Do you want to boost coffee sales? If YES, here is a sample coffee shop marketing plan template + killer marketing ideas/strategies to attract/retain customers.
Okay, so we have considered all the requirements for starting a coffee shop. We also took it further by providing an in-depth sample coffee shop business plan template. In this article, we will be analyzing and drafting a sample coffee shop marketing plan backed up by actionable guerrilla marketing ideas for food truck businesses. So put on your marketing hat and let’s proceed.
A Sample Coffee Shop Marketing Plan Template
Table of Content
- 1. Our Present Business Situation
- 2. Our Product and Services
- 3. Our Mission and Vision Statement
- 4. Our Marketing Budget
- 5. MARKET ANALYSIS
- 6. Our Target Market
- 7. SWOT Analysis
- 8. SALES AND MARKETING STRATEGY
- 9.Sales Forecast
- 10. Our Pricing Strategy
- 11. Strategic Marketing Alliance with Our Competitors in the Coffee Shop Industry
- 12. Possible Ways We Intend Offering Incentives to Our Customers / Clients (Bonus, Discounts, etc)
- 13.After Sales Service and Customer Support
1. Our Present Business Situation
Presently, Coffee4All® bar has been up and running for the past three months and the business is incorporated under the business law of the united states of America. Our coffee bar is located on the ground floor of one of the busiest airport facility in the United States of America – The Los Angeles International Airport, California we have been able to secure a one-year lease of a vacant shop within the airport’s facility. We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate.
All the employees that are needed to effectively run the business has been duly employed and trained to effectively handle their roles and help build the company. We have specifically trained our employees to handle the teeming influx of consumers everyday- this is hinged on the fact that we are located in a busy environment.
We have been able to secure all the needed equipment (Espresso machine, Coffee maker, and Coffee grinder, et al) and accessories (microwave, toasters, dishwasher, refrigerator, blender, et al) for a standard coffee café.
2. Our Product and Services
At Coffee4All®, we serve well brewed coffee in various forms to our highly respected customers. We are quite aware that people have the option of demanding the form in which they want their coffee to be served in, which is why we have taken time to research and learn the various ways coffee can be served, not just in the United States of America, but also in other parts of the world.
We do not intend to put any restriction to the types of coffee we will purchase from the open market. As a matter of fact, we have established relationships with suppliers of some of the finest coffee beans from Brazil, Turkey, Africa, and Europe.
Here are some of the products that will be available in our coffee shop / bar;
- Coffee Beverages served in different forms (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.
- Coffee Beans
3. Our Mission and Vision Statement
Our vision is to build a coffee business that will serve as a stress reliever to our customers, and at the same meet their needs when it comes to coffee.
To establish a coffee business that will serve available assorted coffee drinks to our highly valued customers 24 hours and round the clock in a relaxed and conducive atmosphere.
Our Market Goals
Our marketing goal as a coffee shop is wrapped around our company’s mission statement as clearly stated in our business plan is to establish a coffee business that will make available assorted coffee drinks to our highly esteem customers 24 hours round the clock in a relaxed and conducive atmosphere. We truly want to build a coffee business that will serve as a stress reliever to our customers, and at the same meet their needs when it comes to coffee.
In view of that, we are set out to achieve the following market goals:
- Sell a minimum of 500Cups of coffee Per Day (off peak period)
- Sell a minimum of 1000 Cups of coffee Per Day (peak period – weekends, and holidays)
- Sell 1000 Pastries (Sandwich, Bread, Meat Pie, Scotch egg, Pizza, Burger, and Fish Pie et al) per day
- Generate an annual sale of 500,000 US Dollars and thereabout increases our sales from 17.06% in the first financial year (FY) to 17.63% in the third financial year (FY)
- Increase the numbers of people that visits our coffee café by 10 percent quarterly.
What we aim to achieve from our market efforts are as follows:
- To compete favorable with the leading coffee shops (Starbucks and Costa Coffee et al) in the whole of the United States of America
- To own a coffee shop in major cities in the United States of America
- Build a self – sustaining business that will contribute towards the growth of the economy of the United States of America.
4. Our Marketing Budget
The fact that we are set to compete favorably with coffee giants such as Starbucks and Costa Coffee means that we must be willing to commit a reasonable amount towards marketing our coffee shop. In view of that, we have set aside a total of 50,000 US Dollars as our marketing budget.
Going forward, we will budget between 5 percent and 10 percent of our annual income towards marketing and promoting our coffee café. Please note that we are likely going to increase this budget when the need arises especially if we have to explore a more expensive but efficient marketing approach as directed by our marketing consultant.
5. MARKET ANALYSIS
- Industry Overview
From the recent statistics released, Starbucks and Costa Coffee are some of the leading Coffee Business Company in the world. For example, Costa Coffee™ operates about 1,755 coffee bars in the united kingdom alone and about 1,106 outlets in 30 countries of the world. Starbucks coffee house has over 21,000 coffee outlets all over the globe and as of the last count, they generated a total revenue of $16 billion and of course they are still soaring higher.
- Interesting Statistics About the Coffee Business Industry
There are different types of coffee drinks that you can find in a coffee shop, some of them are cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.
It is proven fact that the turnover for an average coffee bar can be as high as 50% and above that is why entrepreneurs who intend making good money from a business with less struggle opens their own coffee shop; they either start their own coffee bar from the scratch or buy franchise.
Despite the fact that coffee shop business has been in existence as far back as civilization started, one can conveniently state that the coffee shop industry is indeed a growing industry and several entrepreneurs all over the world are making fortunes from the business.
Just every other food and drinks related business, it is a business that does not go out of season simply because drinking coffee has become a way of life to countless numbers of people all around the world. So also the fact that people go to coffee shops to relax and network with other like minds makes the business and ever – Green business.
If you are conversant with Coffee business in the United States of America, you will quite agree that coffee consumption has shown steady growth over the years and from all indication, the growth is not going to plummet. Coffee addicts would always go out of their way if possible to stop by a coffee shop to drink a cup of coffee.
Usually, sales for coffee triples during winter season and in most cases small coffee bars struggle to meet the demand for coffees during this period. Over and above, those who run coffee shops don’t struggle to attract clients especially if they are well positioned.
6. Our Target Market
When it comes to selling coffee, there is a wide range of people who consume, coffee and we don’t intend to place restrictions on the type of customers that we intend attracting to our coffee bar. The fact that our coffee shop will be located inside Los Angeles Airport facility means that our target market can be categorized into 2 groups (Travelers and Airport Workers).
The people we intend selling our products to are;
- Corporate Executives
- Business Men and Women
- Sports Men and Women
- Government Officials
- Airport Employees
7. SWOT Analysis
Our intention of starting a coffee shop is to test run the business for a period of 3 to 5 years to know if we will invest additional money, expand the business and sell franchise which is why we are only settling with just an outlet for now.
Despite the fact that we are running a small scale coffee shop business unlike Starbucks and Cost Coffee, we still went ahead to conduct a SWOT analysis. We did this in order to ensure that we have what it takes to run a coffee shop and perhaps even build an international coffee brand like the afore mentioned brands.
Here is a summary of the result from the SWOT Analysis that was conducted on behalf of Coffee4All;
Our area of strength in Coffee4All is not limited to the location of the coffee bar and also the varieties of coffees that we serve, but also our excellent customer service and the ambience of our Coffee shop.
The perceived weakness for our business could be that we are starting on a small scale; just one outlet and perhaps because we have a limited space to expand the bar if the need arises.
The fact that we are going to be operating our coffee bar in one of the busiest airports in the whole of the United States of America provides us with unlimited opportunities to sell our coffees and pastries. We are certain that we are not going to struggle to attract customers; all we have to do is to maintain the quality of our products and also offer excellent customer services in order to continuously welcome repeated customers.
One of the threats that are likely going to confront us is the policy of the airport authority. If the airport authority decided to close down all the shops within its facility, there is hardly anything we may possibly do about it, other than to look for a shop elsewhere.
- Our competitive advantage
Going by the arrangement we met on ground, we are going to be one of the 2 coffee bars that will be in operation in the area around the airport where our coffee shop will be located. As a result, we are going to struggle less to make headway in the business. In essence, we have little or no competition.
We plan to run a standard coffee business which is why we hired one of the leading business consultants to work with us in setting up our coffee business. The business consultant we have hired has over 15 years of experience in the retail coffee industry and has successfully opened several coffee bars in major cities across the United States of America.
So far, he has been able to deliver on key areas and he will continue to work with us on market research, customer satisfaction surveys and to provide additional input into the evaluation of the new business opportunities as regard opening other outlets and selling franchises when the need arises.
We believe that with all these hard and detailed work that is being put in place, we shall no doubt be a force to reckon with when we eventually commence operation and open our doors to consumers who want to be given a run for their money.
8. SALES AND MARKETING STRATEGY
- Sources of Income
Our sources of income for Coffee4All are limited to the sales of different types of coffees and pastries. But in the future, we may likely go into the sale of franchise which is going to be an additional source of income for the company.
It is important to state that our sale forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field.
Below is the sales projection based on the location (Los Angeles International Airport) of the coffee bar and the traffic that the location attracts every day of the week:
Coffee (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al):
- 1,000 Cups of Coffee Per Day
Pastries (Sandwich, Bread, Meat Pie, Scotch egg, Pizza, Burger, and Fish Pie et al):
- 1,000 pieces per day
N.B: Please note that thousands of travelers transit through this airport every week, hence there is the likelihood of the coffee sale to increase especially when flights are delayed or cancelled and during winter periods. The idea is to attract as many people as possible to our coffee shop.
In view of this, our annual projected sales for Coffee4All® is put at about $500,000 annually which translates into $254.00 of sales per square foot. This is in line with the industry averages for this size of coffee shop in the United States of America. Over and above, as Coffee4All gets established, our net profitability will likely increases from 17.06% in the first financial year (FY) to 17.63% in the third financial year (FY).
10. Our Pricing Strategy
When it comes to fixing prices for the range of coffees and pastries we sell, we are going to ensure that we set pricing in line with what is available in the coffee industry. We are very aware that we have got to lower our price so that we will be able to attract customers like never before as we seek to gain recognition as newbies. When this is achieved, then bottom line is that our customers will derive real satisfaction when they consume our coffee and pastries
We also have plans in place to discount our coffees once in a while and also to reward our loyal customers with free cups of coffees.
Our Unique Selling Point; What Makes Our Coffee Shop Superior to Our Competitions
It is really advisable that every brand that wants to break even in their industry to have a unique selling point. This is what we have done with the way we have carved out what makes us tick. Our unique selling point as a coffee shop cannot be far fetched; we are located in one of the busiest airports in the world. That alone will give us leverage over our competitors in the industry.
Furthermore, part of our unique selling strategy is to ensure that we have assorted coffee in our coffee bar at all times. This will give our customers and potential customers the options to make their choice whenever they want to buy coffee from us.
As part of what we intend doing to outperformed our competitors and build a profitable coffee shop with loads of loyal customers, we will work towards ensuring that our coffee café is designed and constructed in such a way that it will meet the expected standard required by the authority and in such a way that it will be relaxing and conducive for networking and socializing.
We will also ensure that at all – times good music (live band, karaoke and jazz et al) will be played at the background to create the ambience that our customers will cherish while consuming their coffee in our coffee café.
Benefits Our Client Stand to Gain When They Patronize Our Coffee Bars
Aside from the fact that our customers will have the opportunity to buy neatly brewed assorted coffees, they will also have the opportunity to drink their coffee in a relaxed environment. We will ensure that we coffee beverages served in different forms (cappuccino, espresso, iced coffee, decaffeinated coffee, alcoholic coffee (Irish Coffee and Brandy Coffee et al), filtered coffee, cold brew coffee, Turkish coffee, coffee with milk, coffee or espresso with whipped cream, and flavored coffee et al.
In view of that, here are the benefits our customers and potential customer stands to benefits when they purchase our coffee from our coffee café:
- Good quality and neatly prepared coffee
- A relaxing and conducive environment for networking and socializing not ignoring the fact that at all times good music (live band, karaoke and jazz et al) will be played at the background to create the ambience that our customers will cherish.
- The best price/deal they can get in the whole of the United States of America
- Opportunity to choose from a wide range of assorted coffee
- Excellent customer service experience from our highly trained employees
11. Strategic Marketing Alliance with Our Competitors in the Coffee Shop Industry
No doubt it will be pretty difficult to enter into a strategic marketing partnership with your competitor in the coffee shop business. This is so because every coffee café you come across would want to do all they can to attract as much customers as possible within the locations where their coffee shop is located.
If at all there is any strategic marketing partnership that can be formed in the industry, it could be between a coffee café and perhaps a coffee producing company or coffee wholesale distributor.
For instance; if you own a coffee shop, you can strike a marketing partnership with a coffee producing company or coffee wholesale distributor to supply you assorted coffees and then sell to your customers before making payments. With that, you can comfortably order as much coffees as possible since you are not paying on cash.
Our Customer Retention Strategies (Ways to Improve Our Customer Experience)
When it comes to retaining your customers in any business, you must work hard to continue to meet and even surpass their expectations whenever they buy your goods and services from you. The success of any business is directly proportional to the numbers of repeated business they are able to generate.
If a company is able to achieve over 60 percent retention the company will sure experience huge turn over. We have perfected plans on how to improve our customer experience from time to time whenever they patronize our coffee café.
These are the ways we intend utilizing when it comes to improving our customer experience so that we can create a good impression and generate repeated sales from them:
- Ensures that our coffee taste good and neatly served at all times
- Ensure we get feedback from our customers at all times
- Give our customers the flexibility to choose from a wide range of assorted coffee.
- Make use of effective customer relationship management (CRM) software to effectively manage our clientele base.
- Ensures that we carry our clients along when making decisions that directly affect them.
12. Possible Ways We Intend Offering Incentives to Our Customers / Clients (Bonus, Discounts, etc)
Part of our marketing strategies which is clearly stated in our business plans is to ensure that we offer our customers incentives in order for us to retain them and of course continue to generate repeated sales from them and also to attract new customers. We know that if we are going to win our own fair share of the existing market, then we must be willing to outsmart our competitors.
In view of that, we will ensure that we sell our neatly brewed coffee a little bit below the average price in the industry. We will regularly give discount (different percentage) to our customers based on the total amount / cups of coffee they purchased from us any time they visit our coffee shop.
We will create a loyalty plan that will enable us reward our loyal customers especially those who are able to helps successfully market our locally coffees to their family members, friends and colleagues. Rewarding them could be giving them discounts on every purchase they make and also giving them gifts during special occasions like Christmas, New Year, Easter, Thanksgiving and Independence Day Celebrations et al
13.After Sales Service and Customer Support
Well the nature of coffee business does not warrant that we offer after sales services or customer supports but we will ensure that we try as much as possible to always get feedback from everyone that purchases coffee from our coffee shop. With that we will be able to know how to meet their needs and improve on the quality of our coffee if need be.
We will ensure that we open several communications channels such as email, telephone and social media platforms so as to enable our customers communicate to us or lodge their complaints.
Possible Questions We Intend Asking Our Customers during Our Market Survey
- Are you satisfied with the taste and quality of our coffees?
- If you are not satisfied with the taste and quality of our coffees what areas would you want us to improve on going forward?
- Which of our assorted coffee flavor do you prefer the most?
- How would you want us to communicate to you when have any promo or if we have information that will benefit you or your family members and friends? Text messages, e – mail, or via mobile apps (BBM, twitter, WhatsApp et al)
- How much are you willing to pay for a cup of coffee?
- Is there any flavor of coffee that you would prefer to buy which is unfortunately not in our menu? If yes please list them.
- Are you comfortable with the security setting in our coffee bar? If no, in what area would you want us to improve on?
- If you are to change one thing in our coffee bar what would that be?
- Can you comfortably recommend our assorted coffees to your family members, friends and colleagues?
- Are you satisfied with our customer service delivery? If not what areas would you want us to improve on?
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