The document analyzes Jumpin' Java Shop's social media marketing plan. It performs a Porter's Five Forces analysis, finding low bargaining power of buyers and suppliers but high threat of substitutes and rivalry. A SWOT analysis identifies strengths like community focus but weaknesses in social media presence. Goals include increasing traffic and satisfaction. Tactics propose discounts for social shares and engaging content. Key performance indicators to track include word-of-mouth, share of voice, conversation reach, and customer satisfaction.
2. PORTER’S FIVE FORCES ANALYSIS
• Bargaining Power of Buyers: Very Low Threat (Azarian, J., Kennedy, K., Steele, C., nd)
• The coffee industry is based around the buying behavior of individual customers
• Low switching costs between different brands of coffee
• Coffee drinkers can make coffee at home instead of buying it
• Bargaining Power of Suppliers: Very Low Threat (Azarian, J., Kennedy, K., Steele, C., nd)
• Industry inputs are standard, which allows companies to switch quickly between suppliers
• Threat of New Entrants: Low Threat (Azarian, J., Kennedy, K., Steele, C. nd)
• Larger companies in the market have a competitive advantage and the majority of the market
share
• Strong brand identities
3. PORTER’S FIVE FORCES (CONT.)
• Threat from Substitutes: Very High Threat (Azarian, J., Kennedy, K., Steele, C., nd)
• Multiple substitutes for coffee (tea, hot chocolate, & energy drinks)
• Customers can reproduce product at home with little to no switching costs
• Rivalry Among Existing Players: High Threat of Rivalry (Azarian, J., Kennedy, K.,
Steele, C., nd)
• Mature market with no more rapid growth
• Limited product differentiation due to lack of complexity
• Brand identity- huge brands command the vast majority of market share
4. SWOT ANALYSIS
• Strengths: Cervitude (nd)
• Close knit neighborhood to foster sense of community from local customers
• Visible location to increase foot traffic and drive-by traffic
• State of the art amenities (WIFI, High Definition TVs)
• Strong leadership
• Weaknesses: Cervitude (nd)
• Lack of social media presence
• Limited funding
• Limited brand awareness
6. GOALS
• Increasing word-of-mouth recommendations
• Creating new product ideas
• Increasing traffic to the store
• Improving customer satisfaction
7. TACTICS
• Offer customer discounts for “shares” and “likes (Weisberg, 2018)
• Run contests
• Provide engaging content that resonates with coffee drinkers (upcoming promotions,
etc.) (Weisberg, 2018)
• Ask customers to post about the business on Facebook (Weisberg, 2018)
• Engage with your customers
• Share customer feedback to create an open forum for discussion (Weisberg, 2018)
9. STRATEGIES
• Listening- Gaining valuable insight from customers about the competition and
customer preferences
• Interacting – Communicating with customers and providing a “human” element as
the face of the brand
• Engaging- Creating content that resonates with coffee drinkers of all types
10. PLATFORM-SPECIFIC TACTICS
• Facebook
• Post relevant content daily
• Initiate promotions to increase your
following and engagement rates
• Encourage user-generated content with
promotions
• Create groups centered around
community involvement
• Twitter
• Promote brand-related hashtags
• Engage with customers daily
• Share relevant content daily
• Respond to customer service inquiries
in a timely fashion
11. METRICS: SOCIAL MEDIA ROI
• Word of Mouth (Barker, M., Barker, D., Bormann, N., Roberts, M., Zahay, D., 2017)
• Share of Voice: SV= Brand mentions/Total Mentions
200/1000=.20 20%
• Conversation Reach: CR= Total People Participating/Total Audience Exposure
300/1000= .30 30%
• Satisfaction Score: SC= Customer feedback/Total customer feedback
25/75= 0.33 33%
12. JUMPIN’ JAVA SHOP: A FACEBOOK
PRESENCE
• The Jumpin’ Java Shop’s Facebook presence helps the brand connect with its
customers to: promote the brand, create buzz surrounding the store promotions,
inform customers of upcoming events, highlight community success stories, and to
foster a sense of community
• Provides a medium to engage with customers
• Facilitates group creation and allows unsolicited feedback from customers
• Provides a medium to improve customer service and target specific segments of
customers within the market
13. REFERENCES
• Barker, M., Barker, D., Bormann, N., Roberts, M., Zahay, D. (2017). Social Media
Marketing: A Strategic Approach. 2nd Edition. Boston, MA. Cengage Learning
• Azarian, J., Kennedy, K., Steele, C. (n.d.) U.S. Coffee and Snack Shop Industry: A Comparative
Analysis of Starbucks and Dunkin’ Donuts. Retrieved from
https://sites.google.com/site/starbucksanddunkindonuts/porter-s-five-forces
• Weisberg, E. (2018). 7 ways to promote your Facebook Business page for free.
ThriveHive. Retrieved from https://thrivehive.com/how-to-promote-your-facebook-page-for-
free/
• Cervitude (nd). Coffee Shop Café SWOT Analysis. Cervitude. Retrieved from
https://cervitude.com/2018/05/08/coffee-shop-cafe-swot-analysis/