Marketing Planning and ManagementCold Brew Marketing Plan
Student Names: Anastacia Clarke, Bernie Ng, Kaysee Felgate, Kirsty Chapman, Stephan Wang
Assignment 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:
Table of Contents1.0 Executive Summary...................................................................................................................... 3
2.0 Situation Analysis.......................................................................................................................... 42.1 The Market 43........................................................................................................................................................ 4
2.1.1 Market Need 61................................................................................................................................................................... 42.1.2 Macro-environment..........................................................................................................................................................4
2.2 The Company......................................................................................................................................................... 62.2.1 Mission statement 30.......................................................................................................................................................62.2.2 Marketing Team 20............................................................................................................................................................62.2.3 SWOT Analysis.....................................................................................................................................................................6
2.3 The Competition 126........................................................................................................................................... 7
3.0.Market Segmentation And, Targeting..................................................................................103.1 Segmentation..................................................................................................................................................... 10
3.2 Target market 130..............................................................................................................................................................10
4.0 Market size, demand and potential 28................................................................................114.1 Estimated market demand............................................................................................................................. 11
5.0 Marketing Objectives and Metrics 17..................................................................................12
6.0 Marketing Mix.............................................................................................................................. 136.1 Product strategies 87........................................................................................................................................ 136.1.3 Packaging: 40................................................................................................................................................... 14
6.1.4 Labeling. 42........................................................................................................................................................................ 146.2 Pricing strategies............................................................................................................................................... 15
6.2.1 Pricing factors and sensitivity 184...........................................................................................................................156.2.2Pricing strategy 80.......................................................................................................................................................... 156.2.3 Cold Brew Prices 80........................................................................................................................................................156.2.4 Break-even........................................................................................................................................................................... 16
6.3 Placement strategies 109................................................................................................................................ 176.4 Promotional strategies.................................................................................................................................... 18
6.4.1 Social Media Presence 86.............................................................................................................................................186.4.2 Facebook &Instagram Applications 78..................................................................................................................206.4.3 Snap Chat 71...................................................................................................................................................................... 206.4.4 Market Day Promotion Strategies 20......................................................................................................................20
7.0 Budget............................................................................................................................................ 21
8.0 Implementation Plan................................................................................................................. 22
APPENDIX C: MARKET VISIT.......................................................................................................... 27
Cold Brew – To get you Through 2
1.0 Executive Summary
Cold 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
Cold Brew – To get you Through 3
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 61
Cafes 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-environment
A PEST analysis analysing current macro-economic trends / issues occurred.
Environment Trends/issues Implications for our product
Political/Legal Health and Safety: Cold Brew will Abide by all regulations of the Food Act 2006 and Food Regulations 2006.
QUTopia Laws and Rules
Cold 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.
Cold Brew – To get you Through 4
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 money
Economic Low economy
Competitive pricing in the coffee market
Citizens 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-cultural Healthy Eating
Coffee Tastes and Preferences
Health 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
Cold Brew – To get you Through 5
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.’
Technology Use of Smart Phones There 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 Analysis
2.2 The Company
2.2.1 Mission statement 30
Cold 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 20
The team consists of a Marketing Manager, a Product Manager, a Pricing Manager, a Distribution
Manager and a Promotion Manager.
2.2.3 SWOT Analysis
Strengths Weaknesses
·Knowledge: Excellent team members with strong knowledge ·Traditional idea: Many brands already offer
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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
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 choices
Opportunities Threats
·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.
·Competitive Market: E ntering a market
with many competitors
·Competition: Competing with numerous
other companies in the same industry
Cold Brew – To get you Through 7
·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
·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 drink
Table 2: SWOT Analysis
2.3 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 Cortez Competitor 2: Frozen Summer Competitor 3: Squeeze
Target 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 fit
Product Chocolate drinks and chocolate goods
Fresh Ice Tea Drinks Fruit Juices
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PriceSelling 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, QUTopia Stall 46, QUTopia Stall 54, QUTopia
PromotionFacebook page No promotions as of yet. Facebook page, Second
advertisement on QUTopia Official Facebook page, Instagram account
Potential competitive barriers
Coco 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 weaknesses
Strengths: 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
entry
Our likely
respons
e(s)
Create more attention to our Facebook and Instagram pages.
Display Merlo effectively so
consumers are drawn to us
Continue 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: Competitors
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Cold Brew – To get you Through 10
3.0.Market Segmentation And, Targeting
3.1 SegmentationCold Brew analysed three segments in order to identify the target market.
Big Chance Trending Small Chance
Geographic 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 description
Young 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 description
Young Optimism Something Better Look At Me
Behavioural description
Young 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: Segmentation
3.2 Target market 130
From 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
Cold Brew – To get you Through 11
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 demand
Key Factors Figures
Market Potential 267
Target Market Size: 148
Usage/Purchase frequency: Consumers are likely to
purchase 2 products during the
two market days.
Estimated market share 30%
Sales forecast-(b) x (c) x (d) 148 x 2 x .30 = 88.8
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5.0 Marketing Objectives and Metrics 17Four marketing objectives are analysed through the SMART objectives procedure. This will help Cold
Brew maximise potential.
SMART Objectives Metric How the data will be collected Metrics: How it will be measured
1) Build initial hype within QUTOPIA Market with Social Media Presence. Upload at least 17 of the 20 expected posts.
Exposure to Market
Cold 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 1
Break Even Point
Cold 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% Profitability
Net Profit Margin
Cold brew should achieve at least 10% profitability after Market day 2
Net Profit = Net income/revenue
4) Achieve 20% Loyalty
Customer Loyalty
Cold 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% Loyalty
Table 5.0 SMART Objectives
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6.0 Marketing Mix
6.1 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/Supplies Sources/Suppliers3 Bean Arab Coffee Blend, Merlo
Umbrella, Syrup Flavouring
Donated by Merlo Coffee
Full Cream, Skinny, Lactose Free, Soy
Milk
Purchased from Woolworths
Cups/Straws Purchased from Campbells
Table 6.0: Ingredients and Supplies
Milk 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.
6.1.2 Branding and Positioning. 74
Merlo’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
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in Diagram 2 communicate our overall value proposition and differentiate the product from
competitors. (Diagram 1).
Diagram 1: Product Levels 93
The 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. 42
Cold 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.
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6.2 Pricing strategies
6.2.1 Pricing factors and sensitivity 184
As 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 80
Due 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 80
To 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.
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Base With Milk With Syrup With Milk and Syrup Pricing Bundling (2 units, any combination)
Price $40 $45 $45 $50 $80
Table 7: Pricing of Products
Evidently, 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-even
Diagram 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: https://www.dinkytown.net/java/BreakEven.html)
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6.3 Placement strategies 109Distribution 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 Map
Consequently 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.
FEATURES COMMENTS BaseLocation Cold Brew is Located at Stall 49 within the market
place. With 5 access points in close proximity.
$40
Lighting Small 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 neighbours Just 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
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about disruption with blender noises. Additionally,
we have compensated for close proximity
competitors (46, 51 and 54) with additional and
different signage.
Traffic Flow Traffic 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 coverings The floor is covered with carpet so the acoustics of
the marketplace will be more thoroughly absorbed.
Access to a wall Cold Brew has no access to a wall so signage has
had to be all stand-alone.
Posts There a no post located near Cold Brews Stall.
Sound As 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.
Impediments The 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 strategies
6.4.1 Social Media Presence 86
Social 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 (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 (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015).
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Key Message Communications Mix Element
Promotional Tactics
Cold Brew is Competitive
Advertising and Social Media We 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 Sales
Since 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 Advertisement
A 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
Cold Brew – To get you Through 20
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 Table
6.4.2 Facebook &Instagram Applications 78
Stated 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 (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 71
Snapchat is a photo/video messaging app to post video “stories” that are shared amongst users (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 (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015) since it will entice the
customers prior to MD1 and MD2
6.4.4 Market Day Promotion Strategies 20
Market Day promotion strategy is evident in table 8: Strategy and description.
Strategy DescriptionSocial media Facebook, Instagrm and Snapchat Links will be
presented on a sign
Brand Loyalty – Strategic Partnership With 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
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participation in promotions
Encourage 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 Purchases CBC 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 Description
7.0 Budget
Cold Brew BudgetStart Up Capital ($Q) 4000Capital Retained ($Q) 2100Projected Unit Sales 89Min Unit Price ($Q) 40Max Unit Price ($Q) 50
Average Unit Price ($Q) 45
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Cold Brew Anticipated Profit and Loss Statement($AUD)
Real Currency
($Q) QUTopian Currency
Total
Total Sales $4005
Cost of ProductionMaterials $35Wages $1300Total Cost: $1335Gross Profit: $2670
Expenses:Stall Purchase $350Email Promotion $250Total Expenses: $350Net Profit: $2070
Anticipated Profitability of Organisation 51.68%
8.0 Implementation Plan
8.1 Pre-Market Day
Action Team member responsible Deadline
Commence daily posts/uploads of Snapchat, Facebook and Instagram 10 days prior to MD1
All Members (Begin on the 16th of September and Ends on the 26th)
Upload the Process of how we got the Cold Brew (Snapchat)
- Kirsty Chapman 26th of September
8.2 At Market Day 1
Action Team member responsible Deadline
Receive 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) Ng 27th of September
Provide Samples - As we wish to create as much awareness as possible, we will aim to have one member give out some free samples.
- Any Member 26th of September
8.3 Post-Market day 1/Pre-Market Day 2
Action Team member responsible Deadline
Have we broken even? – By viewing our sales numbers, have we sold more than 48 units?
-KayseeFelgate 28th of September
If we have not sold enough units to break even –
-Bernie Ng 9th of October
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Implement additional promotions to increase sales for MD2
Encourage 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 Clarke 9th of October
8.4 Market Day 2
Action Team member responsible Deadline
Encourage 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 Members 10th Of October
Are we making enough sales? Briefly check the # of units sold.
- KayseeFelgate 1pm 10th of October
8.5 Post-Market Day 2
Action Team member responsible Deadline
Group 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 Wang 10th of October close of business.
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Reference ListABS. (2014, 03 14).Regional Population Growth, Australia, 2012-13. Retrieved from Australian
BureauofStatistics: http://www.abs.gov.au/ausstats/[email protected]/Products/3218.0~2012-
13~Main+Features~Queensland?OpenDocument
Brisbane. (2014). Brisbane Demographics. Retrieved from Brisbane, Australias New World City:
http://www.choosebrisbane.com.au/corporate/about-brisbane/demographics
Betters, E. (2015, Jan 29).What is snapchat and how does it work? . Retrieved September 1, 2015 from Pocket-
Lint: http://www.pocket-lint.com/news/131313-what-s-the-point-of-snapchat-and-how-does-it-work
Folger, J. 2015. “Implementing A Small Business Social Media Strategy: Retrieved from:http://www.investopedia.com/university/implementing-small-business-social-media-strategy/
Grewal, 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:
http://www.investopedia.com/terms/c/cult-brand.asp
Martin, G. 2011, The importance of marketing segmentation. American Journal of Business Education, 4(6), 15-18. Retrieved fromhttp://search.proquest.com/docview/874269598?accountid=13380
Levine, M. (1997). Young Optimism. Retrieved from Ray Morgan Research:
http://www.roymorgan.com/products/values-segments/young-optimism
Moreau, E. (2015, jan 1).Top 15 Social Networking Sites You Should Be Using. Retrieved sep 1, 2015 from
webtrends: http://webtrends.about.com/od/socialnetworkingreviews/tp/Social-Networking-Sites.htm
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APPENDIX 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).
Item Detail Your ResponseIs a food license required? http://www.brisbane.qld.gov.au/laws-
permits/laws-permits-businesses/food-business-licences/starting-new-food-business/market-food-stall.
No
Does 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 Free
What are the dimensions of your stall?
Must NOT exceed 1.5m x 1.5m in width and depth
Height: NoneWidth: 5.5 StepsDepth: None
Will 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/kettles Esky’s (water condensation
on floor) Spillages Power cords that require
taping down or hiding behind stall
List 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)
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Item Your Answer1. For 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?
http://www.health.qld.gov.au/foodsafety/standards_code/labelling.asp
Yes.
“Coffee, Water, Caramel Flavouring, Milk, Soy, Lactose Free (type to be highlighted).
Food items only:
2. 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 items
How 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.
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OFFICE USE ONLY
License approved: ______________________________Tutor signature and date
27
APPENDIX 2: MARKET VISIT
Location 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 Stalls● What 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 snacks
Who 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?
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-What could they do to improve sales?
What are their products? Clothes
How 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 sales
Choosing 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.
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