A Marketing Spin for a Coffee Shop
Loyalty programs used to maintain and obtain new clients. Three business partners contacted marketing firm about creating a marketing plan for a coffee shop that they were opening in Greenwich Village in New York City.
They had already leased a 3000 sq. foot space, which is very large for a coffee shop. They had not worked out what type of food or coffee they would serve. The location was too large for it to survive as just a coffee shop something extra would have to be added.
A specialist created a plan for the coffee shop to be used as a place for community service groups, discussion groups, art and theatre groups, and special interest groups. In this way in the morning it has to offer coffee, cappuccino, and breakfast muffins and an assortment of pastries and after 9:30 A.M. the coffee house would strive to become a meeting place for various community groups, organizations, associations, and a place for college students to meet after classes. The coffee shop should have a part time program director who would work with the various groups to help facilitate community meetings and set up interesting forums and discussion groups, and to provide other entertainment for the college students.
As it was found out by the market researchers the espresso machines contribute well over 50 percent to a coffee shop's revenue and even more to its profits. The shops with the best tasting drinks did five to ten times the business of shops with average tasting espresso. To capitalize on this the coffee shop should try to get its espresso drinks to over 50 percent of the drinks served. To accomplish this, the coffee shop set up a separate espresso station, with instruction on how to make a great espresso. The coffee shop would set its pricing approximately 25 percent below typical Starbucks' pricing.
The key to the coffee shop is the merchandising and taste of its specialty drinks, which involves having the right coffeemaker and coffee, and people who understand the art of making good coffee. It was suggested by specialist in marketing that the coffee shop could purchased a high-end cappuccino coffeemaker that has a shiny copper and bronze exterior that can be set out in a separate station to attract interest to specialty coffees. Two employees along with the manager were trained in the proper technique of making specialty coffee drinks.
It was worked out with the part time program and sales director the search of groups and creating groups that will hold meetings in the coffee shop. A discount would be offered to any group or individual who would bring in groups.
After about 5 months the results of these marketing efforts had paid off. The coffee shops morning business was doing 10 percent better that was forecasted.