Goal

Generate monthly sales revenues of $71,000 per month of 3% of the target market within 18
months of opening.

Objectives

• Maintain a high standard of food quality and service

• Provide first-rate live entertainment without a cover charge
• Ensure a friendly comfortable atmosphere
• Place monthly ads in neighborhood publications
• Distribute monthly fliers to neighborhood, businesses and churches
• Offer discount coupons
• Maintain and use a customer mailing list

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.

Estimated Market Share and Sales

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.

Age Percent % of Population

21-24 6.26%
25-29 7.97%
30-34 8.15%
35-39 8.03%
4049 16.67%
Total 47.08%
Income % of Population
50,000-74,999 20.94%
35,000-49,999 20.04%
25,000-34,999 14.92%
Total 55.90%

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%

Formula For Market Share

The formula takes the total population and then multiplies that number by the percentages in
order of importance to the Target Customer.

Total Population × Age% × Income% × Education% × Occupation% = Total Market

162,908×47.08%×55.90%×56.78%×50.91% = 12,393 persons

Market Share For Coffee Circus

2.2% Of Market=276 Cust./Day or 17 Cust./Hour
1.8% Of Market=230 Cust./Day or 14 Cust./Hour
1.6% Of Market=202 Cust./Day or 12 Cust./Hour

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.

Breakfast - 57 cust/2 = 29 cust/127 = 23% occupancy level

Lunch - 67 cust/2 = 34 cust/127 = 27% occupancy level

Dinner - 79 cust/2 = 40 cust/127 = 32% occupancy level

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

• Develop brand awareness through a steady, month to month increase of new

customers.
• Develop an increase in sales while achieving a status quo state or decrease in
marketing expenses.
• Develop awareness of the structured conversation system measured by customers
coming to the Grog Shop solely for meeting people.

Financial Objectives

• A double digit growth rate for each future year.

• Reduce the variable costs through efficiency gains.
• Reach profitability within the first year.

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:

• Single: self evident.

• Professional: this characteristic is intuitive since the underlying element of Colloquy
Grog Shop is thoughtful conversation, and most professionals appreciate thought-
provoking conversation.
• Income over $40,000: this to a large degree is correlated to the fact that they are
professional.
• Age 25-45: the largest group of singles looking for companions.

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:

• A unique approach to getting singles together called the structured conversation

system. This system was detailed in the Product and Services section, please refer to
that section for more information.
• This system is a competitive edge because most bars/taverns do not have a niche that
they are concentrating on. While every bar or coffee shop has a certain "flavor" and
that is why someone will choose one bar or another, the flavor is only surface deep.
The business model of the establishment is to sell alcohol and provide a social
setting. Beyond these two values, there is little other genuine value that the
establishments try to provide.
• Colloquy Grog Shop is distinguished by the fact that their business model
concentrates on developing value for customers beyond serving drinks. The Grog
Shop develops an effective, albeit inherently structured, social setting that encourages
meeting like-minded individuals. Providing the drinks is the source of income, an
ancillary part of the business model. Generating value for the customers is the main
focus, if the customers are happy then the revenue will follow (assuming of course
that proper marketing and financial controls are employed). Concentrating on the
client's needs beyond serving alcohol is the distinguishing characteristic that will
allow Colloquy Grog Shop to rapidly gain market share.

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
A4t

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.

Based on in depth research, coffee kiosk management experience, and a thorough

understanding of the coffee shop market, The Coffee Shoppe has identified the following sets
of objectives as key to its success:

• 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.