.00



otal 110,660.83

(#to!er

/ent 15,000.00


Pro'otion 100.00elep$one 999.00

-offee n&reients 4,821.11 52871.11

-aes 48,050.00



otal 106,586.27

)o*e'!er

/ent 15,000.00


Pro'otion 100.00

elep$one 999.00

-offee n&reients 4,151.52 52451.52

-aes 48,300.00



otal 107,076.13

+e#e'!er

/ent 15,000.00


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ire insuran#e 3,000.00

Pro'otion 150.00

elep$one 999.00

-offee n&reients 5,739.00 64139

-aes 58,400.00

ift an onus 15,000.00



otal 138,295.13

9.3 -ontri!ution "ar&in

-ontri!ution "ar&in

Per nit 84.38:53.37 31.01

/atio 31.01;84.38 36.75aria!le

an fixe

#osts?

%*e. Sellin&

Pri#e 84.38

%*e. ixe

-ost 1.65

%*e.>aria!le

-ost

53.37

reae*enpoint in peso

21,482.33;1:=1.65;84.38? 21,910.78

reae*enpoint in nit 21,482.33;1.65 13,020

X. *valuation of ,esults

1" a. -easurement of erformance


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%ear & %ear ' %ear ( %ear ) %ear *

Sales'+'(*+,&,-

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,,'+,)+(0'-

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e)'-),4 ))-),4 ).-),4 *)-),4 *.-),4

XII. /ontrol -easures

11.a /ontingenc0 lans

The purpose o5 South 3rince #o6ee Shop7s

"ar$eting plan is to serve as a guide 5or the

organi8ation

9 :e need to i"prove our revenue percentage

as possible-

9 Mini"i8e ;hat the possible cost that doesn


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+eter'inin& t$at t$e !usiness #annot support itself on an on&oin&

!asis.

Aa*in& to liuiate euip'ent to #o*er lia!ilities.

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Marketing Plan MKTG.4

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