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Generate monthly sales revenues of $71,000 per month of 3% of the target market within 18
months of opening.
Objectives
Target Customer
The customer will be between 18 to 55 years old. The income level is between $20,000 and
$100,000 per year. They will live within three miles of Coffee Circus. They will be white
collar workers (managers, professionals, etc.) with expendable income. The education level
will range from some college to post-graduate work. A limited number (10%) will come from
other areas. This 10% will generally be persons who are coming to see a particular entertainer
or poetry reading. A majority of the customers will be persons who enjoy a relaxing
atmosphere, conversation and table games.
Based on the customer profile for Coffee Circus the following numbers were compiled. The
report used was prepared by Phoenix Real Estate using information obtained through the
Facts Report. The report was prepared using Coffee Circus as the focal point and delineating
numbers by a one, three and five mile radius. For purposes of determining market share for
Coffee Circus, a three-mile radius was used. National statistics show that most persons do not
travel more than three miles to eat or to listen to entertainment. The report shows that
162,908 persons live in the three mile radius. The following is the breakdown of target
customers.
Education % of Population
Some college 28.76%
Associate degree 9.09%
Bachelor degree 13.39%
Graduate degree 5.54%
Total 56.78%
Occupation % of Population
Executive 12.96%
Prof/Specialty 13.16%
Technical Support 4.67%
Administrative Support 20.12%
Total 50.91%
The formula takes the total population and then multiplies that number by the percentages in
order of importance to the Target Customer.
Occupancy Levels
The occupancy of Coffee Circus is 127 persons. Two different methods can be used to
determine occupancy levels.
Hourly - If you estimate percent of occupancy on an hourly basis, the customer rate would be
9.4% of occupancy. 12 cust/hr /127 = 9.4% occupancy per hour
Mealtime - Typically, you will have two turnovers per meal. Based on projections the
percentages would be 23% for breakfast, 27% for lunch and 32% for dinner.
In reality, the true occupancy rate lies somewhere in the middle. Not all of the customers will
come in during those dinner times nor will they be spaced evenly throughout the day.
Read more: Coffee House Business Plan - Executive summary, Mission statement, Purpose
of business plan, Business goals http://www.referenceforbusiness.com/business-
plans/Business-Plans-Volume-04/Coffee-House.html#ixzz11fCXFaMg
http://www.referenceforbusiness.com/business-plans/Business-Plans-Volume-
04/Coffee-House.html
Mission
Colloquy Grog Shop's mission is to provide a neighborhood bar/coffee shop where single
people can meet. We exist to attract and maintain customers. When we adhere to this
maxim, everything else will fall into place. Our services will exceed the expectations of our
customers.
Marketing Objectives
Financial Objectives
Target Markets
Colloquy Grog Shop's customers can be broken down into two groups, singles, and non-
singles. The non-singles groups are smaller than the singles groups by virtue of the fact that
if you are meeting someone whom you already know, the two of you can come up with the
topic of conversation yourself, therefore, Grog Shop offers this group less value. The
demographics for the non-singles is similar to the singles, to be listed below. The larger
group then is the singles. The demographics of the singles are:
Positioning
The Colloquy Grog Shop will position itself as a reasonably priced tapas/bar/coffee house
that has an innovative, effective system for allowing single to meet each other.
The Colloquy Grog Shop's positioning will leverage their competitive edge:
Strategies
The single objective is to position the Colloquy Grog Shop as the premier place for young
professional singles to meet like-minded individuals. The marketing strategy will seek to
first create customer awareness regarding their services offered, develop that customer base,
and work toward building customer loyalty and referrals.
The message Colloquy Grog Shop will seek to communicate is that The Grog Shop is THE
place to meet intelligent singles. This message will be communicated through a variety of
methods. The first method will be advertisements. The bulk of the advertisements will be in
the Willamette Weekly, a weekly entertainment guide in Portland that has impressive
readership numbers for the desired target population.
Another method will be through establishing strategic relationships with companies that have
similar demographics such as the Multnomah Athletic Club. Establishing a mutually
beneficial relationship will allow both organizations to develop visibility for each other.
The other form of advertising will be using "grassroots" methods where customers will be
given coupons for their friends to try Colloquy Grog Shop for the first time. The coupon will
be an economic incentive for the newcomer to try Colloquy Grog Shop. The coupon also has
the added force of a referral from a friend.
Read more:
http://www.mplans.com/coffee_bar_marketing_plan/marketing_strategy_fc.php#ixzz11fGdB
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Vision Statement
The Coffee Shoppe intends to operate its business with a vision statement that captures the
owners desire to make coffee drinking an art form:
“Every cup of coffee served at the Coffee Shoppe is not just a cup of coffee but is a work of
art that is consumable and refillable for endless pleasure.”
Mission Statement
The Coffee Shoppe plans to become a valuable addition to the community by creating a
positive neighborhood gathering spot where customers can relax and enjoy high-end specialty
coffee drinks and unique products. The menu will be simple and elegant with all drinks
clearly explained in appealing terms. The Coffee Shoppe will have a large selection of games
and reading material. The Coffee Shoppe’s relaxed neighborhood setting will provide a
tranquil and social sanctuary for both local residents as well as commuters. The founder plans
on encouraging people to stay for a while in order to promote The Coffee Shoppe as an
escape from the pressures of day-to-day life.
With these observations in mind, the company’s mission statement expands on the vision
statement and makes it more tangible for owner and employees alike:
“Every single cup of coffee made and poured will follow the same set of stringent guidelines
that are taught to employees from day one and constantly reinforced; that is, made with care,
poured with concern, and sold with passion.”
Keys to Success
The success of The Coffee Shoppe primarily lies in its ability to satisfy the needs of the
customer while staying abreast of the fast-growing specialty coffee market. Specifically,
these are some of the key objectives that must be achieved:
Capture and retain a large segment of the largely untapped local market for specialty coffee
drinks.
Develop The Coffee Shoppe as a destination for both urbane customers who want to enjoy
The Coffee Shoppe’s upscale ambiance and blue-collar commuters in search of a good cup of
coffee.
Increase revenues to nearly $343,620 at the close of the first year by leveraging the proven
viability of the specialty coffee shop concept.
Design and execute a successful marketing plan that increases sales; strengthens customer
loyalty; and forges a positive perception of The Coffee Shoppe and its products.
Create a highly recognizable brand identity that can be leveraged by future coffee kiosks in
others strategic locations within the community.
Develop and sustain financially beneficial arrangements and agreements with suppliers,
licensees, franchisees, and distributors.
• Build a successful operation that can be expanded to meet new market opportunities
through the strategic placement of coffee kiosks.
• Develop a strong base of loyal customers to generate word-of-mouth business and
brand recognition throughout the targeted local markets.