Evaluating the marketing plan for the overnight café.
A marketing plan is very important for any organization in order to establish its respective business within the market segments. This research paper will help in evaluating the marketing plan for the overnight café. The café will offer customers gourmet coffees such as mocha, cappuccino, espresso, and latte, etc. In addition, to these items, tea as well as smoothies will be served with gracious pastries like bread, cookies, muffins and rolls and sandwiches and pasta. The company’s duty will be to offer a relaxing atmosphere through cozy ambiance, pleasant customer service in order to satisfy the customers. Customer’s satisfaction is the primary motive of the organization. The strengths of the association will be its top superiority of the management hold to the customers as well as to the employees. Starbucks is one of the top competitors in the grounds of café throughout the United States. The product will take in the quality and it availability for the customers of the organization. Overnight café will position itself as the reasonably priced coffee house delivering top quality of the coffee items to the respective customers. The pricing plan of the company is based on the usual rates offered within the industry practices. On the other hand, the marketing plan evaluates the marketing strategy and the financial activities of the organization.
Overnight Cafe will be a café located inDeKalb, Illinois. The café will be located near Northern Illinois University and will be a cozy café by focusing on the customer’s convenience and needs. It will offer customers gourmet coffees such as mocha, cappuccino, espresso, and latte, etc. In addition, tea and smoothies will be served with complimentary pastries like muffins, bread, cookies and rolls and sandwiches and pasta. The café’s structure will be a sole-proprietorship as it will be wholly owned by the owner, Charles Posejpal, who is a graduate in business administration and has experience with working in a local university coffee shop. Mr. Posejpal will invest initial capital to start the café and will be the top manager. As a manager of the café, he will be responsible for managing a small team of 10 employees.
As described earlier, the main product that the company will offer to its customers include gourmet roasted coffees, such as mocha, cappuccino, espresso, latte, and brewed coffee. The café will offer complementary products/services to its customers, such as tea and smoothies (strawberry, peach, mango, lemonade, orange, and berry based on seasonality). Moreover, a simple menu line will also be included in relation to the products like Panini, Mini Pizzas, Pasta, Grilled Sandwiches, Salad, Cinnamon Rolls, Cupcakes, Bread, and Cookies. All products will be fresh, healthy and of high quality. Moreover, the company will offer free books and magazines to the customers to read and relax in the café.
“The mission of the café will be to provide, healthy, high quality and fresh products to the customers and to be committed to the employees to ensure high-level customer service.”
The mission statement of the company indicates that the aim of the café will be to develop a different place, where the customers cannot only enjoy coffees and other products but also, socialize and relax with the high-quality services (Hult, Pride & Ferrell, 2014). The company’s mission will be to provide a relaxing environment through cozy ambiance, friendly customer service, and high-quality products along with the development of friendly communication between management and employees to increase customer satisfaction.
Innovation brings out the competitive edge for the companies operating throughout the world. The café will. Offer the wide range of the products and the taste will be quite different and amazing from that of the other café within that particular area. The cost pricing of the products will be quite different from that of the competitors (Hult, Pride & Ferrell, 2014). Moreover, the company will aim to deliver the best quality of the products as this will help in extending the barriers of the organization (Jensen, 2013). On the other hand, the customer services will of top quality as, “customer satisfaction is the main motive of the company”. The management team will look after the quality of the services and products delivered to the customers.
The strengths of the organization will be its top quality of the management support to the customers as well as to the employees (Levy & Weitz, 2007). The cafe will offer the wide variety of the products wait for top most quality as perceived by its respective competitors within the market segments.
The personnel and the finance section may lead to becoming the weakness of the organization. Therefore, the management team will look after the execution of the business process of the organization. The improper training to the employees many affect the organization, therefore, the managers will arrange perfect training for the employees of the organization (VanÄ›k, Mikoláš & Žváková, 2012).
The increasing demands for the fast food and the coffee will help in attracting the customers towards the organization. This will provide an opportunity for the organization to increase the productivity as well as the profitability of the organization (Mishra, 2013). The implementation of the innovative tools and techniques will help in increasing the selling of the products and will increase the reputation of the company.
The other café’s and the competitors within the concerned area will provide a potential threat to the Overnight Café. The legislations from the government might cause a threat to the café in executing its business process.
The café are the increasing business sectors all over the country. The coffee consumption has shown high and steady growth throughout the country (Mullin, Hardy & Sutton, 2007). The demands for the coffee lovers are increasing rapidly and it suggests that the coffee industry has the bright future all across the world. The coffee consumption has received a steady growth of about 2.5% throughout the United States. The local climate having a long rainy season is good for the growth of a large amount of the non-alcoholic beverages.
Starbucks is one of the leading competitors in the field of café throughout the United States. The star bucks nearly hold 35% of the total market share all around the country, therefore, it will give a tough competition to the Overnight Café (Pinson, 2008). Another example of the competitors within the Unites States is the Café Roma. PJ’s Coffee & Tea, Java Dave’s and New World Coffee are the major competitors in the field of café shop.
The customers will be offered great quality of the coffee, coffee products, and other food products in order to increase the profitability of the organization (Rego & Nunes, 2010). The students, youth, and the travelers will be targeted for the selling of the products. There will different schemes and promotional offers to attract the consumers towards the organization.
Marketing and Product Objectives
The marketing as well as the products objectives for the café are as follows:
The target markets will include those people who get their everyday cup of tea with great taste in the relaxing surroundings. It has been seen that the different ages of the people have different kinds of choices for the coffee (Safir, 2013). Therefore, the company will target the different variety of tastes for the consumers. It will help in attracting the consumers and will increase the productivity as well as the profitability of the organization. It is important to analyze the different needs of the customers as it will help in assisting the consumers with top quality of the services.
The points of difference will be in the quality and the pricing of the coffee as well as the other food items available at the café. The buying patterns of the customers will be quite different in terms of that of the respective customers of the organization within the market segments. The customers will be pleased to have great taste at the lower prices of the coffee and the coffee products.
Overnight café will position itself as the reasonably priced coffee house delivering top quality of the coffee items to the respective customers (Samset, 2010). The café is going to be made innovative and effective as to attract the customers towards consuming the coffee and its products. The unique approach towards the customers will help in gaining the competitive advantage for the company and, on the other hand, the innovation in the desired product items will help in increasing the brand reputation of the café within the market segments.
The product will include the quality and it availability for the customers of the organization. It is very needful to implement the best strategies regarding the products (Sawant, 2010). The products are the one which will attract the customers towards the café and will help in increasing the profitability of the café. The customers will be offered with a top quality of the products having different varieties of the coffee.
The pricing strategy of the company is based on the standard rates offered by the industry practices. The primary aim of the café will be at providing the best quality of the coffee at low prices than the competitors within the market segments.
The Break-even study critically indicates that nearly $30,237 will be required within monthly revenue in order to reach the desired break-even position.
|
Monthly Break-even Revenue |
$20,299 |
|
|
Assumptions: |
||
|
Average Percent Cost Variable |
32% |
|
|
Estimated Monthly cost price Fixed |
$19,654 |
There will different promotion schemes adopted for the café such as with the help of social media, campaigning at popular malls and cinema halls and with the help of the television. The different sectors of the people will be the target with the help of the effective promotions for the café.
The location selected for the establishment of the café is near Northern Illinois University. Different areas such as the shopping malls, colleges, and the cinema halls will be targeted for promoting the café (Sawant, 2010). These locations are selected for promoting as this location includes a large number of the people, students and the youth that will help in increasing the profitability of the organization.
The past sales revenue will be based on the business process execution plans from the management team.
The first three months will for the setting up of the physical condition of the company, hiring the personnel, establishing the relationship with then vendors and the suppliers of the raw materials (Venkatesh, 2015). The fourth month of the café will be the grand opening of the business. At first, the sales is supposed to remain low than in a few month it will grow steadily.
Marketing expense budget
|
Advertising |
$4,800 |
$2,400 |
$2,400 |
|
Strategic relationships |
$2,000 |
$1,200 |
$1,200 |
|
Other |
$2,400 |
$1,200 |
$1,200 |
|
Total Sales and Marketing Expenses |
$9,200 |
$4,800 |
$4,800 |
|
Percent of Sales |
5.23% |
1.07% |
0.97% |
|
Sales forecast |
|||
|
Drinks |
$105,921 |
$271,254 |
$296,874 |
|
Food |
$69,908 |
$179,028 |
$195,937 |
|
full amount Sales |
$175,829 |
$450,282 |
$492,811 |
|
Direct price of Sales |
2001 |
2002 |
2003 |
|
Drinks |
$26,480 |
$67,814 |
$74,219 |
|
Food |
$29,361 |
$75,192 |
$82,293 |
|
Subtotal Direct price of Sales |
$55,842 |
$143,005 |
$156,512 |
The organizational structure of a corporation plays the most important role in evaluating the desired business process of the company. Charles Posejpal is the owner of the café and he will need a team to execute the entire business process of the Café. An extra manager is required for hiring that will help in assisting and maintaining as well as reviewing operations within the café. A chef will be hired in order to manage the desired kitchen operations as well as be vital to maintaining coffee and the foodstuff register stability with support in the menu development. A helper manager or the higher server is going to be the hire that will be given the higher amount of salary, will provide normal counter service plus support to the supervisor as well as the general manager. A team leader will be hired that will do secondary supervision function in the kitchen with offer help to the chef in major kitchen/cooker function. Part-time workers will be then hiring to grip serving, as well as dishwashing function. The marketing along with accounting utility will be grip by autonomous supplier/consultants.
The implementation of the desired marketing plan needs to be done perfectly as it will enhance the effectiveness of the entire organization. The implementation process is most important for the establishment of the company within the market segments (Wong, Radel & Ramsaran-Fowdar, 2011). The following milestone is important in order to implement the desired marketing programs within the organization.
|
Advertising |
Start Date |
End Date |
Budget |
|
Marketing plan closing |
1/1/2016 |
2/1/2017 |
$0 |
|
Advertising |
1/1/2016 |
1/1/2017 |
$9,600 |
|
Strategic relationships |
1/1/2016 |
1/1/2017 |
$4,400 |
|
Grassroots promotion |
1/1/2016 |
1/1/2017 |
$4,800 |
|
Name me |
1/1/2016 |
1/15/2016 |
$0 |
|
Name me |
1/1/2016 |
1/15/2016 |
$0 |
|
Name me |
1/1/2016 |
1/15/2016 |
$0 |
|
Name me |
1/1/2016 |
1/15/2016 |
$0 |
|
Name me |
1/1/2016 |
1/15/2016 |
$0 |
|
Other |
1/1/2016 |
1/15/2016 |
$0 |
|
Total Advertising Budget |
$18,800 |
The manager of the organization needs to control as well as monitor the desired process and activities within the café. This will help in maintaining the overall effectiveness and efficiency of the café.
Difficulties and risks:
There are some of the worst cases that may include.
The overall control and the monitoring process are of great importance as it helps in bringing out the success of the marketing plan. The entire budgeting and the financial activities will be monitored by this process.
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