Marketing Plan for Tech Start-up

MBA 661-D2A2 MARKETING MANAGEMENT COFFEE RUN – MARKETING PLAN

MARKETING MARVELS

Jodi Boltz

Lori Granich

Krista Hudalla

Stephanie Rozman

Francis Ukpolo

A. Executive Summary

! Coffee Run is a mobile application that will allow users to order coffee and other coffee house items with just a click of the button.

! Coffee Run will target men and women between the ages of 25-40 that are centrally located in urban areas

! We will advertise through all social media outlets such as Facebook, Twitter, and Pinterest

! Our projected sales for the first year are $150,000. We are projecting an 8% increase by the fourth quarter of 2014

B. Product Introduction, Description, and Target Market ! Mission Statement: Our mission is to provide coffee

drinkers a quick, smart and innovative way of ordering from their favorite coffee shops through our mobile application. We are driven by creativity and technology solutions that enhance the daily lives of our customers.

! Coffee Run is a mobile application that allows consumers to order coffee and other beverages within their surrounding areas. ! “Quickest way to get coffee on the go”

B. Product Introduction, Description, and Target Market cont’d. ! Coffee run will allow consumers to preorder their coffee

before arriving at the café, even during non-business hours. ! Reward program will also be available, allowing consumers

to possibly win a free cup of coffee ! Eliminates the need for consumers to wait in line and locate

café’s no matter their current location. ! It will include a full menu, nutritional values, order history,

gift options, and the option to share your order with your friends through social media outlets.

! It is a free download that will be available on Apple devices.

B. Product Introduction, Description, and Target Market cont’d.

! Working class/middle class consumers are the intended target market. ! This includes men and women in urban areas between

the ages of 25-40, with a college degree, earning at least 40,000/year.

C. Strategic Initiatives (Goals)

! Create a customer base & sell existing products to current & future clients within QTR 2- FY2013

! Broaden our customer database by obtaining new information on customer characteristics & needs by QTR 2-FY2013

! Increase our efficiencies by 5% with app technology and possibilities by continuing our education on current trends

C. Strategic Initiatives (Goals)

! Sell advertising spots to increase kick backs from coffee apps by 5% to cover initial start-up costs (Short-term)

! Increase revenue by 8% by the QTR 4 FY2014 (long-term)

D. SWOT Analysis & Competition

Strengths

! Convenience of ordering coffee with a touch of a button

! Can choose various locations to pick from ! Track customer orders for analysis ! Starbucks and Dunkin Donuts


Weaknesses

! Brand new app, none of its kind ! Hard to determine how much staff needed at the

beginning ! Some people scared of change or technology ! Updates and enhancements regularly


Opportunities

!   Brand growth through discounts for frequent customers

!  Apple distribution through I-tunes.

!   Introduce app to other coffee vendors such as gas and train stations

!  Growth through mobile advertising

!  Customer upgrades that will offer value-added products


Threats

!   Low barriers to entry

!  High threat of substitutions

!   Buyers possess high bargaining power

!  Decreased consumer spending !   Possible short-term fad


Competition

! Starbucks – the largest coffeehouse company in the world ! Starbucks app allows customers to earn rewards, reload the card’s

balance, get directions, explore coffees, beverages, food and nutritional information, enjoy Pick of the Week songs, send eGifts to contacts, and stay informed of special offers

! Dunkin’ Donuts – an American global doughnut company and coffeehouse chain ! DD’s app features include card gifting, store location, menu and

nutrition information, mobile offers and gift giving through text, e-mail or Facebook

! Local Mom and Pop coffee shop – cater to the local clientele and are simpler in their approach to beverages offered

E. Strategies/Tactics

Media Vehicles ! Facebook ! Twitter ! LinkedIn ! Pinterest

! Advertise affordable Coffee Run App ! $1.99

F. Marketing Program (Marketing Mix)

! Product/Service – mobile application available on Apple devices

! Place – download the app from iTunes or the Apple App Store

! Price – free ! Promotion – Website, Brochures, Newsletters


! Coffee Run will be available to download for free on iTunes and the Apple App Store. ! An upgraded version, which allows the consumer to added

benefit of uninterrupted service, and the Reward program for a one time fee of $1.99

! Newsletters will reach out to potential consumers through emails to a mass group of contacts. ! Screenshots of the app, customer reviews, quick facts and a

download link will be included ! Incentive will be used by urging potential consumers to share

the email to win a free cup of coffee.


! QR codes will be utilized on the site and coffee sleeves to bring traffic to the website ! The consumer will scan for a chance to win coffee ! The scan will also send the consumer’s email, phone number,

and name to our database, while the consumer is directed to our site where they can download the link and learn how to use Coffee Run.


Website


Newsletter

G. Financial, Budgets, Forecasts

! Break even at 50,505 apps sold at $1.99

! A profit of $24,250 will be at 75,000 apps

! $.50 received per advertisements for free apps and $.50 per sale from coffee house

Break Even Analysis


! Brochures

! Electronic Newsletter

! Website

Expense Forecast


! $150,000 in revenue projected in first quarter

! Project 8% increase in revenue in the 8th quarter

Sales Forecast


0%

20%

40%

60%

80%

100%

2013

2014

2015

increase by 10% increase by 8% projected sales

Our projected sales for the first year are $150,000. We are projecting an 8% increase by the fourth quarter of 2014. The budget for our promotional activities consist of $250 for 500 brochures, $500 for the creation and distribution of an electronic newsletter, and $1,000 for the setup, domain, and monthly fee for our website.

Projected Sales FY2013

1.  Which Smartphone (or operating system) do you currently use?

2.  Where do you look for applications to download?

3.  Generally, how much are you willing to pay for a mobile phone application?

4.  How often do you drink coffee?

5.  How many of these cups of coffee do you purchase outside of your home or office?

6.  When you purchase coffee outside the house, do you typically order food as well?

7.  Do you prefer to take your coffee “to go” as opposed to staying in the coffee shop to drink your coffee?

H. Product/Service Evaluation

Pre-Questionnaire

1.  What do you like the most about the Coffee Run app? 2.  What changes would you suggest to improve this app? 3.  Did you find our app to be user-friendly? 4.  How likely are you to use this app? 5.  If you are not likely to use this app, why not? 6.  Do you find our app more convenient than the traditional method

of ordering coffee? 7.  Overall, were you satisfied or dissatisfied with the Coffee Run

app?

H. Product/Service Evaluation

Post-test survey

Leadership & Management

Marketing Plan for Tech Start-up