Joe Vagabond’s

Coffee Shop

JV’s

Coffee Shop

Situation Description•Current Sales•Break-Even Point•Weekend Numbers•Construction

Sales•Nearby High Schools•Lake Shawnee•Rockfire Housing

Target Market

•Coffee•Iced & Blends•Smoothies•Pastries

Products

JV’s

Coffee Shop

Situation Description (cont.)

• Sonic, McDonald’s, Gas Stations, From HomeCompeti

tion• Highly Trained, Passionate, Customer ServiceSales Force

• Free Internet, Friendly Environment, RelaxingExpectations

• Word of Mouth, Facebook, Fliers in SHHS, SignsCurrent

Promotions

JV’s

Coffee Shop

Situation Description (cont.)

• LOCATION• Construction• Rely on Word of Mouth • Fast Food & Coffee• Substitute Goods

Problems

JV’s

Coffee Shop

Objectives

Build up customer pool

Acquire more repeat customers

Increase sales past break-even

point

JV’s

Coffee Shop

Market Segmentation

Ethnicity This School State Average

White, not Hispanic 84% 73%

Black, not Hispanic 7% 8%

Hispanic 7% 12%

American Indian/Alaskan Native

1% 1%

Asian/Pacific Islander <1% 2%

Students eligible for reduced priced lunch

17% 39%

Source: NCES, 2005-2006

Shawnee Heights High School

JV’s

Coffee Shop

Highland Park High SchoolEthnicity This School

State Average

Black, not Hispanic 36% 8%

White, not Hispanic 32% 73%

Hispanic 26% 12%

American Indian/Alaskan Native

2% 1%

Asian/Pacific Islander <1% 2%

Unspecified 3% n/a

Students Eligible for Reduced-Price Lunch

77% 39%

Source: NCES, 2005-2006

Market Segmentation (cont.)

JV’s

Coffee Shop

Market Segmentation (cont.)Opportunities

Shawnee Heights

Wed/Thurs Clubs

Off School Clubs

Event Calendar

Highland Park

Several Clubs

Diverse Population

Event Calendar

JV’s

Coffee Shop

Marketing Mix (Product)

Quick Coffee

JV’s

Coffee Shop

Marketing Mix (cont.)

Atmosphere

JV’s

Coffee Shop

Marketing Mix (cont.)

Quick Coffee

•Price Sensitive•Can’t Compete with Sonic/McDonald’s•Coffee is a Convenience Good

Atmosphere•Less Price Sensitive•Coffee is a Shopping Good•Prone to Repeat Purchasing

JV’s

Coffee Shop

Marketing Mix (cont.)

Product Recommendations

BrandingJV’s

Coffee ShopDevelop a Logo

Expand Menu

Non-Coffee Food & Health

JV’s

Coffee Shop

Marketing Mix (Price)

Mixed Strategy

•Competitive Pricing for Drip Coffees (Penetration Strategy)•High Markup on Specialty Drinks Due to Price-Quality (Skimming Strategy)

Variable Pricing •Change Prices Weekly to Capture Customer Interest•Strategy Provides Ample Opportunities to Use Discount Promotions

JV’s

Coffee Shop

Marketing Mix (Place)

Problems•Distance From Major Roads•Parking Lot•Construction Work

Opportunities•Lack of Competition•Lake Shawnee•New Development•Great Ambiance

JV’s

Coffee Shop

Marketing Mix (cont.)

Watching Parties

Waiting for Coffee

Active Feel

Televisions

Brighter than average

Segmented Seating

Active Music

Atmosphere

JV’s

Coffee Shop

Marketing Mix (Promotion)

Opinion Leaders

• Use students to reach other students• Word of Mouth• Cost Effective

Texting

• Text promotions to students• Promotion WILL be looked at• Cost Effective

JV’s

Coffee Shop

Marketing Mix (cont.)

Newsletter/Postcard

• Monthly announcements• Advertise discounts/events• Increase exposure

Meeting Area for Clubs

• Repeat purchasing• Returning customers• Word-of-Mouth

Customer Incentives

• Punch Cards• Reusable Coupons• Discounts for Students

JV’s

Coffee Shop

Marketing Mix (cont.)

Website

• Monthly Update• Online Coupons• Increase exposure

Lake Shawnee

• Baseball Signage & Sponsorship• Trapped Parents/Siblings• Coupons for Hot & Cold Drinks

Live Entertainment• Develop a calendar• TV parties on slow nights• Repeat purchasing

JV’s

Coffee Shop

Budget Forecasting$500per

month

Small labor force

Simple, creative and cost-effective

JV’s

Coffee Shop

Budget Forecasting

April –MayBudg

et

Text Messaging$20/month

Fliers $50/month

Reusable Coupons

$50/month

Facebook$0/month

Student Discounts$0/month

JV’s

Coffee Shop

Budget Forecasting (cont.)

Baseball Field Sign& Team Sponsor

$275/month

Fliers/Coupons at

Lake Shawnee

$100/month

Text Messaging$20/month

Facebook$0/month

May-August Budget

JV’s

Coffee Shop

Budget Forecasting (cont.)

School Year Budget• $120/month• $380 remaining for

other promotions

Summer Budget• $395/month• $105 remaining for

other promotions

Annual Budget• $2,540 spent• $3,460 remaining

for standard promotional ideas (print, radio, tv, etc.)

JV’s

Coffee Shop

RecommendationsOpini

on Lead

erStudents

Text Message

Promotion

s

Student

Discount

s

Target

Baseball Parents/Kids

Brand as JV’s Coffe

e Shop

Improve

Store Layout & Ambiance