paviacafe-marketingplan-final

Pavia Gallery ~ Espresso Bar & Café Marketing Plan – April 11, 2013

of 38

Table of Contents

Executive Summary ............................................................................................................................3

Company Description & Mission Statement .........................................................................................4

Company Description: .....................................................................................................................4

Company History: ...........................................................................................................................4

Mission statement: .........................................................................................................................5

Situation Analysis ...............................................................................................................................6

Technological: ................................................................................................................................9

Health: ...........................................................................................................................................9

SWOT Analysis .............................................................................................................................. 10

Strengths: ................................................................................................................................. 11

Weaknesses: ............................................................................................................................. 11

Opportunities:........................................................................................................................... 12

Threats: .................................................................................................................................... 13

Competitor Analysis.......................................................................................................................... 14

Price:............................................................................................................................................ 15

Coffee & Espresso Pricing: ......................................................................................................... 15

Panini Pricing: ........................................................................................................................... 15

Roasted Coffee Pricing: .............................................................................................................. 15

Promotion: ................................................................................................................................... 16

Ambience Level: ........................................................................................................................... 17

Service Quality level: ..................................................................................................................... 18

Location: ...................................................................................................................................... 19

Marketing Objectives ........................................................................................................................ 19

Target Market .................................................................................................................................. 20

Positioning Statement....................................................................................................................... 21

Marketing Mix .................................................................................................................................. 21

Promotional Strategy .................................................................................................................... 21

Product ........................................................................................................................................ 22


of 38

Product Strategy ........................................................................................................................ 23

Price Strategy ............................................................................................................................... 24

Implementation, Evaluation, and Control ........................................................................................... 25

Financial Data and Sales Projections .................................................................................................. 28

Break-even Analysis ...................................................................................................................... 28

Marketing Strategy Budget ............................................................................................................ 29

Appendices ...................................................................................................................................... 30

Pavia beverage menu .................................................................................................................... 30

Pavia Food Menu .......................................................................................................................... 31

Antipasti ................................................................................................................................... 31

Panini ....................................................................................................................................... 31

Soup ......................................................................................................................................... 31

Waffles ..................................................................................................................................... 31

Pavia website info pop-over for coffee differentiation..................................................................... 32

Marketing Strategies Timetable ..................................................................................................... 33

Follow-up post marketing strategy implementation evaluation survey ............................................. 34

Bibliography: .................................................................................................................................... 38


of 38

Executive Summary

The following market plan has been prepared for Pavia Gallery ~ Espresso Bar & Café.

This plan will take the reader through the many various aspects of marketing. Pavia Gallery ~

Espresso Bar and Café has been deeply engaged in its venture now for over a year and a half and

this is proof in and of itself that it they’re business is not only viable, but successful as well. This

plan has reviewed Pavia’s current marketing efforts in terms of product, price, promotion, place,

and service. Overall, based on research and customer input, we have found that Pavia is a strong

company in the coffee and espresso industry not only within its local community of Herring

Cove, but within the Halifax Regional Municipality as a whole. While Pavia’s prices are

somewhat higher priced compared to some of its competitors, Pavia excels in both quality and

service offerings available to their target market. Initial analysis indicated that Pavia’s location

may be an issue since Pavia is located approximately twelve kilometers outside of Halifax.

However, many other coffee and espresso bars are also located outside of Halifax as well such as

Dartmouth & Bedford. Upon further research and analysis, we have discovered that many

customers find it “worth the distance to travel” if they feel the product offerings excel in quality

and service. The major area that we have focused on in the marketing mix is promotion. Pavia

has a number of options for promotion and expansion which we have explored in more detail

within the following marketing plan. Our goal is to provide Pavia with options that will allow

growth and expansion in the coffee and espresso industry within the Halifax Regional

Municipality (HRM).


of 38

Company Description & Mission Statement

Company Description:

Pavia Gallery ~ Espresso Bar & Café are coffee specialists, creating liquid art in a cup.

Pavia is essentially a combination of two businesses into “one”, an art gallery, and an espresso

bar and café. This combination serves both components of the partnership very well, as

customers of the art gallery can enjoy a freshly brewed espresso while viewing the assortment of

art on the walls of the Café. Alternatively, the Espresso bar and Café customers get to take in

some really fantastically presented art on the walls of the café while enjoying their fresh brew.

Pavia serves up three blends of its own, exclusive and locally roasted drip coffee as well as

espresso imported from Italy and related specialty coffee beverages. Pavia also offers a menu

that involves Panini’s, anti-pesto, waffles and a wide variety of Dolce (sweets). There are coffee

related merchandise for sale such as roasted coffee, mugs and tea offerings. Pavia is located

approx. 15 minutes outside of Halifax at 955 Herring Cove Road, Herring Cove, Nova Scotia.

Company History:

Pavia Gallery ~ Espresso Bar and Café has been in operation since September of 2011

and is a partnership between Mr. Christopher Webb, a graduate of St. Mary’s University with a

political science degree, and Ms. Victoria Foulger. After a brief stint as a human resources

consultant working for the government of Nova Scotia, Chris realized that his true passion was to

be an artist. Christopher travelled to Italy where he spent a year living in Calabria, followed by

another eight months in Florence. Christopher has committed himself to pursuing his artistic

passions since his return from Italy.


of 38

Mission statement:

Pavia is not only an art gallery, but a European espresso bar and café with an Italian theme, and

pleasantly crafted ambience. We strive to satisfy our customers by providing the highest quality

products and services and ultimately providing a taste of Italy, prepared by with a Barista’s

touch.


of 38

Situation Analysis

Coffee, espresso and latte offerings are becoming very popular these days across a variety

of organizations because of the realization of the profit margins involved in the industry. The

espresso and specialty coffee market was once dominated by a small number of establishments

within the HRM. Today we see organizations like McDonalds spending billions to penetrate the

Canadian specialty coffee market. Organizations like Pavia need to realize the need to

differentiate their product and service offerings from that of their competition. Higher quality

ingredients, fair-trade, imported espresso from Italy, and in-house bakeries are just some of the

ways Pavia can differentiate themselves from the ever expanding market offerings of their

competition.

The quick service coffee market in Canada is currently estimated at $3 billion and

continues to grow. In 2010, Canadians consumed 1.5 billion cups of coffee from

quick service establishments. (Agriculture and Agri-Food Canada, 2011)

Coffee is the most popular hot beverage in Canada with a total of 14 billion cups

consumed annually. An estimated 64% of Canadians drink coffee each day, which

is equivalent to 6.8 kilograms of green coffee or 12.7 pounds of roasted coffee per

capita, with 86% of adult coffee drinkers consuming the beverage in the morning

or for breakfast. (Agriculture and Agri-Food Canada, 2011)

The rise in away-from-home consumption has led to coffee and tea being sold not

only in the quick service market but also at more upscale foodservice

establishments as seen by the emergence of independent upscale cafés. The

consumer demand for luxury has subsequently led to the rise in barista culture and


of 38

use of specialized equipment to create that perfect personalized luxury drink, with

particular emphasis on using local, high quality, and gourmet ingredients.

(Agriculture and Agri-Food Canada, 2011)

The coffee market is segmented into:

- Coffee drinkers (those who normally only drink drip brewed coffee)

- Personalized, Luxury coffee product drinkers (those who normally like to partake in the

finer coffee products like espresso, cappuccinos and lattes)

- Those that enjoy a combination of both drip coffee and specialty coffee beverages

Pavia was established in September of 2011 by business partners Christopher Webb, and

Victoria Foulger. Christopher, a graduate of Mount St. Vincent University, is an accomplished

artist and in 2006 was named the President of Visual Arts Nova Scotia in 2006. Currently

Christopher is the curator at Pavia Gallery but shares an equal responsibility with running the

Café with his partner, Victoria Foulger.

Pavia’s Espresso Bar & Café, is a European / Italian style espresso Bar that offers a fairly

small but tasty selection of menu items that they strive to make exceptionally well by sourcing as

many local, fresh ingredients as possible. Pavia also has an on-site bakery, as well as a full time

bakery.

Pavia uses its own excusive brand of locally roasted coffee blends for its drip offerings

but even more impressive are Pavia’s exclusively imported espresso from a micro-roastery in

Florence, Italy. Pavia is not only the only North American Café to import espresso from Italy,

but received barista training from the Scuola di Caffe in Florence as well.


of 38

Pavia is located approximately 15 minutes outside of downtown Halifax and truly feels

that the extremely high quality of its offerings are “worth the drive” to Herring Cove for at least

some of its current target market.

Pavia is located Exclusively in Herring Cove, Nova Scotia. Because of this location,

Pavia is one of the only locations that many Herring Cove and Ketch Harbor residents can go to

enjoy a cup of fresh coffee with only one other food and beverage competitor in the immediate

area (Now We’re Cookin). Pavia effectively captures the market within this small, quaint

community as well as from other nearby communities such as Ketch Harbour during their

morning commute into downtown Halifax.

Pavia has differentiated their offerings from that of their main competitors by offering

exclusive products and features that their target market not only wants and appreciates, but truly

values. These exclusive offerings, combined with selective distribution and their highly skilled

barista staff give Pavia an exclusive edge over their competition. Is McDonalds or Tim Hortons

going to brew you an espresso with beans imported from Italy? Will it be done with the specialist

touch of a Barista? What about the décor and ambience? Do the big three competitors compare at

all?


of 38

Technological:

As with everything else these days, the internet seems to be the way more and more

people are becoming aware of new product and service offerings in their local area. The use of

social media has given the coffee industry a new way of offering more information about the

level of quality and service their organization can offer to their target market, but also allow

them to actively engage with their target market and promote their products and services.

Home brewing is becoming very popular during the downturn in the recession – who

hasn’t heard of brands like Tassimo® or Keurig® these days? In fact, Tim Hortons has begun to

penetrate the home brew market by offering its brand to the Tassimo® market. On average, the

cost of using these two major home brewing machines is roughly half the price compared to

purchasing coffee products outside the home.

Health:

For the most part, Canadians enjoy coffee products on a daily basis. For a lot of us its

part of our morning routine – used to help us “get going” for the day. For others, it can be an

after-meal treat in the afternoon or evening.

The important thing is that coffee is not something Canadians should never feel guilty

about consuming. It’s been scientifically proven that coffee products are not only safe to

consume, but actually contain preventative qualities that protect against various diseases such as

Diabetes, Parkinson’s disease and Cancer.


of 38

SWOT Analysis

STRENGTHS

The only coffee business within 12 minutes of community

Loyal local customer base

Good variety of coffee & tea related

merchandise available on-site

Friendly staff

Professional trained barista service

High quality, local ingredients are

sourced for most menu items

In-house bakery

Professional baker on staff

Visually pleasing Italian ambience

Website is up to date

Good social media engagement on

Facebook

Roasted coffee beans available

exclusively to Pavia (own brand)

Espresso imported exclusively by

Pavia from Italy

WEAKNESSES

Current location is not ideal for tapping the Halifax market

Does not offer any coupons

Does not offer any discounts

Does not offer any contests

Food pricing is set marginally

high

Poor use of roadside signage

OPPORTUNITIES

Penetrate new markets by opening a

second, new location in Halifax

Larger potential customer base in

nearby Halifax

Initiate a customer loyalty program to

reward repeat customers

Offer coupons, discounts or reduced

prices on food menu items

Implement a Customer Relationship

Management system

Growing other market segments

Utilize existing roadside signage to advertise possible contests, coupons or

discounts etc.

THREATS

Tim Hortons – (7.9 km)

McDonalds – (6.5 km)

Starbucks – (13.2)

The Smiling Goat – (13.4 km)

All other Coffee / Espresso shops within Halifax (Approx.

13 km)

Possible increasing costs to import espresso from Italy

If coffee prices should rise drastically worldwide for any

reason

Home brewing systems like

“Keurig®” and “Tassimo®”


of 38

Strengths:

Pavia - the only locally available retail coffee establishment available to the ketch harbour and

Herring Cove community and 6.5 km’s from the nearest competitor - has been brewing coffee

and espresso in the Herring Cove community now for over a year and a half. During this time

they have developed a loyal customer base both in the Herring Cove Community, as well as the

HRM. Pavia offers three different brands of its own organic, fair-trade and locally roasted coffee

(Pilot Boat, Peruvian & Italian). Pavia also boasts an exclusive blend of Mokaflor espresso

that’s exclusively imported from Italy by Pavia – the only company in North America to do so.

Pavia’s serving staff is professionally trained baristas which equates to a much higher level of

quality you just won’t find at all but one of their competitors (The Smiling Goat). Pavia also

employs its own world-class baker in their own in-house bakery which means its Dolce (Sweets)

and bread products are composed of both locally sourced and fresh ingredients, and baked to

comply with Pavia’s high quality standards as well. Not only high quality coffee and espresso

offerings, Pavia offers a wide variety of Dolce (sweets) on its menu. Mugs, etc. Pavia.

Currently there is good use of Social Media engagement on Facebook – where customers are

asked to contribute to new ideas for Panini’s.

Weaknesses:

Pavia is located approximately 12 kilometers from downtown Halifax. While this

location serves its purpose in garnishing the entire target market within the Ketch Harbour and

Herring Cove communities, for the most part it does not capitalize on the huge market available

in nearby Halifax. Pavia’s website, while for the most part is up to date and looks quite

professional, it’s organization and presentation of the two components that make up the one


of 38

business could be better and it definitely is lacking in both Search Engine Optimization (SEO)

and Search Engine Friendly (SEF) techniques that would ensure that the site is not only more

readily found on Google, but other prominent features of Pavia are also being discovered by

possible customers. For example, a potential customer within the HRM searches Google for

Dolce, or Imported Espresso – currently, they will not be found on Google for these types of

specific searches.is very out-dated and needs a lot of work to attract new customers and bring

regular customers back to the website. Currently, Pavia does not offer any Coupons, discounts,

promotions or contests at this time to promote its products and services. Pavia’s food menu

seems to be set marginally on the high side and should perhaps be lowered somewhat to increase

sales. Pavia has existing roadside signage that doesn’t capitalize on driving awareness or sales,

but simply states: “join us for lunch or coffee” (changeable lettering signage below main logo)

on a permanent wooden structure.

Opportunities:

Pavia has a lot of opportunities that can help them grow as a business. First and foremost,

Pavia should consider opening a second location within downtown Halifax in order to penetrate

the higher market share of their segment that’s available there. Pavia should also implement a

Customer Relationship Management system in order to effectively offer their customers more

value, and ultimately a loyalty rewards program. Other opportunities exist for Pavia if they

could grow their other market segments like the espresso and coffee specialties, as well as

increasing sales of their dolce offerings through promotional incentives. Exciting opportunities

also exist within the realm of Social Media contests on Facebook involving “like, comment and

share” tactics that could potentially drive brand awareness for Pavia viral.


of 38

Threats:

Pavia has a variety of threatening competition to deal with – we like to call some of them

the “Big Three” – which are composed of McDonalds, Tim Hortons and Starbucks. Although

there are many other coffee and espresso establishments in the Halifax area, Pavia is located far

enough away that we felt we should choose the most “prominent” of competitors from Halifax –

“The Smiling Goat” – and organic Espresso bar and café very conveniently located on South

Park Street, by the Lord Nelson Hotel, across the street from the Halifax Public Gardens, and

almost right on top of the famous “Spring Garden Road” hotspot. The other obvious threats to

Pavia include issues with Coffee production worldwide, or more specifically in Italy – which

could be cause by crazy weather or other unforeseen conditions. Finally, one of the largest

competitors is that of the touted “Tassimo” and “Keurig” home brewing machines that claim to

make a dam fine espresso. These machines are becoming more and more popular, especially

during the latest recession we find ourselves slowly recovering from.


of 38

Competitor Analysis

Business

Coffee

*Price

Espresso

*Price

Panini

Price

Promotion

Ambiance

Level

Service

Quality

Level

Location

Convenience

( 1 – 10 )

Pavia

$1.65 $2.25 $8

None

High High 4

Smiling Goat

$2.10 $3.65 $N/A

Word of

the Day

Promo

High High 6

Starbucks

$2.47 $2.82 $5.69 Repeat

customer incentive

Medium Medium 7

Tim

Hortons

$1.73 $1.20 $6.08 Roll Up the

Rim

Low Medium 10

McDonalds

$1.60 $1.69 $N/A

Loyalty

card &

More

Low Low 7

* Coffee price is for a “medium” size cup (10oz) * Espresso – Double shot


of 38

Price:

Coffee & Espresso Pricing:

Pavia’s pricing for its coffee and espresso offerings sit between that of McDonalds and

Starbucks. It’s important to keep in mind however that Pavia’s coffee products are world class

in comparison. Pavia’s product offerings are of the highest quality, and have been evaluated as

excellent by its target market. Pavia’s quality level is extremely high for several reasons; Pavia

boasts its own brand of roasted coffee beans, imports it’s espresso from Italy and has trained

baristas and a own world-class baker on staff.

Panini Pricing:

In terms of size, quality and taste, Pavia’s Panini’s are in a class all of their own. Not all

of Pavia’s competitors even offer Panini’s. Those that do fall short in several areas with the most

important being taste. Not only are the competition’s Panini’s ingredients not very fresh, they

are also not made from locally sourced ingredients. Pavia’s Panini’s are also made on bread

that’s baked in-house by their world class in-house baker (unlike the competition).

Roasted Coffee Pricing:

Pavia offers three blends of its own brand, fair-trade & organic drip coffee that are

actually roasted locally, and available exclusively to them. Very few of Pavia’s competitor’s

actually sell coffee beans / grinds. Pavia’s pricing is at par with that of Starbucks, but their beans

are not considered organic and are not fair-trade. Tim Hortons, while selling a fairly high quality

non-organic and non- fair-trade blend, also doesn’t come close to the quality level of Pavia’s

Organic offerings.


of 38

Promotion:

Pavia is currently not implementing any promotions at this time.

Smiling goat had a word of the day promotion; if you go onto their Facebook page they post a

word of the day and the first person to come to the shop and tell them gets a free coffee. This

promotion is very effective it brings consumers in to the shop by offering their Facebook friends

a free coffee. Another promotion smiling goat is doing is on their twitter page they are offering a

limited of free movie passes for the premier of Rob Stewart's Revolution. This is attracting their

twitter friends; they use social media promotions very effectively. During Halloween Smiling

Goat offers pumpkin lattes. This is a great promotion for the month of October, since Halloween

has to do with pumpkins why not get your customers in the holiday mood by selling pumpkin

lattes.

Starbucks has many promotions going on such as Starbucks Canada: Save 15% on Your

Online Order *Promo Code*. This promotion is directed to the online market, Starbucks seems

to be targeting online consumer by offering discounts this will increase brand and company

equity as well as increase online sales. One of Starbucks most successful promotions was Get

any Handcrafted Drink for $2 after 2pm With Your Morning Receipt. This would bring

customers back because it is saving customer’s money on purchases of a handcrafted drink and if

giving the customer rewards for their first purchase.

Roll up the Rim is known nationally it is Tim Horton’s most successful promotion and

brings in so much business to Tim Hortons. Even if you don’t like coffee people will purchase

the coffee just for the roll up the rim. They do this during the spring because it gets consumers


of 38

drinking a hot substance during the hot weather and they are hoping consumers will continue to

purchase coffee during the summer because of the addiction their coffee has on people.

McDonalds does different promotions such as the free coffee during the same time as

Tim Hortons roll up the rim this is competitive war between all coffee shops during the months

of February and March. They also post different promotions on the McDonald’s Canada

Facebook page, for example get a small McCafé specialty coffee for only a dollar from

November 29th until December 9th at participating locations. McDonalds is trying to steal Tim

Hortons customers by offering promotions during the same time also they offer there coffee a

lower price than Tim Hortons. This is a low pricing strategy they are using, they are hoping

consumers will see that there coffee is lower than Tim Hortons and because of this buy

McDonalds coffee

Ambience Level:

The décor in Pavia is a stylish black and white theme. The space is used effectively with many

tables and beautiful pieces of art to look at while you have a delicious meal or drink.

The ambiance in Tim Hortons is normal nothing really spectacular about it although they have

free Wi-Fi now inside. This is a way Tim Hortons is trying to attract and bring customers inside

by providing them with free Wi-Fi.

The inside of smiling goat is very small, cluttered, no real theme to the shop overall it is an

average coffee shop.

The atmosphere in Starbucks is wonderful, lots of comfy chairs, counter space to put your laptop

and school work on. No real theme again but it seems by providing Wi-Fi, comfy chairs, lots of


of 38

seating these are ways they are trying to keep the customer inside it also is a place for students to

go to study. Quiet, relaxed atmosphere for students is Starbucks selling point when talking about

ambiance.

McDonald’s interior is a large area, a place for you to take your child (playpen). No real design

they have been putting in fireplaces, free Wi-Fi, TV’s, and comfy chairs. It seems like they are

trying to create a place that families can go to by providing these incentives for the customer.

All of these have factors that influence your decision on why do customers come to your

business, each business is trying to target a different demographic so when comparing them it is

very hard to decide which one has the best ambiance. We believe Pavia and Starbucks have the

best décor.

Service Quality level:

The high service level available at Pavia sits at par, if not

above that you would find at the Smiling Goat. Service has also

been evaluated as excellent by Pavia’s Target Market. Not only are

Pavia’s staff trained baristas, they have a deep understanding and

care for their customers. Christopher Webb, the curator of the on-

site gallery at Pavia would love to take a few moments to familiarize

his customers with the various pieces of art on display at any given

time at Pavia.


of 38

Location:

Location does prove somewhat of an issue for Pavia’s HRM based customers in relation

to its competitors. Many of Pavia’s competition has multiple locations within downtown HRM,

with Pavia’s main competitor (The Smiling Goat) having an ideal location on Park St. in

Downtown Halifax. However, Pavia’s target market has indicated that “The difference in quality

is worth the distance it takes to visit”, with Pavia being located a mere 15 minutes outside of

Halifax in the rural community of Herring Cove, Nova Scotia

Marketing Objectives

To achieve a minimum brand awareness level of 80 percent amongst target market

residents in Herring Cove, Ketch Harbor, and Halifax residents.

To motivate at least 30% of the defined target market to try the product on the basis of

differentiating the product from its competitors (Tim Horton’s/McDonalds)

Encourage at least 25% of the defined market to repeat purchase Pavia’s baked products

through promotional incentives.


of 38

Target Market

Our target market is broadly defined as “male and female coffee, espresso or specialty coffee

drinkers; between the ages of 18 and 64 living in the communities of Ketch Harbour, Herring

Cove and Halifax that want exceptional quality and service going into their brew”. This broad

definition of our target market is required because there are so many variables from one coffee

lover to the next involving very wide ranges of lifestyles, income levels or occupations. Almost

everyone enjoys a cup of java in the morning.

Based on Canadian census statistical data, Herring Cove’s population’s income is higher

on average than the rest of Nova Scotia. This would indicate that Pavia’s broad coffee drinking

target market, as previously described would also tend to have more disposable income for

luxury beverage purchases for the most part.

“Based on the 2011 Census of Population, Herring Cove has a population of 2,734 which

is 0.4% lower than in 2001.” and, “In 2006, the average income for individuals in Herring Cove

was $35,194 a year, compared with the average of $31,795 for Nova Scotia. Families in Herring

Cove had an average income of $72,053, compared with the average of $66,032 for Nova

Scotia.” (Statistics Canada, Census of Population - 2001, 2006,2011)


of 38

Positioning Statement

We want consumers to view Pavia more than just a coffee house. Pavia is a place where friends,

family, and artists can go to enjoy themselves whether you’re a coffee drinker or love Italian

food. Pavia provides top quality service and top quality products that are accompanied with a

comforting and relaxing atmosphere surrounded by beautiful pieces of art. Pavia is a place

people can go to take a break from their busy work schedule and just unwind, even if it’s just for

a moment. Everyone needs a little piece of Italy in their everyday lives.

Marketing Mix

Pavia has indicated that their marketing budget is zero dollars. Because of this, we have made

three major marketing strategy recommendations that involve various guerrilla marketing

techniques that should cost very little if anything above their budget.

Promotional Strategy

Pavia has decided not to run any kinds of promotions to date, however we recommend that Pavia

implement the following tactic to assist in increasing brand awareness:

Create a contest on Pavia’s Facebook page that offers a four course romantic dinner for two as a

giveaway each at the end of each month. In order to become eligible to win, participants must

first visit Pavia’s Facebook page and like it. Following this action, participants must then like,

comment on and share the contest details that will be posted on the page. Comments will be

used to engage with participants by asking them to relate to their favorite types of specialty

coffees or sweets. Winners will be randomly selected at the end of each month, for the entire six


of 38

months that the contest will run (July 1st – December 31st). This method of guerrilla marketing

should increase Pavia’s equity. Facebook contests of this type are becoming quite common these

days, and actually have a high potential to “go viral” throughout a participants entire network of

“friends”, as well as “reaching” throughout their friends networks as well.

- Revamp the webpage, make it more organized and easy for visitors to utilize

Product

Ideally we would like to position Pavia as a premium cafe in the Halifax Regional

Municipality – who not only creates high quality espresso and other coffee specialty drinks, but

high quality dolce as well. Pavia’s espresso is imported exclusively into North America from a

micro-roaster in Florentine Italy.

Pavia sells three types of organic drip coffee,

1) The Pilot Boat Fair-Trade Organic Blend is a vibrant medium roast coffee. A blend of 3 beans

– Guatemalan, Mexican and Ethiopian – this coffee is very flavourful with a pleasing finish.

2) The Peruvian Fair-Trade Organic Single Origin coffee is a medium/dark roast bean. This bold

coffee is rich and smooth with very little acidity.

3) The Italian Dark Roast Mokaflor Blend is a dark roast coffee that has been blended with

Mokaflor’s ‘Gran Crema’ espresso beans. With the exception of a caramel coloured cream, this

coffee tastes like a beautiful Americano. Its flavor profile is creamy, bold and rich with very

little acidity. Drawing on the dark roasted Mexican and Peruvian beans, the hint of Robusto bean

makes this a very special coffee.


of 38

Product Strategy

We recommend Pavia differentiate their higher quality products from that of their

competitors. We have developed a method of delivering information that will encourage the

target market to try Pavia’s higher quality products. We encourage Pavia partner Chris to create

three “info pop-over” graphic media for Pavia’s website that will create awareness about specific

points of quality that the target market may very well be unaware of at this time.

All of the “awareness pop-overs” will state the words: “Were you aware that…” over top

of a carefully crafted graphics – the first of which will highlight the three Pavia brands of coffee

Pavia offers, and what differentiates them from the competition. Another pop-over will highlight

the quality of the imported espresso and what makes it higher quality than most available in the

region, if not North America. The last pop-over will highlight Pavia’s world class dolce

offerings, and explain to the site visitor why their sweets are very special. The pop overs will

only appear on the main page in a random fashion, once only per initial page landing on the

website.

Here is an example of Pavia’s quality in 2011; Bill Spurr from the Halifax Chronicle

Herald awarded them with Runner-Up for Nova Scotia’s Best Dessert. Pavia takes a lot of pride

in their sweets and they bake everything fresh on site. Pavia’s signature biscuit shortbread with a

butter cream and raspberry jam filling is stamped with the ‘Giglio di Firenze’. These products

are of the highest quality, and maintain Pavia’s image. This is exactly why we believe that

touting Pavia’s high quality offerings in bold, informative ways on the website. Please refer to

the appendices “Pavia website info pop-over for coffee differentiation” for a graphical representation

of an informational pop-over.


of 38

Price Strategy

Pavia’s food products (Panini’s and dolce) are priced considerably higher than that of their

competitors due to higher quality, locally sourced ingredients. Pavia coffee and specialty

beverage prices are generally lower than their competitions.

We recommend the implementation of a value strategy that would highlight more sales

for Pavia’s dolce (sweets). When a customer purchases a dolce product, they are given a “dolce

loyalty card” which is then stamped according to how many dolce products are purchased. Once

a customer has accrued 6 stamps on their loyalty card, they will then be entitled to purchase their

next dolce product for half price. The intention of this strategy is to encourage repeat purchases

of Pavia’s baked product line. This strategy will be put in place initially for six months. After

the six months, financials and unit data will be evaluated and measured to determine if the set

objective was met or exceeded. If met or exceeded, we recommend the loyalty card program

continue indefinitely pending the outcome of future evaluations.


of 38

Implementation, Evaluation, and Control

There will be three different responsibilities for Pavia employees to implement. These

responsibilities will for the most part Chris and Victoria’s responsibility. Social mediator

responsibilities will be looked after by both Chris and Victoria in the evenings and during slow

times throughout the work day at Pavia. Chris would be responsible for the possible re-vamping

of the website and its organization – but more importantly utilizing his artistic skills to

graphically design the info-pop-over’s to be implemented on initial website page loads.

Chris, who is also currently Pavia’s webmaster – will also look after implementing the

info-popover’s as well as measuring website statistics through Google Analytics. Victoria would

be responsible for ordering the initial stock of loyalty cards (that Chris designs) and the entire

staff will be responsible for implementing them as customers purchase dolce, by stamping their

loyalty cards, as well as providing the reward of a sixth dolce item for half price.

The time we believe that it will take Pavia to begin to implement these responsibilities

would be; two weeks for the Facebook social media contest implementations and three weeks for

the dolce loyalty card implementation. The website pop-over design will take approximately one

week to complete, and implementation on the website could then start immediately.

We recommend that Pavia begin creative at this point in time, and have all materials and

creative finished well before July 1st, 2013. The above implementations will run for the stated 6

months until the end of the year, December 31st. During the first two weeks of 2014, Chris will

administer a follow-up evaluation survey to measure the effectiveness of our marketing strategy

recommendations. Pending the outcome of this survey (found in appendices), the dolce loyalty

card may either be continued or discontinued. The info pop-overs will continue on indefinitely.


of 38

Task Responsibility Time Frame Cost Administer Facebook social media contest

Chris and Victoria Six months duration - starting on July 1st

and ending on December 31st.

Zero – Cost of opportunity as both

Chris and / or Victoria will be responsible for administering the

contest on Facebook (time).

Draw for and inform

winner of Facebook social media contest

Chris or Victoria At the end of each

month, for six months duration starting on July 1st and ending on

December 31st for a total of six draws.

Zero – Cost of

opportunity as both Chris and / or Victoria will be responsible for

administering the contest on Facebook

(time). *Costs for six draws prizes will be discussed in

financials.

Design & implement website product

information popovers

Chris Ongoing (more than 6 months) starting in

July

Zero – Graphic design of info-popover’s as

well as implementation can be done by Chris.

Design & implement dolce loyalty cards.

Chris, Victoria and staff

Six months duration or longer – starting in

July with tentative end date of December 31st pending outcome

of evaluation

$50 - $100 for initial order of 500 loyalty

cards and rubber stamps. *Costs for half price dolce will

be discussed in financials.

Administer marketing

plan effectiveness evaluation survey

Chris January 1st – 14th,

2014 exclusively

Zero

We also recommend that Pavia monitor the performance of the marketing plan by

carefully studying of Google Analytics – having also been employed on the website in order to

analyze traffic to the site, as well as utilizing statistics from Facebook insights in regards to the

brand awareness campaign contest.


of 38

Marketing Strategy Events

Task July August September October November December January

Administer Facebook social media contest

Draw for and inform winner of Facebook social media contest

Implement website product information popovers

Ongoing ->

Implement dolce loyalty cards.

Evaluate Effectivenes

s

Administer marketing plan effectiveness evaluation survey


of 38

Financial Data and Sales Projections

Break-even Analysis

Pavia is operating within the coffee and beverage industry, which is capable of supporting high gross margins. Fixed costs for Pavia are estimated to be approximately $4,700 / month. Fixed costs include: payment of debt (mortgage on property, utilities, wages and other costs Pavia has to maintain on a monthly basis. As these costs are fixed, they are not affected by an increase or a

decrease in sales.

Currently, according to our estimated fixed costs, Pavia should break even with a monthly sales point of 2,350 units.

Breakeven Analysis

Pavia Gallery ~ Espresso Bar and Café

Assumptions Fixed Cost Assumption $4,700

Variable Cost Assumption $0.25

Number of Units 1,000.00 Unit Price $2.25

Units Revenue

Fixed

Costs

Variable

Costs

Total

Costs

Total

Profit

0.00 $0 $4,700 $0 $4,700 $(4,700)

1,000.00 $2,250 $4,700 $250 $4,950 $(2,700)

2,000.00 $4,500 $4,700 $500 $5,200 $(700)

3,000.00 $6,750 $4,700 $750 $5,450 $1,300

4,000.00 $9,000 $4,700 $1,000 $5,700 $3,300

5,000.00 $11,250 $4,700 $1,250 $5,950 $5,300

6,000.00 $13,500 $4,700 $1,500 $6,200 $7,300

7,000.00 $15,750 $4,700 $1,750 $6,450 $9,300

8,000.00 $18,000 $4,700 $2,000 $6,700 $11,300

9,000.00 $20,250 $4,700 $2,250 $6,950 $13,300

10,000.00 $22,500 $4,700 $2,500 $7,200 $15,300

11,000.00 $24,750 $4,700 $2,750 $7,450 $17,300

12,000.00 $27,000 $4,700 $3,000 $7,700 $19,300

13,000.00 $29,250 $4,700 $3,250 $7,950 $21,300

14,000.00 $31,500 $4,700 $3,500 $8,200 $23,300

15,000.00 $33,750 $4,700 $3,750 $8,450 $25,300

16,000.00 $36,000 $4,700 $4,000 $8,700 $27,300

Espresso product break even chart


of 38

Marketing Strategy Budget

Pavia has an available budget of zero dollars for its marketing plan. We have decided to

implement guerrilla marketing techniques as a result. Our brand awareness orientated social

media contest on Facebook will cost nothing to administer, and we have estimated the total cost

for the size prizes of a four course dinner for two to be $180 ($15pp x 2) x (6).

Implementing the website information pop-overs will be assigned to the company artist,

Christopher Web. This will only cost Chris his time. As Chris is also the company webmaster,

implementing the popovers to Pavia’s site will also cost nothing.

Implementing the dolce loyalty cards will cost approximately $50 - $100 per 500 cards

(printing costs and rubber stamps). The biggest cost involved with the dolce loyalty card

promotion is in offering every sixth dolce product at half price. It is hard to estimate what this

will cost at this time, but it will involve a calculation of the average dolce cost, divided by two

multiplied by the number of completed loyalty cards redeemed. We recommend per the strategy

timeline chart, that this strategy be evaluated in January, after running the promotion for a period

of six months.


of 38

Appendices

Pavia beverage menu


of 38

Pavia Food Menu

Antipasti

Antipasti Plate Vegetarian 7.95 ~ / With Meat8.95 ~

This Italian inspiration includes crostini, assorted cheeses and cured meats.

Panini

Caprese 8 ~

Fresh mozzarella layered with locally grown tomatoes and fresh basil which is then drizzled with extra virgin olive oil. An Italian classic.

The Pavia 8 ~

Feta cheese, green manzanilla olives, then lightly covered with The Tangled Garden’s pepper garlic jelly. A slightly spicy panino

that is sure to please.

Quattro Stagioni 8 ~

Seasonal grilled vegetables sautéed in balsamic vinegar, goat’s cheese and locally grown spinach. Experience the four seasons of

Pavia.

All’ Amantea 9 ~

Italian prosciutto, fresh mozzarella layered with green olives and then drizzled with extra virgin olive oil. A true taste of Italy.

Nuova Scotia 9 ~

Ham with an aged cheddar cheese, then lightly covered with Tangled Garden’s basil wine jelly. An Italian twist with a local

flair.

Panino Sociale 9 ~

Created by our Facebook fans, join our Facebook Page and have your say on our latest creation.

Soup

Soup Cup 4.75 ~ / Bowl 6.95 ~

Made on site, we use local, fresh and organic ingredients where possible. Always wheat free, meat free and dairy free. Some of

our favourites include: Tomato Basil with a dollop of Goat’s Cheese and Pesto, and Sweet Potato, Lime & Ginger.

Waffles

Waffles (at the weekend) 10.50 ~

Made fresh to order every Saturday & Sunday from 9am to 3pm (or until we run out). Belgian inspired waffles served with

Pavia’s fruit compote, whipped cream and Nova Scotia maple syrup.


of 38

Pavia website info pop-over for coffee differentiation


of 38

Marketing

Strategies

Timetable

Marketing Strategy Events

Task July August September October November December January

Administer Facebook social media contest

Draw for and inform winner of Facebook social media contest

Implement website product information popovers

Ongoing ->

Implement dolce loyalty cards.

Evaluate Effectivenes

s

Administer marketing plan effectiveness evaluation survey


of 38

Follow-up post marketing strategy implementation evaluation survey


of 38


of 38

Bibliography:

Agriculture and Agri-Food Canada. (2011, 10). Coffee and Tea Industry Trends from the Canadian Coffee

and Tea Show. Retrieved from Agri-Food Trade Service: http://www.ats-sea.agr.gc.ca/eve/6060-

eng.htm

Statistics Canada, Census of Population - 2001, 2006,2011. (n.d.). Nova Scotia Community Counts.

Retrieved from Government of Nova Scotia:

http://www.gov.ns.ca/finance/communitycounts/profiles/community/default.asp?gnew=&tabl

e=&acctype=0&chartid=&mapid=&dcol=&sub=&ptype=geo&tid=&gview=2&glevel=com&gnum=

com910&gnum2=com910&yearid=2006

paviacafe-marketingplan-final

Documents

Transcript of paviacafe-marketingplan-final