Coffee

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Table of contents:

Contents
Introduction Vision and mission List of competitors Objective of project Marketing strategies Market segmentation Target market Brand positioning Pricing, promotion, distribution Action programs SWOT analysis Pest Analysis Media plans Budget split T.V add budget planning Spectacular budget planning Streamers budget planning Posters budget planning Vehicles/ furniture and wall and glass murals budget planning Print budget planning and Summary of Total budget planning Conclusion & recommendations Summary of the project

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Introduction of ³Coffee Break´
Back ground of the project: We are going develop the marketing plan including advertisement and promotion plans for new coffee chain business in Pakistan. In consideration with this we will develop and introduce new retail coffee brand like Starbucks. In this project our main focus is media plan for our brand specially the Art works and outdoor requirements in advertising. Organization¶s business: We have choose the coffee chain advertisement and promotion campaign of new brand coffee chain in Pakistan in which we want to make our final term project according to the project outline given to us. By keeping the competitive structure in view we will do design Logo & Tagline of Product/Service. Write the Business Mission Statement, Vision Statement, Values. Define 4P¶s Product and all those things written in project guide lines. Pakistan is a tea culture. However with time we have seen Pakistan opening its doors to the coffee culture. Coffee culture has been so fast in spreading its wings with new coffee outlets opening left right and centre in Pakistan. These coffee shops have played an important role in introducing coffee to the masses in Pakistan. Now that coffee awareness has grown to such extent tea might finally have competition. Younger generation in Pakistan definitely prefers coffee over tea. This is not only because coffee
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is more hip than tea but also because coffee is more helpful in keeping energy levels going than tea ever has been. Professionals in Pakistan who need to be on the go for long hours are fast quitting the frequent tea breaks with fewer coffee breaks. In the markets in Pakistan there are many varieties of instant coffee mixes available. Ironically now in Pakistan making tea is considered more difficult now that is how intensely coffee culture has taken over. In addition usage of coffee in everyday products especially bakery products has become very frequent. Use any coffee mix brew it in hot water, sprinkle with nutmeg, you can add sugar later according to taste. Scoop ice cream on a pan over low heat for almost three minutes then pour it over the brewed coffee. Top it with whipped cream and enjoy your coffee in the most unusual way.

Vision:
To provide quality coffee on reasonable prices and become largest coffee chain server of Pakistan .

Mission:
The coffee break will become the foremost coffee shop in Pakistan; we will serve a perfect product at a very reasonable price which makes people refresh with unique taste .

Objectives:
y y y y y y To become largest coffee chain server of Pakistan. To fill the market gap of coffee To cover the demand of coffee in Pakistan To earn more profit by serving quality coffee Maintain the quality of coffee Provide coffee through car thru Provide coffee through coffee kiosks in public places To provide awareness about coffee.

y y

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List of competitors:
y y y y y y Nescafe Tea, coffee Nestle tea, coffee Gloria jeans coffee Tapal tea Supreme tea Vital tea

Objective of project:

The main objective of this project is to make an affective promotional plan for our product, according to marketing strategies. Coffee Break is our product which we will advertise by advertising mediums like bill boards, posters, t.v add, print media, wall and glass murals, streamers and floats. To fulfill this objective the budget of 70 million is given to us whom is very appropriate for advertising on these mediums. After that we have to analyze the territories regarding reach and frequency, splitting areas and to cover more areas.

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Coffee break (coffee chain)
Slogan : Great coffee for great people

Marketing strategies of Coffee break (coffee chain)

Hot drinks (Coffee) saw good growth in 2009, despite price increases coupled with a simultaneous decrease in spending power. This increase in prices was mainly due to a rise in raw material and commodity costs and, in particular, in milk and sugar prices. Consumption in rural areas has increased a lot in recent years within hot drinks, particularly consumption of tea. In addition to this, the packaged hot drinks market is still not mature or saturated; therefore it is constantly growing, mainly as it attracts consumers away from unpackaged hot drinks.

Market segmentation strategies:

We make segments on the basis of demographics, behavioral and Geographical basis. This brand hits the segment of middle and elite class People between age 16 to 55 like to consume coffee near to their working area to get refresh and work again, so the most feasible place for coffee break is near to working areas like offices area, universities, shopping malls, and most of the people like to buy coffee from drive thru which is easier for them to get coffee.

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Hot Drinks Forecast Largely Positive: Consumer price sensitivity in Pakistan is expected to hamper coffee s performance during the forecast period. However, given that tea consumption in Pakistan is among the highest in the world, any slowdown in coffee volume sales is unlikely to have long-term consequences for hot drinks, with consumption expected to pick up as consumer spending power increases. In addition, coffee has good growth potential, with consumers developing a taste for the product, with the influx of international brands, new varieties, product innovation and an increase in the number of coffee shops all helping to promote a coffee culture in Pakistan.

Target marketing strategies:
We targeted the market with an undifferentiated marketing; our coffee is available for all people. The most target market is people ages by us are young and adults. Another targeted segment is providing nice and relax place to the customers where they can have chat and enjoy smooth music and having coffee which present their life style. For the middle age people it provides a place where you can relax, have a chat and read a book with small healthy snacks and great coffee. For the coffee lovers it provides trendy, fresh new developed coffee with high quality. For the atmosphere lovers it provides a great third place. Target markets are office going people, students, house hold individuals, all ages of persons are targeted.

Brand positioning:
Our brand positioning based of brand personality, the quality of our coffee makes people to remember our brand in their minds, long term commitment to serve coffee to the consumer with rewarding attributes makes brand more effective in the market, as people use our brand they become aware of new coffee tastes. The basis of our brand positioning: 1. Brand Attributes: The brand delivers through features and benefits to consumers. 2. Consumer Expectations and preferences: What consumers expect to receive from the brand and what customers prefers in coffee. 3. Competitor attributes: What the other brands in the market offer through features and benefits to consumers. Positioning strategy of the competitors like Gloria jeans, mc Donald coffee and other brands. 4. Price: our prices are mush suitable against competitors. 5. Consumer perceptions: The perceived quality and value of our brand in consumer¶s minds.
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Pricing strategies:
The prices strategy of coffee break : large cup PKR 100, small PKR 60, which is most suitable for the middle and elite class, this pricing strategy, is very prominent against coffee competitors in Pakistan, Gloria jeans offers a cup of coffee for PKR 350 ($4), which is much higher then our brand.

Promotional strategies:
Coffee break s promotional activities includes print media promotion, electronic media promotion, outdoor media activities which includes billboards, floats, streamers. communication mix includes: personal selling, direct marketing, personal relation, advertising, internet marketing.

Distribution strategies:
We are offering coffee with consideration with the easier way to reach our consumers, for example we make out outlet kiosk of coffee break on the road side, coffee break , car thru. Our Distribution channels are, coffee beans comes from whole sale market to our H.Q in Lahore then distributed the quality coffee beans to each and every out let, they crush them selves and maintain the taste and serve the ultimate consumers.

Action programs:
We planned to implement out strategy effectively in 15 days campaign, we uplifts out billboards, posters and on air television add 1st which influence people that new coffee comes in their city, we targets 3 cities Karachi, Lahore and Islamabad. Then we uplift streamers, run floats media advertising and wall and glass murals, which makes a lot of sense in people about our product.

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SWOT analysis:
Strengths: y y y y y Coffee used as refresher for working people so people buy it in more quantity. Business can start within adequate budget High quality coffee offer by Coffee break . Low competition Pakistani People always welcome newcomer in the food business.

Weaknesses: y y y y y Not much usage of coffee relative with tea in Pakistan Lack of awareness about coffee Fluctuation in prices of coffee item Uncertainty in Pakistan s economy situation Limited Seasonal trend, people use more coffee in winter

Opportunities: y y y y New trend in coffee serving, through car thru, kiosks cum outlets, fast delivery etc. New tastes of coffee offered to people Create Innovation in technology of coffee maker machines. Franchising

Threats: y y y y Security issues Competitor s threats Seasonal threats, floods, earthquakes, rainfall etc. Economical situation is fluctuating in Pakistan.

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Pest analysis:
Political condition has some influence on retail coffee business so there are chances of variations in the prices of the coffee in Pakistan which influences coffee business to fluctuate the prices, this can become bad impact on the mind of the consumers, other bad situation is the security problems in Pakistan, people feel fear to come out from home to enjoy coffee. Economical situation of Pakistan is not predictable which cannot influence coffee business to make sustainable pricing strategy for long time, due to change in pricing, brand image can be disturb in the market and consumer get frustrated from changing in the prices. Social norms support the coffee business, which is the most positive thing , people like to purchase coffee, consume coffee, serve coffee, and pay for quality coffee, which makes this plan prominent and profitable, all ages of people likes to drink coffee whether they are patients, or fit person. Technological factors play vital role in retail coffee business, coffee break used latest coffee machines in their kiosks type outlets, which makes coffee efficiently and quality coffee in very less time, technology makes this business easier and makes service more faster.

Competitor s analysis: The market for Hot Drinks in Pakistan increased between 2001-2006, growing at average annual rate of 3.9%. The leading company in the market in 2006 was Unilever. The second-largest player was Tapal Tea with Nestle S.A. in third place. Nestle dominated value and volume sales of coffee in 2009, while Tapal Tea , with Unilever Pakistan Ltd in second place. While international brands accounted for a large portion of sales, domestic player Tapal Tea is a domestic phenomenon, a strategically adept operator that supplies high-quality products. Smuggled tea, however, continues to drag on sales and accounts for a major proportion of hot drinks consumption. But there is now retail outlet of them which offers coffee or tea in Pakistan.

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Atmosphere:
Quality of the food and atmosphere are the two things which attract the customers. So the continent atmosphere which serves as a meeting place rather than food place. The customers feel relax while having coffee there. According to the Allegra 1 survey Cafe Nero was rated one of the best group for the atmosphere. This is also one of the reasons for its success. It provides atmosphere according to the area where it is situated. For example in the residential areas it provide with the sofas, armchairs, newspaper and books for the customer to create gathering point. The timings are also set according to the area.

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Media plan of Coffee Break
Writing of Creative Brief & Media Brief (Working as a company and Agency at the same time): Our brand Coffee break offers quality coffee to consumers, but to attract more customers we have to develop advertisement plan, we interact with the add agency name 4th Dimension to develop art works on our creative brief. Our campaign is for 15 days all over the Pakistan in which we cover electronic media, Outdoor activities and Print media are included. Creative brief and SCRIPT of T.V Add: We have shown working environment in our T.V add, one person get instructions from his boss, which is difficult to complete work with in time limit, due to work a lot of burden he feel tired and just going to sleep, than he call to get coffee break , he take a cup of coffee break and get refresh and start working with more pace, he complete his work with in time limit given by boss and boss praise his effort. Our communication manager gives creative brief to add agency about bill boards and posters and streamers in which we reactive some attractive art works which shows our brand name logos and information about our business. Generate Artworks for Electronic, Outdoors and Print (Message/Communication Formation): We developed our art work from an Add agency name 4th Dimension , they create an attractive billboard and posters and T.V add for Coffee Break , these adds contains different messages, different for T.V adds and Different for print media and for Out doors.

Deciding on Reach, Frequency, and Impact:

We decide to execute out outdoors on those locations where the reach and frequency will be high enough which makes people to buy our product.

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Make Media Plans for Electronic, Outdoors and Print:
We will conduct this advertising campaign for 15 days, We like to execute outdoors plan: Hoarding and billboards and posters on DHA area Lahore, In we prefer to execute billboard on Allama Iqbal Airport road, on the bridge to Allama Iqbal Airport, farozpur road, main boulevard road, cover under passes with bridge panels (Doctor hospital, campus, Dharupura underpasses), Streamers on DHA road, Model town link road, Thokar Niaz baig road, Qazzafi stadium road and main boulevard road. For print media we cover these news papers and magazines: The news, Dawn, Jang and nawa-e-waqt, Akhbar-e-Jahan. For Electronic media we buy air time from Geo T.V and News, Geo super, Ary News, Ary digital, Express news, Dunia T.V, hum T.V, ten sports, and Dawn news. Choosing among major media types and split allocated budget (Rs.50 70 Millions for One Campaign):

Budget split:
PKR 32,625,000 for T.V adds. (32.62 million) PKR 22,375,000 for bill boards and posters and streamers. PKR 7,500,000 for vehicle wrap and furniture wrap, glass and wall murals. PKR 7,000,000 for print Advertisement: magazines, newspapers and broachers. PKR 500,000for Add Agency (4th Dimension). Total Budget : 70,000,000 (70million)

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We decide to split our budget as follows:
Budget for T.V Add: For t.v add PKR 2,500 per second for prime time slot air time, for 1minute 27 sec (87 sec): one t.v add costs PKR 217,500 for once and for 5 T.V channels 217,500 x 5= 1,087,500 once on 5 channels. We decided to make our T.V add on-air 2 times in a day on 5 channels which costs: 1,087,500 x 2 = PKR 2,175,000 per day cost of 5 channels airtime. For 15 days campaign 2,175,000x15: PKR 32,625,000 for 15 days.

1: Spectacular/bill boards and panels:

PKR 22,375,000for Spectacular/bill boards (60 x 20, 1200 sq feet):

22 Targeted Regions:
Lahore A: D.H.A, Airport, Cantt Area, Fortress stadium, jail road. Lahore B: Thokar Niaz Baig (Near Uni. Of Lahore), johar town (Shukat Khanum), model town (Link road), Iqbal town (Wahdat road). Lahore C: Chuburji (Round about) , Badami Bagh (Bus Station). Karachi A: Submarine Churangi, Korangi road, Clifton. Karachi B: Gulshan, Defence Road, Khardar panel Airport road. Islamabad: Blue area, Air port road, Muree road, Parliament house road.

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Total 22 Sites in 3 cities: Estimated Cost of spectaculars/Billboards:
Contents Skin printing cost (24,000x22 sites) Vendor charges (250,000x22) Taxes 16%, GST 1% (10,880x22) Total cost Budget (PKRS) 528,000 5,500,000 239,360 6,267,360

2: Streamers cost: PKRS. 8,053,820 divide into 3 cities:
Regions:
Lahore A, Lahore B, Lahore C: 2,684,606 (main boulevard, canal road, motorway interchange, mall road) Karachi A and Karachi B: 2,684,606 (Gulastan.e.johar, gulshan, defense road, airport road, Clifton) Islamabad: 2,684,606 (Islamabad interchange, Supreme Court road, aabpara road, muree road)

Summary of streamers cost:
Regions Lahore (A) Lahore (B) Lahore (C) Karachi (A) Karachi (B) Islamabad Total Budget 2,684,606

2,684,606 2,684,606 8,053,820

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3: Posters cost: PKRS. 8,053,820 divide into 3 regions: Regions:
Lahore A, Lahore B, Lahore C: 2,684,606 (front of main shopping malls, public places like fortress stadium, race coerce, Lahore zoo, restaurants, liberty market, Anarkali market, ichra market, defence market) ) Karachi A and Karachi B: 2,684,606 (Gulastan.e.johar, gulshan, defense road, main shopping malls, Clifton sites) Islamabad: 2,684,606 (shopping malls, aabpara market, aabpara road, muree road)

Summary of posters cost:

Regions Lahore (A) Lahore (B) Lahore (C) Karachi (A) Karachi (B) Islamabad Total

Budget

2,684,606

2,684,606

2,684,606 8,053,820

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4: Vehicle wrap/ wall and glass murals: cost PKRS.7,500,000:
Divide into 4 items:
Vehicles/floats: 2,500,000 (Fortress stadium area, mall road, model town link road, canal road, iqbal town, Karachi : near sea side, Islamabad specific routs) Wall murals: 2,500,000 Glass mural: 2,000,000 (Siddique center, plazas in model town link road, Pace of Lahore, Karachi and Islamabad plazas) Furniture wrap: 500,000 (Lahore bus stops: canal road, model town, iqbal town, jail road, ferozpure road, Karachi and Islamabad bus stops).

Vehicle wrap/ wall and glass murals cost summary:

Items Vehicles/Floats Wall murals Glass murals Furniture wrap Total

Budget (PKRS) 2,500,000 2,500,000 2,000,000 500,000 7,500,000

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5: Print media: cost PKRS.7,000,000:

Magazines, newspapers and broachers are tools used in print media, we split cost into 3 classifications: Summary of Print media:
ITEM Magazines Broachers Newspapers Total Budgets 2,333,334 2,333,334 2,333,334 7,000,000

For print media we cover these news papers and magazines: The news, Dawn, Jang and nawae-waqt, Akhbar-e-Jahan.

Summary of Total Budget Allocation:

Contents

Budget (PKRS)

Television add Spectaculars/billboards/posters Vehicles, furniture wrap, glass, wall murals Media Advertisements
Add Agency Total Cost

32,625,000 22,375,000 7,500,000 7,000,000 500,000 70,000,000 (70million)

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Conclusion:
The implementation of marketing strategies through advertising the product with appropriate budget will make Coffee break a successful product which can earn more profit than expectation, our marketing plan is very strongly design which uplift the Coffee break in positive direction and it will become word of mouth of Pakistani people.

Recommendations:
We can improve our media plan through effective use of budget, in that way we can use our budget on one type of advertising, like 1st advertise through t.v add then after 2 months we can use some other medium for advertising, it can save budget and get some ideas about people thinking about the product.

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Summary:

We have chosen the product of coffee chain for advertisement and promotion campaign of new brand coffee chain in Pakistan in which we want to make our final term project according to the project outline given to us. By keeping the competitive structure in view we will do design Logo & Tagline of Product. Our vision and mission shows the objectives of the product. The main Idea of this project is revolves around the advertising campaign of the brand, the analysis of raw data and the analysis of territories, splitting the budgets according to the frequency and reach allow us to evaluate the effectiveness of the product promotion and ideas from people. In this project we targeted 3 cities Lahore, Karachi and Islamabad. We further categorize Lahore into A, B, C, and Karachi into A and B and Islamabad treat as one Region. This allows us to split our budget into effective way and different areas are targeted through this strategy which spread the reach and frequency into more enhancement of the product. The T.V add is the main medium for our Campaign which will on air on 5 different T.V channels which increases the reach and frequency among people, this campaign will run for 15 days. Other mediums like billboards, streamers allow people to watch add while driving, walking on the road as like wall and glass murals are the mediums which increases the frequency and reach, print media with different magazines, news papers and broachers increase the promotional activity regarding our brand. The budget of seventy million is very adequate to use on those mediums, our brand of ³Coffee Break´ require the attention of people, we make our art work just according to the product, when people see our advertisement, the feel of coffee thirst will increase and people willing to get coffee, that¶s why we offer coffee on coffee break¶s ³car thru´ and kiosks which can provide coffee very easily and quickly, this technique is very effective if we position our advertising in appropriate way.

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