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CJ’S Bagels
Project 2
May 5, 2015
Jasmine Barr, Ryan Dalton, Adam Perkins, Rebekah Schmidt, Elizabeth Smithson, &
Tricia Trimble
“We don't just want your input, we thrive on it. Listening to you -our guest- is how
we improve. Here is your chance to tell the CJ's team what's on your mind- good or bad.
We want to hear what you have to say. And rest assured your comments will be taken to
heart. Some of our greatest improvements have come as a direct result of listening to our
guests. So go ahead and talk to us. We're listening! And thank you for taking the time to
write.” (CJ’s Bakery Contact Us)
Situational Analysis: External
Economy:
Recently, CJ’s Bagels has been the busiest it has ever been. Because Ankeny is a
fairly wealthy geographic location, CJ’s Bagels was not as negatively impacted as many
restaurants during and following the recession in 2008. Since March of 2014, the
unemployment rate has dropped from 6.6% to 5.5%. This, along with the fact that hourly
income has increased over 50 cents in the past year, shows that more people are earning
more money (U.S. Bureau of Labor Statistics). Both of these factors, along with the stock
market’s recent increase have given consumers more disposable income to spend on stores
and restaurants like CJ’s Bagels.
March 2015 stands as a historic month for restaurants. For the first time in U.S.
history, consumers have spent more on restaurants than groceries. This past March of 2015,
there was $52,349,000,000 spent on restaurants while only $49,688,000,000 spent on
groceries (Udland, 2015). This comes out to $164 and $155 per American, quite a large
spending difference for the roles being switched for only 1 month. Between increased
disposable income and people changing their spending habits, the line at CJ’s has flooded
out the door during rush hour.
Competition:
The main direct competitor to CJ’s Bagels is Brueggers Bagels. Brueggers
specializes in many different types of bagels and cream cheese spreads (About us).
However, the main differentiator between CJ’s Bagels and Brueggers, according to Robb
Riggle, is that CJ’s Bagels makes their bagels fresh every day. CJ’s Bagels makes sure to
promote that everything is made fresh daily because it is a huge part of their niche of being
a small, local company. Another direct competitor is Panera Bread. Panera specializes in
many different types of bread allowing for a wide variety of bagel options. Panera, like
Brueggers, is a chain restaurant that tends to be expensive for the quality and quantity of
food. However, both are very well known for good bagels. Robb stated that people in
Ankeny generally choose CJ’s Bagels over Brueggers Bagels and Panera Bread because it
is local and has such a different atmosphere that only Ankeny and surrounding residents
can experience. Thus, a lot of people choose CJ’s Bagels because is a place where everyone
knows everyone and a great place to hang out.
Starbucks, another direct competitor, is best known for their coffee, but also carry a
wide assortment of breakfast foods. They are also considered to be a smaller competitor of
CJ’s Bagels because most customers are likely to swing through the drive thru and possibly
buy a pre-made food item. Starbucks does not solely focus on the freshness of their
products, but rather on the low calorie items they carry, such as their cage-free egg whites,
reduced-Fat Turkey Bacon sandwich on an organic English muffin, or their vegetarian
options (Food).
Hy-Vee or other retail outlets are indirect competitors for breakfast restaurants.
People may choose to shop at retail stores such as Hy-Vee for their morning breakfast food
as opposed to eating out at CJ’s Bagels. A second indirect competitor is when people do
not eat breakfast in the morning, and therefore, do not spend any money. This is a large
threat for CJ’s Bagels, and growing. ((Figure 2 shows the growth rate in Americans
skipping breakfast)(reports)). Those who are choosing to eat breakfast are helping increase
the sale of bagels; in a survey 61% of adults are eating bagels in the morning. While
another 50% adults say that fresh bagels are the best, which is increasing the sales and
declining the sale of other bread items. These stats are unfortunate for Panera as they thrive
on selling bread slices as a side option (New Yorker bagels). Thus, CJ’s Bagels marketing
tactics need to change consumers’ attitudes that breakfast is important and a great way to
start off the day. It is essential to eat breakfast daily, and eating at CJ’s Bagels makes for a
great morning.
Technology:
Technology is becoming increasingly important for any small business in todays
market. Besides the actual appliances used to make their products, CJ’s Bagels uses
technology to play a role in their ordering process and customer interaction outside of the
store. The bakery is not quite on the level of technological integration as they should be,
but they are doing many things right.
CJ’s Bagels implements technology the best throughout their menu ordering
options. Customers can place small and large orders in person, on the phone, and online.
Being able to order in person and over the phone has been the standard in this industry for
many years, while the option of online ordering for small businesses continues to become
more prevalent. To create an online ordering and payment tab on a website is very
expensive and hard to do for a small business, so CJ’s Bagels uses a link to the host website
GimmeGrub.com to make the ordering process easier for the company and customer. Host
websites, like GimmeGrub.com, create a custom website for small businesses that integrate
simple billing procedures and even some in store marketing materials. They charge a start
up fee and take a small percentage of sales made on the website. When an order is placed
online, GimmeGrub.com will make sure an order gets to the restaurants within 3 minutes of
being placed. A customer using CJ’s Bagels online ordering option probably will not know
they are using an outside website because it is so well integrated. For small businesses,
outside websites for online purchases give an affordable alternative to creating their own
payment system.
The website for CJ’s Bagels has almost everything they need. It is a simple site with
links for online ordering, the menu, hours & location, gift cards, and a contact link. An
error that needs to be corrected is the listed hours that have changed. Instead of 6:00am to
8:00pm the website says they are only open until 2:00pm. If consumers are looking online
for the hours, then they are less likely to take the time to go the store location to see if the
online hours are correct. New management bought out the bakery and thus expanded their
hours. They need to update the website on this immediately. (Figure 5 shows the new
website design) The only link to social media on CJsBagels.com is for Twitter. CJ’s Bagels
has a decent amount of activity on Twitter with just over 300 followers. Cj’s Bagels’
Facebook has 2,800 likes and 1,160 users who have posted about being at the bakery so the
website definitely needs a link to the Facebook page. Customer interaction on Facebook is
excellent compared to Twitter. CJ’s Bagels needs to take the time to create all the social
media platforms to have a consistent image and message. Currently, each medium has a
different logo and a different alteration of the brand name.
Legal/ Political:
Small businesses always have at least a few legal hurdles standing in their way.
Restaurants have a few more legal obstacles because health certifications. Because it is not
a standalone restaurant and the strip mall it is located in is not owned by the company, CJ’s
Bagels avoids some of the certifications that go along with owning a building. The primary
concern for CJ’s Bagels is the Heal Code Serve Safe Certification. Robb Riggle says
obtaining this is not a problem because their facility and the business’s practices are up to
code and clean. Riggle also stresses the expenses needed to stay certified. Although the
$150 annual certification is not too taxing on the bakery’s profits, this expense can have a
more significant effect on a struggling restaurant. A few other legal things CJ’s Bagels
should be aware of is the city’s signage rules and wheelchair accessibility, neither of which
was expressed as an issue. CJ’s Bagels has no apparent political issues or influencers.
Sociocultural:
Consumers that spend money on bagel shops tend to be in the middle-income class
or higher. Bagels are considered to be an elite food item, consumed by higher income
households and individuals. Since bagels are expensive, consumers need to have disposable
income accessible. Robb Riggle described the consumer base that walks into CJ’s Bagels
as white, wealthy families. Robb mentioned that Ankeny is a very well off suburb that is
not diverse ethnically or demographically. Therefore, there is a very specific culture within
the bagel shop because most of the regular consumers live very similar lives.
There are trends in bagel shops on Saturday mornings. Often time’s high school
teens will come in before games or practice. Robb described that Saturday mornings are his
busiest time of the week. He sees ‘regulars’ often, which helps him maintain customer
relationships that are vital to future success.
Situation Analysis: Internal
Human Resources:
When CJ’S Bagels is looking to hire, they want employees who will treat customers
with respect. They expect employees to smile and ask how their day is going. It is very
important that the customer has an experience visiting CJ’s Bagels, that it is not another
stop on a list of errands. At CJ’s Bagels, you are not just anther customer; you are their
guest. This sets CJ’s Bagels apart from its competitors: building relationships with
customers and truly caring about them beyond bagels and coffee. This helps build the
image of a small town feel in a suburb of Des Moines. In a survey done by Parature State
of Multichannel Customer Service, 65% of 1,000 consumers surveyed said they’ve cut ties
with a brand over a single poor customer service experience (Morris). CJ’s Bagels
employees need to stay on task, word hard, and strive to execute efficiently and effectively
for the most growth possible for the company. When employees are intrinsically motivated
to see the company succeed, it helps CJ’s Bagels image immensely.
Growth Goals:
Robb wants to expand CJ’s Bagels into the Johnston area. His goals are to open up
a new location in surrounding areas allowing customers to choose different locations and
not have to travel to Ankeny. He foresees CJ’s Bagels growing in its customer base. He
wants to expand not only the frequency of the cliental but also the reach. If CJ’s Bagels
were to expand to Johnston and Urbandale, he would be able to reach and serve more
people, ultimately growing substantially as a company. Before extending CJ’s Bagels
reach, it is important to cut through the clutter of the competitors. By adding more
frequency when the local community thinks bagels, they will think of CJ’s Bagels a
welcoming experience. As CJ’s Bagels continues to target the younger generation
(generation y), they will be able to promote that bagels are the essential food that will kick
start the busy day. Eating breakfast helps the body function, focus and be more energetic
throughout the day, this goes for adults not just children (Healthy Children).
Attitude Toward Marketing:
CJ’s Bagels wants to be aggressive in their marketing strategy, but is not yet there.
There is a combination of not knowing exactly which direction CJ’s Bagels wants to go and
finding the money to take action. CJ’s Bagels is a small, local bagel store, which does not
have the funds to hire out a marketing professional or marketing agency to do their
marketing creative executions. All of the marketing strategy and implementations are done
through Robb Riggle and upper management. CJ’s Bagels has done very well in the past
mainly relying on word of mouth. According to Nielsen, 92% of consumers believe
recommendations from friends and family over all forms of advertising. Word of mouth
marketing and the American Marketing Association (AMA) decided to find out exactly
what brands were doing about that fact. In a recent study, 64% of marketing executives
indicated that they believe word of mouth is the most effective form of marketing. Only 6%
say they have mastered it (Whitler). However, they can be doing even better if their attitude
was more proactive on reaching an even bigger market more frequently through various
promotions.
Engaging CJ’s Bagels customers can be part of the conversation about their brand
and help strengthen their image as a company. In figure 1 in the appendix it shows that
85% of consumers will trust the reviews posted online if a local business is good or not.
Keeping track of the reviews online is another great way to engage with the consumer
about how to make the company stronger. Larger chains such as Bruggers and Panera
forget to listen to their customers. By becoming part of the conversation the company will
be about to equip their consumers, or give them reason to talk. Offering fantastic service
every single time a consumer walks in the door will give the consumer reason speak highly
of the company. With great customer service and quick speedy service this can really
brighten up any one’s day. In the final step, empower the consumer. Give them different
ways to talk and share, maybe they are not a very vocal person but allow them to show
their artistic/writing ability on a white board in the restaurant. This will allow a unique way
for consumers to spend their time as they wait. Doing something unique to allow the
consumer to express him or herself will give CJ’s Bagels another way to stick out.
Consumers remember random facts about a place or want to visit something that
distinctive. (Anderson)
Promotional Objectives:
The three main promotional objectives recommended for CJ’s Bagels are: 1.
Advertising to increase awareness in the Ankeny community ages 25-45 by 10% in the
next 6 months as measured by aided recall test.
2. Using personal sales to generate excitement in the community of people in the
area 30-55 with children in the next 9 months measured by the number of sales and loyalty
cards signed up for.
3. Incorporating direct marketing to establish CJ’s Bagels as the go-to restaurant for
bagels and coffee in 8% of customers aged 18-35 married or single with or without children
within a year as measured by direct inquiry.
At this stage, these objectives are merely for the current time. When the company
expands to more locations, other marketing objectives will be implemented into the
marketing strategy.
Promotional Budget
Establishing a budget is crucial to executing CJ’s Bagels strategies and achieving
the objectives in the stated time frame. This is one area, which results in many companies’
objectives not being completed. For CJ’s Bagels, they need to significantly increase their
budget for promotion in order to accomplish many of the things they want to achieve and
expand beyond what they currently have. Word-of-mouth has essentially carried CJ’s
Bagels up to this point, so they will greatly increase their customer base if they dedicate
more of their time and money to promoting their already popular product.
CJ’s Bagels needs to place additional advertisements in the Des Moines Register
newspaper more frequently. Acquiring 123 column inches in the Sunday Des Moines
Register over the span of a twelve-month period will cost $329.80, but the objective is to
be accomplished within six months, allowing the advertisement to be larger and attract
more readers’ attention. Having these larger advertisements will be crucial to attracting
attention to the newly implemented slogan, “Who says a bagel shop has to be plain”, and it
will lead to more awareness about the product with the aided recall tests.
Though placing television advertisements on local news channels seems to be
extremely expensive, it is vital to view promotion as an investment. CJ’s Bagels will
greatly benefit from this type of promotion; therefore, it is necessary. The television
advertisements will have the largest up-front costs, as a 30 second spot on the five o’clock
news for KCCI 8 would cost approximately $400, but this does result in a 4.3 ratings point
for people ages 25 to 54. If this is done about once per month and early in the week, this
will give consumers a visual image to see and use for remembering what CJ’S Bagels is all
about. This also provides CJ’s Bagels the opportunity of allowing customers to see as well
as here their new slogan they are rolling out. The advertisements within transit will provide
a large amount of consistent exposure to the Des Moines area through Dart. Dart allows
signs to be put on the street-facing side for just $183 over a three-month period, plus an
$83 production fee. Therefore, this will provided a great deal of exposure for a very
reasonable price.
It is also important for CJ’s Bagels to generate excitement in the community itself
as they promote themselves as a local establishment, so providing loyalty cards for
customers who consistently come back will greatly help retain people who come in for the
first time. Many people tend to expect some sort of loyalty program, so not having one
could deter some people away from the business. Using cards with a customer loyalty
program will also help to increase the sales for CJ’s Bagels because they will earn points
from each purchase, enticing them to keep coming back until they are able to get a bagel or
other item free of charge. The upfront costs for a customer loyalty program are costly, but
they are necessary in order to attract and retain customers. Generally, cards are priced from
$0.50 to $1.00, and the software required to use the cards will cost around $300 to $400 per
location. CJ’s Bagels is in just one location, so they will not have to duplicate the software
cost at multiple locations.
Trying to establish CJ’s Bagels as the go-to business for people looking to get a
quick bagel and coffee, giving out free coffee mugs will be a great tool in serving the
reminder role for them after they leave the business. While these mugs will cost a little
more money than normal, getting them into the hands of the customers will indicate an
increase in the number of patrons entering CJ’s, so it will pay off in the long run.
Customized coffee mugs can be made for just $0.65 a piece, so this a very small expense
for the long-run use they will provide in reminding people to continue coming back.
Along with all of these, the wrap put onto the van will cost between $1000-$2000.
The cheaper wrap of $1,000 will be chosen as this can accomplish the same effect without
spending the extra $1,000. In all, the budget for the next year for CJ’s will be just over
$2,500, assuming approximately 100 mugs are given out as well as approximately 150
loyalty cards being given out.
IMC Elements creative elements:
Direct marketing objective:
Establish CJ’s Bagels as the go-to restaurant for bagels and coffee in 8% of
customers aged 18-35 married or single with or without children within a year as measured
by direct inquiry.
To establish CJ’s Bagels in the Ankeny community we will have to use various
advertisements and engage regularly with customers through social media. Spreading the
message of freshly homemade bagels that are low cost and served by a friendly and
attentive staff. By doing so we are getting our brand into the minds of our current and
potential customers, allowing them to remember CJ’s Bagels whenever they feel hungry
and want to get something different and delicious.
Advertising Objective:
Increase awareness in the Ankeny community ages 25-45 by 10% in the next 6
months as measured by aided recall test.
In order to increase awareness in the Ankeny community-placing ads in more
locations such as the local news channel, in the weekly newspapers, and on transits, such as
inside a bus that travels to the community college. By placing ads in these locations it will
increase the recognition of the company not in the local community but also in
visitors/college students. In order for CJ’s Bagels to gain more awareness, they can create a
slogan that catches people’s attention such as “Who says a bagel shop has to be plain.”
With this slogan, CJ’s Bagels could also create different specialty advertising pieces such
as clothing, bags, or coffee mugs. By starting a catering section in CJ’s Bagels business
options, they will be able to grow awareness with advertising transit in their own vehicle.
(Figure 4: Van design)
A creative element CJ’s Bagels could incorporate is a wrapped car or van. It is
nearly impossible to measure the impact this creative would have on sales, but it would
create a lot of exposer to members of the community. Many small business owners will
wrap both personal and work trucks. Although CJ’s does not currently have a company car,
if they start to implement catering services, this will be a great addition to the business.
Even if there is not a specific company car the business could wrap the owner or manager’s
personal vehicle. Total wraps with installation can vary between $1,000 and $2,500 for a
normal size van or car and can last 5 years. The car or van will also be able to be parked in
their lot by the street to be used as a sign. It is unknown if Ankeny has sign ordinances, but
most cities do have restrictions on signage outside of businesses. This would be one of the
only viable alternatives to a large sign outside without violating city statutes. A wrapped
car or van would be beneficial to CJ’s Bagels because it would increase exposer both on
the road and at the business.
Personal Sales Objective:
Generate excitement in the community of people in the area 30-55 with children in
the next 9 months measured by the number of sales and loyalty cards signed up for.
In order to gain excitement about going to a bagel restaurant, other than just
stopping by the local grocery store, CJ’s Bagels can create a contest that allows the
consumer to create his or her own bagel to have as an option in the restaurant. Each week
the customer special can change creating excitement for the individual who created and
named the special and for the others to come in and see what new creation it is for that
week. CJ’s Bagels will also be able to create excitement with a new social media platform
on Instagram, allowing pictures to speak instead of words.
IMC Elements:
One of the first promotional elements CJ’s Bagels should integrate into their
business is sales promotion. By offering extra incentive, CJ’s Bagels can get more
customers through the door to try their products. One sales promotion they can do is
samples. By offering a sample, CJ’s Bagels is helping lower the risk of trying a new
product. The employee giving out samples will be able to recommend what cream cheese
spread is the best along with which type of coffee would best go with the bagel. This will
treat it more like a fine wine rather than just another bagel place. A couple times a week
they should do a sample of one of their bagels so that people can try something new and
engage their customers. Another sales promotion CJ’s Bagels should do is give out
coupons. Coupons for a free bagel bite or a free small coffee will bring customers through
the door and will get people excited to come in because it gives them an incentive. Then,
the customer is inclined to come in again if they have a good experience. Another sales
promotion CJ’s Bagels should consider is a loyalty card. This provides an incentive for
regular customers to continue coming in, especially if they receive rewards after so many
purchases or get a free bagel on their birthday. In small businesses, loyalty programs are a
great way to show their personal side while remaining competitive. It also prompts
customers to take action quickly if they have a reward that is only good for a certain
amount of time and it may urge customers to make larger purchases if they want more
points towards earning a free reward. All of these sales promotions would bring customers
into CJ’s Bagels and get people excited about making purchases and coming back.
CJ’s Bagels should also increase their advertising since they have little to none right
now. Radio advertisement would be a good media start with because it is very cost
efficient. A great thing about local radio is that 69.3% of working Americans listen to it on
their morning commute (Company). For this type of company a continuous schedule would
be best for their radio ads. If they time the advertisement correctly, for example during the
morning rush, they could draw in customers that are on their way to work in the morning or
remind people that they are open all day for breakfast, lunch, and dinner. Aside from that,
they are already using the local newspaper, which is effective because they are a local
business and many people read the local newspaper.
Public relations should also be integrated into CJ’s Bagel’s business. They
participate in the Ankeny Cooking Show, which is televised on KCCI, and they show
people how to make homemade bagels. This is a very good way to get involved in the
community and show people that they are there and they are a fun business. Another way
they could earn PR would be to get more involved in community work. Catering to soccer
tournaments in Ankeny, or Football games, or volunteering as a business for community
service. These options would all benefit CJ’s Bagels and highlight their brand in a positive
way in the Ankeny area.
The last promotional element CJ’s Bagels should integrate into their business is
interactive in the Internet. They already have a good website with their menu, hours and
location, and you can order online as well as purchase gift cards online. Figure 1 shows the
importance of having a great interactive platform for reviews The website is easy to use,
but it would be recommended that CJ’s Bagels create all their social media to look similar.
This would mean updating the website, Facebook and Twitter accounts CJ’s Bagels needs
to take a step into the future and make sure that their website is optimized for mobile use
(Anderson). It would benefit CJ’s Bagels to expand their social media presence to include
Instagram as well. Instagram is becoming on of the top media channels used by Millennials
on a daily basis (Fromm). Pictures are a great way to let the customer share their
experience, pictures are worth a thousands words. In a recent study it is shown that the
younger generations would rather share pictures instead of blogging or updating status
(Fromm). By increasing their Internet presence, CJ’s Bagels could expand their customer
base and build ways to do sales promotions through online medias, help increase their sales
and help gain earned media.
Techniques:
There are a few different techniques CJ’s Bagels can implement in order to measure
the effectiveness of their promotion. One technique is to measure sales linked to promotion.
These are very measurable and can give CJ’s Bagels a good idea of how much their sales
are increasing based on the promotions they are doing. Loyalty card usage is a second way
to measure sales. It is easy to track how much people are coming in and using their loyalty
card and redeeming rewards (Williams). The final technique that can be used is coupon
redemption rate. This is also another very easy one to measure that can tell CJ’s Bagels
how many people used their coupons and if they were a good way to get customers in the
door. Figure 3, in the Appendix, shows the increase of the U.S. population using mobile
coupons. All of these techniques should be implemented in order to measure the
effectiveness of CJ’s Bagels promotion.
STP
CJ’s Bagels has many customers come through its doors every day. However, their
main demographic is affluent parents ages twenty-five and up who have between two and
four children. These customers also tend to come to CJ’s either before or after events such
as soccer practice meaning that to them CJ’s products are either healthy fuel to have a
successful event or a very delicious reward for a job well done. Since their target market is
always on the go, CJ’s keeps them coming back by offering quality products with diligent
attentive service to help them get on their way with a smile on their face.
Marketing mix
CJ’s Bagels is mainly a bagel shop but they sell a variety of different food items for
customers to choose from. Their most popular items are their bagels. They have fifteen
different kinds of bagels to choose from including ones such as Cinnamon Raisin, Onion,
Berry Berry, Chocolate Chip, and many others. They also sell a variety of spreads to go
with their bagels. Another poplar item they have are bagel bits topped with cream cheese
icing. For the lunch and dinner hour, they sell sandwiches made on their famous bagels,
with soup to go along with those sandwiches. On the healthier side, they sell eight different
salads to choose from. Many people that go to CJ’s Bagels also go for the drinks they offer.
They have coffee, smoothies, espresso, and even frozen drinks. For a sweeter treat they sell
cookies, cinnamon rolls, and brownies. CJ’s Bagels has quite a large menu with a variety of
choices for any hour of the day.
CJ’s Bagels pricing is more expensive than that of their competitor because their
bagels are homemade each day. The better quality and freshness leads to a higher price.
Since, they have such a large menu, there are many different prices for bagels, sandwiches,
soups, and other bakery items. Some of these prices are as follows; a single bagel is $0.90,
a half dozen bagels is $4.45, a dozen bagels is $7.69, and the office pack, which includes
one dozen bagels and 3 of their 4oz cream cheeses, is $11.99. For most of their sandwiches,
a full is $4.19 and a half is $3.00, with the exception of a few sandwiches that are a little bit
more. For most of the other items, the prices vary based on what a customer gets but their
product quality is exceedingly better than that of competitors, they are a very popular
substitute for other places such as Bruegger’s and Panera.
CJ’s Bagels has only one location and it is in Ankeny, which is one of the larger
suburbs of Des Moines. Ankeny is an affluent white community with many families and
kids. CJ’s Bagels brings in many of these families with kids at all hours of the day. They
have a small town feel with many regulars that come in. Everyone knows everyone when
they go into CJ’s, and that is one of the reasons people love it and are attracted to the
business. CJ’s Bagels has maintained its niche and is able to give their customers what they
are looking for whenever they come in.
CJ’s Bagels currently does not have great promotion. Currently, they are advertising
in the local newspaper and with local sports teams. They also partner with Ankeny High
School in order to increase business and draw more high school aged students in. They are
involved with the community on Facebook and they have a website. Advertising is very
minimal right now because most people come to CJ’s Bagels after hearing about it through
word of mouth and because they have a good product that consumers are seeking out.
Overall, it is clear that CJ’s Bagels has a great base to start progressing in the
promotion, but by following the recommendations of creating a more mobile friendly
website, linking social media, and becoming a larger apart of the community will help
increase awareness and sales. An important factor in working on these promotions is to
make sure that customer service is staying a priority. In the stats listed earlier, consumers
can easily be lost with the lack of quality customer service, meaning the money dedicated
to promotional activities would be wasted. The most important principle for CJ’s Bagels is
to remember is that though promotion is expensive, risky, and time consuming, it will pay
off when it is done correctly.
Appendix
Figure 1:
** 85% of consumers say that they read online reviews for local businesses
Figure 2:
Figure 3:
Figure 4:
Figure 5:
Designed by Nick Frandsen, Freelance Website Optimist
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"Databases, Tables & Calculators by Subject." Bureau of Labor Statistics Data. N.p., Apr.
2015. Web. 30 Apr. 2015.
"Employment, Hours, and Earnings from the Current Employment Statistics Survey
(National)." Total Private Average Hourly Earnings of All Employees. U.S. Bureau of
Labor Statistics, Apr. 2015. Web. 30 Apr. 2015.
"The Case for Eating Breakfast." HealthyChildren.org. Healthy Children Magazine, Summer/Back
to School 2009, 2 Dec. 2012. Web. 30 Apr. 2015.
<http://www.healthychildren.org/English/healthy-living/nutrition/Pages/The-Case-for-Eating-
Breakfast.aspx>.
"Food." Starbucks Coffee Company. StarBucks Coffee Company, n.d. Web. 29 Apr. 2015.
<http://www.starbucks.com/menu/food>.
Fromm, Jeff, and Leah Swartz. "2014 Millennial Trends | Millennial Marketing."
Millennial Marketing. Future Cast, 2015. Web. 30 Apr. 2015.
<http://www.millennialmarketing.com/2014/01/2014-millennial-trends/>.
Morris, Tricia. "13 Startling Customer Service Statistics - Parature." Parature. 2014
Parature State of Multichannel Customer Service Survey, 24 Oct. 2014. Web. 29 Apr.
2015. <http://www.parature.com/startling-custserv-statistics/>.
"New Yorker Bagels." New Yorker Bagels. New Yorker Bagesl, n.d. Web. 29 Apr. 2015.
<http://newyorkerbagels.com/ten-bagel-statistics-you-never-thought-could-be-real/>.
Udland, Myles. "This Chart about Spending in Restaurants Is Unbelievable ... Because It
Has a Major Problem." Business Insider. Business Insider, Inc, 15 Apr. 2015. Web. 30 Apr.
2015.
Williams, Jed, and John Swanciger. "Why Small Businesses Should Be Utilizing
Customer-Loyalty Programs." Entrepreneur. N.p., 25 Apr. 2014. Web. 29 Apr. 2015.
<http://www.entrepreneur.com/article/233362>.
Whitler, Kimberly. "Why Word Of Mouth Marketing Is The Most Important Social
Media." Forbes. Forbes Magazine, 17 Aug. 2014. Web. 29 Apr. 2015.
<http://www.forbes.com/sites/kimberlywhitler/2014/07/17/why-word-of-mouth-marketing-
is-the-most-important-social-media/>.
"31 Million U.S. Consumers Skip Breakfast Each Day, Reports NPD." 31 Million U.S.
Consumers Skip Breakfast Each Day, Reports NPD. N.p., n.d. Web. 29 Apr. 2015.
<https://www.npd.com/wps/portal/npd/us/news/press-releases/pr_111011b/>.

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CJ's Bagels Final Draft

  • 1. CJ’S Bagels Project 2 May 5, 2015 Jasmine Barr, Ryan Dalton, Adam Perkins, Rebekah Schmidt, Elizabeth Smithson, &
  • 2. Tricia Trimble “We don't just want your input, we thrive on it. Listening to you -our guest- is how we improve. Here is your chance to tell the CJ's team what's on your mind- good or bad. We want to hear what you have to say. And rest assured your comments will be taken to heart. Some of our greatest improvements have come as a direct result of listening to our guests. So go ahead and talk to us. We're listening! And thank you for taking the time to write.” (CJ’s Bakery Contact Us) Situational Analysis: External Economy: Recently, CJ’s Bagels has been the busiest it has ever been. Because Ankeny is a fairly wealthy geographic location, CJ’s Bagels was not as negatively impacted as many restaurants during and following the recession in 2008. Since March of 2014, the unemployment rate has dropped from 6.6% to 5.5%. This, along with the fact that hourly income has increased over 50 cents in the past year, shows that more people are earning more money (U.S. Bureau of Labor Statistics). Both of these factors, along with the stock market’s recent increase have given consumers more disposable income to spend on stores and restaurants like CJ’s Bagels. March 2015 stands as a historic month for restaurants. For the first time in U.S. history, consumers have spent more on restaurants than groceries. This past March of 2015, there was $52,349,000,000 spent on restaurants while only $49,688,000,000 spent on groceries (Udland, 2015). This comes out to $164 and $155 per American, quite a large
  • 3. spending difference for the roles being switched for only 1 month. Between increased disposable income and people changing their spending habits, the line at CJ’s has flooded out the door during rush hour. Competition: The main direct competitor to CJ’s Bagels is Brueggers Bagels. Brueggers specializes in many different types of bagels and cream cheese spreads (About us). However, the main differentiator between CJ’s Bagels and Brueggers, according to Robb Riggle, is that CJ’s Bagels makes their bagels fresh every day. CJ’s Bagels makes sure to promote that everything is made fresh daily because it is a huge part of their niche of being a small, local company. Another direct competitor is Panera Bread. Panera specializes in many different types of bread allowing for a wide variety of bagel options. Panera, like Brueggers, is a chain restaurant that tends to be expensive for the quality and quantity of food. However, both are very well known for good bagels. Robb stated that people in Ankeny generally choose CJ’s Bagels over Brueggers Bagels and Panera Bread because it is local and has such a different atmosphere that only Ankeny and surrounding residents can experience. Thus, a lot of people choose CJ’s Bagels because is a place where everyone knows everyone and a great place to hang out. Starbucks, another direct competitor, is best known for their coffee, but also carry a wide assortment of breakfast foods. They are also considered to be a smaller competitor of CJ’s Bagels because most customers are likely to swing through the drive thru and possibly buy a pre-made food item. Starbucks does not solely focus on the freshness of their products, but rather on the low calorie items they carry, such as their cage-free egg whites,
  • 4. reduced-Fat Turkey Bacon sandwich on an organic English muffin, or their vegetarian options (Food). Hy-Vee or other retail outlets are indirect competitors for breakfast restaurants. People may choose to shop at retail stores such as Hy-Vee for their morning breakfast food as opposed to eating out at CJ’s Bagels. A second indirect competitor is when people do not eat breakfast in the morning, and therefore, do not spend any money. This is a large threat for CJ’s Bagels, and growing. ((Figure 2 shows the growth rate in Americans skipping breakfast)(reports)). Those who are choosing to eat breakfast are helping increase the sale of bagels; in a survey 61% of adults are eating bagels in the morning. While another 50% adults say that fresh bagels are the best, which is increasing the sales and declining the sale of other bread items. These stats are unfortunate for Panera as they thrive on selling bread slices as a side option (New Yorker bagels). Thus, CJ’s Bagels marketing tactics need to change consumers’ attitudes that breakfast is important and a great way to start off the day. It is essential to eat breakfast daily, and eating at CJ’s Bagels makes for a great morning. Technology: Technology is becoming increasingly important for any small business in todays market. Besides the actual appliances used to make their products, CJ’s Bagels uses technology to play a role in their ordering process and customer interaction outside of the store. The bakery is not quite on the level of technological integration as they should be, but they are doing many things right. CJ’s Bagels implements technology the best throughout their menu ordering
  • 5. options. Customers can place small and large orders in person, on the phone, and online. Being able to order in person and over the phone has been the standard in this industry for many years, while the option of online ordering for small businesses continues to become more prevalent. To create an online ordering and payment tab on a website is very expensive and hard to do for a small business, so CJ’s Bagels uses a link to the host website GimmeGrub.com to make the ordering process easier for the company and customer. Host websites, like GimmeGrub.com, create a custom website for small businesses that integrate simple billing procedures and even some in store marketing materials. They charge a start up fee and take a small percentage of sales made on the website. When an order is placed online, GimmeGrub.com will make sure an order gets to the restaurants within 3 minutes of being placed. A customer using CJ’s Bagels online ordering option probably will not know they are using an outside website because it is so well integrated. For small businesses, outside websites for online purchases give an affordable alternative to creating their own payment system. The website for CJ’s Bagels has almost everything they need. It is a simple site with links for online ordering, the menu, hours & location, gift cards, and a contact link. An error that needs to be corrected is the listed hours that have changed. Instead of 6:00am to 8:00pm the website says they are only open until 2:00pm. If consumers are looking online for the hours, then they are less likely to take the time to go the store location to see if the online hours are correct. New management bought out the bakery and thus expanded their hours. They need to update the website on this immediately. (Figure 5 shows the new website design) The only link to social media on CJsBagels.com is for Twitter. CJ’s Bagels has a decent amount of activity on Twitter with just over 300 followers. Cj’s Bagels’
  • 6. Facebook has 2,800 likes and 1,160 users who have posted about being at the bakery so the website definitely needs a link to the Facebook page. Customer interaction on Facebook is excellent compared to Twitter. CJ’s Bagels needs to take the time to create all the social media platforms to have a consistent image and message. Currently, each medium has a different logo and a different alteration of the brand name. Legal/ Political: Small businesses always have at least a few legal hurdles standing in their way. Restaurants have a few more legal obstacles because health certifications. Because it is not a standalone restaurant and the strip mall it is located in is not owned by the company, CJ’s Bagels avoids some of the certifications that go along with owning a building. The primary concern for CJ’s Bagels is the Heal Code Serve Safe Certification. Robb Riggle says obtaining this is not a problem because their facility and the business’s practices are up to code and clean. Riggle also stresses the expenses needed to stay certified. Although the $150 annual certification is not too taxing on the bakery’s profits, this expense can have a more significant effect on a struggling restaurant. A few other legal things CJ’s Bagels should be aware of is the city’s signage rules and wheelchair accessibility, neither of which was expressed as an issue. CJ’s Bagels has no apparent political issues or influencers. Sociocultural: Consumers that spend money on bagel shops tend to be in the middle-income class or higher. Bagels are considered to be an elite food item, consumed by higher income households and individuals. Since bagels are expensive, consumers need to have disposable income accessible. Robb Riggle described the consumer base that walks into CJ’s Bagels
  • 7. as white, wealthy families. Robb mentioned that Ankeny is a very well off suburb that is not diverse ethnically or demographically. Therefore, there is a very specific culture within the bagel shop because most of the regular consumers live very similar lives. There are trends in bagel shops on Saturday mornings. Often time’s high school teens will come in before games or practice. Robb described that Saturday mornings are his busiest time of the week. He sees ‘regulars’ often, which helps him maintain customer relationships that are vital to future success. Situation Analysis: Internal Human Resources: When CJ’S Bagels is looking to hire, they want employees who will treat customers with respect. They expect employees to smile and ask how their day is going. It is very important that the customer has an experience visiting CJ’s Bagels, that it is not another stop on a list of errands. At CJ’s Bagels, you are not just anther customer; you are their guest. This sets CJ’s Bagels apart from its competitors: building relationships with customers and truly caring about them beyond bagels and coffee. This helps build the image of a small town feel in a suburb of Des Moines. In a survey done by Parature State of Multichannel Customer Service, 65% of 1,000 consumers surveyed said they’ve cut ties with a brand over a single poor customer service experience (Morris). CJ’s Bagels employees need to stay on task, word hard, and strive to execute efficiently and effectively for the most growth possible for the company. When employees are intrinsically motivated to see the company succeed, it helps CJ’s Bagels image immensely. Growth Goals:
  • 8. Robb wants to expand CJ’s Bagels into the Johnston area. His goals are to open up a new location in surrounding areas allowing customers to choose different locations and not have to travel to Ankeny. He foresees CJ’s Bagels growing in its customer base. He wants to expand not only the frequency of the cliental but also the reach. If CJ’s Bagels were to expand to Johnston and Urbandale, he would be able to reach and serve more people, ultimately growing substantially as a company. Before extending CJ’s Bagels reach, it is important to cut through the clutter of the competitors. By adding more frequency when the local community thinks bagels, they will think of CJ’s Bagels a welcoming experience. As CJ’s Bagels continues to target the younger generation (generation y), they will be able to promote that bagels are the essential food that will kick start the busy day. Eating breakfast helps the body function, focus and be more energetic throughout the day, this goes for adults not just children (Healthy Children). Attitude Toward Marketing: CJ’s Bagels wants to be aggressive in their marketing strategy, but is not yet there. There is a combination of not knowing exactly which direction CJ’s Bagels wants to go and finding the money to take action. CJ’s Bagels is a small, local bagel store, which does not have the funds to hire out a marketing professional or marketing agency to do their marketing creative executions. All of the marketing strategy and implementations are done through Robb Riggle and upper management. CJ’s Bagels has done very well in the past mainly relying on word of mouth. According to Nielsen, 92% of consumers believe recommendations from friends and family over all forms of advertising. Word of mouth marketing and the American Marketing Association (AMA) decided to find out exactly what brands were doing about that fact. In a recent study, 64% of marketing executives
  • 9. indicated that they believe word of mouth is the most effective form of marketing. Only 6% say they have mastered it (Whitler). However, they can be doing even better if their attitude was more proactive on reaching an even bigger market more frequently through various promotions. Engaging CJ’s Bagels customers can be part of the conversation about their brand and help strengthen their image as a company. In figure 1 in the appendix it shows that 85% of consumers will trust the reviews posted online if a local business is good or not. Keeping track of the reviews online is another great way to engage with the consumer about how to make the company stronger. Larger chains such as Bruggers and Panera forget to listen to their customers. By becoming part of the conversation the company will be about to equip their consumers, or give them reason to talk. Offering fantastic service every single time a consumer walks in the door will give the consumer reason speak highly of the company. With great customer service and quick speedy service this can really brighten up any one’s day. In the final step, empower the consumer. Give them different ways to talk and share, maybe they are not a very vocal person but allow them to show their artistic/writing ability on a white board in the restaurant. This will allow a unique way for consumers to spend their time as they wait. Doing something unique to allow the consumer to express him or herself will give CJ’s Bagels another way to stick out. Consumers remember random facts about a place or want to visit something that distinctive. (Anderson) Promotional Objectives: The three main promotional objectives recommended for CJ’s Bagels are: 1.
  • 10. Advertising to increase awareness in the Ankeny community ages 25-45 by 10% in the next 6 months as measured by aided recall test. 2. Using personal sales to generate excitement in the community of people in the area 30-55 with children in the next 9 months measured by the number of sales and loyalty cards signed up for. 3. Incorporating direct marketing to establish CJ’s Bagels as the go-to restaurant for bagels and coffee in 8% of customers aged 18-35 married or single with or without children within a year as measured by direct inquiry. At this stage, these objectives are merely for the current time. When the company expands to more locations, other marketing objectives will be implemented into the marketing strategy. Promotional Budget Establishing a budget is crucial to executing CJ’s Bagels strategies and achieving the objectives in the stated time frame. This is one area, which results in many companies’ objectives not being completed. For CJ’s Bagels, they need to significantly increase their budget for promotion in order to accomplish many of the things they want to achieve and expand beyond what they currently have. Word-of-mouth has essentially carried CJ’s Bagels up to this point, so they will greatly increase their customer base if they dedicate more of their time and money to promoting their already popular product. CJ’s Bagels needs to place additional advertisements in the Des Moines Register newspaper more frequently. Acquiring 123 column inches in the Sunday Des Moines
  • 11. Register over the span of a twelve-month period will cost $329.80, but the objective is to be accomplished within six months, allowing the advertisement to be larger and attract more readers’ attention. Having these larger advertisements will be crucial to attracting attention to the newly implemented slogan, “Who says a bagel shop has to be plain”, and it will lead to more awareness about the product with the aided recall tests. Though placing television advertisements on local news channels seems to be extremely expensive, it is vital to view promotion as an investment. CJ’s Bagels will greatly benefit from this type of promotion; therefore, it is necessary. The television advertisements will have the largest up-front costs, as a 30 second spot on the five o’clock news for KCCI 8 would cost approximately $400, but this does result in a 4.3 ratings point for people ages 25 to 54. If this is done about once per month and early in the week, this will give consumers a visual image to see and use for remembering what CJ’S Bagels is all about. This also provides CJ’s Bagels the opportunity of allowing customers to see as well as here their new slogan they are rolling out. The advertisements within transit will provide a large amount of consistent exposure to the Des Moines area through Dart. Dart allows signs to be put on the street-facing side for just $183 over a three-month period, plus an $83 production fee. Therefore, this will provided a great deal of exposure for a very reasonable price. It is also important for CJ’s Bagels to generate excitement in the community itself as they promote themselves as a local establishment, so providing loyalty cards for customers who consistently come back will greatly help retain people who come in for the first time. Many people tend to expect some sort of loyalty program, so not having one could deter some people away from the business. Using cards with a customer loyalty
  • 12. program will also help to increase the sales for CJ’s Bagels because they will earn points from each purchase, enticing them to keep coming back until they are able to get a bagel or other item free of charge. The upfront costs for a customer loyalty program are costly, but they are necessary in order to attract and retain customers. Generally, cards are priced from $0.50 to $1.00, and the software required to use the cards will cost around $300 to $400 per location. CJ’s Bagels is in just one location, so they will not have to duplicate the software cost at multiple locations. Trying to establish CJ’s Bagels as the go-to business for people looking to get a quick bagel and coffee, giving out free coffee mugs will be a great tool in serving the reminder role for them after they leave the business. While these mugs will cost a little more money than normal, getting them into the hands of the customers will indicate an increase in the number of patrons entering CJ’s, so it will pay off in the long run. Customized coffee mugs can be made for just $0.65 a piece, so this a very small expense for the long-run use they will provide in reminding people to continue coming back. Along with all of these, the wrap put onto the van will cost between $1000-$2000. The cheaper wrap of $1,000 will be chosen as this can accomplish the same effect without spending the extra $1,000. In all, the budget for the next year for CJ’s will be just over $2,500, assuming approximately 100 mugs are given out as well as approximately 150 loyalty cards being given out. IMC Elements creative elements:
  • 13. Direct marketing objective: Establish CJ’s Bagels as the go-to restaurant for bagels and coffee in 8% of customers aged 18-35 married or single with or without children within a year as measured by direct inquiry. To establish CJ’s Bagels in the Ankeny community we will have to use various advertisements and engage regularly with customers through social media. Spreading the message of freshly homemade bagels that are low cost and served by a friendly and attentive staff. By doing so we are getting our brand into the minds of our current and potential customers, allowing them to remember CJ’s Bagels whenever they feel hungry and want to get something different and delicious. Advertising Objective: Increase awareness in the Ankeny community ages 25-45 by 10% in the next 6 months as measured by aided recall test. In order to increase awareness in the Ankeny community-placing ads in more locations such as the local news channel, in the weekly newspapers, and on transits, such as inside a bus that travels to the community college. By placing ads in these locations it will increase the recognition of the company not in the local community but also in visitors/college students. In order for CJ’s Bagels to gain more awareness, they can create a slogan that catches people’s attention such as “Who says a bagel shop has to be plain.” With this slogan, CJ’s Bagels could also create different specialty advertising pieces such as clothing, bags, or coffee mugs. By starting a catering section in CJ’s Bagels business options, they will be able to grow awareness with advertising transit in their own vehicle.
  • 14. (Figure 4: Van design) A creative element CJ’s Bagels could incorporate is a wrapped car or van. It is nearly impossible to measure the impact this creative would have on sales, but it would create a lot of exposer to members of the community. Many small business owners will wrap both personal and work trucks. Although CJ’s does not currently have a company car, if they start to implement catering services, this will be a great addition to the business. Even if there is not a specific company car the business could wrap the owner or manager’s personal vehicle. Total wraps with installation can vary between $1,000 and $2,500 for a normal size van or car and can last 5 years. The car or van will also be able to be parked in their lot by the street to be used as a sign. It is unknown if Ankeny has sign ordinances, but most cities do have restrictions on signage outside of businesses. This would be one of the only viable alternatives to a large sign outside without violating city statutes. A wrapped car or van would be beneficial to CJ’s Bagels because it would increase exposer both on the road and at the business. Personal Sales Objective: Generate excitement in the community of people in the area 30-55 with children in the next 9 months measured by the number of sales and loyalty cards signed up for. In order to gain excitement about going to a bagel restaurant, other than just stopping by the local grocery store, CJ’s Bagels can create a contest that allows the consumer to create his or her own bagel to have as an option in the restaurant. Each week the customer special can change creating excitement for the individual who created and named the special and for the others to come in and see what new creation it is for that week. CJ’s Bagels will also be able to create excitement with a new social media platform
  • 15. on Instagram, allowing pictures to speak instead of words. IMC Elements: One of the first promotional elements CJ’s Bagels should integrate into their business is sales promotion. By offering extra incentive, CJ’s Bagels can get more customers through the door to try their products. One sales promotion they can do is samples. By offering a sample, CJ’s Bagels is helping lower the risk of trying a new product. The employee giving out samples will be able to recommend what cream cheese spread is the best along with which type of coffee would best go with the bagel. This will treat it more like a fine wine rather than just another bagel place. A couple times a week they should do a sample of one of their bagels so that people can try something new and engage their customers. Another sales promotion CJ’s Bagels should do is give out coupons. Coupons for a free bagel bite or a free small coffee will bring customers through the door and will get people excited to come in because it gives them an incentive. Then, the customer is inclined to come in again if they have a good experience. Another sales promotion CJ’s Bagels should consider is a loyalty card. This provides an incentive for regular customers to continue coming in, especially if they receive rewards after so many purchases or get a free bagel on their birthday. In small businesses, loyalty programs are a great way to show their personal side while remaining competitive. It also prompts customers to take action quickly if they have a reward that is only good for a certain amount of time and it may urge customers to make larger purchases if they want more points towards earning a free reward. All of these sales promotions would bring customers into CJ’s Bagels and get people excited about making purchases and coming back. CJ’s Bagels should also increase their advertising since they have little to none right
  • 16. now. Radio advertisement would be a good media start with because it is very cost efficient. A great thing about local radio is that 69.3% of working Americans listen to it on their morning commute (Company). For this type of company a continuous schedule would be best for their radio ads. If they time the advertisement correctly, for example during the morning rush, they could draw in customers that are on their way to work in the morning or remind people that they are open all day for breakfast, lunch, and dinner. Aside from that, they are already using the local newspaper, which is effective because they are a local business and many people read the local newspaper. Public relations should also be integrated into CJ’s Bagel’s business. They participate in the Ankeny Cooking Show, which is televised on KCCI, and they show people how to make homemade bagels. This is a very good way to get involved in the community and show people that they are there and they are a fun business. Another way they could earn PR would be to get more involved in community work. Catering to soccer tournaments in Ankeny, or Football games, or volunteering as a business for community service. These options would all benefit CJ’s Bagels and highlight their brand in a positive way in the Ankeny area. The last promotional element CJ’s Bagels should integrate into their business is interactive in the Internet. They already have a good website with their menu, hours and location, and you can order online as well as purchase gift cards online. Figure 1 shows the importance of having a great interactive platform for reviews The website is easy to use, but it would be recommended that CJ’s Bagels create all their social media to look similar. This would mean updating the website, Facebook and Twitter accounts CJ’s Bagels needs to take a step into the future and make sure that their website is optimized for mobile use
  • 17. (Anderson). It would benefit CJ’s Bagels to expand their social media presence to include Instagram as well. Instagram is becoming on of the top media channels used by Millennials on a daily basis (Fromm). Pictures are a great way to let the customer share their experience, pictures are worth a thousands words. In a recent study it is shown that the younger generations would rather share pictures instead of blogging or updating status (Fromm). By increasing their Internet presence, CJ’s Bagels could expand their customer base and build ways to do sales promotions through online medias, help increase their sales and help gain earned media. Techniques: There are a few different techniques CJ’s Bagels can implement in order to measure the effectiveness of their promotion. One technique is to measure sales linked to promotion. These are very measurable and can give CJ’s Bagels a good idea of how much their sales are increasing based on the promotions they are doing. Loyalty card usage is a second way to measure sales. It is easy to track how much people are coming in and using their loyalty card and redeeming rewards (Williams). The final technique that can be used is coupon redemption rate. This is also another very easy one to measure that can tell CJ’s Bagels how many people used their coupons and if they were a good way to get customers in the door. Figure 3, in the Appendix, shows the increase of the U.S. population using mobile coupons. All of these techniques should be implemented in order to measure the effectiveness of CJ’s Bagels promotion. STP CJ’s Bagels has many customers come through its doors every day. However, their main demographic is affluent parents ages twenty-five and up who have between two and
  • 18. four children. These customers also tend to come to CJ’s either before or after events such as soccer practice meaning that to them CJ’s products are either healthy fuel to have a successful event or a very delicious reward for a job well done. Since their target market is always on the go, CJ’s keeps them coming back by offering quality products with diligent attentive service to help them get on their way with a smile on their face. Marketing mix CJ’s Bagels is mainly a bagel shop but they sell a variety of different food items for customers to choose from. Their most popular items are their bagels. They have fifteen different kinds of bagels to choose from including ones such as Cinnamon Raisin, Onion, Berry Berry, Chocolate Chip, and many others. They also sell a variety of spreads to go with their bagels. Another poplar item they have are bagel bits topped with cream cheese icing. For the lunch and dinner hour, they sell sandwiches made on their famous bagels, with soup to go along with those sandwiches. On the healthier side, they sell eight different salads to choose from. Many people that go to CJ’s Bagels also go for the drinks they offer. They have coffee, smoothies, espresso, and even frozen drinks. For a sweeter treat they sell cookies, cinnamon rolls, and brownies. CJ’s Bagels has quite a large menu with a variety of choices for any hour of the day. CJ’s Bagels pricing is more expensive than that of their competitor because their bagels are homemade each day. The better quality and freshness leads to a higher price. Since, they have such a large menu, there are many different prices for bagels, sandwiches, soups, and other bakery items. Some of these prices are as follows; a single bagel is $0.90, a half dozen bagels is $4.45, a dozen bagels is $7.69, and the office pack, which includes one dozen bagels and 3 of their 4oz cream cheeses, is $11.99. For most of their sandwiches,
  • 19. a full is $4.19 and a half is $3.00, with the exception of a few sandwiches that are a little bit more. For most of the other items, the prices vary based on what a customer gets but their product quality is exceedingly better than that of competitors, they are a very popular substitute for other places such as Bruegger’s and Panera. CJ’s Bagels has only one location and it is in Ankeny, which is one of the larger suburbs of Des Moines. Ankeny is an affluent white community with many families and kids. CJ’s Bagels brings in many of these families with kids at all hours of the day. They have a small town feel with many regulars that come in. Everyone knows everyone when they go into CJ’s, and that is one of the reasons people love it and are attracted to the business. CJ’s Bagels has maintained its niche and is able to give their customers what they are looking for whenever they come in. CJ’s Bagels currently does not have great promotion. Currently, they are advertising in the local newspaper and with local sports teams. They also partner with Ankeny High School in order to increase business and draw more high school aged students in. They are involved with the community on Facebook and they have a website. Advertising is very minimal right now because most people come to CJ’s Bagels after hearing about it through word of mouth and because they have a good product that consumers are seeking out. Overall, it is clear that CJ’s Bagels has a great base to start progressing in the promotion, but by following the recommendations of creating a more mobile friendly website, linking social media, and becoming a larger apart of the community will help increase awareness and sales. An important factor in working on these promotions is to make sure that customer service is staying a priority. In the stats listed earlier, consumers can easily be lost with the lack of quality customer service, meaning the money dedicated
  • 20. to promotional activities would be wasted. The most important principle for CJ’s Bagels is to remember is that though promotion is expensive, risky, and time consuming, it will pay off when it is done correctly. Appendix Figure 1:
  • 21. ** 85% of consumers say that they read online reviews for local businesses Figure 2: Figure 3:
  • 23.
  • 24. Figure 5: Designed by Nick Frandsen, Freelance Website Optimist Bibliography
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