Confidentiality Agreement The undersigned reader acknowledges that the information provided by _______________ in this marketing plan is confidential; therefore, reader agrees not to disclose it without the express written permission of _______________. It is acknowledged by reader that information to be furnished in this marketing plan is in all respects confidential in nature, other than information which is in the public domain through other means and that any disclosure or use of same by reader, may cause serious harm or damage to _______________. Upon request, this document is to be immediately returned to _______________. ___________________ Signature ___________________ Name (typed or printed) ___________________ Date This is a marketing plan. It does not imply an offering of securities.
Table Of Contents
1.0 1.0
Exec Execut utiv ive e Summ Summar ary y
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2.0 2.0
Situ Situat atio ion n Anal Analys ysis is . . . . . . . . . . . 2.1 2.1 Mark Market et Summ Summar ary y. . . . . . . . 2.1.1 2.1.1 Mark Market et De Demo mogr graph aphic ics s 2.1.2 2.1.2 Mark Market et Needs Needs . . . . 2.1.3 2.1.3 Market Market Trends Trends . . . . 2.1.4 2.1.4 Market Market Growth Growth . . . . 2.2 2.2 SWOT SWOT Anal Analys ysis is . . . . . . . . . 2.2.1 2.2.1 Stre Streng ngth ths s . . . . . . 2.2.2 2.2.2 Weakne Weaknesse sses s . . . . . 2.2.3 2.2.3 Oppor Opportu tuni niti ties es . . . . 2.2.4 2.2.4 Thre Threat ats s . . . . . . . 2.3 2.3 Comp Compet etit itio ion n . . . . . . . . . . 2.4 2.4 Prod Produc uctt Offe Offeri ring ng . . . . . . . . 2.5 2.5 Keys Keys to Succ Succes ess s . . . . . . . . 2.6 2.6 Crit Critic ical al Issu Issues es . . . . . . . . .
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Mark Market etin ing g Strat Strateg egy y. . . . . 3.1 3.1 Miss Missio ion n . . . . . . 3.2 3.2 Mark Market etin ing g Obje Object ctiv ives es 3.3 3.3 Fina Financ ncia iall Obje Object ctiv ives es 3.4 3.4 Targe Targett Mark Market ets s . . . 3.5 3.5 Posit Pos ition ioning ing . . . . . 3.6 3.6 Stra Strate tegi gies es . . . . . 3.7 3.7 Mark Market etin ing g Mix Mix . . . 3.8 3.8 Mark Market etin ing g Rese Resear arch ch
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Fina Financ ncia ials ls
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Colloquy Grog Shop 1.0 Executive Summary Colloquy Grog Shop is a unique local bar/coffee/tapas house that provides a friendly, effective place where singles can meet. Colloquy Grog Shop is not your typical bar where people go to meet other singles. Colloquy Grog Shop has a unique service called the structure conversation system that is quite effective for allowing singles to meet each other and provide them with valuable insight into the other person through re flective conversation. The structured system provide an atmosphere that lowers inhibitions and breeds confidence allowing singles to meet other singles and gain insight into their personality by way of thoughtful discourse. Meeting people is one of the largest hurdles 25-45 year old singles face. Colloquy Grog Shop provides this group with an effective solution to this problem.
2.0 Situation Analysis Colloquy Grog Shop has just be gun business, and marketing is essential to its success and future profitability. The bar offers a place for people to meet in a comfortable, person-meeting environment. The basic market need is place where singles can meet new similar people. Colloquy Grog Shop uses a sophisticated conversation system to enhance and facilitate singles meeting each other.
2.1 Market Summary Colloquy Grog Shop possess good information about the market and knows a great deal about the common attributes of the prized and loyal customers. Colloquy Grog Shop will leverage this information to better understand who is served, their specific needs, and how the Grog Shop can better communicate with them.
Colloquy Grog Shop
Table 2.1: Target Market Forecast
Target Market Forecast Potential Customers Singles Non-singles Total
Growth 9% 7% 8.23%
2001 210,987 134,432 345,419
2002 229,976 143,842 373,818
2003 250,674 153,911 404,585
2004 273,235 164,685 437,920
2005 297,826 176,213 474,039
CAGR 9.00% 7.00% 8.23%
2.1.1 Market Demographics The profile for Colloquy Grog Shop's customer consists of the following geographic, demographic and behavior factors: Geographics • The immediate immediate geograph geographic ic target target is the the city of Portlan Portland d with a populati population on of well well over one million. • The total total targeted targeted populatio population n is estimated estimated at at 345,000 345,000 people. people. Demographics • • • • • •
Male Male and and fem fema ale. le. Ages 25-45. Youn Young g profe profess ssio iona nals ls.. Have Have atten attended ded coll college ege or or gradua graduate te scho school. ol. Eat Eat out out at leas leastt once once a week week.. S in gl e .
Behavior Factors • Enjoy Enjoy intellec intellectua tually lly stimul stimulati ating ng conversa conversatio tions. ns. • Are active actively ly tryi trying ng to to meet meet some someone one..
Colloquy Grog Shop 2.1.3 Market Trends The market trend is headed toward a more sophisticated customer. The restaurant/bar patron today is more sophisticated in a number of different ways: • Food quality: the preference for higher-quality ingredients is being reinforced as customers are being subjected to an increasing number of options. • Quality conversation: patrons are recognizing intellectual conversations can be had in bar settings and would prefer this over normal bar talk. • Access to meeting people: people are tired of being single and are looking for ways to meet like-minded individuals.
Market Forecast
500,000 450,000 400,000 350,000 300,000 250,000 200,000 150,000 100,000 50,000 0
Singles Non-singles
Colloquy Grog Shop 2.2 SWOT Analysis The following SWOT analysis captures key strengths and weaknesses within the company and describes the opportunities and threats facing the Grog Shop.
2.2.1 Strengths • Strong Strong rela relatio tionshi nships ps with with third third party party vendo vendors. rs. • Excellent Excellent staff staff who who are highly highly trained trained and customer customer attenti attentive. ve. • The stru structu ctured red conv convers ersati ation on syst system. em.
2.2.2 Weaknesses • The Grog Grog Shop's Shop's limite limited d brand brand equity. equity. • The struggle struggle to continua continually lly have have current current and and new conversatio conversation n topics. topics. • A limited limited marke marketin ting g budget budget to develop develop brand brand awarene awareness. ss.
2.2.3 Opportunities • A growing market market with with a significant significant percenta percentage ge of the of the target target market market still still unaware unaware of the Grog Shop. • Increasing Increasing sales sales opportunit opportunities ies as people people become become familiar familiar with with the advanta advantages ges of the the structured conversation system. • The ability ability to lower lower variable variable costs through through efficienc efficiency y gains. gains.
Colloquy Grog Shop seat opposing the other. People sit down with females on one side and males on the other (this seating arrangement is for heterosexual gatherings) and will have a limited number of minutes (usually 10) to chat. Typically, conversations can be about anything, however you are not to reveal the job/profession that you are involved in, beyond that, anything is fair game. The table rotates and you end up speaking with a lot of different people. You then create a list of the top five that you would like to speak with again and if the matching person also has you on their list, phone numbers are released to the two people. Another activity might be some sort of outdoor activity like hiking or rafting and it is organized as a singles event. There are also other type of singles events, too numerous to mention. Lastly, there are resources like personal sections in local papers where people can post or respond to personal advertisements. Every person has their own method of meeting people, some more useful than others. Colloquy Grog Shop predicts singles will abandon, or at least supplement, their current method of meeting people with the Grog Shop's activities as they are thoughtfully designed to achieve the goal of introducing like-minded individuals.
2.4 Product Offering Colloquy Grog Shop sells the following: Eight Microbrews on Draft and Bottled Alcohol, specifically beer, is served for two reasons. One, alcohol reduces inhibition, making it easier for people to meet and interact with new people. Two, and more importantly, beer, particularly draft beer generates wonderful profits. Microbeers are chosen because microbrews are of higher quality than large production beers and our target segment prefers higher-quality beer. Espresso, Cappuccino, Coffee, and other Coffee/Espresso drinks. Coffee and coffee-related drinks are hugely popular, particularly in the Pacific Northwest. Northwesterners expect good coffee/espresso at most food/drink establishments and it is often associated with good conversation.
Colloquy Grog Shop enjoyed, whether it is at an art museum or mountain biking in the Cascade Range. Colloquy Grog Shop creates a setting in a bar/coffee shop that encourages thoughtful conversation, allowing patrons to gain insight into the other singles. The key to the conversation system is structure. The rules are clearly established. Singles sit down at specific tables and discuss the assigned topic of conversation. Everyone at these tables are single and looking to meet new people. The conversation is used to elicit insight into the other person, their values and perspectives as well as implicit and sometimes explicit insight to their background and past. The structured conversation system is successful because it reduces ambiguity or uncertainty in the singles social scene allowing people to feel more comfortable in the setting and open up more to new people. Additionally, for intellectually minded people, it allows them to find people with similar interests, whether the similarity is based in the topic of conversation or more generally in conversation itself.
2.5 Keys to Success • Attracting Attracting customer customers s who find value value in the Grog Grog Shops offering offering and and who will frequent frequent the the Shop regularly in order to meet like-minded single people. • Exce Excell llen entt custo custome merr servi service ce.. • Mainta Maintaini ining ng a cost cost of goods goods on foods foods at below below 50%. 50%.
2.6 Critical Issues The Grog Shop is still in the speculative stage as a retail operation. Its critical issues are: to continue to take a moderate fiscal approach to business operations and to build brand awareness which will drive customers to the Grog Shop.
Colloquy Grog Shop 3.1 Mission Colloquy Grog Shop's mission is to provide a neighborhood bar/coffee shop where single people can meet. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of our customers.
3.2 Marketing Objectives • Develop Develop brand awarenes awareness s through through a steady, steady, month month to month increa increase se of new customer customers. s. • Develop Develop an increas increase e in sales sales while while achievin achieving g a status status quo quo state state or decrease decrease in market marketing ing expenses. • Develop Develop awareness awareness of the structur structured ed conversati conversation on system system measured measured by customers customers coming coming to the Grog Shop solely for meeting people.
3.3 Financial Objectives • A double double digit digit growt growth h rate rate for each each futu future re year. year. • Reduce Reduce the variable variable costs costs through through efficien efficiency cy gains. gains. • Reach Reach profi profitab tabili ility ty withi within n the the first first year. year.
3.4 Target Markets Colloquy Grog Shop's customers can be broken down into two groups, singles, and non-singles. The non-singles groups are smaller than the singles groups by virtue of the fact that if you are meeting someone whom you already know, the two of you can come up with the topic of conversation yourself, therefore, Grog Shop offers this group less value. The demographics for the non-singles is similar to the singles, to be listed below. The larger group then is the singles.
Colloquy Grog Shop 3.5 Positioning The Colloquy Grog Shop will position itself as a reasonably priced tapas/bar/coffee house that has an innovative, effective system for allowing single to meet each other. The Colloquy Grog Shop's positioning will leverage their competitive edge: • A unique approac approach h to getting getting singles singles together together called called the structur structured ed conversatio conversation n system. system. This system was detailed in the Product and Services section, please refer to that section for more information. • This system system is a compet competitive itive edge edge because because most bars/ta bars/taverns verns do not not have a niche niche that that they are concentrating on. While every bar or coffee shop has a certain "flavor" and that is why someone will choose one bar or another, the flavor is only surface deep. The business model of the establishment is to sell alcohol and provide a social setting. Beyond these two values, there is little other genuine value that the establishments try to provide. • Colloquy Colloquy Grog Shop Shop is distinguish distinguished ed by the fact fact that their their business business model model concentrat concentrates es on developing value for customers beyond serving drinks. The Grog Shop develops an effective, albeit inherently structured, social setting that encourages meeting like-minded individuals. Providing the drinks is the source of income, an ancillary part of the business model. Generating value for the customers is the main focus, if the customers are happy then the revenue will follow (assuming of course that proper marketing and financial controls are employed). Concentrating on the client's needs beyond serving alcohol is the distinguishing characteristic that will allow Colloquy Grog Shop to rapidly gain market share.
3.6 Strategies The single objective is to position the Colloquy Grog Shop as the premier place for young professional singles to meet like-minded individuals. The marketing strategy will seek to first
Colloquy Grog Shop 3.7 Marketing Mix Colloquy Grog Shop's marketing mix is comprised of these following approaches to pricing, distribution, advertising and promotion, and customer service. • Pricing: the pricing scheme is based on standard industry practices. • Distribution: all services and products will be distributed from Colloquy Grog Shop's retail space. • Advertising and promotion: the most successful advertising will be with Willamette Weekly. Additionally, strategic relationships will be developed with companies such as Multnomah Athletic Club as well as use of a grassroots promotion system. • Customer service: obsessive customer attention is the mantra. The Grog Shop's philosophy is to do whatever needs to be done to impress the customer. While this could reduce short-term profits, it will strengthen long-term profitability.
3.8 Marketing Research During the initial phases of the marketing plan development, several focus groups were held to gain insight into a variety of likely customers. These focus groups provided useful insight into the decision making process of these consumers. An additional source of dynamic market research is a feedb ack system based on a suggestion card system. The suggestion card has several statements that patrons are asked to rate in terms of a given scale. There are also several open ended questions that allow the customer to freely offer constructive criticism or praise. The Grog Shop will work hard to implement reasonable suggestions in order to improve their service offerings as well as show their committment to the customer that their suggestions are valued. The last source of market research will be competitive analysis. This will be done by regularly visiting competitors and analyzing their service offerings.
Colloquy Grog Shop
Target Markets
Singles Non-singles
Colloquy Grog Shop 4.2 Sales Forecast The first two months will be used to set up the physical location, hire personnel, establish vendor relationships and obtain an alcohol license. The third month will be the grand opening. Business during the second month will be understandably slow as a steady customer base takes time to build. By month four it is forecasted that sales will steadily grow.
Target Markets
Singles Non-singles
Colloquy Grog Shop 4.3 Expense Forecast Marketing expenses are budgeted to remain fairly steady throughout the year. There will be an initial ramp up of spending to generate visibility. After this ramp up advertising will be fairly consistent month to month.
Monthly IMC Budget $1,000 $900 $800 $700 $600
Advertising
$500
Strategic relationships
$400
Grassroots promotion
$300 $200 $100 $0 Jan Feb Mar
Table 4.3: Budget
Apr May Jun
Jul
Aug Sep Oct Nov Dec
Colloquy Grog Shop 5.1 Implementation The following milestones identify key marketing programs. It is important to accomplish each one on time and on budget.
Table 5.1: Evaluation Programs Programs
Evaluation Programs Marketing plan completion Advertising Strategic relationships Grassroots promotion Totals
Plan Start Date 1/1/01 1/1/01 1/1/01 1/1/01
End Date 2/1/01 1/ 1 /1/04 1/1/04 1/1/04
Budget $0 $9,600 $4,400 $4,800 $18,800
Manager Karen Karen Karen Karen
Department
5.2 Marketing Organization Karen Kibbutz will be the sole person responsible for the Grog Shop beyond occasional creative help from an outside firm.
5.3 Contingency Planning Difficulties and risks: • Problems Problems generating generating visibility visibility and awarenes awareness s of the Grog Shop. Shop. • An entry into into Portland Portland of the the "conversatio "conversation n roundtables" roundtables" or other other single single meeting meeting events. events. • Lower Lower than than forecas forecasted ted consu consumpt mption ion of alco alcohol hol.. Worst case risks may include:
Appendix: Colloquy Grog Shop Table 4.3 Budget
Budget Advertising Strategic relationships Grassroots promotion Total Budget
Jan $500 $200 $250 -----------$950
Feb $500 $200 $250 -----------$950
Mar $500 $200 $250 -----------$950
Apr $500 $200 $250 -----------$950
May $500 $200 $250 -----------$950
Jun $500 $200 $250 -----------$950
Jul $500 $200 $250 -----------$950
Aug $500 $200 $250 -----------$950
Sep $200 $100 $100 -----------$400
Oct $200 $100 $100 -----------$400
Nov $200 $100 $100 -----------$400
Dec $200 $100 $100 -----------$400
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