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Marketing Planning and ManagementCold Brew Marketing Plan

Student Names: Anastacia Clarke, Bernie Ng, Kaysee Felgate, Kirsty Chapman, Stephan Wang

Assignment InformationStudent Names and Numbers: Anastacia Clarke N9112561, Kaysee-Jane Felgate Faulkner N8592373, Kirsty Chapman N8794626, Sio wa Ng N9428763, Zixin Wang N9274481Tutor: Sandy SergeantTute Time: Wednesday 9.30amWord Count:

Table of Contents1.0 Executive Summary...................................................................................................................... 3

2.0 Situation Analysis.......................................................................................................................... 42.1 The Market 43........................................................................................................................................................ 4

2.1.1 Market Need 61................................................................................................................................................................... 42.1.2 Macro-environment..........................................................................................................................................................4

2.2 The Company......................................................................................................................................................... 62.2.1 Mission statement 30.......................................................................................................................................................62.2.2 Marketing Team 20............................................................................................................................................................62.2.3 SWOT Analysis.....................................................................................................................................................................6

2.3 The Competition 126........................................................................................................................................... 7

3.0.Market Segmentation And, Targeting..................................................................................103.1 Segmentation..................................................................................................................................................... 10

3.2 Target market 130..............................................................................................................................................................10

4.0 Market size, demand and potential 28................................................................................114.1 Estimated market demand............................................................................................................................. 11

5.0 Marketing Objectives and Metrics 17..................................................................................12

6.0 Marketing Mix.............................................................................................................................. 136.1 Product strategies 87........................................................................................................................................ 136.1.3 Packaging: 40................................................................................................................................................... 14

6.1.4 Labeling. 42........................................................................................................................................................................ 146.2 Pricing strategies............................................................................................................................................... 15

6.2.1 Pricing factors and sensitivity 184...........................................................................................................................156.2.2Pricing strategy 80.......................................................................................................................................................... 156.2.3 Cold Brew Prices 80........................................................................................................................................................156.2.4 Break-even........................................................................................................................................................................... 16

6.3 Placement strategies 109................................................................................................................................ 176.4 Promotional strategies.................................................................................................................................... 18

6.4.1 Social Media Presence 86.............................................................................................................................................186.4.2 Facebook &Instagram Applications 78..................................................................................................................206.4.3 Snap Chat 71...................................................................................................................................................................... 206.4.4 Market Day Promotion Strategies 20......................................................................................................................20

7.0 Budget............................................................................................................................................ 21

8.0 Implementation Plan................................................................................................................. 22

APPENDIX C: MARKET VISIT.......................................................................................................... 27

Cold Brew – To get you Through 2

1.0 Executive Summary

Cold Brew is bringing a whole new dimension to coffee culture in Brisbane. We will be selling

premium cold brewed coffee that illuminates the shortcomings of traditional iced coffee. Steeped over

a long period of time, this smooth, strong and flavoursome beverage delivers. With beans sourced from

Sponsors and local Brisbane roasters, Merlo, only the freshest quality can be expected from this

product. The strategy for developing and launching this product is comprised of four essential

components, product attributes, branding and position, packaging and labelling.

Using a segmentations analysis, the firm has identified the major market segments, including Big

Chance, trending and small chance. In accordance with the expected numbers of people in each group, the

target market for our product is the young optimist, which is about 148 out of 267. Aware of this young

dominating demographic, prices for market day are set at a base rate of Q$40. This will ensure a profit of 23.42

per unit sold. To optimise success, competitor’s prices were also taken into consideration, however, were not the

key deciding factor. This is because Cold Brew has the competitive advantage of first movers effect in the

market place. Implementing the blue ocean strategy, we are launching a product in uncontested market space,

essentially making competitors prices, positioning and products irrelevant. Additionally, price bundling was

incorporated to gain market share while still maintaining premium positioning.

Despite having no direct competitors, Cold Brew researched each environmental level (Macro - Pestel, Indsutry

–Benchmarking and Organisational – SWOT) to develop a strong marketing plan. In relation to the organisation

environment a situation analysis was undertaken in order to identify current macro environmental trends and

issues. The PEST analysis revealed that the young optimism market have busy lives and require ample energy

for daily activates. It was assumed Cold Brew would be positively received within this demographic. The

strength, weakness, opportunities and threats to Cold Brew were then developed surrounding this knowledge.

Located in stall 49 (central to various entry and exits) on the day promotions stemmed from attracting large sums

of foot traffic. Strong caffeine aromas, heavily branded barricades and Merlo branded umbrellas will appeal to

consumer’s sensor and will influence purchasing decisions. Even though the Merlo brand is familiar and will

attract attention on the day, Cold Brew is aware those wont help the sale of individual products unless the

consumers are previous made aware. Therefore, Cold Brew has engaged innovative promotional tactics

through social media avenues, Facebook, Instagram and Snapchat to generate brand an product


awareness prior to the day. We are confident that each element of the marketing mix is strategically

satisfied and Cold Brew will be a success and well received product.

2.0 Situation Analysis Cold Brew undertook a situation analysis to select the best target market. This includes an analysis of

the different macro-economic trends and issues to identify current consumer trends and behaviours.

2.1 The Market 43Cold Brew is available on Market Day, September 25th and October 10th in Brisbane CBD. The

market days are within QUTopia with a population of 276 citizens (161 female and 105 males). The

mean QUTopianage is 21 and mean income is $262.12.

2.1.1 Market Need 61

Cafes at QUT will not be operating on the two market days; therefore QUTopians will be channelled

toward our caffeine product. A large portion of QUTopians(148) identified themselves as ‘Young

Optimism” against Ray Morgans Segment indicating they are “busy planning careers, attending

university …and need the energy to do it.” (Levine, 1997). Therefore, there is a need for Cold Brew’s

product.

2.1.2 Macro-environment

A PEST analysis analysing current macro-economic trends / issues occurred.

Environment Trends/issues Implications for our product

Political/Legal Health and Safety: Cold Brew will Abide by all regulations of the Food Act 2006 and Food Regulations 2006.

QUTopia Laws and Rules

Cold Brew will take extreme measures to ensure the beverages our company sells are “safe and suitable for human consumption, and to prevent misleading conduct in relation to the sale of food.”[1] Food Act 2006.

Cold Brew is adamant in following all rules and regulations set out by QUTopia.


All managers have closely read through all QUTopia documents and have a clear understanding. Ensuring no rules are broken means no fines will be applied, therefore more money

Economic Low economy

Competitive pricing in the coffee market

Citizens have less disposable income than outside of QUTopia. Therefore, prices for our products must be slightly lower.

Coffee is a huge business with nearly half the population of Australia (46%) drinking coffee according to the Australian Health Survey. [2]therefore; the coffee industry is incredibly competitive. Therefore, Cold Brew’s Pricing Manager has carefully analysed the market and figured the best price possible.

Socio-cultural Healthy Eating

Coffee Tastes and Preferences

Health is incredibly important to many Australians. The use of Soy Milk/Almond Milk and low Fat Milk is becoming more and more popular. Health conscious people will not go near full-cream milk anymore. Implications may arise Cold Brew is not offering any of those options.

Australians tend to prefer coffee with a more bitter taste and organic rather than sweet and sugary. Australia may lag behind in “coffee consumption per


capita (the average Aussie manages just 0.3 cups a day, compared to the Netherlands’ 2.4) but it comes out top in all-round coffee snobbery.”[3] Starbucks failed in Australia because the Australians prefer a “good coffee” from independent roasters. This is a benefit for Cold Brew as many consumers view Merlo as ‘good coffee.’

Technology Use of Smart Phones There is an increasing need for people to have the best and newest smart phone. This is because people love to stay in touch with social media. There are numerous platforms people like to connect on and Cold Brew is using all the mediums to the full advantage.

Table 1: PEST Analysis

2.2 The Company

2.2.1 Mission statement 30

Cold Brew aims to produce premium ice-coffee, freshly made and provided with convenience. This

product accentuates quality-tasting coffee and influences positive psyche as it bring another dimension

to caffeine.

2.2.2 Marketing Team 20

The team consists of a Marketing Manager, a Product Manager, a Pricing Manager, a Distribution

Manager and a Promotion Manager.

2.2.3 SWOT Analysis

Strengths Weaknesses

·Knowledge: Excellent team members with strong knowledge ·Traditional idea: Many brands already offer


from various industries including the food industry

·Location: High level of foot traffic for our stall

·Merlo Sponsor: Merlo is a highly reputable brand. It has been

voted Australia favourite coffee brand from 2012-2014.[1]

Customers will be drawn to our stall

·Environment Friendly: Power is not necessary for the day and

everything is recyclable

·Quality: Product has gone through extensive testing to ensure

the best taste

·Price: Prices will be appealing for customers

·Accessible Location: Easy and low costs associated with moving

product from kitchen to stall

·Communication: Marketing Manager has created a low-cost tool

to engage with consumers via various online social media

channels (Instagram, Facebook, Twiter).

·Healthier: Our drink will typically be healthier than other coffee

products.

·Brand Loyalty: Customers who purchase on the first day market

day will be rewarded with a discounted price if they return on

the second market day

cold-brew drinks

·Unhealthy: Many consumers view coffee as

unhealthy drink and may be persuaded

to choose a juice stall instead. Redbull is

also associated as being unhealthy.

·Indecisive: People can be indecisive on the

day with too many choices

Opportunities Threats

·Customer Need: Customers are willing to spend money on food

and drinks when they are thirsty or hungry

·Large Market place: Our product appeals to a huge market of

busy students or staff members who wanting to stay awake to

complete/mark University work.

·Competitive Market: E ntering a market

with many competitors

·Competition: Competing with numerous

other companies in the same industry


·Unknown Customer Base (Tourists): Any tourists travelling

through on either market days will be drawn to us because

we will have a Merlo tent. Merlo is a brand that people feel

safe with choosing.

·Appealing Product: Coffee is a product people are willing to

spend money on

·Weather Change: Brisbane’s weather starts to get warm towards

the end of September, therefore consumers will be drawn to

a cold coffee

·Vendi-Machines: vendi-machines on

campus that sell Redbull

·Weather: Weather has potential to impact

high volume numbers as It tends to be

much colder If it rains, thus customers

will not want a cold drink but rather a

hot drink

Table 2: SWOT Analysis

2.3 The Competition

Cold Brew is a part of the Other Specialled Food Retailing offering freshly brewed cold coffee. There

are no direct competitors in QUTopia, however, six indirect competitors selling alternative beverages.

Table 3 identifies the top 3 competitors and undertakes a competitor analysis.

The competitor analysis demonstrates ‘Squeeze’ is Cold Brew’s strongest competitor as they offer a

high-quality juice and have implemented marketing. Their location isn’t ideal, giving Cold Brew an

advantage. ‘Coco Cortez’ also acquired ideal location for foot traffic. ‘Frozen’ who are selling tea have

undertaken no marketing, with poor location and could go unnoticed.

All indirect competitors are positioning themselves as providers of quality products therefore indicting

a higher cost associated. Cold Brew will counter this attack by offering premium product with

competitive pricing.

Competitor 1: Coco Cortez Competitor 2: Frozen Summer Competitor 3: Squeeze

Target market(s)

QUTopians who fall into the ‘young optimism’ category who are busy and will pick the first drink they see to keep moving.

QUTopians who prefer something light rather than chocolate, juices, smoothies or coffee to drink. Targeting any segment of people who have diary intolerances.

Young QUTopians who fall into ‘young optimism’ or ‘look at me’ Ray Morgan segments for example young student who healthy conscious people who love fruit and staying fit

Product Chocolate drinks and chocolate goods

Fresh Ice Tea Drinks Fruit Juices


PriceSelling as a ‘high quality’ product indicates a higher price between $80-$90.

Selling as fresh drinks with high quality services indicating a relatively high price between $ 70-85.

Squeeze is sponsored, assuming most of their fruit will be free or cheaper, their product will be slightly cheaper between $50-80.

PlaceStall 2, QUTopia Stall 46, QUTopia Stall 54, QUTopia

PromotionFacebook page No promotions as of yet. Facebook page, Second

advertisement on QUTopia Official Facebook page, Instagram account

Potential competitive barriers

Coco Cortez is placed in a premium position meaning consumers will be drawn to their first, and potentially buy their product and be not interested.

Consumers with dairy intolerances will buy from Frozen Summer rather than us.

Sponsored by Charlies Fruit Market – any client base Charlies Fruit has will potentially choose Squeeze,

Potential strengths and weaknesses

Strengths: Consumers who prefer cold chocolate drinks rather than cold coffee. Consumers who tend to buy on impulse rather than look around will purchase from Coco Cortez as they are in a premium position.Weaknesses: Consumers who do not like chocolate and coffee will not buy from Coco Cortez and consumer looking for more of a pick me up. Coco Cortez has not started advertising yet, therefore we currently have a competitive advantage.

Strengths: Consumers who stick away from dairy products and/or coffee. Majority of entry point will lead to consumers seeing Frozen Summer before us.

Weaknesses: So far no

advertisements strategies are

apparent. They will have no client

base and will have no brand

awareness on the day.

Strengths: Attracts a strong market of people with dairy intolerances and wanting to stay healthy. Have started heavily marketing their product. Sponsored by reputable brand.

Weaknesses: Position in a bad

location with only one side of

entry

Our likely

respons

e(s)

Create more attention to our Facebook and Instagram pages.

Display Merlo effectively so

consumers are drawn to us

Continue to heavily market through

uploading photos on Facebook and

instagram.

Continue heavily marketing

hopefully reaching more

customers than them. Also use

our double sided store to the

full advantage.

Table 3: Competitors


3.0.Market Segmentation And, Targeting

3.1 SegmentationCold Brew analysed three segments in order to identify the target market.

Big Chance Trending Small Chance

Geographic description (all consumers come from QUT, which is based in and around Brisbane.)

These people are expected to live in apartments and houses in and around the inner city with many friends.

These people are expected to live just outside the inner city in houses with one or two friends.

These people are expected to live in apartments in the inner city with many friends.

Demographic description

Young single university student.

Age from 18-29. Occupied 44% of all students. The average income is 263 QUTopia dollars, which is the highest income in all brackets.

Most of them are single student and age from 17-40. Occupied 10% of all the students. The average income for these students is 261 dollars.

Young single student. Age from 18-25. Only 5% of all students is in this bracket.

Psychographic description

Young Optimism Something Better Look At Me

Behavioural description

Young Optimism wants to try everything. They are willing to spend a lot of money on new stuff. Usually somebody who has just entered their life and they are wish to impress.

This group of people is beginning to mature. While they love the finner things in life, they are also trying to save money. As a consequence they tend to be concerned about what other people are doing.

This pattern of people is more often found among teenagers, trying to ‘stand out’, seeking

recognition by the family for being ‘grown up’ can occur at any time

in a person’s life.Saving is not their concern as they have their whole lives ahead of them.

Table 4: Segmentation

3.2 Target market 130

From the segmentation analysis, the young optimism will be the target market. This consists of

approximately 44% of total market. Both male and female are in this bracket (aged: 19 to 29) and

indicate to be young, energetic and enjoy new products. It can be seen that this market has a large size

of people, influencing profitability. Without direct competition our business obtained a monopolistic


position. Moreover, our product can be accessible through persuasive communication and product

distribution.

According to Martin (2001), businesses can develop some special strategies if they’ve identified needs

and wants of customers. As café shops on campus will be closed at market day, our product can expect

a large size of market share. Its expected most of customers will react similar and positive to our

product.

4.0 Market size, demand and potential 28The total market will consist of all the customers in that market day including, tutors, tourists, students

etc. It’s expected over 267 people with tourists numbers not confirmed.

4.1 Estimated market demand

Key Factors Figures

Market Potential 267

Target Market Size: 148

Usage/Purchase frequency: Consumers are likely to

purchase 2 products during the

two market days.

Estimated market share 30%

Sales forecast-(b) x (c) x (d) 148 x 2 x .30 = 88.8


5.0 Marketing Objectives and Metrics 17Four marketing objectives are analysed through the SMART objectives procedure. This will help Cold

Brew maximise potential.

SMART Objectives Metric How the data will be collected Metrics: How it will be measured

1) Build initial hype within QUTOPIA Market with Social Media Presence. Upload at least 17 of the 20 expected posts.

Exposure to Market

Cold Brew Social Media pages on the 16th of September (1.5 Weeks Prior to Market Day 1) will be commence Daily Posts up until Market day 1. On the 30th of September (1.5 Weeks prior to Market day 2) Cold Brew will once again commence daily posts up until Market day 2 – Results will collected after Market Day 2.

-To ensure hype is created during 10 days prior to each Market Day. During these 20 days, cold brew will be required to post/upload from either Facebook or Instagrm daily.

2) Achieve the break even point after Market day 1

Break Even Point

Cold Brew should break even by the end of business of Market day 1 (26th of September)

The total cost of revenue and expenses will be considered – If revenue exceeds expenses, Cold brew will have successful broken even on Market Day 1.

Selling at $40 (base price), 48 units need to be sold to cover the $1900 fixed costs ($1300 wages, $350 stall rent, and $250 email communication for promotion)

3) Achieve 10% Profitability

Net Profit Margin

Cold brew should achieve at least 10% profitability after Market day 2

Net Profit = Net income/revenue

4) Achieve 20% Loyalty

Customer Loyalty

Cold Brew Crew cards will be handed out with each Cold Brew Purchase. These cards will allow loyal consumers to have a 10% Discount on Market day 2 if they return with the said card.

- # of Cold Brew Coffee sold = # of Loyalty Cards Handed out.- # of Cold brew Loyalty Cards handed out divided by the Cards Redeemed on MD2 for the 10% Discount

- E.g. 10 Handed out/ 20 Redeemed on MD2 = 50% Loyalty

Table 5.0 SMART Objectives


6.0 Marketing Mix

6.1 Product strategies 87Cold Brews product strategy focuses on creation of value for the consumer. The core product is a

caffeinated beverage for energy stimulation; however, Cold Brew exceeds this basic service function

(Grewal, Levy, Mathews, Harrigan&Bucic 2015, p. 240). Major issue associated with Iced Coffee have

been identified and resolved, including bitter taste, quality consistency and watery caffeine. The

product strategy is comprised of four components, product attributes, branding and positioning,

packaging and labelling. Note, a licence for this stall is not required for grinding coffee beans refer to

Appendix A.

6.1.1 Product attributes:

Our product meets core consumer demands with various superior product levels. Cold Brew’s steeps

cold ground coffee over time, which infuses the water with caffeine. The coffee has been sourced from

Brisbane’s local roaster, Merlo to ensure the freshest quality beans. Standard ratio measurements

ensure consistency in taste, flavour and strength. A sweeter option available (caramel flavouring.) As a

firm we have given a convenience product a specialty edge. Table 6 reveals the supplies and source:

Ingredient/Supplies Sources/Suppliers3 Bean Arab Coffee Blend, Merlo

Umbrella, Syrup Flavouring

Donated by Merlo Coffee

Full Cream, Skinny, Lactose Free, Soy

Milk

Purchased from Woolworths

Cups/Straws Purchased from Campbells

Table 6.0: Ingredients and Supplies

Milk options ensure superior service and cater to individual needs. In addition to receiving premium

Cold Brew, consumers will also receive a 20% VIP card from our Sponsors Charlotte Café.

6.1.2 Branding and Positioning. 74

Merlo’s brand provides leverage to get Cold Brew recognised on the market

day. Our Branding strategy is to use the Merlo in cooperation of our new

product Cold Brew. However even if the overall brand name is familiar it

wont help the sale of individual products unless the consumers are aware of

products available (Grewel et. Al. 2015). Our brand logo positions our target

market to directly associate us with strong, superior, flavoursome beverages. The various product levels


in Diagram 2 communicate our overall value proposition and differentiate the product from

competitors. (Diagram 1).

Diagram 1: Product Levels 93

The aggregation of these associations forms the foundation of this brand image (Grewal et al. 2015. p.

250) Evoking brand loyalty, VIP treatment and prize opportunities are offered to returning consumers.

Our competitive advantage is innovating standard ice coffee to a premium level. As this adaptation is

time-consuming, Cold Brew has secured advantage the ‘First Move’ in the QUTOPIA marketplace. A

blue ocean strategy is evident as this is an uncontested market space that makes competitors irrelevant

and generates new consumers value. (Crawford, C M. & Di Benedetto, A, C. 2015. p 432)

6.1.3 Packaging: 40Packaged plastic take away cup, with lid and straw. Strategically, heavily branded the T/A cups work

as a promotional tool. The logo will be exposed throughout the marketplace and other stalls. Labels

around cup with provide loyalty and VIP cards.

6.1.4 Labeling. 42

Cold Brew Label is a sticker on the T/A cups. Consumers will also receive a charlotte café card with a

map of the cafes location. This will give the 20% off purchases. Ingredients will be feature on the

bottom of the cup.


6.2 Pricing strategies

6.2.1 Pricing factors and sensitivity 184

As discussed in Section 2.3, Cold Brew has no direct competitors. However, indirect competition arises

from three other businesses. In order to counter this, competitor-oriented pricing will be employed.

Although is unknown what Cold Brew’s competitors will set their prices, an approximation can be

gauged from released positioning statements.

Each of the major indirect competitors (SQUEEZE, Coco Cortez, and Frozen Summer) has indicated

high quality within their positioning. Their prices will therefore reflect this and it can be assumed more

costly. Cold Brews position as a more premium product within the competitive market may pose a

problem. However, Cold Brew’s first mover, blue ocean strategy will aid in strong market share.

In pricing the product, budget and expenditure have great influence. Expected target market share and

sales forecasting allowed the breakeven point to be calculated and price adjusted accordingly. This is

detailed in Section 6.2.4.

Previous research into food and drink consumption within the QUTopia marketplace has shown that it

is purchased to satisfy the need. Due to this type of demand, Cold Brew’s product is elastic good,

meaning consumers respond to the price.

6.2.2Pricing strategy 80

Due to competition, either a competitive parity or status quo pricing strategy was deemed suitable. To

maintain premium status competitive parity is appropriate. Competitive parity is the strategic decision

of setting product prices similar to those of competitors (Grewal et al., 2015). This differs from status

quo pricing, as price is not adjusted according to every fluctuation in competitor's price (Grewal et al.,

2015). The use of competitive parity will maintain the positioning and perceived value of Cold Brew’s

product.

6.2.3 Cold Brew Prices 80

To set price, optional additions to the product must be taken into consideration. Price bundling will be

utilized to “encourage customers to stock up so they won’t purchase competing brands” (Grewal et al.,

2015). Market Day prices are presented in Table 7.


Base With Milk With Syrup With Milk and Syrup Pricing Bundling (2 units, any combination)

Price $40 $45 $45 $50 $80

Table 7: Pricing of Products

Evidently, a discount for buying the products with both milk and syrup added only included within the

bundle. This is to maintain premium status. The average product price is $45, with sales forecast to

reach 89 units, a profit of $23.42 per unit is expected.

6.2.4 Break-even

Diagram 2 reveals Cold Brew needs to sell 42 units over both Market Days in order to break even.

Saleds projections of 89 units sold indicate that Cold Brew will break even.

Diagram 2: Break Even (Source: https://www.dinkytown.net/java/BreakEven.html)


https://www.dinkytown.net/java/BreakEven.html

6.3 Placement strategies 109Distribution is essential to drive products to the customer as the right time (Grewalet. Et. Al. 2015).

There is potential that indirect beverage competition could intercept traffic. Cold Brew’s location (stall

49) is ideal at the centre of most access points (Diagram 3: QUTopia Map). However, there are many

indirect competitors surrounding. As perceived at an alternative market place, consumers were drawn

to food and drink stalls based on “aroma and attractive pictures” (Appendix 2).

Diagram 3: Qutopia Map

Consequently coffee aroma and heavy branding will be implemented. As a multi-access location the

augmented product layer, to supply strong customer service is implemented. Table 8 reveal Cold Brews

distribution features.

Table 8: Distribution Feature.

FEATURES COMMENTS BaseLocation Cold Brew is Located at Stall 49 within the market

place. With 5 access points in close proximity.

$40

Lighting Small torches hanging from the Umbrella will

attract attention and provide appropriate lighting for

Managers to monitor quality control over their

ratios of coffee to milk.

Potential neighbours Just 5moothies is located at stall 51 and is

considered an indirect competitor of Cold Brew as

both organisations are selling beverages. However,

as their site is unpowered we aren’t concerned


about disruption with blender noises. Additionally,

we have compensated for close proximity

competitors (46, 51 and 54) with additional and

different signage.

Traffic Flow Traffic flow will be extensive in this area as the

stalls can be access from both sides. This means

that mangers will need to be serving both front and

back customers. Additionally, there are large access

points to the building located four stalls away.

Floor coverings The floor is covered with carpet so the acoustics of

the marketplace will be more thoroughly absorbed.

Access to a wall Cold Brew has no access to a wall so signage has

had to be all stand-alone.

Posts There a no post located near Cold Brews Stall.

Sound As the building is large sound will echo throughout.

The carpeted floor should help with acoustics but

the Merlo umbrella will also shelter the store when

directly communicating with Customers.

Impediments The 1.5m2 size of the stall is going to be the biggest

impediment. We will have to develop appropriate

storage for ice, coolers, cups, lids, milk and coffee.

Table 6.0: Direct Marketing Channel

6.4 Promotional strategies

6.4.1 Social Media Presence 86

Social media will be the primary platform for communication with target consumers. Not having a

social-media presence in today’s market isn’t optional if you want to appear professional and compete

in your industry (Folger, 2015). Facebook, Instagrm and Snapchat are recognized as the trending

channels of Social Media (Moreau, 2015) and are employed to promote the product Early-presence can

assist the; awareness, interest and desire sections of the AIDA-Model. By achieving those, Cold Brew

can encourage the action-stage (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015).


Key Message Communications Mix Element

Promotional Tactics

Cold Brew is Competitive

Advertising and Social Media We will be increasing our social media activity to a daily presence 10 days prior to MD1 and MD2. This will allow the us to gain awareness and the consumers can build more interest and desire (AIDA Model)

Cold Brew is Up Market (High Quality)

Advertising, Social Media and Direct Sales

Since Cold Brew coffee is considered to be a speciality coffee, we are able to market our product as an “Up Market” Product. The Up-Market position will be expressed through our advertising and social media Channels, this will be done with images/fliers that imply a premium feel to the brand. The Up-Market message will also be backed up by the expressing how our suppliers are prestigious and that is what also makes our brand prestigious. This is because we will be sourcing our coffee beans from Merlo Coffee – Consumers will understand that we offer a prestigious and high quality coffee through being told when they approach the store.

Cold Brew Crew – Forming a foundation for cult brand. (ie, The Cold Brew Crew, will get you through)

Interactive, Direct Sales, Social Media and Advertisement

A cult brand is where their main customer base is known to be highly involved, energetic and loyal – Or in other words, fanatics or true believers in the brand itself, these consumers tend to feel as that they contributed to the brands succession or popularity (Investopedia, 2015). Examples of this can be RedBull or Starbucks, which is mores suitable comparison for our industry. We wish to create a cult brand feel for our consumers and they will be known as the ‘Cold Brew Crew’. This ‘Cold Brew Crew’ foundation will be expressed through all of our channels of promotion and more


notably our direct sales. We will be handing out “Cold Brew Crew” cards to encourage Loyalty as stated in section 1.0 of the Marketing Metrics and Objectives. If we are successful in creating a cult brand, the high levels of loyalty and word of mouth will encourage profits largely and the performance of our MD2.

Table 7.0: Communication Mix Table

6.4.2 Facebook &Instagram Applications 78

Stated in section 1.0 of the Marketing Metrics, Social-Media will be used to reach out to our consumers

10 days prior to each MD. The aim is to build publicity, excitement and awareness towards our

product/brand. Advertising will encourage consumers entering the buying-cycle, which is important for

early stages of the product life cycle (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015). This type of

promotion will be done through uploads i.e.,‘Tips for Latte-Art’ and ‘ Coffee Fact-of-the-Day’.

6.4.3 Snap Chat 71

Snapchat is a photo/video messaging app to post video “stories” that are shared amongst users (Betters,

2015). To encourage active social media presence (Folger, 2015) Snapchat will be used to film the

process of producing Cold Press Coffee. This Channel of presence can encourage the interest desire

areas of the AIDA model (Grewal, Levy, Mathews, Harrigan , & Bucic, 2015) since it will entice the

customers prior to MD1 and MD2

6.4.4 Market Day Promotion Strategies 20

Market Day promotion strategy is evident in table 8: Strategy and description.

Strategy DescriptionSocial media Facebook, Instagrm and Snapchat Links will be

presented on a sign

Brand Loyalty – Strategic Partnership With each purchase, the consumer will be given a

Charlotte Café 20% off card as well as a “Cold Brew

Crew” Card on MD1.

The “Cold Brew Crew” Card will have two main

purposes, to encourage loyalty and consumer


participation in promotions

Encourage Involvement and Arouse Excitement.

CBC Cards will also include instructions on how to win

the DIY Cold Brew Kit – Instructions: Upload a photo of

you and your coldbrew on MD1, caption the image

#coldbrewontherun and follow the Cold Brew Instagrm

page to be in the chance to win. The winner will be

announced prior to the commencement of MD2.

Repeat Purchases CBC Cards will be handed out with each purchase. These

cards will explain that, if they are presented during MD2,

they will receive a 10% discount on their MD2 Cold

Brew.

Table 8: Strategy and Description

7.0 Budget

Cold Brew BudgetStart Up Capital ($Q) 4000Capital Retained ($Q) 2100Projected Unit Sales 89Min Unit Price ($Q) 40Max Unit Price ($Q) 50

Average Unit Price ($Q) 45


Cold Brew Anticipated Profit and Loss Statement($AUD)

Real Currency

($Q) QUTopian Currency

Total

Total Sales $4005

Cost of ProductionMaterials $35Wages $1300Total Cost: $1335Gross Profit: $2670

Expenses:Stall Purchase $350Email Promotion $250Total Expenses: $350Net Profit: $2070

Anticipated Profitability of Organisation 51.68%

8.0 Implementation Plan

8.1 Pre-Market Day

Action Team member responsible Deadline

Commence daily posts/uploads of Snapchat, Facebook and Instagram 10 days prior to MD1

All Members (Begin on the 16th of September and Ends on the 26th)

Upload the Process of how we got the Cold Brew (Snapchat)

- Kirsty Chapman 26th of September

8.2 At Market Day 1


Receive some feedback from Customers (Do we need to change the Cold Brew recipe for better taste?) – Enquire through at least 5 customers. Ensure a script is prepared before the deadline.

- Bernie (SioWa) Ng 27th of September

Provide Samples - As we wish to create as much awareness as possible, we will aim to have one member give out some free samples.

- Any Member 26th of September

8.3 Post-Market day 1/Pre-Market Day 2


Have we broken even? – By viewing our sales numbers, have we sold more than 48 units?

-KayseeFelgate 28th of September

If we have not sold enough units to break even –

-Bernie Ng 9th of October


Implement additional promotions to increase sales for MD2

Encourage Loyalty – Ensure posts are placed on Snapchat, Facebook and Instagrm reminding our followers to bring their ‘Cold Brew Crew’ Card they received on MD1 to ensure the discount on MD2

- Ana Clarke 9th of October

8.4 Market Day 2


Encourage Loyalty – Ensure you remind the consumers that they can utilize their ‘cold brew crew’ card from MD1 – this will be included into our script.

All Team Members 10th Of October

Are we making enough sales? Briefly check the # of units sold.

- KayseeFelgate 1pm 10th of October

8.5 Post-Market Day 2


Group evaluation of MD1 and 2.

- All Members. 10th of October close of business.

Ensure our market area is clean and if not, delegate to clean.

- Stephen Wang 10th of October close of business.


Reference ListABS. (2014, 03 14).Regional Population Growth, Australia, 2012-13. Retrieved from Australian

BureauofStatistics: http://www.abs.gov.au/ausstats/[email protected]/Products/3218.0~2012-

13~Main+Features~Queensland?OpenDocument

Brisbane. (2014). Brisbane Demographics. Retrieved from Brisbane, Australias New World City:

http://www.choosebrisbane.com.au/corporate/about-brisbane/demographics

Betters, E. (2015, Jan 29).What is snapchat and how does it work? . Retrieved September 1, 2015 from Pocket-

Lint: http://www.pocket-lint.com/news/131313-what-s-the-point-of-snapchat-and-how-does-it-work

Folger, J. 2015. “Implementing A Small Business Social Media Strategy: Retrieved from:http://www.investopedia.com/university/implementing-small-business-social-media-strategy/

Grewal, D., Levy, M., Mathews, S., Harrigan , P., &Bucic, T. (2015). Marketing. North Ryde: Mc-Graw-Hill

Education (Australia) PTY LTD.

Investopedia. (2015, jan 1). Cult Brands. Retrieved sep 1, 2015 from Investopedia:

http://www.investopedia.com/terms/c/cult-brand.asp

Martin, G. 2011, The importance of marketing segmentation. American Journal of Business Education, 4(6), 15-18. Retrieved fromhttp://search.proquest.com/docview/874269598?accountid=13380

Levine, M. (1997). Young Optimism. Retrieved from Ray Morgan Research:

http://www.roymorgan.com/products/values-segments/young-optimism

Moreau, E. (2015, jan 1).Top 15 Social Networking Sites You Should Be Using. Retrieved sep 1, 2015 from

webtrends: http://webtrends.about.com/od/socialnetworkingreviews/tp/Social-Networking-Sites.htm


http://www.pocket-lint.com/news/131313-what-s-the-point-of-snapchat-and-how-does-it-work

APPENDIX A: Product and Stall Checklist (all businesses to complete)

To ensure that your product and stall complies with Australian health and safety laws and the rules of QUT and QUTopia, please complete and sign the following checklist, Please note that these rules are monitored at marketday and any breach could result in your business being shut down on the spot.

If your business requires a food license (as indicated in the product section of the plan, this will be provided by your tutor prior to marketday conditional on meeting all requirements).

Item Detail Your ResponseIs a food license required? http://www.brisbane.qld.gov.au/laws-

permits/laws-permits-businesses/food-business-licences/starting-new-food-business/market-food-stall.

No

Does your product have all ingredients listed on a label attached to the product?

List the items to be shown on your label: Coffee, Water, Caramel Flavouring, Milk, Soy, Lactose Free

What are the dimensions of your stall?

Must NOT exceed 1.5m x 1.5m in width and depth

Height: NoneWidth: 5.5 StepsDepth: None

Will you be using electricity in your stall?

If so please state the equipment you will be using:

No

Are there any stall features that require safety or mess precautions?

Examples are: Boiling water/kettles Esky’s (water condensation

on floor) Spillages Power cords that require

taping down or hiding behind stall

List the precautions you are taking: We will constantly have paper towels available to clean up any spillage. A serviette will also be given to our customer in case they spill any once they have left the stall. Every five minutes we will check for any spillages.

APPENDIX 2 Product Health and Safety License Application (only businesses selling food, beverages or items that touch the skin to complete)


http://www.brisbane.qld.gov.au/laws-permits/laws-permits-businesses/food-business-licences/starting-new-food-business/market-food-stall



Item Your Answer1. For QUTopia, any product that touches the body or is ingested requires a

product label listing ingredients. Does your product labelling comply with Queensland food labelling requirements?

http://www.health.qld.gov.au/foodsafety/standards_code/labelling.asp

Yes.

“Coffee, Water, Caramel Flavouring, Milk, Soy, Lactose Free (type to be highlighted).

Food items only:

2. Does your product comply with food handling procedures including gloves if touching unpackaged foods such as fruit for smoothies, hot dogs or cakes/biscuits?

Yes. Gloves will be used when making the products.

All items

How are you transporting the food, beverage or item touching the skin to marketday?

Is refrigeration or heating required for storage during transport or at marketday? If so please state the details.

All beverages are to be transported in coolers with ice on the day.

We will have paper towel for any spillages.

Cold Brew – To get you Through

OFFICE USE ONLY

License approved: ______________________________Tutor signature and date

27

APPENDIX 2: MARKET VISIT

Location of market: Kelvin Grove villageTime, day and date visited: From 9:30 to 10:30 21 August, 2015Team members present: ZIXIN WANG (Stephen)

Observations - Busy Stalls● What products were being sold?● Who were the customers? (describe)● How did they attract people’s attention?● How do they handle queues?● What consumer ‘need’ are they satisfying?

· Observations - Busy Stalls:

What products were being sold?

Foods, vegetables, fruits or snacks

Who were the customers? Everyone can be the customers for foods or snacks driven by hungry especially in the lunch hours. In this time, more people prefer having food to consuming other goods. The customers for vegetables and fruit are mainly housewife, young couples or some residents living around here.

How did they attract people’s attention?

Foods and snacks stall mainly use delicious odour and attractive pictures to get people’s attention.Vegetable and fruit stalls are on the other way. They mainly used a big sales sign to attract customers like 2 pineapples for 4 dollars. Also they set many row and column in their stall. So, the customers will spend more time in the stall.

How do they handle queues?

Some foods stalls may spend some certain time for cooking. So, the staff will give customers a number ticket so that customers could walk away for a few minutes and then come back for picking up.Vegetable and fruit stalls just try their best to charge to avoid the lone line.

What consumer ‘need’ are they satisfying?

Most of consumers are happy with the goods here especially in the relax weekend.

Observations – Non-busy Stalls-What are their products?-How do staff respond when people walk past? (ignore them, make eye-contact)-Why do you think their stall is not busy?


-What could they do to improve sales?

What are their products? Clothes

How do staff respond when people walk past?

They make eye-contact with every customers on the street even though few people come in to have a look.

Why do you think their stall is not busy?

The stallholder just sits there and reads books. People may don’t have enough time for selecting clothes in this busy market (people might need time to try on clothes). Some clothes are used clothes. Customers can purchase a new one with an inexpensive price.

What could they do to improve sales

Choosing a better location in the market and providing the changing place for people. Or they can provide a really cheap price which is below the price in store.


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