2. Table of
Contents
❖ Executive Summary
❖ Cooper’s Hawk Business Model Analysis
❖ Wine Club Member Evaluation
❖ Marketing Objective
❖ Segmentation
❖ Strategy for Target Group
❖ Summary
❖ Appendix
3. Executive Summary
Increase restaurant revenue via targeted marketing
Assignment: Establish a goal for CHWC and develop a marketing plan to meet that
objective
Solution: Based on CHWC’s business situation, our marketing objective is to increase
restaurant revenue by 8% ($166K) over the next four quarters
Strategy: We designed a marketing program for two key customer segments:
❖ VIP: Leverage these best customers to acquire new customers through WOM
❖ Active Small: Encourage them to explore more areas of the restaurant to
increase spending and frequency
4. CHWK Business Model Evaluation
Subscriptions provide steady income, but the restaurant drives majority of revenue
Restaurant drives ⅔ of
total revenue
5. CHWK Business Model Evaluation
Restaurant revenue declined 7% last year
The restaurant revenue has declined
7% from year 1 to year 2
6. Business Model Evaluation
Restaurant venue and visitation patterns
Visiting Weekday
Saturday and Sunday
are the busiest
Visiting Month
August and December
are the peaks
❖ Server room, bar room, and patio
drive 70% of revenue. The tasting
room drives 22% of revenue;
banquets 7%
❖ The top two areas with decreasing
revenue are tasting room (12%) and
server area (-8%)
Venue Type
7. Business Model Evaluation
Wine Club Subscriptions
Variety (52%) and Red
(33%) are the best sellers
⅔ of the members are in
level 1 and only ⅓ of them
are in level 2
Level 1 avg spend $452 and
level 2 avg spend $860
Subscription Level Wine TypeSpending
8. Wine Club Members on Social Media
Members love sharing
75K people like this
High post interaction rate
2807 Followers
3661 Likes
Avg. Rating of 4
377 Reviews
129 Photos
❖ Highly Positive Social Media Presence
❖ Members think the main theme is sharing and celebration
❖ Members like to sharing their experience and comments about Cooper’s Hawk
9. CHWC Marketing Objective
Reverse restaurant revenue declines
Rationale:
❖ We chose to focus on the restaurant because:
➢ The restaurant is CHWC’s primary source of revenue
➢ The restaurant is the heart and soul of CHWC; engagement at the restaurant is critical to
continued membership
➢ Subscription revenue remains steady as long as customers remain in CHWC; restaurant
revenue has more incremental marketing opportunities
❖ With no marketing intervention, we can expect revenue levels to continue to fall in year three
Marketing Objective: Increase Existing Members’ restaurant revenue by 8% next year ($166K)
10. Member Segmentation
Created segments based on spend, visitation
Note: For more information about the segmentation process, please see Appendix Exhibit A
Segment Members Spend Per Trip Trips Per Year
VIP 742 $82 16
Active Small 1,790 $55 7
Lapsed Big 112 $113 10
Lapsed Small 1,621 $66 3
Total 4,265 $70 7
11. Population % vs. Revenue %
❖ Our first target group, VIPs,
generate the most revenue
❖ Our second target group,
Active Smalls, has the most
customers
Member Segmentation: Identifying Targets
Target Groups cover 77% of total restaurant revenue
Note: For more information about the segmentation process, please see Appendix Exhibit 1
12. Segment 1: VIP Overview
Avg. Annual Spending: nearly $1.3K
Overview:
❖ 17% of the total customers fall in this segment
❖ 46% of the total restaurant revenue
Spending and Visitation Behaviors:
❖ Very frequent customers: visit more than once per month
❖ Very active customers (0.3 recency; they came in less than 1 month ago)
❖ The average VIP has experienced 3-4 of the five venues* within the
restaurant
❖ VIP holds more banquet than other segments
❖ VIP customers like to share on social media
*The five venues are: serving room, bar, tasting room, patio, banquet
“Experienced” indicates at least $0.01 purchase in that area in the past 2 years
13. Segment 1: VIP Customers
Acquire new customers to have a $75K incremental revenue by Year 3
Behavioral Objective:
Encourage VIP customers to actively share and refer Cooper’s Hawk to their
friends and family to acquire 148 new customers next year
Communication Objective:
Cooper’s Hawk is a perfect place to hang out with friends
14. Referral Program
❖ Send referral link through email and social media
❖ Give VIP customers discount code or other incentives by successfully refer a
new friend to Cooper’s Hawk
❖ Holding “Sharing” event for VIPs to ask them bring friends with them to the
restaurant with discounted dishes and wine
Premium VIP service
❖ Offer premium wine tour for VIP customers
Segment 1: VIP Customers
Incentives/offers
15. Segment 2: Active Small Customers
Avg. Annual Spending: $370
Overview:
❖ 42% of the total customers fall in this segment
❖ Total spending is $1.31M, 31% of the restaurant revenue
Spending Behaviors:
❖ Summer season lovers: 29% of them enjoy visiting the restaurants during summer
(Jun-Aug), especially in August (13%).
❖ The average A.S. has experienced 2-3 of the 5 venues within the restaurant
❖ Small order per trip: Active Small customers spend only $55 per trip
❖ Low frequency: They visit the restaurant every other month; they might be busy
people or live far away from the restaurant
16. Segment 2: Active Small Customers
Increase by $91K restaurant revenue by Year 3
Behavioral Objectives:
❖ Increase average check size by $10 for 40% of visits
❖ Drive one incremental annual visit from 50% of customers
Communication Objective:
Cooper’s Hawk is a great choice that worth exploring: five unique food and wine
experiences under one roof
17. ❖ Provide bonus loyalty points to customers when certain things are achieved within
a visit:
■ Offer 1) Patronize two or more venues within one trip
● Example offer: “Earn bonus points when you buy an entree in our
dining room AND purchase two samples in our tasting room”
■ Offer 2) “Hurdle” check amount is met from any combinations of venues
within the restaurant
● Example offer: “Earn bonus points for spending $70 or more”
Segment 2: Active Small Customers
Incentives/Offers via Loyalty Program Interface
Expected Financial Impact
$47,400: 40% of 11,850 trips meet our $65 goal (represents $10 of incremental revenue per trip)
through Offers 1 and 2
18. ❖ Provide bonus loyalty points to customers when they make an incremental visit:
➢ Bonus Points for picking up wine on time*
➢ Off-season discount
Segment 2: Active Small Customers
Incentives/Offers via Loyalty Program Interface
Expected Financial Impact
$49,225: drives 1 incremental annual trip worth $55 from half of customers
*Drives incremental trip because this segment picks up their wine every other month on average
19. Summary
Total Financial Impact: Meets $166K marketing objective
$172K total contribution through target marketing programs
❖ VIP customers Contribution: $75K
➢ By new customer acquisition through WOM of VIP customers
❖ Active Small Customers Contribution: $97K
➢ By increasing active small customers visit frequency: $49K
➢ By increasing spend per visit: $45K
21. Restaurant Revenue (cut off point: 99%: 5206, 80%: 1476)
Restaurant Recency (cut off point: 1 month)
Monetary/Recency Active Lapsed
VIP M>=5206
Big Spenders 1476<M<5206, R<＝1 1476<M<5206, R>1
Small Spenders M<＝1476, R<＝1 M<＝1476, R>1
Exhibit 1: Member Segmentation Process
22. segment # Members Percent of Members
Valid
AB 699 16.4
AS 1790 42
LB 112 2.6
LS 1621 38
VIP 43 1
Total 4265 100
Exhibit 2: Results & Target Segments
23. Exhibit 3: Results & Target Segments
segment Avg. 2 Year Revenue Members Total 2 Year Rev % of Total Sum
AB 2356.9526 699 1647509.87 38.70%
AS 729.1137 1790 1,305,113.44 30.60%
LB 2247.5549 112 251726.15 5.90%
LS 461.332 1621 747,819.13 17.60%
VIP 7130.004 43 306590.17 7.20%
Total 998.5366 4265 4258758.76 100.00%
24. Exhibit 4: Results & Target Segments
2 Year Frequency
segment Mean N Std. Deviation
AB 31.1 699 13.347
AS 13.24 1790 7.351
LB 19.81 112 10.785
LS 6.95 1621 5.271
VIP 61.58 43 42.894
Total 14.43 4265 13.196
25. Exhibit 5: Results & Target Segments
Total Venues
Visited in Past 2
years
segment Mean N Std. Deviation Sum % of Total Sum
AB 3.35 699 0.706 2343 20.60%
AS 2.74 1790 0.778 4905 43.10%
LB 3.2 112 0.721 358 3.10%
LS 2.22 1621 0.858 3598 31.60%
VIP 3.91 43 0.75 168 1.50%
Total 2.67 4265 0.901 11372 100.00%
26. Exhibit 6: Restaurant Analysis
Venue 2 Year Rev.
Server $2,050,149
Tasting Room $959,617
Bar $905,768
Banquet $316,807
Patio $79,657
Total $4,311,998
27. Exhibit 7: Wine Club Chart
Level 1 ($16.99 or $18.99
subscription)
Level 2 ($31.99 or $35.99
subscription)
% of Total Customers 68% 32%
Avg. WC Spending $452 $860
% of WC Revenue 53% 47%
Avg. RE Spending $831 $1,355
% of RE Revenue 57% 43%
Restaurant Recency 3.3 1.6
Restaurant Frequency 11.6 20.6
28. Exhibit 8: Wine Club Chart
RE_amount
segment2 Year Mean Sum
1 133.926 28660.16
2 125.4634 24716.29
Total 129.8697 53376.45
AB
1 76.2366 1000147.53
2 76.0788 953952.51
Total 76.1595 1954100.04
AS
1 52.0514 642002.53
2 51.162 663110.91
Total 51.5957 1305113.44
LB
1 99.4974 131436.04
2 122.495 120290.11
Total 109.3036 251726.15
LS
1 63.0397 433649.94
2 62.9724 314169.19
Total 63.0114 747819.13
Total
1 66.0199 2235896.2
2 65.5627 2076239.01
Total 65.799 4312135.21
