Marketing plan for a cafe

1. Case 4:
The Daily
Grind
Elham Amini
May 2017

2. Content of marketing plan
• Executive summary
• Situational analysis
• Marketing strategy
• Financial projection
• Implementation control

3. Executive summary
The daily grind is a local café located in Cuba street in New Zealand.
The café aim to provide a comfortable atmosphere for its customers
and become the first choice for the people in the area. This would
happen by serving high quality coffee, building firm relationship with
customers and providing a relaxed environment. Besides coffee, the
café also serve cakes, snacks and healthy breakfast. Most students and
office workers prefer to have breakfast in the café to stay fresh in the
morning. Our price is reasonable and competitive. This marketing
plan includes our vision, our strategy and financial plan for running
this business.

4. Situational analysis
– It recognized the fact that a comprehensive, strategic marketing
plan is required to ensure profitability and success.
– Situational analysis also include:
• Project at glance
• Market needs
• SWOT analysis
• Key to success

5. Project at glance
: Daily Grind
: Coffee, snacks, Tea, Breakfast
: Cuba Street, New Zealand
: 30 costumers
: Coffee bean, egg, tea,…
: 3 worker + Manager
:130000 $
Shop name
Product
Location
Capacity
Raw material
Labor
Cost of Project

6. The Daily Grind menu contains a wide variety of coffee, which are the best
tasting one in the area, based on new Zealanders taste and culture. This will be
achieved by using high-quality ingredients and strictly following preparation
guidelines. Each of the drinks will be offered with whole, skimmed, or soy milk.
Each of these coffee beverages is based on a 'shot' of coffee, which is prepared
in the coffee machine by forcing heated water through ground coffee at high
pressure. Such espresso shots are combined with steamed milk and/or other
additives like cocoa, caramel, etc. Proper preparation techniques are of
paramount importance for such drinks. A minor deviation from the amount of
coffee in the shot, the size of the coffee particles, the temperature of milk, etc.,
can negatively affect the quality of the prepared drink.
Product / Service

7. • Flat White
• Lattes
• Cappuccinos
• Americanos
• Espressos
• Long blacks
Besides different kinds of coffee, which are our main focus, the daily grind
also serves cake, snacks, breakfast and herbal teas.
The reason is that students normally don’t have time to have breakfast at
home, while it is necessary for them if they want to be productive. So, we
provide healthy breakfast which is in three categories: cold, warm and
English breakfast.
Product / Service
We would offer the following:

8. • To be recognized as serving the highest quality coffee
in the area. ( getting 5 star in people review)
• To provide a place which is cozy, and at the same time
chic for our guest.
• To be the First choice for people in the area.
• Increasing sales by 30% in a year
• Build a good relationship with our lovely guest.
• To be environmentally friendly.
Objectives
Not customer, you are our lovely guest 

10. • Experienced Manager
• Location ( The café is located in a
crowded area which is full of potential
customers)
• Staunch relationship with customers.
• Local supplier which decrease the cost
• High quality ingredients is available
• Friendly and different decoration
• Having a complete data base about
customers
• People in the area love coffee.
• They are mostly prefer to have coffee
outside.
• Proximity to university, are galleries
and cinema.
• Juvenile, stylish and at the same time
low wage student workers are
available.
• Seasonal customers.
• Fierce competition in the are.
• Substituted beverage .
• Low investment at the start.
• Losing the chance of be the first café in
the area.
• Limited menu.
• Low capacity in the café.

11. According to SWOT analysis, it can be said that, he should
minimize its cost and prepare a very high quality coffee in a relaxing
atmosphere in order to survive among competitors. Moreover, he
should consider customer experience greatly. He could design
Customer Club and try to ascertain about his customer personal
interest. For example, he can gather students Facebook account and
offer them incisive promotion. He can set up a website and
application, also social media account and invite its customer to post
their idea about their experience in café.
SWOT Analysis

12. Quality
People in the area are meticulous about quality, which definitely plays an important role in
the recent growth in gourmet coffee.
Running the café base on knowledge
Customers not only need high quality coffee, but need attention, a friendly environment,
and like to eat somewhere which is green(eco friendly)
While Baristas in the area don’t think running a café need knowledge, the daily grind aim to
run the café based on knowledge and discreetly pay attention to all aspect of customer
needs.
Convenience
People usually want to have coffee or some snacks in their short break time, so availability of
café would be a good opportunity.

13. • The greatest locations
visibility, proximity to university, convenient access.
• The best products
freshest coffee beans, cleanest equipment, premium serving containers,
consistent flavor.
• The friendliest servers
cheerful, skilled, professional, articulate.
• The finest reputation
word-of-mouth advertising, promotion of our community mission of
environment friendly.

14. Marketing strategy
A presentation of the broad strategic marketing approach to meet the plan’s stated
objectives.
This section addresses these questions:
Based on the firm’s goals, their resources, and the market, what are the key
strategies the firm should implement?

15. To be a place for finding
tranquility, and serve a
taste no one, no where
else can find.
Vision
Serve high quality drinks
to our highly valued
customers in a relaxed
and conducive
atmosphere.
Mission
Be friendly
Love environment
Be passionate about our
work and our lovely
guests.
Values

16. Location
Cuba street, New Zealand

18. By placing café close to the Cuba street, George will focus
its marketing activities on reaching the University students
and faculty, people working in offices located close to the
coffee bar, teenagers, visitors of Papa museum and its staff,
visitors of Adam art Gallery and its staff, Opera house and
Reading cinema customer and staff. Since coffee
consumption is universal across different income categories
and mostly depends on the level of higher education,
proximity to the University, museums, art galleries, cinema,
and opera house will provide access to the targeted
customer audience. The chart and table below
approximately outline the total market potential (in
number of customers)
students and faculty
office workers
Galleries visitors
others
Target Market

19. • We do not waste money on TV and newspaper ads.
• We focus on social media and we believe our excellence soon will be local people word of mouth.
• We design interesting social media contest and award winners, for example we want our guests take a photo
with our specially designed wall and share it with #My_daily_grind_Wall
Advertisement

20. Positioning
The Daily Grind café will
position itself as a customer
oriented coffee house that
has an artistic atmosphere.
This is a competitive
advantage because based on
market research no café in
the area that has worked on
customer loyalty and artistic
design.

21. Marketing mix
– Pricing:
The daily grind café price policy is based on cost-based pricing policy. After calculating all costs
we consider a marginal profit of 20%. Also Our price can compete with other café in the area.
_ Distribution:
Expression products will be dispended from our one and only shop. we provide home delivery.
– Promotion :
our café is near to university, art galleries,… which incredibly lift our potential customers.
– Customer services :
we provide products base on customer’s taste and preferences.

22. Financial Plan
Fixed Cost Prediction early Cost
Rent fee 50000$
bill 5000$
Design and decoration 10000$
Kitchen tools 10000$
Employee Wage ( 3 people) 18000*3=54000$
Total Fixed cost 130000
Variable Cost
30$/100( cup of coffee) 0.3 $ per cup of coffee
(33.45/2500)0.5 (sugar cost) 0.006 $
.3*.4 (lid) 0.12 $
Breakfast ingredients Average 8$
Item Prices
Coffee Average 5$ / cup
cake 10 $
Breakfast 12 $
Approximately, each customer spend 9$ each time.

23. B.E.P TR=FC+VC
X*9$=130000+X*8$
X= 13000 customer
We projected that each customer roughly spend 9$ each
time, so after 13000 customer We reach the break even
point.
Based on market research we predicted that we can
attract 100 customer each day, so after 5 month we can
make profit.

24. https://www.google.com/search?q=cuba+street+wellington&oq
=cuba+street+&aqs=chrome.1.69i57j0l5.6773j0j4&sourceid=chr
ome&ie=UTF-
8#q=cuba+street+wellington+cafe+vivian+street&rflfq=1&rlha=0
&rllag=-
41295126,174775739,72&tbm=lcl&tbs=lrf:!2m1!1e2!2m1!1e3!3
sEAE,lf:1,lf_ui:9
http://media.newzealand.com/en/story-ideas/new-zealands-
dedicated-coffee-culture/
http://www.nzherald.co.nz/lifestyle/news/article.cfm?c_id=6&o
bjectid=11463370