5/18/2017 https://blackboard.strayer.edu/bbcswebdav/institution/BUS/599/1156/Week6/Week 6 Assignment 2 Grading Rubric.html Grading for this assignment will be based on answer quality, logic/organization of the paper, and language and writing skills, using the following rubric. Points: 100 Assignment 2: Marketing Plan Unacceptable Fair Proficient Exemplary Below 70% F 70­79% C 80­89% B 90­100% A Did not submit or incompletely analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Did not submit or incompletely supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Partially analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Partially supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Satisfactorily analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Satisfactorily supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Thoroughly analyzed the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Thoroughly supported your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). 1b. Outline the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Weight: 5% Did not submit or incompletely outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Partially outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Satisfactorily outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). Thoroughly outlined the demographic information for your company specified on the worksheet in the course text (p. 107 | Demographic Description). 2a. Use the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Did not submit or incompletely used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Partially used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Satisfactorily used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Thoroughly used the factors listed in the course text graphic (p. 123 | Assess the Competition) to assess your company’s market competition. Did not submit or incompletely defended your strategy to successfully compete against market leaders in your segment. Partially defended your strategy to successfully compete against market leaders in your segment. Satisfactorily defended your strategy to successfully compete against market leaders in your segment. Thoroughly defended your strategy to successfully compete against market leaders in your segment. Did not submit or incompletely defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Partially defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Satisfactorily defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Thoroughly defended your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Did not submit or Partially clarified your company’s message Satisfactorily clarified your company’s Thoroughly clarified your company’s message Criteria 1a. Analyze the types of consumers who will be drinking your beverage in demographic terms (i.e., age, education level, income, gender, ethnic group, etc.). Support your analysis with actual data on the size of the demographic groups in your local community (nearby zip codes). Weight: 5% Weight: 5% 2b. Defend your strategy to successfully compete against market leaders in your segment. Weight: 5% 2c. Defend your plan to differentiate yourself from the competition using the information detailed on the worksheet in the text (p. 131 | Market Share Distribution). Weight: 5% 3. Clarify your company’s message using the information https://blackboard.strayer.edu/bbcswebdav/institution/BUS/599/1156/Week6/Week%206%20Assignment%202%20Grading%20Rubric.html 1/2 5/18/2017 https://blackboard.strayer.edu/bbcswebdav/institution/BUS/599/1156/Week6/Week 6 Assignment 2 Grading Rubric.html provided on the worksheet in the text (p. 160 | The Five F’s). Weight: 20% 4. Identify the marketing vehicles you plan to use to build your company’s brand. Justify the key reasons why they will be effective. Provide examples of other non­ alcoholic beverage companies that use these tactics effectively. Weight: 20% 5. Clarity, writing mechanics, and formatting requirements incompletely clarified your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). using the information provided on the worksheet in the text (p. 160 | The Five F’s). message using the information provided on the worksheet in the text (p. 160 | The Five F’s). using the information provided on the worksheet in the text (p. 160 | The Five F’s). Did not submit or incompletely identified the marketing vehicles you plan to use to build your company’s brand. Did not submit or incompletely justified the key reasons why they will be effective. Did not submit or incompletely provided examples of other non­alcoholic beverage companies that use these tactics effectively. Partially identified the marketing vehicles you plan to use to build your company’s brand. Partially justified the key reasons why they will be effective. Partially provided examples of other non­alcoholic beverage companies that use these tactics effectively. Satisfactorily identified the marketing vehicles you plan to use to build your company’s brand. Satisfactorily justified the key reasons why they will be effective. Satisfactorily provided examples of other non­alcoholic beverage companies that use these tactics effectively. Thoroughly identified the marketing vehicles you plan to use to build your company’s brand. Thoroughly justified the key reasons why they will be effective. Thoroughly provided examples of other non­alcoholic beverage companies that use these tactics effectively. More than 6 errors present 5­6 errors present 3­4 errors present 0­2 errors present Did not submit or incompletely completed the Marketing Budget worksheet for your company. Partially completed the Marketing Budget worksheet for your company. Satisfactorily completed the Marketing Budget worksheet for your company. Thoroughly completed the Marketing Budget worksheet for your company. Weight: 15% 6. Complete the Marketing Budget worksheet for your company. Weight: 20% https://blackboard.strayer.edu/bbcswebdav/institution/BUS/599/1156/Week6/Week%206%20Assignment%202%20Grading%20Rubric.html 2/2 You started out very well, but you did not address all of the requirements of the assignment. Good analysis of the competition, I would like to see sales/revenue numbers. You did not address section 3, using the Five F's. 3. Clarify your company’s message using the information provided on the worksheet in the text (p. 160 | The Five F’s). You did not submit your marketing financial statement. Please revise with the missing information and re-submit. Running Head: MARKETING PLAN AND SALES STRATEGY Marketing Plan and Sales Strategy Lorenzo Boatman Strayer University BUS599 April 30, 2017 1 MARKETING PLAN AND SALES STRATEGY 2 Demographic Characteristics of Target Market Jazzy Café’s target market consists of 15 to 29 year olds in high schools, universities and young adults who have just joined the working class. Jazzy will provide an ambient environment and coffee as a stimulant appropriate for studying and working. Jazzy Café’s first location will be in the independent city of Lynchburg, Virginia. Lynchburg has the highest concentration of universities and colleges in VA combined with the largest University in Virginia, Liberty University. This locale assures the proprietor of an existing demand that with the correct marketing strategies can be fully exploited. The United States Census Bureau estimates the population of Lynchburg in 2016 at 80,212 with 1,538 persons per square mile. (U.S Census Bureau, n.d) The state has a high population density as compared to the average population per square mileage of the U.S of 87.4 people. The high population density is advantageous to the Café as it places a larger number of people in the café’s locale than it would in a less populated area. A large proportion of the Lynchburg population consists of students and the working class, as of 2016, 66.4% of the population was between 18 years old and 64 years. 57.7% of the population aged 15 years and above was in the civilian workforce as of 2016. Competition in the Non-Alcoholic Beverages Market Rivalry: High The non-alcoholic beverage market is stiffly competitive. Industry leaders hold more than 50% of the market demand with Starbucks having a demand of 36.7% followed by the Dunkin Brands with 24.6% (Statista, n.d). 3 MARKETING PLAN AND SALES STRATEGY Sales Starbucks Dunkin Brands Others Starbucks and the Dunkin Brands have been the market leaders with the Dunkin Brands increasing its market share from 19.8% to 24.6% in the past three years (Statista, n.d). There are numerous independent coffee houses and restaurants serving coffee all round. The consumption of coffee has also stagnated with Americans consuming an average of 2 cups of coffee since 1999 (Saad, 2015) hence overall competition is increasing with establishments struggling for a larger percentage of the market share. Established coffee houses boast a wide variety of coffee drinks at lower prices than their competitors. Starbucks has diversified its services by providing an ambient environment for customers intending to work or meet socially while also providing to-go coffee with high quality packaging. Bargaining Power of Suppliers: Low Suppliers of ingredients in the coffee industry have little bargaining power. The market for agricultural goods such as sugar and coffee and animal products is almost that of perfect competition. Suppliers’ supply at the market price and prices hardly increase. The price of coffee beans is however dependent on the stability of the global economy since the U.S imports coffee from developing countries most notably MARKETING PLAN AND SALES STRATEGY 4 Ethiopia and Brazil. In the event of instability suppliers have bargaining power since the produce is limited. Since suppliers cannot increase prices they aim at increasing sales hence they are willing to supply at discounted prices for large orders keeping established coffee houses ahead of new entrants in the market. The Bargaining Power of Buyers: High Buyers have a high bargaining power due to the varied types of drinks and varied prices offered by different establishments. This limits the ability to increase prices for drinks offered by other establishments. Threat of Substitute Products: High There exist many substitutes for coffee in the market. Carbonated drinks, milk drinks such as milkshakes, yogurt etc., and fresh juices. Consumers are already switching to healthier substitutes due to recent campaigns against sugar. The competition from possible substitutes is decidedly stiff. Threat of Entry of New Competitors: Moderate to High There are few barriers to entry in the caffeinated drink market. The market is however almost saturated with investors preferring to invest in unsaturated markets. Competition Strategies The business cannot create value through the cost side. Existing market leaders such as Starbucks and Dunkin Donut have achieved cost leadership by attaining economies of scale related to supply contracts at discounted prices and learning and experience curves. The café can compete through a high degree of product and service differentiation to create a niche market in the non-alcoholic beverage sector. The Café has differentiated itself from its competition by targeting a particular consumer segment. The café’s mission as per its mission statement is to provide a MARKETING PLAN AND SALES STRATEGY 5 relaxing environment that is inviting to customers and to promote a stimulation of the minds of our future leaders. This can be used in the marketing by selling the establishment as a study Café. While it is common to see students studying at a Starbucks and Cafes near student housing zones these cafes have not specifically targeted this consumer subsection. There are hardly any study cafes in the state of Virginia. Students usually feel out of place while studying at a Café frequented by older people and cafes created for social gatherings. Selling Jazzy as a study Café will take advantage of this existing market demand. To effectively exploit this market Jazzy will incur additional costs in prepping the restaurant space. The restaurant will be divided into individual study and group study areas as would two person and four person tables in any restaurant. The restaurant will also invest in providing an ambient environment by placing speakers playing soft sounds in the restaurant. The restaurant will also require constant strong Wi-Fi network and should operate until midnight to cater to student’s varied hours of studies. The restaurant should also take advantage of the economies of scope of serving a particular consumer segment and increase the services offered. The restaurant can include specialty cakes in their product range and other products that are complements of coffee so as to increase the revenues. Marketing The cafe is selling a product coupled with the service of provision of a conducive study environment. The café is also selling a healthy alternative to energy drinks to give students the natural boost they require to focus on their work. Coffee is a natural beverage; its components, sugar, coffee and cream are all sourced naturally. Caffeinated drinks act as stimulants as do carbonated and energy drinks. Freshly MARKETING PLAN AND SALES STRATEGY 6 brewed caffeinated drinks are healthier than carbonated drinks and soft drinks. Jazzy Café should take advantage of this distinction in marketing. On the weekends, the café is selling a quiet and fun way to unwinding with friends in a safe environment through trivia games. Marketing Vehicles Considering the characteristics of the target market, the Café will use online marketing as the main marketing vehicle. This will be done on local websites and channels. For one, the Café will collaborate with food and lifestyle bloggers. University students and high school students are avid readers of blogs with major blogs getting 100,000 hits per day. The café could partner with bloggers inviting them to get a feel of the Café and post reviews on the blog. The café should also advertise in local location websites and use Google Adwords so that the café appears first in the result list in a search for study cafes in Lynchburg. The restaurant could also market through events hosted at the Café. The most appropriate event would be trivia weekends where winners get small prizes in the form of coffee cups, baseball caps and t-shirts with the Jazzy Café logo. Trivia weekends increase the restaurant’s recognition among University students and increase the sales from participants and the crowds. The Café can further market itself by sponsoring high school sports meets, mathlete competitions and science fairs. As a sponsor, the café will be allowed to hang banners in the arena or field increasing brand recognition among high school students. MARKETING PLAN AND SALES STRATEGY 7 REFERENCES United States Census Bureau. (n.d). Lynchburg City, Virginia. Retrieved from https://census.gov/quickfacts/meta/long_RHI825213.htm Statista. (n.d). Coffee Shop Industry- Statistics and Facts. Retrieved from www.statista.com/topiccs/1670/coffeehouse-chain-market/ Saad, L. (2015, July 29). Americans' Coffee Consumption Is Steady, Few Want to Cut Back. Retrieved from gallup.com: http://www.gallup.com/poll/184388/americans-coffee-consumption-steadyfew-cut-back.aspx
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